CENTRAL JAPAN RAILWAY COMPANY Annual Report 2007

In addition to this capital, JR Central used the capital which was retained in the previous fiscal year and capital obtained from
issuing corporate bonds and through long-term loans to repay long-term liabilities incurred for purchase of Shinkansen railway
ground facilities and other long-term debt, and to repurchase stocks on April 5, 2006 (¥308.9 billion).
As a result of the above, cash flown from financial activities recorded a net increase of ¥81.4 billion over the previous fiscal year, and
at the end of the period, cash and cash equivalents decreased by ¥135.9 billion over the previous fiscal year to ¥36.7 billion.
2) Decrease in long-term debt and long-term payables
In this period, due to the capital burden that accompanied the acquisition of repurchased stock, whereas a decrease of ¥7 billion was
originally planned, in actuality we were able to achieve a decrease of ¥47 billion. As a result, the balance of long-term debt as of
FY2007.3 was ¥3,498.5 billion. The majority of the outstanding long-term debt and long-term payables at the end of the period was
accounted for by non-consolidated long-term debt and long-term payables.
When JR Central purchased the Tokaido Shinkansen ground facilities in October 1991, the company was burdened with total longterm
debt and long term payables of over five times its annual railway operations revenues, including the liabilities inherited from
JNR at its breakup and privatization. Because JR Central considers the reduction of these long-term debt and long-term payables to be
its most important financial issue, the company has endeavored to reduce the debt as rapidly as possible. Consequently, total longterm
debt and long-term payables of ¥5,456.2 billion at the end of fiscal 1991,which was immediately after JR Central took over the
Tokaido Shinkansen assets, has been reduced by ¥2,040.5 billion over 15 years. However, at the end of the current period, outstanding
long-term payables still stood at ¥3,415.6 billion.
Going forward, JR Central will continue to work towards enhancing profitability and reducing costs, in addition to further
strengthening our financial position by steadily reducing long-term debt and long-term payables through the efficient capital
investment and the efficient turnover of working capital.
3) Procurement of capital
JR Central procures capital from various sources and acquires ratings from Moody’s Investment Service and Rating and Investment
Information, Inc (R&I) in order to facilitate smooth fund raising. Credit ratings for corporate bonds issued during the current period
are Aa2 from Moody’s Investment Service and AA from R&I.
Further, in order to ensure short-term liquidity, JR Central has established a commitment line of ¥100.0 billion as of the end of the
current period.
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