#1Year-End Investor Meeting FY2017.3 (Fiscal Year Ended March 31, 2017) I. Future Expectations on Key Issues President and Representative Director Koei Tsuge Central Japan Railway Company Note: FY2016 refers to the one-year period ending March 31, 2017. April 28, 2017 1#2New Management Philosophy - 30th Anniversary of Company's Founding Contribute to the development of Japan's main transportation artery and social infrastructure Bo th Anniversary ВО JR JAM Determination to be fully committed to handling various management issues, such as operating "three generations of railways": the Tokaido Shinkansen, conventional lines, and the Chuo Shinkansen 2#3Establishment of Firm Management Platform FY 1987 FY 2016 Note Railroad accidents (number of accidents/year) 60 9 1/6 Tokaido Shinkansen Passenger volume 279 452 1.6 times (1,000 persons/day) Number of services (number/day) 231 365 1.6 times (Maximum number of services/day) (274) (432) 220 km/h 285 km/h Highest speed (137 mph) (177 mph) +65 km/h (+40 mph) Operating Revenues (billion yen) 874.6 1,380.7 1.6 times Non-consolidated Operating Income (billion yen) 71.5 595.8 8.3 times Ordinary Income (billion yen) 60.7 541.2 8.9 times Long-term debt (trillion yen) 5,5*2 1,9*4 -3.6 Operating Revenues of consolidated subsidiaries 52.6*3 582.9 11.1 times (billion yen)*1 *1 Simple aggregation; *2 Figure for 1991; *3 Figure for 1989; *4 Excluding long-term debt for construction of the Chuo Shinkansen 3#4Chuo Shinkansen Project - Full Efforts in the Construction Between Shinagawa and Nagoya Progress in acquisition of land and concluding construction contracts October 17, 2014: Approval on the construction plan (Part 1) between Shinagawa and Nagoya Briefing on business Steady increase in capital investment (Billions of yen) 159.0 Construction contract 102.9 Center line survey. Discussions on design. Briefing on land. Briefing on construction 32.1 Land survey. Acquisition of land. Flow from briefing on business to start of construction Construction work in full scale at locations along the line 5 Start of construction 2014 2015 2016 2017 (Fiscal Plan year) AC FR EN Southern Alps Tunnel (Yamanashi construction section) Kita-Shinagawa emergency exit and electrical Meijo emergency exit substation 4#5Chuo Shinkansen Project - Securing of Long-Term Debt Using the Fiscal Investment and Loan Program (FILP) Securing long-term, fixed, low-interest funds ⇒ Reduction of management risk <Key terms of loan agreement> Results for FY2016 First loan Second loan Third loan Amount to be Borrowed 500 billion yen 500 billion yen 500 billion yen Interest Rate (Fixed 0.6% throughout the entire period) Borrowing Date November 29, 2016 Maturity Date November 29, 2055 0.8% January 16, 2017 January 16, 2056 0.9% | Scheduled loan amount March 10, 2017 March 10, 2056 in FY2017: 1.5 trillion yen Total of 3 trillion yen (Plan) 30% [Advantages for JR Central] Rise in interest rate, funds procurement, redemption Reduction of each risks Start by making full efforts in the construction between Shinagawa and Nagoya 2027 <Existing plan> Construction between Shinagawa and Nagoya Management strength restoration period (8 years) Construction between Nagoya and Osaka Start of operation in Osaka Construction between Nagoya and Osaka Start of operation in ■ Osaka Front-load by a maximum of 8 years Not need to redeem at fixed, low interest for about 30 years Equal principal repayment over a period of about 10 years <Front- loading> Construction between Shinagawa and Nagoya <FILP-based loan> LO#6Cash Flow Associated with the Progress of the Chuo Shinkansen Project Securing external funds necessary for the construction between Shinagawa and Nagoya by means of FILP-based loans Roughly 9 trillion yen for construction between Tokyo and Osaka FILP-based loan of 3 trillion yen Total of roughly 5.5 trillion yen for construction between Shinagawa and Nagoya Operating CF + External financing Expansion of operating CF by reinforcing the management platform from a long-term perspective ⇒ Promoting construction of the Chuo Shinkansen by strictly maintaining sound management and stable dividends Operating CF Investments in the Tokaido Shinkansen Funds procured by FILP- based loan and conventional lines Ensuring safe and reliable transportation Enhancing competitiveness Shareholder returns Stable dividends "Reserve" for construction of the Chuo Shinkansen, etc. Limited to expenses associated with the construction of the Chuo Shinkansen 00 6#7Ensuring Safe and Reliable Transportation = Major Premise for All Pursuit of ensuring safety Firmly maintaining reliable transportation Average time of delay by the Number of incidents* Shinkansen 0.6 min 0.4 min 0.2 min 0 0 0 2014 2015 2016 (Fiscal year) *Situations with a risk of railway accidents, etc. to occur Safety-related investment Continuing to secure the necessary level going forward 180.8 173.1 (Billions of yen) 182.0 2015 2016 2017 (Fiscal Plan year) 2014 2015 2016 (Fiscal year) Installation of derailment prevention guards in all Shinkansen lines Scheduled to install in all lines totaling 1,072 km by FY2028 Derailment prevention guards Dual High Speed Line = Both the Chuo Shinkansen and the Tokaido Shinkansen function smoothly → Do not loosen investments in the Tokaido Shinkansen 7#8Polishing the Tokaido Shinkansen Service Promotion of standardization to the N700A type (Trainset) 140 → Preparation for the next step up Replace Series 700 with Series 133 N700A and maintain a consistent number of trainsets 130 131 (5) "Standardized train model" INZOD 21 120 Standardize all rolling stock Launch of N700S to the N700A type 110 (7) 46 100 39 32 90 80 70 80 80 80 80 51 Possible to travel at a maximum speed of 285 km/h High safety, reliability and comfort → Preparation to raise services to a higher level New production of validation test vehicles by the end of FY2017 FY2020 (prospect) 2016 2017 Series Series 2018 N700A N700A 700 N700 (new production) スマートEX 1. Register Credit End of FY2019 Start of service at the end of September ⇒ Expansion of ticketless services 2. Reserve 3. Board Tap! card + talCa Commuting type IC card Image of the new Shinkansen online reservation and ticketless boarding service, "smartEX" VISA UCB AMERICAN mastercard. EXPRESS Accepted credit cards IC 30 wwwmo monaca Kitaca PASMO Sulca Diners Club INTERNATIONAL: ICOCA はやか nimoca SUGDCA Accepted commuting type IC cards 30 8#9Full Opening of the JR Gate Tower JR Gate Tower is expecting strong advances in affiliated businesses JR Central Towers (center, left) and JR Gate Tower (right) October 2012 November 2016 Construction began Tenants began moving into the offices April 2017 Full opening ARA GOOD BEER RESTAURANT Gate Tower Plaza Restaurant Area receiving many customers ときめきは、メイエキにある。 30 Takashimaya Gate Tower Mall on opening day 9#10Shareholder Returns Continue providing stable dividends even during the construction period of the Chuo Shinkansen (Yen/Year) [Left axis] Dividends per share per year --[Right axis] Net Income (Non-consolidated) 150 120 90 90 60 60 30 50 0 1998 2001 ☐ 30% (Billions of yen) 140 600 135 500 400 300 200 100 0 2004 2007 2010 2013 2016 2017 (Fiscal Plan year) 10#11Current status of NIPPON SHARYO, LTD. [Status of large railway rolling stock deal for the U.S.] No change in status Extracted from NIPPON SHARYO's financial results material released on April 26, 2017 Bo "Continuing discussions with clients regarding the direction toward properly carrying out deals going forward." [Positioning of NIPPON SHARYO in the JR Central Group] An important subsidiary that supports the operation of "three generations of railways", i.e. rolling stock for the Shinkansen, conventional lines, and Superconducting Maglev 東日本車両 [Topics] Timely disclosure by NIPPON SHARYO as of March 22, 2017 Points Effect Transfer of workshop assets JR Central purchases assets of NIPPON SHARYO's plants (21.0 billion yen). Lease back to NIPPON SHARYO → Transfer of non-business use assets NIPPON SHARYO sells part of the non-business use assets to a third party NIPPON SHARYO makes early repayment of long-term loans in full Improvement in financial conditions and stability of NIPPON SHARYO's business (Reference) Assets purchased by JR Central (land and buildings of each plant) Toyokawa Plant Narumi Plant Kinuura Plant 11 11#12Year-End Investor Meeting FY2017.3 (Fiscal Year Ended March 31, 2017) II. Summary of Financial Results for FY2017.3 Corporate Officer and General Manager of the Finance Department Tatsuhiko Yamada Central Japan Railway Company April 28, 2017 12#13Income Statement (Consolidated) (Billions of yen) FY2016.3 FY2017.3 Changes (B-A) Results A Results B Operating Revenues 1,738.4 1,756.9 +18.5 Operating Expenses 1,159.7 1,137.4 -22.3 Operating Income 578.6 619.5 +40.8 Non-operating Income -67.2 -55.5 +11.6 (Loss) Ordinary Income 511.4 563.9 +52.5 Net Income Attributable 337.4 392.9 +55.4 to Owners of the Parent ■ Actual long-term debt (Billions of yen) Excluding the "Chuo" Actual capital investment (Billions of yen) Balance as of year-end Changes (( ) for the "Chuo ") Balance as of year-end Consolidated Changes Non- consolidated Consolidated 3,395.4 1,450.4 1,895.4 -49.5 374.9 330.8 Safety-related investment 180.8 Chuo Shinkansen 102.9 Non- consolidated 3,369.0 1,453.4 1,869.0 -46.5 (1,500.0) (1,500.0) *"Chuo" = Long-term debt for construction of the Chuo Shinkansen 13#14Segment Information (Consolidated) Bo (Billions of yen) FY2016.3 Results A FY2017.3 Changes (B-A) Results B Operating Revenues 1,738.4 1,756.9 +18.5 Transportation 1,358.1 1,380.4 +22.2 Merchandise and 239.6 237.0 -2.6 Other Real Estate 66.0 68.6 +2.5 Other 243.0 253.9 +10.9 Operating Expenses 1,159.7 1,137.4 -22.3 Operating Income 578.6 619.5 +40.8 Transportation 556.8 593.1 +36.3 Merchandise and 8.7 7.5 -1.2 Other Real Estate 15.6 18.1 +2.5 Other -1.7 1.6 +3.4 *Breakdown by segment shows figures prior to intersegment offsetting and elimination. The sum of breakdown figures does not agree with operating revenues and operating income. 14#15FY2016.3 Results A Net cash provided by operating activities (A) Statement of Cash Flows (Consolidated) Bo (Billions of yen) Changes FY2017.3 Results B (B-A) 601.4 580.5 -20.9 Net cash used in investment activities -170.3 -1,909.5 -1,739.2 Payments for purchases of property, plant and equipment and intangible assets (B) -252.3 -330.1 -77.8 Proceeds/payments for money held in trust for the Chuo Shinkansen construction -1,472.7 -1,472.7 Proceeds/Payments from funds management 82.0 -106.7 -188.7 Net cash used in financing activities -242.8 1,425.1 1,668.0 of which proceeds from long-term debt for the Chuo Shinkansen construction 1,500.0 1,500.0 Net increase in cash and cash equivalents 188.3 96.2 -92.1 Cash and cash equivalents, beginning of year 130.0 318.3 188.3 Cash and cash equivalents, end of year 318.3 414.5 96.2 Substantial free cash flow ((A) + (B)) 349.1 250.4 -98.7 15#16Income Statement (Non-consolidated) (Billions of yen) FY2016.3 FY2017.3 Changes (B-A) Results A Results B Operating Revenues 1,357.9 1,380.7 +22.7 (Transportation Revenues) (1,294.7) (1,315.8) (+21.1) Operating Expenses 800.3 784.9 -15.3 Personnel Expenses 179.4 179.2 -0.1 Non-personnel Expenses 358.3 354.9 -3.3 Energy 40.5 35.7 -4.8 Maintenance 131.9 134.6 +2.6 Others 185.7 184.5 -1.1 Taxes other than Income 35.3 39.6 +4.3 Taxes Depreciation & Amortization 227.0 210.9 -16.1 Operating Income 557.6 595.8 +38.1 Ordinary Income 490.5 541.2 +50.7 Net Income 328.6 381.8 +53.2 16#17Year-End Investor Meeting FY2017.3 (Fiscal Year Ended March 31, 2017) III. Performance Forecast for FY2018.3; Deployment of Key Measures Director, Senior Corporate Executive Officer and Director General of the Corporate Planning Division Yoshiki Suyama Central Japan Railway Company April 28, 2017 17#18Transportation Status of the Tokaido Shinkansen (passenger volume at Tokyo) Steady performance for both business and tourism FY2016 results: Up 102% year on year (Weekdays 102%, Weekends and holidays 101%*) *For weekdays, weekends and holidays, comparison of daily average 365 services/day 112 (%) 336 services/day 342 services/day 350 services/day 358 services/day 114 112 110 110 107 108 106 104 105 103 103 103 103 104 102 102 102 102 102 102 102 100 104 104 105 103 100 100 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Compared to 2012 (by fiscal year) Year-on-year change (by quarter) Italics: Number of actual services (by fiscal year) Secure a high level comparable to the results of the previous year FY2017 (Forecast): 100% year on year 18#19Full-Year Performance Forecast (Non-consolidated) (Billions of yen) FY2017.3 Results A FY2018.3 Forecast B Changes (B-A) Operating Revenues 1,380.7 1,383.0 +2.2 (Transportation Revenues) (1,315.8) (1,315.8) (-) Operating Expenses 784.9 822.0 +37.0 Personnel Expenses 179.2 180.0 +0.7 Non-personnel Expenses 354.9 400.0 +45.0 Energy 35.7 42.0 +6.2 Maintenance 134.6 157.0 +22.3 Others 184.5 201.0 +16.4 Taxes other than Income 39.6 41.0 +1.3 Taxes Depreciation & Amortization 210.9 201.0 -9.9 Operating Income 595.8 561.0 -34.8 Ordinary Income 541.2 478.0 -63.2 Net Income 381.8 335.0 -46.8 19#20Expenses for future growth Technological development expenses for the Tokaido Shinkansen and Superconductive Maglev Up approximately 10.0 billion yen year on year 30 N700S validation test vehicles Expenses associated with aggressive capital investment Brush-up of Superconducting Maglev Technology Up approximately 9.0 billion yen year on year 東海道・山陽新幹線 発車案内 Tōkaidō, Sanyō Shinkansen Departures 列車名 列車番号 Train Train No. 時刻 Time 行先 Destination 番線 Tracks 自由席 停車駅 のぞみ 25 10:30 博多 18 1-3 号車 東品新 名 京新新 神 NOZOMI Hakata 京川景 間 K ch P 14 S ひかり509 10:33 新大阪 15 1-5 号車 東品新 多質米京麵 3- Shin-Osaka 東川 8 5 のぞみ 107 NOZOMI 10:50 広島 Hiroshima 6 1-3 号車 東品 京新新 姬 A 震川景 MP 路 山 7 6 こだま 649 10:56 新大阪 14 1-7,13-15 KODAMA Shin-Osaka a 号車 京川浜原海島士岡川松橋 [診掛浜券 名慈米京新 * HIKARI ひかり 469 11:03 岡山 15 1-5 号車 Okayama 東品新 東川景 三 浜 名 京新新西姫相同 大神明 松 Large-scale renovation (concrete bridges) 阪戸石 生 【お客様へのお願い】 駅及び車内への危険物の持ち込みは禁止されておりま Upgrade of operating information guidance facility Expenses for reducing future management risk Up approximately 25.0 billion yen year on year ■Long-term debt for the Chuo Shinkansen construction 20#21Full-Year Performance Forecast (Consolidated) (Billions of yen) FY2017.3 FY2018.3 Changes Results A Forecast B (B-A) Operating Revenues 1,756.9 1,760.0 +3.0 Transportation 1,380.4 1,380.0 -0.4 Merchandise and Other 237.0 245.0 +7.9 Real Estate 68.6 78.0 +9.3 Other 253.9 250.0 -3.9 Operating Expenses 1,137.4 1,177.0 +39.5 Operating Income 619.5 583.0 -36.5 Transportation 593.1 558.0 -35.1 Merchandise and Other 7.5 8.0 +0.4 Real Estate 18.1 17.0 -1.1 Other 1.6 1.0 -0.6 Non-operating Income (Loss) -55.5 -84.0 -28.4 Ordinary Income 563.9 499.0 -64.9 Net Income Attributable to Owners of the 392.9 348.0 -44.9 Parent * Breakdown by segment shows figures prior to intersegment offsetting and elimination. The sum of breakdown figures does not agree with operating revenues and operating income. 21#22Initiatives for Ensuring Safe and Reliable Transportation Tokaido Shinkansen large-scale renovation Continue to conduct measures to inhibit aging damage for steel bridges, concrete bridges, and tunnels*1 Fiscal year 2013 2014 2015 2016 2017 2018 2019 2020 and thereon Investment results/plan 9.5 30.2 35.5 34.0 37.0 (Billion yen) Approximately 74.0*2 of which amount posted to P/L 6.9 19.5 24.1 23.3 25.0 To be determined *1 Measures to extend the life of structures by inhibiting the very occurrence of aging damage, such as cracks caused by aging of civil engineering structures. To be determined Large-scale renovation (tunnels) *2 Calculation based on 145.0 billion yen for FY2016 to FY2019 Anti-earthquake measures Tokaido Shinkansen → Derailment and deviation countermeasures, etc. Conventional lines ⇒ Earthquake resistance work for Nagoya Workshop, etc. Common Measures to prevent ceilings in stations from falling Summary for derailment and deviation countermeasures *3, 4 Fiscal year Investment results/plan (Billion yen) Implementation of derailment prevention guards (km) Overall plan 2009 to 2028 2009 to 2015 2016 2017 2018 and thereon Approximately 210.0 73.4 12.4 15.0 Approximately 109.0*5 1,072 360 67 75 570 *3 Installation of derailment prevention guards (including replacement of PC sleepers), measures for structures, deviation prevention stoppers (completed at the end of FY2012) *4 Former plan summary → Overall plan for 2009 to 2019; approximately 134.0 billion yen; implementation of derailment prevention guards for 596 km *5 Calculated based on estimated construction cost for the overall plan (approximately 210.0 billion yen) 22 Bo#23Chuo Shinkansen Project - Status of Construction Progress Planned route Main construction contract section Yamanashi Maglev Line Station Station (main construction contract) Emergency exit (construction contract) Aichi Prefecture Gifu Prefecture Nagano Prefecture TE 4 1 山 Yamanashi Prefecture 京山 Tokyo Metropolis 2,3 Yamanashi Maglev Line Kanagawa Prefecture Great depth section Great depth section Shizuoka Prefecture FY2015 construction contract This map is a copy of the one-millionth map of Japan issued by the Geospatial Information Authority of Japan (GSI) with the approval of the Director-General of GSI. (Approval number 2013 copy No. 310) Names of main construction contracts concluded thus far 1. Southern Alps Tunnel (Yamanashi construction section) [Yamanashi Prefecture] (August 2015) 2. Shinagawa Station (North construction section) [Tokyo Metropolis] (September 2015) 3. Shinagawa Station (South construction section) [Tokyo Metropolis] (October 2015) 4. Southern Alps Tunnel (Nagano construction section) [Nagano Prefecture] (February 2016) 23#24Chuo Shinkansen Project - Status of Construction Progress Planned route Main construction contract section Yamanashi Maglev Line Nagano Prefecture Bo 5 Station Station (main construction contract) Emergency exit (construction contract) Aichi Prefecture Gifu Prefecture 11 17 9 14 15 TE Yamanashi Prefecture 10 4 1 Tokyo Metropolis 8 2,3 7 16 18 6 Kanagawa Prefecture 山 Yamanashi Maglev Line Great depth section 1. 2. 3. 4. 5. 6. 7. 8. 12, 13 Great depth section Shizuoka Prefecture FY2016 construction contract FY2015 construction contract This map is a copy of the one-millionth map of Japan issued by the Geospatial Information Authority of Japan (GSI) with the approval of the Director-General of GSI. (Approval number 2013 copy No. 310) Names of main construction contracts concluded thus far Southern Alps Tunnel (Yamanashi construction section) [Yamanashi Prefecture] (August 2015) Shinagawa Station (North construction section) [Tokyo Metropolis] (September 2015) Shinagawa Station (South construction section) [Tokyo Metropolis] (October 2015) Southern Alps Tunnel (Nagano construction section) [Nagano Prefecture] (February 2016) Meijo emergency exit [Aichi Prefecture] (April 2016) Kita-Shinagawa emergency exit and electrical substation (underground section) [Tokyo Metropolis] (April 2016) Onoji emergency exit and other [Tokyo Metropolis] (April 2016)* Shinagawa Station (non-excavation construction section) [Tokyo Metropolis] (May 2016) 9. Hiyoshi Tunnel (Minamigaito construction section) [Gifu Prefecture] (June 2016) 10. No. 4 Minamikoma Tunnel (west construction section) [Yamanashi Prefecture] (July 2016) 11. Central Alps Tunnel (Yamaguchi) [Nagano and Gifu Prefectures] (August 2016)* 12. Nagoya Station (central east construction section) [Aichi Prefecture] (September 2016) 13. Nagoya Station (central west construction section) [Aichi Prefecture] (September 2016) 14. Ina Mountains tunnel (Sakajima construction section) [Nagano Prefecture] (September 2016) 15. Sakashita emergency exit [Aichi Prefecture] (October 2016) 16. Higashi Yurigaoka emergency exit [Kanagawa Prefecture] (November 2016) 17. Central Alps Tunnel (Matsukawa etc.) [Nagano Prefecture] (December2016)* 18. Kajigaya emergency exit and material loading area [Kanagawa Prefecture] (February 2017) *Names of construction contracts concluded by Japan Railway Construction, Transport and Technology Agency 24#25Long-term Debt Forecast Properly control the total amount of long-term debt going forward Corporate Bonds Long-Term Loans No. 1 debt No. 2 debt No. 3 debt Long-term debt for the Chuo Shinkansen construction (Billions of yen) 5,456.2 5,000 4,000 3,000 2,000 1,000 ☐ //////// /////////// ///////////////// ///////// ////////////// Long-Term Account Payable-Railway Facilities 0 1991 1996 //////////////////////// \\/////////////////////// ■2017 Long-term debt (Plan) (Billions of yen) Balance as of Excluding the "Chuo" year-end (( ) for the "Chuo ") Changes Balance as of year-end Changes Consolidated 4,859.4 1,464.0 1,859.4 -36.0 Non- consolidated 4,859.0 1,490.0 (3,000.0) (1,500.0) 1,859.0 -10.0 \\/////////////////// //////////////// \\///////////////// \\///////////////// 3,000.0 *"Chuo" = Long-term debt for construction of the Chuo Shinkansen \\////// \\//////// ///// /// W W 2001 2006 2011 Transition of JR Central long-term debt (non-consolidated) 1,859.0 //I ☑ (Fiscal year) 2016 2017 Plan 25#26Forward-looking statements and forecasts, etc. contained in this document are future prospects based on information available at the time of preparation of this document and include risks and uncertainties. Examples of latent risks and uncertainties include; economic conditions, business environment, consumer trends, status of competition between the Company and its subsidiaries and other firms. Changes to laws and regulations, etc., may also be cited.