Note：This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results for the Three Months Ended June 30, 2022
(Under Japanese GAAP)
August 10, 2022
Company Name: Nishi-Nippon Railroad Co., Ltd.
Tokyo and Fukuoka
Stock exchange listings:
Securities Code:9031
URL https://www.nishitetsu.co.jp/en/
Representative:
Koichi Hayashida, President and CEO
Contact:(TEL) +81-92-734-1217
Tsuyoshi Kumai, Manager, Public Relations Department
Scheduled filing date of quarterly securities report: August 10, 2022
Scheduled commencement date of dividend payments: Preparation of supplementary materials for quarterly financial results : None
Scheduled quarterly financial results briefing: None(Amounts rounded down to the nearest million yen.)
1. Consolidated financial results for the three months ended June 30, 2022
(from April 1, 2022 to June 30, 2022)(1) Consolidated Operating Results (cumulative)(Percentages represent year-on-year changes.)
attributable toOperating revenue Operating income
Ordinary income Profit
owners of parent
Millions of yen%

Millions of yen%

Millions of yen

Three months ended
June 30, 2022
119,950
34.8
5,471
6,087
June 30, 2021
88,978
26.4
(941)
(557)
(Note(s)) Comprehensive income For the three months ended June 30, 2022 6,748
For the three months ended June 30, 2021 (27)
Net income pershare-basic%

Millions of yen

%

3,919
(171)
million yen ( million yen ( -%)%)Net income pershare-diluted

Yen

Yen

Three months ended
June 30, 2022
49.75
49.60
June 30, 2021
(2.18)(Note) Net income per share-diluted for the three-month period under review is not stated because a net loss
per share was recorded although dilutive shares existed.
(2) Consolidated financial position

Total assets

Net assets

Millions of yen

Millions of yen

As ofJune 30, 2022
738,716
March 31, 2022
734,500(Reference) Shareholders’ equity As of June 30, 2022
As of March 31, 20222.

Equity ratio

183,894
179,084

%

24.0
23.5
177,477 million yen
172,593 million yen

Dividends
Annual dividends
End of Q1
Yen

End of Q2
Yen

End of Q3
Yen

Fiscal year ended
12.50
March 31, 2022
Fiscal year ending
March 31, 2023
Fiscal year ending
15.00
March 31, 2023 (Forecast)(Note(s))
Revision of the dividend forecast most recently announced

Year-end

Total

Yen

Yen

17.50

30.00

15.00

30.00

: None3.

Consolidated financial forecast for the fiscal year ending March 31, 2023
(from April 1, 2022 to March 31, 2023)(Percentages represent changes from the previous year for full-year results, and year-on-year changes forquarterly results.)
Profitattributable
income per
Operating revenue Operating income Ordinary income owners of parentto Net
share-basic
Millions of yen% Millions of yen% Millions of yen%

Millions of yen

Six months ending
September 30, 2022 245,100
30.6
8,700
8,000
3,700
(cumulative)
Full year
469,200
9.8
17,00062.7
15,80013.2
8,100(Note) Revision of the consolidated financial forecast most recently released : Yes* Notes(1) Changes in important subsidiaries during the period under review

%

Yen

-

46.97

(18.0)

102.83: None(Changes in specified subsidiaries resulting in changes in scope of consolidation)(2) Adoption of special accounting treatment used in preparation of
the quarterly consolidated financial statements(3) Change in accounting policies or estimates and restatements
1) Change in accounting policies due to revisions of accounting
standards and other regulations
2) Change in accounting policies other than item 1) above: None: None: None3) Change in accounting estimates: None4) Restatements: None(4) Number of shares issued (common stock)
As of June 30,
As of March 31,
1) Number of shares issued at the end of the79,360,186 shares
79,360,186 shares
2022
2022
period (including treasury stock)
As of March 31,
2) Number of treasury stocks at the end of the As of June 30,
585,829 shares
588,852 shares
2022
2022
periodAs of June 30,
As of June 30,3) Average number of shares outstanding
78,773,863 shares
78,786,338 shares
2022
2021
during the period (year to date)(Note(s)) The number of treasury stocks includes the Company shares remaining in the board benefit trust (Q1of fiscal year ending March 2023: 243,725 shares; fiscal year ended March 2022: 244,266 shares).
**

Quarterly financial results are not subject to quarterly reviews by a certified public accountant or an audit firm.
Explanation of appropriate use of financial forecasts and other special notes
Any statements on the future such as financial outlooks included in this material are based on information the
Company presently has and certain assumptions the Company considers reasonable, and the Company does
not intend to be committed to their realization. In addition, actual financial results may differ significantly
due to various factors. For assumptions for financial forecasts and points to consider in utilizing them, pleasesee “(3) Explanation of future forecast information such as consolidated financial forecasts” in “1. Qualitative
Information on Quarterly Financial Results under Review” on page 6 of the attachments.

○ Table of Contents of Attachments

1.

2.

Qualitative Information on Quarterly Financial Results under Review ............................................................................................. 2(1)

Explanation of operating results................................................................................................................................................... 2(2)

Explanation of financial position ................................................................................................................................................... 6(3)

Explanation of future forecast information such as consolidated financial forecasts ....................................................................6

Quarterly Consolidated Financial Statements and Key Notes ............................................................................................................. 7(1)

Quarterly consolidated balance sheet .............................................................................................................................................7(2)

Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income ........................... 9(3)

Notes to quarterly consolidated financial statements ...................................................................................................................11(Notes to assumptions on going concern) .......................................................................................................................................... 11(Notes if there is a significant change in the amount of shareholders’ equity) .................................................................................. 11(Segment information) ....................................................................................................................................................................... 121

1. Qualitative Information on Quarterly Financial Results under Review(1) Explanation of operating results(Unit: Millions of yen)Three months ended Three months ended
June 30, 2021
June 30, 2022

ChangePercentage change

Operating revenue

88,978

119,950

30,972

34.8%

Operating income (loss)

(941)

5,471

6,413

-

Ordinary income (loss)

(557)

6,087

6,645

-

Profit (loss) attributable toowners of parent

(171)

3,919

4,091

-

Operating revenue for the three-month period under review was 119,950 million yen, up 34.8% year-on-year. This was due to arecovery in demand from the same period of the previous fiscal year mainly due to an increase in sales prices in the Global Logistics
business under the Logistics business caused by the continued high freight costs, and the easing of restrictions on activities in theTransportation business and Leisure and Services business caused by COVID-19 pandemic.
Accordingly, operating income was 5,471 million yen (operating loss of 941 million yen for the same period of the previous fiscal
year), ordinary income was 6,087 million yen (ordinary loss of 557 million yen for the same period of the previous fiscal year), andprofit attributable to owners of parent was 3,919 million yen (loss attributable to owners of parent of 171 million yen for the same
period of the previous fiscal year).
The Company’s business performance by segment is as follows.
In the beginning of the third quarter of the previous fiscal year, reorganization of consolidated subsidiaries accompanying
absorption-type company splits took place; accordingly, changes were made to the segmentation of businesses of the relevant
consolidated subsidiaries.
The segment information for the three-month period in the previous fiscal year was prepared in accordance with the segments after
the change.
(Unit: Millions of yen)
Operating income or loss

Operating revenue

Three months Three months
Three months Three months
Percentage
Percentage
ended June 30, ended June 30, Change
ended June 30, ended June 30, Changechangechange
2021
2022
2021
2022
Transportation

14,81017,380

2,569

17.4%

(1,862)

(78)

1,784

-

Real Estate

13,225

14,123

898

6.8%

993

1,167

174

17.6%

Distribution Industry

16,843

16,672(170)(1.0%)

60

(95)

(155)

-

Logistics

37,461

62,52825,067

66.9%

2,112

5,358

3,245

153.6%

Leisure and Services

4,231

6,634

2,403

56.8%

(2,374)

(885)

1,489

-

Subtotal

86,571

117,339

30,76835.5%(1,071)

5,467

6,538

-

Others

6,502

6,563

61

0.9%

196

112

(84)

(43.0%)

Adjustments(4,095)(3,952)

142

-

(67)

(107)

(40)

-

Consolidated

88,978

119,950

30,972

34.8%

(941)

5,471

6,413

-

2

1) Transportation
In the Railway and Bus businesses, revenue increased due to a recovery in demand from the same period of the previous fiscal
year mainly due to the easing of restrictions on activities caused by COVID-19 pandemic. As a result, operating revenue for theTransportation business was 17,380 million yen (17.4% increase year-on-year), and operating loss was 78 million yen (operating
loss of 1,862 million yen for the same period of the previous fiscal year).
The number of passengers in the Railway and Bus (public buses) businesses increased 10.9% and 5.2% year-on-year,
respectively.
2) Real Estate
In the Housing business, revenue increased mainly due to the sale of condominiums, including Garden Cross Tokyo Oji. As aresult, operating revenue for the Real Estate business was 14,123 million yen (6.8% increase year-on-year), and operating
income was 1,167 million yen (17.6% increase year-on-year).
The number of lots sold was 102 (down 10 lots year-on-year).
3) Distribution Industry
In the Supermarkets/liquor stores business, revenue decreased mainly due to a reactionary slump in stay-at-home demand
partly due to the easing of restrictions on activities caused by COVID-19 pandemic. As a result, operating revenue of theDistribution Industry business was 16,672 million yen (1.0% decrease year-on-year). Operating loss amounted to 95 million yen(operating income of 60 million yen for the same period of the previous fiscal year) due in part to a decline in gross profit
margins caused by soaring purchase prices in the Supermarkets/liquor stores business.
4) Logistics
In the Global Logistics business, revenue increased mainly due to an increase in sales prices owing to high freight costs and anincrease in the import and export transaction volume owing to firm transportation demand. As a result, operating revenue for the
Logistics business was 62,528 million yen (66.9% increase year-on-year), and operating income was 5,358 million yen (153.6%
increase year-on-year).
International cargo volume increased 0.5% year-on-year in Air exports, 4.9% year-on-year in Air imports, 30.5% year-on-yearin Ocean exports, and 11.3% year-on-year in Ocean imports.
5) Leisure and Services
In the Hotel business, revenue increased due to higher occupancy from the same period of the previous fiscal year mainly due
to the easing of voluntary travel restrictions in Japan caused by COVID-19 pandemic. As a result, operating revenue for the
Leisure and Services business was 6,634 million yen (56.8% increase year-on-year), and operating loss was 885 million yen(operating loss of 2,374 million yen for the same period of the previous fiscal year).
6) Others
Other operating revenue amounted to 6,563 million yen (0.9% increase year-on-year) mainly due to an increase in revenue
from large construction orders in the Construction related business, while a decrease in revenue mainly caused by a decline inorders received in the Vehicle maintenance related business. Operating income was 112 million yen (43.0% decrease year-onyear) due partly to a decrease in gross profit in the Vehicle maintenance related business.

3

(Statements of Income by Segment)(Unit: Millions of yen)
Operating revenue
Three months
ended
June 30,2021

Three months
ended
June 30,2022

Transportation

14,81017,380Railway

4,102

Bus(Bus, net) *1

Operating income (loss)
Percentagechange (%)

Three months
ended
June 30,2021

Three months
ended
June 30,2022

2,569

17.4

(1,862)

(78)

1,784

-

4,745

642

15.7

20

546

526

-

10,297

11,909

1,611

15.7

(1,619)

(559)

1,059

-

[9,407][11,032][1,624][17.3]

-

-

-

-

2,270

2,605

334

14.7

(295)

(114)

180

-

(1,860)(1,879)

(18)

-

30

48

17

-

Real Estate

13,225

14,123

898

6.8

993

1,167

174

17.6

Leasing

5,903

5,975

71

1.2

1,143

1,229

86

7.6

Housing

5,316

6,288

971

18.3

(377)

(207)

170

-

Other

2,980

2,876

(104)

(3.5)

226

165

(60)

(26.7)

Adjustments(975)(1,016)

(40)

-

1

(20)

(21)

-

16,843

16,672

(170)

(1.0)

60

(95)

(155)

-

Supermarket/liquor store

15,755

15,477

(277)

(1.8)

62

(90)

(153)

-

Sales of miscellaneous everyday
items

1,092

1,195

103

9.4

10

6

(3)

(33.8)

(5)

(0)

4

-

(12)

(11)

1

-

37,461

62,52825,067

66.9

2,112

5,358

3,245

153.6

Global Logistics

39,045

71,63832,593

83.5

2,053

5,357

3,303

160.9

Domestic logistics

2,619

2,639

20

0.8

123

66

(57)

(46.5)(4,203)(11,749)(7,546)

-

(65)

(65)

(0)

-

4,231

6,634

2,403

56.8

(2,374)

(885)

1,489

-

3,266

5,495

2,228

68.2

(2,031)

(989)

1,042

-

[1,471][3,069][1,598][108.6]

-

-

-

-

Travel

258

606

347

134.3

(280)

(35)

245

-

Facility outline

874

976

101

11.6

49

173

124

248.7

1,849

2,291

442

23.9

(118)

(46)

71

-

(2,018)(2,735)

(717)

-

5

11

6

-

86,571

117,339

30,76835.5(1,071)

5,467

6,538

-

6,502

6,563

61

0.9

196

112

(84)

(43.0)

Adjustments(4,095)(3,952)

142

-

(67)

(107)

(40)

-

Consolidated

88,978

119,950

30,972

34.8

(941)

5,471

6,413

-

Other
Adjustments

Distribution Industry

Adjustments
Logistics

Adjustments
Leisure and Services
Hotel(Hotel, net) *2

Other
Adjustments
Subtotal
OthersChange*1 Operating revenues for the Bus business, excluding intercompany transactions, increased 17.3%.
*2 Operating revenues for the Hotel business, excluding intercompany transactions, increased 108.6%.

4

Percentagechange (%)

Change(Transaction volume)1) Number of railway passengers / passenger revenue (Transportation)
Unit

Three months ended
June 30,2021

Three months ended
June 30,2022

ChangePercentage change (%)

Number of passengers

Thousandpassengers

21,822

24,194

2,372

10.9

Non-commuter

Thousandpassengers

7,986

9,749

1,763

22.1

CommuterThousandpassengers

13,836

14,445609

4.4

Passenger revenue

Millions of
yen

3,909

4,521

612

15.7

Non-commuter

Millions of
yen

2,052

2,615

562

27.4

CommuterMillions of
yen

1,856

1,906

49

2.7

2) Number of public bus passenger / passenger revenue (Transportation)
Unit

Three months ended
June 30,2021

Three months ended
June 30,2022

ChangePercentage change (%)

Number of passengers

Thousandpassengers

50,114

52,6972,583

5.2

Non-commuter

Thousandpassengers

25,67029,287

3,617

14.1

CommuterThousandpassengers

24,444

23,409(1,035)(4.2)

Passenger revenue

Millions of
yen

8,347

9,751

1,404

16.8

Non-commuter

Millions of
yen

5,688

6,993

1,305

22.9

CommuterMillions of
yen

2,659

2,758

98

3.7

3) Number of units sold (Real Estate)
Unit

Three months ended
June 30,2021

Three months ended
June 30,2022

ChangePercentage change (%)

Number of units sold

Unit

112

102

(10)

(8.9)

Condominium

Dwelling unit

90

76

(14)

(15.6)

Detached house

Lot

19

24

5

26.3

Dwelling unit

3

2

(1)

(33.3)

Renovation

4) Transaction volume of international cargo (Logistics)
Unit

Three months ended
June 30,2021

Three months ended
June 30,2022

ChangePercentage change (%)

Air Export

Thousand tons

36

36

0

0.5

Air ImportThousand
cases

95

100

4

4.9

Ocean Export

Thousand
TEU

19

25

6

30.5

Ocean ImportThousand
TEU

32

35

3

11.3

5) Average daily rate (ADR) of hotels targeting mainly domestic customers, occupancy rate (OCC) and revenue per available
room (Rev PAR) (Leisure and Services)
Unit

Three months ended
June 30,2021

Three months ended
June 30,2022

ChangePercentage change (%)

ADR

Yen

6,551

[6,691]

7,377[7,377]

826

[686]

12.6

OCC

%

25.3

[25.7]

62.6[62.6]

37.3P[36.9P]-

Rev PAR

Yen

1,657

[1,717]

4,621[4,621]

2,964[2,904]178.9[10.3][169.1](Note(s)) Figures in parentheses are for existing hotels. Hotels operating in both previous and current fiscal years are in thescope.

5

(2) Explanation of financial position(Unit: Millions of yen)
As of March 31, 2021

As of June 30, 2022

ChangeTotal Assets

734,500

738,716

4,215

Total Liabilities

555,416554,822(594)

Total Net Assets

179,084

183,8944,810Interest-bearing debt

347,793

343,834(3,959)(Note) Interest-bearing debt is the sum of borrowings and Bonds payable.
Assets increased 4,215 million yen from the end of the previous fiscal year to 738,716 million yen mainly due to an increase
in investment securities and land and buildings for sale, while notes and accounts receivable - trade, and contract assets
decreased.
Liabilities decreased 594 million yen from the end of the previous fiscal year to 554,822 million yen mainly due to a decreasein notes and accounts payable - trade and interest-bearing debt.
Net assets increased 4,810 million yen from the end of the previous fiscal year to 183,894 million yen mainly due to anincrease in retained earnings mainly owing to the posting of profit attributable to owners of parent and an increase in foreign
currency translation adjustment.

(3) Explanation of future forecast information such as consolidated financial forecasts
The consolidated financial forecast for the six-month period ending September 30, 2022 and the full-year consolidated
financial forecast have been changed from those announced on May 12, 2022, based on the business results of the three-month
period under review and the future outlook for each business segment.
For details, please refer to “Notice Concerning Revision of Financial Forecast” announced on August 10, 2022.

6

2. Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly consolidated balance sheet(Unit: Millions of yen)
As of March 31, 2022

As of June 30, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsLand and buildings for sale
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets

70,82870,01659,07756,561

58,980
3,839
258
2,019
16,634(215)

60,312
4,160
490
2,031
19,186(233)

211,422

212,526

Fixed assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net

187,495
14,602
129,278
99,1307,383

186,351
13,938131,324
99,582
7,492

Total property, plant and equipment

437,890438,688

429
3,597

416
3,550

Total intangible assets

4,026

3,967

Investments and other assets
Investment securities
Retirement benefit assets
Deferred tax assets
Other

47,523
4,040
11,706
18,232

49,216
4,063
11,917
18,675Intangible assets
Goodwill
Other

Allowance for doubtful accounts

(342)

(339)

Total investments and other assets

81,16083,533523,077

526,189734,500

738,716

Total fixed assets
Total Assets

7

(Unit: Millions of yen)
As of March 31, 2022

As of June 30, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings

39,11948,89833,53649,724Current portion of Bonds payable
Accrued consumption taxes
Income taxes payable
Advances received
Provision for bonuses
Other provisions
Other

1,496
1,478
76,423
4,583
169
26,226

7,000
2,499
2,626
76,523
7,991
75
29,155

Total current liabilities

198,394

209,133

Bonds payable
Long-term borrowings
Deferred tax liabilities
Other provisions
Retirement benefit liability
Long-term guarantee deposits
Other

152,000
146,895
1,572
454
22,91327,7405,445

145,000
142,110
1,098
473
22,90828,767
5,330

Total long-term liabilities

357,021345,689

Total Liabilities

555,416554,822

Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock

26,157
12,608
127,430(1,278)26,157
12,608
129,965(1,272)

164,918

167,459

Long-term liabilities

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities

6,544

6,434

Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans

(591)
1,227
492

(305)
3,415
474

Total accumulated other comprehensive income

7,674

10,018Subscription rights to shares

405

401

Non-controlling interests

6,085

6,014

179,084

183,894734,500

738,716

Total Net Assets
Total liabilities and net assets8(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income
Quarterly consolidated statement of income(Three-month period)(Unit: Millions of yen)Three months ended
June 30, 2021
Operating revenue
Operating expenses
Operating expenses and cost of sales of transportation
Selling, general and administrative expenses

Three months ended
June 30, 2022

88,978

119,950

82,856
7,064

107,193
7,285

89,920114,479

Operating income (loss)

(941)

5,471

Non-operating income
Interest income
Dividend income

6
367

4
512

Foreign exchange gains
Miscellaneous income

75
1,183

474
510

Total non-operating income

1,632

1,501

520

552

362

311

286
77

22

1,247

885

Ordinary income (loss)

(557)

6,087

Extraordinary gains
Gain on sales of fixed assets
Contribution for construction

1,104
14

1

Total extraordinary income

1,118

1

14

1

52

-

Total operating expenses

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodBond issuance costs
Miscellaneous expenses
Total non-operating expenses

Extraordinary losses
Loss on reduction of non-current assets for tax
purposes
Impairment losses
Total extraordinary losses

66

1

Income before income taxes

494

6,088

Income taxes - current
Income taxes - deferred

801
(331)

2,449
(637)

Total income taxes

470

1,811

Profit24

4,276

Profit attributable to non-controlling interests

196

357

Profit (loss) attributable to owners of parent

(171)

3,919

9

Quarterly consolidated statement of comprehensive income(Three-month period)(Unit: Millions of yen)Three months ended
June 30, 2021
ProfitThree months ended
June 30, 2022
24

4,276

(1,998)
(2)
975
(7)

(109)
(0)
1,589
(18)

981

1,010

(51)

2,471

Comprehensive income (loss)

(27)

6,748

(Components)
Comprehensive income (loss) attributable to ownersof parent
Comprehensive income attributable to non-controllinginterests

(282)

6,263

254

484

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income10(3) Notes to quarterly consolidated financial statements(Notes to assumptions on going concern)
Not applicable.
(Notes if there is a significant change in the amount of shareholders’ equity)
Not applicable.

11

(Segment information)
Three-month period in the previous fiscal year (From April 1, 2021 to June 30, 2021)
1. Information on operating revenue, income or loss by reporting segment(Unit: Millions of yen)
Reporting segment

Other(Note) 1

Adjustments(Note) 2

Amount posted
to the quarterly
consolidated
statement ofincomeTransportation

Real Estate

Distribution
Industry

Logistics

Leisure andServices

Total

Operating revenue

14,81013,225

16,843

37,461

4,231

86,571

6,502(4,095)88,978Segment income(loss)(1,862)

993

60

2,112

(2,374)(1,071)

196

(67)

(941)

(Notes) 1. "Other" consists of business segments that are not included in any of the reporting segments and includes the IC cardbusiness, the Vehicle Maintenance related business, the Construction related business, and the Metal Recycling
business.
2. An adjustment of (67) million yen in segment income (loss) is the net of (199) million yen administrative expenses ofparent company that are not attributable to the reporting segments and 131 million yen of intersegment eliminations.
3. The segment information above was prepared and shown according to the changed classification of reporting segments
following the reorganization of consolidated subsidiaries.
Three-month period under review (From April 1, 2022 to June 30, 2022)
1. Information on operating revenue, income or loss by reporting segment(Unit: Millions of yen)
Reporting segment

Other(Note) 1

Adjustments(Note) 2

Amount posted
to the quarterly
consolidated
statement ofincomeTransportation

Real Estate

Distribution
Industry

Logistics

Leisure andServices

Total

Operating revenue

17,38014,123

16,67262,528

6,634

117,339

6,563(3,952)

119,950

Segment income(loss)

(78)

1,167

(95)

5,358

(885)

5,467

112

(107)

5,471

(Notes) 1. "Other" consists of business segments that are not included in any of the reporting segments and includes the IC cardbusiness, the Vehicle Maintenance related business, the Construction related business, and the Metal Recycling
business.
2. An adjustment of (107) million yen in segment income (loss) is the net of (196) million yen administrative expenses ofparent company that are not attributable to the reporting segments and 89 million yen of intersegment eliminations.

2. Matters related to changes to reporting segments, etc.
The Company implemented an absorption-type company split in which Nishitetsu Plaza Corporation in the Leisure and Services
business passed on its restaurant business to Nishitetsu Store Inc. in the Distribution Industry business at the beginning of the third
quarter of the previous fiscal year with the aim of improving profitability. As a result of this reorganization, the restaurant businessof Nishitetsu Plaza Corporation was changed from Leisure and Services business to Distribution Industry business.
The segment information for the three-month period in the previous fiscal year was prepared in accordance with the segments after
the change.

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