The earthquake continued to impact our performance in the fiscal year ended in March 2012. But the recovery in passenger volume on the Tohoku Shinkansen and other lines was faster than expected. So we made much progress even in this difficult environment. Operating revenues were down for the fourth consecutive year as the earthquake caused transportation revenues to drop sharply. In response we cut back on expenses and net income increased for the first time in four years as a result. Consolidated operating income, ordinary income and net income were all higher than the January 2012 forecast, in which we raised our earnings outlook for the fiscal year.

The earthquake impacted our performance in many ways. We suspended train operations and temporarily closed shopping centers. Furthermore, people held back on expenditures after the earthquake and the Fukushima nuclear power station accident made people even more reluctant to travel. Overall, we estimate that the earthquake cut operating revenues by roughly a combined ¥136 billion in the past two fiscal years. In addition, we recorded consolidated extraordinary losses of ¥75 billion for payment for the restoration of damaged railway facilities and other property, removal of damaged or lost fixed assets, and estimates for restoration and other expenses.

Despite the impact of the earthquake on our performance, the past fiscal year was a period of many accomplishments at JR East. Every time we resumed operations on a line that was damaged, we received many messages of appreciation. In particular, people were very happy when we restarted Shinkansen operations. I will never forget these expressions of happiness and appreciation. The earthquake had a severe effect on our performance, mainly due to lower revenues and restoration expenses. However, I believe that our ability to work together to overcome the difficulties created by the earthquake has given JR East a sense of confidence and pride that more than offsets the cost of earthquake damage. The large number of employees who responded to this disaster reaffirmed "the strength of our bonds with the communities we serve." Recovery activities also demonstrated "the magnitude of the expectations that people have for JR East." Everyone at JR East has an even stronger awareness of the importance of our role as a company responsible for providing railway services as social infrastructure. We are moving forward with a renewed commitment to fulfilling the "mission of railways" in order to meet society’s great expectations.