Integrated Report 2021

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

CENTRAL JAPAN RAILWAY COMPANYCENTRAL JAPAN RAILWAY COMPANY
Integrated Report 2021

INDEX
2
3
4

Management Philosophy

Management Philosophy

JR Central’s Operating Revenues Composition
Market Area Characteristics andTransportation Capacity
Business Strategy

5
7
11
13

JR Central’s History
TOP MESSAGE
Positive Cycle of“ESG Management”
JR Central’s“ESG Management”
Highlight

19
27
31
37
39
41
42

1. Ensuring Safe and Reliable Transportation
2. Tokaido Shinkansen －Constant Effort to Enhance Services－
3. The Chuo Shinkansen Project Using theSuperconducting Maglev System
4. Conventional Lines and Affiliated Businesses－Maintenance and Development of Social Infrastructure－
5. Technological Development to Support
JR Central’s Growth
6. Reinforcement of Earning Power－Reconstructing Positive Cycle of“ESG Management”－
7. TCFD Recommendations－Endorsement and Our Initiatives－
Generating“Economic Value”

43

Financial Data

Creating“Social Value”

S
E G

47
61
67

Social77

Corporate Data

Environment
Governance

Editorial policy

JR Central strives to enhance dialogue with many stakeholders,
including shareholders and investors, in order to contributeto sustainable growth and increase corporate value over the
medium to long term. The objective of this report is to deepen
readers’understanding of our company’s financial informationand non-financial information such as business strategies and
ESG information. This report is edited with reference to the“International <IR> Framework”issued by the International
Integrated Reporting Council (IIRC) and the“Guidance forCollaborative Value Creation”issued by the Ministry of
Economy, Trade and Industry. For ESG information, we refer tothe“GRI Standrds”issued by the Global Reporting Initiative.

[Remarks regarding forecasts, etc.]

Future plans, forecast figures, etc., in this report are an outlook
based on the information that is currently available to JR Central
and may contain risks and uncertainty. Examples of potential risks
and uncertainty include economic trends, business environment
developments, consumption trends, the competition situation
for JR Central and subsidiaries, and changes in relevant laws andlegal provisions. This report is compiled based on information
available as of the end of June 2021 in principle.
●In this report, figures of financial information are truncated,while statistical data and all percentages are rounded.
●FY2020 signifies the fiscal year ended March 31, 2021.

1

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

Japan’s Main Transportation Artery

Contribute to
the developmentof Japan’s maintransportationartery and social
infrastructure

JR Central’s mission is to undertake high-speed,large capacity passenger transport between Tokyo,
Nagoya, and Osaka.“Japan’s main transportationartery”refers to this passenger transport. Since theartery runs through this area of Japan, which plays
an important role as the center of the country’seconomy and culture, it is possible that stagnancy
in the main transportation artery will cause Japan’seconomic and societal movement in general to alsostagnate. JR Central will continue to carry out its
mission of managing Japan’s main transportationartery today and in the future through operation of
the Tokaido Shinkansen and the Chuo Shinkansen.

S oc ial Inf rastruc ture
On a broader perspective, JR Central also
undertakes the mission of supporting the social
infrastructure. That is, along with the managementof Japan’s main artery, we take a locally oriented
approach in operating a network of conventionallines in the Tokai Region, centered on the Nagoya
and Shizuoka areas, and manage affiliated businessfocused on the local communities, thereby supporting
the people in these areas. We will remain committed
to operating conventional lines while managing andfurther enhancing affiliated businesses.
CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

2

JR Central’s Operating Revenues Composition
Operating Revenues(Consolidated)
Real Estate

3

%

%

14

%

12

Real Estate5

Merchandise and Other

Merchandise and Other

20

billion yen

Conventional Lines

Conventional Lines

8

%

12

%

Tokyo

%

%

FY20191,844.6

Operating Area

Transportation Revenues(Non-Consolidated)
Other

Other

7

Market Area Characteristics and Transportation Capacity%

Okayama

Hiroshima

FY2020FY2019FY2020823.5

1,365.6

476.1

billion yen

Transportation

77%

billion yen

HakataTokaido Shinkansen

%

%

92

88

Manages JR Central’s railway operations, such as the Tokaido Shinkansen andconventional railway operations in the Tokai area, bus operations, and others.
Major Affiliated Companies
Central Japan Railway Company
JR Tokai Bus Company

Japan’
s population and economic activity
are concentrated in our market area
covering the Tokyo Metropolitan area,
the Nagoya region, and the Osaka region
Percentages of our market area in Japan as a whole
Our market area

23.7

Major Affiliated Companies
JR Tokai Takashimaya Co., Ltd.
JR-CENTRAL PASSENGERS Co., Ltd.
Tokai Kiosk Company
JR Tokai Corporation

Real Estate

Includes real estate leasing business, such as station building
leasing, and real estate sales in lots.
Major Affiliated Companies
Central Japan Railway Company
JR CENTRAL BUILDING CO., LTD.
JR Tokai Real Estate Co., Ltd.
Shin-Yokohama Station Development Co., Ltd.

OtherTokyo Station Development Co., Ltd.
Nagoya Station Area Development Corporation
JR Development and Management
Corporation of Kansai

Others%Includes hotels in our main stations, travel, advertising, rolling stock production,and construction which are not included in other repotable segments.

3

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

CHUO LINEN SUPPLY Co., Ltd.
The Japan Mechanised Works andMaintenance of Way Co., Ltd.
Tokai Rolling Stock & Machinery Co., Ltd.

2,192

Germany

61.0%

JR Central’smarket area

65.5

India

UK
%

Prefectural
GDP

France(Nominal GDP)

Brazil[FY2017]050

100（%）【Source】
JR Central’s market area is calculated taking the following prefectures into accountTokyo, Kanagawa, Chiba, Saitama, Ibaraki, Shizuoka, Yamanashi, Nagano, Aichi, Mie, Gifu,
Shiga, Osaka, Kyoto, Hyogo, Nara
Population: Ministry of Internal Affairs and Communications“Population, Demographics
and Number of Households Derived from Basic Resident Registration”
Total production by prefecture: Cabinet Office“Report on Prefectural Accounts”

Within this market, we provide overwhelming transportation
capacity that is incomparable to other modes

Changes in daily transportation capacity(Comparison between the Tokaido Shinkansen and airline transportation
services operating between the Tokyo Metropolitan area and the Osaka region)（Ten Thousand seats/day）

Tokaido Shinkansen

Italy
Canada
0

200

About

16timesthat of airlines

Railway

Tokyo

Tokyo area Nagoya area*2*2

JR-CENTRAL

100

Nagoya Osaka

86

14%

%

(81 thousand
passengers/day)%Approximately

0

20,000seats’07.3 ’08.3 ’09.3 ’10.3 ’11.3 ’12.3 ’13.3 ’14.3 ‘15.3 ’16.3 ’17.3 ’18.3 ’19.3 ’20.3 ’21.3*1 T okaido Shinkansen: The number of passenger seats provided (including extra train
services) on through-service“Nozomi”and“Hikari”lines operating between Tokyo Stationand Shin-Osaka Station in each respective fiscal year.
*2 Airlines: Calculated by JR Central based on information pertaining to specified Japanese air
carriers (Ministry of Land, Infrastructure, Transport and Tourism) for FY2006 to FY2020.
*3 Numbers for FY2020 have decreased because of the impacts of the COVID-19 pandemic.

Airlines

JR WestOkayama Hiroshima Hakata

Tokyo area Osaka area*2(149 thousand
passengers/day)

71
67

%

(9 thousand passengers/day)※2

800 1,000 1,200

Market Share*1(against Airlines)

Tokyo area - Okayama
10600

JR Central has established an overwhelming
market share within its market area

Airlines

320,000seats

400* Calculated at a rate of 112.19 yen per dollar.
【Source】
United Nations database, Cabinet Office“Report on Prefectural Accounts”

Approximately ※130

Major Affiliated Companies
JR Tokai Hotels Co., Ltd.
JR Tokai Tours
JR TOKAI AGENCY CO., LTD.
NIPPON SHARYO, LTD.
JR TOKAI CONSTRUCTION Co., Ltd.

USA

Japan

［As of January 1,
2021］

20

Comparison with GDP of each country（Trillion yen）

Area

40

JR Central’s market area equals the
economic size of major countries

China［As of January 1,
2021］

Includes a department store in JR Central Towers,
retail sales in trains, stations, and others.

Tokaido Shinkansen

1,174.9 km%

Population

Merchandise and Other

Representing a powerful presence in
the inter-city transportation market,
one that is unrivaled all over the world

552.6 km

Tokaido Shinkansen*1 Consolidated operating revenues composition is based on revenue from external customers.
*2 Operating revenues and transportation revenues for FY2019 and FY2020 have decreased because of the impacts of the COVID-19 pandemic.

Transportation

Nagoya366.0 kmbillion yen

Transportation

64

Shin-Osaka

Tokyo area - Hiroshima(15 thousand passengers/day)Tokyo area - Fukuoka

29%
33%

%

11

%

89%

(30 thousand passengers/day)*1 M arket share is calculated by JR Central based on the Interprefectural data of theinter-Regional Passenger Mobility Survey, published by the Ministry of Land, infrastructure,
Transport and Tourism for FY2019.
*2 Tokyo area: Tokyo, Kanagawa, Chiba, Saitama, Ibaraki
Nagoya area: Aichi, Gifu, Mie
Osaka area: Osaka, Kyoto, Hyogo, Nara

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

4

Business Strategy

Generating“Economic Value”

Highlight

Creating“Social Value” Corporate Data

JR Central’s History

Business Strategy

JR Central’s History● Shinagawa station is opened

trains increases to 270 km/h
●Shift to train scheduled centered on“Nozomi”

1,215.3

1,278.3

1,240.6

874.6
394.0

383.7

371.0

403.7

370.4

600

494.6

434.4

395.5

372.5

397.8
823.5

337.4

56.4

26.2

25.1

32.6

37.6

‘96.3

‘98.3

‘00.3

‘02.3

‘04.3

△184.7‘08.3

With the inauguration of the Tokaido
Shinkansen in 1964, the time required to travel
between Tokyo and Osaka was shortened to
3 hours and 10 minutes (4 hours at the timeof inauguration) from 6 hours and 30 minutes.
Furthermore, with the introduction of the“Nozomi”in 1992, that time was shortened to 2
hours and 30 minutes.
In October 2003, the investment in rolling stockand ground facilities that we had continuously
engaged in for approximately 15 years
culminated with the upgrading of the maximum
speed of all trains to 270 km/h and the drastic
timetable revision that resulted in a maximum ofseven Nozomi services operating each hour.
With the introduction of the “10 Nozomi

‘12.3

‘14.3

Operating income (Loss) (billion yen)

‘16.3

‘18.3

‘20.3

-200

‘21.3

Net income (Loss) attributable to owners of the parent (billion yen)

Establishment of a Solid Management Base
Timetable (operating up to 10 Nozomi
services in both directions)”in 2014, andthe increase in maximum speed to 285
km/h in 2015, the shortest travel time
between Tokyo and Osaka has now been
reduced to 2 hours and 21 minutes. Withthe timetable revision of March 2020, we
realized the“12 Nozomi Timetable”thatruns up to 12 services (1 every 5 minutes
on average) per hour during busy hours. In
July, we began commercial operation of the
new Shinkansen rolling stock N700S, which
incorporates the results of our accumulated
technological development, and we aremaking use of the Tokaido Shinkansen evenmore convenient.

FY2019FY1987
Railway operation accidents

60(incidents per year)

FY202017

19

Substantially reduced

Passenger volume

27.9

45.8

17.4

Number of services

231

378

342

Maximum speed

220

285

285

Operating revenues(billion yen)

874.6

*1

1,844.6

823.5

71.5

*1

656.1

△ 184.7

Net income attributable toowners of the parent(billion yen)

16.5

*1

397.8

△ 201.5

Long-term debt (trillion yen)

5.5

*2

1.8 *3-3.6 trillion yen

1.9(10,000 people per day)(trains per day)(km/h)

Operatingresults

JR Central was born on April 1, 1987, following the privatization and breakup
of Japan National Railways (JNR).
JNR, the predecessor of JR Central, took over Japan’s railway business,
which was then a national enterprise, as a public enterprise in 1949. JNR
supported the development of Japan as a means of transportation for theJapanese people, but due to poor management of the public corporation, it
incurred debts of over 30 trillion yen, including the creation of new lines with
unclear management responsibilities and disregard for profitability. At the sametime, it fell into a serious state of being unable to respond quickly to global
trends.
Under these circumstances, the“JNR reform”was an effort to review therole of the railway business operated by JNR for the future. In 1987, as part ofadministrative reforms, the operations of JNR were passed on to 11 succeeding
corporations with the aim of carrying out sound corporate management byprivatizing and breaking up thetransportation operations of JNR,
rebuilding the railway businessas a means of transportation
for the people, and further
developing it for the future.
Since the privatization andbreakup of JNR, JR Central has
steadily progressed as a privatecompany, inheriting the public
and social missions of JNR.

‘10.3

TokaidoShinkansen

Consistently Improve Transport Services on the Tokaido Shinkansen

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

‘06.3

Operating revenues (billion yen)

Established by the Privatization and breakup of JNR

Photographs from the time of privatization

0△201.5* 1 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.
* 2 Numbers for 20.3 and 21.3 have decreased because of the impacts of the COVID-19 pandemic.

“Hida #1”departure ceremony (April 1, 1987, at Nagoya Station)

91.7

JR Central made NIPPON SHARYO, LTD.
a consolidated subsidiary

JR Central takes over theTokaido Shinkansen facilities

‘94.3

132.7

2008

1991

‘92.3

200

159.7

72.2

42.0

400

293.4

122.4

JR Central Towers are opened

16.5

5

656.1

255.6

2000

114.3

‘90.3

662.0

The“EX-IC”service starts for the Tokaido Shinkansen

Central Japan Railway Company(JR Central) is established

‘88.3

800

The“smartEX”service starts for the Tokaido
Shinkansen and the Sanyo Shinkansen

2008

1987

1987

2017

578.6

344.4

325.6

66.9

1,508.3“Express Reservation”service expands to the total
length of Tokaido and Sanyo Shinkansen lines

288.4

71.5

1,652.5

1,486.6

1,844.6

1,738.4

Put N700A into commercial service

1,221.6

2001

800

2013

1,384.0“Express Reservation”is launched
for Tokaido Shinkansen

Put N700S into
commercial service

1,822.02006

1,052.3

1,000“10 Nozomi Timetable”

1,559.4
1,467.6“12 Nozomi Timetable”

2014●Maximum speed of all Tokaido Shinkansen

1,366.9

2020

Increase of the maximum speed to 285 km/h

2003

Since its establishment, the JR Central Group has worked to improve its transportation
services and increase revenues placing top priority on safety, while at the same time working
to ensure operational efficiency and significantly strengthen its management base. We willcontinue to maintain sound management and stable dividends for the future and strive todevelop our business.

1,188.3

2020

2015

Operating income(billion yen)

1.6 x
1.6 x

（+65km/h）
2.1 x
9.2 x

24.1 x*3*1 Non-consolidated figures *2 Figures for FY1991 *3 Excluding long-term debt for the Chuo Shinkansen

Series 0

Series 100

Series 300

Series 700

Series N700

N700A

N700S

Transition of
Shinkansenrolling stock
CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

6

Business Strategy

Highlight

Generating“Economic Value”

Creating“Social Value” Corporate Data

TOP MESSAGE

Creating a positive cycle of “ESG Management” guided by a clear management philosophy

Business Strategy

Top Message“ESG Management”is becoming more and more importantthese days. This is a management style where a company
grows by simultaneously generating“economic value”such as
profits and cash flows, and by creating“social value”such as
the realization of a sustainable and prosperous society. That’swhat I perceive. In light of the aforementioned understanding,we have been practicing“ESG Management”based on its
management philosophy of“Contribute to the development ofJapan’
s main transportation artery and social infrastructure”
while simultaneously generating “economic value” andcreating “social value” with solid governance where JR
Central establishes a corporate culture that places the highest
priority on safety, ensures the soundness of management, andpursues long-term development to increase the trust of all
stakeholders.
Specifically, on the Tokaido Shinkansen, the maintransportation artery of Japan as well as conventionallines in the Tokai region, punctual and comfortable railway
transportation services have been thoroughly refined withsafety as the top priority. At the same time, we have beentirelessly developing highly synergistic affiliated businesses
with railway business, working to reduce costs and improve
efficiency, and steadily increasing revenues and profits tosecure cash flows, generating“economic value.”Also, we have been tirelessly promoting the use of railway
transportation, which has originally great environmental
performance, while also incorporating the latest technology
to improve our environmental superiority. The results ofthese business activities are linked to the achievement of the“sustainable development”that the SDGs aim to achievethrough the construction of safe and resilient infrastructure,
the promotion of innovation, and the mitigation of climatechange effects. Furthermore, we have been working tirelessly
to create“social value”by focusing on the human resources
development to support the operation of the railway business,and by making daily efforts to achieve the SDGs from theperspective of promoting gender equality and rewarding
employment, etc.
The abovementioned cash flows, i.e.,“economic value,”
are the source of our funds for creating“social value”suchas developing safe, resilient, and environmentally superior
infrastructure, improving our services, and promoting humanresource development and innovation to support these efforts
while providing better services. As a result, we have been
attracting more people to use our services, which leads to a
positive cycle. This positive cycle has made it possible to realize
the Chuo Shinkansen Project that is currently under way.

The Tokaido Shinkansen service grew 38% in terms oftransportation revenues from FY2002, before the opening of
Shinagawa Station, to FY2018, before the COVID-19 pandemic.
This was especially due to the opening of Shinagawa Station andthe shift to a Nozomi-centered schedule, a further improvementin the transportation service of the Tokaido Shinkansen, andthe subsequent extra Nozomi trains and the maximum speed to
285 km/h. This is much higher than the 14% real GDP growthrate for the same period, and as a result, our consolidated
operating cash flows have grown by 57% during the period.
At the same time, we consider it important to pursue safe,
punctual and comfortable services in our business activities
centered on the mainstay Tokaido Shinkansen. In so doing,
we are contributing to the realization of a more comfortablesociety and the development of local communities.
President and Representative Director“Contribute to the development of Japan’s main transportation artery and social
infrastructure.” COVID-19 has brought about a challenging business environment, but our
mission remains unwavering. We are committed to strengthening our management base by
efficiently providing safe and good services to as many customers as possible, and therefore wemust practice “ESG Management” to develop JR Central while powerfully contributing to thesociety.

7

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

Reinforcement of earning power
In the midst of the COVID-19 disaster that has been continuingsince last year, the JR Central Group has experienced substantial
financial damage. Against this background, we are fulfillingthe mission as a transportation service operator for those
who need JR Central’s transportation while preventing the
spread of infection. We are also striving for efficient operations.
However, profits are declining due to a decrease in the numberof passengers, and the ability to generate economic value is
temporarily impaired. As such, we must make great efforts toovercome this hardship.
The situation, in which contact between people has beensignificantly restricted due to the spread of COVID-19, will
be expected to run its course as everyone is vaccinated andtreatment drugs are developed. However, the changes thathave emerged during the COVID-19 pandemic, including greateruse of telework, web conferencing, etc. and a major shift oftravel reservations to online channels, will remain even after
the outbreak runs its course, provided they are reasonable.
Undoubtedly, COVID-19 has accelerated these kinds of changes.
JR Central will face these changes squarely in order to recoverfrom the damage incurred amid the pandemic through its own

effort, will ​continue to powerfully fulfill its social mission into
the future, and must work to reinforce our earning power byincreasing passenger use through its creativity and ingenuity toreconstruct the positive cycle of“ESG Management”.
So now, once again, JR Central is facing its own challenges. With
regard to the way work will be done in the future, we are working
on“Reform of Business Operations”to strengthen our ability towork more efficiently across the boundaries of lines of operationand departments by mobilizing all available technologies, including
ICT. In the midst of those challenges, we anticipate that the entire
Group will face future labor shortages and other problems, butmust overcome them without delaying solutions.
We are working to expand revenues from fresh perspectives
and using flexible ideas by identifying and analyzing customer
trends and needs more carefully than before. The proposal for“aworkcation plan (Tokaido Shinkansen + Hotels along the line)”as
announced in April 2020 is one example. We are also undertaking
an initiative to enhance the working environment in stations
and trains on the Tokaido Shinkansen, like the“S Work Car”tosupport the“working in any location”style popularized amid
the pandemic. In addition, we are preparing to launch“EX-MaaS
CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

8

Business Strategy

Highlight

Generating“Economic Value”

Creating“Social Value” Corporate Data

TOP MESSAGE

Business Strategy

Top Message(tentative name)”by the summer of 2023, which willallow users to seamlessly reserve and make payments
for their entire trip, including for Shinkansen trains,
hotels, transportation for the journey, sightseeingplans, through the EX Service members-only website.
Furthermore, each Group company should takeadvantage of synergies with railways to increase
their revenues, and it is important to strengthen the
managerial ability to maintain steady revenue growtheven if the use of railways declines. For this reason,each company will work on its respective challenges
in cooperation with JR Central, aiming for thedevelopment of the Group as a whole.

(return to norm, but somechanges remaining)

Of the CO 2 emitted by JR Central, about 95% is indirectly
emitted during the generation of the electricity we purchase, andthe remaining 5% is directly emitted by our diesel railcars, etc. As
for the future, we will first consider the electrification of internal
combustion trains for approximately 5% of direct emissions frombusiness activities. As for the remaining indirect emissions, in addition
to carbon-neutrality efforts across the entire Power generation
sector, we will actively strive to reduce CO2 emissions by adopting

new technologies, such as improving the energy efficiency of rollingstock and facilities, and considering the use of renewable energy.
Furthermore, in order to realize a recycling-oriented society, we aremaking effective use of limited resources, including the promotion ofmaterial recycling of recycled aluminum for Shinkansen rolling stock.
We will continue to contribute to the realization of an environmentally
sustainable society by establishing a system and promoting these
initiatives.

Reinforce our earning power
to restart the positive cycle

Initiatives to reduce CO2 emissions

Organization for environmental measures

With Covid

No social restrictions
on contact with people

Positive cycle

COVID-19
shock

Spread of newlife & work styles

・Web conferencing, etc.
・Digitization
・Spread of e-commerceEﬃciently provide Increased proﬁts
safe and good(and company
services
growth)Lifting of social restrictions
on contact with people

Contribution to society

Chuo Shinkansen Project as a growth strategy that contributes
to the further development of Japan’s economy and society
We must continue to give top priority to safe and reliabletransportation, and fulfill our mission of maintaining and developing
Japan’
s main transportation artery. In order to achieve this, the Chuo
Shinkansen Project that we are currently working on needs to bestrongly promoted. The Chuo Shinkansen Project (assuming that we,
as a private company, will pay for it ourselves) will be implemented
through the use of the Superconducting Maglev System that we havebeen developing as a drastic measure to address the need for largescale renovation of the Tokaido Shinkansen, which has been operating
for more than half a century, and major disasters. Therefore, wewill manage the Tokaido Shinkansen and the Chuo Shinkansen in
an integrated manner. For example, by shifting users of the Tokaido
Shinkansen“Nozomi”to the Chuo Shinkansen, the number of“Hikari”
and“Kodama”services can be increased on the Tokaido Shinkansen.
We hope to construct the most desirable transportation system as awhole by combining the two high-speed railways. By constructing thebypass, we will be able to ensure stable management, reduce its risk,
and continue to forcefully fulfill our mission.

in recent years has been remarkable. ICT has the aspect of accelerating
and strengthening the connections between people and creating new
demand for travel. In addition, new ways of working, such as telework,
have become popular recently, and many people are moving to areas
with abundant nature, for example. The premise for this is the existenceof railways and other transportation services that provide immediate
access to the city center when needed. ICT and transportation services
are complementary, and we believe that the overwhelming time-saving
effect of the Chuo Shinkansen will bring a variety of choices to people’slifestyles a​ nd contribute to the realization of a more prosperous andsustainable society.
We will continue to make every effort to carry out the Chuo
Shinkansen Project, sufficiently examining costs, maintaining soundmanagement and stable dividends, while focusing on construction
safety, environmental protection, and cooperation with local
communities, with the aim of opening the line as soon as possible.

I therefore believe that the opening of the Chuo Shinkansen will havea big impact on the Japanese economy as well as on people’s lifestyles.
The government has also proposed the“Super Mega Region”concept,
and hopes are high that the opening of the Chuo Shinkansen will havean extremely significant effect, just as the Tokaido Shinkansen did in thepast, realizing the integration of the three urban cities of Tokyo, Nagoya
and Osaka. Due to the overwhelming time-saving effect of the Chuo
Shinkansen, it will bring significant benefits and potential for development
to the Japanese economy and society, for example, by encouraging
people to meet each other, which leads to creation of innovation andexpansion of business opportunities.
Furthermore, as society is rapidly changing through the developmentof ICT and other factors, the opening of the Chuo Shinkansen will
broaden various possibilities in people’s lives. The development of ICT

Environmental superiority goes beyond the current situation
As I mentioned earlier, we have been working tirelessly to preserve
the global environment based on the recognition that it is an important
issue for our sustainable growth. Railways have always had theadvantage of being more energy efficient and less harmful to the global
environment than other modes of transportation. Directly, JR Central
has been striving to reduce the load on the environment by further
improving the energy efficiency of its railway operations through such

9

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

Fuel: 70,000 tons (Approx. 5%)

Purchased electricity:
1,150,000 tons
(Approx. 95%)

Electrification of trains, etc.
Power generation sector
decarbonization

President

Corporate Planning Division

Cooperation

General Technology Division

Energy-saving
Renewable energy utilization, etc.

FY2020CO2 emissions:
1,220,000 tons

Conventional Lines
Operations Division

Shinkansen
Operations Division

Chuo Shinkansen
Promotion Division

Business
Promotion Division

Keep fulfilling our mission to “Contribute to the development of Japan’s
main transportation artery and social infrastructure”
Severe financial conditions continue due to the impact of
COVID-19. However, the JR Central Group’s mission remains
unwavering even into the future: to refine the safe, punctual,
fast, frequent and comfortable characteristics of the Tokaido
Shinkansen, which forms the main transportation artery ofJapan, and to strengthen the conventional lines in the Tokai
region that form the network with the Tokaido Shinkansen, as
well as affiliated businesses. At the same time, the constructionof the Chuo Shinkansen will be promoted to further strengthen
the realization of this mission henceforth. JR Central mustovercome the current difficulties by its own superiority.

Therefore, we will always return to our management
philosophy of“Contribute to the development of Japan’smain transportation artery and social infrastructure.”And inorder to achieve this at a higher level, we are determined totirelessly strengthen the three abilities of each division: the“ability to work safely,”the“ability to provide better service,”and the“ability to work efficiently.”We are committed toachieving sustainable growth by firmly maintaining soundmanagement and stable dividends, and by increasing the trustof all our stakeholders, including our shareholders, customers,
employees, and business partners.

Respond to the trust and mandateof all stakeholders and pursue
the mission of “Contribute to thedevelopment of Japan’s maintransportation artery and social
i n f r a s t r u c t u r e ” t o r e c r e a t e thepositive cycle of “ESG Management”
once again.

measures as lowering power consumption in rolling stock. Furthermore,in line with the“Carbon-neutrality by 2050”policy formulated by theJapanese government, we are committed to further reducing CO 2
emissions, and endorsed the Task Force on Climate-related Financial
Disclosures (TCFD) recommendations in May 2021. Rather thanmaintaining the existing circumstances, we aim to realize a sustainable
society.

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

10

事業戦略 Strategy
Business

Positive Cycle of“ESG Management”

Business Strategy

Highlight

Generating“Economic Value”

Creating“Social Value” Corporate Data

Positive Cycle of“ESG Management”

Creating Social Value

Generating Economic Value

Sustainable growth

Cash ﬂow
generation

Priority Themes (social background)
Building a safe andresilient infrastructure(heavy earthquakes, intensiﬁcation of natural
disasters, new infectious diseases, cyber security)

Providing accessible
transportation infrastructure(barrier-free, inbound demand)

Local community
revitalization(communities along the line & economic expansion)(climate change, resource shortage)

Safety measures

2

Measures to improve services

3

Greater eﬃciency

4(ability to work safely)(ability to provide better service)Pursuit ofenvironmental superiority(economic growth, technology base establishment)● Human Resources Development● Technological Development

Shareholder return(long-term stable dividends)● Capital Investment
Tokaido Shinkansen

Chuo Shinkansen
Synergy

Network function(employee motivation,diversity of human resources)

Innovation advancement

Future investment(ability to work eﬃciently)

Synergy

Conventional LinesAﬃliated Businesses

Social Infrastructure

Comfortable workplaceestablishment

1Japan’s MainTransportation Artery

Global environment
preservation

Key Business Activities

Foundation building

Management capital (human resources, technology, equipment, etc.)
Appropriate governance

Local
communities

11

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

Globalenvironment

Employees

Stakeholders

Customers

Shareholders

Business
partners

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

12

Business Strategy

Generating“Economic Value”

Highlight

Creating“Social Value” Corporate Data

JR Central’s“ESG Management”②Measures to improve services
Since its establishment, JR Central has been working tirelessly to
improve our railway services. In the mainstay Tokaido Shinkansen,
safety is of course the top priority, and we are working to improvetransportation services, focusing on speed and frequency, while
introducing new types of rolling stock and improving groundfacilities. In 2003, with the opening of Shinagawa Station, all trains
reached a maximum speed of 270 km/h, allowing us to shift toa Nozomi-centered timetable, and in 2020, all trains achieved amaximum speed of 285 km/h with the“12 Nozomi Timetable.”In
addition to increasing the speed and frequency of the services, weare also working to improve the convenience of our“EX Service”“Express(
Reservations”and“smartEX”), an online reservation andticketless boarding service. On conventional lines as well, we havebeen working to improve our services by, for example, launching
new types of rolling stock and increasing the frequency ofservices. We are also working to provide barrier-free and support
for overseas visitors to make it easier for them to use our services.
On the other hand, in the non-railway business, we are striving
to strengthen our competitiveness and sales capabilities byenhancing our store assortments, improving services, renovating
commercial facilities at stations, and continuing to make effective
use of company-owned land, focusing on areas where synergies
with railways can be expected, such as the uniform management

JR Central’s“ESG Management”

been practicing“ESG Management”to generate“economic value”
such as profits and cash flows, while at the same time creating“social value”to realize a sustainable and prosperous society.
We have also achieved sound management, stable dividends, andsustainable growth as a company under solid governance in order
to increase the trust of all our stakeholders.
The JR Central Group, whose core is the railway business, has along-term vision. Competitiveness enhancement is thus essential,with top priority placed on ensuring safe and reliable transportation
through human resource development, capital investment, andtechnological development. To this end, our business activities arefocused on (1) Safety measures, (2) Measures to improve services,(3) Greater efficiency, and (4) Pursuit of environmental superiority.

①Saf e ty me asur es
The primary mission of the railway business is to ensure
safety at all times and in all circumstances. Regardless of pastachievements, once a major accident occurs, trust in JR Central​
will be lost at once, and even its very existence will be threatened.
With this frame of mind, we have been concentrating its greatest
energy into safety assurance from both the hardware andsoftware perspectives ever since its establishment. In terms of
non-physical measures, we have been tirelessly building systems
to protect safety, mainly by establishing rules and regulations.
Furthermore, human resource development is indispensable toput these systems into practice. Therefore, we promote initiatives
to deepen employees’understanding of the nature of duties andrules by proactively thinking about them, in addition to raising theirawareness of discipline so that they can comply with the rules
themselves. Additionally, we are repeatedly performing practicaltraining so as to be able to respond to various conditions expectedin the event of extraordinary situations such as natural disasters orcontingencies.
In terms of equipment, capital investment is also important toensure safety. The majority of JR Central’s capital investment todate has been safety-related, totaling more than 4.0 trillion yen
since its establishment. For example, in the Tokaido Shinkansen,
we have been upgrading the ATC (Automatic Train Control) andCTC (Centralized Traffic Control) systems, implementing earthquake
countermeasures such as derailment prevention guards andthe earthquake prevention system, and carrying out large-scale

13

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

N700S

③Greater efficiency

JR Central's Key Business Activities
JR Central sets the highest priority on ensuring safe and reliabletransportation from a medium- to long-term perspective under its
management philosophy of“Contribute to the development ofJapan’
s main transportation artery and social infrastructure.”JRCentral integrally maintains and develops the Tokaido Shinkansen,
which serves as Japan’s main transportation artery, and theconventional line network in the Tokai region through continuous
efforts, as well as operating the“three generations of railways”
by constructing the Chuo Shinkansen to make Japan’s maintransportation artery a dual system. In addition, our basic policy
is to work together with Group companies to develop affiliatedbusinesses that have synergies with railways.
Through business strategy based on the basic policy, we haveof the JR Central Towers and the JR Gate Tower. Leveraging
fresh perspectives and flexible ideas, we will continue to honethe“ability to provide better service”in the railway and nonrailway businesses, including the Chuo Shinkansen now underconstruction.

renovation to maintain and improve the integrity of Shinkansen
infrastructure. On conventional lines, we have been upgrading CTC,
replacing ATS (Automatic Train Stop) with ATS-PT, making various
structures anti-earthquake, taking measures against heavy rainfall
and falling rocks, and improving safety devices on grade crossings.
In addition, we are working tirelessly on security measures atrailway stations, trains and important facilities, and technology
development is also focusing on safety-related themes to enable
such equipment. Also, the Chuo Shinkansen Project, which we are
currently working on, is a project as a drastic measure against theneed for large-scale renovation and major disasters of the Tokaido
Shinkansen. Looking ahead, we will continue to work on both
physical or non-physical measures to hone our“ability to worksafely,”which is the key to the railways business.

Crew pointing and calling

Large-scale renovation

We will increase revenue by promoting the use of our services
through safety measures and service improvement measures.
Furthermore, we have been working on improving efficiency andlowering costs in all aspects of business execution, including capital
investment, by utilizing the knowledge and technical capability
cultivated and thoroughly pursuing the rationality of businesspractices, without being bound by traditional ways of working. As aresult, we have been able to steadily improve our operating profit
margin by reducing fixed costs even when operating revenues wereincreasing, as in the decade or so before the pandemic.
Today, the pandemic impact has caused considerable businessdamage. However, in addition to temporary cost control for thetime being, we are promoting“Reform of Business Operations”tobuild the most desirable operational system by actively utilizing ICT
in order for the JR Central Group to strongly fulfill its social mission
well into the future. Over the next 10 to 15 years, we aim to reduce
non-consolidated expenses for the Shinkansen and conventionallines by about 80 billion yen, or about 10% of our regular costs.

Furthermore, with regard to the Chuo Shinkansen Project, we willcontinue to hone our“ability to work efficiently,”for example, bycontinuously reducing costs while ensuring safety in all aspects ofconstruction, operation and maintenance.
Changes in operating revenues/expenses before pandemic (non-consolidated)(Billion yen)

1,600

1,464.8

1,400
1,200
1,000

1,143.9

869.8

797.1

800
600
400

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (FY)Operating expenses

Operating revenues④Pursuit of environmental superiority
Global environmental preservation is a monumental challenge
for JR Central to achieve sustainable growth while earning
the trust of society. Originally, railways have the outstanding
characteristic of being highly energy efficient compared to othertransportation modes and having a minimal adverse impact on the
global environment. However, in order to further reduce the loadon the environment, JR Central is working to further improve theenergy efficiency of its railway operations, such as by making its
rolling stock more energy efficient.
In addition to the above, we will continue to make efforts tofurther reduce CO2 emissions in line with the“Carbon-neutrality
by 2050” policy formulated by the Japanese government.
Specifically, we will consider electrification of trains to reduce
direct CO2 emissions from business activities, which account for
approximately 5% of our total emissions. As for the remaining
indirect emissions, which account for about 95% of the total, whileconsidering the carbon-neutrality efforts across the entire Power
Generation sector and technological trends, we will actively strive
to reduce CO2 emissions by adopting new technologies, such as
further improving the energy efficiency of rolling stock and facilities
and considering the use of renewable energy. In addition, we haveendorsed the Task Force on Climate-related Financial Disclosures(TCFD) recommendations established by the Financial Stability
Board (FSB). We will understand the financial impact of climatechange on risks and other factors, and promote information
disclosure based on the TCFD recommendations.

HC85 Series, the next generation of hybrid express trains (testing vehicle)
CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

14

Business Strategy

Highlight

Generating“Economic Value”

Creating“Social Value” Corporate Data

JR Central’s“ESG Management”

Positive Cycle of“ESG Management”
JR Central both generate“economic value”and create“social value” by practicing the above key businessactivities. The creation and generation of these two“values” are not independent, but mutually reinforce
each other, contributing to the positive cycle of“ESGManagement”.
As mentioned earlier, we have been generating“economic value”in the form of profits and cash flows by
striving for efficient business operations, while significantly
increasing revenues by refining our services with safety as
the top priority.
And then using the value, we have been concentrating onstrengthening the foundation for our business operations
by investing generously in human resource development,
technological development, and capital investment from along-term perspective, to enhance our management capitalfor developing our sustainable business. We will use themanagement capital accumulated to re-invest it mainly
in key business activities to implement various measures.
For example, by tirelessly strengthening the three abilities- the “ability to work safely,” the “ability to provide
better service,”and the“ability to work efficiently”- weare further honing our business and generating greater「Creating
社会的価“Social値 」の 創Value”
造“economic value.”At the same time, honing our business by focusing on
key business activities is directly related to the creationof“social value.”With the highest priority on ensuring
safe and reliable transportation, we will build a resilient
infrastructure to support Japan’s main transportation arteryand regional transportation as social infrastructure anddevelop affiliated businesses, which will itself contributeto the sustainable development of the Japanese economy
and local communities [S]. In addition, railways have theadvantage of higher energy efficiency compared to othertransportation modes, and lower impact on the global
environment. In other words, we believe that promoting theuse of railways while pursuing environmental superiority
will greatly contribute to the preservation of the global
environment [E]. In addition, by conducting such corporate
activities under appropriate governance [G], we believethat we can achieve sustainable growth as a company
while increasing trust from all stakeholders by maintaining
sound management, returning profits to shareholders
based on our basic policy of maintaining stable dividends,
and building long-term stable relationships with employees
and business partners.

Generating“Economic Value”
We have used the“economic value”generated throughour business to create even more “economic value”
by strengthening the profitability and improving theoperational efficiency while tirelessly honing our business,
especially the Tokaido Shinkansen. Comparing FY2002,
before the opening of the Shinagawa Shinkansen Station,
to FY2018, before the COVID-19 pandemic, operating cash
flows (consolidated) grew 57%.
Such cash flows will be used to reduce the long-term
debt that has been incurred since its establishment.
By further enhancing investment in human resources,
technology and equipment while reducing the interest
burden, we have also promoted the construction of the
Chuo Shinkansen since FY2014. In the meantime, we have
paid in parallel stable dividends to shareholder return.
We are able to maintain sound management andstable dividends, increase the trust of all stakeholders,and manage our business based on a long-term outlook,including that of the Chuo Shinkansen. There is no doubtthat the basic premise of this is our ability to generate such“economic value.”JR Central is currently experiencing

significant management difficulties due to the COVID-19
infection, but working to reinforce our earning power sothat we can continue to fulfill our social mission into the
future.
Strong growth in operating revenue and operating cash flows (consolidated)(Billion yen)

2,500(Billion yen)

FY2002-2018●Operating revenue: up 38%●Operating cash ﬂows: up 57%

750

2,000

600

1,500

450

1,000

300

500

150

0

0

2002
Operating revenue (left axis)

2018

(FY)

S

SocialEnvironment

GovernanceSocialBuilding a safe and resilient infrastructure
Since its inauguration in 1964, the Tokaido Shinkansen has
supported the growth of the Japanese economy for more than halfa century, with approximately 6.6 billion people using it as the maintransportation artery connecting Tokyo, Nagoya and Osaka, thethree largest metropolitan areas in Japan. This region comprises
about 20% of the land area of Japan, but it is an unparalleled area
globally in terms of its concentrated population and productionof more than 60% of Japan’s GDP. The Tokaido Shinkansen plays
a role in providing transportation services, which are the basic
elements of the economy and society, in the region and, as a result,is an indispensable infrastructure that boasts an overwhelming
presence over other modes of transportation. And we are aiming
to build a safe and resilient infrastructure that can protect Japan’smain transportation artery a​ t all times.
To this end, we have been concentrating our greatest energy
in accident prevention from both the hardware and software
perspectives ever since its establishment, establishing rules andsystems to prevent accidents, nurturing employees and improving
their skills through training, and tirelessly upgrading various safety
equipment. As a result, the Tokaido Shinkansen has had noaccidents resulting in fatalities or injuries of passengers on board
since operations commenced, and the number of railway accidents,
including on conventional lines, has decreased significantly since
its establishment. In response to the current COVID-19 pandemic,
we have maintained sufficient transportation capacity to allow ourcustomers can use the railways with peace of mind. We are also
taking counter-infection measures, including ventilation of train cars,
regular sterilization of parts of stations and trains that customers
are likely to touch, and wearing of face masks by staff servicing
customers.
Of course, Japan is a major earthquake country, and in
the market area of JR Central, there are concerns about theimminence of earthquakes with epicenters directly under the Tokyo
metropolitan area and the Nankai Trough. In recent years, it has
also become an urgent concern to respond to the intensification ofnatural disasters. We have been taking sufficient countermeasuresagainst earthquakes and natural disasters from both the hardware
and software perspectives ever since our establishment. By working

tirelessly to strengthen our facilities as well as to ensure timely andappropriate operations, we have built a resilient infrastructure ​towithstand heavy earthquakes and intensification of natural disasters.
In terms of systems, we are taking measures, including achieving
the redundancy of facilities and securing backups, to ensure thatthe provision of services to customers and the execution of internal
operations will not be disrupted due to earthquakes or other natural
disasters, or system failures. Furthermore, we have taken all possible
measures to protect against cyber attacks, including setting up an
independent system structure that eliminates any contact with theoutside world for systems that are vital for train operations.
Additionally, we are promoting the Chuo Shinkansen Projectusing the Superconducting Maglev System ​to make Japan’s maintransportation artery a dual system, as a drastic measure against theneed for large-scale renovation and major disasters of the Tokaido
Shinkansen. This project will allow us to further reduce management
risk and thus stabilize our management base, then in the future, JR
Central will continue to carry out its mission of managing Japan’smain transportation artery since its establishment.
Distribution map of the estimated greatest seismic intensity of the
Nankai Trough Large Earthquake

Chuo Shinkansen

Shinagawa

Nagoya Station

Seismic intensity
class
Shin-Osaka

Tokaido Shinkansen

7
upper 6lower 6
upper 5lower 5
4

Source: Prepared by JR Central based on“Countermeasure against a Nankai Trough Large
Earthquake (Final Report)”(May 2013)

Operating cash ﬂows (right axis)

Providing accessible transportation infrastructure
Based on relevant laws, such as the so-called Barrier-Free
Act, JR Central has been cooperating with governments andmunicipalities to jointly establish and improve rolling stock andfacilities to enable all passengers to use our services safely andwith a sense of security. We will make continuous efforts toaddress the ever-changing demands of society as appropriate.
We also believe that providing overseas visitors with achance to visit the rich tourist attractions along our railway
lines is an important issue from the perspective of increasing
railway revenues and revitalizing local regions along thelines. Therefore, JR Central is implementing a variety of sales
measures ​to encourage overseas tourists to Japan to enjoy
the areas along our railway lines casually and conveniently. In
addition, we are also working on the expansion of facilities andservices to ensure smooth rides for overseas visitors to our
stations and railways. We will continue to make every effort toensure that our stations and trains are safe and accessible.

15

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

N700S wheelchair spaces (image)
CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

16

Business Strategy

Generating“Economic Value”

Highlight

Creating“Social Value” Corporate Data

JR Central’s“ESG Management”

Local community revitalization
In addition to the Tokaido Shinkansen, which supports Japan’s
economy and society, JR Central also undertakes the mission of
supporting the social infrastructure. It supports people’s daily lives
by operating conventional lines mainly centered on Nagoya and
Shizuoka, and by developing affiliated businesses in these areas in an
integrated manner. The conventional lines operated by JR Central,encompassing 12 railway sections, cover approximately 1,400
km in operating kilometers, which is approximately 2.5 times the
distance of the Tokaido Shinkansen, and play a role as a means oftransportation for daily life, including commuting to work and school.
While increasing the frequency of services and launching new typesof rolling stock, we have been working to maintain its transport
network and provide services that are convenient, complementing
each other in combination with the Tokaido Shinkansen. We arealso working to revitalize the region through sales and marketing incoordination with local communities along the line.
History of development around Nagoya Station

Environment

Governance

Environment

G l obal envir onment pr eser vat ion
JR Central also mitigates the load placed on theenvironment across the entire Transportation section,
brought about by having as many passengers as possible opt
to use railway services, which have a smaller environmental
impact compared to other modes of transport. Railways
account for only 6% of CO2 emissions despite undertaking
30% of Japan’s overall passenger transport volume. We
have been working on the introduction of energy-saving
rolling stock to tirelessly refine these characteristics. The
new N700S Shinkansen rolling stock consumes 28% lessenergy when operating from Tokyo to Shin-Osaka at a
maximum speed of 285 km/h compared to the Series 300 (incommercial service from March 1992 to March 2012), whenrunning at a maximum speed of 270 km/h. In addition,compared to an aircraft (B777-200), the Tokaido Shinkansen(Series N700“Nozomi”) consumes approximately one-eighthof the amount of energy per seat when traveling between
Tokyo and Osaka, and discharges about one-twelfth of
the CO2 emissions. We will tirelessly continue to improve
our transportation services while contributing to global
environmental preservation as a corporate responsibility.
Not only that, but in line with the“Carbon-neutrality by2050”policy formulated by the Japanese government, we

will make efforts to further reduce CO2 emissions and also
improve our environmental superiority.
JR Central also promotes the effective utilization of
resources through the 3Rs initiatives, etc: Reduce, Reuse andRecycle. In addition to minimizing the release of chemical
substances and waste, we are working to mitigate ourenvironmental impact by reducing food loss and material
recycling.
Shifts in the ratio of the Tokaido Shinkansen rolling stockand energy consumption per unit（%）
100

Speed of all trains increased (to 270 km/h)

80

Series 0 / Series 100

60

Series 300 / Series 700

40

Series N700 / N700A

40

N700S

20

20

0

（%）
100

Compared to FY1990
Approx. 32% improvement8060(to 285 km/h)’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20

0

（FY）

After completion of JR Gate Tower

C omfor table w or k pl ace es t abl i s hm ent
JR Central views its employees as its greatest management resource.
Many railway technologies can only be built up to a high level
through accumulated experience, and human resource development
needs to be planned and implemented from a long-term perspective.
Given these three fundamental principles of“Discipline,”“Technicalcapability,”and“Sense of unity,”we develop human resources that
undertake JR Central’s businesses. The focus is on on-the-job training(OJT) and various practical training programs. They also acquire
additional knowledge and skills through group training, which is heldin the General Education Center, etc., and various self-betterment
opportunities, such as internal and external training programs, etc.,that help employees learn knowledge and skills on their own.
In addition, enhancing the skills of employees ​will expand their fieldsof activity and ensure job satisfaction.
Also, regardless of gender, we believe that it is extremely importantfrom the perspective of management to employ diverse humanE

Ratio of Rolling StockAt the time of establishment of JR Central

Stations, where many people gather, including railway passengers,
are important nodes of the local community, and at the same time,they are important management resources for JR Central. By making
the most of these management resources, and developing theoffice, commercial, hotel, and other businesses in good locations
at stations will enliven stations and expand the use of railways. On
the other hand, if railway use increases due to improvements intransportation services, it will also contribute to the growth of ouraffiliated businesses developed at stations. By working together
with our Group companies to realize synergies between railway andaffiliated businesses, we believe that we will be able to revitalize
people’s travel and economic activities in the region. In the past 15
years or so, skyscrapers have been built around Nagoya Station,and the Nagoya region’s traffic line has changed dramatically, as
one example. With the opening of the Chuo Shinkansen, further
development is expected.

Socialresources and maximize their capabilities, driving corporate growth.
We also strive to improve the working environment by enhancing oursystems and facilities so that our employees can work with peace ofmind and fulfillment for a long time and maximize their full potential.
For example, we are working to create an environment in which
employees can exercise theirabilities according to their life
stage by promoting healthmanagement and providing
support for balancing workwith childcare and nursingcare.
We will also continue to
strive to build healthy labor
management relations.

G

SocialEnvironment

Governance

GovernanceAppr opr iat e gover nanc e
As for the railway business, we manage our businessbased on the principle of steadily implementing
the necessary measures to ensure safe and reliabletransportation, which is an issue of utmost importance.
We are also working on the Chuo Shinkansen, a largescale, long-term project that will further reduce ourmanagement risk, stabilize its management, and secure theinterests of all stakeholders, including shareholders.
These initiatives require long-term massive capital
investment and technological development withconsiderable lead times, and we believe it is vital tomanage our business based on a long-term outlook rather
than pursuing short-term profitability.
As such, JR Central will continue to work to establish
a corporate culture that places the highest priority on
safety, and ensures the soundness and transparencyof management while aiming for long-term corporate
development. By doing so, we will engage in businessactivities under solid governance that increases the trust of
all stakeholders.

Rel at ionships w it h st ak ehol der s
I nn ovation adv ancem ent
In order for JR Central to fulfill its mission and develop in
the future, it is essential to build the systems and hardwarethat will serve as the foundation to support daily safe, reliable
and comfortable transportation services through technologicaldevelopment. Thus, with the aim of addressing various technologicalissues in an integrated and comprehensive manner, we have beensystematically proceeding with technological development at
Komaki Research Center established in 2002, by setting issues that
contribute to company measures, such as ensuring safe and reliable

17

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

transportation, from a medium- to long-term perspective. These
approaches have resulted in many advanced achievements, such as
safety measures against earthquakes and natural disasters, improved
services through enhancement of the functions of rolling stockand other equipment, and enhanced environmental performance.
In addition, the Chuo Shinkansen Project, as a drastic measure
to strengthen the main transportation artery, has been promoted
through the accumulation of technological development at the
Komaki Research Center as well as the Yamanashi Maglev Line.

JR Central’s railway business is highly public and has amultifaceted array of stakeholders, including customers,
shareholders, employees, business partners, and local
communities. Therefore, we believe it is important to maintainan overall balance in our relationships with our stakeholders,rather than focusing on just one facet.
We believe that improving the convenience of many users,
contributing to the economic and social development of theregion and Japan, securing stable profits, returning profits toshareholders, and building long-term stable relationships with
employees and business partners will increase the trust of all

stakeholders and lead to our sustainable growth as a company.
Stakeholders
Customers●Safe and comfortable service for everyone●Innovative reduction of travel time by the Chuo Shinkansen

Shareholders ●Sustained increase of cash ﬂows ●Long-term stable dividends
Employees●Long-term stable employment environment ●Active and rewarding workplace

Local
communities●Expansion of the Japanese economy●Revitalization of local communities ●Building a resilient society

Business partners ●Building long-term, stable, fair and equitable business relationships●Preservation of the global environment by expanding
Globalenvironment the use of environmentally friendly railways

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

18

Business Strategy

Ensuring Safe and Reliable Transportation
Ensuring Safe and Reliable Transportation is the foundation of railway business.
JR Central strives to ensure that internal rules, etc. based on relevant laws, etc. are in place, works todevelop structures to help promote safety measures systematically, and promotes a variety of efforts fromboth physical and non-physical perspectives, in the belief that safety is the top-priority mission for the
railway business. We aim to fulfill our responsibility as a transportation service operator by continuing
to fulfill the responsibility of providing safe and reliable transportation to customers into the future.

0

Total safety-related
investment since thecompany’s foundation:

4.0

trillion yen

Titl ePresident

Responsibil ity
Decide on important matters related to operational safety.

General safety
manager●E nsure that all employees are fully aware of the importance of safety and comply with laws and regulations to ensure transportation safety.
● Provide opinions to the president on necessary improvements to ensure transportation safety.
● Confirm the status of systems related to ensuring transportation safety as needed, and express opinions on improvements to head
office managers who are in charge of the main operations related to ensuring transportation safety, as necessary.
● Supervise and manage other matters related to ensuring transportation safety.

Operation manager

In order to ensure transportation safety, request reports and give instructions as necessary concerning the formulation oftransportation plans, decisions on the operation of train crews and rolling stock, train operation control, training of traincrews and maintenance and management of their qualifications.

Crew guidance manager

Train crew members and maintain and manage their qualifications.

Safety Promotion Committee

In order to have a focused deliberation of matters regarding theprevention of railway operation accidents, industrial accidents anddisasters and design and promote effective measures, we have the Railway
Safety Promotion Committee at the Head Office, which meets once
every month, and set up specialized committees whenever necessary to

Presidentline, which has been used by about
6.6 billion passengers, has had
no accidents resulting in deathsof passengers since the start ofits operation in 1964. We willcontinuously work to maintain safeand reliable transportation as the
top priority, aiming to achieve it ateven higher levels.

Specialized committees

General Principles of Safety▶ Safety Report https://company.jr-central.co.jp/

lessons learned from others, and improve the safety of“equipment”
by introducing new technologies, including fail-safe,*1 fool-proof*2
and sign-management methods. We are working to maintain safety
while continuously reviewing and enhancing these two pillars, alongwith the pillar of“people,”as“structures for safety.”

Safety～Maintain safety through“people,”“structure”and“equipment”～

People◆ Ability to carry throughspontaneously and honestly◆ Ability to detect risks andchanges and deal with themwithout fail
◆ Ability to deal with diﬃcult
situations with a sense ofownership and responsibility

Structure

Equipment

Enhancing structures for safety◆ Accurately grasp the actual situation using discerning eyes
◆ Dig deeper into weaknesses based on changes in the environment,
signs, and lessons learned from others◎ Fail-safe, fool-proof, sign management, etc.

Safety-ﬁrst culture“foundation”

Activity to explore the essence of safety:“Why?”,“What will happen?”, and“What should I do?”*1 A method to ensure the operation of equipment remains on the safe side so that it
may not output on the hazard side when it malfunctions.
*2 A method to ensure human operators are unlikely to make mistakes and, even if theydo, safety will be maintained for a system involving human intervention.

of four key disasters”as the five priority execution items. Each
employee is working to constantly keep these five items in
mind, and all employees are working together to eradicate
serious train accidents and industrial accidents (targeting zero)from both physical and non-physical perspectives.

Safety Management System
Operational system to ensure transportation safety
Based on the Railway Business Act, JR Central establishedthe Safety Management Regulations in September 2006, whichsummarizes the rules to be observed for ensuring transportation
safety, with the aim of maintaining and improving safety levels.
These regulations specify the operational system for ensuringtransportation safety and the responsibilities of safety managers.
As the responsibility of key safety managers, the president

19

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

Conventional Lines
Operations Division
Safety Promotion Committee

Shizuoka Branch Office
Safety Promotion
Committee

Shinkansen
Operations Division
Safety Promotion Committee

Kansai Branch Office
Safety Promotion
Committee

Regional Safety Promotion
Committee

Regional Safety Promotion
Committee

Regional Safety Promotion
Committee

Regional Safety Promotion
Committee

Field offices

Field offices

Field offices

Field offices

Safety Audit

Safety audits are conducted at JR Central’s business organization
and affiliate companies to prevent train accidents and eliminate labor
accidents (targeting zero) . These audits are performed from threebasic policies: confirmation of the level of compliance with laws
and regulations, etc., confirmation of measures in place to prevent
train and labor accidents, and prevention of the kind of train andlabor accidents whose details have been investigated. In audits, we

Initiatives for Human Resources to Ensure Safety

In order to support safety, it is important to continue to improveand refine facilities and to ensure the progress of work. However, as
the basic premise, it is essential to develop human resources withhigh technical capabilities, strong will, and correct values to support
safety. In developing human resources, we believe it is important toConstruction Department
Safety Promotion
Committee

Chuo Shinkansen
Construction Department
Safety Promotion
Committee

verify the actual status of daily operations by checking sites where
work is being carried out and the documents related to inspections,construction, etc., and share the results with the relevant departments
and affiliated group companies. Through these audits, we are working
to prevent violations of laws and regulations, the fading out of past
countermeasures in response to past accidents, and lapses of rules
before an incident occurs.
observe our own rules “discipline”(), to maintain and improve quality
and prevent accidents “technical(capability”), and to gain a“senseof unity,”by collaborating and cooperating with related employees
and by fulfilling personal responsibilities. Focusing on these issues,
we are engaged in employee training and education.

Examine, transcending organizational boundaries◎ Ensure/review rules and handling

Priority Execution Items for FY2021
In order to systematically and intensively promote train andlabor accident prevention measures, priority execution items
are determined every fiscal year. For FY2021, we designated“thorough checks,”“adherence to rules,”“elimination of risks,”“enhancement to training,”and“eradication (targeting zero)intensively deliberate on the matters assigned to them. Furthermore, each
Operations Division and Branch Office has a Safety Promotion Committee.
We make sure all staff at field offices are aware of the matters decided by
the Safety Promotion Committee through the Regional Safety Promotion
Committee.

Railway Safety Promotion Committee

Basic Approach to Safety
Under the philosophy of the General Principles of Safety, we
worked out the“Basic Approach to Safety”and are abiding by it.
We maintain safety through“people,”“structure”and“equipment,”
and what forms the basis is the culture of prioritizing safety.
The diagram on right describes a structure whereby a culture inwhich safety is prioritized above anything else is developed andestablished through the“Movement to explore the nature of safety”
based on the three key phases of“Why?”,“What will happen?”,and“What should I do?”, upon which each of the three elements of“people,”“structure”and“equipment”is made to function at highlevels so that these three pillars can support safety.
The first pillar of“people”represents ongoing efforts to enhance
the ability to carry through spontaneously and honestly, the ability
to detect risks and changes and deal with them without fail, andthe ability to deal with difficult situations with a sense of ownershipand responsibility, etc., through effective education and training.
The pillars of“structure”and“equipment”respectively represent
ongoing efforts to ensure adherence to, and review,“structures,”including rules and handling, by accurately grasping situations on
the ground from a correct perspective regarding safety and looking
into weaknesses based on changes in the environment, signs andCreating“Social Value” Corporate Data

Responsibility of key safety managers

General Principles of Safety
JR Central has the General Principles of Safety as the basic spirit
for employees involved in transportation safety. It was establishedfollowing a 1951 accident at Sakuragicho Station on the KeihinTohoku Line while we were operating as part of Japan National
Railways. The principles specifically state that the mindset and moral
awareness and attitude are needed for all employees to do theirutmost to ensure safety and protect human lives before all else,
regardless of their job responsibilities, because the railway businessis an important service with the responsibility to safeguard precious
lives and assets.
As a result of various safety efforts, especially the Tokaido Shinkansen

Generating“Economic Value”

Ensuring Safe andReliable Transportation

Highlight 1

Number of accidents
resulting in fatalities or
injuries of passengers
on board since
Tokaido Shinkansen
began operations:

Highlight 1

is the first to make important decisions regarding operationalsafety. In addition, general safety managers, operation managers,
and crew guidance managers have been designated, and theirrespective responsibilities have been determined. The roles ofhead office managers in ensuring transportation safety havebeen clarified, and safety measures have been systematicallyestablished and promoted under a consistent system.

■ Technical skills training■ Employee training in preparation for contingencies

We implement safety education and training for staff engaging in train
operations and facility maintenance.We conduct education and training
especially for staff engaging in train operations (such as drivers, conductors
and directors) according to the content and time stipulated for each duty.
We introduce simulators, which can perform operations simulation
training, etc. for emergencies, to field offices for drivers and conductors. We
also conduct various training sessions using ground facilities, such as actual
rolling stock and railway lines, so that employees on each system canswiftly and accurately respond to emergencies.

We train all employees togo beyond the call of duty inworking together with staff, etc.,
to respond appropriately inensuring our customers’safety
should employees happen to
be present when unforeseen
circumstances occur while
commuting or on a business trip.

■ Emergency condition response training■ Other training

We conduct various training
every year as an opportunity for
us to enhance quick response tosafety in the case of accidents
and to learn the work of otherspecialized fields. We conducted
practical training in FY2020, suchas passenger evacuation guidetraining, information communication
training, and line facility restoration
Passenger rescue training
training sessions, based on theassumption of natural disasters and contingencies.

The General Education
Center offers education
on specialized knowledge
and skills for each function,and provides sessions forvarious qualifications andtrain conductors and drivers
by using various training
facilities that can simulate
various events that occur inactual situations.

Employee training in preparation for contingencies

Training for Shinkansen conductors

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

20

Business Strategy

Highlight 1Generating“Economic Value”

Creating“Social Value” Corporate Data

Ensuring Safe andReliable Transportation

Highlight 1

Ensuring Safe and Reliable Transportation

Crossing obstacle detection systems

Capital Investment for Safety
JR has actively implemented capital investment related to safety
since its establishment. In the 34 years up to FY2020, we have madesafety-related investments totaling over 4.0 trillion yen, including
safety measures such as updating the Automatic Train Control (ATC)and Centralized Traffic Control (CTC) on the Tokaido Shinkansen,
introducing and updating CTC on conventional lines, and replacing theAutomatic Train Stop (ATS) with ATS-PT, as well as disaster prevention
measures such as seismic reinforcement, improvements in electricalequipment, replacement of new rolling stock, and the introduction ofefficient and effective inspection machines and systems.
In FY2021, we will continue to place top priority on ensuring safeand reliable transportation, which is the starting point of our railway
business. In order to further reinforce structures along with earthquake
countermeasures, JR Central will pursue derailment and deviation
countermeasures for the Tokaido Shinkansen by implementing
derailment prevention guards for the entire line. We will also proceedwith the seismic reinforcement of platform sheds, the implementationof measures to prevent suspended ceilings at stations from falling in
the event of an earthquake and reinforcing the quake resistance of
the Nagoya Workshop, viaduct pillars of conventional lines, etc. As aresult of these efforts, 80% of the total capital investment in Tokaido
Shinkansen, conventional lines, and affiliated businesses, or 234.0
billion yen, is planned for safety-related investment.

Trends in safety-related investment（Billion yen）
240

234.0

220

205.0

200

173.1 173.1

180
160

142.9

140

136.9

180.8

186.2
167.3 170.1

143.5

100
80
60

39.1

20

（

high and that experience highamounts of pedestrian, bicycle,
and other traffic.
We also have emergency buttons(crossing trouble alert systems),
the pressing of which causes
related signals to indicate“stop,”
thereby alerting train drivers of any
abnormality occurring at a crossing.

Prevention of collision with obstacles; derailment and deviation countermeasures

120

40

In order to provide for a vehicle causing trouble at a crossing,
we install crossing obstacle detection systems that can detect
stuck vehicles using infrared or laser beams, and systems that
can issue an alert if the crossing gates do not close. If thecrossing detects an abnormality, the related signals are madeto indicate“stop,”and trains are made to stop before theyreach the crossing. Starting in FY2021, we are introducing
a high-performance laser radar crossing obstacle detection
system, which has better performance of detecting pedestrians,
bicycles, wheelchairs, etc., at crossings where train traffic is0
FY1987 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
At the time of（plan）
establishment）

If any abnormality is detected by crossing obstacle detection
systems, related signals indicate“stop.”In addition, a ”
crossing
ATS system”that complements the brakes manually operated
by the driver will be introduced in phases by FY2025. If a
train passes a crossing ATS device set up on the ground afteran obstacle is detected inside a crossing, the ATS function

High-performance crossing obstacle
detection system (laser radar method)

automatically stops the train in front of the crossing.
By FY2024, we will also install in phases a“crossing deviation
prevention stopper,”which will control the deviation of a train
after it collides with an obstacle on a crossing and derails,
thereby preventing it from colliding with another train going in
the opposite direction, in the Series 313 trains.

Earthquake-Resistance Measures
Tokaido Shinkansen
Implementation of derailment and deviation countermeasures
For the Tokaido Shinkansen, we are promoting derailment anddeviation countermeasures to prevent the expansion of damage
from derailment caused by an earthquake. In addition to installinga“derailment prevention guard”to prevent vehicle derailment
as far as possible, we are taking measures for civil engineering
structures to make them function effectively. We expect tocomplete the implementation of these measures to the entire

Large-scale renovation
Tokaido Shinkansen
Our civil engineering structures are sufficiently maintained
through daily and thorough inspections and repair. However,in future, it will be inevitable to replace many of the facilities
due to aging. We received the approval of the Minister of Land,
Infrastructure, Transport and Tourism for our allowance reserve
plan for the large-scale renovation of Shinkansen infrastructure
for the Tokaido Shinkansen based on the Nationwide Shinkansen
Railway Development Act, and began building the reserve from2002. Along with this, we have advanced our research on a new
construction method, led by our Komaki Research Center. As
a result of our R&D efforts, we developed a new construction
method that allows us to significantly reduce the impact on train
operations during construction work, and to considerably cut
construction costs. With this method in place, JR Central began
the renovation work in FY2013, ahead of the original schedule. In
construction work, we begin with the implementation of measures
to extend the life of structures by inhibiting the occurrence of
cracking and other damage from aging (measures to inhibit aging

damage) and, if necessary,
overall renovations such as
the replacement of girders(overall renovation) are
implemented.
The reserve of 350 billion
yen accumulated by FY2012
is appropriated at a rate of
35 billion yen each year from
FY2013. We will continue
to actively incorporate theresults of our R&D efforts andmake improvements, etc. toour construction methods,
thereby bringing down
related costs in making suresteps forward are taken withour construction work.

Reinforcement of structures
JR Central has been implementing earthquake-resistancemeasures for various civil engineering structures and buildings so
as to prevent Shinkansen services from being suspended for along period of time in the event of an earthquake. Furthermore,
starting in FY2021, we are implementing seismic reinforcement ofplatform sheds.

Large-scale renovation

Type of railway crossings
Type 1A particularly important factor for improving the safety ofConventional Lines is the measures to prevent accidents at railway
crossings. We are working to install crossing gates, crossing obstacle
detection systems, etc., and are taking such drastic measures as
eliminating crossings by, for example, elevating the tracks, for which
we negotiate with local governments. As part of effort to preventcrossing accidents, we are also actively working on activities to raiseawareness, including crossing accident prevention campaigns.

Improvements to crossing equipment
Crossings are classified by the equipment they have into three
types: Type 1, which has crossing gates and alarms, Type 3, which
has only alarms, and Type 4, which has neither gates nor alarms.
Work to upgrade Type 3 and 4 crossings into Type 1 is underway, considering such factors as the amount of road traffic,
the amount of railway traffic, and the situation surrounding thecrossing.

Alarm

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

Alarm
Barrier

FY1987

1,512

FY2020Type 3257 363

1,761

Type 4

2,132
1,869

12 96
500

1,000

Measures taken and progress
Measures taken

Progress (as of the end of FY2020)

Elevated track columns, bridges
and embankments

Completed * Except for some areas under discussion (Elevated track columns:
Approximately 19,600; Bridge columns: Approximately 900 units; Embankments: Approximately 9.4 km)

Bridge railing (Fall prevention)

Under way (Completed 2,157 beams out of 2,215 target beams)

Station buildings / station ceilings /platform sheds
Rolling stock workshops, etc.

Type 4

JR Central adopts an earthquake prevention system* that detects
tremors, automatically stops power transmission, and issues orders
to moving trains to make an emergency stop. We have also madeimprovements to the“Earthquake Brake”on rolling stock in an effort to
reduce the stopping distance at the time of an earthquake. For the newmodel Shinkansen rolling stock N700S, which we launched in July 2020,
we made improvements to the ATC and the brake system to further
reduce the stopping distance by roughly 5% compared to the stopping
distance of the N700A (3rd edition).
*After introducing the“Urgent Earthquake Detection and Alarm System (UrEDAS)”in 1992 ahead of othercompanies, we introduced the“Tokaido Shinkansen Earthquake Rapid Alarm System (TERRA-S)”in 2005, thereby
improving the system in the speed of the alarm, etc. In April 2019, we continued to further accelerate the speedof the alarm by utilizing information from the Seafloor Observation Network for Earthquakes and Tsunamis.

Conventional Lines
Reinforcement of structures

Number and Type of Railroad Crossings

0

21Type 3

Type 11,500

Derailment prevention guards

Station buildings: Completed* except for some areas under discussion
Station ceilings: Under way (completed at seven out of total 17 stations)Platform sheds: Under way (at 16 stations excluding Shinagawa)Completed (Hamamatsu Workshop, buildings at rolling stock depots)

Init iat ives t o st op t r ains quic k l y

Railway Crossing Accident Countermeasures
Conventional Linesline by FY2028.“Deviation
prevention stoppers,”which
prevent a major derailmentof rolling stock in the eventof a derailment, have alreadybeen installed on all of our
Shinkansen rolling stock.

2,000

2,500

In order to also minimize the impact of earthquakes on Conventional
Lines, we are implementing earthquake-resistance measures on various civilengineering structures and buildings. Furthermore, as with Shinkansen, startingin FY2021, we are implementing the seismic reinforcement of platform sheds.
Initiatives to stop trains quickly
Information from the aforementioned earthquake disaster prevention system
will be used for conventional lines to detect initial weak tremors in case of anearthquake, and provide a warning to the driver’s cabin of trains traveling insegments that are likely to be impacted significantly by the earthquake, instructing
the driver who receives the warning to apply the brakes immediately. Furthermore,
we have been strengthening the functions of seismometers alongside railway lines
since FY2016. We will be able to issue warnings to trains more quickly than before.

Tokaido Shinkansen Earthquake Rapid Alarm System (TERRA-S)
Seafloor Observation Network
Information for Earthquakes
Earthquake early warning (NIED)

Distant
seismometer

Suspension of powertransmission→ Emergency stop of train(Japan Meteorological Agency)

Seismometer
alongsiderailway lines
Relay Station
Substation
Vertical earthquakes

Trench-type earthquakes

Detects P-wave (primary tremors) and S-wave (secondary tremors), and once a certain levelof tremors is detected, issues an order for trains to stop

Measures taken and progress
Measures taken

Progress (as of the end of FY2020)

Elevated track columns,
and bridge piers*

Elevated track columns: Under way(Completed 5,078 columns previously targeted by the end of FY2017.
Since FY2019, 3,338 have been newly added and 642 have been
completed for the purpose of further early recovery in the event of adisaster.)
Bridges: Completed (4 target bridges)

Bridge railing*(Fallprevention)

Completed (1,985 target beams)

Station buildings /station ceilings /platform sheds

Station buildings: Under way (Completed 76 stations of the 78 target
stations with 5,000 passengers per day)
Station ceilings: Under way (Completed 16 stations of the 30 target
stations with 10,000 passengers per day)
Platform sheds: Under way (20 stations used by at least 10,000
passengers per day, excluding stations requiring no reinforcement andsheds constructed with rails)

Rolling stock workshops,
etc.

Nagoya Workshop: Rebuilding and reinforcement of buildings under way(Planned to be completed by the end of FY2021)*Earthquake-resistance reinforcements under way in sections including those where there are at least 10 departures
per peak hour and where a long, strong earthquake vibration is expected, as in the case of the Tokai Earthquake

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

22

Business Strategy

Highlight 1Generating“Economic Value”

Creating“Social Value” Corporate Data

Ensuring Safe andReliable Transportation

Highlight 1

Ensuring Safe and Reliable Transportation

Response to Other Natural Disasters

Operation Management and Safety Measures

Tokaido Shinkansen

Tokaido Shinkansen

Conventional Lines

In addition to earthquakes, the prevention of accidents caused by natural disasters such as tsunamis, heavy rain, typhoons andsnowfall is one of the important pillars of our safety measures, and we are implementing various measures.

■ Tsunami countermeasures
JR Central defines the Conventional Line segments that a tsunami is expected to reach as a“tsunami hazard expected area,”based on the tsunami hazard map of each municipality.
When a tsunami is expected, first of all, we make arrangements so as to not allow trains toenter the“tsunami hazard expected area.”For trains already in the area, we move them outof the area or guide passengers to a safe place. In addition, a“tsunami warning sign”has been
installed in the area to indicate the direction of evacuation. We also take measures to evacuate
quickly by displaying the evacuation route to the nearest evacuation center on tablet devices
for conventional line train drivers distributed to train crews. Furthermore, to ensure that thesemeasures can be taken, we make sure that staff are aware of them and conduct evacuation
trainings using actual rolling stock in cooperation with local municipalities.

■ Rain countermeasures
We are taking measures such as protecting the slopes of embankments and cut
sections with concrete and other materials, laying drainage pipes to promote drainage,and installing earth and sand stoppers to prevent the inflow of earth and sand.
Furthermore, rain gauges are installed along railway lines, and when the amount of
rainfall exceeds the regulation value, a warning is automatically issued to the control
center, train station, etc., and operation regulations such as suppressing or slowing
down trains are carried out. Furthermore, in June 2020, we introduced an operation
regulation using rainfall radars, which can finely capture“soil rainfall,”a superior indicatorfor grasping the extent of sediment disaster risk, and localized heavy downpour, in all
sections of Conventional Lines. These regulations are lifted after safety is confirmed.

Evacuationroute display ontablet terminal
for conventionalline train driver[Previous indicator] Continuous rainfall (image) [New indicator] Soil rainfall (image)Continuous rainfallTimerainfall

Seeping water from current rainfall

Simple aggregationfrom the beginningof rain

Soil rainfall

Four days Three days Two days
The
Day betore
earlierday
earlierearlierThe
Four days Three days Two days
Day beforedayearlierearlierearlier

Operation regulation using“soil rainfall”
Anti-flooding doors

Waterproofing
treatment on walls■ Wind protection
Anemometers are installed in areas where wind is concentrated, such as on mountains andbridges, or where gusts are expected to occur. When the wind velocity exceeds a certain
value, an alarm is automatically issued to the control center, train station, etc., and as in thecase of rain, operation regulations such as suppressing or slowing down trains are carried out.
In addition, due to geographical and other conditions, some anemometers have an additional
function of automatically displaying a stop signal when the wind exceeds the standard.

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

⑤When the train’s speed exceeds
the signal the brakes are applied②Own train positional information

Speed of own train

Receive the information

Ground facilities (for positional adjustments)

Preceding train①Preceding train positional information (rail)

established in Osaka jointly by JR West, and is equipped with the samefunctions as the Shinkansen General Control Center in Tokyo so thatit can serve as an alternative control center should Tokyo’s General
Control Center become non-operational due to a disaster. Thus, we havestrengthened our crisis management in preparation for emergencies.

*COMTRAC (COMputer-aided TRAffic Control): A system that controls train routes, manages train operations,and operates and manages the allocation of staff (drivers and conductors) and rolling stock. Basedon input data prescribing the operational conditions for each train (such as station departure andarrival times, platforms, and order of movement) in the computer, the system can monitor the
status of all trains in operation at all times.

Series N700 (Car No. 16)

We have also introduced the“Shinkansen Multiple
Inspection Train (Dr. Yellow)”to test electrical facilities suchas overhead wires and ground facilities such as tracks. Thisrolling stock, which is based on the Series 700, aids safe andreliable transportation by efficiently conducting high precisioninspections at speeds of 270 km/h.

Conventional Lines

Falling rock retaining walls and alarm devices

The operation of our conventional lines is managed by the Tokai
General Control Center (in Nagoya) and the Shizuoka General Control
Center. In these Control Centers, directors work in close collaboration
using various systems, such as CTC (Centralized Traffic Control),*to accurately grasp a significant amount of information, including
the operational status of trains and the utilization status of facilities,
control overall transportation services, and manage their safety tosupport safe and reliable transportation on conventional lines.

Tokyo-boundShin-Osaka

Kyoto

MaibaraKatsuragawa B
479k990Gifu-Hashima

NagoyaSegment where sprinklers
are installed

Shin-Osaka-boundKusatsugawa B

Suimongawa B

454k526

Ground camera
On-vehicle camera (installed on 50 Series N700 trains)

374k690

Fiber-optic cables

General Control Center

Existing in-house cables

Ground camera (installed in four positions)
CameraLamp(Drifts are seen lifted around a bogie.)

ATS-PT continuously checks the speed for conventional lines
according to the distance between the train and the signal,
the curve, and the points. It ensures safety by automatically
applying emergency brakes when there is a risk that thetrain will exceed the safe speed. (We have completed theintroduction of ATS-PT in all of our conventional lines.)

Tokai General Control Center (Nagoya) / Shizuoka General
Control Center / Operation management systems

For Conventional Line routes where there is a risk of falling rocks or avalanches, we haveinstalled falling rock-retaining walls, rock cover works, and avalanche retaining walls asprotective equipment. In addition, if a rock fall or an avalanche is detected by a detector, thetrain is stopped to prevent accidents.

23

The safe and reliable transportation of the Shinkansen is supported by
the Shinkansen General Control Center in Tokyo, where directors workin close collaboration using various systems, such as Computer Aided
Traffic Control (COMTRAC*), to accurately grasp a significant amount of
information, including the operational status of trains and the utilization
status of facilities, control overall transportation services, and manage theirsafety.
Moreover, the Shinkansen Second General Control Center has been

Anemometer■ Measures against rockslides and avalanches

Camera③Creates ATC signals (train speed comparing patterns) frompositional information for the train ahead and one’sown train④Compares the
speed with the signal

Shinkansen General Control Center / Operational control systems

ATS-PT (Automatic Train Stop)
Anti-flooding doors (image)

During winter, Tokaido Shinkansen trains may operate at a sloweddown speed to prevent the equipment below train floors from being
damaged, hit by stones of ballast being lifted up when a mass of snow,
formed under the train floor by drifts caused by the train’s movement,
drops onto the tracks. In order to provide safe and reliable transportation
to customers, we use wedge plows to remove snow from tracks, install
sprinklers to prevent snow drifts from sticking to train bodies, set up
onboard and ground-installed cameras to monitor the situation of snow
sticking to train bodies in real time and ensure trains operate at an
appropriate speed, and have introduced a high-pressure washing machine
to remove masses of snow formed, among other measures.

How ATC works

The Shinkansen Multiple Inspection Train (Dr. Yellow)

For the Tokaido Shinkansen, we are working to relocate or elevate signal equipment rooms
and power equipment, which are important facilities, install anti-flooding doors, etc., and takemeasures to maintain necessary vehicle inspection functions to ensure the stable operation oftrains against flooding anticipated for railway facilities. In addition, we have plans to evacuate
trains for train-parking areas exposed to risk of being flooded, and evacuate trains according tothis plan if the risk of damage arises.

On-vehicle camera

The biggest feature of the Tokaido Shinkansen and other Japanese
high-speed railway systems is the introduction of an operation
control system based on the principle of Crash Avoidance.This
principle has been derived to prevent the possibility of a collisionby using (1) dedicated tracks for high speed passenger rail service,
which completely exclude freight and commuter rail and have nograde crossings, and (2) an Automatic Train Control (ATC) system,
which automatically controls the speed limit of high speed trains andprevents collisions from happening.

Retained water■ Flooding countermeasures■ Snow protection

The principle of Crash Avoidance

Lamp*CTC：The CTC system not only remotely and integrally controls station signaling equipment,
etc. in order to efficiently manage train operations, but also has the function of
conducting real-time monitoring of the operational status of trains.

Dr. Yellow
ATS-PT function
Speed
Brake patterns

Travel curve of train

ATS-PT overview

Consecutively comparing speeds. ・A brake pattern is generated in
the train based on the distance
The emergency brakes areto the signal derived frominformation from the ground.
applied when excessive speed is
detected, regardless of the speed ・The emergency brakes are
SignalGround unit (pattern occurrence)

automatically applied to stop
trains running at speeds in excessof this pattern by the time they
get to the signal.
・Continuous control is performed
using brake patterns.

Tokai General Control Center

Multiple Inspection Train and Track Inspection Train (Dr. Tokai)
We efficiently and thoroughly manage and maintain facilities withregard to the maintenance of railway tracks and electrical facilities on
conventional lines, using the“Multiple Inspection Train (Dr. Tokai).”(Solid snow mass is seen formed on a bogie.)

In the Sekigahara, Maibara and Kyoto regions, appropriate train speeds are judged by grasping the status of snow,
using ground and on-vehicle cameras that monitor the changing conditions of snow attached to train bodies.

On-vehicle and ground cameras

Dr. Tokai

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

24

Business Strategy

Highlight 1Generating“Economic Value”

Creating“Social Value” Corporate Data

Ensuring Safe andReliable Transportation

Highlight 1

Ensuring Safe and Reliable Transportation

Initiatives for Ensuring the Safety of Employees

Safety-related data

Structure of safety and health management system
Ensuring the safety of employees is also an important issue. At
JR Central, we have established internal regulations based on the
Industrial Safety and Health Act and put in place a safety and healthmanagement system. At our business organizations, etc., safety
management officers and health management officers are appointed,
systems are in place to ensure safety at work and to manage
workplace hygiene, and careful safety and health examinations
are conducted as part of our active efforts to prevent industrial
accidents and improve the work environment. In addition,“safety
audits”are performed to confirm the level of compliance with laws
and regulations, etc., confirm systems in place to prevent labor
accidents that have occurred in the past, and confirm the state of
implementation of accident prevention measures.

We are also promoting safety and health education throughout theCompany. In addition to conducting the induction course on safety
and health for all new employees at the General Education Center,
we also provide classroom education on laws and regulations at theGeneral Education Center and at each site in accordance with thenature, role and level of work, as well as safety and health education
through necessary practical training, including the use of equipment
and tools and simulations of industrial accidents.
Furthermore, we are promoting various activities such as the
deployment of the“movement to explore the nature of safety”andawareness raising through the use of essays for the prevention of train
accidents and industrial accidents.

Movement to explore the nature of safety
When we examine the causes of handling errors and labor
accidents that have occurred in the past, we find that manysuch cases are caused by insufficient understanding of rules andbasic actions. Therefore, since FY2013, the Company has beenpromoting the“movement to explore the nature of safety”asa company-wide effort. This movement encourages employees
to think about and understand the essence of rules and basic

Status of railway operation accidents *1,2

(Number)
60

40

50

2

10
0

Collection of essays
for the prevention oftrain accidents andindustrial accidents

Reciting the essays(Presenting safety-promoting activities)

25

actions with the three key phrases of“Why?”,“What will
happen?”, and“What should I do?”in various aspects of their
daily work, on top of education, training and study sessions
held at each of our field offices. This initiative has also been
expanded to our affiliated companies to further deepen theactivity.

7

Number of Incidents*3
occurrencesin FY2020:

8

13

10

FY2011FY20125

6

6

FY1987

0

6

8

13

FY2013

FY2014FY2015

9

1
3
5

3

8
1

FY201610FY2017FY2018

8

8
8
1

11

FY2019FY2020*2 Nearly all of the railway operation accidents were not attributable to JR Central.
*3 Incident refers to a situation in which there is the risk that a railway operation accident may occur

Status of transport disruptions(Number)
450

Railway attendant■ All JR Central Safety Promotion Conference
We have been holding the All JR Central Safety Promotion Conference
yearly since 1991. With a view to enhancing cooperation among companies
in preventing train accidents and industrial accidents, the president and theexecutive in charge of safety at our affiliated companies (approximately 150
firms) that play a major role in our railway business and the executives of
the Company all gather at the conference.
In FY2020, the conference was held on the theme of“Noticing Risks,
Making Others Notice Risks: Building a Culture of Eliminating Risks
in Advance.” The Company’s executives gave addresses, while theConstruction Department, Kansai Branch Office, Hamamatsu Workshop andaffiliated companies gave presentations on their efforts to eliminate risks inadvance.
Lastly, Toru Nakata of the National Institute of Advanced Industrial
Science and Technology gave a special lecture entitled,“Realization andInquisitive Mind Prevent Human Errors,”in which he discussed, among
other things, the importance of realizing the presence of risks, methods forrealization and measures for improvement, and risks lurking in manuals.
Through this conference, we reconfirm the importance of efforts to prevent
train accidents andindustrial accidents,
and the participatingcompanies make useof the conference toimprove their future
accident prevention
efforts.

All JR Central Safety Promotion Conference

137

200

100
50
0

4
57
24
55

14

FY1987

12
50

46

221

218

In order to raise employees'
awareness for the preventionof train accidents and industrial
accidents, we invite all employees
to submit illustrations, photographs
and slogans, and we create
posters using items submitted
and post them at relevant internal
locations. In FY2020, we received Posters promoting the prevention oftrain accidents and industrial accidents
approximately 45,000 entries.

938

Percentage of factors behind transport disruptions attributable to JR Central

9

8
53

192

174
18

17

16

142

12

10

44

3
38

45

172

186

220

15

15

14

（%）
45

12

40
35
30
25
20
15
10

153

157

128

166

80

126

109

86

115

107

FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY202050*Transport disruption refers to cases that are not railway operation accidents, but those involved suspending operation of a train or those where a passenger train was delayed for 30 minutes
or more (one hour or more for non-passenger trains).

Status of industrial accidents (JR Central and its affiliated companies)
Accident resulting in leave from work or more (JR Central employees)(Number)
16

Fatal accident involving an employee

17

Number of industrial accidents
resulting in deaths in FY2020:(JR Central and affiliated companies)

14
12
10
8

7

6

Accident resulting in employee’s leave from work or more

0

7

6

5

10
7

4

4

5

6

5

2
0

FY1987FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020*Excludes heatstroke

Accident resulting in leave from work or more (affiliated company)(Number)
35

During the Golden Week holidays,
the summer months, and the year-end
and New Year holidays, we set up a“safe transportation period”to carry out
comprehensive safety inspections by thepresident and other executives of thehead office. We are also working to further
strengthen the safe transportation systemand further raise employees’awarenessfor safety through measures such as theestablishment of the Safe Transportation
Response Headquarters.

34

169

14

12

Natural disasterNon-railway

12

6
42

250

150

Vehicle/equipment

7
43

400

■ Establishment of a safe transportation period during peak season

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

Railroad property damage accident*1 Railway operation accident Train accident: Train collision, derailment, and fire accident
Railway crossing accident: A collision between a train or a vehicle and a pedestrian or a motor vehicle, etc. at a railway crossing
Railway accident involving personal injury: An accident in which a person was killed or injured by the operation of a train or vehicle Railway property damage accident: An accident in which the operation of a train or vehicle causes damage to property worth 5 million yen or more

■ Soliciting illustrations, photographs and slogans related toaccident prevention

Train accident involving personal injury

1

20

300

It is important to apply the lessons learned from past train accidents andindustrial accidents to our own actions as“something that can happen to
oneself”rather than something that has nothing to do with oneself. Sharing
the experiences of seniors, juniors and colleagues, as well as ideas andfeelings based on those experiences, helps each employee to understandthe essence of safety. Based on this view, in FY2014, we solicited ideas andinitiatives from employees based on their experiences as railway workers,
and compiled what we collected in an essay collection titled“Turning
Lessons Learned into Assets.”Subsequently, we published the second andthird volumes respectively in FY2016 and FY2020, which are used for grouptraining and workplace education.
In addition, we have held three recitals in which the writers of essays
directly present the content published in the essay collection, including
thoughts that were not written in the essay. More than 300 employees,
including company executives, attended the recitals that provided an
opportunity for those with experience to convey a strong desire for safety to
the minds of the employees in the audience, with a sense of presence andsatisfaction.

0

Number of Railway
operation accidents
attributable to JR
Central in FY2020:

350■“Essays for the prevention of train accidents and industrial accidents”

Railway crossing accident

2

50

30

Train accident

Fatal accident involving an employee of aﬃliated company
Accident resulting in aﬃliated company employee’s leave from work or more

36

30

26

25
20

21

20

21

18

25

25

2FY017FY2018

27

26

20

15
10
5

Comprehensive safety inspection

0

4
FY1987FY2011

1

FY2012

1

FY2013

FY20142

FY2015FY2016

1

FY2019FY2020*Excludes heatstroke

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

26

Business Strategy

Generating“Economic Value”

Highlight 2Highlight 2

Tokaido Shinkansen

Number of services and passenger volume of theTokaido Shinkansen (per day)－Constant Effort to Enhance Services－

160
140

129

128

120

111

118

126

124

123

121

127

126

122

120

122

125

123

126

100

100

231

80

239

260

252

87

84

87

88

89

319

273

270

271

274

274

271

269

269

271

272

275

34

34

35

37

41

45

50

51

61

70

101 145 166 170 175

84

90

290

314

82

81

80

2

91

92

93

94

3

79

78

78

78

80

80

80

79

95

96

97

98

99

00

01

02

“Nozomi” (the Series 300) began commercial operation

7

141
130

5

1

0

311

143

276

40

88

130

138

0

143 150 165 176 187 189 158 157 158 158 155 148 139 138 130 122

89

137

271

60

20

341

334

0

Punctual

accidents●N o accidents resulting in fatalities or injuries of● A verage

delay time: 0.5 minutes /operational train

passengers onboard since operations commencedof safety awareness and skills
through human resources education and training● Continuous safety-related investments● I mprovement

Fast

285

Frequent andHigh Capacity

km/h

Approx.

passengers● Number of passengers per day: 174,000 *Results for FY2020*Based on the travel time of the fastest Shinkansen train (as ofMarch 2021)

1/8

services● Number of train services per day: 342 *Results for FY2020 (including extra trains)● Between Tokyo and Shin-Osaka: 2 hours 21 minutes

Approx.

342 174,000● Number of seating available:

1,323 seats/train

1/12

● T
 he energy consumption amount per seat when traveling between

Tokyo and Osaka is approximately 1/8th that of an aircraft● The ＣＯ₂ emission rate for the same is around 1/12th*1,319 seats/train for N700S launched after April
2021*Number of train services per day and number of seating available for FY2020 havedecreased because of the impacts of the COVID-19 pandemic.

Comfortable● S p a c i o u sandquiet space

to allow all trains to run at the same highest speedof 285 km/h. We also finished improvements toequipment and introduced the“12 Nozomi Timetable”
in March 2020.
With the“12 Nozomi Timetable,”the maximum
number of “Nozomi” services per hour increased by
two from 10 to 12 in either direction, and“Nozomi”
is now operated at an average interval of 5 minutes
during busy hours. Also, under the “12 Nozomi
Timetable,”all“Nozomi”services will travel between
Tokyo and Shin-Osaka within 2 hours 30 minutes. Figure 1
Passengers can reduce their travel time by reserving
train seats online at their convenience and using thenew, faster “Nozomi.” This has made the Tokaido
Shinkansen even more convenient.
*Generic name of the Series N700 and N700A, and later reflecting the main functions adopted in the N700A

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

358

365

164

480
420

368

373

378

9

300

10

10

194 201 209 217 220 226 230 193

240

53

180

8
65

65

64

64

66

66

66

66

66

65

65

65

65

65

65

65

65

80

80

80

80

80

81

82

82

82

82

83

83

83

83

83

83

83

83

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17

18

19

20

“Express Reservation”was launched

360

342

12 12

Shin-Osaka Station improvement work completed

120
60

(FY)

0

“smartEX” was launched

Uniﬁed N700A type rolling stock and all trains at max. 285 km/h

Maximum number of the fastest train, “Nozomi” one way per hour
Figure 1

Travel Time of“ Nozomi”between Tokyo and Shin-Osaka
Previous timetable

New timetable

Within 2 hr 30 min

3trains

12trains

2 hr 33 to 37 min

7trains

None

Number of Rolling Stock
Fiscal Year

2020

2021 (plan)

2022 (plan)

2023 (plan)

Total

Number of Rolling Stock

12

13

13

2

40

N700S

Main features of the N700S

Enhanced safety and stability

Enhanced comfort and convenience● Shorter● Equipped with a fully active

braking distance in

Lower running cost
● Reduced power

damping control system

the event of an earthquake Figure 2● Enhanced snow-resistant features“12 Nozomi Timetable”expected to significantly improve our services

27

342

350

159

The N700S, new Shinkansen rolling stock, is designed based on the results of years oftechnological development, and is equipped with features such as enhanced safety andstability, enhanced comfort and convenience, higher emergency response capability,
and a standardized design that can easily be constituted to any length of trainsets.
Based on the results of the test runs of the N700S test train, we determined the mass
production specifications for the N700S rolling stock to replace the Series N700A typetrains in FY2020, developed a launch plan as shown below, and began the service with
the N700S in July 2020.

● Additional outlets for mobile

Higher emergency response capability● Battery-based self-propelled

consumption Figure 3

system Figure 4● Reduced inspection/repair

devices● Enhanced status monitoring function

When the Company was established in 1987, wewere operating the Tokaido Shinkansen at a maximum
speed of 220 km/h. Since then, we have continued towork on enhancing our transportation services on the
Tokaido Shinkansen. We put the Series 300“Nozomi”intooperation in 1992 with a maximum speed of 270 km/h,
and then opened Shinagawa Station and replaced all trains
with the Series 300 trains in 2003, allowing us to shift to a
Nozomi-centered timetable. This timetable also underwent
successive improvements to fulfill the needs of customers.
Then, in 2015, the speed of the Tokaido Shinkansen
was increased for the first time in 23 years, reaching a
top speed of 285 km/h.
The Series 700 was retired in the spring of 2020,
and we completed the update to the N700A type*

336

333

152

157

(Trains/day)161

Launch of new N700S Shinkansen rolling stock*R esults for FY2020 (Including delays caused bynatural disasters, etc.)● Maximum speed: 285km/h

Environmentally
Feasibleminutes

336

134

148

169

Hikari93*1 Departures shown include extra trains.
*2 Usage status is shown by means of an index with the sectional transportation
volume for FY1987 as 100.
*3 Station stops
Nozomi: Shinagawa, Shin-Yokohama, Nagoya, and Kyoto;
Hikari: Same as“Nozomi”, plus a few additional stations;
Kodama: All stations*4 The sum of figures for“ Nozomi”,“ Hikari”and“ Kodama”may not agree with thetotal due to rounding.
*5 Daily departures for FY2020 and passenger volumes for FY2019 and FY2020
have decreased because of the impacts of the COVID-19 pandemic.

0.5

133

142

187 193 188 185 188

Shinagawa Shinkansen Station opened and all trains at max. 270 km/h

Characteristics of the Tokaido Shinkansen

Nozomi
KodamaMaximum number of the fastest train, “Nozomi” one way per hour
Tokaido Shinkansen Passenger volume (FY1987=100)

1(Index)Since its establishment, JR Central has constantly refined not only the safe and punctual but
also fast, frequent, high capacity, environmentally feasible, and comfortable characteristics of
the Tokaido Shinkansen, which plays the role of Japan’s main artery transportation, in orderto maintain and strengthen its competitiveness. Specifically, we have constantly worked toenhance services through the introduction of the“12 Nozomi Timetable,”the launch of new
N700S Shinkansen rolling stock, and the expansion of online reservation and ticketless boarding
services, among others.

Safe

Creating“Social Value” Corporate Data

Tokaido Shinkansen－Constant Effort to Enhance Services－work● Additional security cameras● Enhanced intercom functions● Toilet functions during power outage

Figure 2

Shorter braking distance in the event of an earthquake (at 285 km/h)

25%-

Figure 3

Reduced power consumption

16%

-

5%

-

285

285

Series 700

N700A type

N700S

km/h

Series 700

N700A type

N700S

The braking distance during an earthquake is 5%
shorter than the N700A type thanks to an improved
ATC and brake system.
Figure 4

Battery-based self-propelled system

6%

-

270

km/h

km/h

Employing the Dual Supreme Wing design that reduces air
resistance and a drive system that uses next-generation siliconcarbide semiconductors, the N700S consumes 6% lesselectricity than the N700A type.

TunnelThe N700S is the ﬁrst high-speed train equipped with a battery-based self-propelled system. It can travel to a location where
passengers can safely evacuate in the event of a long power outage following a natural disaster, etc.

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

28

Business Strategy

Highlight 2Generating“Economic Value”

Creating“Social Value” Corporate Data

Tokaido Shinkansen－Constant Effort to Enhance Services－

Highlight 2

Tokaido Shinkansen －Constant Effort to Enhance Services－

Promoting Online Reservation and Ticketless Boarding Services
In an effort to have customers more conveniently use theTokaido Shinkansen, JR Central takes the initiative in promoting
greater use of online reservation and ticketless boarding services
via“EX Service”“Express(
Reservation”and“smartEX”).
For customers who frequently ride the Shinkansen for businessor other reasons, we provide the“Express Reservation”service
that offers a discounted member price throughout the year.
Members of the service can smoothly ride the Shinkansen bysimply touching their member IC card at the automatic ticketinggates after reserving their preferred seats with a smartphoneor other device beforehand. There is no need to stop at the
ticket counter of a station, allowing customers to significantly
reduce their total transit time, and potentially apply for the“Green Program”(not applicable for some members) that allows
customers to utilize the points accumulated based on their usageof the Shinkansen to take a seat in a Green Car at the price ofthe reserved seat in a regular car. In addition, reservations can bechanged as many times as necessary before departure without
any handling fees, allowing customers to use the service withoutworry even if there are sudden schedule changes.
We also offer“smartEX”with no membership fee for customers
who only occasionally use the Shinkansen, including people
traveling to visit their hometown, tourists, and foreigners visiting
Japan, so that they can also use the convenient online reservation& ticketless boarding service. This ticketless service enables
customers to immediately use the service by simply registering
their credit card and the nationwide interoperable transportation
IC card from their smartphone, etc. As a result, we offer greater
convenience to even more customers.
At the moment, reservations for reserved seats using these
services currently account for nearly half of all reservations.

Stimulating Tourist Demand

Shifts in usage of online reservation services
Number of“Express
Reservation”members(10,000 persons)

Number of persons
registered to“SmartEX”

800
750

Online reservation ratio :Around 50% (FY2020)

700
650

425
377

600

226

550
500
450
400
350

72

300

339

315

250

365

387

385

’20.3

’21.3

200
150
100
50
0

’17.3

’18.3

’19.3

Illustration of using“SmartEX”

1. Register

2. Book

3. Board
Tap!

クレジット
カード

Commuting type IC card

Further Enhancing Our EX Service
In March 2021, we launched a ticketless boarding service forgroup passengers, a ticketless boarding service using a QR codefor visitors to Japan, and a reserved seat reservation/change
service for delayed trains. Thanks to these services, passengers
who board trains in groups and visitors to Japan who do nothave commuting type IC cards are now able to board Shinkansen
trains without the bother of receiving a ticket in stations.
Furthermore, we are aiming to extend the service area of the
EX Service to the Kyushu Shinkansen (Hakata - Kagoshima Chuo
section) in the spring of 2022.
In addition, we will enable customers to reserve both
Shinkansen seats and services available along Shinkansen lines
seamlessly in the summer of 2023 by introducing“EX-MaaS”(tentative name), which is based on the convenient and reliable
EX Service but expands on its functionality. Specifically, we willoffer special services with a special feel, including smooth linkage
with hotels, tourist facilities, etc., entry outside business hours,
and preferential entry to popular facilities.
Furthermore, we will make a new EX travel product, which willallow passengers to change trains according to their scheduleand board Shinkansen trains through a ticketless process,available for purchase. It will be the first travel product in Japanthat allows passengers to change Shinkansen trains online until
immediately before the boarding time. It will address the needsof customers who wish to travel on a flexible schedule. We are
currently accepting applications for reservation about a month
before the boarding date, but will make it possible to make29

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

reservations about a year before the boarding date. This will not
only allow us to take reservations for events whose schedule is
known well ahead, including concerts, but also address requests
by visitors to Japan to make early reservations.
We aim to enhance our services in both the business andtourism aspects by offering products attractive to customers
under these structures so that we can increase future usage andrevenues.
Business trips and travel reservations can be arranged seamlessly in a single step
Onlinereservation

Improving the convenience of business trips on the Shinkansen

Ticketless boarding

Travel needs at destination

Potential future service
Working boothreservation at
stations

Hotel
EX Service

SecondaryContenttransportation
EX-MaaS

Special content for EX-MaaS users to create new travel demand

Overtime admission

Priority admission to
popular facilities

Careerdevelopment
content onboard

We are working to stimulate tourist demand by introducing
various campaigns for each region or target segment throughvarious information media and sales channels. For Kyoto andNara, which are the largest tourist resources in our market
area, we have continuously implemented travel campaigns incollaboration with local governments and travel agencies, such as
the Kyoto Campaign (launched in 1993) and the Nara Campaign(launched in 2005), and are promoting the use of the Shinkansen
mainly from the Tokyo Metropolitan area to the Kansai region.
In addition, we are working on coming up with attractive
products associated with Tokyo, Yokohama, Shizuoka, Aichi, Hida
Takayama, Ise-Shima and other locations.
In the summer of 2020, we launched the“Shinkansen for a longawaited trip! Make traveling more fun with small shifts”campaignthat proposes a new way of traveling by“shifting”from the“standard”in terms of time, location, means of travel and action
while taking care to prevent the spread of COVID-19, aiming tostimulate demand by proposing“Zurashi Travel” (shifting travel) as
a new form of travel. The campaign encourages travelers to“shift”
elements of travel so that they can make their trip more fun withnew discoveries, with the added benefit of avoidance of crowded
areas, which ultimately helps prevent the spread of infections.

Improving the Working Environment to Support a New Way of Working
The COVID-19 pandemic has led to increased attention on new
ways of working that does not discriminate between locations,
including telework and web conferencing using ICT. In response tosuch a change in work styles, JR Central aims to expand revenues
by fine-tuning services and products that target individual needs, inaddition to existing initiatives, in providing them.
We will enhance the working environment in stations and trains
to allow passengers to spend their time on the train in ways
suitable to their work style by, for example, enabling them tocontinue working seamlessly before and after boarding a Tokaido
Shinkansen train.
Specifically, we have made Car No. 7 of the Nozomi train an“SWork Car”on a trial basis, for passengers wishing to do work on
mobile devices, etc. without worry. In addition, we plan to launchon Cars No. 7 and No. 8 of Series N700S trains a new, free-ofcharge“S Wi-Fi for Biz”service, which has double the transmission
capacity of existing free Wi-Fi services and sets no limit on the

Departure station

On trainRenovation of station waiting rooms

Cars for business people

・ Free, semi-private booth-type business corners
and poles ﬁtted with power outlets to be set up

・Trial operation of“S Work Car” ・Launch of“S Wi-Fi for Biz”
・Trial operation of“Business Booth”

Business corner

Pole ﬁtted with power
outlets

Improving the Working
Environment to Support a
New Way of Working“S Work Car”logo“S Wi-Fi for Biz” Image of“Business
Booth”logo“EXPRESS WORK”

Special viewing

Other service enhancements

length of use, and introduce, on a trial basis, a“Business Booth”
that passengers can use for meetings, etc., and will be set up by
renovating the“smoking room”between Cars No. 7 and No. 8 (inthe deck part) of N700S trains.
Furthermore, we will set up semi-private work booths and poles
fitted with power outlets that are available free-of-charge in somewaiting rooms at Tokyo, Nagoya and Shin-Osaka stations. We will
also set up at some stations box-type private work spaces andoffice-type work spaces, called“EXPRESS WORK,”incorporating
private booths and meeting rooms that EX Service subscribers canuse for a variety of purposes, including working along in a boothor having meetings with several people, before or after boarding
Tokaido Shinkansen trains.
We aim to continue working to enhance our services in avariety of aspects so that businesspeople who use the Tokaido
Shinkansen can spend the time of their travel in more convenientand comfortable ways.

Seamless travel using EX Service

Eﬀective use of time while
traveling and at destination● Ticketless boarding, development of EX travel products that allow

Targeting inbound tourists and working in cooperation
with municipalities located along our train lines and othertransportation companies, we offer sightseeing value tickets
covering destinations that are popular among such tourists,
including “Takayama andHokuriku.”We also have tour
packages for the Tokaido
Shinkansen combined withday trip excursion tickets todestinations we serve, suchas FLEX JAPAN, which is a
package that comes with aroundtrip Shinkansen ticket,
accommodation, etc. to capture
inbound demand that remains
solid. As a tool to promotethese offerings, we post about
attractive features of Japan on
the Central Japan Shinkansen/
Train Portal, a website packed
with information on our products
targeting visitors to Japan.
“Zurashi Travel”poster

・Box-type private work spaces to be set up
・Oﬃce-type work spaces incorporating privatebooths and meeting rooms to be set up

Destination station“EXPRESS WORK”(box type)
Image

Seamless travel using EX Service

passengers to change trains online up to the last minute● Early booking of Shinkansen (about one year before the boarding date)
CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

30

Business Strategy

The Chuo Shinkansen Project

Article 4

The Chuo Shinkansen Project using the Superconducting Maglev System is a project to duplicate our arterytransportation system linking Tokyo, Nagoya and Osaka, which is the lifeline of our business, and drastically
prepare for risks such as aging in the future and large-scale disasters of the Tokaido Shinkansen. This project willallow us to further reduce management risk and thus stabilize our management base, and continue to carry out
our founding mission of undertaking high-speed, large-capacity passenger transport between Tokyo, Nagoya andOsaka. This project will also dramatically improve convenience by greatly reducing travel time due to its highspeed operations, bring significant benefits and potential for development to the Japanese economy and society,and ensure the long-term interests of shareholders and all other stakeholders over a long period of time.

500

km/h

40

Tokyo (Shinagawa) - Nagoya:minutes31

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

Article 5 Research and Reports

Article 14-2 The Transport Policy Council
Article 6 Designation of Operator and Constructor

67

Tokyo (Shinagawa) - Osaka

minutes

Environmental
Impact Assessment

Decided in November 1973
Topological and geological surveys Ordered in February 1990
→Reported in October 2008
Research on the residual 4 items* Ordered in December 2008
→Reported in December 2009
Consulted on February 24, 2010

Construction line

Chuo Shinkansen

SectionTokyo - Osaka City

Technology used for runningSuperconducting magnetic levitation technology

Maximum design speed

505 km/h

Estimated amount of costs
required for construction(including rolling stock costs)

9,030 billion yen

Other necessary items

Main areas
passed throughKofu City area, south-central Akaishi Mountains(Southern Alps), Nagoya City area, Nara City area

*The estimated amount of expenditures for construction does not include interest.

→Replied on May 12, 2011

Outline of the Construction Implementation Plan (Part 2) of the
Chuo Shinkansen section between Shinagawa and Nagoya

Consented on May 18, 2011
→Designated on May 20, 2011

SectionConsented on May 23, 2011
→Decided on May 26, 2011

Between Shinagawa and Nagoya

Station Location

Shinagawa Station, Kanagawa Prefecture Station (provisional name),
Yamanashi Prefecture Station (provisional name), Nagano Prefecture Station(provisional name), Gifu Prefecture Station (provisional name), Nagoya Station

Line extension

285.6km

Article 8 Instruction to Construct Instructed on May 27, 2011

Construction costs

Construction Implementation Plan (Part1) : Submission on August 26, 2014

Article 9 Construction Implementation Plan →Approved on October 17, 2014

Expected completion year

Construction Implementation Plan (Part2) : Submission on September 25, 2017
→Approved on March 2, 2018

4,853.6 billion yen[Total construction costs of 5,523.5 billion yen (Includes rolling stock costs.
Excludes the construction costs for the existing Yamanashi Maglev Line)]2027*I t i s a n n o u n c e d i n t h e “ N o t i c e C o n c e r n i n g T o t a l C o n s t r u c t i o n C o s t s f o r t h e
Chuo Shinkansen Section between Shinagawa and Nagoya” (Apr. 2021) thatthe total construction costs between Shinagawa and Nagoya are expected tobe 7.04 trillion yen.

Start of Construction*Research on the residual 4 items ●Items related to transportation capacity in response to transportation demand●Items related to the development of facility and rolling stock technologies●Items related to construction costs●Other necessary items

that we have developed. The Chuo Shinkansen will turn Japan’s maintransportation artery into a dual system, and JR Central will operate itin an integrated manner along with the Tokaido Shinkansen.
Distribution map of the estimated greatest seismic intensity of the
Nankai Trough Large Earthquake

Chuo Shinkansen

Seismic intensity
class

Tokaido Shinkansen

The realization of the Chuo Shinkansen using the Superconducting Maglev System will contribute to thevitalization of Japan’s economic and social activities, turning Japan’s main transportation artery between Tokyo,
Nagoya and Osaka into a dual system, and merging the three major metropolitan areas into“Super Mega Region.”
Super Mega Region 66.40 million people GDP: 319 trillion yen *1
Kansai Region

Central Region

Tokyo Metropolitan Area

（Osaka, Kyoto, Nara, Hyogo ）（Aichi, Gifu, Mie）

（Tokyo, Kanagawa, Chiba, Saitama）

18.24million people GDP：76trillion yen

Nagoya Station

Shin-Osaka

New Value Provided by the Chuo Shinkansen

Shinagawa7
upper 6lower 6
upper 5lower 54autonomy of capital investment, would not be hindered by applicationof the Act, we referred fundamental clauses regarding application of
the Act to the Ministry of Land, Infrastructure, Transport and Tourism(hereinafter,“MLIT”), and received a reply in January 2008 indicatingthat those principles would not be hindered.
We will take steady steps towards the successful completionof this project, maintaining sound management and stabledividends, sufficiently examining costs and demonstrating our
flexibility, while making necessary investments to ensure safeand reliable transportation, and to enhance the competitivenessof the Tokaido Shinkansen and conventional lines. We will
first realize the project between Tokyo and Nagoya, where wehave received approval for the construction plan, and strive tofurther extend to the project to Osaka.

36.78 million people GDP: 186 trillion yen

11.38 million people GDP: 56 trillion yen

Tokyo

ShinagawaTravel Time Reduction

Tokyo (Shinagawa)‒ Nagoya (fastest) : 86 minutes→40 minutes
Tokyo (Shinagawa) ‒ Osaka (fastest) : 134 minutes→67 minutes

NagoyaGifu*2Nagano*2Chuo Shinkansen

Yamanashi（Operating speed：285km/h）

Kanagawa*2（42.8㎞）（Trillion yen）

600
400

Shin-Osaka*2

Yamanashi Maglev Line（Operating speed：500km/h）

Tokaido Shinkansen

Source: Prepared by JR Central based on“Countermeasure against a Nankai Trough Large
Earthquake (Final Report)”(May 2013)

Chuo Shinkansen Project as a national project
The Chuo Shinkansen is being constructed in accordance with theAct, which is a legal system for developing infrastructure essential to
the nation in order to contribute to the development of the national
economy, the expansion of the area of Japanese people’s lives, andthe development of local communities. Based on the Act, we received
the designation as the operator and the order for construction from
the Minister of Land, Infrastructure, Transport and Tourism in May
2011, and then the construction implementation plan was approvedby the Minister of Land, Infrastructure, Transport and Tourism in
October 2014. In the meantime, we have conducted environmental
assessment procedures and published the final environmental impact
assessment report between Tokyo and Nagoya, which is promoted as
the first stage.
On the other hand, in order to confirm that the principles of a
privately owned company, such as freedom of management andBasic Plan

Article 7 Development Plan

Outline and Significance of the Chuo Shinkansen
We are promoting the Chuo Shinkansen Project using theSuperconducting Maglev System based on the Nationwide Shinkansen
Railway Development Act (hereinafter,“the Act”) to continually carryout our mission of operating a high-speed railway linking the Tokyo
Metropolitan area, and the Chuo and Kansai regions (from Tokyothrough Nagoya to Osaka), which is the lifeline of our business, and toensure the future foundation of the company.
The Tokaido Shinkansen has been in operation for more than half acentury, and while we have been carrying out large-scale renovation,
there is the risk of suspension of services due to major facility
replacement caused by future aging. Furthermore, Japan is prone
to earthquakes and, although we have taken earthquake resistancemeasures for the Tokaido Shinkansen, there is the risk of potential
major disasters, including the undeniable possibility of long-term
disruption to Japan’s main transportation artery due to a possible
major earthquake. Therefore, as a drastic measure to prepare forthese future management risks, we decided to complete the Chuo
Shinkansen as quickly as possible, under the assumption that we bear
the cost of its construction, utilizing the Superconducting Maglev System

Content of Development Plan

Flow of work based on the Nationwide Shinkansen Railway Development Act［Main constituent］ ●：JR Central ▲：Minister of Land, Infrastructure, Transport and Tourism■：Transport Policy Council◆：Japan Railway Construction, Transport and Technology Agency

Using the Superconducting Maglev System

Travel time (fastest)

Creating“Social Value” Corporate Data

The Chuo Shinkansen Project Using
the Superconducting Maglev System

Highlight 3

Operating speed:

Generating“Economic Value”

Highlight 3

Comparison of GDP between thethree major metropolitan areas and major countries

319trillion yen

200
0285.6km*3
438km *4

Japan Three major
FranceUK
metropolitan areas
Source: United Nations database, Cabinet Oﬃce“Report on Prefectural Accounts”(FY2017)*Calculated at a rate of 112.19 yen per dollar.
*Three major metropolitan areas are calculated taking the following prefectures into
account.
Tokyo, Kanagawa, Chiba, Saitama, Aichi, Gifu, Mie, Osaka, Kyoto, Nara, Hyogo*1 Source: [Population] Ministry of Internal Affairs and Communications“Population, Demographics and Number of Households Derived from Basic Resident Registration”(As of January 1, 2021) / [GDP] Cabinet Office“Report on Prefectural Accounts”(FY2017) *2 The name of each station located in Kanagawa,
Yamanashi, Nagano, and Gifu on the Chuo Shinkansen line is temporary. *3 Source:“Construction Implementation Plan (Part2) of the Chuo Shinkansen Section between Shinagawa and Nagoya”(Mar. 2018) *4 Source:“Research Report on the Chuo Shinkansen Section between Tokyo and Osaka”(Dec. 2009)

We will continue to fulfill our mission into the future
by reducing management risks and stabilizing ourmanagement base by completing the Chuo Shinkansen
Project. Furthermore, by adopting the Superconducting
Maglev System for the Chuo Shinkansen, we can
expect a drastic reduction in travel time between

cities, and the three major metropolitan areas willbe transformed into one mega-metropolitan area, theso-called“Super Mega Region,”where the interactionof people will be highly activated and economic andsocial activities will be energized, which is expected
to have a significant positive effect on our business.

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

32

Business Strategy

Highlight 3

Highlight 3Generating“Economic Value”

Creating“Social Value” Corporate Data

超電導リニアによる
The
Chuo Shinkansen Project Using
中央新幹線計画
theSuperconducting Maglev System

The Chuo Shinkansen Project Using the Superconducting Maglev System

Promotion of Construction Work

❶ Creation of new demandintermediate stations in Kanagawa, Yamanashi, Nagano andGifu Prefectures, there is a possibility of significantly improving
travel time and frequency between cities along the line and thethree major cities, and increasing the flow of people if there isroom to increase the number of operations and the number ofstops for the“Hikari”and“Kodama”by taking advantage of theextra transportation capacity caused by the transfer of“Nozomi”
passengers to the Chuo Shinkansen.

In the competition between the Shinkansen and air travel,
the shorter the travel time of the Shinkansen, the greater its
share. Demand is therefore expected to shift from air travel to
the Chuo Shinkansen due to the time reduction effect of theSuperconducting Maglev System. In addition, the dramatic time
reduction will greatly stimulate the flow between metropolitan
areas, which is highly expected to generate new demand.
Furthermore, in addition to the anticipated new use ofWorld’
s fastest speed brings each area along the line closer
40 minutes(fastest)

About 60 minutes

About 45 minutes

About 25 minutes

About 10 minutes

Gifu Prefecture（tentative name）

Nagano Prefecture（tentative name）

Yamanashi Prefecture(tentative name)

Kanagawa Prefecture（tentative name）

About 15 minutes

About 25 minutes

About 45 minutes

About 60 minutes

NagoyaThe possibility of using the Tokaido Shinkansen will increaseTokyo

Stations where Hikari and Kodama stop

Construction of terminal stations

Mountainous tunnel construction

Urban tunnel construction

The construction of the Shinagawa and Nagoya
terminal stations involves installing a largescale underground structure in the basement of
the Tokaido Shinkansen and other lines while
they are in operation, which is very difficult
and requires the utmost care and high level
construction technology. In addition to safely
replacing existing structures of the commerciallines, we will construct earth retaining walls
to protect the surrounding areas. Then, we
will construct a structure that will become thestation of the Chuo Shinkansen in the excavatedunderground space using the open-cut methodthat digs down mainly from the ground surface.

For tunnel construction in mountainous
areas, we adopt the New Austrian
Tunneling Method (NATM). NATM uses
shotcrete to harden the surface of theground drilled by machine or blasting, andbolts and concrete to fix the rock aroundthe tunnel, and then the rock is integrated
with the natural ground. This allows thenatural support of the natural ground to be
used for digging.

We adopt the shield tunneling method fortunnel construction in urban areas. The
shield tunneling method is a method wherea cutter slowly rotates inside a protected
steel tube (shield machine) and excavatessoil while drilling. In the construction,
vertical shafts (emergency exit), which are
the starting point of the shield machine, arefirst drilled, and then the shaft is laterally
drilled by the shield machine from one
vertical shaft to another.

Shinagawa Station

Southern Alps Tunnel (Yamanashi Section)

Shield machine

40 minutes(fastest)

Image of the Number of Operations

ShinagawaShin-Yokohama

OdawaraAtami

MishimaShin-Fuji

Shizuoka

Kakegawa

Hamamatsu

Toyohashi

Mikawa-Anjo

Nagoya

Gifu-Hashima

MaibaraKyoto

Shin-Osaka

Stations where Nozomi, Hikari, and Kodama stop

Shinagawa

Outline of major construction work

Stations where Kodama stops

Nozomi

Hikari and Kodama

Present(Image)Nozomi● From“Nozomi”centered timetable to“Hikari”and“Kodama”centered timetable.

The number of“Hikari”and“Kodama”will increase After starting the

Hikari and Kodama

operation of the Chuo
Shinkansen’s entire line

→ Travel time and frequency between the cities along the line and the three major cities improves significantly.

Progress of Construction Work (as of end of September 2021)❷ Broad ripple effects on the economy and society
Due to the overwhelming time reduction effect of theSuperconducting Maglev System, Tokyo - Nagoya - Osaka will beconnected in about one hour, and the three major metropolitan
areas will become a“Super Mega Region”with a total populationof about 66 million, or over half of Japan’s total population.
This “Super Mega Region” is expected to become thecore driving new growth for Japan, which is experiencing adeclining population, by broadening the scope of activities

and thereby significantly changing lifestyles such as the way
people do business and spend their leisure time, as well as
expanding various possibilities. The final report of the“Super
Mega Region Concept Study Group”established by MLIT titled“Creating a Super Mega Region to Overcome a Declining
Population: Creating New Value through Liberation from Timeand Place”(May 2019) presents the following as“impacts of the
Chuo Shinkansen.”

From the Final Report of the“Super Mega Region Concept Study Group”(May 2019)● Opportunities for face-to-face interaction between people will increase, and the time for interaction will expand, which willlead to opportunities to create new innovation.

● It is expected to bring about changes in business styles and lifestyles by liberating people from“time”and“place,”whichhave been factors that restrict working and living styles, and providing a variety of options.

● Due to the integration of the three major metropolitan areas, the entire Super Mega Region will create new value andgrowth industries, which will increase the attractiveness of the region in inviting people and investment from overseas.

● B yorganically connecting the Chuo Shinkansen, Shinkansen and expressway networks, it is expected that themultiplicity and substitutability of the high-speed transportation network, which forms the framework of thenational land policy, will be enhanced, and a sustainable flow of people and goods will be secured.

● It is expected that new regional revitalization will begin in the areas around the intermediate stations locatedWe proceeded with measurement, design and land acquisition
by establishing close coordination with local communities between
Shinagawa and Nagoya, where we received approval for the construction
implementation plan, and signed contracts for Nagano Prefecture
Station (tentative name), etc. In addition, we explained the outline of theconstruction work and safety measures to residents of the construction
areas where construction contracts have been signed. These included
construction areas where tunnels will be dug at deep underground sectionsof the Tokyo Metropolitan Area and the Central Region, for which we helda briefing on the safety and security measures for shield tunneling ahead ofa construction briefing. At the Southern Alps Tunnel (Yamanashi Section),where construction work has already begun, we continued to excavate
an inclined shaft, pilot tunnel and main tunnel. At the Nagano Section, we
continued to excavate the inclined shaft and pilot tunnel. Besides these, we
steadily constructed terminal stations, intermediate stations, mountainous
tunnels, emergency exits in urban areas, and elevated bridges, etc. Among
those, at the Higashiyurigaoka emergency exit in Kanagawa Prefecture,
the main vertical shaft was completed. At the Ina Sanchi Tunnel (the Aoki
River Section) in Nagano Prefecture, excavation of the inclined shaft wascompleted, and excavation of the main shaft was newly started. We willcontinue to focus on construction safety, environmental protection, andcoordination with local communities, and will steadily proceed with various
types of construction while thoroughly and carefully examining costs.
In the Southern Alps Tunnel (Shizuoka Section), we have not beenable to obtain the understanding of Shizuoka Prefecture and the local
municipalities concerning the impact on the water resources of the Oi
River. As such, construction work has not seen substantial progress andthese situations make it difficult to meet our 2027 target for ShinagawaNagoya opening. Given the circumstances, MLIT established the“Expert
Conference on the Linear Chuo Shinkansen Shizuoka Section of theConstruction Site”in April 2020 to resolve issues through discussions
based on the scientific and engineering evidence. At the 12th meeting of
the Expert Conference held on September 26, an interim report (draft) on
Oi River water resource issues was discussed, and a policy to finalize it at
the next meeting was indicated. In the same month, we held a meeting to
exchange opinions with the city and town mayors of the Oi River basin.
We will continuously work to resolve the concerns of the Oi River basin
communities by sincerely giving explanations at the Expert Conference, andexchanging opinions sufficiently with the cities and towns of the Oi Riverbasin.

* See our website for the latest information on the progress of the construction work.
▶P ublicly released materials regarding the Chuo Shinkansen Project (The progress of construction work in each prefecture
can be viewed in“Construction safety, environmental protection, and coordination with local communities.”)
https://company.jr-central.co.jp/chuoshinkansen/▶ Summary of Consolidated Financial Report▶ Investor Meeting Presentation Handout

https://company.jr-central.co.jp/ir/brief-announcement/

https://company.jr-central.co.jp/ir/investor-meeting/between the three major metropolitan areas, and that the effects of the Super Mega Region will spreadwidely beyond the areas along the Chuo Shinkansen.
*Extract and summary by JR Central of the final report of the“Super Mega Region Concept Study Group”established by MLIT (May 2019)

Furthermore, according to the“National Land Policy Simulation
Model”compiled by MLIT, the productivity improvement effectsof the formation of the Super Mega Region as a result of the
opening of the Chuo Shinkansen are estimated to be 3.5 trillion
yen per year for the opening of the line up to Nagoya, and 6.5
trillion yen per year for the opening of the line up to Osaka.*

33

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

In this way, the dramatic reduction in travel time brought
about by the opening of the Chuo Shinkansen will have a major
impact on the entire country, and will lead to the creation of
new value and the sustainable growth of Japan as a whole.
*National Spatial Planning and Regional Policy Bureau of MLIT“FY2017 Survey Reporton the Development of National Land Policy Simulation Model”(July 2018)

Nagoya Station

Kanagawa Prefecture Station (tentative name)

Higashiyurigaoka Emergency Exit

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

34

Business Strategy

Highlight 3Generating“Economic Value”

Highlight 3

Creating“Social Value” Corporate Data

超電導リニアによる
The
Chuo Shinkansen Project Using
中央新幹線計画
theSuperconducting Maglev System

The Chuo Shinkansen Project Using the Superconducting Maglev System

Principles of the Superconducting Maglev System

Implementation of Environmentally Conscious Construction

Construction of the Chuo Shinkansen is proceeded with, taking the surrounding environment into consideration.
The main environmental conservation measures to be implemented are as follows.
Atmospheric environment(air quality, noise and vibration)

Water environment(water quality, water resources and groundwater)

Animals, plants andecosystems

Reducing the impact of vehicles used
to transport materials and machinery

The use of low-noise and lowvibration construction machinerywith low exhaust emissions
reduces the generation of
nitrogen dioxide and suspended
particulate matter, as well as
noise and vibration.

Wastewater and turbid water
generated by construction work
are discharged into public waters
after measures are taken such astreatment and neutralization to
reduce turbidity as necessary, bymeans of turbid water treatment
facilities, in accordance with
wastewater standards, etc.,
based on laws and regulations,
thereby reducing the impact on
public waters.

In the detailed planningof construction, we avoid
places where important
plant species grow as far as
possible and, if construction
in such places is unavoidable,
we compensate for the
influence on the growing
environment of important
species by transplanting andseeding in places with similar
environments.

We reduce the generationof dust by cleaning andwatering the entrances, exits
and surrounding roads forvehicles used to transportmaterials and machinery, andby cleaning their tires.

Overview and Development History of Superconducting Maglev System Technology
The Superconducting Maglev System is an advanced technology
unique to Japan. Instead of using the friction between wheels and rails
like conventional railways, it runs in a non-contact manner due to themagnetic force between the Superconducting Magnet mounted on thevehicle and the coils mounted on the ground. In addition, to obtain thestrong power of the magnets, the technology uses a superconducting
magnet utilizing“the‘superconductivity’phenomenon whereby
electrical resistance vanishes when a particular substance is brought
below a certain temperature,”which enables the vehicle to levitate
about 10 cm, making it possible to operate safely in earthquake-prone
Japan. These features make it possible to travel at an ultra high speedof 500 km/h in a stable manner, unlike conventional railways.
The level of the Superconducting Maglev System Technology
has been evaluated in multiple stages since running tests beganon the Yamanashi Maglev Line in April 1997. In July 2009, theSuperconducting Magnetic Levitation Technological Practicality
Evaluation Committee of MLIT (hereinafter,“Evaluation Committee”)
confirmed that the Superconducting Maglev System Technology had
already achieved levels sufficient for commercial service, and theMinister of Land, Infrastructure, Transport and Tourism established thetechnological standards for the Superconducting Maglev in December
2011. Since then, we have continued running tests, and in February
2017, the Evaluation Committee confirmed its evaluation that thetechnology development required for commercial lines was completed.
We will continue to make efforts to further brush up Superconducting
Maglev System Technology, including improving comfort and enhancing
the efficiency of maintenance. We will also conduct running tests
using the Series L0 improved version and develop commercial vehicle
specifications, as well as working to reduce costs for the construction,
operation and maintenance of commercial lines.

Progress on Superconducting Maglev System Technology
June 1990

JR Central applies to the Minister of Transport for approval of theconstruction plan of the Yamanashi Maglev Line and gains approval.

April 1997

Running tests start on the Yamanashi Maglev Line.

The Superconducting Magnetic Levitation Technological
Practicality Evaluation Committee of the Ministry of Transport) acknowledges that
March 2000 (hereafter, the“Evaluation Committee”“there is potential from a technological standpoint that thetechnology could have practical applications.”
November 2004

JR Central performs exercises of trains passing each other at
1,026 km/h relative to one another.

March 2005

The Evaluation Committee of MLIT acknowledges that“the coretechnologies for practical application have been established.”

July 2009

The Evaluation Committee of MLIT acknowledges that“thetechnologies required for commercial services have been
established from a comprehensive and systematic standpoint, and
it is possible to move forward with detailing the specifications forcommercial services and the technical standards.”

Propulsion System

Levitation System

Guidance System

By passing current through the Propulsion Coilson the ground, a magnetic field (north and south
poles) is produced, thus the vehicle is propelledforward by the attractive force of the opposite
poles and the repulsive force of the samepoles acting between the ground coils and theSuperconducting Magnets built into the vehicles.

The Levitation and Guidance Coils are installed
on both sides of the guideway (track). When the
on-board Superconducting Magnets pass throughat high speed, an electric current is induced in
the Levitation and Guidance Coils, causing them
to become electromagnets. This generates aforce that both pushes and pulls up the vehicle.

The Levitation and Guidance Coils on bothsides of the guideway keep the vehicle inthe center of the guideway at all times byexerting an attractive force on the far sideof the vehicle and a repulsive force on thenear side when the vehicle moves off centerto either side.

Total Construction Costs for the Chuo Shinkansen Section between Shinagawa and Nagoya
It is announced in the“Notice Concerning Total Construction Costs
for the Chuo Shinkansen Section between Shinagawa and Nagoya”(Apr. 2021) that the total construction costs between Shinagawa andNagoya are expected to be 7.04 trillion yen, compared to 5.52 trillion
yen, which is the estimated amount at the time of the“Construction
Implementation Plan (Part2) of the Chuo Shinkansen Section between
Shinagawa and Nagoya”(Mar. 2018). The reasons for the increasein construction costs include responding to challenging construction
work, enhancing earthquake countermeasures, and securing utilizationsites of excavated soil.
The Company will prioritize sound management and stabledividends with regard to future management just as always, and willfund the construction costs mainly through operating cash flow andthe remaining amount through repayable borrowings. If the Company
anticipates that it can no longer ensure sound management and stabledividends, the Company will aim to complete the construction byadjusting the pace of construction and fully restoring its management
strength.

As a reference, in order to confirm that the funds necessary forcompletion of the construction are secured, the Company calculated
the operating cash flow based on certain reasonable assumptions in
the event that the revenue recovers at a realistically expectable pacefrom the impact of the COVID-19 pandemic, and confirmed that, if
approximately 1 trillion yen of new financing is added to such operating
cash flow, the cumulative amount of the funds available for constructionof the section between Shinagawa and Nagoya would exceed the total
construction costs of 7.04 trillion yen in FY2028. It should be notedthat this does not mean that a new target time for opening is set;
however, a trial calculation of the status of securing funds under certain
assumptions was made for reference purposes only.
Thus, we have confirmed that we will be able to secure the level offunds necessary to complete the construction even after incorporating
the increase in construction costs. The Company will continue toproceed with the Chuo Shinkansen project with the aim of early
realization of the Chuo Shinkansen while ensuring sound management
and stable dividends.

Trial Calculation to Confirm Securing of Construction Funds (as of April 2021)(For reference: Assumptions for confirmation, etc.)(For reference: Results of confirmation)
Transportation
revenues(Shinkansen andconventional lines)

Transportation revenues will recover gradually to 66% in FY2021, 80%
in FY2022, and 90% in FY2023, and after FY2024 to 100% by FY2028.

August 2013

Extension of the Yamanashi Maglev Line to 42.8km and theupgrading of facilities are completed.

Expenses

April 2015

JR Central records a travel distance of 4,064 km in one day.
JR Central records the world speed record for a manned rail
vehicle at 603 km/h.

Essentially, personnel expenses will be maintained at the current scale of personnel
required for railways, and non-personnel expenses will be recorded at the fiveyear average of the results from FY2015 to FY2019. In addition, cost reductions
pursued through“Business Reforms”are considered to a certain extent.

Capital investments(Chuo Shinkansen)

7.04 trillion yen

Capital investments(Shinkansen andconventional lines)

Essentially, necessary capital investments will be accumulated, and considering
the cost reductions through“Business Reforms,”capital investments will remainunchanged at approximately 220 billion yen per year in and after FY2028.

December 2011

The Minister establishes the technical standards forSuperconducting Maglev.

February 2017

The Evaluation Committee of MLIT evaluates that“the technology
development required for commercial lines has been completed.”

August 2020

Running tests start using the Series L0 improved version.

OthersPeriod in which the cumulative amount of thefunds available for construction of the Chuo
Shinkansen exceeds the total construction cost*

FY2028Operating revenues for the fiscal year
following the above period

1,530 billion yen

Ordinary income for the fiscal year following
the above period

240 billion yen

Long-term debt outstanding for the fiscal
year following the above period

6.0 trillion yen

Note: In and after the period marked with an asterisk (*) above, in calculating
the operating revenues and ordinary income, it is assumed thattransportation revenues will increase by around 5% compared to previous
periods, and that depreciation expenses and maintenance and operation
costs will be recorded for assets related to the Chuo Shinkansen.

Interest rate on financing: 3%

Note: The recovery in transportation revenues from the Shinkansen and conventional lines is compared to FY2018.

(For reference: Changes in ordinary income and long-term debt)

History of Maglev Vehicles(Billion yen)
600

Ordinary income (left axis)Long-term debt and payables (right axis)
240

400
200

(Trillion yen)
10.0
8.0
6.0

6.0

MLX01-1

MLX01-901

Series L0

In order to establish commercial vehicle specifications, in August 2020 we started
running tests using the Series L0 improved version, which further brushed up theSeries L0 based on the results of the running tests so far.

35

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

0

4.0

-200

2.0

-400

Series L0 improved version

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

0.0
2030 (FY)CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

36

Business Strategy

Conventional Lines and Affiliated Businesses－Maintenance and Development of Social Infrastructure－

By continuing to strengthen conventional lines in the Tokai region that form a network with the Tokaido
Shinkansen, as well as affiliated businesses that are expected to generate synergies with the railway business,such as the JR Central Towers and the JR Gate Tower at Nagoya Station, JR Central is working to expand
business revenues and contribute to the maintenance and development of the local social infrastructure.

frequency of services or the number of cars per train, especiallyduring the morning and evening commuting hours. Furthermore,as a replacement of the Series 211, Series 213 and Series 311,
which were introduced around the time of our establishment,
we will newly manufacture a new type of commuter electricrailcar, the Series 315, from FY2021 to FY2025, and gradually
introduce it to conventional lines centered on the Nagoya
and Shizuoka City areas, including the Chuo Line, the TokaidoLine and the Kansai Line. By launching these new vehicles, wewill have replaced all vehicles with vehicles that have been
newly produced since our establishment, improving services
for our customers by providing safety, stability, comfort andconvenience, and further enhancing environmental performance.

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

The JR Central Group undertakes businesses in the areas ofTransportation, Merchandise and Other, Real Estate, and Other.
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, utilizing the advantage of having good railway station

locations to attract customers. The Real Estate segment develops
commercial facilities in stations and areas under the elevatedtracks, and also leases real estate such as station buildings. In
the Other segment, we manage hotels, travel agencies, andadvertising agencies, etc. We also manufacture rolling stock andmaintain, inspect and repair our railway facilities in this segment.

Uniform management of JR Central Towers and JR Gate Towerbuildings have made a significant contribution to the economic
development of the Chubu region. We will continue to operate
the Towers and the Gate Tower in a uniform manner andwork to increase earnings by demonstrating synergistic effects
by clearly segregating the concepts of the businesses of bothfacilities and promoting collaboration in sales.

JR Central Towers
The JR Central Towers, the skyscraper complex with aheight of 245 meters and a total floor area of approximately
417,000 m2, built right above Nagoya Station, forms the coreof our affiliated businesses. Our three consolidated subsidiaries
operate a department store, a hotel, and offices. Ever since theopening of the facility, earnings of our affiliated businesses haveincreased significantly.
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 the Nagoya

station, attracts large numbers of visitors. In FY2020, we madea large-scale renovation of
the food section, securing
revenue. Nagoya Marriott
Associa Hotel is rated highly
for its convenient location
directly above the station, its
spectacular view from the top
floors, its upscale facilities,
Food section after the large-scaleand other features.
renovation

JR Gate Tower
The JR Gate Tower is a high-rise complex building with a heightof approximately 220 m and a total floor area of approximately
260,000 m2 standing adjacent to the Towers, and comprisescommercial facilities, a hotel, offices, and other facilities.
The office spaces are almost fully occupied due to theirprime 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 and price ranges not found in the adjacentdepartment store. Nagoya JR Gate Tower Hotel, together
with Nagoya Marriott Associa Hotel, is highly regarded bya wide range of guests as a hotel that focuses mainly on

Next-generation Series HC85 (testing vehicle)

Sales and marketing in coordination with local communities along our lines

37

Creating“Social Value” Corporate Data

JR Central Group’s affiliated businesses

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 attracting large numbers ofvisitors. Already recognized as landmarks of Nagoya, these

Mission as a social infrastructure of the local community

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 our operating areas, we areworking to stimulate tourist demand by publicizing attractive tourist
resources at stations, on trains, through our website and by othermeans, and taking various sales and marketing measures.
For example, we sell a special ticket package that includes around-trip limited express reserved seat ticket, tickets for buses,
taxis and other means of mobility in the destination area, andshopping coupons, improving the use of express services along
conventional lines. We also offer a train journey with a sense of
the extraordinary by operating the express train“Iida Line Secret
Stations”on the Iida Line, which runs through remote mountainstations 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

Generating“Economic Value”

Conventional Lines and Affiliated Businesses－Maintenance and Development of Social Infrastructure－

Highlight 4

JR Central undertakes the mission of supporting thesocial infrastructure. That is, in an integrated manner withthe management of Japan’s main transportation artery, wetake a locally oriented approach in operating a networkof conventional lines in the Tokai Region, centered on the
Nagoya 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 work andschool. In other words, they serve as the social infrastructure of
the local community. We have steadily improved our services 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 network of the
Shinkansen and conventional lines by improving connections
between the two and increase flexibility in the operationof major limited express trains by increasing the frequencyof services or number of cars per train to absorb demand
fluctuations caused by seasonal factors and events. Goingforward, we will newly produce a mass-production vehicle of thenext-generation hybrid powered limited express“Series HC85”
as a replacement for the Series 85 diesel railcars currently used
for our limited express trains“Hida”and“Nanki,”from FY2022
to FY2023. The Series HC85 will achieve 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, and increase theHighlight 4

start from our stationsand visit waysidesightseeing spots. We
are also collaboratingwith local governments,
travel agencies, etc.
through the Destination
Campaign organizedjointly by the six JR
companies to develop
attractive tourism
resources and products
Express“Iida Line Secret Stations”
and operate sightseeing
trains, etc., contributing to regional revitalization as well as promoting the useof the Shinkansen and conventional lines.

accommodation, offering both comfort and functionality.
By integrating the management and operation of the entire
building with the Towers,
we are pursuing efficientmanagement as the JR Central
Group. In addition, the Gate
Tower has added new content
not found in the Towers, further
enhancing the attractiveness ofthe two buildings.
Takashimaya Gate Tower Mall

Profitability improvement of JR Central Group’s affiliated businesses
To overcome the severe business conditions caused by changes
in the business environment, we will thoroughly implement lowcost and efficient business operations, promote the management
efficiency of each Group company, and further improve theprofitability of the Group’s affiliated businesses. The Group’saffiliated businesses have been developed while demonstratingsynergistic effects with the railway business, and in the future, wewill also work to improve profitability without relying on the railway
business. Specifically, we will expand new sources of revenue by
developing businesses outside of station locations and businesses
that focus on specific targets.
For example, in terms of businesses outside of station locations,
we develop offices, restaurants and other facilities under elevatedtracks in response to the needs of the surrounding areas. In July
2021, we opened JR Nagoya Takashimaya Watch Maison, one of thelargest luxury watch sections in Japan, in the Dai Nagoya Building.
In spring 2022, we plan to open the JR Nagoya Takashimaya Food
Maison Okazaki (tentative name) in the Aeon Mall in Okazaki City,
Aichi Prefecture, utilizing the know-how cultivated through operationof the basement food section of JR Nagoya Takashimaya. The store
will offer a wide range of popular brands and latest products thatcan only be found in a grocery store in the style of the food sectionin the basement of a department store with high-quality foodstuffs.
In addition, we will work to strengthen our e-commerce businessby expanding the“IIMONO TANBOU”website, which sells tasty foodand selected crafts
produced along therailway lines, anddirectly deliver themfrom the production
areas, as well aslaunching the “EC
Mall,”which is thecommon e-commercesite for our group.
JR Nagoya Takashimaya Watch Maison

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

38

Business Strategy

Technological Development
to Support JR Central’s Growth

In order for JR Central to fulfill its mission and develop in the future, it is essential toconstantly work to ensure daily safe and reliable transportation, to pursue comfortabletransportation services, and to build the hardware and systems that will support these efforts
through technological development. In regard to technological development in railways, it isnecessary to bear in mind that only when each physical and non-physical research result is
integrated and reflected in actual transportation services and management systems, it will
generate value for the business, and that the railway business is greatly affected by social andeconomic conditions. In order to address various technological issues in a more integrated
and comprehensive manner, we have set issues that contribute to company measures froma medium to long-term perspective at the Komaki Research Center, established in 2002,
and systematically proceeded with technological development to ensure safe and reliabletransportation in the railway business.

Basic railway R&D cycle
Field-based veriﬁcation(From testing on main lines, etc.)(From rolling stocks in commercial services,above-ground facilities, test rolling stock, etc.)

Creating“Social Value” Corporate Data

Technological Development to
Support JR Central’s Growth

Highlight 5

Acquisition of large
amounts of ﬁeld data

Generating“Economic Value”

Highlight 5Understanding
phenomena
occurring in the ﬁeld

Next-generation track status monitoring system
Contact wire status monitoring system
ATC signal and track circuit status monitoring system(planed to start operation sequentially)

Major technological development results （FY）
Series N700 rolling stock
New movable
platform fence for
Tokaido Shinkansen

Establishmentof Komaki
Research Center New ATC

2002

Seismic
countermeasure
for concrete
viaducts

2005

2007

Derailment
prevention guard
and deviation
prevention stopper

2009

2012

ATC performance
improvements
High-speed heavy
simple catenary

2013

N700A rollingstock
The method for large-scale renovationof Shinkansen infrastructure

New type electroniclevel crossing controller

2014

New alarm contact wireabrasion detection system

2017

Limited express train
rolling stock using
hybrid method(testing vehicle)

2019

2020

2021〜

N700S rollingstock
Movable platform fenceof conventional lines

Development of technologies for the future, enhancement of technological capabilities, and human resource development
To proactively deepen railway technologies for the Shinkansen and conventionallines, JR Central pursues the development of technologies that support the futureof our company, and takes initiatives to enhance technical capabilities and develop
human resources. At the Komaki Research Center (Komaki City, Aichi Prefecture), byleveraging the development capability using actual-size testing equipment, which is themain distinctive feature of the research center, we have made various accomplishments
in technology development, including the development of new rolling stock, thedevelopment of countermeasures against derailment and deviation for the Tokaido
Shinkansen, the development of large-scale renovation methods for civil engineering
structures in relation to our Shinkansen trains, and the development of high-speed
heavy simple catenary for our Shinkansen trains. Furthermore, in light of the recent rapid
advances in information communications technology (ICT) and the progression of digitaltransformation, we have established a special unit within the Technology Research andDevelopment Department to further strengthen our efforts to formulate ICT strategies,
gather needs, and execute highly challenging development projects.
Since the opening of the Komaki Research Center, JR Central’s Railway Operations
Divisions and the Technology Research and Development Department have worked

closely together to respond to the technological challenges facing the Railway
Operations Divisions and conduct regular technical exchanges. In addition, employeesof the Railway Operations Divisions and the Technology Research and Development
Department work together to enhance the technological capabilities of the entire
company. We are also promoting efforts to develop engineers by, for example,
supporting research by researchers who have free ideas and take on new challenges.
Going forward, we will continue to monitor technological trends in other industries andfields, broaden our scope of
inspiration and application
capabilities, and actively
incorporate external
knowledge to enhance ourorganizational capabilities
so that we can address
the difficult technologicalchallenges we face in therailway business.
External view of Komaki Research Center

Appropriate management and protection of intellectual property
Theoreticalanalysisand simulation

Theoretical analysis

Examination using
testing equipment

Veriﬁcation using full scalelarge testing equipment

Key Themes of Technology Development
We are promoting technological development based on the following pillars, namely“Ensuring safe and reliable transportation,”“Promoting
operational reforms”and“Contributing to business operation of Chuo Shinkansen,”while actively utilizing ICT and other advanced technologies.

Ensuring safe and reliable transportation

Promoting operational reforms

In order to ensure even higher levels of safe and reliable transportation,
we are promoting the development of technologies for accurately detecting
natural disasters such as earthquakes and heavy rain, technologies for
reducing damage, and technologies for early recovery from disasters.

To accurately respond to changes in society and customer
needs, and to drastically reduce capital investment andbusiness operation costs, we are promoting the streamliningof rolling stock and ground equipment, cost reductions in
the maintenance and renewal of facilities, and technologicaldevelopment that will aid the sophistication of operations
for the purpose of increasing efficiency and saving labor by
utilizing ICT and other advanced technologies.

Contributing to business operation of Chuo Shinkansen
We are promoting technological development that will lead to cost
reductions in construction work of the Chuo Shinkansen and effective
maintenance and business operation after the beginning of the service, as
well as advancing the depth of core technologies, such as design, analysis
and simulation, common to all three generations of railways.

In order to sustain and develop our company into the future, we are also working to broaden the scope of our company’s technological fields to a wider rangeof areas. We will strive to develop new value and future visions that we want to create, and take on the challenge of research and development to realize them.

39

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

In engaging in technological development, we recognize that it
is important to properly manage intellectual property in order toadvance our business activities. Based on this recognition, for our
intellectual property obtained through technological development

and other activities that we deem appropriate to establish as a legal
right, we strive to protect our right by acquiring intellectual property
rights, including patent rights, utility model rights, and design rights, asnecessary not only in Japan but also in foreign countries.

Major technological developments: Efficiency improvement, labor saving, and cost reduction in maintenance by utilizing data
At JR Central, we are developing technologies to improve operational
efficiency, reduce labor, and reduce costs, such as those for mechanizing
and systemizing maintenance operations, on the basic premise that safety
is ensured. Specifically, we are working to develop technologies basedon the three pillars of introduction of new technologies, data analysis andExample oftechnologicaldevelopment

evaluation, and active maintenance. In recent years, we have been using
new technologies such as sensing, image recognition, information andcommunications, mass data analysis, and robotics, as well as advancing
technology development that leads to equipment integration, extended life,
and optimization of standards, which we will utilize in our operational reforms.

Development of technology for measuring groundequipment using N700S commercial rolling stock

On the Tokaido Shinkansen, tracks and electrical equipment are measured about
once every 10 days using the Dr. Yellow, a dedicated measurement train. We havealso developed technology to reduce the size and weight of measuring instrumentsthat can be installed in the N700S, the commercial rolling stock of the latest model,
in order to grasp the status of facilities more frequently to perform maintenancework in a timely manner.
As for measurements of the state of tracks, we developed the next-generation
track status monitoring system with improved accuracy by using our own calculation
program. This will make it possible to monitor the status of tracks more frequently
and more accurately by measuring the status of tracks while trains are running andsending data to the General Control Center, etc. in real time.
In measuring the condition of overhead wires and signaling equipment, wedeveloped the contact wire status monitoring system and the ATC signal and track
circuit status monitoring system, which are smaller and lighter. This will enable
the measurement of contact wire conditions (abrasion amount, height, etc.) on
commercial trains, eliminating the need for periodical measurements of the entire
lines that workers performed once a month at night to achieve significant laborsaving. Furthermore, this will enable frequent checking of ATC signals and track

circuit integrity, achieving early detection of signs of abnormality and prompt
implementation of necessary measures and maintenance for signal equipment andtrack circuits.
These systems will be put into operation sequentially from FY2021 onward, after
the accuracy and durability of the measurements are confirmed through a series ofrunning tests using the N700S verification testing trainset.
ATC signal and track circuit
status monitoring system
Car No. 1

Car No. 4

Contact wire statusmonitoring system
Car No. 12

Measuring instrument for
distance and height
difference between
left and right rails
Next-generation track monitoring system
Verticalmeasuring
instrument

Car No. 16

ATC signal andtrack circuit
status monitoring
systemMeasurement of ground equipment by N700S

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

40

Highlight 6Highlight 7

Reinforcement of Earning Power

TCFD Recommendations－Endorsement and Our Initiatives－

Although we are still experiencing a very tough business environment due to self-restraint on
going out and movement amid the COVID-19 pandemic, we will continue to fulfill our role as atransportation service provider while maintaining measures against the spread of infections toensure that our customers can use our railway service safely and securely. In addition, we areworking to reinforce our earning power in order for the JR Central Group to recover from thesignificant damage incurred amid the pandemic, and continue to fulfill its social mission.

JR Central expressed its endorsement of the TCFD recommendations * in May 2021.
We see global environmental preservation as a key management theme. Therefore, we have been constantly
working to further improve the environmental superiority of railways, which is more energy efficient and hasless environmental impact than other modes of transportation, by promoting the introduction of energy-saving
rolling stock and equipment. Furthermore, we are determined to make efforts to further reduce CO 2 emissions,starting in FY2021, in line with the“carbon-neutrality by 2050”policy formulated by the Japanese government.
In addition to these efforts, we are working to analyze the risks and the opportunities related to climatechange based on the TCFD recommendations, so that we can utilize them for stable business operations overthe long term and help the realization of a sustainable society.

－Reconstructing Positive Cycle of“ESG Management”－* TCFD stands for the Task Force on Climate-related Financial Disclosures, the task force established by the Financial Stability Board (FSB) in order to consider issues concerning climate-related disclosures,etc. Its final report establishes the recommendation that companies, etc. understand and disclose information about the risks and opportunities that climate change presents to their businesses.

Initiatives Amid COVID-19 Pandemic
For the Tokaido Shinkansen, we are working to maintain sufficienttransportation capacity by taking into consideration the passenger
usage status and taking advantage of the“12 Nozomi Timetable,”taking
counter-infection measures, including ventilation of train cars, regularsterilization of parts of stations and trains that customers are likely totouch, and wearing of face masks by staff servicing customers, andproviding easy-to-understand guidance for customers, using pictogramsand video in digital signage, etc. at stations. For conventional lines, weare taking counter-infection measures to ensure customers can use theservice without worry and providing sufficient transportation capacity,

accounting for the passenger usage status.
In addition, we are working to stimulate demand by proposing“Zurashi
Travel”(shifting travel), a new way of traveling whereby the times,
locations, means of travel and action at destinations are shifted from the“standard,”while taking care to prevent the spread of COVID-19.

Provideample
seating

Ventilatecars in
6-8 minutes

Disinfect and clean
stations and trains,etc.

Prevent
dropletinfection

Reserveseats ofchoiceReinforcement of Earning PowerThe situation where contact between people is significantly restricted
due to the spread of COVID-19 is expected to run its course as people
are vaccinated and treatment drugs are developed. However, we think thechanges that have emerged during the pandemic, including greater use of
telework, web conferencing, etc. and a major shift of travel reservations toonline channels, will remain even after the pandemic runs its course, as longas they are reasonable. Although the pandemic had a role in acceleratingthese changes, JR Central will face these changes squarely and, in orderto recover from the damage incurred amid the pandemic through its own
effort and continue to powerfully fulfill its social mission into the future, work
to reinforce our earning power by“Reform of Business Operations”andboosting revenues to reconstruct the positive cycle of“ESG Management.”

No social restrictions
on contact with people

Positive cycle

COVID-19
shock

Spread of new life
& work styles

・Web conferencing, etc.
・Digitization
・Spread of e-commerceEﬃciently
Increased proﬁts
provide safe and (and company
good services
growth)Lifting of social restrictions on
contact with people(return to norm, but some changes remaining)

Reinforce our earning power
to restart the positive cycle

Contribution to society

investing in equipment required
for this to build an optimum
operational structure, we aim
to reduce about 80 billion yen,or 10% of the non-consolidated
regular expenses related to
Shinkansen and conventionallines, and reduce the costs ofcapital investments over the
next 10 to 15 years.

Utilization of image recognition
technology by AI
Vehicle detection sensor
Speed detection sensor

3D sensor

Efforts to expand revenues
We are working to expand revenues from fresh perspectives and using
flexible ideas by identifying and analyzing customer trends and needs
more carefully than before. For example, we are undertaking an initiative
to enhance the working environment on the Tokaido Shinkansen to
support the“working in any location”style, which attracted attention amid
the pandemic. In addition, we are preparing to launch“EX-MaaS (tentativename)”by the summer of 2023, which will allow users to seamlessly makereservations and payments for their entire trip, including Shinkansen travel,
hotels, transportation for the journey, and sightseeing, through the EX

41

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

At JR Central, the Corporate Planning Division and the General Technology Divisionthat oversee management and technology sectors respectively, play a central rolein studying the impact of climate change on our business, as well as formulating andpromoting environmental measures, in cooperation with related departments within
the company. In doing so, the President and Representative Director along with anyother related directors reflect the results of the study on climate change in their
management, while overseeing the efforts to address climate-related issues. In addition,
important matters are discussed and reported at the Board of Directors meetings, etc.

Service members-only website.
Furthermore, our Group companies are working to take advantage
of synergies with railways to increase profitability, and at the same timestrengthen revenue sources that do not rely on railways. In July 2021, we
opened JR Nagoya Takashimaya Watch Maison, one of the largest luxury
watch sections in Japan, in the Dai Nagoya Building.
*S ee page 30 for the Tokaido Shinkansen initiative to improve the environment
to support new ways of working, page 29 for“EX-MaaS”(tentative name),and page 38 for profitability improvement of Group affiliates.

President
Corporate Planning Division

Cooperation

Conventional Lines
Shinkansen
Operations Division Operations Division

General Technology Division

Chuo Shinkansen
Promotion Division

Business
Promotion Division

2. Strategies
The main climate change-related risks and opportunities that
we are aware of are as follows:

In order to manage and mitigate risks related to the transitioning to a lowercarbon society, we are working to reduce indirect emissions from electricity use,which account for approximately 95% of the 1.22 million tons of our CO2 emissions(in FY2020). Examples of our efforts include the introduction of energy-saving
rolling stocks, such as the N700S for the Shinkansen, as well as the consideration ofrenewable energy utilization. (Refer to page 63 for our specific efforts to save energy.)
With regard to direct emissions from the use of fuels, etc., which account for
the remaining 5% of our emissions, we are promoting technological development
and research for the electrification of trains, etc., and are also closely monitoring
technological trends in the utilization of biofuels, etc.
As for physical risks, we believe that the impact of natural disasters, such as
windstorms and floods, are significant for the railway business. For this reason,
we have been proactively working on, since our establishment, to strengthen ourfacilities to cope with natural disasters in general, not just those caused by climatechange, based on the recognition that ensuring safe and reliable transportation
is a top priority. (Refer to page 23 for our specific efforts to cope with natural

disasters.) We are also working on the construction of the Chuo Shinkansen
using the Superconducting Maglev System as an essential measure to prepare
for large-scale disasters.
On the other hand, we see the recent rise in environmental awarenesstoward carbon-neutrality as an opportunity to further promote the use of train
service.Railways are essentially a means of transportation that possess highenvironmental superiority. For example, the CO2 emission rate per seat of theTokaido Shinkansen (Series N700“Nozomi”) when traveling between Tokyo andOsaka is approximately 1/12th of that of an airplane (B777-200). We have beenworking to ensure safe and reliable transportation, to improve transport services,and to promote the use of railways with high environmental superiority, under therealization that such measures not only increase transportation revenues, but also
help reduce CO2 emissions and preserve the global environment.
We will work to deepen our assessment and analysis of the impact of climaterelated risks and opportunities on our business, while utilizing the scenario
analysis recommended by TCFD,
and making use of the obtained Shinkansen*1knowledge to operate ourbusiness in a sustainable manner.
2 Approx.
of an airplane
Furthermore, we will contribute Series N700
“Nozomi”
to the reduction of CO2 emissions
and the preservation of the global
environment through a longterm and stable operation of the Airplanerailways, an infrastructure system
kg-CO2 *2with high environmental superiority B777-200
compared to other modes oftransportation, and by realizing CO2 Emissions per Seat
our Management Philosophy to *1 Calculation based on running performanceof Series N700 Nozomi (Tokyo - Shin-Osaka)“Contribute to the development
conducted by JR Central.
of Japan’s main transportation *2 Calculated by JR Central using ANA's“Annual
Report 2011”B777-200 (Haneda - Itami/Kansai
artery and social infrastructure.”

3. Risk management

4. Goals and indicators

At JR Central, the Corporate Planning Division and the General Technology
Division, in close cooperation with related departments, assess and analyze
the impact of climate change-related risks on its business, and formulate andpromote countermeasures.
Since the Corporate Planning Division and the General Technology Division
oversee the management and the technology sectors, respectively, having
these divisions play a central role in risk management enables the company toincorporate climate-related risks into the decision-making process regarding
all of its important initiatives. In addition, important matters are discussed andreported at the Board of Directors meetings, etc.

We see global environmental preservation as a key management theme.
Therefore, we have been constantly working to further improve the environmental
superiority of railways, which is more energy efficient and has less environmental
impact than other modes of transportation, by promoting the introduction ofenergy-saving rolling stock and equipment. Furthermore, we are determined tomake efforts to further reduce CO2 emissions, starting in FY2021, in line with the“carbon-neutrality by 2050”policy formulated by the Japanese government.
We will continue to study and promote specific efforts to reduce CO2
emissions while keeping a close eye on government policies and technologicaltrends.

Main climate change-related risks and opportunities

With Covid

Promoting“Reform of Business Operations”
A core part of efforts to reinforce our earning power is“Reformof Business Operations”. This effort spans across the boundaries ofdepartments, lines of operation, and group companies. By combining
all available resources of the group, we will pursue ways of workthat are thoroughly efficient. We will put ICT to full use, including for
expanding status-monitoring functions to reduce the workload forinspection of cars and ground facilities, extending periods of replacing
and inspecting cars to reduce renewal investments and workload forinspections, and using the AI image recognition technology to reduce
the workload for facility inspections. By developing technologies and

1. Governance

Increased costs that arise from the introduction and enhancement ofcarbon pricing (carbon tax, etc.)
Increased costs to respond to stricter regulations on CO2 and otheremissions
Increased costs to procure energy and materials
Increased suspension of service from more severe and more frequentwind and flood damage (decreased transportation revenue)
Increased damage to railway facilities from more severe and more
Physicalfrequent wind and flood damage
Adverse impact on material procurement, etc. due to supply chainrisks
disruption
Decreased revenue triggered by customers refraining from travelingdue to extreme weather conditions
Customers who value environmental superiority shifting from other modes
Opportunitiesof transportation to rail
Transition
risks

4.2kg-CO 1/12

50

Airport) for reference.

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

42

Business Strategy

Generating“Economic Value”

Highlight

Creating“Social Value” Corporate Data

Financial Data

Generating“Economic Value”

Financial Data
*１ Operating revenues of each segment include the amount of sales to other reportable segments as well as the amount of sales to external customers.
*２ Numbers for FY2019 and FY2020 have decreased because of the impacts of the COVID-19 pandemic.

Operating Revenues and Operating Income (Loss) of each Segment
Transportation

Merchandise and Other(Operating Revenues)（Billion yen）
-400

0

’21.3

400

800

1,200

1,431.2’20.3

1,461.3
664.8
1,424.0623.0
1,380.4
593.1

’19.3

617.6

’19.3
’18.3
’17.3
0

200

-150

-100

-50

’21.3

’20.3

-200

(Operating Revenues)（Billion yen）

1,600

533.0

-183.3

400

600

800

Real Estate

0

50

100

150

-12.2

200

174.7

250

’18.3

8.2

’17.3
-10

-5

0

5

10

(Operating Income (Loss))

15

20

’20.3

264.9

’19.3

255.3

’18.3

25

Railways Business
Affiliated Businesses
Operating Expenses
Railways Business
Affiliated Businesses
Operating Income (Loss)
Ordinary Income (Loss)
Income (Loss) before Income Taxes
Net Income (Loss)

Operating Expenses
Operating Income (Loss)
Ordinary Income (Loss)
Income (Loss) before Income Taxes
Net Income (Loss) Attributable to Owners of the Parent

Net Income/Operating Revenues
Operating Income/Total Assets
Equity Ratio
Earnings per ShareDividend per Share

60

13.0

’17.3
30

0

5

10

69.1

80

15

0

’21.3

79.9
19.0
82.1
20.2
78.0
18.5
68.6
18.1
20

(Operating Revenues)（Billion yen）

100

75

150

225

1.3

’20.3

16.1

’18.3

13.2

’17.3

5

10

15

(Operating Income (Loss))

261.0
261.6

253.9

16
0

300

272.2

13.5

’19.3

25

251.6

20

(Operating Income (Loss))

FY2017.3

FY2018.3

FY2019.3

FY2020.3

FY2021.3

FY2017.3

FY2018.3

FY2019.3

FY2020.3

FY2021.3（Billion yen）

（Billion yen）

（Billion yen）

（Billion yen）

（Billion yen）

（Billion yen）

（Billion yen）

（Billion yen）

（Billion yen）

（Billion yen）

1,380.7
1,371.9
8.8
784.9
779.9
4.9
595.8
541.2
541.1
381.8

1,427.4
1,414.8
12.5
802.1
793.5
8.6
625.2
547.6
549.5
384.4

1,464.8
1,452.0
12.8
797.1
788.7
8.3
667.7
590.1
590.1
414.0

1,436.9
1,422.2
14.7
813.9
805.4
8.4
623.0
540.0
539.9
378.8

541.7
527.4
14.3
717.7
709.4
8.2
-175.9-256.6-277.8-202.3

2,191.5

3,804.7

3,630.6

3,382.6

3,023.8

1,472.7

2,840.9

2,670.5

2,435.0

2,076.1

4,861.1
4,488.4
32.7
339.9
7,052.6555.3
3,770.5
1,500.0
4,325.9
3,395.4
2,726.7
7,052.6

5,103.9
4,544.7
55.6
503.5
8,908.6602.8
5,221.1
3,000.0
5,823.9
4,856.2
3,084.7
8,908.6

5,665.0
4,706.6
77.5
880.8
9,295.7
650.2
5,137.4
3,000.0
5,787.6
4,851.1
3,508.0
9,295.7

6,220.4
4,925.1
91.1
1,204.1
9,603.1
625.6
5,105.3
3,000.0
5,731.0
4,846.0
3,872.1
9,603.1

6,576.5
5,176.7
110.4
1,289.3
9,600.3
824.0
5,089.6
3,000.0
5,913.7
4,932.6
3,686.6
9,600.3

Current assets
 f these assets, the Chuo Shinkansen constructionO
fund management trust
Fixed assets
Tangible fixed assets
Intangible fixed assets
Investments and other assets
Total assets
Current liabilities
Fixed liabilities
Out of these liabilities, long-term debt for the Chuo Shinkansen
Total liabilities
Out of these liabilities, long-term debt and payables

FY2017.3

FY2018.3

FY2019.3

FY2020.3

FY2021.3（Billion yen）

（Billion yen）

（Billion yen）

（Billion yen）

（Billion yen）

1,756.9
1,137.4
619.5
563.9
560.0
392.9

1,822.0
1,160.0
662.0
583.5
561.8
395.5

1,878.1
1,168.3
709.7
632.6
630.2
438.7

1,844.6
1,188.4
656.1
574.2
573.4
397.8

823.5
1,008.2-184.7-262.0-268.5-201.5

Financial Statement Ratios (Consolidated)

Return on Equity

40

Comparative Balance Sheet (Consolidated)

Comparative Income Statement (Consolidated)

Operating Revenues

20(Operating Income (Loss))

Comparative Income Statement (Non-Consolidated)

Operating Revenues

0

263.2

237.0

7.5
-15

（Operating Revenues）（Billion yen）

300

’21.3

7.4
9.6

Other

Total net assets
Total liabilities and net assets

Comparative Cash Flow Statement (Consolidated)
FY2019.3

FY2020.3

FY2021.3（Billion yen）

（Billion yen）

（Billion yen）

580.5

609.5

600.3

595.2

- 169.3

Cash flows from investing activities-1,909.5-1,676.4-597.5- 552.4- 134.7

Payments for purchases of tangible/intangible fixed assets, etc.

-330.1-306.9-397.8- 459.0- 493.5-1,472.7-1,368.1

170.3

235.5

358.8

-106.7-1.3-370.0- 328.9

1,425.1
1,500.0
96.2
318.3
414.5

1,434.7
1,500.0
367.8
414.5
782.4

-33.6

- 32.9

-

9.7
751.6
761.3

262.6
- 41.4761.3
719.9

FY2017.3

FY2018.3

FY2019.3

FY2020.3

FY2021.3

15.7%
22.4%
10.1%
38.2%
¥1,996
¥135

13.8%
21.7%
8.3%
34.3%
¥2,015
¥140

13.4%
23.4%
7.8%
37.3%
¥2,238
¥145

10.9%
21.6%
6.9%
39.9%
¥2,027¥150-5.4 %

Proceeds and expenditures from fund management (net amount)

-1.9%
37.9%
-¥1,025¥130FY2018.3（Billion yen）

Cash flows from operating activitiesP roceeds/expenditures concerning the Chuo Shinkansen
construction fund management trust (net amount)-24.5 %FY2017.3（Billion yen）

Cash flows from financing activities
Proceeds from long-term debt for the Chuo Shinkansen
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

-30.8

782.4
751.6

* Some numbers for FY2020.3 and FY2021.3 have been affected by the COVID-19 pandemic.

43

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

44

Business Strategy

Generating“Economic Value”

Highlight

Creating“Social Value” Corporate Data

Financial Data

Financial Data

Transportation and Financial Information
Transportation revenues

Total（Billion yen）
1,300
1,200

1,211.9
1,194.5

1,100

1,253.2

1,291.8

1,235.5

1,273.6（Billion yen）
120

1,261.3

17.6

17.3

20

Commuter Passes

18.4

18.1

417.3

80

405.2

60

12.0

105.1

104.8

104.2

69.1

69.9

69.5

68.8

’19.3

’20.3

35.1

35.4

35.2

30.0

’17.3

’18.3

’19.3

Passenger kilometers

Total（Million passenger-kilometers）
50,00045,00052,90954,75656,27754,00951,45953,27754,75852,467

10,00015,000

1,450

1,479

1,519

1,542

17,196
1,004

’17.3

’18.3

’19.3

’20.3

’21.3

1,000
0

9,359

9,456

9,459

9,418

5,614

5,656

5,676

5,739

6,000

3,745

3,800

3,783

3,679

’17.3

’18.3

’19.3

’20.3

4,000
2,000

（Million passengers）
180
165

Total

174

170

（Million
passengers）
400

168

160

60

1,000

4,759

0

150

155

159

152

15

15

15

16

50
20

300

64
53

200

0

’17.3

’18.3

’19.3

’20.3

306

265

269

271

274

140

142

143

139

232

’17.3

’18.3

’19.3

’20.3

’21.3

74

* Numbers for FY2019 and FY2020 have decreased because of the impacts of the COVID-19 pandemic.

Shifts in Capital Investment Amounts (Non-consolidated)

Capital Investment Amounts (Excluding the Chuo Shinkansen)

Chuo Shinkansen（Billion yen）
700

722.0

650
600

533.5

550

499.6

500

448.8

450

384.5

400
350
300

277.4 265.2

250
200
150

120.3

100

159.5 174.3

197.8 211.1

166.9 164.8 171.3 172.6 159.2 156.8 151.5 157.6 161.5 169.8 155.5

209.8

330.8

288.8 298.4 301.6
244.8

229.0

257.2 259.1

128.5 128.3

50 50.1
0’88.3 ’89.3 ’90.3 ’91.3 ’92.3 ’93.3 ’94.3 ’95.3 ’96.3 ’97.3 ’98.3 ’99.3 ’00.3 ’01.3 ’02.3 ’03.3 ’04.3 ’05.3 ’06.3 ’07.3 ’08.3 ’09.3 ’10.3 ’11.3 ’12.3 ’13.3 ’14.3 ’15.3 ’16.3 ’17.3 ’18.3 ’19.3 ’20.3’21.3* The planned ﬁgures are as of the publication of March 2021.

Dividend Per ShareDividend Per Share

100
50

0

55

’22.3

（plan）Net Income (Loss) (Non-Consolidated)（Yen / Year ）
150

75

65

85

90

90

90

95

105

115

120

125

135

140

145

150

600

50

50

50

50

50

12.0

40.0

51.0

41.0

43.0

66.0

414.0
328.0 381.0 384.0
378.0
187.0 240.0 260.0
153.0
130.0
121.0
123.0
120.0
116.0
90.0
88.0

’99.3

’00.3

’01.3

’02.3

’03.3

’04.3

’05.3

’07.3

’08.3

’09.3

’10.3

’11.3

’12.3

’13.3

130

（Billion yen）

50

’06.3

’14.3

4,801.0

4,856.2 4,851.1 4,846.0

4,125.5

3,943.4

6.01 6.08

6.53 6.39
6.19

5.90 5.84

5.43

’15.3

’16.3

’17.3

’18.3

’19.3

10.0

8.0

3,665.8

6.35

4,932.6

4,560.8

5.21 5.16 5.08 5.01 4.91

3,455.7 3,415.6

4.75 4.62 4.51
4.30

3,260.1 3,177.6

3,369.0
3,117.0 3,001.5

2,829.1

6.0

2,614.9
2,351.7

2,136.3
4.08 3.91
3.71 3.54
1,915.6
3.36 3.24 3.14 3.13
3.10 3.12

4.0

1.66 1.65 1.64 1.60

2.00

■ Long-Term Loan Using the Fiscal Investment and Loan Program (Long-term debt for the Chuo Shinkansen)

413

0

’21.3

4,922.2

Commuter Passes

100

11

10

5,045.2’21.3

Ordinary Tickets

414

410

405

Average Interest Rate (Right axis)’88.3 ’89.3 ’90.3 ’91.3 ’92.3 ’93.3 ’94.3 ’95.3 ’96.3 ’97.3 ’98.3 ’99.3 ’00.3 ’01.3 ’02.3 ’03.3 ’04.3 ’05.3 ’06.3 ’07.3 ’08.3 ’09.3 ’10.3 ’11.3 ’12.3 ’13.3 ’14.3 ’15.3 ’16.3 ’17.3 ’18.3 ’19.3 ’20.3 ’21.3

Conventional Lines

Shinkansen

Long-Term Accounts Payable - Railway Facilities

Long-term debt for the Chuo Shinkansen

2.00

6,411

1,651

0

Passenger Ridership

140

3,000

Commuter Passes

8,000

18,1995,164.3

2,000（Million passenger-kilometers）

20,000

2,000

6.81

’21.3

Ordinary Tickets

5,346.3 5.278.5

4,289.3

Conventional Lines

Shinkansen
55,000’20.3

5,456.2 5,422.3 5,392.0

4,000

28.7

’21.3

Long-Term Debt

（％）

5,000

58.8

0

’18.3

Corporate Bonds

Latent Liabilities Born by the Shinkansen Leasing System

12.0

5,269.3 5,223.0 5,232.7 5,195.6

20

0Inherited Liabilities(Non-Consolidated)（Billion yen）
6,000

103.9

34.8

40

10

’17.3

Shifts in Total Long-Term Debt and Payables

100

1,242.9500400

Ordinary Tickets

Conventional Lines

Shinkansen

’20.3

400
200
0
△202.0 -200

In November 2016, JR Central applied for a long-term loanusing the Fiscal Investment and Loan Program (hereinafter,“FILP Loan”) for 3 trillion yen to Japan Railway Construction,
Transport and Technology Agency (hereinafter, “JRTT”),
to promote the construction of the Chuo Shinkansen. We
proceeded to borrow funds in five lots sequentially thereafterand secured financing for a planned total of 3 trillion yen in July2017.
The advantage we gain from the FILP loan lies in mitigating
three management risks, which are interest-rate increase risk,
financing risk, and redemption risk.
Specifically, since we can secure long-term, fixed- and lowinterest rate funds, we are able to mitigate the risk of interest
rates rising in the future and fix interest payments at a low level
for a long period of time.
In addition, we expect that the construction costs between
Shinagawa and Nagoya will be 7.04 trillion yen and by securing
3 trillion yen out of the amount expected to require financing
through the FILP Loan, we were able to reduce our financing
risk.
Furthermore, since the FILP Loan matures after theconstruction period of the Chuo Shinkansen, during which timea large amount of funds is needed, we are able to build up
cash from operating activities to provide for the redemption of
liabilities, thereby also mitigating redemption risk.
In the material submitted to the Transport Policy Councilof the Ministry of Land, Infrastructure, Transport and Tourism
in 2010, we indicated in our outlook that a period of eight
years after live operation in Nagoya will be set to recovermanagement strength. After reducing long-term debt by acertain amount, construction on the route between Nagoya andOsaka will be initiated while ensuring that sound management
and stable dividends are strictly maintained, and ensuring thatthe balance of long-term debt does not exceed 5 trillion yen
throughout the project period until live operation of the entire
line. By utilizing this FILP Loan, we are able to reduce this period
for restoring management strength and promote construction
efforts in an aim to move up live operation of the entire line by
up to eight years.
The Chuo Shinkansen Project is pursued based on thepremise that JR Central, as a private corporation, covers thefull cost of construction, while securing management autonomy
in investment and seeing that sound management and stabledividends are strictly maintained until the construction work is
fully completed. The FILP Loan poses no change to this premise.
As for the terms of the FILP Loan, the weighted average rate
is 0.86%, which is fixed throughout the entire period, and theannual interest expenses are 25.7 billion yen. The repayment
method is the equal principal payment over a period of roughly
10 years after deferring the payment of the principal for about
30 years.
The funds procured from the FILP Loan will be applied only
for the cost of construction of the Chuo Shinkansen. We ensure
the transparency of funds by setting a trust aimed at segmentbased management.
Illustrated plan of moving up live operation
Existing
plan

Construction between
Shinagawa and Nagoya

Management strength
restoration period（8years）

Move up
operation

Construction between
Shinagawa and Nagoya

Construction between
Nagoya and Osaka

Construction between
Nagoya and Osaka

Live operationin Osaka

Live operationin Osaka

Equal principal
redemption overMoving up live operation by up to 8 year a period of about
FILP Loan

Deferred ﬁxed- / low-interest for about 30 years

10 years’21.3*1 With respect to the amount of dividend per share for FY2012, given the adoption of the unit share system of splitting 1 share of common stock into 100 shares and setting one (1) unit of shares as 100 shareseﬀective October 1, 2012, the amount was calculated on assumption that the stock split was conducted at the beginning of the period.
*2 The amount of dividend per share for FY2011 and prior is shown by dividing the amount by 100 for the ease of comparison with the amount for FY2012 and thereafter.
*3 Net income (loss) for FY2019 and FY2020 have decreased because of the impacts of the COVID-19 pandemic.

45

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

46

SocialBusiness Strategy

Highlight

Generating“Economic Value”

Creating“Social Value” Corporate Data
SocialCreating“Social Value”－Social－

Building Safe and Resilient Infrastructure

Shinkansen Second General Control Center
We have the Shinkansen Second General Control Center in Osaka, which isequipped with the same functions as the Shinkansen General Control Center inTokyo so that it can serve as an alternative control center should the General
Control Center in Tokyo become non-operational due to a disaster. Thus, wehave strengthened our crisis management in preparation for emergencies.

Implementation of countermeasures against collapsing of station ceilings
To improve safety at stations, starting in FY2016, we are implementing
earthquake resistance measures on suspended ceilings (a type of ceiling with astructure that hangs from the building frame) at stations that are used by a large
number of customers (all 17 stations on the Shinkansen lines, and 30 stations
on conventional lines that are used by at least 10,000 customers per day).

Constant efforts for safety measures
Ensuring safe and reliable transportation is a prerequisite for all
business development and marks the foundation of the railway
business; therefore, we have consistently given top priority to thisissue. Specifically, with regard to the Tokaido Shinkansen, the maintransportation artery linking Tokyo, Nagoya and Osaka, which are thecenters of society and culture and the main concentrations of populationand economic power, and the conventional lines in the Tokai Region,
centered on Nagoya and Shizuoka, which play the role of a means oftransportation for daily life, including commuting to work and school,and serve as social infrastructure, we are building a safe and resilient
infrastructure by promoting safety measures in all aspects of people,
technology and equipment, to support Japan's economic and social
activities in a sustainable manner.
In terms of equipment, or physical measures, we have made a safetyrelated investment of a total of more than 4.0 trillion yen over the 34
years since our establishment until FY2020. In addition, in the Fiscal
2021 Plan, we plan to invest 234 billion yen, or about 80% of the total
capital investment excluding the Chuo Shinkansen (non-consolidated),in safety. As a specific initiative, we have been carrying out largescale renovation work on civil engineering structures of the Tokaido
Shinkansen since FY2013 to maintain and improve their integrity, since
it will be inevitable to replace many of the facilities due to aging in the
future. Furthermore, we have been implementing measures against
earthquakes and other natural disasters, which were available at thetime, with certainty based on past damage and the latest knowledge.
In terms of non-physical measures, we have been tirelessly building

systems to protect safety, mainly by establishing rules and regulations.
Furthermore, to put these systems into practice, we have beenpromoting human resource development focusing on discipline, etc. andrepeatedly conducting practical training.
* Refer to pages 21 to 23 for details of large-scale renovation, and measuresagainst earthquakes and natural disasters.

Trends in safety-related investment(Billion yen)

234.0

240
220

205.0

200
180

173.1 173.1

164.7

160

186.2
167.3 170.1

142.9 136.9 143.5

138.5

140

180.8

100
80

Cyber security measures

60
40

39.1

20
0

FY1987

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021(plan)

Trends in measures against disasters (extracts)
2000 ‒

2005 ‒

2010 ‒

2015 ‒

2020 ‒(Year)

Jan. 1995 Great Hanshin-Awaji Earthquake
1996 ‒ Implementation of measures to prevent prolonged interruption of the train service (reinforcement of elevated bridge pillars, etc.)
1996 ‒ Establishment of Shinkansen Second General Control Center2010 ‒ Reconstruction and reinforcement (Hamamatsu Workshop, Nagoya Workshop, etc.)

EarthquakeresistancemeasuresOct. 2004 Mid Niigata Prefecture Earthquake
2009 ‒ Implementation of derailment and deviation countermeasures
Mar. 2011 Great East Japan Earthquake2016 ‒ Implementation of countermeasures against falling off of station ceilings
2021 ‒ Seismic reinforcement of platform sheds

Rain andflooding
countermeasures

Measures against
rockslides and avalanchesSnowprotection

47

Oct. 2019 Typhoon 19 (Hagibis) (Burst of banks of the Chikuma River)Sep. 2000 Tokai Heavy Rain
2000 ‒ Protection of the slopes of embankments with concreteWind
protection

2020 ‒ Implementation of flooding countermeasures for Shinkansen

Dec. 2005 Derailment accident on JR East Uetsu Main Line

Oct. 2013 Typhoon 26 (Wipha)2005 ‒ Addition and relocation of anemometers2013 ‒ Relocation of anemometers

Installation of falling rock detectors and falling rock protection equipment
Installation of snow accretion monitoring ITVs 2003 ‒ Installation of on-vehicle and ground cameras

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

Protection of the slopes of embankments with concrete
In FY2000, we started
protecting the slopes ofembankments, which accountfor a substantial portionof Tokaido Shinkansen
structures, with concrete,
in addition to conventional
measures in order to improvedisaster prevention strength.
As a result of these measures,
we raised the regulation value
for suspending operation
due to rainfall from 50 mm
to 60 mm per hour.

120(At the time of establishment)…1995 ‒

Seismic reinforcement of platform sheds
Starting in FY2021 we are implementing seismic reinforcementof platform sheds (16 stations on the Shinkansen lines excluding
Shinagawa, and 20 stations on conventional lines that are usedby at least 10,000 customers per day excluding stations requiring
no reinforcement and with sheds constructed with rails).

2012 ‒ Installation of snowfall information system

2020 ‒ Trial of new sprinkler system

In terms of systems, we are also working to build a safe andresilient infrastructure. We are taking necessary measures,
including achieving the redundancy of facilities and securing
backups, to ensure that the provision of services to customers
and the execution of internal operations will not be disrupted
due to earthquakes and other natural disasters and system
failures. For example, the Shinkansen Operational Control
System has an alternative center in Osaka in case the systemcenter in Tokyo is damaged, and the Express Reservation
System comprises multiple computers to ensure sufficient

processing capacity even if one computer fails. In addition, we
regularly conduct drills to prepare for natural disasters andsystem failures.
Furthermore, we have taken all possible measures to ensure
system security against cyber attacks, which have been
increasing in recent years. For example, for systems that require
absolute safety, such as those related to train operation,
we have established an independent system structure thateliminates any contact with the outside world, thereby avoiding
external attacks.

The Chuo Shinkansen Project as a drastic measure
In addition to the above-described measures, we are working on the Chuo
Shinkansen Project in order to continue to fulfill our mission of maintaining anddeveloping Japan’s main transportation artery while giving top priority to safe andreliable transportation. The Tokaido Shinkansen has been in operation for more thanhalf a century, and while we have been carrying out large-scale renovation, we need
to be prepared for the risk of suspension of services due to major facility replacement
caused by future aging. Furthermore, although we have taken measures for earthquake
resistance for the Tokaido Shinkansen, we also need to be prepared for the risk oflong-term disruption to Japan’s main transportation artery due to a possible heavy
earthquake. Therefore, as a drastic measure to prepare for these future risks, we willachieve the redundancy of Japan’s main transportation artery by completing the Chuo
Shinkansen, which will act as an alternative to the Tokaido Shinkansen, as quickly as
possible, under the assumption that we bear the cost of its construction, utilizing theSuperconducting Maglev System that we have developed. By doing so, we will reducemanagement risks, stabilize our operations, and continue to forcefully fulfill our missions.

Distribution map of the estimated biggest seismic intensityof the Nankai Trough Large Earthquake
Chuo Shinkansen

NagoyaShin-Osaka

Tokaido Shinkansen

Shinagawa

Seismic
intensity class
7
6 upper
6 lower
5 upper
5 lower4

Source: Prepared by JR Central based on“Countermeasure against Nankai
Trough Large Earthquake (Final Report)”(May 2013)

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

48

SocialSocialCreating“Social Value”－Social－

tourist information facility to coincide with the station’s improvements. JR
Central has decided to create a new space that will be required for thecity’s plan in order to turn the surrounding area of the station into a hub
and thereby contribute to the local community. As a railway company
that contributes tolocal communities anddevelops together withthe communities, we willcontinue to enhance theconvenience of stations
and other facilities incooperation with the local
municipalities concerned.
Image of Kariya Station

Initiatives to improve the level of accessibility

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

Creating“Social Value” Corporate Data
SocialInitiatives to vitalize local communities

Enhanced convenience of stations, etc.

49

Generating“Economic Value”

Cooperation with Local Communities

Improving the convenience of facilities (barrier-free, etc.)

Based on relevant laws, such as the so-called Barrier-Free Act,
JR Central cooperates with the central government and local
municipalities to jointly establish and improve facilities to enable
all passengers, including persons with disabilities and elderly
passengers, to use our services safely and with a sense of security.
As part of our initiatives taken in stations, we are proceedingwith our plan to eliminate level differences by installing elevators,
etc. and to install multi-functional toilets sequentially in stations
used by 3,000 or more passengers per day. Basically, in all of thestations, installations have been completed or are under way.
Going forward, we will promote the installation of barrier-freefacilities in railway stations used by 2,000 or more passengers per
day that are positioned as a facility necessary for people’s daily
lives in the general plans of local municipalities, in cooperation
with the central government and local municipalities and inaccordance with the central government’s new improvement
goals. We have completed the installation of guiding blocks forvisually impaired persons, and braille blocks that prevent such
persons from falling from platforms in all stations. In regard to
braille blocks, we are sequentially replacing them with the typeof braille blocks that indicate where platform edges are located.
In addition, we are working to install movable platform fences tofurther enhance safety on platforms. On the Tokaido Shinkansenline, installation work commenced in FY2011, aimed at fencing
off platforms at busy stations where the Nozomi stops. At ShinOsaka Station, the installation of fences for Platforms 23 to 27
was completed. When the work to fence off Platforms 20 to 22 iscompleted as scheduled by FY2022, all of the platforms at stations
where the Nozomi stops will be fenced off. On conventional lines,
installation work at Kanayama Station was completed for Platform

Highlight

Creating“Social Value”－Social－

Improving theConvenience of Facilities (Barrier-free, etc.)

The improvement of railway stations is important for local communities
since they serve as a connecting point with the local community andsecondary transportation, such as buses, private cars and taxis, as well
as a gathering spot for the community. In response to requests from local
municipalities, JR Central makes improvements to stations, including the
installation of passages for pedestrians and bicycles and the building ofover-track stations, creates plazas in front of stations, establishes new
stations, and promotes railway elevation projects, thereby contributing
to the development of local communities. For example, since the numberof passengers using Kariya Station on the Tokaido Line is increasing,particularly during morning and evening commuting hours, we are currently
carrying out work to widen the platforms, install movable platform
fences, and improve the concourse based on discussions with Kariya
City regarding improvements to ensure safety and comfort. Kariya City
plans to establish and operate a local community exchange center and a

Business Strategy

3 (inbound Tokaido line) and is currently under way on Platform 4(outbound Tokaido line), with a plan to be put to use in December
2021. In addition to Kariya Station mentioned earlier, we arepromoting the installation of fences at Nagoya Station for Platforms
5 and 6 (outbound Tokaido line), and are considering installation
on Platforms 1 and 2 (inbound Tokaido line) and Platforms 7 and
8 (Chuo line) to coincide with construction work of the Chuo
Shinkansen and the timing of rolling stock renewal.
With the aim of making rail travel more comfortable andconvenient for everyone, we have installed facilities for wheelchairusers on almost all trains we operate. At the same time, our station
staff offers assistance and guidance to passengers with disabilities
when necessary to use our facilities.
In addition, we are working to improve our services by, forexample, exchanging opinions with organizations for persons withdisabilities through the Study Group on Promoting Accessibility of
Shinkansen Services hosted by the Ministry of Land, Infrastructure,
Transport and Tourism, and, since April 2021, sequentiallyintroducing the N700S series cars with six spaces for wheelchairs
and beginning thetrial operation of
online bookings ofwheelchair accessibleseats through the EX
service to improvethe convenience ofbooking.
Installation of platform fences on Platform 3 of Kanayama Station

Roll out of initiatives in coordination with communities located along our lines

IIMONO TANBOU

As part of sales and marketing, we are deepening our ties with
communities located along our lines while rolling out initiatives such as“Sawayaka Walking”and“Destination Campaign (hereinafter,“DC”)”.
The purpose of Sawayaka Walking is to promote the use of railways
on Saturdays, Sundays and holidays throughout the year. This walking
event allows visitors to experience the attractive nature, history andculture of each area along the railway line, and also contributes topromoting the good health of the participants. The program started
in 1991, and the cumulative number of participants now exceeds 5
million. It will commemorate its 30th anniversary in 2021.
DC is one of the largest tourism campaigns in Japan, which sets
the target areas every three months for spring, summer, fall andwinter, with the cooperation of the local municipalities concerned,
six JR Group railway companies, travel agencies, etc., to promote
new tourist sites in the target areas and attract customers by rail. In
DC implemented along the lines we operate, we operate sightseeing
trains that enable passengers to enjoy
the charms of the region and sell
travel products that incorporate tourist
attractions and offer perks in cooperation
with those in the communities along thelines. In addition, even for DC conductedalong railway lines operated by anothercompany, we advertise the campaign atstations we operate to raise awarenessof the tourist attractions, and work withvarious parties concerned to attract
Sawayaka Walking 30th
tourists in locations across Japan.
anniversary logo

As an initiative aimed at vitalizing local communities through related
businesses, we operate the“IIMONO TANBOU”website, which sells
delicacies and selected crafts produced along the railway lines we
operate, and delivers them directly from the production areas. By
introducing the attractions of the areas along our railway lines throughthe sale of products that are not yet known nationwide, JR Central
and the producers work together to vitalize local communities. In
order to pass on the culture andtraditions that have been handed
down to the future, we promotemeasures to support producers
working hard in each region
to develop original products,
etc. We are also expanding thescope of our activities so as tofoster a sense of familiarity withthe areas along our railway lines
by, for example, holding events
bearing the name “IIMONOTANBOU”at department storesand offering hands-on type tours
to such areas. Going forward,
we will continue to add various
products representative of theareas along our railway lines andwork with producers to revitalize
local communities along those
IIMONO TANBOU
lines.

SCMAGLEV and Railway Park - A museum of memories and dreams -Discover the Shinkansen Day

We opened the SCMAGLEV and Railway Park in March 2011 in
Kinjo Futo, Minato-ku, Nagoya, as part of our participation in the
Monozukuri (manufacturing) Culture Exchange Area Project hosted
by the City of Nagoya.
At the SCMAGLEV and
Railway Park, we introduce
the progress of the highspeed railway technology
through displays of rollingstock mainly of the Tokaido
Shinkansen, as well as
conventional lines andSuperconducting Maglev.
The cumulative number ofvisitors until FY2020 was
5.34 million.
SCMAGLEV and Railway Park

Every year at the Hamamatsu Workshop, we hold the“Discover
the Shinkansen Day”so that people might become more familiar with
the Tokaido Shinkansen. We open our Hamamatsu Workshop to the
public for free, and visitors can get a closer look at the features of the
Shinkansen, which are usually not visible from station platforms oralong railway lines.
Specifically, we offer programs such as a tour of the Shinkansen
driver's platform, a tour inside the Doctor Yellow train, an exhibition
and boarding experience of maintenance vehicles, a hands-on
experience as the conductor and the purser, and a chance toexperience in-train cleaning and maintenance work, all of which arequite popular.
*In FY2021, the event was canceled due to the impact of COVID-19.

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

50

Business Strategy

Highlight

Generating“Economic Value”

Creating“Social Value” Corporate Data
SocialCooperation with Local Communities

Contribution to local communities through support for recovery from large-scale disasters
For electric power companies to swiftly recover fromlarge-scale disasters, it is necessary to reinforce the support
system to enable those engaged in recovery efforts to worksafely. In December 2020, Hotel Associa Takayama Resort,which is operated by JR Tokai Hotels Co., Ltd., a JR Central
Group company, entered into a disaster support agreement,
together with two other hotels in the Takayama region,
with the Takayama Office of Chubu Electric Power Grid Co.,
Inc., recognizing such support activities as an importantrole of a hotel rooted in the local community. Based on
this agreement, we contribute to the local community bysupporting recovery from large-scale disasters such as
through the preferential provision of accommodation.

Establishment of a medical institution rooted in the local community (Nagoya Central Hospital)
As an acute care hospital, Nagoya Central Hospital,
located in Nakamura-ku, Nagoya, performs over 1,500
surgeries year round, providing some of the most advanced
medical care services available using the latest medical
equipment. The hospital is also a committed emergency
health care provider, coordinating with local ambulanceservices to take in over 3,200 ambulance calls per year.
Looking ahead, the Nagoya Central Hospital will look toleverage its distinctive features and expertise to further
contribute to the local community.

Hotel Associa Takayama Resort

Nagoya Central HospitalInternational exchanges

Disaster prevention and recovery activities in coordination with local communities
In preparation for a large-scale disaster or other unforeseen
contingency that might occur on the Tokaido Shinkansen
Line, we conduct comprehensive accident response training,etc., with the aim of enhancing the technical capabilities of
employees in each line of operations and affiliated companies
and strengthening cooperation among related parties, including
the police and fire departments, in order to provide relief tocustomers and establish a system for early recovery.
As for our conventional lines, we conduct drills to quickly
guide customers based on the assumption that trains stop
between stations after the occurrence of the Nankai Troughearthquake. We are engaged in disaster prevention efforts incooperation with local communities. In the past, we invitedelementary school children and staff members of local
municipalities along our railway line to participate in our drills.

Comprehensive accident
response training
Tsunami evacuation guidance training

Earning trust from customers and offering user-friendly services
JR Central is committed to providing services that are trusted
and welcomed by local communities and customers, based on ourbelief that providing safe and reliable transportation and high-quality
services to customers and satisfying customers also leads to making
ourselves happy.
For the Shinkansen, we are implementing the“Brand Quality
Service Campaign”to provide customers with a sense of security,
satisfaction and joy. Having set our customers service mission as“Respecting each customer's time,”we are working to improve thelevel of our customer service by promoting good teamwork within
the Company, including stations. While in recent years the numberof online reservations has been increasing, the JR Central Group ismaking concerted efforts to enhance its knowledge and skills, andfoster a service-oriented mindset so that we can accurately respondto the traveling needs of a wide range of customers, including those
who are accustomed to traveling on business and travelers visiting
Japan.
On our conventional lines, we are aiming to provide customers
with truly valuable services, or what we call“Real Value Services.”
The conventional lines that we operate run in a wide range ofareas, each of which has its own unique characteristics. Therefore,
each of our employees is required to think independently and takethe initiative to provide services that best suit the purposes andsituations of our customers. In order to encourage customers tochoose our railway, we encourage employees to enhance theirability to notice the needs of customers and proactively and sincerely
provide services that could give customers a sense of security alongwith a sense of affinity, such as warmth and familiarity.

51

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

As a railway operator responsible for managing Japan’s maintransportation artery, JR Central has also responded to the
expectations of society in the form of international exchange,such as receiving observation visits and developing humanresources.
In Japan, at the request of the government and other parties
concerned, we take officials from foreign governments, overseas
railway operators, and other related persons on tours of railwayrelated facilities, primarily of the Tokaido Shinkansen, to introduce
the business of JR Central and exchange opinions on railway
management and other matters. Furthermore, in collaboration
with several universities in the U.S., we have established and areoperating a summer internship program for students, providingthem with opportunities to learn about the railways and cultureof Japan, thereby increasing their understanding of our company.
We have been actively promoting international exchange
despite restrictions in exchange due to the spread of COVID-19
by leveraging online methods. The diverse knowledge gained
through these visits and programs is also utilized in our initiatives,
for example, to attract inbound travelers.
Outside Japan, JR Central maintains three overseas offices
in Washington D.C., London and Sydney, where it proactively
undertakes a wide range of international operations, such as
gathering mainly railway information from countries aroundthe world, exchanging information with specialists and persons
in the railway industry in various countries, and engaging in
PR activities for overseas markets. We are also actively taking
part in international exchanges in these countries. In the U.S.
for example, we hold exhibitions on the superconducting
maglev system at STEM (science, technology, engineering andmathematics) education events, and provide local children with
opportunities to experience cutting-edge science and technology.

Meanwhile in the U.K., we operate an exchange training programin which executives are dispatched to and from a local railway
operating company, etc., as a way of providing opportunities
for employees of both JR Central and other firms to develop
their skills in railway management and technology through suchexchange.
The internship program for university students in the U.S. andthe exchange training program with U.K. firms are held every
year, and both programs have been held more than 20 times
since their inception. When reunions for the participants of these
programs are held in both countries, many alumni gather, forming
a network of people who share a good understanding of JR
Central overseas. The strong relationships of trust that we havenurtured with people who have visited our company over many
years support the various activities we conduct overseas.

Online exchange with university students in the U.S.

Promotion of culture, art and lifelong learning (JR Central Lifelong Learning Foundation)
Customer service role-play

Customer service scene

JR Central Lifelong Learning Foundation is a public interest
incorporated foundation established in October 1990 withthe purpose of contributing to society through the promotionof culture, art and lifelong learning. The Foundation’s mainactivities include holding exhibits of the artwork of Hoshun
Yamaguchi, a pioneer of new Japanese-style painting whodrove the Japanese art scene, at Hoshun Yamaguchi Memorial
Hall (Hayama-machi, Kanagawa), which opened in October
1991, and disclosing the ateliers and gardens that offer
seasonal flowers and trees loved by Hoshun and his wife forpublic viewing. In 2021, a special exhibition is being held tocommemorate the 50-year anniversary of Hoshun’s death andthe 30-year anniversary of the founding of the Hall. Further, inan effort to support lifelong learning, the Foundation engages
in a wide range of cultural business activities, including holdingclasses on Japanese-style painting and organizing classes tolearn about history and culture.

<<Boukyo - small sketch>> Hoshun Yamaguchi relaxing in his atelier
by Hoshun Yamaguchi, 1953

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

52

SocialCreating“Social Value”－Social－

1

Turnover rate: approximately

Human Resources Development

53

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

drive sustainable corporate growth. As one of the initiatives basedon this concept, we are focusing on the promotion of women's
empowerment. We have been proactively making efforts to enhancevarious systems to realize diverse and flexible work styles. In addition
to these efforts, we are currently proceeding with various initiatives
by setting numerical targets for key indicators, such as the hiring rateof women and the number of female employees in management
positions, under the leadership of the Women's Empowerment
Project launched in July 2020, which is under the direct control of
the General Manager of the Personnel Department.
Moreover, we are actively enhancing health and productivity
management in order to maintain and improve the health of ouremployees, which is the foundation for our continuing to fulfill oursocial mission.
As a result of these continuous efforts, our employee turnover rate
is 1% for male employees and 4% for female employees, or around
1% in total. This is remarkably low compared to the rate in society ingeneral, and we believe this is one of JR Central's strengths.

Basic Policy on Human Resources Development

Technical
capability

Sense ofunity

Generating“Economic Value”

Creating“Social Value” Corporate Data
SocialInitiatives for Enhancing the Skills of Employees
On-the-job training (OJT)Support for self-betterment

We offer various types of on-the-job training (OJT) in
each workplace. For example, under the N-OJT programprovided for employees of younger generations to attainspecialized knowledge and technical skills, we take a finetuned approach in developing employees by using a“List,”
which indicates the requirements needed to be regarded
as qualified, and a“Chart”for recording each individual’sdevelopment plan, details of guidance, and results of theguidance.

With regard to promoting self-betterment, we are alsoenhancing various support systems and actively supporting
the development of the skills of motivated employees.
As internal training programs, we offer approximately 30
courses to employees of JR Central, its group companies,
etc., with many employees taking these courses every year.
Our license incentive program supports approximately
200 types of licenses, and more than 1,000 employees
obtain licenses using this system every year.

Group training

Initiatives for Enhancing the ICT Literacy of Employees

For employees in managerial positions, we provide training on
methods to maximize the performance of the workplace and teams
by bringing out the strengths and abilities of each staff member.
For mid-level employees, for example, we provide selective
training programs, such as leader training, middle-leader training,
and forerunner training, to develop future leaders. We also use
actual equipment, such as Shinkansen rolling stock, installed at
the General Education Center, and conduct practical training
in accordance with the employees’job functions and levels toimprove their technical skills.
For new employees, we provide new employee training that runs
for about two months after they enter the Company. We recognize
this training as an“important opportunity for new employees toshift their awareness from being a student to being a JR Central
employee”and implement a curriculum that instills the disciplineand norms required of employees of JR Central and the awarenessthat safety is the top priority.

In our new employee training and other stratified
training sessions, we provide education and opportunities
for enlightenment regarding ICT by, for example, inviting
external lecturers, as well as actively supporting theacquisition of ICT-related licenses by promoting selfbetterment.
In terms of training methods, we are providing trainingthat has a high educational effect by actively utilizing digitaltechnologies. For example, we provide training and lecturesusing web conferencing and other online systems, andtraining using simulators, VR technology, and 360-degree
camera images. In this way, we are actively using digital
tools to provide our employees with education.

Scene of group training

Use of 360-degree camera images*A ccording to the statistics of the Ministry of Health, Labour and Welfare in 2019, the average
turnover rate in society was 7% for men and 11% for women, or around 8% in total.

Discipline

Highlight%

Policy on Human Resources
JR Central views its employees as its greatest management
resource. Many railway technologies can only be built up to ahigh level through accumulated experience, and human resources
development cannot be achieved overnight. In addition, the railway
business can be operated only when a large number of employees
work together as a team. We believe that long-term employment
is useful also at JR Central from the perspective that maintaining
trusting relationships among employees is important.
Based on this concept, we have established a personnel andwage system that rewards employees who make efforts more
appropriately, while assuming long-term employment in order toenable employees to attain the necessary abilities and demonstrate
their abilities with enthusiasm. We are also working to systematicallydevelop human resources with a broad perspective on personnel
management.
Our Basic Policy on Human Resources Development is based on
three fundamental principles: discipline, technical capability, andsense of unity. Given these three fundamental principles, we develop
human resources that undertake the businesses of the Company.
The basic education system mainly involves on-the-job training (OJT),
in which employees learn the knowledge and skills required forwork through daily operations in each workplace. They also acquire
additional knowledge and skills through group training, which is heldin the General Education Center, etc., and various self-betterment
opportunities, such as internal and external training programs, etc.,that help employees learn knowledge and skills on their own.
In April 2020, in view of changes in the employment environment
associated with the declining birthrate and changes in the social
situation surrounding the employment of the elderly, we revised our
personnel and wage system to enable employees aged 60 or older
with a wealth of work experience to use their accumulated skills andexperience to fully demonstrate their abilities to the age of 65, andextended the retirement age from 60 to 65.
In addition, we have introduced a system whereby employees
aged 65 or older who are highly motivated and capable are
employed as senior contract employees until the age of 70.
Furthermore, with the recent significant changes in the businessenvironment, the importance of ensuring diversity has become
particularly important. At JR Central, we also believe that it isextremely important from the perspective of management toemploy diverse human resources and maximize their capabilities toBusiness Strategy“One STEP”activities

Overseas Study Program and Overseas Research Dispatch Program

We promote“One STEP”activities in which multiple
employees work together as a team to discuss various
issues in the workplace with a sense of ownership, andresolve and improve the issues by their own creativity andoriginality. The name of this program“One STEP”reflects
the idea that“one step made together by ten persons
is better than ten steps made by just one person.”By
implementing activities on a wide range of themes, suchas service improvement, safety enhancement, and cost
reduction, we aim to improve the skills of employees,
create a rewarding and lively workplace, strengthen thephysical strength of the workplace, and develop theCompany.

With the economic and social environment surrounding
companies becoming increasingly globalized and complicated,
we have established the Overseas Study Program to send
employees to overseas graduate schools to obtain a master's
degree while they are still employed by the company, with theaim of fostering human resources who can take charge of the
future management of the Company and play on a global stage.
We have also established the Overseas Research Dispatch
Program to send employees to overseas companies and otherorganizations to conduct research on advanced technologies,
etc., and to utilize the results of the research in our business
operations upon their return. These programs are applicationbased, and although there are restrictions on the number ofyears of service, age and other requirements, applications are
accepted from employees of wide-ranging job types.

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

54

Business Strategy

Highlight

Generating“Economic Value”

Creating“Social Value” Corporate Data
SocialHuman Resources Development

Topix

Support for Maintaining Balance between Childcare, Nursing Care, and Work
JR Central has been actively making efforts to enhance various
programs so that all employees, regardless of gender, can maintaina good balance between work and childcare/nursing care, andbe motivated to work with enthusiasm in active roles over many
years. In 2006, JR Central became the first company in the transportand railway industry to receive the“Minister of Health, Labour andWelfare Effort Award”as a Family Friendly Corporation.*1 We havecontinued to make further efforts even after receiving the award,
and many of our programs exceed the level required by law.
For example, at JR Central, employees are entitled to longer
maternity, childcare and nursing care leave than the statutory
periods set. We are currently taking specific measures to maintainand increase the percentage of employees who take childcare leaveby setting targets.*2 In FY2019, the percentage of employees who
took childcare leave was 100% for female employees and 21.43%
for male employees.
We use flexible work arrangements, including flex time for office
workers and reduced work days, which allows field office employees
who provide care to a child in the third grade of elementary schoolor younger to take multiple unpaid leave days each month, all withan eye to helping employees achieve a good balance between workand childcare. We also have a wide range of employee benefits,

such as mediating the use of company-led childcare centersand offering childcare support subsidies when employees use
babysitters, etc., which are used by many employees.
In addition to these programs, we have a system designed torehire former employees who resigned for childcare or nursing
care reasons or due to other similar circumstances, as long as acertain set of conditions is met. We also have a system that allows
an employee whose work location is limited to be transferred,
upon request, to an area outside the current area of work. These
measures are all part of our efforts to create a better work
environment where employees can reach their full potential atdifferent life stages.
*1 A system introduced by the Ministry of Health, Labour andWelfare whereby companies are rewarded for taking initiatives
to establish various programs to support employees inachieving a good balance between work, childcare and nursing
care, and for putting in place a mechanism whereby employees
have the option of selecting diverse, flexible working styles.
*2 In the action plan from FY2021 to FY2023, we set targets
for the percentage of employees who take childcare leave,of 100% for female employees and 30% or more for male
employees. JR Central has been certified three times by
the Minister of Health, Labour and Welfare as a child-care
supportive institution ("Kurumin" certification), meeting certain
requirements set forth in the Act on Advancement of Measures
to Support Raising Next-Generation Children.

“Kurumin”certification

Initiatives for supporting childcare, etc.
PregnancyChildbirth

Initiatives beyond that called for by law, or voluntary initiatives

１year old

Check-up/maternity leave (unpaid)

３years old

Related to the Equal Employment Opportunity Act

Enrollment
in elementary
schoolWorking restrictions on pregnant womenChildbirth leave

1st grade &6 months
in elementary
school9years old

At JR Central, we believe that it is extremely important from theperspective of management to employ diverse human resources
and maximize their capabilities to drive sustainable corporate
growth. With this in mind, in our recruitment process we carry out
employment without making distinctions with regard to gender,

nationality, etc., and are also actively hiring persons with disabilities.
We are also working to improve the working environment byenabling diverse and flexible working styles in terms of systems andimproving facilities to allow diverse human resources to work withpeace of mind and fully demonstrate their abilities.

Promotion of Women's Empowerment
In accordance with the provisions of the Act on Securing, Etc. of Equal Opportunity
and Treatment between Men and Women in Employment (Equal Employment
Opportunity Act) and other relevant laws, we handle personnel matters, including
recruitment and assignments, in a fair and equal manner without distinction between
men and women. Currently, female employees are engaged in a wide range of duties,
including administrative work, station front desk work, serving as conductors anddrivers of Shinkansen and conventional lines, and hospital nursing work.
Due to the characteristics of the work involved, the railway business requires
so-called late-night work (work between 10 p.m. and 5 a.m.). However, the Labor
Standards Act at the time of the Company's establishment prohibited late-night workby women in principle, excluding for some job types. Due to this situation, the ratioof female employees as of the end of FY1996 was only 1.3%.
Subsequently, in response to the revision of the Labor Standards Act in 1997, wehave actively employed female employees. As of the end of FY2020, the numberof female employees was 2,130 (approximately 11% of all employees), reflecting asignificant increase. In June 2021, a female employee was appointed as a Corporate
Officer for the first time in the Company. Female employees are active in many fields,

including as Presidents of affiliated companies and Department General Managers
and Managers at the Head Office.
We formulated an action plan from April 2021 based on the Act on the Promotionof Female Participation and Career Advancement in the Workplace, in order tobecome a company where more than ever before, all employees, regardless ofgender, can maintain a good balance between work and childcare, work with job
satisfaction, and fully demonstrate their abilities.
This action plan was formulated through repeated discussions at the Women's
Empowerment Project launched in July 2020, which is under the direct control of theGeneral Manager of the Personnel Department, with the aim of making the Company
a place where all employees, irrespective of gender, can work with job satisfaction
and fully demonstrate their abilities. Under the positive action plan, we have set
numerical targets, such as increasing the percentage of female employees hired as
new graduates to 25% or more and increasing the number of female managers bya factor of 1.5 or more (compared to the end of FY2020), and we are promoting
company-wide efforts to achieve these targets by March 31, 2026, when the plan
period ends.

Positive Action Plan for Promoting Women’s Empowerment（Target period: From April 1, 2021 to March 31, 2026）● Strengthen public relations for recruitment so that women
will increase the hiring Target: Raise women’s hiring rate in the recruitment of
1 We
can envision themselves working at a railway company.
rate of women.
new graduates to at least 25%.
● Strengthen the hiring of women in all job types.

2

Related to the Labor Standards Act

We will increase workplaces to which Target: Increase workplaces to which women are assigned. ● Increase workplaces to which women are assigned inview of the provision of facilities for women.
women are assigned, and increase
places where employees with restrictions Target: Increase places where employees with restrictions ● Increase places where employees with restrictions in working
in working styles can play an active role.
styles due to childcare, etc. can play an active role.
in working styles can play an active role.

Related to the Act on Childcare Leave, Wage
Caregiver Leave, and Other Measures for
the Welfare of Workers Caring for Children
or Other Family Members

We will increase theTarget: A ssign 1.5 times more women in managerial ● Foster professional mindsets among female leaders and support networking
posts* (vs end of FY2020)
outside the Company by sending them on external training courses.

3 n u m b e r o f w o m e n i n * positions higher than Managers (excluding Officers)

Childcare leave（paid）

managerial posts.

Childcare leave

Target: Assign 1.5 times more women in Assistant Manager and ● Hold seminars with successful women as lecturers in order to introduce role models.
● Provide training for women aimed at fostering professional mindsets.
Supervisor levels or higher (vs end of FY2020)

Exemption from overtime work

Target: Foster a workplace culture that empowers women to demonstrate their capabilities. ● Provide training for managers, etc.
We will foster a workplacecultureandenhanceprogramsto● Enhance work arrangements, etc.
4
facilitate women to demonstrate Target: Enhance programs that support employees balancing work and childcare.
their capabilities.
Target: Raise the percentage of employees taking annual paid leave to at least 80% ● Encourage employees to take annual paid leave.

Nursing leave （unpaid）

5

Reduction of scheduled working hours
Restriction on overtime/late-night work

Late-night work relaxation system

Child dependency allowance（up to 22 years old）
Provision of at least 30% of the year-end
The Company bears the social insurance premium deducted frombonus even during childcare leave
the year-end bonus in line with the period of childbirth/childcare leave

Welfareassociation

Home help usage subsidy: Up to 5,000 yen/day (up to 20 days per year)（no age limit）
Childcare support subsidy: Up to 4,000 yen/day (up to 60 days per year)
Preschool center usage subsidy: 5,000 yen/month

JR Central complies with various laws and regulations,
including the Labor Union Act, and has signed labor agreementswith all four labor unions currently in place. We hold joint
management council meetings and engage in collective
bargaining based on these labor agreements, and will continue
to strive to build healthy and stable labor-management relations.

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

▶ General Employer Action Plans https://company.jr-central.co.jp/others/action_plan/

JR Central is actively promoting the employment of persons with disabilities
from the perspective of utilizing diverse human resources and fulfilling its corporatesocial responsibility. We place the right people in the right positions in a wide
range of departments, including the administrative and operational departments,
while giving consideration to the degree of individual disability and other factors.
In October 2006, the Company established a special subsidiary, JR Tokai
Well Co., Ltd., based on the Act on Employment Promotion etc. of Persons with
Disabilities. The special subsidiary mainly engages in printing and envelope-sealing

operations for the JR Central Group.
As a result of these efforts, the employment rate of disabled persons as of June
1, 2020, was 2.75%, which is higher than the statutory employment rate.
In accordance with the revised Act on Employment Promotion etc. of Persons
with Disabilities, we will adhere to our non-discrimination policy in recruitment andhiring as well as continuing to improve the work environment in an appropriatemanner, while taking into account restrictions due to disabilities so that individuals
with disabilities can make the most of their skills even after they are hired.

Promoting Human Rights Awareness
Percentage of all employees covered by collective bargaining agreements(Non-consolidated, as of April 1, 2021)
Number of union members Total number of employees*

17,456

18,440

Ratio

94.7%

*Excluding newly hired employees still in the probation period

JR Central Employee Stock Ownership Program
With the aim of helping employees build their assets, wehave established the JR Central Employee Stock Ownership
Program for all employees in principle, under which our

We will encourage men’s Target: Raise the percentage of male employees taking childcare ● Strengthen the dissemination of information to male employees
on childcare-related programs.
participation in childcare.
leave or leave aimed at childcare to at least 30%

Employment of Persons with Disabilities

Shorter day leave（unpaid）

Healthy Labor-Management Relations

55

Promotion of Diversity

company's shares are purchased with contributions fromour employees and incentives from the Company.

JR Central operates on the basis of respect for human rights, and we believe thatenhancing employees’awareness of and sensitivity to human rights is also importantfrom the perspective of fulfilling our corporate social responsibility. Based on thisphilosophy, we have set up human rights awareness offices in the Administration
Department at the Head Office as well as in each of our railway business operation
divisions and regional offices, and systematically implement human rights awarenesseducation, mainly for managers who provide employees with guidance daily, inan effort to promote understanding of diversity. In addition, we have in place asystem for ensuring fair and honest recruitment, appointing human rights promotion
members in the Personnel Department of the Head Office as well as of each of ourrailway business operation divisions and regional offices, ensuring that we conduct
recruitment activities with an awareness of human rights. In addition to these activities,
as a member company of the Aichi Industrial Federation for Human Rights, we areworking to solve various human rights issues from the standpoint of a corporation, andto contribute to the realization of a society in which human rights are respected, incooperation with relevant administrative agencies and other organizations.

Major initiatives●Distributing a textbook for promoting human rights awareness“Learning Human Rights”and using it in training, etc.
●Delivering lectures on promoting human rights awarenessfor Group training for managers and new employees at theGeneral Education Center●Designating managers ofmajor workplaces as humanrights training instructors toraise awareness and provide
guidance on human rights (InFY2020, a total of 28 lectureson promoting human rights
awareness were delivered toa total of 2,133 employees.)
Lecture on promoting human rights awareness

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

56

Business Strategy

Generating“Economic Value”

Highlight

Creating“Social Value” Corporate Data
SocialHuman Resources Development

Topix

Enhancing Health and Productivity Management

PurposesIn order to achieve our mission to “Contribute to thedevelopment of Japan’s main transportation artery and social
infrastructure”shown in our management philosophy, it is essentialthat each and every employee demonstrate his/her full potential.
In order to maintain and promote mental and physical healthas its basis, we established the Health Promotion Policy as ouroverall policy for health promotion measures in April 2018 for theCompany to actively support the promotion of employees’health.

“Health Promotion Policy”

For Working in a Lively and Continuous Way
1

In addition to stress checks for all the employees (with more check
items than those required by law), we carry out stress checks with our own
additional indicators for employees who have newly joined the Company,
have moved to another department, or have been promoted. Internal
medical professionals have interviews with employees who are found to behighly stressed. Furthermore, annual meetings are held for new management
staff (equivalent to department heads) and the health promotion staff toshare health issues faced by our employees and our promotion measures.
Non-smoking support
We are providing support including
having internal medical professionals
give health lectures, offering in-person
instruction during health checks orworkplace inspections, establishing internal
consulting services for quitting smoking, andconsolidating smoking rooms. We are also
encouraging staff to utilize the Non-Smoking
Support Program by JR-KENPO.

12.0

18,11657

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

18,14815,00018,282
11.4

10.9

Number of hires by genderpublic health nurses, nurses, clinical psychologists, and other medical
professionals at all of those four locations.
In addition, health promotion staff have been designated at each
workplace to support the development of frameworks for employees
to work in a lively way and for employees’and workplaces’voluntary
promotion of health.
mental illness, we focused first on the exercise habit and thesmoking rate, and set numerical targets to be achieved by
FY2023 to encourage employees to change their behavior.

Exercise habit: Increase the percentage of employees who walk an
average of 8,000 steps or more per day to 50% or more.
Smoking rate: Reduce the number of smokers by 25% from the current level.

Workplace vitality improvement projects
We are taking various voluntary and continuous measuresboth for mental health and against lifestyle diseases, basedon employees’health status and work environments, withassistance from internal medical professionals, with thesafety and health organization at each workplace playing
a central role. In doing so, we are effectively utilizing thegroup analysis results of health checks or stress checks.
Habituation of exercise support

1,000

700
600

11.0

11.0

10.5

0

10.0

500

FY2016FY2017FY2019FY2020

Number of days of annual paid leave taken
Percentage of annual paid leave taken（Number of days）

（％）

20
18

78.9

100

82

85

87.6

86.5

90
80

14

70

12

60

10

50

8

15.3

15.9

16.5

16.9

16.7

40

6

30

4

20

2

10

0

FY2016FY2017FY2018FY2019Number of female managers

FY20200

Number of female managers● Percentage of female managers（%）(Number of persons)

120

673

770

772

200

0

125

124

119

142

159

FY2016FY2017FY2018FY2019FY2020

12

100（Number of persons）

350
300
250

87

200

219

218

181

FY2018FY2019

81

150
100

177

209

191

FY2016FY201750
0FY2015*Including employees who use the leave system for childcare.

Turnover rate

Male

Female

All

（%）

10.0

7.5

6

2.7

3.0

3.4

3.3

5.0

4.5
3.5

3.7

1.2

1.4

1.4

0.9

0.8

1.1

1.1

0.9

FY2016FY2017FY2018FY2019FY20202

FY2017FY2018FY2019FY20200*Including Assistant Managers of non-field operations, Supervisors of field operations, andChief Nurses (includes employees on leave, but excludes employees on secondment)

Unit
Male
Average age

Female

Age

All
Male
Average years of service

Female

3.4

4
2.5

20

FY2016

146

21

3.6

0

Number of employees taking childcare leave (males)

400

8

85

2.4

Number of employees taking childcare leave (females)

10

107
96

80

Number of employees taking
childcare leave

122

117

40

“organizations engaging in efforts for the healthmanagement of employees from a managerial
perspective and promoting it strategically.”
In 2021, under this program, 1,801
enterprises were recognized as“2021 CertifiedHealth & Productivity Management Outstanding
Organizations (Large Enterprise Category),”out of which the top 500 enterprises, including
JR Central, were further recognized as“White500”(as of March 4, 2021).

FY2018

Number of days and percentage
of annual paid leave taken●Promotion of health using an online fitness app

For the walking event held by the JR Group Health Insurance Association, we are making
company-wide efforts by establishing an original incentive system.

626*Rate of mid-career hires: 2.5% (FY2018), 2.5% (FY2019), 1.3% (FY2020)

60● Walking event“Minna de Arukatsu”

554

300

100

We are holding the following events to improve awareness ofhealth promotion and support the habituation of exercise.
We have signed a corporate contract for an app that allows users to view a total of more than
700 classes in 11 fields, such as yoga, walking, meditation and other programs. The contents
include individual competitions where participants aim to reach the goal by clearing designatedtasks, as well as team competitions where participants compete in terms of the number ofprograms viewed, making it a fun way to work on promoting health.

Number of males hired

800
11.5

5,000

16

Specific targets (until FY2023)

Number of females hired（Number of persons）

900

18,49911.5

11.2

Recognition of“White 500”under the“2021 Certified Health & Productivity Management Outstanding Organizations”
The Certified Health & Productivity Management Outstanding
Organizations Recognition Program is a certification system establishedby the Ministry of Economy, Trade and Industry. It recognizes
outstanding organizations engaging in efforts for health and productivity
management, such as initiatives for overcoming health-related challenges
in communities or for promoting health conscious activities.
The purpose of this program is to highlight outstanding enterprises practicing
health and productivity management. In this way, it also aims to organize anenvironment where such enterprises are able to gain enhanced social recognition
from their employees, job seekers, related enterprises and financial institutions as

（％）

400

Measures
Understanding the health status and sharing health issues and enhancement measures

18,05410,000

Numerical targets
With the aim of reducing the number of employees who areunable to exercise their full potential due to health reasons, we areworking to improve health-related indicators that are considered
to have a high correlation with physical and mental illness basedon the findings of occupational physicians. This is based on theconcept of preventing disease by taking action at the stage before
people are exposed to health risk, rather than providing support
after they become or are likely to become at high risk of illness.
Among several health-related indicators that areconsidered to have a high correlation with physical andTotal number of employees (non-consolidated)
Percentage of female employees

20,000We verify the effects of those efforts and further promote health based on
objective data that help us understand the status of workplaces and employees.

Organization
Headed by the officer in charge of personnel affairs, health andproductivity management is being enhanced through cooperation among
the Personnel Department, the Company-managed medical institute (Nagoya
Central Hospital), and the occupational health sector (Health Care Center).
The Health Care Center has health management offices at Tokyo,
Shizuoka, Nagoya and Shin-Osaka, and assigns occupational physicians,

Non-consolidated Number of Employees
and Percentage of Female Employees（Number of persons）

The Company shall establish frameworks for employees to work in a lively way.

2 Employees should promote their own health. The Company shall support this.
3■ Human resources-related data

Year

1.2
0

1.2

FY2016FY2017FY2018FY2019FY2020

37.9

37.8

37.6

37.4

37.1

30.1

30.7

31.2

31.7

31.8

37

37

36.9

36.7

36.5

18.2

17.9

17.7

17.4

17

8.7

9.2

9.7

10.1

10.2
16.3

17

17

16.8

16.5

Average number of training hours per year

Hours

35

32

34

36

35

Employment rate of disabled persons

％

2.28

2.21

2.26

2.51

2.75

All

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

58

Social

New York
Baltimore,
Washington D.C.

Creating“Social Value”－Social－

Overseas Deployment of High-Speed
Railway Systems

DallasThe Northeast Corridor Project(Washington D.C. - New York)The Texas Project(Dallas - Houston)

HoustonSocialto maintain and strengthen its technological capabilities. In addition, we
expect to receive feedback in the form of a stable supply of materials andequipment, technological innovation in railway-related equipment, andcost reductions in such equipment. We therefore believe that the overseas
deployment of high-speed railway systems is an important initiative for
JR Central to fulfill its mission of maintaining and developing Japan's maintransportation artery into the future. The candidates for deployment arecountries and regions where the introduction of total systems involving new
high-speed passenger railway lines can be expected, on which our superior
high-speed railway systems can be used to their full potential. Furthermore,
we realize the need for the target countries and regions to have a complete
legal system where intellectual property rights and the sanctity of agreements
are established as socially accepted ideas, a stable political situation, andthe economic strength to invest in large-scale infrastructure investments.
Therefore, the U.S. is currently the target for promotional activities.

a total system, which includes civil engineering structures, tracks, electricalequipment, signaling equipment, rolling stock, operation management
systems, maintenance and repair, etc., to overseas markets. We not only
formulate technical specifications and provide support and consultation toensure safe and reliable operation of the high-speed railways by supplying
various manuals regarding operation and maintenance, and conducting
education and training for staff, etc., but also coordinate with relevantJapanese companies when projects become concrete.

We have been working on getting the Tokaido Shinkansen system, which boasts the highest level of safety and precision in the world, up and running in the stateof Texas, while introducing the SCMAGLEV, our superconducting maglev system that is capable of an operating speed of 500 km/h, to the Northeast Corridor.

The Texas Project is a private business venture that aims to link two major cities,
Dallas and Houston, via the Tokaido Shinkansen rail system. The key players in
the project, Texas Central Partners and its subsidiary (collectively referred to as“TC”), are currently proceeding with business development activities, including
the formulation of technical specifications and processes and the procurement ofconstruction funds. In order to provide TC with the technological assistance needed
to move the project forward, we launched a local subsidiary, High-Speed-Railway
Technology Consulting Corporation (HTeC), in 2016. HTeC currently provides TC withtechnical consulting for its project-related
operations, such as developing specifications,formulating operation and maintenanceplans, drafting preliminary designs for stations
and maintenance facilities, and preparing
personnel training and education programs.
Furthermore, in August 2018, we launchedanother local subsidiary, High-Speed-Railway
U.S. Secretary of Transportation Chao Visits Tokyo Station

Integration Corporation (HInC), to work with TC on signing contracts for core systems
with other Japanese manufacturers, and have been preparing for the project.

The Northeast Corridor ProjectWith regard to the Northeast Corridor connecting Washington, D.C. to New York City,
we are aiming to introduce our SCMAGLEV, starting with promotional activities to realize
cooperation between the Japanese and U.S. Governments for the development of the
Washington, D.C.-Baltimore section. Currently, the Federal Railroad Association and otherrelevant organizations are making preparations for environmental impact assessment and otherprocedures, using a federal grant of USD 27.8 million provided by the U.S. Federal Government
to the State Government of Maryland to cover the survey costs for the section. The Governmentof Japan also commenced research in FY2016 to introduce the SCMAGLEV in the U.S.
Meanwhile, both the Japanese and U.S. governments are showing more understanding andsupport for this project, in part because we provided the U.S. Secretary of Transportation, theGovernor of Maryland, and other leading officials with an opportunity to ride on a Maglev train
in Yamanashi Prefecture and realize the strong potential of the technology. We are planning toprovide comprehensive technical support when the project is put into action.

In response to a request for technical assistance from Taiwan High Speed Rail Corporation, which operates Taiwan’s high-speed rail system
based on the Japanese high-speed rail system, we started providing technical consulting in FY2014. We have completed eight individual projects
to date. From now on, the construction work that we have been consulting on in the planning stage will be in full swing. We will continue torespond to the request from Taiwan High Speed Rail Corporation and contribute to the safe and reliable transportation of Taiwan High Speed Rail.

Making Efforts to Promote Japanese High-Speed Rail Systems as a Global Standard

59

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

SocialBuilding Relationships with Material Suppliers

As it is necessary to procure higher-quality and reliablematerials at reasonable prices to support safe and reliable railway
transportation, JR Central procures quality materials in Japanand from overseas based on its Basic Philosophy of Material
Procurement. In particular, we recognize that quality is themost important factor, and inspect our suppliers' manufacturing
capabilities and technological standards as well as their efforts
to maintain and improve such capabilities and standards. We
also constantly strive to reduce costs by promoting the entry of
new suppliers, placing orders that take into account economies
of scale, and strictly assessing manufacturing costs, among otherefforts. In the railway business, which requires us to continue
to fulfill our social mission in a stable and sufficient mannerover a long period of time, it is also necessary to maintain thequality of materials used in the business over the long term.
For this reason, we ask our suppliers to provide us with stablesupply and after-sale services. In particular, we place orders withmultiple suppliers for materials that are indispensable for ourdaily operation in order to disperse the manufacturing locations
geographically so that we can avoid the risk of supply disruption
due to an earthquake or other disasters. Furthermore, we ask
our suppliers to comply with the relevant laws and regulations
and to respect human rights, and investigate their efforts in thosematters not only when starting business but also during quality
audits at their plants.
Suppliers are business partners in constantly making efforts
to reduce costs while maintaining and improving productquality. We believe that building continuous and stable business
relationships will enable us to procure high-quality products at
low prices and, as a result, will contribute to the enhancementand development of all railway-related businesses in Japan,
including our suppliers.

Basic Philosophy of Material Procurement1

Procurement that prioritizes the ensurement of safe and reliable transportation

7

Pursuit of suppliers capable of adapting to diverse usage environments

2

Procurement of high quality materials

8

Establishment of a satisfactory communication framework

3

Procurement of materials at reasonable prices

9

Appropriate handling of information

4

Pursuit of suppliers possessing a supply system capable of strictly
adhering to contractual delivery deadlines

10

Fair and equitable transactions

11

Pursuit of suppliers giving consideration to reducing the environmental burden

12Compliance with relevant laws and regulations

13

Providing and updating website information on procurements

5

Pursuit of suppliers capable of building a continuing and stable business relationship

6

Pursuit of suppliers capable of supplying satisfactory after-sale care regardlessof whether such service is needed during normal or emergency times

Actual quantities procured of main materials (FY2020)
The amount of materials procured in FY2020 was 192.4 billion yen,with major items including rolling stock, rails, maintenance cars (carsused for the maintenance, etc., of railway facilities) and railway sleepers.
Since we procure a wide range of materials, including rolling stock androlling stock components, rails and other track materials, and powertransmission systems, we procure them from numerous suppliers. In
FY2020, we engaged in transactions with approximately 400 suppliers.

Quality management initiatives
JR Central recognizes that the quality of procured materials
is extremely important from the viewpoint of ensuring safe andreliable railway transportation. Therefore, we conduct rigorous
inspections of technological standards and manufacturing
capabilities, perform quality audits at our suppliers' plants, andtake other steps to ensure that the quality required for our
products is maintained.

Fuel and chemical products Miscellaneous materials

Machinery and work tools

5%

1%

1%

Rails and other track materials

10%

Technical Consulting for Taiwan High Speed RailWe will continue to promote initiatives to establish theJapanese high-speed rail system, which is based on the core

Creating“Social Value” Corporate Data

Policy on material procurement

Initiatives in the U.S. project

The Texas Project

Generating“Economic Value”

Target lines for overseas expansion

Consulting & Coordination Business
Based on the belief that a huge infrastructure, such as a high-speed
railway, which serves as the foundation of local communities and theeconomy, should be owned and operated responsibly by the governments
and companies of the country or region where such infrastructure is located,
JR Central’s policy regarding the overseas deployment of high-speed railway
systems is that we do not lead the implementing body of development
projects. Instead, we contribute to the projects by providing consulting
services. Specifically, we propose the deployment of high-speed railways as

Highlight

Creating“Social Value”－Social－Significance of overseas expansion
Since its establishment, JR Central has focused on safe and reliabletransportation, with its primary mission of connecting the three major
metropolitan areas of Tokyo, Nagoya and Osaka, which form the maintransportation artery of Japan. As a result of carrying out significant capital
investment and technological development over the years, the Tokaido
Shinkansen has evolved significantly in terms of high speed, high frequency
and mass transportation, in addition to safety and reliability. The market for
high-speed rail in Japan had been expanding along with the construction
and opening of new railway lines thus far. In recent years, however, thedevelopment of Shinkansen lines in Japan has been generally completed. As
for the Tokaido Shinkansen, the N700S, which began commercial operationin July 2020, is approaching its ultimate form as Shinkansen rolling stock,and the development of new trains is also entering its phase of maturity. The
overseas deployment of high-speed rail systems that JR Central is pursuing
is expected to expand the markets of related domestic manufacturers andBusiness Strategy

principle of“Crash Avoidance,”as a global standard, through theInternational High-Speed Rail Association (IHRA).

Signals andcommunications
systems

15%

Rolling stockand rolling stock
Costs of
Purchases JPY components

192.4billion

50%Power transmission
systems

18%

Conducting a quality audit of rolling stock components

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

60

Environment

Business Strategy

Generating“Economic Value”

Highlight

Creating“Social Value” Corporate Data
Environment

Creating“Social Value”－Environment－
Promoting organization

Contribution to
Global Environment Preservation

JR Central promotes initiatives for global environment preservation in

President

the organization that with the President at the top, the Corporate Planning
Division, which oversees management departments, and the General
Technology Division, which oversees technology departments, are working

Corporate Planning Division

Cooperation

General Technology Division

together to formulate policies for energy and resource conservation efforts
and policies for technological development that contribute to reducing
CO₂ emissions, while the Shinkansen and Conventional Lines Operations
Division, the Chuo Shinkansen Promotion Division and the BusinessConventional Lines
Operations Division

Shinkansen
Operations Division

Chuo Shinkansen
Promotion Division

Business
Promotion Division

Promotion Division implement specific measures.

Initiatives for global environment preservation and the achievement of a carbon neutral society

32
from FY1990

Tokaido Shinkansen’s energy
consumption unit in FY2020*

JR Central has been making efforts to preserve the global
environment by further improving the energy efficiency of its railway
operations, such as by lowering power consumption in rollingstock. Additionally, we strive to further reduce CO₂ emissions inaccordance with the government’s 2050 carbon-neutrality policy.
Of the CO₂ emitted by JR Central, approximately 95%
is indirectly emitted when the electricity we purchase isgenerated, while the remaining 5% is directly emitted throughour use of fuels, etc. Regarding our 5% direct emissions, we will
carry out research and work to develop technologies for theelectrification of rolling stock. As for the remaining 95% indirectemissions, not only will the Japanese power generation sector
shift towards producing carbon netural electricity, JR Central
will aggressively strive to reduce CO₂ emissions by adopting
new technologies, such as lowering power consumption inrolling stocks and facilities as well as considering the use ofrenewable energy.
In order to promote these initiatives throughout thecompany, the Corporate Planning Division and the General
Technology Division disseminate information and provide% improvement*JR Central defines the energy consumption unit as the amount of energy consumed when running one car for one kilometer; total rolling stock kilometers is a value most relevant to its business activities.

Environmental superiority of railways
Climate change is an issue that should be addressed on a
global scale. While it is regarded that CO₂ in particular has
the largest impact among all greenhouse gases, railways havean outstanding characteristic of being highly energy efficientcompared to other transportation modes and thus having
minimal adverse impact on the global environment. Railways
account for only 6% of CO₂ emissions despite undertaking 30%
of Japan’s overall passenger transport volume. Compared toan aircraft (B777-200), the Tokaido Shinkansen (Series N700
“Nozomi”) consumes approximately one-eighth of the amountof energy per seat, and discharges about one-twelfth of theCO₂ emissions when traveling between Tokyo and Osaka. The
data shows that the Tokaido Shinkansen has overwhelming
environmental superiority. JR Central believes that having as
many passengers as possible opt to use railway services, whichhave a smaller environmental impact compared to other modesof transport, will mitigate the load placed on the environment
across the entire Transportation section and contribute to
global environment preservation.

Distribution of Passenger Transportation Share, in terms ofTransportation Volume, Energy Consumption, and CO₂ Emissions

Comparison of the Tokaido Shinkansen and Airplanes (between
Tokyo and Osaka)
Energy Consumption per Seat

RailwayBus

Airplane

1%

Car

Other

Shinkansen

3%

Series N700
“Nozomi”

83%

80%

B777-200

7%30%

Shinkansen
Series N700
“Nozomi”

8%
3%
4%

7%

Shinkansen

3

Series N700%
“Nozomi”

1/8

90MJ

*1

746MJ

*2

6

*2
B777-200*The totals for items in the breakdown may not be 100% due to rounding.
Source: For transportation volume/energy consumption, created based on data from
Handbook of Energy & Economics Statistics (FY2018).
For CO₂ emissions, created based on data from the National Institute forEnvironmental Studies, Greenhouse Gas Inventory Office of Japan (FY2018).

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

Shinkansen
Series N700
“Nozomi”*1

4.2kg-CO2

1/12

Approx.
of an airplane

Airplane

Airplane%

CO₂
B777-200
emissions

Approx.
of an airplane

B777-200*1

4.2kg-CO2

Airplane

746MJElectrification of trains, etc.

Fuel: 70,000 tons (Approx. 5%)

CO2 Emissions per Seat

Transportation volume
Energy(passenger-kilometer) consumption

61

Approx.
of an airplane

Airplane

57%

5%

90MJ *1

1/8

Initiatives to reduce
CO₂ emissions

50kg-CO *2
2

Power generation sector decarbonizationelectricity:
1/12 Purchased
1,150,000 tons

Approx.
of an airplane

Energy-saving(Approx. 95%)

Renewable energy utilization, etc.

FY2020CO2 emissions:
1,220,000 tons

50kg-CO2*1 Calculation based on running performance of Series N700 Nozomi (Tokyo - Shin-Osaka)
conducted by JR Central.
*2 Calculated by JR Central using ANA's“Annual Report 2011”B777-200 (Haneda - Itami/Kansai
Airport) for reference.

Note: Refer to page 42 for information on TCFD.

Trial introduction of electric automatic track cycles
For our conventional lines, we have been developing
electrification technologies to electrify automatic track cycles thatare used to inspect the safety of railway track facilities, and webegan performance trials on the Kisei Line in July 2021.
Whereas conventional track cycles run on gasoline engines,
the electric automatic track cycles are motor-driven, powered byelectricity from batteries. Therefore,
they do not discharge emission gas
and thus reduce CO₂ emissions.
Furthermore, a regenerative braking
system that generates power during
braking enables efficient use of energy.
By recycling batteries of electricvehicles made in Japan into batteries,
resources are also used efficiently.
Electric automatic track cycle

Guidelines
Environmental Action Guidelines
JR Central has established a set of Environmental Action Guidelines consisting of the following seven items as part of its engagement in global environment preservation.
Provide comfortable transportation services topromote further use of railways, which offer superior
global environment preservation
2 Promote technological development that
contributes to global environment preservation
3 Use fuel and energy efficiently
1*2

guidance on the current situation regarding global environment
preservation, and on the Company's policy and compliance.
Also, the Technology Research and Development
Department of the General Technology Division has
acquired ISO 14001 certification, the international standard
for environmental management systems. In order to further
refine the characteristics of railways that are superior interms of global environment preservation, we are working
on the development of energy-conserving technologies, etc.
In addition, we have endorsed the Task Force on Climaterelated Financial Disclosures (TCFD) recommendations
established by the Financial Stability Board (FSB). We will
understand the financial impact of the risks brought about
by climate change, and promote information disclosure
based on the TCFD recommendations.

4

Promote waste control and recycling

5

Appropriately manage chemical substances

6 Procure environmentally friendly goods and materials
7

Contribute to society and raise awareness for
global environment preservation

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

62

Business Strategy

Highlight

Generating“Economic Value”

Creating“Social Value” Corporate Data
Environment

Contribution to Global Environment Preservation

Initiatives in energy-saving

Facility and workshop status

Introducing energy-saving rolling stock (Shinkansen)
We are actively developing and introducing energy-saving rolling stock in aneffort to further reduce the Shinkansen's energy consumption. To replace theSeries 300 and the Series 700, we have introduced a total of 80 Series N700
trainsets since FY2007, and 51 N700A trainsets since FY2012. Furthermore,
we have been introducing the N700S since FY2020 to replace the Series
N700, with a plan to introduce 40 trainsets by FY2023.
When operating between Tokyo and Shin-Osaka at a maximum
speed of 285 km/h, the N700S consumes 28% less energy than the

Comparison of Electricity Consumption by Tokaido
Shinkansen Rolling Stock Type-28％
270km/h
270km/h

92％285km/h77％72％*Generic name of N700A and the Series N700 (enhanced version)

Shifts in the ratio of the Tokaido Shinkansen rolling stock and energy consumption per unit
（%）
100

- 6％

Speed of all trains increased (to 270 km/h)(to 285 km/h)

Series700（1999）

N700A（2013）

N700S（2020）

Series 300 / Series 700

400Series N700 / N700A

40

N700S

20

’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20

0

（FY）

JR Central has also been striving to reduce the energy consumption of rolling stock on conventionallines. We are promoting the introduction of rolling stock with better energy efficiency by introducing
the Regenerative Braking System, higher efficiency power control conversion methods, lighter rollingstock, etc. to electric railcars, and will do the same for diesel railcars by introducing lighter rolling stock,high mileage diesel engines, etc. As a part of this effort, the Series 211 and the like will be renewed bya newly manufactured commuter train, the Series 315. We will further improve the energy efficiency of
the Series 315 such as through the use of silicon carbide for the power converter, reducing electricity
consumption by around 35% compared to the Series 211. From FY2021 to FY2025, we plan to■ Comparison of Electricity Consumption of Conventional Line Electric Cars
Series 211
Series 313
Series 315

A combination of electricity generated by the engine and electricity stored in a storage battery is used to drive the motor that powers the train.

72
65*Based on simulated test runs between Nagoya and Toyama at a maximum speed of 120km/h.

Motor

EnginePower
converter

Motor

Storage battery

Storage battery

Speed

70
Approx. -30%

Powerconverter

Air conditioner, lighting, etc.

Accelerating0

Air conditioner, lighting, etc.

Braking[When stopping at a station]
The idle-stop system shuts down the engine
when the train stops at a station.

EngineGenerator

Hybrid Cars
(Series HC85)

100（Basis）

Engine[During braking]Electricity generated by theregenerative braking system is stored
in the storage battery.

Generator■ Comparison of Diesel Fuel Consumption of Conventional Diesel Cars
(Series KiHa 85) and Hybrid Cars (Series HC85)[When accelerating]A train is primarily powered by electricity
generated by its engine. The storage
battery is used to supply additional power
depending on the circumstances torealize high-speed operation.
Generator

Approx. -35%

*Based on simulated test runs between Toyohashi and Ogaki, and Nagoya and Nakatsugawa
at a maximum speed of 120km/h (rapid operation).

Conventional Diesel Cars
(Series KiHa 85)

manufacture and sequentially introduce 352 new cars.
Furthermore, we are preparing for the new production of a mass-production vehicleof the next-generation hybrid powered limited express Series HC85, which we will begin
to use from FY2022, as a successor to the Series 85 diesel railcars currently used for our
limited express trains“Hida,”etc. The Series HC85 is expected to achieve an approximately
30% reduction in diesel fuel consumption and CO₂ emissions and an approximately 40%
reduction in NOx emissions in comparison to the Series 85 diesel railcars, by making use of
the power stored in the batteries when accelerating and stopping.

How the hybrid system works

100（Basis）

Power
converter

Between FY2011 and FY2022, we have been replacing
electricity compensation devices, which inhibit the voltage
reduction of electric train lines when the load on Shinkansen
substations becomes large. Since the new device experiences lesselectricity loss than the conventional facility, we expect to reduce
electricity use on the Shinkansen by approximately 3%.
For the Tokaido Shinkansen, we have installed frequency converters thatconvert 50Hz electricity received from electric power companies, etc., into

JR Central has been taking anti-earthquake measuresand upgrading facilities since February 2014 in the Nagoya
Workshop where general overhauls, etc., of conventional line
rolling stock are conducted. We aim to reduce the electricity
consumption of the entire workshop by approximately 20%
by introducing high ceiling LED lighting and by replacingsome transforming equipment with highly efficient models tomeet the requirements of the Top Runner System.

General Education Center

General Education Center(rooftop gardening)

At the SCMAGLEV and Railway Park, which opened in March 2011,
we introduced a solar energy generation system on the expansive
roof. The system has a generation capacity of approximately 500 kW,
or roughly 470,000 kWh annually, which can cover approximately
30% of the SCMAGLEV and Railway Park’s energy needs.

Nagoya Workshop*E nergy consumption efficiency target specified for specificequipment in the Act on Rational Use of Energy

SCMAGLEV and Railway Park
(solar power generation system)

Initiatives by group companies

JR Central has conventionally used high-pressure mercury lamps for lighting at
stations, railroad crossings, and other railway facilities, but completed replacing them

JR Tokai Bus Company

JR Tokai Takashimaya Co., Ltd.

JR-CENTRAL PASSENGERS Co., Ltd.

Since 2011, JR Tokai Bus Company has been sequentiallyintroducing vehicles with high performance engines that
conform with the Post New Long-Term Emission Gas
Regulations. Vehicles with these engines account for
approximately 80% of all vehicles currently owned by thecompany, and have achieved an approximately 80% reductionin NOx included in emission gas compared to the level prior
to the introduction. The company has also been promoting
initiatives for further global environment preservation by
sequentially introducing AMT (automated manual transmission)
buses, which can improve mileage by more than 15%
compared to MT (manual transmission) buses, since 2017.

JR Nagoya Takashimaya has been switching to
LED lighting and has completed the replacementof approximately 27,000 lights. As a result,almost all of the lights in the building have beenchanged to LED lighting. In the Takashimaya
Gate Tower Mall, air conditioning efficiency isimproved by preventing the inflow of outside airand suppressing fluctuations in room temperatureby limiting the number of doors that are always
open in the passageway (colonnade), reducing the
shutter opening time, and installing new doors inareas where outside air flows in.

More than 50% of the coffee beans used in the coffeesold on the Tokaido Shinkansen“Nozomi”and“Hikari”trainsare grown on farms certified by the Rainforest Alliance. The
Rainforest Alliance was established in 1987 as an international
non-profit environmental protection organization, and theiractivities cover more than 60 countries. With the aim of
improving the lives of farmers and achieving sustainable
management of tropical rain forests, the Alliance gives
certification to farms that meet the criteria for forest and river
protection, pesticide restrictions, waste management, and thelike. Through the procurement of certified coffee beans, we
contribute to global environment preservation.

AMT buses

Switching to LED lighting

Onboard service

Storage battery
Air conditioner, lighting, etc.

Hours

Cooperation with external entities
60Hz electricity, which is necessary for Shinkansen operation, in the sections
east of Fujikawa. Between FY2014 and FY2023, we have been switchingsome of these devices from rotation types to static types with less electricity
loss. We will also replace two more frequency converters, which are rotation
types, with static types between FY2021 and FY2027, since we havedeveloped a technology that can respond to sudden changes in grounding
and load. Due to these replacements of frequency converters, we expect toreduce electricity use on the Shinkansen by approximately 4%.

Energy-saving by replacing high-pressure mercury lamps with LED

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

At the General Education Center, which opened in September 2011, we aim tosave energy by introducing an air conditioning system that uses ice thermal storage
achieved by the utilization of nighttime electricity service as its heat source and LED
lighting, etc. Furthermore, we designed the building to use natural energy effectively
by improving its external insulation efficiency by arranging a rooftop garden andtaking advantage of natural wind and light as much as possible. As a result, we wereable to obtain Rank S, which is the highest assessment level under CASBEE.

Motor

Energy-saving by replacing ground facilities

63

Hamamatsu Workshop

The Hamamatsu Workshop, which conducts general overhaulsof Shinkansen rolling stock, completed its renovation constructionin March 2019. In addition to introducing a solar power generation
system with the capacity to generate approximately 300 kW or about
410,000 kWh annually on the rooftop of the workshop, we installeda highly efficient substation facility, boilers, and other equipment.

JR Central Group companies are also implementing initiatives that contribute to global environment preservation.

Introducing energy-saving rolling stock (conventional lines)

Comparison of Electricity Consumption and Diesel
Fuel Consumption of Conventional Line Cars

JR Gate Tower

As for the JR Gate Tower, whose construction was completed in February 2017, we worked on creating an energy-efficientenvironment within the entire building as well as reducing the environmental burden by introducing regional air-conditioning
systems, adopting LED lighting, installing solar power generation panels, creating green areas in the 15th-floor rooftop garden
and on roofs of low-rise buildings, etc. We not only achieved Rank S in environmental performance, which is the highest rank on
the CASBEE (Comprehensive Assessment System for Built Environment Efficiency) scale, but also reduced CO₂ emissions from thebuilding by approximately 25% compared to standard model buildings, according to the CASBEE Nagoya 2010 standard.

SCMAGLEV and Railway Park
60

20
Series300（1992）

80

Series 0 / Series 100

60*Simulated run from Tokyo to Shin-Osaka at the maximum speed above

（%）
100

Compared to FY1990
Approx. 32% improvement

80
Ratio of Rolling Stock100％

285km/hSeries 300 when running at a maximum speed of 270 km/h, thanks to
its silicon carbide semiconductor drive system, lighter car body, reduced
air resistance, and other features. It also consumes 6% less energy thanthe N700A type* when running at a maximum speed of 285 km/h. Thismeans that the N700S is not only faster but also much more energyefficient. As a result, the energy consumption unit as of the end of
FY2020 decreased by approximately 32% from what it was in FY1990.

with LED by the end of 2020. As a result, we have cut our annual power consumption
by 70% (down 20 million kWh) compared to the level prior to the replacement work.

Environmental Partnership Organizing Club (EPOC)
EPOC is a group that was established in 2000 mainly by the industry
sector in the Chubu region, with the aim of building a sustainable economy
and society by leveraging the environmental achievements of companies.
Its activities include disseminating environmental activities andinformation to society through collaboration among companies beyond theboundaries of industry, and cooperation with government, academia, and awide range of local entities. (For more information, see the EPOC website.)
We joined EPOC in FY2002 and are currently involved in theoperation of the organization as a core company. We will continue
to contribute to global environment preservation through EPOC incooperation with member companies, etc.

EPOC’s general meeting

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

64

Business Strategy

Generating“Economic Value”

Highlight

Creating“Social Value” Corporate Data
Environment

Contribution to Global Environment Preservation■ Environment-related data

Initiatives in compliance and the achievement of a recycling society
JR Central ensures compliance with various environmental
laws and regulations, while striving to appropriately manage
chemical substances and reduce waste. We also promote

the effective use of resources to reduce environmental
impact through the 3Rs initiative (Reduce, Reuse andRecycle), etc.

Reducing food loss

Donating stockpile food to an NPO

Cooperation with startups
We introduced No Food Loss, an app provided by Minatoku Co., Ltd. toreduce food loss, in some stores of group companies in an effort to reduce
the loss of food, such as ekiben (lunch boxes sold at railway stations), breadand cake sold at the stores. In addition, by installing“food loss reduction
boxes,”which are being installed by Nestlé Japan Ltd. and Minatoku Co., Ltd.,in the bus terminal within the JR Gate Tower, we strive to reduce waste ofsnack foods, etc. that have passed their delivery date and may be discarded.

Food loss reduction box

From among our stockpile of food and drinking
water kept at each workshop in preparation
for a large-scale disaster, we donated our head
office’s stockpile food that was approaching its
expiration date to a certified NPO engaged in thefood bank business, with the aim of contributing
to local communities and reducing food loss.

Management of chemical substances

Based on the PRTR system*1 under the Act on Confirmation, etc. of Release
Amounts of Specific Chemical Substances in the Environment and Promotionof Improvements to the Management Thereof (Pollutant Release and Transfer
Register Law), we report the amount of emissions and transfer of relevant
substances and manage those substances appropriately.

Measures against soil contamination

We submit a report to the relevant organizations should any substances
exceeding the standard value set be detected in soil surveys conducted at thetime of landform changes or land sales, and will take appropriate measures as
instructed by laws and regulations and the administrative authorities.

Measures against water contamination

Some of our offices use vehicle washingequipment that falls under the category of
specified facilities under the Water Pollution
Control Act. We are working to prevent waterpollution by installing devices to treat wastewater
generated by cleaning and by regularly measuring Wastewater treatment device
the pollution status of such wastewater.

coating robot for the Shinkansen
in our Hamamatsu Workshop in
FY2016, enabling environmentallyfriendly water-based painting. We also
introduced the country's first waterbased paint coating robot for trains
on conventional lines in the Nagoya
Workshop in March 2020, enablingwater-based painting of some bodies.

Sustainable public procurement
JR Central implements a green procurement policy, prioritizing the procurementof environmentally friendly materials. To this end, we established the JR Central
URL

65

Environmental accounting

activities during the year FY2020 are as shown below.

Classification

Environment preservation cost(100 million yen) *1

Main Initiatives*1 A system whereby business operators identify the amount of chemical substances,which may be harmful to human health or the ecosystem, that were either released
from their business sites into the environment (air, water and soil) or were transferredoutside of business sites as part of waste, and report them to the national government.
The government then tabulates and discloses the amounts released and transferred,
based on such reported data and estimates.
*2 Soot and smoke emitting facilities refer to facilities installed in workplaces thatgenerate and emit soot and smoke and that can cause air pollution through such sootand smoke.

Introduction of energy-conserving rolling stock
Improved energy-efficiency at stations andoffice buildings, etc.

770.3

10.0

Energy-conserving rolling stock ratios: 100% (Shinkansenelectric railcars), 100% (conventional line (electricrailcars and diesel railcars))● New production of N700S rolling stock● Use of LED lighting for railway equipment

Development of energy-conserving rolling stock
Development related to environment
preservation along railway lines, etc.

0.0

131.4

● Energy eﬃciency of Series N700S ▲28% (more eﬃcientthan Series 300)
*Comparison between the Series 300 (traveling at 270km/h) and the N700S (traveling at 285 km/h)

Proper disposal and recycling of station andtrain refuse, etc.
Proper disposal and recycling of items generated
by workshops and construction work

0.4

96.9

INPUT
●

Globalenvironment
preservation cost

●
●

●
●

●

●

●
●

Countermeasures for noise and vibration
Proper management of environmental load
substances, etc.

91.4

47.5

862.0

286.1

●
●

●

Recycle rate of Shinkansen rolling stock: Approximately 80%
Recycle rate of uniforms: Basically 100%

Protection of the surrounding environment by modifying
noise-blocking walls and increasing their height,
shaving rail surfaces, etc.

[Approach to environment preservation cost]*1. Fractions below 10 million yen are omitted. *2. Totals do not add up due to rounding.
● Compilation is applicable only to JR Central. ● The applicable period is April 1, 2020 to March 31, 2021.
●“Environmental Accounting Guidelines 2005”, a publication of the Ministry of the Environment, was consulted with regard to aspects of style.
● Depreciation is not included in the calculations for expenditures.
● In the event of multiple-purpose expenditures, the full amount with greater environment preservation eﬀect is included in the calculation.

Scope1（thousand t）

1,600
1,400 1,362 1,338

1,432
1,303

URL

1,529 1,530 1,514 1,480 1,476

31,000Water

A4-sized
copy paper

3.016

120

kL
million㎥
million sheets
billion kWh（0.21billion kWh）（29,000kL） （1.941million㎥）（80million sheets）*For railway operation: electricity 2.03 billion kWh (Shinkansen: 1.72 billion kWh,conventional line: 0.31 billion kWh), fuel 16,000 kL (all for conventional lines)

OUTPUT
CO2 emission

1.220 millionｔ（147,000ｔ）

Refuse and waste

551,000t

Station, train, and oﬃce refuse10,000t
Construction waste
536,000t
Rolling stock waste
5,000t*The electricity and fuel CO2 emission
coeﬃcients are based on a report of thelaw (Act on Rational Use of Energy)
concerning the streamlining of energy use.
*Recycled amount reprinted. Items
conﬁrmed to have been reused bymanifest or vendor have been recorded.

Recycled

402,000t*Including internal reuse（million kWh）

1,413

1,245

3,500

1,354
1,220

1,200

3,000

2,960 2,970 2,910 2,790 2,750 2,790 2,790 2,850 2,850 2,860 2,860 2,900 2,720

2,500

1,000

2,000

800
1,500

600

1,000

400
200
0

76

78

79

80

80

80

77

73

71

74

71

73

71

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (FY)

2.50

500
0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (FY)

Amount of water used（thousand m3）

2.25

4,500
4,000

2.00

3,500
1.50

1.10 1.17 1.11 1.05 1.15 1.20 1.17 1.11 1.07 1.03 0.96 0.94
1.00

3,000

4,106

3,917

3,685 3,732

3,541 3,445

3,331 3,287 3,325

3,143 3,148

3,353
3,016

2,500
2,000
1,500

0.50

https://www.tokyoeki-1bangai.co.jp/700aluminum/

1,000
0.00

Green Procurement Guidelines to enhance coordination with our business partners
and work with them to contribute towards global environment preservation.

2.72

Fuel

(Amount of
converted crude oil)

Scope 2

Carbon intensity

Reuse of aluminum used
in a train body

Electricity

Power consumption（tCO2/million yen）

impact compared to when producing
new aluminum, since it can reduce CO2
emissions by 97% as it eliminates theuse of energy for production.
Furthermore, we aim to reduce
the generation of waste during
construction, utilize rainwater, andrecycle train tickets and station staff
uniforms, etc.

*Figures in parentheses are for consolidated subsidiaries.

Expenditures

CO 2 emmisions

Our measure to prevent air pollution in regard to boilers, which are sootand smoke emitting facilities,*2 include introducing burners that reduce
the generation of NOx, introducing devices that adopt an exhaust gas
recirculation system that reduces the generation of NOx by recirculating
combustion exhaust gas, and regularly measuring and recording theamount and concentration of soot and smoke.
Furthermore, in accordance with the Act on Rational Use andAppropriate Management of Fluorocarbons (Fluorocarbons Recovery and
Destruction Act), we manage class-1 specified equipment properly byinspecting and keeping records on it.

INPUT/OUTPUT

Notes

Investment

Total *2

Measures against air pollution

The main resources and energy utilized as wellas waste generated during JR Central’s business

Environment
conservation
cost along
railway lines

Reducing waste
The aluminum from scrapped Shinkansen rolling stock is recycled
into interior materials and interior parts of the N700S. For example,
recycled aluminum from scrapped Series 700 Shinkansen rolling stock
was used to create the concourse, pillars, ceilings, and other partsof the Tokyo Gift Palette, a commercial facility at the Yaesu North
Exit. We also provide recycled aluminum from Shinkansen rollingstock as store interior materials to The Body Shop, a U.K. cosmetics
brand (awarded the 2021 Good Design Award). Using recycled
aluminum from Shinkansen rolling stock reduces environmental

The investments, costs, and their principal effect involved in environment

Resource
recycling cost

Train body painting

Environmental load in business activities

preservation activities during FY2020 are estimated as listed below.

Research anddevelopment cost

Management of chemical substances and waste
As part of our efforts to preserve the global environment, we conduct anannual compliance survey of all workplaces in order to ensure compliancewith various environmental laws and regulations, and carry out appropriate
management of chemical substances, etc. We also conduct internal audits tocheck compliance at each workplace, and provide feedback on the results tothe workplace to ensure thorough compliance.
Furthermore, while we had been using oil-based paint containing volatileorganic compounds (VOC) for full body painting of trains on the Shinkansen
and conventional lines, we introduced the country’s first water-based paint

Activity Status for FY2020 and Environmental Accounting

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (FY)500

*Carbon intensity rose in FY2020 as operating revenues (non-consolidated) decreased
significantly due to the impact of COVID-19.

02008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (FY)

https://company.jr-central.co.jp/company/material_procurement/_pdf/green_guide_line.pdf

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

66

GovernanceBusiness Strategy*The Corporate Governance Report can be found by clicking the following URL.
Corporate Governance Information Service

URL

https://www.jpx.co.jp/listing/cg-search/index.html

Based on its policy to ensure the most appropriate system forexecuting the duties of the company, JR Central appoints threeoutside directors and four outside Audit and Supervisory Board
members. The level of independence of each outside director andoutside Audit and Supervisory Board member is judged in accordancewith the criteria for independence established by the Tokyo Stock
Exchange, Inc., in order to ensure that the opinions provided areformed from an independent standpoint and are based on the highdegree of experience and insight accumulated outside the Company.
JR Central receives opinions from outside directors at meetings ofthe Board of Directors and the Personnel Remuneration Committee,
and from outside Audit and Supervisory Board members at meetingsof the Board of Directors and the Audit and Supervisory Board,
from their independent standpoints and based on the high degree● Main concurrent posts held by outside directors
and outside Audit and Supervisory Board members

JR Central's Corporate Governance System[As of March 31, 2021]

General Meeting of Shareholders
Selection

Selection
Audit

Audit and Supervisory Board

Investigate
Audit

Management / Guidance

Audit

Subsidiaries, etc.

ReportHaruo
KasamaOverview of corporate governance system

External
The Ogaki
Kyoritsu Bank, Ltd. Auditor

Sumitomo
Corporation

External
AuditorToppan Printing
Co., Ltd.

External
Auditor

ShigeoKifujiKunihiro
Nasu

NGK Insulators,
Ltd.

President andRepresentative
DirectorMori Building
Co., Ltd.

External
AuditorSangetsu
Corporation

Outside Director(Audit and Supervisory
Committee Member)

Hyojito Co.,Ltd.

OutsideDirector

Audit and Supervisory Board members

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

accelerating decision-making, enhancing discussions by the Board of
Directors, and further clarifying the roles of directors and corporate officers,
who are responsible for business execution, in order to appropriately
respond to changes in the business environment surrounding the Company
in a timely manner. In addition, in order to make decisions in line with theactual conditions of our business, some corporate officers in charge of core
operations, including the director generals of the railway operation divisions,serve concurrently as directors. Audit and Supervisory Board members not only
attend important meetings such as the Board of Directors and the Management
Meeting, but also perform rigorous audits based on plans formulated by the
Audit and Supervisory Board through audits of head office departments, railway
operation divisions, branch offices, field offices, subsidiaries, etc., as well as
examination of the state of their business execution through exchanges of
opinions with directors, corporate officers and employees. To ensure effective
audits by Audit and Supervisory Board members, JR Central also provides
an assistant system whereby its employees are assigned as full-time staff tosupport the work of the Audit and Supervisory Board members.
Internal audits are performed by the Audit Department on the overall workof JR Central, its major subsidiaries, and other related companies from theperspective of compliance, efficiency and effectiveness of business operation.
The audits are performed by such methods as checking business materials,
contracts and other documents, observing operations, and interviewing related
persons, and the results are reported to the management. In addition, toprevent operational and labor accidents, safety audits are performed by theTransportation Safety Department, the results of which are also reported to the
management.
JR Central receives appropriate accounting audits that are based on
generally accepted audit standards by Deloitte Touche Tohmatsu LLC, which
has been selected as its accounting auditor.
Audit and Supervisory Board members, internal audit departments, andthe accounting auditor cooperate with each other by exchanging information
periodically or as necessary, and receive necessary information from eachdepartment involved in internal control to confirm the status of implementationof each item stipulated in the Fundamental Corporate Governance Policies.

Audit and Supervisory Board members

67

Name

Title

Principal activity

TakashiSaeki

He attended all 12 meetings of the Board of Directors held in FY2020. In the Board of Directors’
meetings, he has stated his opinions based on his experience in corporate management and otherexpertise. He also attended the Personnel Remuneration Committee and expressed his opinions
based on his extensive experience and deep insight into corporate management. In addition,
through various briefing opportunities prior to Board of Directors’meetings, he has provided
valuable advice on economic and social developments and overall business management. Throughthe abovementioned activities, he has contributed to the maintenance and further development of
the sound management of the Company from the standpoint of an independent outside director.

Haruo
KasamaHe attended all 10 meetings of the Board of Directors held since his appointment on June 23,
2020. In the Board of Directors’meetings, he has stated his opinions based on his experience as apublic prosecutor and lawyer and other expertise. He also attended the Personnel Remuneration
Committee and expressed his opinions based on his extensive experience and deep insight in law. In
addition, through various briefing opportunities prior to Board of Directors’meetings, he has provided
valuable advice on economic and social developments and overall business management. Throughthe abovementioned activities, he has contributed to the maintenance and further development of
the sound management of the Company from the standpoint of an independent outside director.

Taku
OshimaHe attended nine out of 10 meetings of the Board of Directors held since his appointment on June23, 2020. In the Board of Directors’meetings, he has stated his opinions based on his experience incorporate management and other expertise. He also attended the Personnel Remuneration Committee
and expressed his opinions based on his extensive experience and deep insight into corporate
management. In addition, through various briefing opportunities prior to Board of Directors’meetings, hehas provided valuable advice on economic and social developments and overall business management.
Through the abovementioned activities, he has contributed to the maintenance and further developmentof the sound management of the Company from the standpoint of an independent outside director.

Audit

Taku
Oshima

JR Central’s Board of Directors is composed of 15 members (including threeoutside directors) and is chaired by the company chairman. JR Central also
employs an auditor system, and its Audit and Supervisory Board consists of fivemembers (four of whom are outside auditors). (The figures are as of June 23,
2021.)The Board of Directors meets at least once a month to make legal andappropriate decisions upon fully discussing matters stipulated by the law
as well as important management matters. It also monitors the work of
directors. A Management Meeting is held for in-depth discussion of importantmanagement issues. Chaired by the president, the Management Meeting is
attended by all full-time directors, Audit and Supervisory Board members, andsome corporate officers. By deliberating on a wider range of management
matters ahead of Board of Directors’meetings, discussions at the subsequent
Board of Directors’meetings are enhanced. We request members of the
Audit and Supervisory Board to attend meetings of the Board of Directors,
the Management Meeting and other important meetings, as we endeavor toensure the legality of management measures during the deliberation process.
In addition to these initiatives, each director and member of the Audit andSupervisory Board performs self-assessment on the effectiveness of the Boardof Directors, the results of which are discussed by the Board to further enhance
its functions. Further, JR Central strives to ensure the appropriate executionof business by managing and providing guidance to subsidiaries, etc. where
necessary.
From the perspective of ensuring the improvement of objectivity andtransparency in the determination of personnel changes and the remunerationof officers, JR Central has established the Personnel Remuneration Committee
consisting of a total of four members: three independent outside directors andthe president (chaired by an outside director). The Committee deliberates twicea year with the attendance of all of its members prior to the decision of theBoard of Directors on personnel changes and remuneration. Decisions made by
the Board of Directors regarding the determination of personnel changes andremuneration are based on the content of deliberation by the Committee.
Although we introduced the corporate officer system in May 2003,
we introduced an executive system in June 2012 that is aimed at further[FY2020]

Directors

Cooperate

Internal Audit Department (Audit Department / Transportation Safety Department)

Takashi
Saeki

Directors

Audit

Name of othercompany, etc.

of experience and insight accumulated outside the Company. In
addition, through the various opportunities to provide briefing on ouroperations prior to Board of Directors’meetings, they provide us withvaluable advice on economic and social developments and overallbusiness management.
The advice given by outside directors and outside Audit andSupervisory Board members are utilized to perform audits by Audit
and Supervisory Board members, internal audits, safety audits, andaccounting audits, as well as to implement the items stipulated in theFundamental Corporate Governance Policies.
Each outside director and outside Audit and Supervisory Board
member is registered with the Tokyo Stock Exchange as anindependent officer with no risk of conflict of interest with generalshareholders.

● Activity status of outside directors and outside Audit and Supervisory Board
members

Cooperate

Accounting Auditors

Cooperate

Management Meeting
Head Oﬃce, Regional oﬃces, Field oﬃces

Name

Selection

Personnel Remuneration
Committee

President and Representative Director

Creating“Social Value” Corporate Data

Outside directors and outside Audit and Supervisory Board members

JR Central strives to enhance its corporate governance to ensure the soundness,
efficiency and transparency of its management, to implement the long-term
development of the company, and to continuously enhance corporate value. We
have announced our stance on, and the initiatives put in place in relation to, theCorporate Governance Code in the Corporate Governance Report.*

Board of Directors

Generating“Economic Value”

Governance

Creating“Social Value”－Governance－

Corporate
Governance

Highlight

He attended 11 out of 12 meetings of the Board of Directors and 13 out of 14
meetings of the Audit and Supervisory Board held in FY2020. In the Board of
Directors’and Audit and Supervisory Board meetings, he has stated his opinions
based on his experience in transportation administration and other expertise.
He attended all 12 meetings of the Board of Directors and all 14 meetings ofFumio
the Audit and Supervisory Board held in FY2020. In the Board of Directors’andYamashita Audit and Supervisory Board meetings, he has stated his opinions based on his
experience in police administration and other expertise.
He attended all 12 meetings of the Board of Directors and all 14 meetings ofShigeothe Audit and Supervisory Board held in FY2020. In the Board of Directors’andAudit and Supervisory Board meetings, he has stated his opinions based on his
Kifujiexperience as a public prosecutor and lawyer and other expertise.
He attended all 12 meetings of the Board of Directors and all 14 meetings ofKunihiro the Audit and Supervisory Board held in FY2020. In the Board of Directors’andAudit and Supervisory Board meetings, he has stated his opinions based on his
Nasuexperience as a lawyer and other expertise.

HajimeIshizuEnsuring the effectiveness of the Board of Directors and the Audit and Supervisory Board
The appointment of directors is conferred to General Shareholders
Meetings following a resolution of the Board of Directors concerning theappropriate election of candidates deemed to be the most fitting for the roleas selected based upon a general consideration of their abilities, knowledge,
work history, etc., irrespective of age, sex or nationality. The number of
directors elected, the division of director roles, etc., are determined based on
a comprehensive consideration of the progress of ongoing projects based ona policy of establishing the most appropriate system for the execution of theCompany’s operations. From the perspective of ensuring the improvement ofobjectivity and transparency in the determination of personnel changes, etc.
of officers, JR Central established the Personnel Remuneration Committee
consisting of a total of four members: three independent outside directors
and the president (chaired by an outside director). The Committee deliberates
twice a year with the attendance of all of its members prior to the Board of
Directors’decision on personnel changes, etc. Decisions made by the Boardof Directors regarding the determination of personnel changes, etc. are basedon the content of deliberation by the Committee.
The important concurrent positions held by directors and Audit andSupervisory Board members are as described in the business reports andGeneral Shareholders Meeting Reference Materials. All currently held

positions bear no hindrance on the director or Audit and Supervisory Board
member’s ability to fulfill the roles and responsibilities of such positions for
the Company.
The Company holds meetings of the Board of Directors at least once amonth to make legal and appropriate decisions upon fully discussing matters
stipulated by law as well as important management matters. The execution ofduties by directors is appropriately monitored by having directors report backon business functions under their charge when needed. JR Central receives
valuable broad-view advice on management from outside directors, which isbrought into consideration in regulating the management of the Company.
Furthermore, each director and Audit and Supervisory Board member
performs self-assessment of the effectiveness of the Board of Directors, theresults of which are discussed by the Board to further enhance its functions.
Additionally, round-table conferences for opinion exchanges between
outside directors, outside Audit and Supervisory Board members (part-time)and members of management are held ahead of meetings of the Board of
Directors in order to further improve the effectiveness of the Board.
Based on the above details, we find that, at meetings of the Board of
Directors, the effectiveness of the entire Board of Directors is ensured to asatisfactory degree.
CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

68

Business Strategy

Highlight

Generating“Economic Value”

Creating“Social Value” Corporate Data
GovernanceCorporate Governance

Remuneration for officers
Directors’remuneration is comprised of fixed basic compensation
paid on a monthly basis and a bonus paid in June each year. The
basic compensation amount is determined through a comprehensive
assessment of a director’s position, length of service, and otherfactors, while the bonus amount is determined mainly in considerationof the operating performance such as ordinary income, as well as theperformance of ensuring the safety of railways, shareholder return,and other factors. The specific bonus amount for each individual isdetermined in consideration of the degree of responsibility attachedto the director’s position and the performance of their assigned
duties. The ratio of the basic compensation and bonus we use asa guide is 3 to 1. The operating performance for FY2020 and otherfiscal years is as described in the financial data on pages 43 to 46.
Outside directors’remuneration consists only of the fixed basic
compensation paid on a monthly basis.
The Board of Directors has passed a resolution on the policy on
determining the above directors’remuneration, as well as to leave
the decision of the specific remuneration amount for each director
to the discretion of President and Representative Director Shin
Kaneko, who has knowledge of the performance of duties assigned
to each director. For FY2020, however, bonuses will be unpaid sincesignificant losses have been recorded. A decision was made at the25th Ordinary General Meeting of Shareholders held on June 22,2012 to keep the total annual amount of directors’remuneration at
1.2 billion yen or less (of which remuneration for outside directors is
50 million yen or less). The amounts are ultimately decided by thepresident within these limits. The number of directors at the time of
the conclusion of this Ordinary General Meeting of Shareholders was
14 (three of whom were outside directors).
The remuneration of Audit and Supervisory Board members
consists only of fixed basic compensation paid on a monthly basis,and the appropriate amount is determined via discussions among
Audit and Supervisory Board members. A decision was made atthe 20th Ordinary General Meeting of Shareholders held on June
Policy concerning cross-shareholdings
Our strategy for cross-holdings is based on a general considerationof the necessity thereof, and is grounded in the belief that maintaining
and bolstering long-term and stable business relationships throughholding other companies’stock facilitates our operations andenhances our corporate value over the medium to long term. If anyof our cross-holdings are deemed to be unnecessary in light of thispolicy, we will assess and possibly divest from them.
Additionally, our Board of Directors examines whether it isFundamental Corporate Governance Policies
22, 2007 to keep the total annual amount of Audit and Supervisory
Board members’remuneration at 250 million yen or less. The final
amount is set within this limit. The number of Audit and Supervisory
Board members at the time of the conclusion of this Ordinary General
Meeting of Shareholders was five.
The Company established the Personnel Remuneration Committee on
February 1, 2021. From the perspective of ensuring the improvementof objectivity and transparency in the determination of remunerationof officers, the Committee consists of a total of four members: three
independent outside directors and the president. The Committee
deliberates on the policy on deciding officers’remuneration twice ayear with the attendance of all of its members, prior to the Board of
Directors’decision on remuneration. Decisions made by the Board of
Directors regarding the determination of remuneration are based on
the content of deliberation by the Committee. Delegated by the Boardof Directors, the president decides the specific amounts of directors’
remuneration. As the amount of remuneration of each director isdetermined through the abovementioned procedures, the Board of
Directors deems that the amounts conform with the decision policy.

Total amount of remuneration by officer classification, total amountof remuneration by type, and number of target officers [FY2020]
Basic Compensation

Classification

Directors(Excluding outside
directors)

Audit and Supervisory
Board members(Excluding outside Audit andSupervisory Board members)

Outside Officers

Numberof target
officers

Totalamount

Bonus

NumberTotalof target
officers amount(Million yen) (Number of (Million yen)persons)

Total
amount of
remuneration(Million yen)

18

569

0

0

569

2

47

-

-

47

9

141

-

-

141

Note: Directors (excluding outside directors) have voluntarily returned 10% of their basic
compensation from May 2020 to March 2021.

beneficial to retain specific cross-holdings after scrutinizing them inlight of the medium- to long-term economic rationale and outlook, thepurpose of continuing to own such cross-holdings, and other factors.
Furthermore, in exercising the voting rights of cross-held shares, JR
Central closely examines the details of each agenda and decides how
to vote in consideration of the improvement of corporate value of theCompany over the medium to long term, the continuous growth of its
business partners, etc.

Policy for promoting constructive dialog with shareholders
JR Central positions the General Meeting of Shareholders as animportant opportunity for dialog with shareholders, and strives
to improve the quality of question-and-answer sessions in themeeting as a means of contributing to sustainable growth andenhancing corporate value over the medium to long term. All
dialog with shareholders is overseen by the general manager of the
Administration Department, and questions, opinions and requests
from shareholders are responded to, to the extent reasonable, in theform of an individual meeting or over the telephone, etc.
Of this, dialog with institutional investors is overseen by the director
general of the Corporate Planning Division, and the IR team that isplaced in the Business Administration Department, Corporate Planning
Division is in charge of the dialog response. The IR team strives tofurther improve shareholder dialog by organically coordinating with
the Administration, Finance, Legal and other Departments. It also
strives to improve upon dialog measures by not only holding individual
meetings but also implementing conference calls and facility tours,
etc., where necessary, in addition to holding quarterly financial results
briefings. Dialog response is made, to the extent reasonable, together
with members of management and directors or Audit and Supervisory
Board members, based on a general consideration of the requests
and interests put forth by the institutional investor. We conduct aquestionnaire survey of institutional investors after individual meetings

69

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

and financial results briefings, and analyze the feedback and investor
needs obtained to be used to enhance disclosure, consider thecontent of briefing materials, and enrich IR activities.
We also strive to enrich the broader provision of information
to shareholders by posting the information presented at financial
results briefings on TDnet and our website, enhancing the content
of the convocation notice of the General Meeting of Shareholders,and sending reports to shareholders. Moreover, we work to ensurethat a sufficient degree of information concerning decisions madeon important measures and important capital investments reaches
as large a number of stakeholders as possible using the mass media
services to deliver detailed information at press conferences held by
the president, and by presenting such information to the press.
The content of dialog with shareholders is reported to membersof management and, if necessary, feedback is given to the Board of
Directors.
Main activities (FY2020)
・Number of dialogs held with institutional investors and analysts: ・Number of financial results briefings and small meetings
with institutional investors and analysts:

・Number of items of feedback from institutional investors: 

JR Central passed a resolution on the Fundamental Corporate Governance Policies* at its Board of Directors’meeting.
*Please refer to the following URL for the Fundamental Corporate Governance Policies.

URL

https://global.jr-central.co.jp/en/company/about/governance.html

Compliance & whistleblowing system
JR Central not only stipulates internal regulations basedon law, etc., but also conducts employee education onvarious occasions with the aim of thoroughly complying
with the law, etc., when executing business. In addition,
we have also established a whistleblowing system, whichenables employees, etc. to report any violation of laws
or regulations they discover in the course of their workby providing contact points not only within the Company
but also in an external law firm. We make thoroughefforts to protect whistleblowers by allowing anonymous
whistleblowing and clearly indicating in our internal
regulations that the names of whistleblowers will not be
disclosed and that whistleblowers will not be subject todisadvantageous treatment for whistleblowing. We also
strive to disseminate information of the system by posting
fliers in all workplaces describing the whistleblowing
system, the protection of whistleblowers, and contact
information of the contact points.

Risk management system
JR Central has established the Railway Safety Promotion
Committee, etc., at the head office, railway operation
divisions, branch offices, and in each area from theperspective of preventing train and labor accidents anddisasters, and formulates and promotes safety measuresthrough integrated organization that extends from the head
office to each field office.
JR Central also manages a control center, which plays
a key role in information communication, on call 24 hours

a day at each railway operation division to respond to
emergencies, such as accidents and disasters, and has alsoestablished a fast-response restoration structure in which
employees can be gathered at any time according to thescale or impact of an accident or disaster. Additionally, in
preparation for emergencies such as large-scale natural
disasters, we have established the Second General Control
Center that can substitute for the General Control Centerfor the Tokaido Shinkansen.

Response to internal control related to financial reporting
We periodically investigate the system, state of execution,etc. of internal control related to financial reporting within
JR Central and JR Central Group companies in accordancewith the basic framework offered by the BusinessAccounting Council, in order to confirm that they are

effectively functioning.
We are also engaged in efforts to maintain the level ofinternal control related to financial reporting by providing
feedback from the investigation to our operations.

Capital policy and approach to shareholder return
We will finance our projects by issuing corporate bonds
and borrowing, in addition to a long-term loan totaling 3
trillion yen acquired using the Fiscal Investment and Loan
Program (FILP) to promote the construction of the Chuo
Shinkansen. We do not plan to use treasury stock or pursue
capital increase at this point.
Due to the nature of the railway business, which operates
from a long-term perspective, a specific dividend amountis determined considering the business environmentand results of each fiscal year based on the Company’sconsistent and basic policy for the continuation of stabledividends. JR Central considers that shareholder returns
through dividends are appropriate in principle, and does

not plan to purchase additional treasury stock at this point.
When we say“from a long-term perspective,”we meanthat we will not cut corners to take the necessary steps toensure that our rail services continue to operate steadily
over the long term. For example, we will undertake suchmeasures as large-scale renovations as well as derailment
and deviation countermeasures for the Shinkansen alongwith working on the Chuo Shinkansen, a major long-term
project. We believe that continuing a stable dividends
policy is necessary to gain shareholders’understanding
toward the above approach. We will maintain this principleof stable dividends during the construction of the Chuo
Shinkansen.

213
9
186
CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

70

Business Strategy

Highlight

Generating“Economic Value”

Creating“Social Value” Corporate Data
Governance

Respond to the Corporate Governance Code
JR Central has announced its stance on, and the initiatives it has
put in place, in relation to the Corporate Governance Code(hereafter, “the Code”) found within Corporate Governance
Report*.

Further, The reasons for not implementing the principles of thecode and matters disclosed based on each principle of the code
are as follows.

Principle 4-1
Roles and responsibilities of
the Board of Directors (1)2-4 1* Corporate Governance Report can be found on the Japan Exchange Group, Inc. website.

Principle 2-6

T he r e ason s for not i m pl em ent ing t he pr i n c i p l e s o f th e c o d eGeneral principle

Principle 2-4
Ensuring internal diversity
including the utilization of women

Supplementary
principle

Supplementary
principle

Disclosed contents

Since we do not offer a corporate-type defined benefit corporate pension plan, this principle does not apply to us.
We use a defined contribution pension plan instead. We provide employees who participate in the defined
contribution pension plan with adequate training on asset management since the plan affects their asset
accumulation.

Roles of Corporate Pension Funds
as Asset Owners[1] • JR Central was founded in 1987 as part of the reform of the national railway system with a mission of
integrally maintaining, developing and future-proofing the Tokaido Shinkansen, which serves as Japan's
main transportation artery linking Tokyo, Nagoya and Osaka, and the conventional line network in the Tokai
region with a central focus around Nagoya and Shizuoka.
Furthermore, JR Central established its management philosophy to “Contribute to the developmentof Japan’s main transportation artery and social infrastructure” to reflect the direction the Company
should aim at in line with the expanding scope of business activities going forward, including
the operation, etc. of the three generations of railways, i.e. conventional lines, the Tokaido
Shinkansen, and the Chuo Shinkansen. This management philosophy can be found on our website.

• In the railway business, the core pillar of JR Central’s business, ensuring safe and reliable transportation is an issue ofSupplementary
principle

4-1 2

Principle 5-2
Establishing and Disclosing
Business Strategies andBusiness Plans

JR Central has been striving to hire human resources with the skills and capabilities necessary to support our future businesswithout making distinctions in terms of nationality, etc. Therefore, it is our recognition that we are not in a situation where we must
implement measures or set targets for the specific appointment of foreign nationals in managerial posts.
We also believe that long-term employment will prove to be effective as high levels of most railroad technologies can only beachieved through the accumulation of experience. Therefore, we do not recruit mid-career employees en masse, and recognize that
we are not in a situation where we must implement measures or set targets for the appointment of mid-career hires in managerial
posts at this point. However, we will consider doing so accordingly if the need arises due to various measures in response tochanges in the business environment surrounding the Company.

utmost importance, and all aspects of our business, from our daily business operations, to employee training and capital
investment, are implemented with the highest priority given to increasing the level of reliability of the services we provide
and, as such, we do not implement a system of management whereby company-wide mid-term business plans areformulated and managerial targets are pursued in a manner that can neatly serve as a cross-sectional look at the stateof the business at set moments.
• While JR Central neither formulate mid-term management plans nor establish numerical targets in this manner, theCompany does promote its railway business from a long-term perspective. Specifically, in addition to the constructionof the Chuo Shinkansen, which is now underway, other measures that require a long-term capital investment, such aslarge-scale renovation for the Tokaido Shinkansen, the implementation of earthquake countermeasures, and plans to
upgrade rolling stock in service, are established with a long-term perspective in mind, and we are steadily proceeding
forward these projects. Plans and results of other major measures are announced publicly as appropriate, and steadyprogress continues to be made in these areas. We will continue to announce annual income and expenditure plans, key
measures, and capital investment plans each year in light of our immediate management environment, and will continue
to steadily enhance our management foundation in order to firmly maintain a sound management outlook based on
efficient operational management stemming from the securing of safe and reliable transportation.

URL

Integrated Report
URL

Cross-shareholdings

Related party transactions

Supplementary
principle

2-4 1[4] It is our policy to appoint individuals who are most fit to perform the given duties for the company as directors
and Audit and Supervisory Board members. In accordance with this policy, we select candidates basedon a comprehensive review of their abilities, knowledge, work history, etc., regardless of age, sex andnationality, via a resolution of the Board of Directors and appoint them upon approval at a General Meeting of
Shareholders. In appointing or dismissing a representative director, we follow the same policy as well as theprovisions of relevant laws and the rules of the Board of Directors.
From the perspective of ensuring the improvement of objectivity and transparency in the determinationof personnel, etc. of officers, JR Central established the Personnel Remuneration Committee comprising
all independent outside directors (3 persons) and the President. The Committee is held twice a year for
deliberation, attended by all committee members, prior to the personnel-related decisions of the Board of
Directors, and decisions made by the Board of Directors regarding the determination of personnel, etc. arebased on the content of deliberation by the Committee.

Principle 3-1
Full disclosure[5] Director and Audit and Supervisory Board member candidates are appropriately selected in consideration of
their career background provided in the General Meeting of Shareholders material. We disclose information
concerning the change of a representative director as required by the Tokyo Stock Exchange’s Timely
Disclosure Rules.

Supplementary
principle

3-1 3

The Integrated Report can be found at the following

https://company.jr-central.co.jp/others/action_plan/_pdf/woman.pdf

URL

https://company.jr-central.co.jp/others/action_plan/_pdf/nurturing.pdf

At the same time, JR Central has been making efforts to enhance the work environment by creating an environment where
employees can be motivated to work with enthusiasm in active roles over many years. For example, to support employees’ childcare,
we offer our employees longer childcare leave than the statutory period set, as well as flexible work arrangements, a systemdesigned to rehire former employees who have resigned for childcare, etc., and a program that deems employees’ childcare leave
until their child is one year of age as attended work in terms of eligibility for promotion assessments. We also offer various subsidies.
We will continue to actively make efforts to enhance various programs so that employees, irrespective of gender, can be motivated towork with enthusiasm in active roles over many years.
Please refer to the following URL for details of JR Central’s initiatives in ensuring diversity and other efforts concerning humanresources, which are described in “Human Resources Development” of the Integrated Report.
Integrated report: https://global.jr-central.co.jp/en/company/ir/annualreport/

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

[1] Initiatives in sustainability
JR Central’s specific initiatives in sustainability are described in “Positive Cycle of “ESG Management””
and “JR Central’s “ESG Management,”” as well as “Building Safe and Resilient Infrastructure,” “Building
Relationships with Material Suppliers,” “Improving the Convenience of Facilities,” “Cooperation with Local
Communities,” and “Contribution to Global Environment Preservation” in the Integrated Report.
[2] Investments in human capital and intellectual property
JR Central’s investments in human capital and intellectual property are described in “Human Resources
Development” and “Technological Development to Support JR Central’s Growth” in the Integrated Report.
[3] Risks and opportunities related to climate changeWith regard to climate change, we have been making efforts to further reduce CO2 emissions in accordancewith the government’s 2050 carbon-neutrality policy. We also endorsed the recommendations of the TCFD in
May 2021. By analyzing the risks and opportunities related to climate change, we will strive to ensure stablebusiness operation over the long term, as well as contributing to the achievement of a sustainable society. For
further information, please refer to “Endorsement of TCFD Recommendations and Initiatives to Be Taken” in
the Integrated Report.
URL

Positive Action Plan for Promoting Women’s Empowerment
 e n e ra l E m p l oy e r Ac t i o n P l a n s i n Ac c o rd a n c e w i t h t h e Ac t fo r M e a s u re s to S u p p o r t t h eGDevelopment of the Next Generation

71[3] Details on the policy and procedures concerning the setting of Director compensation are described in“Disclosure of Policy for Determining the Amount of Compensation and the Calculation Method for Such”
under II.1. Matters Concerning the Composition and Operation of the Organization in the Corporate
Governance Report.

At JR Central, we believe that it is extremely important from the perspective of management to employ diverse human resources
and maximize their capabilities to drive sustainable corporate growth. With this in mind, in our recruitment process we carry out
employment without making distinctions in terms of gender, nationality, or the like.
With regard to women, we have actively employed female employees in response to the revision of the Labor Standards Act in
1997, which prohibited late-night work by women in principle. As a result of appropriately evaluating employees’ competence andskills without regard to gender and appointing them to jobs that suit their evaluations, the number of female employees as of theend of FY2020 was approximately 2,130 (of whom 122 were in managerial posts). In addition to the appointment of JR Central’s
first female corporate officer in June 2021, women play an active role in various lines of duty, such as President of an affiliate andGeneral Managers and Managers of the Head Office.
In order to further promote women’s participation and career advancement, we established a project team for promoting women’s
empowerment in FY2020 under the General Manager of the Personnel Department. In order to enhance the quality of humanresources, it is essential to become a company where all employees, irrespective of gender, can fully demonstrate their abilities
with enthusiasm. Especially for us as a railway company aiming to provide services that would satisfy a wide range of customers,
we believe it is important for a diverse variety of employees, irrespective of gender, to exchange ideas and exercise their abilities
to the full. Based on this concept, we established the Positive Action Plan for Promoting Women’s Empowerment and the General
Employer Action Plan in Accordance with the Act for Measures to Support the Development of the Next Generation, following
discussions in the women’s empowerment project. The Positive Action Plan, which covers FY2021 to FY2025, includes numericaltargets such as a hiring rate of women of at least 25%, and at least 1.5 times more female managers (Assistant Managers andSupervisors or higher) compared to the end of FY2020. We will make efforts to achieve these goals going forward. Please refer tothe following for details on the numerical targets and our efforts in human resources development based on the targets.
URL

https://company.jr-central.co.jp/company/achievement/capital-investment/[2] The basic outlook on corporate governance is described in I.1. Basic Outlook in the Corporate Governance Report.

All transactions involving Directors which may pose a conflict of interest, and transactions between Directors andthe Company, require the approval of, and reporting to, the Board of Directors as stipulated in relevant laws andregulations and rules governing the Board of Directors. Every year confirmations are made on a regular basis with
officers as to whether related party transactions have been made between officers or relatives and the Company.

Principle 1-7

Principle 2-4

Disclosed contents[1] Policy concerning cross-shareholdings
Our strategy for cross-holdings is grounded in the belief that maintaining and bolstering business relationships throughholding other companies’ stock facilitates our operations and enhances our corporate value over the medium to long term. If
any of our cross-holdings are deemed to be unnecessary in light of this policy, we will assess and possibly divest in them.
[2] Assessment of cross-holdings
Our Board of Directors examines whether it is beneficial to retain specific cross-holdings after scrutinizing them in light of themedium- to long-term economic rationale and outlook, purpose of owning such cross holdings, etc.
[3] Criteria for the exercising of voting rights
In terms of the exercising of cross-shareholding voting rights, JR Central closely examines the content of each resolution
and decides how to vote in consideration of improving the corporate value of the Company over the mid- to long-term and thesustainable growth of business partners, etc.

Principle 1-4

Ensuring internal diversity
including the utilization of women

Key Measures and Capital Investment
URL

Supplementary
principle

https://global.jr-central.co.jp/en/company/ir/annualreport/• Specific measures to be implemented in the current business year based on this Management Philosophy
are described in Key Measures and Capital Investment, and can be found at the URL below.

Disclosu r e based on C or por at e G ov er nanc e C o d e p ri n c i p l e s
General principle

https://global.jr-central.co.jp/en/company/about/outline.html• In the railway business, JR Central sets the highest priority on ensuring safe and reliable transportation. JR
Central's fundamental policy is to stably and fully execute the long-term social mission described in detailabove through the continuous efforts of providing services that are preferred by customers as well as thestreamlining of work, etc. This Management Philosophy is included in the Business Strategy of the Integrated
Report, and can be found at the following URL.

Principle 4-1
Roles and responsibilities of theBoard of Directors (1)Principle 4-9
Independence standards andqualification for Independent
Directors

Supplementary
principle

4-1 1

https://global.jr-central.co.jp/en/company/ir/annualreport/

The Board of Directors is involved in decision making processes concerning matters stipulated in relevant laws
and regulations and the articles of incorporation, matters put in their charge at a general shareholders’ meeting,and important matters related to the execution of business. A specific outline of such matters is established in therules governing the Board of Directors.
Further, the Board of Directors clearly defines the division of duties and job functions for each department
based on internal regulations, clarifies the scope of authority for Directors and corporate officers, while also
defining the division of roles of Directors and areas in which corporate officers are put in charge.
The Company determines the level of independence of Outside Directors and Outside Audit and Supervisory
Board Members based on the criteria for independence established by the Japan Exchange Group, Inc. in orderto ensure that the opinions provided by Outside Directors and Outside Audit and Supervisory Board Members on
matters raised are formed from an independent standpoint, and are based on the high degree of experience andinsight accumulated outside the Company.

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

72

Business Strategy

Highlight

Generating“Economic Value”

Creating“Social Value” Corporate Data
GovernancePrinciple 4-10
Utilization of arbitrary mechanism

Supplementary
principle

4-10 1

Supplementary
principle

4-11 1

Principle 4-11
Premises for ensuring theeffectiveness of the Board of
Directors and the Audit andSupervisory Board
Supplementary
principle

4-11 2

Supplementary
principle

4-11 3

Principle 4-14
Director and Audit andSupervisory training

Supplementary
principle

4-14 2

From the perspective of ensuring the improvement of objectivity and transparency in the determination of
personnel and the remuneration of officers, JR Central established the Personnel Remuneration Committee
consisting of a total of four members: 3 independent Outside Directors (Takashi Saeki, Haruo Kasama and Taku
Oshima) and the President (Shin Kaneko). The Committee is held twice a year for deliberation, attended by allcommittee members, prior to the decision of the Board of Directors regarding personnel and remuneration. The
independent Outside Directors provide opinions based on their past experience in corporate management or
careers as prosecutors and lawyers. Decisions made by the Board of Directors regarding the determination of
personnel and remuneration are based on the deliberations of the Committee. The secretariat is placed within the
Secretarial Department.
The appointment of Directors is conferred to General Shareholders Meetings following a resolution of the Boardof Directors concerning the appropriate election of candidates deemed to be the most fitting for the role asselected based upon a general consideration of their abilities, knowledge, and work history, etc., regardless ofage, sex and nationality. The number of Directors elected, and the division of Director roles, etc. is determinedbased on a comprehensive consideration of the level of progress of each project at the time based on a policy of
establishing the most appropriate management structure for the execution of the Company’s business activities.
Furthermore, from the perspective of ensuring the improvement of objectivity and transparency in thedetermination of personnel, etc. of officers, JR Central established the Personnel Remuneration Committee
consisting of a total of four members: 3 independent Outside Directors and the President. The Committee is held
twice a year for deliberation, attended by all committee members, prior to the decision of the Board of Directors
regarding personnel, etc. Decisions made by the Board of Directors regarding the determination of personnel,
etc. are based on the deliberations of the Committee.
Of the director candidates, candidates for internal directors have been nominated for having the skills, knowledge
and career history required to powerfully tackle JR Central’s various management issues, such as ensuring
safe and reliable transportation of the Tokaido Shinkansen and conventional lines and steadily promoting the
Chuo Shinkansen project. They are expected to do so by exercising strong leadership to lead the administrative
and technological departments and the overseas high speed railway project as well as the departments andorganizations of the Conventional Lines Operations Divisions and the Chuo Shinkansen Promotion Division
toward realizing our management philosophy of contributing to the development of Japan’s main transportationartery and social infrastructure at a higher level, with the ultimate aim of maintaining the sound management andfurther development of the Group.
Candidates for outside directors have been nominated for having the skills, knowledge and career history
required to perform an outside director’s important role of appropriately supervising the work of directors.
They are expected to do so by providing valuable advice on the economy, social situation and all aspects ofmanagement with regard to corporate management, finance, accounting, the maintaining of compliance, andthe development of local communities from a legal standpoint, including corporate governance and compliance,
based on their broad-ranging experience gained outside the Company and their deep insight.
The specific skills, knowledge and career history of each director are described in the Appendix.
Upon our next nomination, we plan to disclose the skills, etc. of each director in a skills matrix.
The status of Directors and Audit and Supervisory Board Members holding important concurrent positions
is as described in business reports and General Shareholders Meeting Reference Materials. All currently held
positions bear no hindrance on the Director or Audit and Supervisory Board Member’s ability to fulfill the roles
and responsibilities of such a position for the Company.
The Board of Directors of the Company meets once or more a month to make legal and appropriate decisions
upon fully discussing issues stipulated by law as well as important matters, following conscientious briefings
that are given to bring all concerned up to speed on the policy objectives discussed and the progress on suchmatters. Further, the status of the execution of duties by Directors is monitored by having the Directors reportback on business functions under their charge when needed. JR Central receives valuable broad-view advice
on management from Outside Directors, which is brought into consideration in regulating the management of theCompany.
Directors as well as Audit and Supervisory Board members also self-evaluate the effectiveness of the Board of
Directors, and after discussing the self-evaluation results and other matters at the board meetings, implement
initiatives that will help improve the functions of the Board of Directors. Additionally, round-table conferences for
opinion exchanges between Outside Directors, Outside Audit and Supervisory Board Members, and members ofmanagement are set up ahead of meetings of the Board of Directors in order to further improve the effectivenessof the Board of Directors.
Through the above-mentioned initiatives, we find at meetings of the Board of Directors that the effectiveness ofthe entire Board of Directors is ensured to a satisfactory degree.
All Directors and Audit and Supervisory Board Members of the Company have the sufficient ability and insightto fulfill their roles and responsibilities, and perform their duties with an appropriate sense of responsibility as
entrusted by all shareholders, while continuing to refine their skills and knowledge by actively participating inexternal training programs, etc.
JR Central takes necessary measures to ensure that all Directors and Audit and Supervisory Board Members
perform the duties required of them, such as in instances where relevant laws and regulations are revised, forexample, by making the content of such revisions commonly known through meetings, etc., and by holding
training events to share management issues faced by the Company so that the Company can make decisions
concerning such issues in an appropriate manner.
JR Central has established a Policy for Promoting Constructive Dialog with Shareholders as follows.
• JR Central positions the General Meeting of Shareholders as an important opportunity for dialog with shareholders andPrinciple 5-1
Policy for constructive dialog withshareholders

73

strives to improve the quality of questions and answers sessions in the meeting as a means of contributing to sustainablegrowth and enhancing corporate value over the mid- to long-term. All dialog with shareholders is overseen by theGeneral Manager of the Administration Department, and questions, opinions and requests are fielded from shareholders
and responded to in the form of an individual meeting or over the telephone, etc. where it is reasonable to do so.
• Of this, dialog with institutional investors is overseen by the Director General of the Corporate Planning Division, and the
IR team that is placed in the Management Supervision Department, Corporate Planning Division is in charge of the dialog
response. The IR team strives to further improve shareholder dialog by organically coordinating with the Administration,
Finance, Legal and other Departments. It also strives to improve upon dialog measures by not only holding individual
meetings but also implementing web conference and facility tours, etc., where necessary, in addition to holding quarterly
financial results briefings. Dialog response is made, to the extent reasonable, together with members of management andDirectors or Audit and Supervisory Board members, based on general consideration of the requests and interests put forth
by the institutional investor.
• We also strive to enrich the broader provision of information to shareholders by sending reports on information presented
at financial results briefings, on top of posting this information on TDnet and our website and enhancing the content of
the convocation notice of the General Meeting of Shareholders. Moreover, we work to ensure that a sufficient degree of
information concerning decisions made on important measures and important capital investments reaches as large anumber of stakeholders as possible using the mass media services to deliver detailed information at press conferences
held by the President, and by presenting such information to the press.
• The content of discussions with shareholders is reported to members of management and, if necessary, feedback is
given to the Board of Directors.
• Under no circumstances is insider information communicated during discussions with shareholders. Furthermore, the14-day period in the lead up to the day in which financial results are announced each quarter is designated as a silent
period, in which the Company refrains from discussing financial results.

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

Appendix
Position

Name

Abilities, knowledge, work history, etc. of Directors

Koei Tsuge

Following his appointment as Director of the Company in 2002, Mr. Koei Tsuge demonstrated superior management skills throughhis positions as General Manager of the Personnel Department and the Secretarial Department. Following his appointment as
President and Representative Director in 2014, he strengthened the Company’s management infrastructure through the maintenanceand development of the railway business, the promotion of the Chuo Shinkansen, and the reduction of long-term debt, while giving
the highest priority to ensuring safe and reliable transportation. He currently fulfills his responsibility as Chairman and Representative
Director by dedicating his efforts from the position of Chairman of the Board to ensuring that the Board of Directors is appropriately
operated, among other initiatives.

President andRepresentative Director

Shin Kaneko

Following his appointment as Director of the Company in 2004, Mr. Shin Kaneko demonstrated superior management skills
through his positions as General Manager of the Administration Department and the Personnel Department and Director Generalof the Corporate Planning Division. In 2012 onward, he assisted the President as Executive Vice President, as well as dedicating
his efforts to important managerial issues such as promoting the Chuo Shinkansen project. He currently fulfills his responsibility as
President and Representative Director by exercising strong leadership toward achieving the Company’s management philosophy ofcontributing to the development of Japan’s main transportation artery and social infrastructure at a higher level.

Executive Vice President
andRepresentative Director

YoshikiSuyamaMr. Yoshiki Suyama has held positions as Director General of the Shinkansen Operations Division and Director General of the
Corporate Planning Division, among others, through which he dedicated his efforts to strengthening the Group’s management
infrastructure. He currently fulfills his responsibility as Executive Vice President and Representative Director by assisting the President
toward achieving the Company’s management philosophy of contributing to the development of Japan’s main transportation arteryand social infrastructure at a higher level, and supervising the administrative departments by exercising strong leadership.

Shun-ichi
KosugeMr. Shun-ichi Kosuge has held positions as Deputy Director General of the General Technology Division, General Manager of theTechnology Planning Department of the General Technology Division, Head of the Consulting and Coordination Office-Overseas
High Speed Railway Project of the Technology Planning Department of the General Technology Division, and Director General of
the General Technology Division, among others, through which he dedicated his efforts to strengthening the Group’s management
infrastructure. He currently fulfills his responsibility as Executive Vice President and Representative Director by assisting the President
toward achieving the Company’s management philosophy of contributing to the development of Japan’s main transportation arteryand social infrastructure at a higher level, and supervising the initiatives for the rollout of high-speed railways abroad by exercisingstrong leadership.

Mamoru Uno

Mr. Mamoru Uno has held positions as General Manager of the Public Relations Department, General Manager of the Tracks andStructures Department of the Shinkansen Operations Division, and Director General of the Chuo Shinkansen Promotion Division,
among others, through which he dedicated his efforts to strengthening the Group’s management infrastructure. He currently fulfills his
responsibility as Executive Vice President and Representative Director by assisting the President toward achieving the Company’s
management philosophy of contributing to the development of Japan’s main transportation artery and social infrastructure at a higher
level, and supervising the initiatives for promoting the Chuo Shinkansen project by exercising strong leadership.

Executive Vice President
andRepresentative Director

MamoruTanakaMr. Mamoru Tanaka has held positions as Director General of the Kansai Branch Office, Deputy Director General of the General
Technology Division, General Manager of the Technology Planning Department of General Technology Division, and Director
General of the Shinkansen Operations Division, among others, through which he dedicated his efforts to strengthening the Group’s
management infrastructure. He currently fulfills his responsibility as Executive Vice President and Representative Director byassisting the President toward achieving the Company’s management philosophy of contributing to the development of Japan’s maintransportation artery and social infrastructure at a higher level, and supervising the initiatives for the further enhancement of thetransportation services of the Tokaido Shinkansen and conventional lines by exercising strong leadership, while giving the highest
priority to ensuring safe and reliable transportation.

Director andSenior Corporate
Executive Officer

Takanori
MizunoMr. Takanori Mizuno has held positions as General Manager of the Planning and Promotion Department of the Tokaido Shinkansen
21st Century Division and Director General of the Chuo Shinkansen Promotion Division, among others, through which he dedicatedhis efforts to strengthening the Group’s management infrastructure. He currently fulfills his responsibility as Director and SeniorCorporate Executive Officer, and Director General of the Chuo Shinkansen Promotion Division by supervising the initiatives forpromoting the Chuo Shinkansen project.

Director andSenior Corporate
Executive Officer

Atsuhito Mori

Mr. Atsuhito Mori has held positions as Director General of the Conventional Lines Operations Division, Deputy Director Generalof the General Technology Division and General Manager of the Technology Planning Department, among others, through which hededicated his efforts to strengthening the Group’s management infrastructure. He currently fulfills his responsibility as Director andSenior Corporate Executive Officer, Director General of the General Technology Division by driving technological initiatives for thefurther enhancement of transportation services of the Tokaido Shinkansen and conventional lines, while giving the highest priority toensuring safe and reliable transportation.

Director andCorporate Executive
Officer

Shunsuke
Niwa

Mr. Shunsuke Niwa has held positions as General Manager of the Company’s Personnel Department and General Manager of
the Public Relations Department, among others, through which he dedicated his efforts to strengthening the Group’s management
infrastructure. He currently fulfills his responsibility as Director and Corporate Executive Officer, Director General of the Corporate
Planning Division by supervising the formulation of the basic policy for the Company’s business management and the initiatives forsolving managerial issues.

Director andCorporate Executive
Officer

Hiroshi Suzuki

Mr. Hiroshi Suzuki has held positions as General Manager of the Engineering Department of the Conventional Lines Operations
Division and Director General of the Shizuoka Branch Office, among others, through which he dedicated his efforts to strengthening
the Group’s management infrastructure. He currently fulfills his responsibility as Director and Corporate Executive Officer, Director
General of the Conventional Lines Operations Division by supervising the initiatives for the enhancement of transportation services by
the Company’s conventional lines, while giving the highest priority on ensuring safe and reliable transportation.

Director andCorporate Executive
Officer

Takayuki
Oyama

Mr. Takayuki Oyama has held positions as Director General of the Kansai Branch Office and Director General of the Shizuoka
Branch Office, through which he dedicated his efforts to strengthening the Group’s management infrastructure. He currently fulfills his
responsibility as Director and Corporate Executive Officer, Director General of the Shinkansen Operations Division by supervising theinitiatives for the enhancement of transportation services by the Tokaido Shinkansen, while giving the highest priority to ensuring safeand reliable transportation.

Director

TorkelPatterson

Mr. Torkel Patterson has a wealth of connections overseas as well as extensive experience and deep insight through holding
important positions in the U.S. government, such as special assistant to the president, and serving as president of U.S.-JapanMAGLEV, an outsourcee of JR Central’s overseas expansion operations, and president of Northeast MAGLEV, a subsidiary of U.S.Japan MAGLEV. He currently fulfills his responsibility as part-time Director by providing valuable guidance and advice on the
Company’s business management, mainly concerning its overseas rollout of high-speed railways.

Outside Director

Takashi Saeki

Mr. Takashi Saeki has a wealth of experience and deep insight in corporate management, finance, accounting, compliance, andthe maintenance and development of local communities through holding important positions such as President and Representative
Director of TOHO GAS Co., Ltd. and head of the Aichi Prefectural Public Safety Commission. He currently fulfills his responsibility asa member of the Board of Directors by participating in deliberations of important management matters and appropriately monitoring
the work of directors.

Outside Director

through holding important positions such as the Superintending Prosecutor of the Tokyo High Public Prosecutors Office
Haruo Kasama compliance,
and Prosecutor General. He currently fulfills his responsibility as a member of the Board of Directors by participating in deliberations

Chairman and
Representative Director

Executive Vice President
andRepresentative Director

Executive Vice President
andRepresentative Director

Mr. Haruo Kasama has a wealth of experience and extensive knowledge of law, particularly in corporate governance andof important management matters and appropriately monitoring the work of directors.

Outside Director

Taku Oshima

Mr. Taku Oshima has a wealth of experience and deep insight in corporate management, particularly from a manufacturing andtechnological perspective, through holding important positions such as president and Representative Director of NGK INSULATORS,
LTD. He currently fulfills his responsibility as a member of the Board of Directors by participating in deliberations of importantmanagement matters and appropriately monitoring the work of directors.

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

74

GovernanceBusiness Strategy

Reasons for election

Board of Directors, Audit and Supervisory Board Members, and Corporate Officers［ as of June 23, 2021 ］

Koei Tsuge

Generating“Economic Value”

President
Representative Director

Shin Kaneko

Director

Torkel Patterson

Mr. Torkel Patterson has a wealth of connections overseas
through holding important positions in the U.S. government,such as special assistant to the president, as well as extensive
experience and deep insight. His ability, insight and experience
are suitable for our group to maintain sound management andfurther develop, thus we believe he is qualified for the positionof Director of our company.

Reasons for election

Director (Outside)

Takashi Saeki

Reasons for election

Executive Vice President
Representative Director

Executive Vice President
Representative Director

Yoshiki Suyama

Shun-ichi Kosuge

Executive Vice President
Representative Director

Executive Vice President
Representative Director

Mamoru Uno (Ph.D.)

Mamoru Tanaka

overseeing the Administrative Departments

overseeing the General Technology Division, and theOverseas High Speed Railway Project

overseeing the Chuo Shinkansen Promotion Division

overseeing the Railway Operations Division, and Safety
Sections

Director
Senior Corporate Executive Officer
Director General of the Chuo Shinkansen
Promotion Division

Director
Senior Corporate Executive Officer
Director General of the General Technology
Division

Takanori Mizuno

Atsuhito Mori

Director
Corporate Executive Officer
Director General of the Corporate Planning
Division

Director
Corporate Executive Officer
Director General of the Conventional Lines
Operations Division

Shunsuke Niwa

Hiroshi Suzuki

overseeing the Construction Sections

Creating“Social Value” Corporate Data
Governance

Creating“Social Value”－Governance－

Chairman
Representative Director

Highlight

overseeing the Electrical Engineering Sections

Director (Outside)

Haruo Kasama

Mr. Haruo Kasama has a wealth of experience and extensive
knowledge of law through holding important positions suchas the superintending prosecutor and prosecutor generalof the Tokyo High Public Prosecutors Office. In terms ofsupervision and advice by an outside director, his ability,
insight and experience are suitable for our group to maintainsound management and further develop, thus we believe he isqualified for the position of Director of our company.

Reasons for election

Mr. Tatsuhiko Yamada possesses high-level expertise in financeand accounting, through his positions as Manager of Funding
Section of our Company’s Finance Department, Manager
of Accounting Section of the same Department, and Corporate
Officer and General Manager of the same Department.
His ability, insight, and career are suitable for auditing the
Full-time Audit and Supervisory execution of duties by directors, and thus we believe
he is qualified for theposition of Audit & Supervisory Board
Board Member
Tatsuhiko Yamada Member of the Company.

Reasons for election

Mr. Fumio Yamashita has a wealth of experience and ahigh level of insight in police administration, etc., throughhis positions such as Deputy Superintendent General of
the Metropolitan Police Department and Director-Generalof the Community Safety Bureau of the National Police
Agency. His ability, insight and experience are suitable for
Full-time Audit and Supervisory
auditing the execution of duties by directors, and thus weBoard Member (Outside)
believe he is qualitied for the position of outside Audit &Fumio Yamashita
Supervisory Board Member of the Company.

Mr. Takashi Saeki has a wealth of experience and deep insightin corporate management through holding important positions
such as president and representative director of TOHO GAS Co.,
Ltd. In terms of supervision and advice by an outside director,
his ability, insight and experience are suitable for our group to
maintain sound management and further develop, thus we believe
he is qualified for the position of Director of our company.

Reasons for election

Director (Outside)

Taku Oshima

Mr. Taku Oshima has a wealth of experience anddeep insight in corporate management through holding
important positions such as president and representative
director of NGK Insulators, Ltd. In terms of supervision
and advice by an outside director, his ability, insight andexperience are suitable for our group to maintain soundmanagement and further develop, thus we believe he isqualified for the position of Director of our company.

Reasons for election

Mr. Hajime Ishizu has a wealth of experience and a highlevel of insight in transportation administration, etc., throughhis positions as Director-General of the Kinki District
Transport Bureau and Vice-Minister for Transport andInternational Affairs of the Ministry of Land, Infrastructure,
Transport and Tourism. His ability, insight and experience
Full-time Audit and Supervisory
are suitable for auditing the execution of duties by directors,
Board Member (Outside)and thus we believe he is qualitied for the position ofHajime Ishizu
outside Audit & Supervisory Board Member of the Company.

Reasons for election

Mr. Shigeo Kifuji has a wealth of experience andextensive knowledge of law through his positions
such as Superintending Prosecutor of the Hiroshima
High Public Prosecutors Office and Superintending
Prosecutor of the Tokyo High Public Prosecutors Office.
His ability, insight and experience are suitable for
Audit and Supervisory
auditing the execution of duties by directors, and thus
Board Members (Outside)
we believe he is qualitied for the position of outside
Shigeo Kifuji
Audit & Supervisory Board Member of the Company.

Reasons for election

Mr. Kunihiro Nasu has a wealth of experience andextensive knowledge of law through his positions such asVice President of the Japan Federation of Bar Associations
and Chairman of the Aichi Prefectural Personnel Commission.
His ability, insight and experience are suitable for auditing
the execution of duties by directors, and thus we believe he
Audit and Supervisory
is qualitied for the position of outside Audit & Supervisory
Board Members (Outside)
Board Member of the Company.

Kunihiro Nasu

overseeing the Tracks and Structures Sections

Senior Corporate Executive Officers

Takanori Mizuno		
Motoaki Terai		Akihiko Ito
Atsuhito Mori

Corporate Executive Officers

Director
Corporate Executive Officer
Director General of the Shinkansen Operations
Division

Takayuki Oyama

overseeing the Rolling Stock Sections

75

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

Shunsuke Niwa
Hajime Ikuta
Atsushi Honda (Ph.D.)
Hiroto Takeuchi (Ph.D.)
Hiroshi Suzuki
Takayuki Oyama
Akihiko Nakamura
Kentaro Takeda

Corporate Officers

Tatsuya Okajima
Manabu Ishibashi
Shigeki Miyamoto
Hiroshi Oshima
Yoshihiko Uchida
Masami Nitta
Masahiro Yamamoto
Masaya Sugiura
Kenichi Niimi
Atsushi Tsujimura
Kenji Hagihara
Ataru Kimura
Yoichiro Dendo
Takahide Saito
Masaru Yosano
Hisao Sawada
Hiroshi Shigeta

Naoki Hayakawa
Hirotaka Kawada
Kazuma Tsukamoto
Masafumi Kondo
Shunichi Usui
Yoichi Inoue
Mitsuhiro Aoki
Masami Owaki
Seigo Hatada
Takeya Tanitsu
Chika Takeda

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

76

Business Strategy

Generating“Economic Value”

Highlight

Creating“Social Value” Corporate Data

Corporate Data▶

P ro fil e

▶

Name

CENTRAL JAPAN RAILWAY COMPANY (JR Central)
Central Japan Railway Company（ JR Central）

Established

April 1, 1987

Head Office andOther Main Offices

Business activities Railways business, Affiliated businesses
Key data(As of the end of March 2021)
Capital112.0 billion yen

Operating Revenues

541.7 billion yen

Number of Shares Outstanding

206 million

Share Listings

Nagoya / Tokyo Stock Exchange

Number of Shareholders

118,111

Number of Employees

18,499Operating Kilometers

Meieki 1-1-4, Nakamura-ku, Nagoya-shi,
Aichi 450-6101, JapanJR Central Towers

Head Office (Tokyo)

JR Central Shinagawa Building A Wing 2-1-85,
Konan, Minato-ku, Tokyo 108-8204, Japan

2,800,000

（Yen）

（Yen）

Conventional Lines
Operations Division

JR Central Taiko Building, Meieki 1-3-4,
Nakamura-ku, Nagoya-shi, Aichi 453-8520, Japan

2,600,000

26,0002,400,000

24,0002,200,000

22,000

Shizuoka Branch Office 4, Kurogane-cho, Aoi-ku, Shizuoka-shi,
Shizuoka 420-0851, Japan

Ust-Tsu 12F, 700, Hadokoro-cho, Tsu-shi,Mie 514-0009, Japan

Iida Regional Office5356, Kami-Iida, Iida-shi, Nagano
395-0000,Japan

1,970.8km

Shinkansen
Operations Division

Marunouchi Chuo Building, 1-9-1, Marunouchi,
Chiyoda-ku, Tokyo 100-0005, Japan

2,000,000

20,000

Number of Stations

405

Kansai Branch Office

Number of Rolling Stock

4,857

Shin-Osaka Hankyu Building 10-11F, 1-1-1, Miyahara,
Yodogawa-ku, Osaka-shi, Osaka 532-0003, Japan

1,800,000

18,000

Double-and Multi-Tracked Section

55.1% (1,086.8km)

900 17th Street, N.W., Suite 520,
Washington,DC 20006, U.S.A.

16,00076.7% (1,511.0km)

Washington D.C.
Office1,600,000

Electrified Section
CTC System Adoption Rate

97.5% (1,922.3km)

London Office

6th Floor, 4 Eastcheap, London, EC3M
1AE, U.K.

1,400,000

14,000

Sydney Office

Suite 5.01A, Level5, 20 Hunter Street,
Sydney, NSW 2000, Australia

1,200,000

12,0001,000,000

10,000800,000

8,000

600,000

6,000

97.8% (1,927.3km)

O rga n iz a tion C ha r t
Board of Directors
ChairmanPresident

Secretarial Department
Corporate Planning Division

Supervision Department

General Technology Division

Transportation and Marketing Department

Conventional Lines Operations Division

Chuo Shinkansen Promotion Division

Rolling Stock Department

Audit Department

Electrical Engineering Department

Administration Department

Audit and Supervisory Board

Note: On October 1, 2012, the Company implemented a 100-for-1 stock split and employed a share unit system by which one share unit equals 100 shares.
Please refer to the left axis for stock prices before September 2012 and the right axis for stock prices after October 2012.

Mie Regional Oﬃce
Iida Regional Oﬃce

Personnel Department
Finance Department

Planning Department

Property Management Department

M ajor S har ehol der sSupervision Department

Marketing Division

Transportation and Marketing Department

Shinkansen Operations Division

Business Promotion Division

Number of shares held

Percentage of total issued shares

Electrical Engineering Department

The Master Trust Bank of Japan, Ltd. (Trust Account)Name

15,652,300

7.95%

Kansai Branch Oﬃce

Custody Bank of Japan, Ltd. (Trust Account)

10,225,900

5.19%

Rolling Stock Department

Construction Department

Tracks and Structures Department

Transportation Safety Department
Overseas Oﬃces: Washington D.C., London, Sydney
General Education Center

Mizuho Bank, Ltd.

8,642,300

4.39%

Health Care Center

The Nomura Trust and Banking Co., Ltd. (Holder in Retirement Benefit Trust for MUFJ Bank, Ltd.)

7,125,000

3.62%

Administration Management Center

MUFJ Bank, Ltd.

6,278,100

3.19%

Nippon Life Insurance Company

5,000,000

2.54%

The Norinchukin Bank

3,350,000

1.70%

Toyota Motor Corporation

3,000,000

1.52%

Operating Kilometers by line

JR Central Employee Stock Ownership Program

2,864,500

1.45%

Tokaido Shinkansen

Custody Bank of Japan, Ltd. (Trust Account 5)2,551,300

1.30%

64,689,400

32.84%

Nagoya Central Hospital

SCMAGLEV and Railway ParkO p e ra t in g A r ea

JR-CENTRALJR Central operates the Tokaido
Shinkansen, the main transportationartery linking Tokyo, Nagoya,
and Osaka, and a network of 12
conventional lines centered on the
Nagoya and Shizuoka City areas.

Shinkansen

Inotani

Conventional Lines

Shiojiri
Takayama Line

TatsunoChuo Line

Taita Line

Gifu

Iida Line

TajimiShin-Osaka

500km

Meisho Line(As of January 1, 2021)

Kisei Line
Kyoto

Nagoya Tokyo

Shin-Osaka

Shizuoka

JR-CENTRALMinobu Line

Gotemba Line

NagoyaNumazuObu

Kameyama

Ise-Okitsu

Area of Japan: Approx. 380,000km2
Population: 127 million

Shinagawa

Fuji

Kansai Line

Kyoto

Tokyo

Kofu
Shin-Yokohama

Mino-Akasaka Mino-Ota
Ogaki
Maibara0

4,000
Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May
2011 2011 2011 2011 2011 2011 2012 2012 2012 2012 2012 2012 2013 2013 2013 2013 2013 2013 2014 2014 2014 2014 2014 2014 2015 2015 2015 2015 2015 2015 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 2018 2019 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2020 2021 2021 2021

Shizuoka Branch Oﬃce

Legal Aﬀairs Department

Audit and Supervisory Board Members

400,000

Tracks and Structures Department

Public Relations Department▶

28,000Mie Regional Office

Automatic Signaling System
Adoption Rate▶

St ock I nformat ion

Shifts in JR Central’s Stock Price

Head Office

TaketoyoMatsusaka
Taki

Taketoyo Line Toyohashi

Toba
Sangu Line

Tokaido Line

Tokaido Shinkansen

Shizuoka

Kozu
Atami

552.6kmConventional Lines
360.1km
Tokaido Line
Gotemba Line

60.2kmMinobu Line

88.4kmIida Line

195.7km

Taketoyo Line

19.3kmTakayama Line

189.2km

Chuo Line

174.8km

Taita Line

17.8kmKansai Line59.9kmKisei Line

180.2km

Meisho Line

43.5kmSangu Line

29.1kmConventional Line Total

1,418.2km

Total

1,970.8km

Total
Note: In addition to the above, JR Central holds 8,999,249 shares of treasury stock.

［As of March 31, 2021］

For more information, please visit the following:・S afety Reporthttps://company.jr-central.co.jp/others/report/
・L inear Chuo Shinkansen
https://linear-chuo-shinkansen.jr-central.co.jp/
・F act Sheet
https://global.jr-central.co.jp/en/company/ir/factsheets/

URL： https://global.jr-central.co.jp/en/
Tel：(052)564-2413 ／ Fax：(052)587-1300

E-mail ： ir.msd@jr-central.co.jp

Shingu77

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2021

78