FY22.3
Annual Investors Meeting
May 11, 2022

Contents

Highlights

3

Ⅰ Financial Results for FY22.3

4

Ⅱ Performance Forecasts and Dividend Forecasts for
FY23.3

9

Ⅲ The Medium-Term Business Plan and
Key Measures in the Current Fiscal Year

19

APPENDIX

34

2

Highlights

Financialresults for
FY22.3

Performance
forecasts anddividend
forecasts for
FY23.3The medium-termbusiness plan andkey measures in thecurrent fiscal year

Although performance was affected by COVID-19, we remained profitable. Consolidated operating revenues,
operating income, ordinary income, and net income attributable to owners of the parent all increased year
on year, owing to such factors as a gradual recovery in demand and the sale of properties to a private REIT.



Planning a year-end dividend of ¥93 per share (annual dividend: ¥93)Despite the expected influence of COVID-19 and a decline in the sale of properties, we anticipate higher
revenues and income, owing to such factors as gradual demand recovery in each segment, and enhanced
initiatives to reduce fixed costs in the railway business.

In regard to dividends, planning annual dividend of ¥93.0 per share (year-end dividend only)

Based on the key strategies in the medium-term business plan, we will work toward completing businessstructural reforms (through the completion and enhancement of BPR), creating a model for building cities
that promote well-being (by promoting multi-faceted city-building initiatives in the western Kyushu area andother regions), and developing businesses in new areas in which we can contribute (by strengthening BtoB,
BtoG and other businesses through Business Services and Construction and other segments).

3

Ⅰ Financial Results for FY22.3

4

Consolidated Financial Highlights for FY22.3（\bil）
Results

Results

FY21.3

FY22.3Operating revenue

YoY

Operating revenue

293.9

329.5

35.6

112.1%

Operating income(22.8)

3.9

26.8

-

Ordinary income(19.3)

9.2

28.5

-

(2.9)

(2.6)

0.3

-

(18.9)

13.2

32.2

-

4.6

30.7

26.1

663.3%

Extraordinary gains andlosses
Net income attributable toowners of the parent
EBITDA※

Despite the continued influence of the COVID-19
infection and the change of JR Kyushu Drug Eleven toan equity-method affiliate [¥(12.4) billion], operating
revenue increased due to such factors as a moderate
recovery in demand in each business and the sale ofproperties to a private REIT.

Operating income
Operating income increased due to the increase inoperating revenue and continued cost reductions, etc.

※Note: EBITDA = operating income + depreciation expense (excluding depreciation of leased assets held for subleasing purposes). The same applies hereafter

Change in operating income by segment

Change in operating revenue by segment（¥bil）（億円）（¥bil）
（億円）

+8.0

0

3,000
300

+30.4
293.9

+13.6

+3.7
(7.8)

(0.8)

329.5

+15.3

+0.0

Transportation

3,500
350

建
設

+1.3

+1.1

+0.8

Other

4,000
400

調
整
額

3.9

△ 100
(10)

(3.5)

△ 200
(20)

2,500
250

(22.8)
運
輸
サ
ー
ビ
ス

不
動
産
・
ホ
テ
ル

流
通
・
外
食

そ
の
他

Operatingincome2022.3(FY22.3)

営
業
利
期 益
）

Adjustment

（

営
業
収
期 益
）

Retail andRestaurant（

Real Estateand Hotels

Operatingincome(FY21.3)
2021.3

調整
額Operatingrevenue
2022.3(FY22.3)

その他

Adjustment

流
通
・
外
食

Other

不
動
産
・
ホ
テ
ル

Retail andRestaurant

建設Real Estateand Hotels

運
輸
サ
ー
ビ
ス

Construction

営
業
収
期 益
）

Transportation

Operatingrevenue
2021.3(FY21.3)（

Construction

△ 300
(30)

2,000
200

（

営
業
利
期 益
）

5

Quarterly trend of FY22.3 (Shown According to Former Segments)

Consolidated（億円）（¥bil）

Railway Business (non-consolidated)
Operating
営業収益
revenue

Operating
営業利益
income

120
1,200

800
80

400
40

106.8

1,000
100

300
30

81.0

72.0

69.5

Railwaytransportation
鉄道旅客運輸収入
revenues

Operating
営業利益
income

30.9
27.3
23.4
20.2

22.8
19.6

ＥＢＩＴＤＡEBITDA

25.7
22.1

20
200

600
60

10
100

40
400

0.6 2.5

20
200

6.8

3.7

5.0

13.8
1.1

8.1

0
△ (10)
100

0
(20)
△ 200

Operating
営業収益
revenue（¥bil）ＥＢＩＴＤＡEBITDA

(5.0)

(3.1)

(6.6)

(4.7)

(8.4)
(11.0)

(2.7)

(1.3)

(20)
△ 200

1Q

3Q

2Q

4Q

Real Estate and Hotels Segment（¥bil）
（億円）
600
60

1Q

2Q

3Q

4Q

Retail and Restaurant segment（¥bil）（億円）

Operating
営業収益
revenue

Operating
営業利益
incomeＥＢＩＴＤＡEBITDA

500
50

200
20

Operating
営業収益
revenue

47.8

Operating
営業利益
income

12.7

150
15

400
40

ＥＢＩＴＤＡEBITDA

10.2

9.4

11.1

100
10
300
30

25.2

10
100

18.9

18.5

200
20
7.5

4.0

2.7

6.1

50
5

3.9

7.4

7.2

10.7

00

0.0

0

(0.8) (0.5)

(0.2)

1Q

2Q

0.3 0.6(0.4) (0.0)

△ (5)
50
1Q

2Q

3Q

4Q

3Q

4Q

6

FY22.3 Segment settlement (Shown According to Former Segments)（\bil）

Operating revenue
Transportation
Railway Business (non-consolidated)

Results

Results

FY21.3293.9

FY22.3329.5

35.6

112.1%

95.2

108.9

13.6

114.3%YoY

Major factors

89.7

102.9

13.1

114.7% Increase due to moderate recovery in demand

Construction

96.5

95.7

(0.8)

99.2%

Real Estate and Hotels

80.1

110.5

30.4

138.0%

Real Estate Lease

49.7

57.9

8.1

116.5%

Real Estate Sales

23.5

43.6

20.0

185.2% Increase due to the sale of properties to a private REIT

Increase due to opening of Kumamoto Station Building and Miyazaki Station Building,increase due to rebound from previous fiscal year’s building closures, rent reductions, etc.

Hotel Business

6.8

8.9

2.1

132.1% Increase due to rebound from previous fiscal year’s building closures

Retail and Restaurant

51.4

43.6

(7.8)

84.8% Decrease due to transfer of a portion of holdings of the shares of JR Kyushu Drug Eleven

Other

63.6

60.0

(3.5)

94.4% Decrease due to lower sales of construction materials

Operating income(22.8)

3.9

26.8

-

Transportation(37.6)(22.2)

15.3-(36.6)(22.0)

14.5

-

6.9

7.0

0.0

101.4%

Real Estate and Hotels

9.9

17.9

8.0

181.4%

Real Estate Lease

12.0

14.7

2.6

122.2%

Real Estate Sales

2.6

6.1

3.5

234.5%

Railway Business (non-consolidated)
Construction

Hotel Business

(4.7)

(2.9)

1.8

-

Retail and Restaurant

(2.5)

(1.2)

1.3

-

Other

1.7

2.8

1.1

164.7%EBITDA

4.6

30.7

26.1

663.3%(26.5)(13.6)

12.8-(26.4)(13.7)

12.7-

Transportation
Railway Business (non-consolidated)
Construction

8.0

8.0

0.0

100.7%

Real Estate and Hotels

22.2

31.8

9.6

143.3%

Real Estate Lease

22.0

26.4

4.4

120.1%

Real Estate Sales

2.6

6.2

3.5

233.9%

Hotel Business

(2.4)

(0.7)

1.6

-

Retail and Restaurant

(1.1)

0.0

1.2

-

Other

3.7

5.2

1.5

141.5%

7

FY22.3 Non-consolidated settlement(\bil)

Operating revenue

Results

Results

FY21.3

FY22.3

YoY

Major Factors

144.7

179.9

35.2

124.4%

76.3

89.3

13.0

117.1% Increase due to moderate recovery in demand

Shinkansen

22.4

27.4

4.9

122.1%

Conventional Lines

53.8

61.9

8.0

115.0%

Other revenue

68.4

90.6

22.2

132.5% Increase due to the sale of properties to a private REIT

Operating expense

165.3

181.3

15.9

109.7%

39.3

40.8

1.4

103.7% Increase due to results recovery

97.5

113.2

15.6

116.0%

Energy cost

7.9

8.6

0.6

108.6% Unit price increases due to sharply higher crude oil prices

Maintenance cost

29.0

30.0

0.9

103.4%

Other

60.5

74.5

13.9

123.1% Rise in cost of sales due to the sale of properties to a private REIT

Taxes

10.8

11.3

0.5

104.8%

Depreciation cost

17.5

15.9

(1.6)

90.6% Decrease due to revision of depreciation method(20.5)

(1.3)

19.2

9.7

3.5

(6.1)

(10.8)

2.2

13.1

Railway transportation
revenues

Personnel expense
Non-personnel
expenseOperating income
Non-operating income
and expense
Ordinary income

36.8% Decrease in dividend income
Rebound from the sale of a portion of holdings of the shares of JR Kyushu

Extraordinary gain
and losses

Drug Eleven

(5.7)

(2.0)

3.6

- Rebound from disaster expenses associated with heavy rains in July 2020
Rebound from increase in provision for loss on disaster related torestoration of Hitahikosan LineNet income(11.1)

8.9

20.0

Etc.

8

Ⅱ Performance Forecasts and Dividend
Forecasts for FY23.3

9

Change in Segment Classifications
We are changing our segment classifications with the aim of strengthening our businessportfolio (growing BtoB and BtoG businesses).
Overview of changes (April 1, 2022)
Former segments

New segments

Transportation

Transportation

Railway Services, Bus Services,
Hydrofoil Ferry Services, etc.
Cleaning, station service, etc., linen
supply business

Railway Services, Bus Services,
Hydrofoil Ferry Services, etc.

Construction, Rolling stock mechanicalequipment engineering, Electrical work,etc.
Residential construction and sales

to the “Business Services Segment”

Real Estate and Hotels➌

1. Positioning the “Construction Segment” andthe “Business Services Segment” as B-to-B
business areas, promoting the establishment
and growth of functional subsidiaries❶Changing the name of the “Other Segment”❷

Construction

Key points of changes

Real estate leasing, Real estate sales,
Parking lot operation, Senior careservices, Hotel operation, etc.
Residential construction and sales,
Golf course operation

Real Estate and Hotels

Retail and Restaurant

Real estate leasing, Real estate sales,
Parking lot operation, Senior careservices, Hotel operation, etc.

Retailing, Restaurants, Agriculture❷Transferring businesses to the “Business
Services Segment”
・Cleaning, station service, etc.
・Linen supply business2. Promoting growth by strengthening
collaboration with real estate businesses

Retail and Restaurant

Construction

Retailing, Restaurants, Agriculture

Construction, Rolling stock mechanicalequipment engineering, Electrical work,etc.

B-to-B business areas
Other❶ Business Services

Advertising, Construction machinerysales and rental, etc.
Golf course operation

Advertising, Construction machinerysales and rental, etc.

❹

➌Transferring residential construction and sales
from the Construction Segment to the Real Estateand Hotels Segment❹Transferring golf course management from the
Other Segment to the Real Estate and Hotels
Segment

Cleaning, station service, etc., linen
supply business

10Performance Forecast for FY23.3:
Revenue Assumptions in Main Businesses
We expect the control of COVID-19 and consumer activity to cause a gradual recovery inmobility demand and consumer spending.
Railway Business｜Handling revenues from railway transportation (vs. FY19.3)
Revenues expected to rise due to the opening of the Nishi-Kyushu
Shinkansen (September 2022)
Commuterrevenues
定期収入（累計）(cumulative)

100%

82.8%

85.3%

85.6%

Real Estate Leasing Business｜Station building*1 tenant sales (vs. FY19.3)*1 Excluding Miyazaki and Kumamoto Station Buildings

Non-commuter
定期外収入
revenues

86.3%

Approx. 90%

71.0%

Approx. 90%
63.3%

50%

77.4%

70.4%

50%

48.3%
37.4%

Approx. 90%

92.5%

100%

38.9%

April
preliminary figures

April
preliminary figures
Commuter: 81.3%
Non-commuter: 65.5%

0%Approx. 90%

0%
22.3期１Ｑ
1QFY22.3

２Ｑ

３Ｑ

４Ｑ

Assumptions
for23.3期4Q想定
4Q FY23.3

Real Estate Sales Business●We anticipate robust sales of condominiums, on a par with FY22.3.
●We expect to generate a total of around ¥17.0 billion from the sale ofrental apartments and other properties to a private REIT and the saleof an office building to a third parties (Shinkawa East Building in Chuoku, Tokyo) .

22.3期１Ｑ
1QFY22.3

２Ｑ

３Ｑ

４Ｑ

Assumptions
for23.3期4Q想定
4Q FY23.3

Hotel Business｜Occupancy rate
100%

Approx. 70%
60.9%
44.8%

50%

29.6%

35.3%
April
preliminary figures
Approx. 60%

0%
22.3期１Ｑ
1QFY22.3

２Ｑ

３Ｑ

４Ｑ

Assumptions
for23.3期4Q想定
4Q FY23.3

11

Consolidated Financial Forecast Highlights for FY23.3
Operating revenue（\bil）

Results

Forecasts

FY22.3

FY23.3Operating revenue

329.5

381.4

51.8

115.7%

Operating income

3.9

29.0

25.0

735.2%

Ordinary income

9.2

30.0

20.7

324.8%

13.2

24.5

11.2

184.9%

30.7

58.2

27.4

189.1%Net income attributable toowners of the parent
EBITDA

Despite the impact of COVID-19 and a downturn inthe sale of properties, we expect operating revenues
to increase due to gradual demand recovery in eachsegment and other factors.

YoY

Change in operating revenue by segment*

Operating income
We anticipate an increase in operating income due tothe impact of higher operating revenues and expect
to achieve a ¥14.0 billion/year reduction in fixed
costs, despite an increase in depreciation costs and arise in expenses associated with the conclusion of
Shinkansen special measures (between Hakata andShin-Yatsushiro).

Change in operating income by segment*（¥bil）（¥bil）

4,500
450

400
40

+2.4
300
30

4,000
400

+34.9
350
3,500

29.0

(1.4) (0.1) (0.3)+0.8 +5.1 381.4+7.6 +9.6

200
20

(6.4)
329.5

100
10

3.9

0
流
通
・
外
食

建
設

ビ
ジ
ネ
ス
サ
ー
ビ
ス

調
整
額

Operatingincome23.3(FY23.3)

不
動
産
・
ホ
テ
ル

Adjustment

運
輸
サ
ー
ビ
ス

Business Services

営
業
利
期 益
）

Construction（

Retail andRestaurant

営
業
収
期 益
）

Real Estateand Hotels（

Transportation

調整額Operatingincome22.3(FY22.3)

ビ
ジ
ネ
ス
サ
ー
ビ
ス

Operatingrevenue(FY23.3)
23.3* New segment categorization

建設

Adjustment

流
通
・
外
食

Business Services

不
動
産
・
ホ
テ
ル

Construction

運
輸
サ
ー
ビ
ス

Retail andRestaurant

営
業
収
期 益
）

Real Estateand Hotels（

Transportation

Operatingrevenue
22.3(FY22.3)

3,000
300

+22.5

+1.9

（

営
業
利
期 益
）

12

Consolidated Financial Forecasts for FY23.3 (by segment)(Shown According to New Segments)(\bil)
Results

Forecasts

FY22.3

FY23.3

YoY

Major factors

Operating revenue

329.5

381.4

51.8

115.7%

Transportation

104.2

139.2

34.9

133.5% Increase due to moderate recovery in demand in railway business

102.9

136.9

33.9

133.0%

Real Estate and Hotels

113.7

121.4

7.6

106.8%

Real Estate Lease

58.5

61.6

3.0

105.2% Increase in revenues from leases due to moderate recovery in demand

Real Estate Sales

46.1

43.2

(2.9)

93.5% Decrease in the sale of properties

Hotel Business

8.9

16.6

7.6

184.6% Increase in the number of guests due to a moderate recovery in demand

Retail and Restaurant

43.6

53.3

9.6

122.1% Increase due to a moderate recovery in demand and Nurubon’s full-year contribution to results

Construction

92.9

86.5

(6.4)

93.1% Decrease in construction related to the Nishi-Kyushu Shinkansen

Business Services

69.5

70.4

0.8

101.3%

Operating income

3.9

29.0

25.0

735.2%

Transportation(22.7)

(0.2)

22.5

-

Railway Business (non-consolidated)(22.0)

0.1

22.1

-

Real Estate and Hotels

18.0

20.0

1.9

111.0%

Real Estate Lease

Railway Business (non-consolidated)

14.7

13.9

(0.8)

94.2%

Real Estate Sales

6.2

5.4

(0.8)

86.7%

Hotel Business

(2.9)

0.7

3.6

-

Retail and Restaurant

(1.2)

1.2

2.4

-

Construction

7.0

5.6

(1.4)

79.4%

Business Services

3.3

3.2

(0.1)

95.9%

30.7

58.2

27.4

189.1%(14.1)

10.3

24.4

-

(13.7)

10.4

24.1

-

Real Estate and Hotels

31.9

34.2

2.2

107.0%

Real Estate Lease

EBITDA
Transportation
Railway Business (non-consolidated)

26.5

25.8

(0.7)

97.3%

Real Estate Sales

6.2

5.4

(0.8)

86.4%

Hotel Business

(0.7)

3.0

3.7

-

Retail and Restaurant

0.0

2.5

2.4

-

Construction

8.0

6.7

(1.3)

83.2%

Business Services

5.7

5.6

(0.1)

98.0%

13

Non-consolidated Financial Forecasts for FY23.3(\bil)
Results

Forecasts

FY22.3

FY23.3

YoY

Major factors

179.9

210.5

30.5

117.0%

89.3

122.6

33.2

137.2% Increase due to moderate recovery in demand

Shinkansen

27.4

43.8

16.3

159.5%

Conventional Lines

61.9

78.8

16.8

127.3%

Other revenue

90.6

87.9

(2.7)

97.0%

Operating expense

181.3

192.3

10.9

106.1%

40.8

40.8

(0.0)

100.0%

113.2

121.2

7.9

107.0%

8.6

10.1

1.4

116.4% Unit price increases due to sharply higher crude oil prices

Maintenance cost

30.0

30.4

0.3

101.2%

Other

74.5

80.7

6.1

108.3% Increased expenses due to the conclusion of Shinkansen special measures

Taxes

11.3

12.2

0.8

107.6%

Depreciation cost

15.9

18.1

2.1

113.6%

(1.3)

18.2

19.5

-

3.5

4.5

0.9

125.7%

2.2

22.7

20.4

-

(2.0)

(0.4)

1.6

-

8.9

21.1

12.1

235.7%

Operating revenue
Railway transportation
revenues

Personnel expense
Non-personnel
expenseEnergy cost

Operating income
Non-operating income
and expense
Ordinary income
Extraordinary gain
and losses
Net income

14

FY23.3 dividend forecasts

Shareholder return policy
JR Kyushu places importance on the stable provision of return to shareholders over the long term. Over the period toFY25.3, we will aim for a consolidated dividend payout ratio of 35%, with a minimum dividend per share of ¥93.0.
We will flexibly implement share repurchases as necessary.

FY23.3 dividend forecasts


We are forecasting continued extremely severe results for FY23.3. However, as a result of consideration in accordance withthe above policy, the dividend forecast for FY23.3 is ¥93.0 per share.



In FY23.3 we plan to pay dividends in one part, which will be the year-end dividend, with no interim dividend. Thisis due to the need to carefully consider the influence on future results of matters such as the COVID-19 infection.
(Reference) Annual dividends per share
Interim
中間配当

Year-end
期末配当

dividend

（Yen）

100

83.0

dividend

93.0

93.0

51.5

46.5

93.0

93.0

93.0

93.0

93.0

93.0

80
44.0

60
40
20

38.5
38.5

39.0

41.5

46.5

17.3期
FY17.318.3期
FY18.319.3期
FY19.320.3期
FY20.321.3期
FY21.3

13.8%

26.3%

30.2%

46.9%

13.8%

26.3%

30.2%

78.6%

0

Dividend
payout ratio
Total payoutratio

FY22.322.3期

FY23.323.3期（Forecast）（予定）（Forecast）（予定）-

110.3%

59.6%-

110.3%

59.6%* Implementation of a share
repurchase (¥10 billion)

15

(Reference) Transportation Segment
Results (Former Segments)

Forecasts (New Segments)(\bil)
FY21.3

FY22.3Results

Results

Operating revenue
Railway Business (non-consolidated)
Railway transportation revenues
Operating income
Railway Business (non-consolidated)
EBITDA
Railway Business (non-consolidated)

Commuterrevenues
定期収入（累計）(cumulative)

82.8%

85.3%

85.6%

114.3%

104.2

139.2

34.9

133.5%

89.7

102.9

13.1

114.7%

102.9

136.9

33.9

133.0%

76.3

89.3

13.0

117.1%

89.3

122.6

33.2

137.2%(37.6)(22.2)

15.3-(22.7)

(0.2)

22.5

-

(36.6)(22.0)

14.5-(22.0)

0.1

22.1

-

(26.5)(13.6)

12.8-(14.1)

10.3

24.4

-

(26.4)(13.7)

12.7-(13.7)

10.4

24.1

-

revenues

Approx. 90%

63.3%
48.3%
37.4%

38.9%

22.3期１Ｑ
1QFY22.3

２Ｑ

YoY

13.6

Approx. 90%
50%

FY23.3
Forecasts

108.9

Non-commuter
定期外収入

86.3%

FY22.3Results

95.2

Railway Business｜Handling revenues from railway transportation (vs. FY19.3)

100%

YoY

(\bil)

April
preliminary figures
Commuter: 81.3%
Non-commuter: 65.5%

Railway Business｜Assumptions behind performance forecasts

 Our performance forecasts for FY23.3 anticipate increased
revenues due to the opening of the Nishi-Kyushu Shinkansen(September 2022).
 In Q4 FY23.3, we expect commuter revenues (cumulative) andnon-commuter revenues to recover to around 90% of FY19.3
levels.
 We expect to achieve ¥14.0 billion in fixed cost reductions and¥4.0 billion in cost reductions through emergency restraints andrevenue-linked cost reductions.

0%
３Ｑ

４Ｑ

Assumptions
for23.3期4Q想定
4Q FY23.3

16

(Reference) Real Estate and Hotels Segment: Real estate leasing business
Real estate leasing businessResults (Former Segments)

Forecasts (New Segments)（\bil）

FY21.3

FY22.3Results

Results

YoY（\bil）

FY22.3

FY23.3Results

Forecasts

YoY

Operating revenue

49.7

57.9

8.1

116.5%

58.5

61.6

3.0

105.2%

Operating income

12.0

14.7

2.6

122.2%

14.7

13.9

(0.8)

94.2%

EBITDA

22.0

26.4

4.4

120.1%

26.5

25.8

(0.7)

97.3%

Assumptions behind performance forecasts

Station building*1 tenant sales (vs. FY19.3)*1 Excluding Miyazaki and Kumamoto Station Buildings

Approx. 90%

92.5%

100%

71.0%

 In office buildings and rental apartments, we anticipate solid
performance, with no sign of major changes in vacancy rates atexisting properties.

77.4%

70.4%

50%

 In Q4 FY23.3, we expect tenant sales at five station buildings torecover to around 90% of FY19.3 levels.

April
preliminary figures

 Despite a decline in rents stemming from the sale of properties,
we expect higher earnings from station buildings and other items.

Approx. 90%

0%
22.3期１Ｑ
1QFY22.3

２Ｑ

３Ｑ

４Ｑ

Assumptions
for23.3期4Q想定
4Q FY23.3

17

(Reference) Real Estate and Hotels Segment: Real estate sales and hotel businesses
Real estate sales businessResults (Former Segments)（\bil）

FY21.3

FY22.3Results

Results

YoY

Forecasts (New Segments)

FY22.3

FY23.3Results

Forecasts（\bil）

YoY

Operating revenue

23.5

43.6

20.0

185.2%

46.1

43.2

(2.9)

93.5%

Operating income

2.6

6.1

3.5

234.5%

6.2

5.4

(0.8)

86.7%

EBITDA

2.6

6.2

3.5

233.9%

6.2

5.4

(0.8)

86.4%

Assumptions behind performance forecasts

 We anticipate solid sales of condominiums, on a par with
FY22.3 levels.
 We expect to generate a total of around ¥17.0 billion
from the sale of rental apartments and other properties
to a private REIT and the sale of an office building to athird parties (Shinkawa East Building in Chuo-ku, Tokyo)

Hotel businessResults (Former Segments)（\bil）

FY21.3

FY22.3Results

Results

YoY

Forecasts (New Segments)

FY22.3

FY23.3Results

Forecasts（\bil）

YoY

Operating revenue

6.8

8.9

2.1

132.1%

8.9

16.6

7.6

184.6%

Operating income

(4.7)

(2.9)

1.8

-

(2.9)

0.7

3.6

-

EBITDA

(2.4)

(0.7)

1.6

-

(0.7)

3.0

3.7

-

Occupancy rate

Assumptions behind performance forecasts

100%

Approx.
70%
7割程度

60.9%
50%

29.6%

 In Q4 FY23.3, we expect occupancy rates to recover
to around 70%.

44.8%

35.3%

April preliminary figures
Approx. 60%

0%
22.3期１Ｑ
1QFY22.3

２Ｑ
2Q

３Ｑ
3Q

４Ｑ
4Q

23.3期4Q想定
Assumptions
for
4Q FY23.3

18

Ⅲ

The Medium-Term Business Plan and
Key Measures in the Current Fiscal Year19

Toward the Realization of “the 2030 Long-Term Vision”
The Group’s “What We Aim to Be,” “Our Conduct,” and “the 2030 Long-Term Vision” remainunchanged. Taking changes in the operating environment into account in our scenario
planning, we are working toward “Implementing city-building initiatives for the realization ofwell-being” and “Expanding areas we work in that contribute to the sustainable developmentof Kyushu” to realize “the 2030 Long-Term Vision.”Management Plan Framework
A corporate group that invigorates Kyushu, Japan, andGreater Asia with safety and service as its foundation

What we aim
to beIntegrity / Growth and Evolution / Local Community Invigoration
Our conduct

2030 LongTerm Vision

Policies for the realization of
the 2030 Long-Term Vision

We will contribute to the sustainable development of Kyushu through citybuilding initiatives that leverage the distinctive characteristics of local
communities, centered on safe and secure mobility services.

Policy ①

Implementing city-building initiatives for the realization of wellbeing, with consideration for changes in values

Policy ②

Expanding areas we work in that contribute to the sustainable
development of Kyushu

Assumptions regarding changes in the environment

Medium-Term Business Plan
2022-2024

Changes in the external environment by 2030 / Changes in “values regarding
the concept of well-being” / Future scenarios that anticipate extreme changes

20

Steps toward the Realization of “the 2030 Long-Term Vision”
Targeting the realization of “the 2030 Long-Term Vision,” over the period of the current
medium-term business plan, we will work to return to a growth track and subsequently strive
to realize sustainable growth.
Positioning of each term, results, and targets
Previous Medium-TermBusiness Plan (2019–2021)

Current Medium-TermBusiness Plan (2022–2024)

2025–2030

Implementing railway services and citybuilding initiatives with consideration
for regional characteristics

Creating a model for building cities that
promote well-being/developing
businesses in new areas in which we
can contribute

Expanding/strengthening thecommunity by leveraging synergies
among city-building initiatives and new
fields in which we can contribute

Urgent measures to address theinfluence of COVID-19
Initiatives in response to
structural issues
Operating
営業収益revenue

Return to a growth track

Realization of sustainable growth¥600.0 billion
Operating
営業利益income

Railwaytransportation revenues
鉄道運輸収入¥440.0 billion¥329.5 billion¥145.0¥89.3
billion

FY22.3¥3.9 billion

billion¥57.0 billion

FY25.3 (target)¥150.0¥70.0 billion

billion

FY31.3(target)
21

Key Measures for the Current Fiscal YearKey strategies in the medium-term business plan
Completing business structural reforms

Key strategies for the realization of the long-term vision

Key strategy①
Railwaybusiness

Stabilizing profitability

Hotelbusiness

Increasing competitiveness ofexisting hotels

Retail andRestaurant
business

Increasing the competitiveness of brands
and of stores/restaurants

Construction
business

Implementing transition in primary focus
from inside the Group to outside

Key strategy②

Key strategy③

Creating a model for building
cities that
promote well-being

Developing businesses in new
areas inwhich we can contribute

Developing human resources forthe implementation andrealization of strategies

Building foundations foradvancing strategies on aGroupwide basis

Key measures for the current fiscal year
Key strategy①

Completing businessstructural reforms• Complete and strengthen BPR(*1) in the railway business

Key strategy②

Creating a model forbuilding cities that
promote well-being• Create demand through the opening of the Nishi-Kyushu Shinkansen, promote multi-faceted
city-building initiatives in the western Kyushu area
• Accelerate initiatives toward the FY24.3 opening of BRT for the Hitahikosan line and promote
MaaS

Key strategy③

Developing businesses in
new areas inwhich we can contribute
Developing humanresources
Building foundations• Consider M&A and business alliances as new targets for areas in which we can contribute• Strengthen BtoB and BtoG areas in such segments as Business Services and Construction• Consider revising the personnel and wage system, develop human resources skilled in digitaltechnologies• Build the digital foundations needed to promote DX, etc.
*1｜Business Process Re-engineering

22Key strategy❶ Completing business structural reforms:
Reduce Costs in the Railway Business through BPR
We expect to achieve fixed cost reductions in the railway business by ¥14.0 billion in thecurrent fiscal year, and we will continue working to further strengthen BPR.
Cost reductions in the previous fiscal year

Step up reductions in fixed costs• Reduced mainly through urgent control measuresand revenue-linked expenses• Achieved to brought forward some fixed cost
reductions due to BPR• Despite accumulating depreciation costs and increased expenses such as those at theconclusion of Shinkansen special measures, we plan to complete BPR this fiscal year
and reduced fixed costs in perpetuity by ¥14.0 billion per year.

Of which, fixed costs
reduced through BPR

FY22.3
Approx.

¥21.0 billion¥

Approx.

¥

4.0 billion¥¥(14.0)billion(4.0) billion(17.0) billion¥

Non-personnel expense:
Approx. ¥16.0 billion＊Note: Cost reductions are compared with FY20.3
and exclude extraordinary items.

By utilizing DX and other initiatives, realize employeefree stations, discontinue ticket-sales counters, andreduce operating hours.

billion

Step up fixed-cost
reductions
・DX promotion

・Technical innovation, etc.

¥142.5¥125.0¥136.8billionReductions in fixed costs
Reductions due to urgent
control measures, revenuelinked expenses

billionbillionOperating expenses in therailway business

FY22.3Main BPR initiatives
Establish new service systems(14.0)(4.0) billion

Breakdown
Personnel expense:
Approx. ¥5.0 billion¥

Assumptions for
FY23.3

Establish a new rolling stockand ground equipment systems
Renovate rolling stock to increase boarding
efficiency, handle internally those operations
related to rolling stock and equipment that are
currently being outsourced, eliminate ticket gateequipment, etc.

FY25.3 target

Increase efficiency of inspection
and maintenance Revise replacement standards by enhancing
inspection accuracy.
 Reduce labor requirements by changing rollingstock materials.
 Revise inspection/maintenance operations
based on train lines’ state of use.

Promote use of the JR Kyushu app andinternet reservations

Use longer seats in rolling stock23

Securing Revenues in the Railway Business:
Ticket Reevaluation, Shift to On-Line Sales
We will strengthen yield management by focusing on measures we can implement
swiftly, such as reevaluating tickets and shifting to on-line sales.
Reevaluation of various types of tickets

Initiatives in the previous fiscal year

Initiatives in the current fiscal year

❶Reevaluated prices of discount tickets sold on-line❷Discontinued sales of discount tickets sold at❶Review limited express surcharges on conventional lines(April 2022)❷Introduce the EX Service (June 2022)➌Reevaluate pricing on for online sales of discount tickets*1

counters

・Discount Shinkansen tickets: completely discontinued
・Discount tickets on conventional lines: discontinued of around 70%➌Discontinued of sets of tickets for multiple rides

and discontinue some of them (June 2022)

・Ordinary sets of tickets for multiple rides: completely discontinued
・Multiple rides for limited express surcharges: discontinued
some sets of tickets*1 An internet reservation and ticketless boarding service that can be used on the Tokaido,
Sanyo, and all Kyushu Shinkansen lines (between Tokyo and Kagoshima-chuo)

Our position on the fare system

Reference: Discount tickets on-line sales ratio and yield results
In main areas onconventional lines

新幹線（左軸）Shinkansen(left)

Companywide(non-commuter)
全社（定期外）（ Yen/passenger-kilometer ）（Yen/passenger-kilometer)

32

28

30.3

On-line sales ratio

FY22.3

Approx.

50%

30

28.5

28.5

28.4

28

In previous fiscal year, shifted toon-line sales for all discountShinkansen tickets

26

26

29.0

24.5
23.2
FY18.3
18.3期

23.5

23.7

23.9

FY20.320.3期

FY21.3
21.3期

24

22
FY19.319.3期

FY22.322.3期

 We believe that more flexibility in setting fares
would lead to better and more sustainable
service.
 We would like to consider revisions based onchanges in the operating environment, butcurrent provisions are too severe to allow forrevisions.
 We view commuter pass fares, Shinkansen
express charges, and cost-of-income calculation
procedures as particular issues.
24Structural Reforms in the Hotel BusinessAccelerate various initiatives to increase the competitiveness of existing hotels.
Improve the break-even occupancy rate

 Maintain a 25% reduction inpersonnel costs vs. pre-COVID levels
by advancing multi-skilling, etc.
 In Q3 of FY22.3, cost reductions
advanced to the point where we could
achieve break-even with an occupancy
rate of approximately 60%.

Quarterly results in the hotel business (FY22.3)（¥bil）

Operating
営業収益
revenue40
420
2Operating
営業利益

Occupancy
稼働率

Income

rate

80%

3.1

29.6%

00

60.9%

1.8

1.6

2.2
60%
44.8%

35.3%

40%

(0.0)

▲ (2)
20

(1.1)

(4)

(0.7)

(0.9)

0%

▲ 40

Major topics for future consideration

20%

１Ｑ

２Ｑ

３Ｑ

４Ｑ

30

■Rebuild THE BLOSSOM and other existing hotel brands.
■Undertake renovations in line with changes in theoperating environment.

■Strengthen operational capabilities as a hotel groupthrough developing human resources.

THE BLOSSOM brand hotels

25Key strategy❷ Creating a model for building cities that promote well-being:
City-Building in the Western Kyushu Area
Taking the opening of the Nishi-Kyushu Shinkansen as a trigger, we will promote multi-faceted developmentin the western Kyushu area and seek to maximize the impact of opening.
Expanding the non-resident population by enhancing mobility

HakataOpening of
the Nishi-Kyushu Shinkansen

Karatsu

Start of operation: September 23, 2022
Operating segment: Between Takeo Onsen
and Nagasaki (approximately 66km)
Operating the TWO STARS 4047
(new D&S train)
Start of operation: September 23, 2022
Operating on two routes between Takeo
Onsen and Nagasaki, “western Kyushu sea
tour train” makes a circuit around western
KyushuExpanding the MaaS (my route) area

・Saga Prefecture (January 2022)
・Nagasaki Prefecture (summer 2022)

Shin-Tosu

Tosu
Hakata ～ Kagoshima-Chuo

SaseboTakeo Onsen

Saga

Kyushu Shinkansen

Ureshino Onsen
ShinOmuraTakeo Onsen ～ Nagasaki

Omura

NagasakiIsahaya

Nishi-Kyushu Shinkansen

Through multi-faceted development, expanding the resident population, the non-resident population, and employment

New Nagasaki Station Building area development (fall 2023)

Ureshino Japanese-style inn
development (fall 2023)

Akane-sasu Hizenhamashuku(January 2022)• Implementing a multi-faceted development project as the landgateway to Nagasaki, an international tourism city. Including hotels(Nagasaki Marriott Hotel), commercial facilities, offices, parking lots,etc.
• Implementing environmental burden reduction, infection
countermeasures, introduction of next-generation AI/ICT.

• Implementing development at Ureshino Onsen,
one of Japan’s top three hot springs forbeautiful skin.
• Demonstrating consideration for theenvironment, such as binary power generation,use of heat from the hot springs, etc.

• Accommodation facility created byrenovating a private house owned by asake brewer.

26

Key strategy❷ Creating a model for building cities that promote well-being:
City-Building in the Fukuoka Area
In the city of Fukuoka, where the amount and rate of population growth are the largest among ordinancedesignated cities in Japan, we are advancing city-building. We are positioning the enhancement of the
Hakata Station terminal functions through extension of the Nanakuma Line of the Fukuoka City subway
system* as an opportunity.
Major development projects in the Fukuoka area

New project

Project to utilize the formersite of Sunoko elementary
schoolProject for effective use of siteof Fukuoka Prefecture east
government building

Note: Joint development by eightcompanies, with Sakurajyuji Co., Ltd.
as the representative company

Note: Joint development by three companies,
with Kyushu Railway as the representative
company

Multi-faceted development
incorporating private
retirement home,commercial facilities, etc.

Office buildings(partly commercial stores)

Offices, hotels, and commercial
facilities and squares thatcreate energy

Multi-faceted, experiencetype outdoor businesses

Opening

January 2024

March 2024

End 2028

During FY24.3

Lot area

Approximately 8,560 m2

Approximately 2,700㎡

Approximately 5,200㎡

Approximately 140ha

Name

Uses

Project utilizing the space
above the tracks
at Hakata Station

Aburayama Shimin no Moriand other renewal projects
Note: Joint development by ninecompanies, with Kyushu Railway as
the representative company* Scheduled to open in March 2023. Approximately 82,000 people per day are expected to use the extended portion (between Tenjin Minami and Hakata),
of which 23,000 per day are expected to be new users, by Fukuoka city.

27

Key strategy❷ Creating a model for building cities that promote well-being:
Promoting MaaS
To further promote MaaS, we are strengthening cooperation and expanding
initiatives involving regional transportation companies.
Examples of recent initiatives

1

Expansion of the “my route” Area

2

 Following the Fukuoka, Miyazaki, and other areas, we arecooperating with related local governments, transportationcompanies, and other entities for “my route” (a multi-modal
mobility service) in Saga prefecture. Service became available
in Saga Prefecture in January 2022 and in the Yufuin area of
Oita Prefecture in February 2022.

Cooperation with Nishi-Nippon Railroad and thecity of Kitakyushu
 At Tobata Station (Kitakyushu), our ticket offices and windows
selling Nishitetsu Bus commuter tickets are positioned next toeach other to improve customer convenience.
 In Kitakyushu, we performed construction to improve the stationfront plaza area, which included expanding the space for bus
parking. We also enhanced the station’s functionality as atransportation node, supporting collaboration among businesses.

 “my route” enables multi-modal route search (connects allmodes of transportation and suggests optimal routes), theprovision of tourist and event information, digital ticket
purchases, and other activities.

3

Cooperation with Kyushu Sanko Bus and
TaKuRoo Introduced an AI on-demand transportation service andutilizing “my route”
 Providing a seamless regional transportation network bylinking local buses, taxis, and railways
 Creating safe and secure public transportation, contributing tolocal communities, and improving the attractiveness andconvenience of tourism in Kumamoto Prefecture28

Key strategy❷ Creating a model for building cities that promote well-being:
Transitioning to BRT for the Hitahikosan Line
Building a model for sustainable mobility services
The decision was made to introduce a BRT system on the route between Soeda Station and Yoake Station, which had
become impassible due to damage in July 2017.
・In addition to the development of BRT-exclusive roads, in certain areas the BRT will operate on ordinary roads
near residential areas.
・Bus stops will also be increased in areas other than train stations for added convenience.
・To be carbon-neutral, the introduction of EV buses is under consideration.
 The project will involve expenditures of around ¥2.6 billion, and reconstruction work is expected to take around three years.
Services is targeted to commence in FY24.3.


BRT operating segment

Former station building
旧駅舎は交流施設へ
converted to a transit facility

Soeda

KokuraHakataOrdinary roads

Tosu

SaseboArtist rendering of Soeda Station after reconstruction

Station functionality

駅機能をホームへ
moved to the platform

Saga Kurume

Ordinary
一般道
roads

へ

Oita
HikosanKumamoto
Nagasaki
ShinYatsushiro
ChikuzenIwaya

Miyazaki

BRT-exclusive
roads

Constructionof a station駅前広場整備
front plaza

Across-platform transfer
鉄道とBRTの対面乗換
from railway to BRT

Hoshuyama

Kagoshima-Chuo
Ordinary roads

Yoake
Kyushu Shinkansen
Conventional lines
Halted line segments

Hita

Platform
ホーム

Note: This artist rendering of the completed building is subject to change.
29

Key strategies ➌ Developing businesses in new areas in which we can contribute:Strengthening the Business Portfolio
We will continuously monitor the businesses and flexibly reconfigure the businessportfolio.
Major initiatives over the past three years
Expanding business areas

Transportation

Retail and Restaurant
Retailing, restaurants, agriculture

Construction
Construction, rolling stock mechanicalequipment engineering, electrical work, etc.

Business Services
Advertising, construction machinery sales andrental, cleaning, station service, linen supply
business, etc.

Group, Other Continue with monitoring Focus resources on growth fields, collaborate withother companies, consider downsizing, withdrawals
and other decisions, as necessary

Real Estate and Hotels
Real estate leasing, real estate sales, parking
lot operation, senior care services, hotel
operation, residential construction and sales,
golf course operation, etc.

Business revision /withdrawal

 Revised the system for
operating hydrofoil ferries

Railway services, bus services,hydrofoil ferry services, etc.

Future directions

 Entered the asset
management business Acquired a processedmarine products
company Acquired a suburban
barbecue restaurant

 Revised business in theareas of residential
construction and sales(detached houses)
 Transferred a majority ofshares in the drugstore
business Withdrew from overseas
businesses Acquired companies that
perform electrical work

 Acquired companies in theconstruction machinery
rental business Acquired companies in thesystem business Sold the leasing business Established specialized
regional funds to promotebusiness portfolio revision

 Sold the hospital business Actively promote M&A and business alliances Strengthen BtoB business, particularly in theConstruction and Business Services segments, andaim to grow by actively strengthening M&A andexpanding areas, etc.
 Actively accept orders for public construction workthat supports city infrastructure, including fields
other than railways

 Consider energy-related business as a new
business field

30

Key strategies ➌ Developing businesses in new areas in which we can contribute:Strengthen BtoB and BtoG Businesses
We will strengthen BtoB and BtoG businesses with an eye to expanding areas in which we
can contribute and enhancing business sustainability.
Strengthening areas of BtoB businessInitiatives to date
 Since companies in these areas were firstestablished, the Construction and Other segments
have mainly handled orders from JR Kyushu andbeen positioned as functional subsidiaries.

Percentage of external sales, by segment*

Construction
FY22.3

 Through the accumulation of expertise andreinforcement of human resources, in recent
years we have secured orders from outside theGroup, such as for construction on the Hokuriku
Shinkansen and the Tokyo Metro.
 Caterpillar Kyushu, which we acquired in 2017,
is increasing profits by expanding its sales
network, cross-selling with other Group
companies and others and taking advantage of
our solid financial position and other synergies.
 Profits in the Construction and Other segments
have been stable, despite COVID-19.

Future directions

Approx.

44%

Approx.

58%

Operating income*（¥ bil）

Construction
建設

100
10.0

Other
その他

6.9

6.5
5.0
50

Other
FY22.3

7.0

2.2

1.7

FY20.320.3期

FY21.3
21.3期

2.8

0

0
FY22.322.3期* Calculated on the basis of former segments

In BtoB and BtoG businesses, which will be are less susceptible to demographic changes, we will
accelerate M&A, expand business areas, and promote business alliances. As a result, we aim to growthese businesses into pillars for the Group.
31Capital Investment Plan
This fiscal year, we will continue making maintenance and upgrade investments, such as
investing in rolling stock for the Nishi-Kyushu Shinkansen.
We will accelerate growth investments to expand our development pipelines, using cash
obtained through the sale of properties to a private REIT and in other ways, in addition toutilizing our debt capacity.
Capital investment amounts
Maintenance
維持更新投資and upgrade investment（¥ bil）

成長投資
Growth investment

1400
140.0
116.7

1200
120.0
1000
100.0

600
60.0

Bonds,
borrowings,
etc.
74.0

65.1
64.7

57.6

Sale ofproperties,
etc.

39.0

400
40.0
200
20.0

100.8

95.2

800
80.0

<Fund-raising>

37.5

Main capital investment
projects in this fiscal year
Growth investment●New Nagasaki Station Building development●Kagoshima-Chuo Station west entrance
development●Ureshino Japanese-style inn development Etc.

Maintenanceand upgrade investment
36.0

26.0

EBITDA

42.7●New production of rolling stock for the NishiKyushu Shinkansen●New production of YC1 rolling stock Etc.

00
20.3期
FY20.321.3期
FY21.322.3期
FY22.3

Previous medium-term business plan

FY23.3 plan
First year of the 本中期経営計画期間
current mediumterm business plan

32

ESG Initiatives
We will promote initiatives to achieve the non-financial KPIs listed in the medium-termbusiness plan.
For certain items, a link with officer compensation will also be considered.
Status of major initiatives
E

S

G

Realization of a decarbonized society

Safety and service, the foundation for all of our businesses

Sound corporate management

Reduction of CO2 emissions

 Utilization of renewable energy••

Purchased renewable electricity
generated by Osaka Gas at windfarms and other facilities in Saga
Prefecture for use at stations along
the Chikuhi Line (January 2022)
Signed an on-site PPA with ShinIdemitsu, introduction of solar
power generation at the Nagasaki
works (April 2022)

Enhancing communication withstakeholders

Safety Launched “Safety Creation
Activities 2022”

 Maintain and strengthen dialogue
with each stakeholder

 Conducting six rounds of training
at the Safety Creation Center
Service Started “Toward a Corporate
Culture Founded on Service2022” project

Development of human resources, the source of value creation
Disclosure of environmentrelated information
 Started studying amounts ofenergy usage with a view toachieving Groupwide Scope 1 and2 emissions
 Calculated and disclosed Scope 3
emissions for JR Kyushu on a nonconsolidated basis (April 2022)

Employee engagement

 Conducted and are analyzing
results of an employee
awareness survey
 Began considering a new
personnel and wage system

Re-skilling support

 Develop human resources skilled
in digital technologies
Holding the Digital-1 Grand Prix(presentation of initiatives utilizing
digital tools) (February 2022)

33

APPENDIX

34

Consolidated Balance Sheet and Cash Flow Statement
Consolidated Balance Sheet（\bil）

Results

Results

FY21.3

FY22.3

Total Assets

YoY

Major factors

891.3

951.9

60.6

Cash and time deposits

22.9

39.7

16.7

Short-term securities

42.0

39.0

(3.0)

Property, plant and equipment

532.0

575.3

43.2 Increase due to Kumamoto Station Building opening

98.0

109.2

11.1

Interest-bearing debt

250.9

323.1

72.2 Increase due to bonds and commercial paper

Net assets

395.4

389.0

(6.3) Decrease due to dividend payments

Capital and paid-in capital

240.0

241.8

1.8

Retained earnings

150.0

147.9

(2.0)

ROE

-4.7%

3.4%

D/EBITDA

54.09

10.50

Equity ratio

43.8%

40.8%

Railway business assets

Consolidated Cash flow statement

Cash flows from operating activities
Depreciation expense
Cash flows from investing activities（\bil）

Results

Results

FY21.3

FY22.3

YoY

Major factors(10.3)

56.4

66.8 Increase in income before income taxes

29.3

29.0

(0.3)

(53.9)(95.7)(41.8) Decrease due to rebound from transfer of a portion of holdings of the shares of JR Kyushu Drug Eleven(95.2)(101.4)(6.2)

Free cash flow

(64.2)(39.2)

25.0

Cash flows from financing activities

105.8

52.5

Cash and cash equivalents

65.0

78.7

Capital expenditures(53.3) Decrease in fund-raising
13.6

35

Railway business (transportation data)
Railway Transportation Revenues(\bil)
Results

Results

FY21.3

FY22.3

Total

YoY

Major Factors

76.3

89.3

13.0

117.1%

Commuter pass

26.2

27.9

1.6

106.2%

Non-commuter pass

50.0

61.4

11.4

122.8%

Cargo

0.0

0.0

0.0

-

Shinkansen

22.4

27.4

4.9

122.1%

Commuter pass

2.4

2.4

0.0

100.4% Increase due to gradual recovery in demand

Non-commuter pass

20.0

24.9

4.9

124.8%

Conventional Lines

53.8

61.9

8.0

115.0%

Commuter pass

23.8

25.4

1.6

106.8% Increase due to gradual recovery in demand

Non-commuter pass

30.0

36.4

6.4

121.5%

Passenger-Kilometers（Millions of passenger-kilometer)

Total

Results

Results

FY21.3

FY22.3

YoY

5,564

6,132

567

110.2%

Commuter pass

3,466

3,620

154

104.5%

Non-commuter pass

2,098

2,511

413

119.7%

868

1,002

134

115.5%

Commuter pass

177

178

0

100.4%

Non-commuter pass

690

824

133

119.3%

Conventional Lines

4,696

5,130

433

109.2%

Commuter pass

3,288

3,442

154

104.7%

Non-commuter pass

1,407

1,687

279

119.9%

Shinkansen

36

EBITDA by Segment
Transportation
EBITDA（億円）(¥bil)

400
40

34.3

Real Estate and Hotels(¥bil)（億円）

EBITDAマージン
EBITDA margin

34.4

34.3

30
300

40%

29.5

0
(10)
-100

32.0

30%

200
20
100
10

EBITDA

40
400

33.1

EBITDAマージン
EBITDA
margin

31.8

30.5

30
300

50%
22.2

20%
18.7%

18.6%

18.3期

19.3期

FY18.3

18.9%
19.3期

FY19.320.3期

FY19.3

FY20.3

(30)
-300

46.2%

45.6%

22.3期

FY21.3

FY22.3-10%(13.6)

-20%

100
10

30%

33.7%

00

-30%

(26.5)

40%

39.5%

0%

21.3期

(New Segments)

(20)
-200

200
20

10%

17.0%

60%

35.6

FY18.318.3期

FY19.319.3期

FY19.319.3期

FY20.3
20.3期

27.7%

28.8%

FY21.321.3期

FY22.322.3期

20%(New Segments)

Retail and Restaurant

Construction
12%
EBITDA

7.0

7.5

EBITDAマージン
EBITDA
margin

7.2

7.6

8.0

8.0

8.0% 8.2% 7.7% 7.7% 8.3%

80
8EBITDA

8%

EBITDAマージン
EBITDA margin

80
8

5.3

5.0

6%

5.0

6%

5.2%

40
4

4.9%

4.9%

4%

4.3%

40
4

40
4

2%

2%

4.1

3.9

8.7%

4.3

7.0%
5.9%

4%
202

5.2

60
6

4.4

12%

EBITDAマージン
EBITDA margin

6.3
60
6

8.5%

20
2

EBITDA

10%

8%
6
60

（億円）
(¥bil)（億円）(¥bil)(¥bil)
100
10

80
8

Other

3.7

5.8% 6.0% 5.8%

10%

8%

6%

4%

20
2
2%

+0.0
0
0

0%

0

FY18.3 FY19.3 FY19.3 FY20.3 FY21.3 FY22.3
18.3期19.3期19.3期20.3期21.3期22.3期

18.3期

19.3期

19.3期

20.3期

FY18.3 FY19.3 FY19.3 FY20.3(New Segments)(New Segments)(2)-20* Figures by segment are prior to eliminating intersegment transactions.

21.3期

0.1%
22.3期

0%

FY21.3 FY22.3

00%
FY18.3 19.3期
FY19.3 19.3期
FY19.320.3期
FY20.3 21.3期
FY21.3 22.3期
FY22.3
18.3期

(1.1)
-2%

(New Segments)

37

Trends in the Railway Business
Railway transportation revenues (Shinkansen), passenger
load factor on the Kyushu Shinkansen (Hakata－Kumamoto)(¥bil)

新幹線
Shinkansen

800
80
700
70

乗車率（右軸）
Passengerload factor (right)

52%

50%

60%

52%

30%

23%

52.3

22.4

10
100

27.4

0
FY18.318.3期

FY19.319.3期

FY20.320.3期

FY21.321.3期

金額
Unit Sales（¥bil）

25
2.5(10,000 tickets)

2.39
2.21

2.34

200

20%

100

10%

0

FY22.3
22.3期

386

30

457

100
10

288

210

0
18.3期
FY18.319.3期
FY19.320.3期
FY20.321.3期
FY21.322.3期
FY22.3

Shinkansen (left)
新幹線（左軸）32（¥bil）

Companywide
全社（定期外）(non-commuter
passes)

20

30.3
26

200
20

29.0
28.5

22.9

25.1

25.8

24.5
10

100
10

25.9

25.9

0.03

0.0

0.2

FY18.3
18.3期 FY19.3
19.3期 FY20.3
20.3期 FY21.3
21.3期 FY22.3
22.3期

28.4
24.5

18.1

23.2
0

28.5

28
16.1

5
0.5
0.00

28

30
300

30

15
1.5

0

200
20

12.6

291

20
2.0

10
1.0

18.0

Yield (Companywide (non-commuter passes),
Railway transportation revenues
Shinkansen)(short distance)（円/人ｷﾛ）（Yen/passenger-kilometer)（Yen/passenger-kilometer)（円/人ｷﾛ）

Sales Amount and Unit Sales of
JR-KYUSHU RAIL PASS
販売数累計
Sales Amount

300
30

300

30%
54.9

31.3

20.7

40%

54.1

金額（右軸）
Sales (right)

26.6

400

400
40

200
20

400
40
件数

Number ofreservations

500

500
50

(¥bil)

600

50%

600
60

300
30

Internet train reservation services:
Number of reservations, sales（10,000 reservations）

0

23.5

23.7

23.9

26
18.3期 FY19.3
19.3期 FY20.3
20.3期 FY21.3
21.3期
22.3期
FY18.3
FY22.3

24

22
18.3期
FY18.319.3期
FY19.320.3期
FY20.321.3期
FY21.322.3期
FY22.338

Trends in the Real Estate and Hotel Businesses
Hotel occupancy rates and average unit prices

Station building tenant sales（¥bil）（億円）

Other main station

その他主要駅ビル
buildings

2,500
250
195.8

2,000
200
1,500
150

82.7

203.0

JR
Hakata City
JR博多シティ(left)ADR（左軸）16,000

202.6
184.6

84.4

85.8

12,17912,000

144.6

82.3%

13,103

Occupancy

稼働率（右軸）Rates (right)

100%

13,877
11,766

11,370

80%

82.1%
73.3%

97.3

60%

8,000

71.8

1,000
100

40%

113.0

500
50

（¥）

118.5

116.8
72.8

87.2

0

42.7%

4,000

32.3%

20%

0
FY18.318.3期

FY19.319.3期

FY20.320.3期

FY21.321.3期

0%FY22.322.3期

18.3期
FY18.3* Other main station buildings include the Miyazaki and Kumamoto Station Buildings from FY21.3.

19.3期
FY19.320.3期
FY20.321.3期
FY21.322.3期
FY22.3

Rental apartment numbers (cumulative) andoccupancy rate

Unit sales of condominiums (cumulative)（Units）

10000（Units）（戸）

Number of

戸数
units

6,000

8000

5,000
6000

97.4%

97.4% 97.4%

Occupancy

入居率
Rates
97.7%

97.6% 97.7%

98%

4,000

4000
5,949

6,415

6,989

7,564

8,008

8,569

96%

3,000
2,000

2000

1,000

2,637

3,147

3,961

4,438

5,142

4,704

17.3期
FY17.318.3期
FY18.319.3期
FY19.320.3期
FY20.321.3期
FY21.322.3期
FY22.3

94%
92%

0

0

100%

90%
17.3期
FY17.318.3期
FY18.319.3期
FY19.320.3期
FY20.321.3期
FY21.322.3期
FY22.3* Numbers of rooms are as of the end of each fiscal year
* Occupancy rates are averages of the figures at the end of each month (excluding the year of
opening for newly opened properties; excluding newly acquired properties)

39

Overview of Major Development Pipelines
Name

Location

Schedule

Floor space/Lot area
Units/Rooms

Notes (Uses, etc.)

Floor space: Approx. 102,000㎡

・Multi-faceted development incorporating
commercial facilities, hotels, offices, etc.
・Considering environment burden reduction
measures, use of AI/ICT

Nagasaki Station area
development

Nagasaki City,
NagasakiPrefecture

March 2022: Opening underelevated railway tracks
Fall 2023: Full opening of new
station building* Moved forward from plan of
FY26.3Kagoshima-Chuo Station West
Entrance Development

Kagoshima City,
Kagoshima
Prefecture

Fall 2021: Start of construction
Spring 2023: Phase 1 development
opening
From FY2025: Phase II
development opening

Chuo-ku,
FukuokaCity

January 2024: Opening

Lot area: Approx. 8,560㎡
Floor space: Approx. 27,000㎡

Hakata-ku,
FukuokaCity

Spring 2022: Start of construction
March 2024: Opening

Lot area: Approx. 2,700㎡
Floor space: Approx. 22,000㎡

Ureshino Japanese-style inn
development

Ureshino City,
Saga Prefecture

Fall 2023: Opening:

Lot area: Approx. 9,600㎡

THE BLOSSOM KYOTO(Hotel development in
Shimogyo-ku, Kyoto City)

Shimogyo-ku,
Kyoto City

Winter 2020: Start of construction
Summer 2022: Opening

180 rooms
Floor space: Approx. 9,600㎡

Minato-ku, Tokyo

Winter 2020: Start of construction
Spring 2025: Planned completion

Lot area: Approx. 22,500㎡
Floor space: Approx. 180,700㎡

Office buildings (partly commercial stores)

Minami-ku,
Fukuoka City

July 2022: Start of construction
FY2024.3: Renewed facility opening

Lot area: Approx. 140ha

Accommodation (camping, glamping), commerce, outdoor
parks, farms, others

Hakata-ku,
FukuokaCity

End 2028: Opening

Lot area: Approx. 5,200㎡

Offices, hotels, and commercial operations, and plazas, etc.

Project to utilize the formersite of Sunoko elementary
School* Joint development by eight companies,
with Sakurajyuji Co., Ltd. as therepresentative company

Project for effective use of siteof Fukuoka Prefecture east
government building* Joint development by three companies, with
Kyushu Railway as the representative company

Toranomon 2-chome category
1 urban redevelopment
project* Joint development by six companies, withNIPPON STEEL KOWA REAL ESTATE CO.,LTD., as the Group representative for theacquisition of reserved floor area.

Aburayama Shimin no Moriand other renewal projects* Joint development by nine companies,
with Kyushu Railway as the representative
company

Project utilizing the space
above the tracks at Hakata
StationNote: Schedules are subject to change

Lot area: Approx. 9,500㎡
Floor space: Approx. 25,400㎡(phase 1 development)

・Phase 1: commercial facilities, offices, multi story parking
garage; phase 2: multi-faceted development, including
residences, etc.
・Considering infection countermeasures, environment burden
reduction measures, use of ICTMulti-faceted development incorporating private
retirement home, commercial facilities, etc.

・Office buildings (partly commercial stores)
・Introducing automatic cleaning robot, solar power
generation, etc.

40

Kyushu has one of the best economic bases in Japan:
Fukuoka is a rapidly growing city
 Kyushu is positioned as the "10% economy of Japan" (in terms of gross regional product, total population,
total area, number of establishments, etc.)
 In particular, The Fukuoka Metropolitan Area is a city with high growth potential with a population that is
expected to continue to increase in the future
Major cities and population in Kyushu(Unit: 1,000)

Kitakyushu
City
Fukuoka 930
City
1,610

Ordinance-designated cities with high rates of population
growth (2015 to 2020)

No. 1 Fukuoka City

4.79%
4.75%

No. 2 Saitama City

Saga
City
230

Oita City
470

4.27%

No. 3 Kawasaki City
Kyushu Shinkansen

Nagasaki City
400

Sanyo Shinkansen

Kumamoto
City
730

2.28%

No. 4 Osaka City

Trunk Lines
Local Lines

Nationwide
Miyazaki City
400
Kagoshima
City
590

1.59%

No. 5 Nagoya City

(0.75)%

Tokyo 23 wards
出所： 統計局「住民基本台帳人口移動報告」
出所： 統計局「住民基本台帳人口移動報告」-1.0%

Source: City Home Pages – estimated population（2021）

Land price trend around Hakata Station

0.0%

1.0%

2.0%

4.97%
3.0%

4.0%

5.0%

Source: Results of Basic Complete Tabulation on Population and Households of the 2020
Population Census of Japan

Urbanization of Fukuoka and decreasing populations inregional cities
Population declining in Kyushu overall as population
becomes concentrated in Fukuoka

April 2016
JRJP Hakata
Building
openedMarch 2011
JR HakataCity opened

Fukuoka city (107.5)

Fukuoka pref. (89.3)
Nat’l avg. (83.7)
Kyushu (81.2)

Source: Ministry of Land, Infrastructure, Transport and Tourism

Source: National Institute of Population and Social Security Research

41

Railway Business—Outline of Fares/Charges and Measures to Increase Revenues
Outline of Fares/Charges(¥bil)
400
40
300
30
200
20
100
10
0
▲ 100
(10)
▲ 200
(20)
▲ 300
(30)
▲ 400
(40)

■ Breakdown of fares/charges
Charges

Fares→ Compensation for the use of facilities, the provision of additional services,and the provision of services, which are other than transportation→ Compensation for the transportation of people or goods

Trend of operating income in the railway business

28.2

25.0

26.7

20.0

FY16.316.3期

21.3期
FY21.317.3期
FY17.318.3期
FY18.319.3期
FY19.322.3期
FY22.320.3期
FY20.3(11.5)(22.0)(36.6)■ Procedures for establishing and adjusting fares/charges• Establishing/adjusting the upper limit for fares and Shinkansen express charges requires the approval
from the Minister of the Ministry of Land, Infrastructure, Transport and Tourism(MLIT).
• Establishing/adjusting fairs and Shinkansen express charges within the scope of the upper limit andestablishing/adjusting conventional line express charges, etc., can be handled by notification to the
Minister of the MLIT.

If examination standards are met (illustration)
Business
compensation
Non-operating
revenues■ Examination standards for upper limit fares/charges• Prior to giving approval for establishing/adjusting the upper limit on fares, the Minister of the MLIT
must confirm that the new upper limit does not exceed “total cost,” which is the sum of the proper
operating costs if it were to carry out efficient management and the proper profit calculated pursuant
to specified methods.
(The Company implemented a substantial fare revision, other than consumption tax revision, in 1996)

OperatingexpenseRailwaytransportation
revenue

Expense ＞ Revenue(Reference) MLIT web site

Advancing measures to increase sales using Internet sales

Internet train reservation sales

Internet train reservation services: Number of reservations, sales

Current initiatives

Previously

Number of件数
reservations

600

Fares

Charges
Implement
Across the-board
discounts
to increase ourcompetitivenessversus othertransportationcompanies

Discount
tickets

Promotingshift toInternetsales

Controlling unit
sales of discounttickets anddiscount rates inline with demand

Fares

400

金額（右軸）
Sales (right)

26.6

300
30

20.7

18.0

300
Discount
tickets

200
100

400
40

31.3

500
Charges（¥bil）（10,000 reservations）

291

386

457

12.6
210

288

0

Regularprice

Regular
price

200
20
100
10

0
FY18.318.3期

FY19.319.3期

FY20.320.3期

FY21.321.3期

FY22.322.3期

42

Railway Business Expenses
Special tax measures
In FY22.3, the impact of Shinkansen special measures (between Hakata to Shin-Yatsushiro) was approximately ¥3.4 billion.

Special tax measures for the Kyushu Shinkansen (between Hakata and Shin-Yatsushiro) ended at the close of FY22.3.
(¥bil)

Details of the special measures
Name

Item

Shinkansen
specialmeasures

Property tax*1

40
4

Settlement
item

Tax base～ FY17.3～ FY22.3

FY23.3

1/6

1/3

Ended

Expected impact of the end of Shinkansen special
measures (between Hakata to Shin-Yatsushiro)

30
3
20
2

Non-personnel
expenses10
10Assumptions for Assumptions for Assumptions for
23.3期想定
24.3期想定
25.3期想定
FY23.3
FY24.3
FY25.3*1 Tax on Shinkansen-related assets borrowed from the Japan Railway Construction, Transport andTechnology Agency

Depreciation costs Change in depreciation method
 Inline with usage conditions, changing the depreciation
method and depreciation period for railway business fixed
assets Amountof influence: Expected reduction in depreciationof ¥3.4 billon in FY22.3

Items

Affected
assets

Details

Change indepreciation method

All assets

Declining-balance method→ Straight-line method

Change indepreciation period

Rolling stock

Legal useful life (13 years)→ Economic useful life (20 years)

 Gradual increase in depreciation costs(¥bil)

 Decreasein depreciation costs in conjunction with impairment losses on fixed
assets held in the railway business (approximately ¥520.0 billion) recorded on
March 31, 201625
250

 Capital investment of between ¥25.0 billion and ¥30.0 billion a year conducted100
10

in railway business after impairment losses Gradual increase of ¥1.0–2.0 billion per year in depreciation costs going forward

due to continuation of current trends

23.3

200
20
150
15

5
50

8.7
2.0

4.3

6.0

10.1

7.7

0
FY21.3 FY22.3
16.3期 FY17.3
17.3期 18.3期
19.3期 FY20.3
20.3期 21.3期
22.3期
FY18.3 FY19.3
FY16.343

Damage to the Hisatsu Line due to Heavy Rains in July 2020
 Based on the information currently available, we estimate railway restoration costs to beapproximately ¥23.5 billion.
We are participating in the JR Hisatsu Line Review Conference held by the Ministry of Land, Infrastructure,
Transport and Tourism and Kumamoto Prefecture, and considering methods for restoring the Hisatsu Line.
Halted line segments

Hisatsu Line: Yatsushiro to Yoshimatsu

Distance

86.8 km

Main damage

Washed-out bridges, sediment andembankment inflows, etc.

Restoration period

Undetermined

Approximate
restoration costs

Approx. ¥23.5 billion*1

KokuraHakataSaseboHizenYamaguchi
Takeo Saga
Onsen

Tosu
Hita

KurumeYufuinBungoMori

Oita

Ueki

NagasuKumamoto

NagasakiYatsushiro

Shin-yatsushiro
Hitoyoshi

Yoshimatsu
川内
SendaiMiyazaki

Kushikino

Kyushu Shinkansen
Kagoshimachuo

Shibushi

AoshimaConventional lines
Halted line segments*1 ・We have calculated approximate restoration costs for restoring the bridges crossing the Kumagawa (Kumagawa Railway Bridge No. 1 and Kumagawa Railway
Bridge No. 2), making reference to estimated high-water levels based on the Basic Policy for River Improvement, revised in December 2021.
・Excepting the section above, approximate restoration costs have been calculated for restoring general rail sections to the same heights as before the flooding.

44Forward-Looking Statements
These materials contain forward-looking statements concerning business
forecasts, targets, etc. of the JR Kyushu Group.
These statements are judgments made by the Company based on information,
projections, and assumptions available at the time of the materials’ creation.
Accordingly, please be advised that actual operating results could greatly differ
from the contents of the materials due to the influence of COVID-19; changes inpeople’s values and lifestyles; the economic situation inside and outside Japan andthe economic situation in Kyushu; real estate market conditions; the progress ofrespective projects; changes in laws and regulations; and a wide range of otherrisk factors.

IR materials can be viewed on our corporate website:

https://www.jrkyushu.co.jp/company/ir_eng/library/earnings/

45