(Translation)
Consolidated Financial Results
for the Six-Month Period Ended September 30, 2020
(Japanese GAAP)
November 4, 2020
Company name:
Stock exchange listings:
Securities code:
URL:
Representative:
Contact:

Kyushu Railway Company
Tokyo and Fukuoka
9142
https://www.jrkyushu.co.jp/
Toshihiko Aoyagi, President and CEO
Keiichi Takano, General Manager, Public Relations Department
Tel.: +81-92-474-2541

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

November 6, 2020
－
Yes
Yes

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

1. Consolidated Financial Results for the Six-Month Period Ended September 30, 2020
(From April 1, 2020 to September 30, 2020)(1) Consolidated operating results(Percentages show year-on-year changes.)

Operating revenue

Operating income

Millions of yen% Millions of yen%
Six months ended
September 30, 2020
124,552 (41.5)(20,571)－
September 30, 2019
212,861
1.3
30,217 (9.1)(Note) Comprehensive income:Net income per share— diluted

Yen(65.23)143.96Yen－－(2) Consolidated financial position
Total assets
Millions of yen
As of September
896,91530, 2020
As of March 31,
828,590
2020(Reference) Shareholders’ equity:

Millions of yen% Millions of yen%(19,520)(10,248)－－
31,026 (11.5)
23,025 (12.2)

Six months ended September 30, 2020: ¥(13,666) million (－%)
Six months ended September 30, 2019: ¥25,244 million [(9.9%)]

Net income per share— basic
Six months ended
September 30, 2020
September 30, 2019

Net income attributable toowners of the parent

Ordinary income

Net assets
Millions of yen

Equity ratio%

397,27943.8

418,298

49.9

As of September 30, 2020: ¥392,421 million
As of March 31, 2020: ¥413,293 million

2. Dividends

Year ended March 31, 2020
Year ending March 31, 2021
Year ending March 31, 2021
(Forecast)First
quarter-end
Yen－－

Annual dividends
SecondThird
quarter-end
quarter-end
Yen
Yen
46.50
－
0.00
－

Fiscalyear-end
Yen
46.50

Total
Yen
93.00

93.00

93.00

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

3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2021
(April 1, 2020 to March 31, 2021)(Percentages for the full year show year-on-year changes.)

Full year

Net income
Net income per
attributable to owners
shareof the parent
Millions of
%
%
Yen
yen
(28,400)(180.76)－－

Operating revenue

Operating income

Ordinary income

Millions of%yen
291,700 (23.6)

Millions ofyen(32,300)

Millions ofyen(31,400)%－(Note) Revisions to the most recently disclosed financial forecasts: No

Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2020 (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: No
ii Changes in accounting policies other than the above: No
iii Changes in accounting estimates: No
iv Restatement of revisions: No(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 September
30, 2020

157,301,600
shares

As of March 31,
2020

157,301,600
shares

As of September
30, 2020
As of September
30, 2020

184,600
shares157,116,250
shares

As of March 31,
2020
As of September
30, 2019

186,100
shares159,937,967
sharesNote: 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) (Second quarter of FY2021/3, 184,600 shares; FY2020/3, 186,100 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 (Second quarter of FY2021/3, 185,350 shares; Second quarter of FY2020/3, 62,033 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 achievethese forecasts. Actual performance can vary greatly depending on various factors such as fluctuations in interest rates,
fluctuations in share prices, changes in exchange rates, fluctuations in the value of assets, changes in the economic andfinancial environment, changes in the conditions of competition, occurrences of large-scale and other disasters, andchanges in regulations.

Supplementary quarterly materials are attached to this summary of consolidated financial results.
Kyushu Railway Company plans to hold a quarterly financial results presentation meeting for analysts on Thursday,
November 5, 2020. The Company plans to publish the presentation materials distributed at this meeting on its website
immediately after the meeting is concluded.

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 Second Quarter ....................................................................... 10
Quarterly Consolidated Comprehensive Income Statements
Consolidated Cumulative Second Quarter ..................................................................... 11(3) Consolidated Statements of Cash Flows ................................................................................ 12(4) Notes to Quarterly Consolidated Financial Statements .......................................................... 13(Notes on Going Concern Assumption) ................................................................................. 13(Notes on Significant Changes in the Value of Shareholders’ Equity) ................................... 13(Additional Information) ........................................................................................................ 13(Segment Information) ........................................................................................................... 14(Significant Subsequent Events) ............................................................................................ 14○(Financial results presentation materials)
Financial Results for the Second Quarter of FY21.3 (Cumulative total for the six-month period from April to September)- 1 -1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Qualitative Information on Consolidated Operating Results
In the six month period ended September 30, 2020, Japan’s economy faced downward pressure on
business conditions due to the influence of the COVID-19 infection in Japan and overseas. After thegovernment lifted the state of emergency in May 2020, economic activity gradually began to restart. In
this setting, consumer spending has shown signs of improvement. However, the outlook for the
resolution of the COVID-19 crisis is unclear, and in this environment the timing, extent, etc., of arecovery in economic activity remain highly uncertain. Challenging conditions are expected tocontinue for the time being.
Looking at the Group’s results, due to spread of the COVID-19 infection, the railway and otherbusinesses were affected by declining mobility demand, sluggish consumer spending, etc. In these
conditions, we worked in accordance with our recognition that our most important mission is safety inthe railway business, which is our mainstay business. We steadily invested in railway safety, and weadvanced preparations for the opening of the Miyazaki and Kumamoto station buildings, which arepart of our implementation of strategic city-building initiatives in the regions around our bases. On theother hand, the future course of trends in the management environment is unclear, and in preparation
for changes in the management environment, we took necessary countermeasures, such as
implementing aggressive, accelerated fund-raising; taking steps to reduce costs, including temporary
leave for employees; and reevaluating investment plans.
As a result, operating revenue were down 41.5% year on year, to ¥124,552 million; operating loss was¥20,571 million (compared with operating income of ¥30,217 million in the same period of theprevious fiscal year); negative EBITDA was ¥7,302 million (compared with EBITDA of ¥42,389
million in the same period of the previous fiscal year); ordinary loss was ¥19,520 million (comparedwith ordinary income of ¥31,026 million in the same period of the previous fiscal year); and net loss
attributable to owners of the parent was ¥10,248 million (compared with net income attributable toowners of the parent of ¥23,025 million in the same period of the previous fiscal year).
(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.
(Millions of Yen)
Operating revenue
FY2021/3,
consolidated
cumulative
second quarter(six
months
ended
September 30,
2020)

Operating income
FY2021/3,
consolidated
cumulative
second quarter(six
months
ended
September 30,
2020)

YoY

EBITDA (Note 2)
FY2021/3,
consolidated
cumulative
second quarter(six
months
ended
September 30,
2020)

YoY

Transportation

41,353 (49,164) (54.3％)(21,152)

Construction

36,142

4.4％

1,073

796 288.3％

1,564Real Estate andHotels27,303 (14,852) (35.2％)

1,481(8,635) (85.4％)

7,488(8,080) (51.9％)

Real estate
lease

22,979(4,476) (16.3％)

5,020(3,948) (44.0％)

9,837(3,712) (27.4％)

Real estate sale

1,907

(4,599) (70.7％)

(351)

(959)

―

(346)

(963)

―

Hotel

2,416

(5,776) (70.5％)(3,187)(3,727)―(2,003)(3,404)―Retail andRestaurant

29,448 (23,574) (44.5％)(1,947)(3,663)―(1,229)(3,737)―Other

28,282(8,314) (22.7％)438(702) (61.5％)

1,267

Total

162,530 (94,372) (36.7％)(20,107)(50,726)―

Adjustment(Note 1)(37,977)

6,064

―

(463)

(61)

―

Amount on the
consolidated

124,552 (88,308) (41.5％)(20,571)(50,788)―

1,533(38,521)―

YoY(15,777) (37,628)
719

―
85.2％

(878) (40.9％)(6,686) (49,605)

―

(87)

―

(7,302) (49,692)

―

(616)

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)

a. Transportation GroupIn the railway business, we worked to secure safety and implemented measures to prevent the spreadof COVID-19. On that basis, we worked to secure revenues and advanced measures to control
investment and reduce costs.
In terms of safety initiatives, we steadily implemented safety investment, such as updating rollingstock and replacing aging facilities. In addition, from April 2020, we installed train inspection support
systems and train track monitoring equipment on certain trains used to carry passengers. We
commenced initiatives to increase efficiency of inspection operations, enhance equipment quality, andincrease safety for employees.
In regard to services, with consideration for prevention of the COVID-19 infection, we worked tofacilitate comfortable usage by understanding the attitudes of customers and aggressively taking
action. In addition, on trains we expanded the introduction of the “JR-KYUSHU FREE Wi-Fi,” a free,- 3 -public wireless LAN service. Also, we posted notices regarding the Help Mark system on priority
seating. In these ways, we worked to provide diverse, customer-focused services.
In marketing, from May 2020, on the Kōrimoto―Kiire segment of the Ibusuki Makurazaki Line, we
introduced the Smart Support Station system. In addition, we rolled out a project under the title “Until
the day the state of emergency is lifted, let’s stay strong together.” Through this project, we worked
with a commitment to supporting the resolution of COVID-19 and took steps to promote the vitality of
Kyushu. Furthermore, we worked to expand usage of Internet train reservation services, such as
through sales of Minna no Kyushu Kippu, a product available only through the Internet. Moreover, we
implemented such measures as a campaign to promote registration and use of the JR KYUPO app. We
also worked to increase customer convenience and took steps to encourage customers to patronize
multiple Group businesses, including the railway business and other businesses.
In transportation, while implementing infection prevention measures at stations and on trains, we
worked to maintain the transportation network, which is social infrastructure. On the other hand, withconsideration for the decline in mobility demand, we reduced the number of trains operated. In
addition, the heavy rains in July 2020, which occurred in July 2020, caused damage to railway
facilities on the Kyudai Main Line and the Hisatsu Line, and we provided substitute forms oftransportation on certain sections. Also, due to the impacts of heavy rain that occurred in northern
Kyushu in July 2017, we implemented substitute forms of transportation between Soeda Station andYoake Station on the Hitahikosan Line. For this line, we have reached agreement with related local
governments about the restoration of service through the introduction of a bus rapid transit (BRT)system, and we are moving ahead with preparations for the restoration of service. With regard to thesegment between Higo-Ozu Station and Aso Station on the Houhi Main Line, which was impassable
due to the impacts of the 2016 Kumamoto earthquakes, we completed restoration work and resumed
service on the entire route in August 8, 2020.
In our passenger ship business, as a part of protection measures at ports and airports in order to preventthe spread of the COVID-19 infection, we received an order from the Japanese government to halt
passenger transportation, and regular service has been suspended on all routes since March 9, 2020.
On the other hand, as special domestic routes we offered service to Tsushima in August and to Hirado
and Yobuko in September.
In our bus business, through measures to prevent the spread of infection, we worked to create anenvironment in which customers can use bus services with peace of mind, and at the same time we
halted or reduced service in line with usage conditions.
In the field of new mobility services (MaaS), we advanced initiatives targeting the establishment of asustainable public transportation network, centered on collaboration with DAIICHI KOUTSUSANGYO Co., Ltd., and Nishi-Nippon Railroad Co., Ltd. At Moji Station and Mojikō Station on the
Kagoshima Main Line, we worked to improve connections between buses and trains. Our model forthese initiatives was our collaboration with Nishitetsu Bus at Shimosone Station on the Nippo Main
Line, which began in March 2020. In these types of ways, we worked to increase the convenience of
public transportation. Moreover, the MaaS verification testing in Miyazaki Prefecture was selected by
the Ministry of Land, Infrastructure, Transport and Tourism as a 2020 Japan-style MaaS
promotion/support enterprise. We are moving forward with preparations for the start of verification
testing from November 2020.
Despite the above efforts, due to the influence of COVID-19, revenues declined significantly in the- 4 -railway, passenger ship, and bus businesses, and the Transportation Group recorded operating revenueof ¥41,353 million, down 54.3% year on year; an operating loss of ¥21,152 million (compared with
operating income of ¥17,369 million in the same period of the previous fiscal year); and negative
EBITDA of ¥15,777 million (compared with EBITDA of ¥21,850 million in the same period of theprevious fiscal year).

b. Construction GroupIn the construction business, work orders have been received for the construction of elevated tracks
and Shinkansen-related, condominium-related, and other projects, with construction being steadily
executed. Cost reductions were also pursued.
As a result, the Construction Group posted operating revenue of ¥36,142 million, up 4.4% year on
year; operating income of ¥1,073 million, up 288.3% year on year; and EBITDA of ¥1,564 million, an
increase of 85.2% year on year.

c. Real Estate and Hotels GroupIn the real estate business, we worked to create an environment in which customers can use services
with peace of mind, and we advanced preparations for the opening of Amu Plaza Miyazaki in fall2020. In addition, from May 2020, we started accepting tenants at RJR Precia Tenjin South, a rental
apartment facility. However, revenues were lower as a result of the influence of measures implemented
due to the spread of the COVID-19 infection, such as station building closures and operating hour
reductions, as well as rent reductions to support tenants that operate stores.
In the real estate sale business, while temporarily closing model rooms and instituting infection
prevention measures, we recorded sales from “MJR the Garden Kagoshima-Chuo,” “Marks City
Futsukaichi,” and other condominium buildings, and we sought to promote sales of “MJR Sakaisuji
Hommachi Tower,” “MJR Chihaya Branchera,” etc.
In the hotel business, due to the influence of COVID-19, we closed 8 of the 16 facilities in Japan.
After reopening, we utilized the tourism support measures of the national government and local
governments, created a plan for teleworking, etc. In these ways, we worked to capture limited demand.
However, due to self-restraint in mobility, the cancellation of events, lower inbound demand, etc.,
revenues recorded a significant decline.
As a result, the Real Estate and Hotels Group posted operating revenue of ¥27,303 million, down
35.2% year on year; operating income of ¥1,481 million, down 85.4% year on year; and EBITDA of¥7,488 million, down 51.9% year on year.

d. Retail and Restaurant GroupIn our retail business, we moved forward with the opening of new convenience stores. In addition,
we focused on taking steps to limit the decline in demand, such as renovating the Oita Souvenir
Shop and establishing a premium corner. In May 2020, we transferred to TSURUHA Holdings,
Inc. a portion of our holdings of the shares of JR Kyushu Drug Eleven Inc. Accompanying thistransfer, from the end of the first quarter of the fiscal year ending March 31, 2021, JR Kyushu
Drug Eleven Inc. has been excluded from the scope of consolidation and included in the scope of
application of the equity-method.
- 5 -In the restaurant business, we advanced new openings, such as the opening in July of Meinohama
Marché at the Fukuoka City Subway’s Meinohama Station and the opening in September of arestaurant that is a collaborative venture between a pizza restaurant and a chicken specialty restaurant,
as well as a premium bread shop. On the other hand, we took steps to further increase management
efficiency, such as closing unprofitable restaurants.
Nonetheless, due to the influence of COVID-19, revenues at station stores and existing restaurants
declined substantially. As a result of this significant decline in revenues, the Retail and RestaurantGroup recorded operating revenue of ¥29,448 million, down 44.5% year on year; an operating loss of¥1,947 million (compared with operating income of ¥1,715 million in the same period of the previous
fiscal year); and negative EBITDA of ¥1,229 million (compared with EBITDA of ¥2,507 million in
the same period of the previous fiscal year).

e. Other Groups
For the construction machinery sales and rental business, we worked to secure earnings throughaggressive sales activities.
As a result, Other Groups posted operating revenue of ¥28,282 million, down 22.7% year on year;
operating income of ¥438 million, down 61.5% year on year; and EBITDA of ¥1,267 million, down
40.9% year on year.
(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
1. Assets, Liabilities, and Equity
Total assets as of September 30, 2020, increased 8.2% compared with the previous fiscal year-end, to¥896,915 million. Current assets increased 38.4%, to ¥223,308 million, due to an increase in securities
and other factors. Non-current assets increased 0.9%, to ¥673,607 million, due principally to theacquisition of property, plant and equipment, etc.
Meanwhile, total liabilities increased 21.8% compared with the previous fiscal year-end, to ¥499,636
million. Current liabilities fell 26.0%, to ¥148,115 million, due to payment of payables. Non-current
liabilities were up 67.4%, to ¥351,520 million, as a result of the issuance of bonds and an increase inlong-term debt and other factors.
Furthermore, total equity decreased 5.0% compared with the previous fiscal year-end, to ¥397,279
million, due primarily to a decrease in retained earnings resulting from the recording of a net loss
attributable to owners of the parent and the payment of dividends, etc.
2. Cash Flows(Cash flows from operating activities)
Net cash used in operating activities totaled ¥15,193 million, due to such factors as the recording of aloss before income taxes of ¥16,593 million. (In the same period of the previous fiscal year, cash
provided by operating activities was ¥39,129 million.)(Cash flows from investing activities)
Net cash used in investing activities was ¥19,427 million, down ¥3,004 million year on year, due tosuch factors as a decrease in payments for purchases of fixed assets.
(Cash flows from financing activities)
Net cash provided by financing activities came to ¥125,250 million, up ¥134,263 million year on year,
due to such factors as long-term loans and the issuance of bonds.
As a result of the above, cash and cash equivalents at end of the period increased ¥90,599 million year
on year, to ¥114,417 million.

(3) Qualitative Information on Consolidated Performance Outlook
In regard to the full-year performance forecasts for FY2021.3, there are no changes to theannouncement made on September 24, 2020.
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 2020/3(As of March 31, 2020)
ASSETS
Current assets
Cash and time deposits
Notes and accounts receivable–trade
Fares 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 noncurrent assets
Total assets- 8 -FY 2021/3, Second Quarter(As of September 30, 2020)

23,81738,707
4,126－
19,70228,364
7,574
39,082(82)
161,293

42,96332,663
1,081
71,485
10,92435,595
9,764
18,915(83)
223,308

268,654
32,578
147,736
19,95340,1338,935
517,992
6,280

269,787
34,332
148,883
18,35043,5428,130
523,028
3,708

38,83551,768720
52,537(838)
143,024
667,297
828,590

40,61657,494763
48,801(805)
146,870
673,607896,915

(Millions of Yen)
FY 2020/3(As of March 31, 2020)
LIABILITIES AND EQUITYCurrent liabilities
Notes and accounts payable–trade
Short-term loans
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
Liability for retirement benefits
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
EQUITY
Shareholders’ equity
Common stock
Capital surplus
Retained earnings (Deficit)
Treasury stock
Total common stock
Accumulated other comprehensive income
Unrealized gain on available-for-sale securities
Gain (loss) on deferred hedges
Foreign currency translation adjustments
Defined retirement benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total equity
TOTAL LIABILITIES AND EQUITY- 9 -FY 2021/3, Second Quarter(As of September 30, 2020)

32,460
10,57230,421
63,841
3,666

19,925
10,25922,42130,181
688

1,175

1,238

4,720
8,922
44,467200,248

5,187
5,893
52,320148,115

40,00060,556
1,609
1,732
53,801
1,690
50,653210,043
410,291

80,000159,084
1,609
5,861
51,593
1,330
52,040351,520499,636

16,000224,024
176,329(599)
415,754

16,000224,021
158,706(594)
398,133

4,422
15
158
(7,057)(2,461)
5,004
418,298
828,590717－
115(6,545)(5,712)
4,858
397,279
896,915

(2) Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Income Statements
Consolidated Cumulative Second Quarter(Millions of Yen)
FY 2020/3, Second Quarter(Six months ended September
30, 2019)
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
Subsidies for employment adjustment
Other
Total non-operating income
NON-OPERATING EXPENSEInterest expense
Other
Total non-operating expense
ORDINARY INCOME (LOSS)EXTRAORDINARY GAINS
Construction grants received
Gain on sales of shares of subsidiaries and associates
Gain on sales of trusts
Other
Total extraordinary gains
EXTRAORDINARY LOSSES
Losses from provision for cost reduction of fixed
assetsProvision for loss on disaster
Disaster-damage losses
Other
Total extraordinary losses
INCOME (LOSS) BEFORE INCOME TAXESINCOME TAXES
Current
Deferred
Total income taxes
NET INCOME (LOSS)NET INCOME (LOSS) ATTRIBUTABLE TONON-CONTROLLING INTERESTSNET INCOME (LOSS) ATTRIBUTABLE TOOWNERS OF THE PARENT- 10 -FY 2021/3, Second Quarter(Six months ended September
30, 2020)

212,861

124,552

129,006
53,637
182,644
30,217

99,24845,875
145,124(20,571)

34
262
714
－
489
1,500

40
373
783
579
351
2,128

609
81
691
31,026

821
256
1,077
(19,520)

1,904
－
574
138
2,616

987
9,144
－
343
10,475

1,877

947

1,299
176
137
3,491
30,152

5,306
156
1,139
7,549
(16,593)

5,123
1,993
7,116
23,035300(6,489)(6,188)(10,405)

9(156)

23,025(10,248)

Quarterly Consolidated Comprehensive Income Statements
Consolidated Cumulative Second Quarter(Millions of Yen)
FY 2020/3, Second Quarter(Six months ended September
30, 2019)
NET INCOME (LOSS)OTHER COMPREHENSIVE INCOME
Unrealized gain on available-for-sale securities
Gain (loss) on deferred hedges
Foreign currency translation adjustments
Defined retirement benefit plans
Total other comprehensive income
COMPREHENSIVE INCOME
TOTAL COMPREHENSIVE INCOME
ATTRIBUTABLE TO:
Owners of the parent
Non-controlling interests- 11 -FY 2021/3, Second Quarter(Six months ended September
30, 2020)

23,035(10,405)

1,885
(99)
26
397
2,208
25,244(3,708)
(15)
(46)
508
(3,261)(13,666)

25,22914(13,492)(174)

(3) Consolidated Statements of Cash FlowsFY 2020/3, Second Quarter(Six months ended September
30, 2019)(Millions of Yen)
FY 2021/3, Second Quarter(Six months ended September 30,
2020)

30,152
12,505
(574)
1,877
176
1,299
(3)
(1,676)(296)
609(1,904)－
8,238(11,946)
(158)
(714)
－
8,768
46,352
296
(540)
773
(1,939)(5,812)(16,593)
14,158
－
947
156
5,306
(15)
(1,306)
(413)
821
(987)
(9,144)
7,552(8,622)(5,952)
(783)
(579)
4,341
(11,115)
408
(688)
776
(2,060)(3,092)－579

39,129(15,193)(59,799)(1,600)12,25919,058(57,395)(1,314)－
19,487－

12,311

7,649(22,431)7,484(19,427)

963
－
(599)
(172)
－
552
(474)
(599)
(8,240)(72)(371)(9,013)2

67
100,000(9,155)(129)
40,000
2,096
(577)
－
(7,314)(7)
270
125,250
(29)

7,686

90,59936,86523,81744,552

114,417

OPERATING ACTIVITIESIncome (loss) before income taxes
Depreciation
Gain on sales of trusts
Losses from provision for cost reduction of fixed assets
Disaster-damage losses
Provision for loss on disasterNet change in allowance for doubtful accounts
Net change in net defined benefit liabilities
Interest and dividend income
Interest expense
Construction grants received
Gain on sales of shares of subsidiaries and associates
Net change in major receivables
Net change in inventories
Net change in major payables
Gain on assets held in trust
Subsidies for employment adjustment
Other
Sub-total
Proceeds from interest and dividends
Payments of interest
Proceeds from gain on assets held in trust
Payments of disaster-damage losses
Income taxes paid
Amount received as subsidies for employment
adjustment
Net cash provided by operating activities
INVESTING ACTIVITIESPayments for purchases of fixed assets
Purchases of investment securities
Proceeds from sales of money held in trust
Proceeds from construction grants received
Proceeds from sales of shares of subsidiaries resulting
in change in scope of consolidation
Other
Net cash used in investing activities
FINANCING ACTIVITIESNet change in short-term loans
Proceeds from long-term loans payable
Payments of long-term loans
Repayments of long-term liabilities
Proceeds from issuance of bonds
Proceeds from deposits and guarantees
Redemption of deposits and guarantees
Purchase of treasury shares
Cash dividends paid
Cash dividends paid to non-controlling interests
Other
Net cash used in financing activities
Translation differences for cash and cash equivalents
NET CHANGE IN CASH AND CASH
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING
OF THE PERIODCASH AND CASH EQUIVALENTS AT END OF
THE PERIOD- 12 -

(4) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
None(Notes on Significant Changes in the Value of Shareholders’ Equity)
None(Additional Information)(Restoration of the Hitahikosan Line)Due to the influence of the heavy rains in northern Kyushu in July 2017, we are implementing substitute formsof transportation on the Soeda-Yoake segment of the Hitahikosan Line. At the sixth meeting regarding therestoration of the Hitahikosan Line, which was held on July 16, it was decided that service on the line would berestored and an agreement was reached on the method of restoration.
Accordingly, in the consolidated cumulative second quarter, expenses related to removal and repair of railway
facilities and were rationally estimated, and provision for loss on disaster of ¥2,187 million was recorded under
extraordinary losses in the quarterly consolidated income statements.
(Accounting estimates related to the influence of the spread of the COVID-19 infection)
With consideration for the most recent circumstances, the Company has made changes to assumptions, including
the timing of the resolution of the COVID-19 situation, that were included in the Annual Securities Report (Yuho)
for the previous fiscal year under “Additional information, Accounting estimates related to the influence of the
spread of the COVID-19 infection.” The Company’s approach after the changes is as follows.
In regard to the influence of COVID-19 in FY2021.3, with consideration for revenue trends following the liftingof the state of emergency, and based on information available at this point, the Company assumes that there will
be a certain degree of recovery by the end of the fiscal year, but that the influence of COVID-19 will continue
for a certain period of time in the next fiscal year. The Company has made accounting estimates for fixed-asset
impairment accounting, recoverability of deferred tax assets, etc.
The effect of these changes on the quarterly consolidated financial statements is insignificant.
(Occurrence of damage due to heavy rains in July 2020)
Due to the influence of the heavy rains in July 2020, which occurred throughout Kyushu in July 2020, damage
occurred on multiple routes, including the Kyudai Main Line and the Hisatsu Line. This damage included bridges
being washed away and damage to tracks. Among the recovery expenses, etc., resulting from this damage, inregard to recovery expenses, etc., that can be reasonably estimated at this point, extraordinary losses wererecorded in the quarterly consolidated income statements for the consolidated cumulative second quarter.
Recovery expenses, etc., for the consolidated cumulative second quarter were recorded as “disaster-damage
losses” and a reasonable estimate of the amount of recovery expenses, etc., anticipated in the consolidated
cumulative third quarter and thereafter was recorded as “provision for loss on disaster.”
Recovery expenses, etc., are expected to occur, but recovery expenses, etc., that are difficult to reasonably
estimate are not included in “provision for loss on disaster.”- 13 -

(Segment Information)
FY 2020/3, Second Quarter (Six-Month Period Ended September 30, 2019)
Information Related to Operating Revenue and Income by Segment(Millions of Yen)
Others(Note 1)

Reportable Segment

Transportation Construction

Real Estateand Hotels

Total

Quarterly
Consolidated
Adjustment
Statements of(Note 2)
Income(Note 3)Retail andRestaurant

Operating Revenue
Outside Customers

86,913

14,07639,984Inside Group

3,604

20,532

2,171

Total

90,51734,609Segment income

17,369276

52,868 19,017 212,861－

212,861

44,041(44,041)－

42,15553,023 36,596 256,903(44,041)

212,861

10,116

1,715

(402)

30,217154 17,579

1,141

30,619(Notes) 1. “Others” represents categories of business that are not included in reportable segments and includes theconstruction machinery sales and rental business, etc.
2. The ¥402 million deduction from segment income reflects the elimination of intersegment transactions.
3. Segment income has been adjusted for the operating income figure on the quarterly consolidated income
statements.

FY 2021/3, Second Quarter (Six-Month Period Ended September 30, 2020)
1. Information Related to Operating Revenue and Income (Loss) by Segment(Millions of Yen)
Others(Note 1)

Reportable Segment

Transportation Construction

Real Estateand Hotels

Total

Quarterly
Consolidated
Adjustment
Statements of(Note 2)
Income(Note 3)Retail andRestaurant

Operating Revenue
Outside Customers

38,123

15,72725,650Inside Group

3,230

20,415

1,652

Total

41,35336,142

Segment income(21,152)

1,073

29,386 15,664 124,552－

124,552

37,977(37,977)－

27,30329,448 28,282 162,530(37,977)

124,552

1,481(1,947)438 (20,107)(463)(20,571)

61 12,617(Notes) 1. “Others” represents categories of business that are not included in reportable segments and includes theconstruction machinery sales and rental business, etc.
2. The ¥463 million deduction from segment income (loss) reflects the elimination of intersegment transactions.
3. Segment income (loss) has been adjusted for the operating income figure on the quarterly consolidated income
statements.

2 Information related to assets for each reportable segment(Significant decrease in assets due to decline in the number of subsidiaries)
Due to the exclusion from the scope of consolidation of JR Kyushu Drug Eleven, in comparison withthe previous fiscal year, assets in the Retail and Restaurant segment were down ¥18,657 million.
(Significant Subsequent Events)
None- 14 -