(Translation)
Consolidated Financial Results
for the Three-Month Period Ended June 30, 2022
(Japanese GAAP)
August 2, 2022
Company name:
Stock exchange listings:
Securities code:
URL:
Representative:
Contact:

Kyushu Railway Company
Tokyo and Fukuoka
9142
https://www.jrkyushu.co.jp/
Yoji Furumiya, President and CEO
Kazuyo Hisano, General Manager, Public Relations Department
Tel.: +81-92-474-3677

Scheduled date for filing of quarterly report:
Planned Date of dividend payment commencement:
Preparation of supplementary explanations for financial results:
Holding of a briefing on quarterly financial results:

August 5, 2022
－
Yes
None

(Amounts less than one million yen, except for per share amounts, are omitted.)

1. Consolidated Financial Results for the Three-Month Period Ended June 30, 2022
(From April 1, 2022 to June 30, 2022)(1) Consolidated operating results(Percentages show year-on-year changes.)

Operating revenue
Three months ended
June 30, 2022
June 30, 2021

Millions of yen
90,47672,097(Note) Comprehensive income:Three months ended
June 30, 2022
June 30, 2021

Operating income% Millions of yen
25.5
7,883
16.6
(1,333)%－－

Net income attributable toowners of the parent

Ordinary income
Millions of yen
8,557
385

%
－
－

Millions of yen
6,915
927

Three months ended June 30, 2022: ¥8,216 million (248.0%)
Three months ended June 30, 2021: ¥2,360 million (－%)

Net income per share— basic

Net income per share— diluted

Yen
44.01
5.90

Yen
－
－

(2) Consolidated financial position
Total assets
Net assets
Millions of yen
Millions of yen
901,932
382,612
As of June 30, 2022
951,980
389,024
As of March 31, 2022
(Reference) Shareholders’ equity:
As of June 30, 2022: ¥381,821 million
As of March 31, 2022: ¥388,331 million

Equity ratio
%
42.3
40.8

%
646.0
－

2. DividendsFirstquarter-end
Yen－－

Year ended March 31, 2022
Year ending March 31, 2023
Year ending March 31, 2023
(Forecast)

Annual dividends
SecondThird
quarter-end
quarter-end
Yen
Yen
0.00
－
0.00

－

Fiscalyear-end
Yen
93.00

Total

93.00

Yen
93.00
93.00

(Note) Revisions to the most recently disclosed dividend forecasts: No

3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2023
(April 1, 2022 to March 31, 2023)(Percentages for the full year show year-on-year changes.)

Full year

Operating revenue

Operating income

Millions ofyen
381,400

Millions of%yen
29,000 635.2%
15.7

Net income
Net income per
attributable to owners
shareof the parent
Millions ofMillions of
%
%
Yen
yen
yen
30,000 224.8
24,500 84.9
155.93

Ordinary income(Note) Revisions to the most recently disclosed financial forecasts: No

Notes(1) Changes in significant subsidiaries during the three months ended June 30, 2022 (changes in specified subsidiaries
affecting the scope of consolidation): No(2) Application of special accounting treatment in preparing the quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and restatement of revisions
i Changes in accounting policies with revision of accounting standards: Yes
ii Changes in accounting policies other than the above: No
iii Changes in accounting estimates: No
iv Restatement of revisions: No(Notes)For details about i, please refer to “(3) Notes to Quarterly Consolidated Financial Statements, Changes in Accounting Policies” on page
12 of the accompanying materials.

(4) Number of shares outstanding (common stock)i

Number of shares issued andoutstanding at end of period(including treasury stock)ii Number of shares of treasury
stock at end of period
iii Average number of shares during
the period

As of June 30,
2022

157,301,600
shares

As of March 31,
2022

157,301,600
shares

As of June 30,2022

183,705
shares157,117,895
shares

As of March 31,
2022

183,705
shares157,117,000
shares

As of June 30,2022

As of June 30,2021

Note: The number of shares of treasury stock at the end of the period includes the number of shares of the Company’s stock held by the Board
Benefit Trust (BBT) (First quarter of FY2023/3, 183,700 shares; FY2022/3, 183,700 shares). In addition, the number of shares of theCompany’s stock held by the Board Benefit Trust (BBT) is included in the treasury stock that is subtracted in the calculation of theaverage number of shares during the period (First quarter of FY2023/3, 183,700 shares; First quarter of FY2022/3, 184,600 shares).

* This summary of consolidated financial results is not subject to quarterly reviews by certified public accountants or corporate
auditors.

* Explanation of Appropriate Uses of Performance Forecasts and Other Important Items:
Performance forecasts and other forward-looking statements appearing in this document are based on currently available
information and specific assumptions deemed rational, and are not assurances that the Company will achieve these forecasts.
Actual performance can vary greatly depending on various factors such as fluctuations in interest rates, fluctuations in shareprices, changes in exchange rates, fluctuations in the value of assets, changes in the economic and financial environment,changes in the conditions of competition, occurrences of large-scale and other disasters, and changes in regulations.
Supplementary quarterly materials are attached to this summary of consolidated financial results.

Contents of Accompanying Materials
1. Qualitative Information on Quarterly Consolidated Financial Performance ....................... 2(1) Qualitative Information on Consolidated Operating Results ................................................. 2(2) Qualitative Information on Consolidated Financial Position ................................................. 7(3) Qualitative Information on Consolidated Performance Outlook ............................................ 7
2. Quarterly Consolidated Financial Statements and Major Notes ........................................... 8(1) Consolidated Balance Sheets .................................................................................................. 8(2) Consolidated Statements of Income and Comprehensive Income ......................................... 10
Quarterly Consolidated Income Statements
Consolidated Cumulative First Quarter ............................................................................ 10
Quarterly Consolidated Comprehensive Income Statements
Consolidated Cumulative First Quarter .......................................................................... 11(3) Notes to Quarterly Consolidated Financial Statements .......................................................... 12(Notes on Going Concern Assumption) ................................................................................. 12(Notes on Significant Changes in the Value of Shareholders’ Equity) ................................... 12(Changes in Accounting Policies) .......................................................................................... 12(Segment Information) ........................................................................................................... 13(Significant Subsequent Events) ............................................................................................ 13○(Financial results presentation materials)
Financial Results for the First Quarter of FY2023/3 (Cumulative total for the three-month period from April to June)- 1 -1. Qualitative Information on Quarterly Consolidated Financial Performance
Forward-looking statements in this document are based on assessments as of the end of the first quarter ofthe fiscal year ending March 31, 2023.
(1) Qualitative Information on Consolidated Operating Results
In the first quarter of the fiscal year ending March 31, 2023, the Japanese economy showed signs of amodest rebound, centered on personal consumption initially. As the number of new COVID-19
infections trended downward, restrictions on behavior and socioeconomic activity began to normalize.
However, the number of new COVID-19 infections began to increase again in late June, and raw
materials prices rose as the situation in the Ukraine was prolonged. Owing to such factors, theeconomic outlook remains uncertain, and the Group’s operating environment appears likely to remainchallenging.
Against this backdrop, the JR Kyushu Group advanced under the three key strategies of JR Kyushu
Group Medium-Term Business Plan 2022–2024, its three-year plan commencing from the fiscal year
ending March 31, 2023. The strategies are “completing business structural reforms,” “creating a model
for building cities that promote well-being,” and “developing businesses in new areas in which we cancontribute.” In addition, we focused on developing human resources for the implementation andrealization of strategies, and on building foundations for advancing strategies on a Groupwide basis.
As a result, operating revenue was up 25.5% year on year, to ¥90,476 million; operating income was¥7,883 million (compared with operating loss of ¥1,333 million in the same period of the previous fiscal
year); EBITDA increased 192.5%, to ¥14,747 million; ordinary income was ¥8,557 million (comparedwith ordinary income of ¥385 million in the same period of the previous fiscal year); and net income
attributable to owners of the parent increased 646.0%, to ¥6,915 million.
(Note) EBITDA for the consolidated period under review is the numerical value of operating income
plus the cost of depreciation (excluding the cost of depreciation related to lease assets held forthe purpose of subleasing).

- 2 -The Group’s business performance by segment is as follows. Reportable segments have been revised
from the first quarter under review. In the year-on-year comparisons below, results from previous years
have been retroactively adjusted to match the new segment classifications.
(Millions of Yen)
Operating revenue
FY2023/3,
consolidated
cumulative
first quarter(three months
ended June30, 2022)

Operating income / loss
FY2023/3,
consolidated
cumulative
first quarter(three months
ended June30, 2022)

YoY

EBITDA (Note 2)

YoY

FY2023/3,
consolidated
cumulative
first quarter(three months
ended June30, 2022)

YoY

Transportation

31,427

8,379

36.4%

2,387

7,703

－

4,804

8,061

－

Real Estate and Hotels

32,623

6,702

25.9%

5,186

1,262

32.2%

8,623

1,210

16.3%

Real estate lease

14,901

831

5.9%

3,774

44

1.2%

6,681

14

0.2%

Real estate sale

14,483

4,275

41.9%

1,552

164

11.8%

1,557

164

11.8%

Hotel

3,238

1,595

97.1%

(140)

1,054

－

384

1,031

－

Retail and Restaurant

12,303

2,849

30.1%

(13)

812

－

298

841

－

Construction

16,319(949)(5.5%)

(410)

(591)

－

(147)

(565)

－

Business Services

16,785

764

4.8%

992

325

48.8%

1,515

455

43.0%

Total

109,459

17,746

19.3%

8,142

9,512

－

15,09410,004 196.6%

Adjustment (Note 1)(18,982)

632

－

(259)

(295)

－

(346)

(297)

90,476

18,378

25.5%

7,883

9,217

－

14,747

9,706 192.5%－

Amount on the
consolidated financial
statements(Notes) 1. Adjustments reflect the elimination of intersegment transactions.
2. Consolidated EBITDA = operating income + depreciation (after elimination of intersegment transactions,excluding depreciation of leased assets held for subleasing purposes), segment EBITDA = segment operating
income + segment depreciation (after elimination of intersegment transactions, excluding depreciation of leased
assets held for subleasing purposes)i) Transportation GroupIn the railway business, the Company worked to ensure safety and implemented measures to preventthe spread of COVID-19. In light of these factors, we worked to secure revenues. In addition, we
strove to reduce costs, particularly fixed costs, which account for a high percentage of costs in therailway business. Also, we worked steadily to prepare for the September 2022 opening of the NishiKyushu Shinkansen.
We promoted safety creation activities based on the understanding that safety is the foundation of
everything we do. The slogan of the activities was “Save lives!! Understand the rules and put theminto practice.” In addition, we steadily made safety-oriented investments, such as introducing newrolling stock, replacing aging facilities, and introducing disaster-prevention measures.
On the service front, we promoted initiatives aimed at emphasizing a corporate culture founded onservice. The theme of these initiatives is “I listen to customer feedback, and think and act on behalf of- 3 -the Company.” In addition, as an initiative to enhance customer convenience, we had been conducting
a demonstration experiment on the introduction of limited-express tickets that can be purchased via the
PayPay app provided by PayPay Corporation. In April 2022, we decided to commence sales for theentire year.
In marketing, leading up to the opening of the Nishi-Kyushu Shinkansen in September 2022, we
conducted a tourism campaign communicating the appeal of Saga and Nagasaki. We also ran acampaign styled “LOVE & MEET by SHINKANSEN,” targeting the Fukuoka, Kumamoto, andKagoshima areas. In June 2022, we extended the EX Service (internet reservations and ticketlessboarding) area to the Kyushu Shinkansen and ran promotions to encourage use. In addition, based on
customer usage and the introduction of the EX Service, we reevaluated limited-express surcharges on
conventional lines, stopped selling some discount tickets, and revised prices.
In transportation, while implementing infection prevention measures at stations and on trains, we
worked to maintain the transportation network, which is an important aspect of regional social
infrastructure. Due to the impact of heavy rain that occurred in northern Kyushu in July 2017, we are
implementing substitute forms of transportation between Soeda Station and Yoake Station on the
Hitahikosan Line. We are preparing to restore service by introducing a bus rapid transit (BRT) systemalong the Hitahikosan Line (nicknamed the “BRT Hikoboshi Line”). We are working to commenceservice in summer of 2023. We are also introducing alternative means of transportation on certain
sections of the Hisatsu Line that were seriously damaged by heavy rains in July 2020.
In our bus business, we reduced service in line with usage conditions, while working to create anenvironment in which customers can use bus services with peace of mind through measures to preventof infection. In addition, in March 2022 we introduced a dynamic pricing fare system on a high-speed
bus route. Under this system, fares are changed flexibly within a wider price range in line with themost-recent reservation circumstances.
In our passenger ship business, as a protection measure to prevent the spread of the COVID-19
infection, the Japanese government requested the halting of passenger transportation operations, andoperations have been suspended on all scheduled routes since March 2020. Also, as an initiative to be
implemented during the suspension of service on scheduled routes, we continued domestic sightseeing
operation of the “QUEEN BEETLE” new-style hydrofoil ferry. In addition, in March 2022 wechanged the QUEEN BEETLE to Japanese registry and began operating the ferry between two points
in Japan.
In the field of new mobility services (MaaS), we have already commenced operations in Fukuoka,
Saga, Oita, and Miyazaki prefectures. In collaboration with transportation operators in each region, we
promoted efforts to realize seamless transportation services using the “my route” MaaS application. In
addition, we cooperated with local governments, transportation operators, and others to expand theservice to prefectures where it has not yet been introduced and to provide integrated services in thewider Kyushu region.
As a result, the Transportation Group recorded operating revenue of ¥31,427 million, up 36.4% year on
year; an operating income of ¥2,387 million (compared with operating loss of ¥5,316 million in the same
period of the previous fiscal year); and EBITDA of ¥4,804 million (compared with negative EBITDAof ¥3,257 million in the same period of the previous fiscal year).

- 4 -ii) Real Estate and Hotels GroupIn the real estate leasing business, we have seen a moderate recovery in tenant sales at each stationbuilding since the lifting of infection prevention and other priority measures, and occupancy at theoffices and rental condominiums we own has remained strong. In March 2022, we also opened
Nagasaki Kaido Kamome Ichiba, which is under the elevated railway tracks at Nagasaki Station. Withmoves such as these, we are making steady development progress toward the planned opening of the
new Nagasaki Station building in autumn 2023.
In the real estate sale business, we sold one office building. We also handed over condominium units,
including “MJR the Garden Kashii,” and recorded sales from them. While instituting infection
prevention measures at model rooms, we engaged in sales efforts at “MJR Kumamoto The Tower,”“MJR Kumamoto Station South,” “MJR Kagoshima Eki Park Front,” and other condominium
buildings.
In the hotel business, we worked actively to capture mobility demand associated with tourism
campaigns such as the Kyushu Block Discount. We also continued with efforts to reduce costs andimprove profitability. In addition, we continued preparations to open “THE BLOSSOM KYOTO” inAugust 2022.
As a result, the Real Estate and Hotels Group posted operating revenue of ¥32,623 million, up 25.9%
year on year; operating income of ¥5,186 million, up 32.2%; and EBITDA of ¥8,623 million, up 16.3%.
iii) Retail and Restaurant GroupIn the retail business, we sought to build back revenues from station stores, especially souvenir shops,
amid a modest recovery in mobility demand and personal consumption. We also made progress onrenovating convenience stores. To reinforce our roadside store offerings, our subsidiary, JR Kyushu
Retail, Inc. entered a franchise agreement with Chateraise Co., Ltd. Also, April 2022 marked theopening of the first store under this agreement, a confectionery shop called Chateraise Sawara-ku Hara
In the restaurant business, we opened restaurants in suburban commercial facilities, such as “Mitsui
Shopping Park LaLaport FUKUOKA” and “THE OUTLETS KITAKYUSHU.” We also worked toenhance management efficiency, such as by closing unprofitable restaurants.
As a result, the Retail and Restaurant Group posted operating revenue of ¥12,303 million, up 30.1%
year on year; operating loss of ¥13 million (compared with operating loss of ¥825 million in the same
period of the previous fiscal year); and EBITDA of ¥298 million (compared with negative EBITDA of¥543 million in the same period of the previous fiscal year).

- 5 -iv) Construction GroupIn the construction business, we leveraged specialized skills in the railway business to ensure safe,
stable railway operations through railway-related civil engineering, railroad track, and construction
work as well as through maintenance operations and rolling stock equipment work. In railway
construction, we made steady progress on such projects as the Nishi-Kyushu Shinkansen, theHokuriku Shinkansen, and Haga Utsunomiya LRT. In addition, JR Kyushu Electric System Company,a subsidiary of the Company, installed optical fiber cables in Shinkansen structures between Hakata
Station and Kagoshima-Chuo station and started an optical-fiber core wire leasing service from March
2022. Furthermore, we worked to obtain orders from government and municipal offices and fromprivate enterprises for work related to condominiums and other projects. We also endeavored to reduce
costs.
As a result, the Construction Group recorded operating revenue of ¥16,319 million, down 5.5% year on
year; operating loss of ¥410 million (compared with operating income of ¥180 million in the same periodof the previous fiscal year); and negative EBITDA of ¥147 million (compared with EBITDA of ¥417
million in the same period of the previous fiscal year).
v) Business Services GroupFor the construction machinery sales, rental, and advertising business, we worked to secure earnings
through aggressive sales activities. In addition, in line with our alliance strategy in the field of
information systems, JR Kyushu System Solutions Inc., a Company subsidiary, entered a businessalliance with Keyware Kyusyu Inc. to jointly create a cloud data center service.
As a result, the Business Services Group posted operating revenue of ¥16,785 million, up 4.8% year on
year; operating income of ¥992 million, up 48.8%; and EBITDA of ¥1,515 million, up 43.0%.
(Note) EBITDA for the consolidated period under review is the numerical value of operating income
plus the cost of depreciation (excluding the cost of depreciation related to lease assets held forthe purpose of subleasing).

- 6 -(2) Qualitative Information on Consolidated Financial Position
Total assets as of June 30, 2022, were down 5.3% compared with the previous fiscal year-end, to¥901,932 million. Current assets decreased 28.9%, to ¥146,953 million, due to the collection of accounts
receivable-trade and other factors. Non-current assets increased 1.3%, to ¥754,978 million, due
principally to the acquisition of property, plant and equipment, etc.
Meanwhile, total liabilities decreased 7.8% compared with the previous fiscal year-end, to ¥519,319
million. Current liabilities decreased 8.7%, to ¥166,146 million, due to payment of accounts payabletrade and payables and other factors. Non-current liabilities were down 7.3%, to ¥353,173 million, as aresult of a decrease in bonds, owing to a transfer to the current portion of bonds, and other factors.
Furthermore, total equity decreased 1.6% compared with the previous fiscal year-end, to ¥382,612
million, due primarily to a decrease in retained earnings resulting from the payment of dividends, etc.
(3) Qualitative Information on Consolidated Performance Outlook
In regard to our full-year performance forecasts for FY2023/3, there are no revisions to the forecasts
announced on May 10, 2022.
Moreover, the performance outlook was prepared based on information available as of the release dateof these materials, and there are cases where actual performance differs from outlook figures due tovarious factors that arise going forward.

- 7 -2. Quarterly Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(Millions of Yen)
FY 2022/3(As of March 31, 2022)
ASSETS
Current assets
Cash and time deposits
Notes and accounts receivable–trade, and contract
assetsFares receivable
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and fixtures (net)
Machinery, rolling stock and vehicles (net)Land
Lease assets (net)
Construction in progress
Other (net)Net property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Net defined benefit assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 8 -FY 2023/3, First Quarter(As of June 30, 2022)

39,70933,45545,536

31,252

2,224
39,027
19,757
19,6308,058
32,821(42)
206,722

1,739
19,016
7,226
26,051
9,285
18,964(39)
146,953

312,746
44,001
147,142
19,66844,0407,708
575,308
5,735

309,998
45,204
149,825
21,08550,037
7,636
583,788
5,488

45,08662,996
1,007
56,191(1,067)
164,214745,257
951,980

46,58061,217962
58,037(1,095)
165,702754,978
901,932(Millions of Yen)
FY 2022/3(As of March 31, 2022)
LIABILITIES AND EQUITYCurrent liabilities
Notes and accounts payable–trade
Short-term loans
Commercial papers
Current portion of bonds
Current portion of long-term debt
PayablesAccrued income taxes
Fare deposits received with regard to railway
connecting services
Railway fares received in advanceAccrued bonuses
Other
Total current liabilities
Non-current liabilities
Corporate bonds
Long-term debt
Allowance for safety and environmental measures
Allowance for disaster-damage losses
Net defined benefit liabilities
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
EQUITY
Shareholders’ equity
Common stock
Capital surplus
Retained earnings (Deficit)
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized gain on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total equity
TOTAL LIABILITIES AND EQUITY- 9 -FY 2023/3, First Quarter(As of June 30, 2022)

28,9086,070
35,0008,780
46,564
1,693

15,205
5,858
15,00020,00014,80634,490
184

1,705

1,700

4,818
7,066
41,466
182,074

5,616
5,023
48,260166,146

120,000
153,336854
2,115
48,8901,448
54,234
380,881562,955

100,000
146,671854
2,000
48,471
1,435
53,740353,173
519,319

16,000225,847
147,941(591)
389,198

16,000225,847
140,227(591)
381,484

4,781
(441)
(5,206)(866)
692
389,024
951,980

5,660
(315)
(5,007)
336
791
382,612
901,932(2) Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Income Statements
Consolidated Cumulative First Quarter(Millions of Yen)
FY 2022/3, First Quarter(Three months ended June 30,
2021)
OPERATING REVENUEOPERATING EXPENSE
Transportation, other services and cost of sales
Selling, general and administrative expense
Total operating expense
OPERATING INCOME (LOSS)NON-OPERATING INCOME
Interest income
Dividend income
Gain on assets held in trust
Gain on foreign exchange
Other
Total non-operating income
NON-OPERATING EXPENSEInterest expense
Loss on valuation of derivatives
Loss on foreign exchange
Other
Total non-operating expense
ORDINARY INCOMEEXTRAORDINARY GAINS
Construction grants received
Other
Total extraordinary gains
EXTRAORDINARY LOSSES
Losses from provision for cost reduction of fixed assets
Other
Total extraordinary losses
INCOME BEFORE INCOME TAXESINCOME TAXES -Current
INCOME TAXES -Deferred
Total income taxes
NET INCOME
NET INCOME (LOSS) ATTRIBUTABLE TONON-CONTROLLING INTERESTSNET INCOME ATTRIBUTABLE TOOWNERS OF THE PARENT- 10 -FY 2023/3, First Quarter(Three months ended June 30,
2022)

72,097

90,476

51,184
22,24773,431(1,333)59,16823,42582,593
7,883

20
317
531
－
1,635
2,504

23
342
438
390
342
1,538

354
－
203
226
785
385

377
227
－
260
864
8,557

478
138
616

371
22
393

472
88
560
441
204
(520)
(315)
757

367
254
622
8,328
154
1,148
1,302
7,025

(169)

110

927

6,915

Quarterly Consolidated Comprehensive Income Statements
Consolidated Cumulative First Quarter(Millions of Yen)
FY 2022/3, First Quarter(Three months ended June 30,
2021)
NET INCOME
OTHER COMPREHENSIVE INCOME
Unrealized gain on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total other comprehensive income
COMPREHENSIVE INCOME
TOTAL COMPREHENSIVE INCOME
ATTRIBUTABLE TO:
Owners of the parent
Non-controlling interests- 11 -FY 2023/3, First Quarter(Three months ended June 30,
2022)

757

7,025

1,257
6
339
1,603
2,360

876
114
198
1,190
8,216

2,511
(150)

8,118
98

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
None(Notes on Significant Changes in the Value of Shareholders’ Equity)
None(Changes in Accounting Policies)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Company has adopted the “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, June 17, 2021, hereinafter, the “Implementation Guidance”)
from the beginning of the first quarter of the consolidated fiscal year ending March 31, 2023. In
accordance with the transitional treatment stipulated in Paragraph 27-2 of the Implementation
Guidance, the new accounting policies set forth by the Implementation Guidance will be applied
prospectively.
Accordingly, certain investment trusts that were previously stated at acquisition cost as securities
whose fair value was deemed extremely difficult to determine are now stated at fair value in the
consolidated balance sheets. This change has no material impact on the quarterly financial
statements.

- 12 -

(Segment Information)
Ⅰ FY 2022/3, First Quarter (Three-Month Period Ended June 30, 2021)
1. Information Related to Operating Revenue and Income (Loss) by Segment(Millions of Yen)
Reportable Segment
Real Estate Retail andTransportationand Hotels Restaurant

Construction

Business
Services

Total

Adjustment(Note 1)

Quarterly
Consolidated
Statements ofIncome(Note 2)

Operating Revenue
Outside Customers

21,907

24,977

9,414

7,818

7,980

72,097－72,097

Inside Group

1,140

943

39

9,450

8,040

19,615(19,615)－

Total

23,04725,9209,454

17,26916,021

91,713(19,615)

72,097

Segment income (loss)(5,316)

3,923

(825)

180

667

(1,370)36(1,333)(Notes) 1. The ¥36 million adjustment from segment income (loss) reflects the elimination of intersegment transactions.
2. Segment income (loss) has been adjusted for the operating loss figure on the quarterly consolidated income
statements.

Ⅱ FY 2023/3, First Quarter (Three-Month Period Ended June 30, 2022)
1. Information Related to Operating Revenue and Income (Loss) by Segment(Millions of Yen)
Reportable Segment
Real Estate Retail andTransportationand Hotels Restaurant

Construction

Business
Services

Total

Adjustment(Note 1)

Quarterly
Consolidated
Statements ofIncome(Note 2)

Operating Revenue
Outside Customers

30,221

31,59912,228

7,079

9,347

90,476－90,476

Inside Group

1,205

1,023

75

9,240

7,438

18,982(18,982)－

Total

31,42732,623

12,303

16,31916,785

109,459(18,982)

90,476

Segment income (loss)

2,387

5,186

(13)

(410)

992

8,142

(259)

7,883

(Notes) 1. The ¥259 million deduction from segment income (loss) reflects the elimination of intersegment transactions.
2. Segment income (loss) has been adjusted for the operating income figure on the quarterly consolidated income
statements.

2. Information regarding changes to reportable segments, etc.
The Company has changed its segment classifications from the first quarter under review, with the aimof strengthening the business portfolio on a Groupwide basis. As a result of this change, the former“Transportation,” “Construction,” “Real Estate and Hotels,” “Retail and Restaurant,” and “Other”
segments have been revised to the “Transportation,” “Real Estate and Hotels,” Retail and Restaurant,”“Construction,” and “Business Services” segments.
Segment information for the first quarter of the previous fiscal year is presented based on the revised
segment classifications.
(Significant Subsequent Events)
None- 13 -