Social

Highlight

Business Strategy

Generating "Economic Value"

Corporate Data

Creating "Social Value"
SocialCreating“Social Value” －Social－

The Chuo Shinkansen Project Using the Superconducting
Maglev System ～Drastic enhancement of main transportation artery～

Flow of work based on the Nationwide Shinkansen Railway Development Act
Article 4

40 67

Article 14-2 The Transport Policy Council

Decided in November 1973 ▲Chuo Shinkansen

SectionTokyo - Osaka City
Superconducting magnetic levitation technology

Topological and geological surveys Ordered in February 1990▲→Reported in October 2008●◆
Research on the 4 residual items *Ordered in December 2008▲→Reported in December 2009●◆
Consulted on February 24, 2010 ▲→Replied on May 12, 2011■

Maximum design speed

505 km/h

Approximate amountnecessary for the construction(including rolling stock costs)

9,030 billion yen

Consented on May 18, 2011●

Other necessary items

Main areas
passed throughArticle 6 Designation of Operator and Constructor →Designated on May 20, 2011 ▲Environmental
Impact Assessment

Construction line

Technology used for running

Article 7 Development Plan

Consented on May 23, 2011●→Decided on May 26, 2011 ▲Article 8 Instruction to Construct

Instructed on May 27, 2011 ▲Outline of the Construction Implementation Plan (Part 2) of
the Chuo Shinkansen section between Shinagawa and Nagoya

Construction Implementation Plan (Part 1):Submission on August 26, 2014●

Section

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

Construction Implementation Plan (Part 2):Submission on September 25, 2017●→Approved on March 2, 2018 ▲Distribution map of the estimated greatest seismic intensity of a Nankai Trough Large Earthquake
Chuo Shinkansen

ShinagawaShinagawa Station, Kanagawa Prefecture Station(tentative name), Yamanashi Prefecture Station (tentativename), Nagano Prefecture Station (tentative name), Gifu
Prefecture Station (tentative name), Nagoya Station

Line extension

285.6kmConstruction costs

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2023

2027

New Value Provided by the Chuo 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 a“Super Mega Region.”
Mega-metropolitan area 66.16 million people GDP: 331 trillion yen※1

NagoyaShin-Osaka

Tokaido Shinkansen

Seismic intensity
class
7Upper 6Lower 6Upper 5Lower 5
4

Kansai Region

Central Region

Tokyo Metropolitan Area

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

(Tokyo, Kanagawa, Chiba, Saitama)

18.14 million people GDP: 78 trillion yen

36.74 million people GDP: 196 trillion yen

11.28 million people GDP: 57 trillion yen

Travel Time Reduction

Tokyo (Shinagawa) - Nagoya (min):86 minutes →40 minutes
Tokyo (Shinagawa) - Osaka (min):134 minutes→ 67 minutes

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

Gifu
Nagano※2※2Prefecture
Prefecture
Chuo Shinkansen(Operating speed: 500 km/h)

Tokaido Shinkansen

Chuo Shinkansen Project as a national project43

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.)]* In the“Notice Concerning Total Construction Costs for the Chuo Shinkansen Section between
Shinagawa and Nagoya”(April 2021), we announced that the total construction costs are
expected to increase to 7.04 trillion yen.

(Operating speed: 285 km/h)

The Chuo Shinkansen is being constructed in accordancewith the Act, 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, and the development oflocal communities. Based on the Act, we received designation
as the operator and an order for construction from the Ministerof 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 conductedenvironmental assessment procedures and published the final
environmental impact assessment report between Tokyo andNagoya, which is promoted as the first stage.
On the other hand, in order to confirm that the principles ofa privately owned company, such as freedom of management

Between Shinagawa and Nagoya

Station Location

Expected completion year

possible, under the assumption that we bear the cost of its
construction, utilizing the Superconducting Maglev Systemthat we have developed. The Chuo Shinkansen will turnJapan’
s main transportation artery into a dual system, andJR Central will operate it in an integrated manner alongwith the Tokaido Shinkansen.

Kofu City area, south-central Akaishi Mountains(Southern Alps), Nagoya City area, Nara City area

* The approximate amount necessary for the construction does not include interest.

* Research on the 4 residual 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

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, “theAct”) to continually carry out our mission of operating ahigh-speed railway linking the Tokyo Metropolitan area
and the Chuo and Kansai regions (from Tokyo through
Nagoya to Osaka), which is the lifeline of our business, andto ensure the future foundation of the Company.
The Tokaido Shinkansen has been in operation for morethan half a century, and while we have been carrying out
large-scale renovation, there is the risk of suspension ofservices due to major facility replacement caused by futureaging. Furthermore, Japan is prone to earthquakes, andalthough we have taken earthquake resistance measures
for the Tokaido Shinkansen, there is the risk of potential
major disasters, including the undeniable possibility oflong-term disruption to Japan’s main transportation arterydue to a possible major earthquake. Therefore, as a drastic
measure to prepare for these future management risks, we
decided to complete the Chuo Shinkansen as quickly as

Basic Plan

Article 5 Research and Reports

500

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

Content of Development Plan

[Entities involved] ●：JR Central ▲：Minister of Land, Infrastructure, Transport and Tourism■：Transport Policy Council ◆：Japan Railway Construction, Transport and Technology Agency

and autonomy of capital investment, would not be hinderedby application of 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 indicating that thoseprinciples would not be hindered.
In order to take steady steps towards the successful
completion of this project, we will maintain soundmanagement and stable dividends, sufficiently examine
costs and demonstrate our flexibility, and make necessary
investments to ensure safe and reliable transportation and toenhance the competitiveness of the Tokaido Shinkansen andconventional lines. We will first realize the project between
Tokyo and Nagoya, where we have received approval for theconstruction plan, and strive to further extend the project toOsaka.

Shinagawa

Yamanashi
Kanagawa※2※2Prefecture
Prefecture
Yamanashi Maglev Line
(42.8 km)(Trillion yen) Comparison of GDP between the three major

600
400

Shin-OsakaTokyo

metropolitan areas and major countries

331 Trillion
yen

200
0

285.6km ※3438km ※4

Japan Three major
FranceUK
metropolitan areas
Source: United Nations database, Cabinet Oﬃce
"Annual Report on Prefectural Accounts" (FY2019)* Calculated using the exchange rate of USD1 = 109.05 yen* Three major metropolitan areas are calculated taking thefollowing prefectures into account:Tokyo, Kanagawa, Chiba,
Saitama, Aichi, Gifu, Mie, Osaka, Kyoto, Nara, Hyogo* 1 Population: Ministry of Internal Affairs and Communications“Population, Demographics and Number of Households Derived from Basic Resident Registration”(January 1, 2023) GDP: Cabinet
Office“Annual Report on Prefectural Accounts”(FY2019)* 2 Intermediate station names are tentative.* 3 The Construction Implementation Plan (Part 2) of the Chuo Shinkansen section between
Shinagawa and Nagoya (March 2018)* 4 The Survey Report of the Chuo Shinkansen section between Tokyo and Osaka (December 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, andthe three major metropolitan areas will be transformed
into one mega-metropolitan area, the so-called “Super
Mega Region,” where the interaction of people will behighly activated and economic and social activities will
be energized, which is expected to have a significant
positive effect on our business.
CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2023

44

Business Strategy

Highlight

Generating "Economic Value"

Corporate Data

Creating "Social Value"
SocialThe Chuo Shinkansen Project Using the Superconducting Maglev System 〜Drastic enhancement of main transportation artery〜❶ Creation of new demand
In the competition between the Shinkansen and air
travel, the shorter the travel time of the Shinkansen, thegreater its share. Demand is therefore expected to shift
from air travel to the Chuo Shinkansen due to the time
reduction effect of the Superconducting 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 ofintermediate stations in Kanagawa, Yamanashi, Nagano
and Gifu Prefectures, the opening of the Chuo Shinkansen
will shift some of the current“Nozomi”passengers on
the Tokaido Shinkansen to the Chuo Shinkansen, creating
room for additional“Hikari”and“Kodama”services when
there is more room in the Tokaido Shinkansen schedule.
This may improve travel times and frequencies between
cities along the Tokaido Shinkansen line and each of thethree major cities, thereby increasing the flow of people.

World’
s fastest speed brings each area along the line closer.
Min 40 minutes

About 60 minutes

About 45 minutes

Gifu
Prefecture(tentative name)

NagoyaAbout 25 minutes

NaganoPrefecture(tentative name)

About 15 minutes

Yamanashi
Prefecture(tentative name)

About 25 minutes

About 10 minutes
Kanagawa
Prefecture(tentative name)

About 45 minutes

About 60 minutes

Tokyo

Shinagawa

ShinYokohama

OdawaraAtami

MishimaShin-Fuji

ShizuokaHamamatsu

Kakegawa

Toyohashi

MikawaAnjo
Nagoya

GifuHashima

MaibaraKyoto

Shin-Osaka

Stations where Hikari and Kodama stop

ShinagawaMin 40 minutes

Shifting of some“Nozomi”passengers to
ひかり+こだま現行
のぞみ
the Chuo Shinkansen will create room for（イメージ）
increased“Hikari”and“Kodama”
service.
「ひかり」
「こだま」
が拡大

Stations where Kodama stops

のぞみ

ひかり+こだま

中央新幹線
全線開業後

❷ Broad ripple effects on the economy and society
Due to the overwhelming time reduction effect of
the Superconducting Maglev System, Tokyo - Nagoya- Osaka will be connected in about one hour, and thethree major metropolitan areas will become a“Super
Mega Region”with a total population of 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
a declining population, by broadening the scope of

We are steadily carrying out the planned construction work in areas
along the Shinagawa-Nagoya section for which we obtained approval of
the Construction Implementation Plan, placing priority on safety at work,
environmental conservation, and cooperation with local communities
and examining costs sufficiently. Capital investments have totaled 1,526.8
billion yen in the period from FY2014, when we obtained approval of theConstruction Implementation Plan, to FY2022. The total length of construction
areas that have already been contracted out reached about 90% of the
Shinagawa-Nagoya section, including the Yamanashi Maglev Line, totaling
about 286 km, at the end of September 2023.
In the Southern Alps Tunnel Shizuoka construction area, we have yet toconvince Shizuoka Prefecture and other parties, due to which we have notbeen able to begin tunnel drilling work. In such circumstances, with regard to
impacts on water resources of the Oi River, based on the“Interim Report on

activities and thereby significantly changing lifestyles,
such as the way people do business and spend theirleisure 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 Time andPlace”(May 2019) presents the following as“impacts of
the Linear Chuo Shinkansen.”Oi River Water Resources”compiled by the“Linear Chuo Shinkansen Shizuoka
Construction Area Council of Experts”of MLIT, we strive to provide easy-tounderstand explanations to the local community, to implement specific risk
responses and monitoring, and to implement measures to send water back to
the Oi River in the amount equivalent to water that leaks inside the tunnels andexceptionally flows outside the prefecture for a specified period. Since June,
we have discussed with the power generation company on how to reducewater withdrawal for power generation and return it to the Oi River. And
discussions have been underway at the expert council on ways to conserve
the environment of the Southern Alps, including ecosystems. Furthermore,a meeting was held in September to exchange opinions with the leaders of
the cities and towns in the Oi River basin. We will remain committed to takemeasures in a sincere manner to win understanding and cooperation of local
communities while placing importance on two-way communication.
Total amount of capital investment

Approx.

Progress of effort to acquire land
(at end of September 2023)

The possibility of using the Tokaido Shinkansen will increase.

Stations where Nozomi, Hikari, and Kodama stop

Promotion of Construction

70

Historical total capital investment※1%(Billion yen)

400

FY2014-2022Total amount of capital investment:
1,526.8 billion yen

Land acquisition rate ＝ number of landowners from whom land is acquired / total number of landowners※2※3* 1 The percentage figure is rounded down to be shown in increments of 5 percentage points.
* 2 The figure may decrease due to a change in the number of landowners as a result of changes in the scope of land being acquired, inheritance, etc.
* 3 The number of landowners from whom land is acquired represents the number of landowners with whom a contract has been signed.

Progress of finding entities that use excavated soil
(at end of September 2023)

300

255.2

Approx.

80

228.2

※4

%

340.0

270.1 268.8
229.8

200

Progress of finding entities that use excavated soil※5：approx. 80% of the amount of excavated soil※6
In addition to the entities already enlisted to use about 80% of excavated soil, we are in
negotiations with multiple candidates regarding acceptance of excavated soil.
* 4 The percentage figure is rounded down to be shown in increments of 5 percentage points.
* 5 The entities already enlisted to use excavated soil are entities, etc. with whom we have signed agreements, etc.
on the acceptance of excavated soil.
* 6 The amount of excavated soil is the target figure as of August 2014, the month in which we published acorrected environmental impact assessment report.

134.2
102.9

100
32.1
5.0
0

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (FY)targetLocations of construction work (at end of September 2023)
Gifu Prefecture(tentative name)Southern Alps Tunnel(Nagano construction area)

Elevated bridge in Usuiawara(tentative name)Shinagawa

Nagoya (Westconstruction area)

Minami-koma
Tunnel No. 1

Kanagawa Prefecture (tentative name)Tokyo Metropolitan Area Tunnel No. 1(Higashi-yurigaoka construction area)

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 will lead 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,”which have 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 and growth industries, which

will increase the attractiveness of the region in inviting people and investment from overseas.

● By organically connecting the Linear Chuo Shinkansen, Shinkansen and expressway networks, it is expected that the multiplicity and substitutabilityof the high-speed transportation network, which forms the framework of the national land policy, will be enhanced, and a sustainable flow ofpeople and goods will be secured.

● It is expected that new regional revitalization will begin in the areas around the intermediate stations located between the three major

metropolitan areas and that the effects of the Super Mega Region will spread widely beyond the areas along the Linear 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 effects of 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 the45

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2023

opening of the line up to Osaka.”
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)* This map is copied from a Japanese map (with a scale of 1 to 1,000,000) published by the Geographical Survey Institute with their authorization. (Authorization number: H25 Jo Fuku, 310)
* See our website for the latest information on the progress of the construction work.
▶ Publicly released materials regarding the Chuo Shinkansen Project (The progress of construction work in each prefecture can be viewed in“Construction safety, environmental preservation, and cooperation with local communities.”) https://company.jr-central.co.jp/chuoshinkansen/▶ Summary of Consolidated Financial Report https://company.jr-central.co.jp/ir/brief-announcement/ ▶ Investor Meeting Presentation Handout https://company.jr-central.co.jp/ir/investor-meeting/

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2023

46

Highlight

Business Strategy

Generating "Economic Value"

Corporate Data

Creating "Social Value"
SocialThe Chuo Shinkansen Project Using the Superconducting Maglev System 〜Drastic enhancement of main transportation artery〜

Implementation of Environmentally Conscious Construction
Construction of the Chuo Shinkansen is proceeding, taking the surrounding environment into consideration.
The main environmental conservation measures being implemented are as follows.
(air quality, noise and vibration)(water quality, water resources and groundwater)

Water environment

Animals, plants, andecosystems

Reducing the impact of vehicles used
to transport materials and machinery

The use of low-noise andlow-vibration construction
machinery with low exhaustemissions reduces thegeneration of nitrogendioxide 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., basedon laws and regulations, thereby
reducing the impact on public waters.

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

We reduce the generation ofdust by cleaning and watering theentrances, exits and surrounding
roads for vehicles used totransport materials and machineryand by cleaning their tires. In
addition, there is a construction
area where we reduce thenumber of vehicles used inconstruction work by using freighttrains to transport excavated soil.

Atmospheric environment

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 the magnetic force between
the Superconducting Magnet mounted on the vehicle andthe coils mounted on the ground. In addition, to obtainthe strong power of the magnets, the technology uses a
superconducting magnet utilizing“the‘superconductivity’phenomenon, whereby electrical resistance vanishes when aparticular 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. Thesefeatures make it possible to travel at an ultra high speed of
500 km/h in a stable manner, unlike conventional railways.
The level of the Superconducting Maglev System
Technology has been evaluated in multiple stages sincerunning tests began on the Yamanashi Maglev Line in April
1997. In July 2009, the Superconducting Magnetic Levitation
Technological Practicality Evaluation Committee of MLIT
(hereinafter,“Evaluation Committee”) confirmed that theSuperconducting Maglev System Technology had alreadyachieved levels sufficient for commercial operation, andthe Minister of Land, Infrastructure, Transport and Tourism
established technological standards for the Superconducting
Maglev in December 2011. Subsequently, in February 2017,
the Evaluation Committee confirmed its evaluation that thetechnology development required for commercial lines wascompleted, and in March 2023, the Evaluation Committee
assessed that steady progress has been made in brushing up

the technology.
We will continue to make efforts to reduce the cost of
construction, operation, and maintenance of the commerciallines and further brush up Superconducting Maglev System
Technology while conducting running tests using the Series
L0 improved version and developing commercial vehicle
specifications.
Progress on the Superconducting Maglev System Technology
Jun-90

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

Apr-97

Running tests start on the Yamanashi Maglev Line.

Mar-00The Superconducting Magnetic Levitation Technological Practicality
Evaluation Committee of the Ministry of Transport (hereafter, the“Evaluation
Committee”) acknowledges that“there is potential from a technologicalstandpoint that the technology could have practical applications.”

Nov-04

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

Mar-05The Evaluation Committee of MLIT acknowledges that“the coretechnologies for practical application have been established.”

Jul-09The Evaluation Committee of MLIT acknowledges that “thetechnologies required for commercial lines have been established froma comprehensive and systematic standpoint and it is possible to move
forward with detailing the specifications for commercial lines and thetechnical standards.”

Dec-11The Minister establishes technical standards for Superconducting Maglev.

Aug-13Work to extend the Yamanashi Maglev Line to 42.8 km and update
facilities are completed.

Apr-15

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.

Feb-17The Evaluation Committee of MLIT acknowledges that“the technology
development required for commercial lines has been completed.”Aug-20Running tests start using the Series L0 improved version.

Mar-23The Evaluation Committee of MLIT acknowledges that“steady progresshas been made in brushing up the technology.”

History of Maglev Vehicles

Superconducting Maglev test rides

Principles of the Superconducting Maglev System
Propulsion System

Levitation System

Guidance System

By passing current through the Propulsion Coilson the ground, a magnetic field (north andsouth poles) is produced, and thus the vehicle
is propelled forward by the attractive force andrepulsive force of the opposite poles acting
between the ground coils and the Superconducting
Magnets built into the vehicles.

The Levitation and Guidance Coils are installed on
both sides of the guideway (track). When the onboard Superconducting Magnets pass through at
high speed, an electric current is induced in theLevitation and Guidance Coils, causing them tobecome electromagnets. This generates a force
that both pushes and pulls up the vehicle.

The Levitation and Guidance Coils on both sidesof the guideway keep the vehicle in the center ofthe guideway at all times by exerting an attractive
force on the far side of the vehicle and a repulsive
force on the near side when the vehicle moves off
center to either side.

Total Construction Costs for Shinagawa-Nagoya Section
In the“Notice Concerning Total Construction Costs for the
Chuo Shinkansen Section between Shinagawa and Nagoya”(April 2021), we announced that the total construction
costs for the Shinagawa-Nagoya section are expected toincrease from 5.52 trillion yen estimated at the time of the“Construction Implementation Plan (Part2) of the Chuo
Shinkansen Section between Shinagawa and Nagoya”(March2018) to 7.04 trillion yen. The reasons for the increasein construction costs include responding to challenging
construction work, enhancing earthquake countermeasures,and securing utilization sites of excavated soil.
We will prioritize sound management and stable dividends
with regard to future management just as always andwill fund the construction costs mainly through operating
cash flows and the remaining amount through repayableborrowings. If we anticipate that it can no longer ensure
sound management and stable dividends, we will aim
to complete the construction by adjusting the pace ofconstruction and fully restoring its management strength.
As a reference, in order to confirm that the funds necessary

for completion of the construction are secured, we calculated
the operating cash flows based on certain reasonableassumptions in the event that the revenue recovers at
a realistically expectable pace from the impact of the
COVID-19 pandemic, and it confirmed that, if approximately
1 trillion yen of new financing is added to such operating
cash flows, the cumulative amount of the funds available forconstruction of the section between Shinagawa and Nagoya
would exceed the total construction costs of 7.04 trillion yen
in FY2028. It should be noted that this does not mean that a
new target time for opening is set; however, a trial calculationof the status of securing funds under certain assumptions wasmade for reference purposes only.
Thus, we have confirmed that we will be able to secure
the level of funds necessary to complete the construction
even after incorporating the increase in construction costs.
We will continue to proceed with the Chuo Shinkansen
Project with the aim of early realization of the Chuo
Shinkansen while ensuring sound management and stabledividends.

Estimates to confirm construction costs are secured (as of April 2021).(For confirmation, etc.)(For reference: Results of confirmation)

Transportation
revenues (Shinkansen
and conventional lines)

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

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

Expenses

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

Operating revenues for the fiscal year
following the above period

1,530 billion yen

Capital investments(Chuo Shinkansen)

240 billion yen

7.04 trillion yen

Ordinary income for the fiscal year
following the above period

Capital investments(Shinkansen andconventional lines)

Essentially, necessary capital investments will be accumulated, considering the cost
reductions through“reform of business operations,”and capital investments willremain unchanged at approximately 220 billion yen per year in and after FY2028.

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

6.0 trillion yen

OtherInterest rate on financing: 3%

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

FY2028

Note: In and after the period marked with an asterisk (*) above, in calculating theoperating revenues and ordinary income, it is assumed that transportation 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. This does not mean that a new target time for opening isset; however, a trial calculation was made for reference purposes only.

(For reference: Changes in ordinary income and long-term debt)(Billion yen)
600

Ordinary income (left axis)(Trillion yen)
10.0

Long-term debt (right axis)
240

400
200

8.0
6.0

6.0

MLX01-1

MLX01-901

Series L0

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

47

CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2023

While steadily conducting running tests, wehave offered Superconducting Maglev test rides
using the Series LO improved version from2022 in order to foster a sense of anticipation
for the opening of the Chuo Shinkansen.

0

4.0

-200

2.0

-400

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

0.0
2030 (FY)CENTRAL JAPAN RAILWAY COMPANY Integrated Report 2023

48