(Translation)

February 10, 2020
To whom it may concern:
Company Name: Kyushu Railway Company
Name of Representative: Toshihiko Aoyagi, President and CEOSecurities Code: 9142
Tokyo Stock Exchange (First Section) and Fukuoka Stock Exchange
Inquiries: Public Relations Department
TEL +81-92-474-2541
Notice Regarding Enhancement of Shareholder Benefit Program
JR Kyushu issues two types of discount coupons under its shareholder benefit program — railway shareholder
discount coupons and JR Kyushu Group shareholder discount coupons. At this time, the Company has decided toenhance its shareholder benefit program with a view to heightening the attractiveness of the Company’s stock forinvestors and encouraging investors to increase their shareholdings and to hold their shares for long periods of time.
The details are as follows.
Implementation will start with the shareholder benefit program with a record date of March 31, 2020.
1. Enhancement of the details of the JR Kyushu Group shareholder discount coupons
With the previous discount coupons, the available options were set individually by the participating facilities.
With the new discount coupons, shareholders will be able to use them like cash at participating facilities.

(1) Terms
Previous “JR Kyushu Group Shareholder

New “JR Kyushu Group Shareholder discountdiscount coupons”

coupons”

5 coupons to each shareholder

5 coupons to each shareholder (¥500 × 5)

Late May each year

Same as on the left

One year (June 1 to May 31, each year)

Same as on the left

Discount

Percentage or fixed-amount discounts fromCan be used in the same manner as cash

details

regular prices* Multiple coupons can be used for a single

Numberdistributed
Timing ofprovision
Period ofvalidity

payment, change will not be given.

(2) Participating facilities, etc.
Please see the attachment

2. Establishment of “JR Kyushu jet ferry shareholder discount coupons”
In addition to the “JR Kyushu Group Shareholder discount coupons,” the Company will also issue discountcoupons that will enable the purchase of a round-trip ticket (standard class) for one person for passage on thejet ferry QUEEN BEETLE or BEETLE on the Fukuoka-Busan route for a price of ¥14,000.
(1) Terms
Number distributed

1 coupon to each shareholder

Timing of provision

Late May each year

Period of validity

One year (June 1 to May 31, each year)

Locations where theHakata International Terminal, 1st floor, Beetle counter

coupons are accepted* These coupons cannot be used at the Port of Busan Beetle counter, JR Kyushu
counters, or travel agentsOther• Routes are limited to departures from Fukuoka.
• Separate from the fares, a special fuel surcharge, port tax, etc., will be required.
• The coupons cannot be used on certain days, such as during Golden Week, theyear-end/new year period, etc.

3.

Introduction of long-term shareholder benefit program
For shareholders who have held the Company’s shares for a long period of time, in addition to the current
shareholder benefits, we will also issue “railway shareholder discount coupons” and “JR Kyushu Group
shareholder discount coupons.”(1) Eligible shareholders
Eligible shareholders are those who are listed or recorded in the final shareholder register on March 31 eachyear, hold five units (500 shares) or more of the Company’s stock, and have held shares continuously for threeyears or more (*), even if only one unit.
* The phrase “held shares continuously for three years or more” refers to shareholders who are continuously
listed or recorded seven times or more under the same shareholder number in the shareholder register as of
the record dates of March 31 and September 30 each year. Decisions about the holding period will becalculated retroactively from March 31, 2020.
* In certain cases, such as when shareholders completely sell their shareholdings and then repurchase shares,
or when the stock lending services of securities companies are used, the shareholder number changes andthe shareholder will not be eligible.
(2) Issuance standards“Railway shareholder discount coupons” and “JR Kyushu Group shareholder discount coupons” will be issuedin accordance with the following issuance standards.
Number of shares held / details of

Railway shareholder discount

JR Kyushu Group shareholder

benefits

coupons

discount coupons

500 shares to less than 1,000 shares

1 coupon2 coupons

1,000 shares or more
2 coupons
4 coupons
Note that the discounts available with additional “railway shareholder discount coupons” are the same as thecurrent discounts (for each coupon, 50% off one-way fares/charges for one person)

(3) Period of implementation, etc.
Implementation will start with shareholders as of March 31, 2020. Decisions about the holding period will becalculated retroactively from March 31, 2020 (record date).
(4) Timing of provision
Additional shareholder discount coupons will be enclosed with the shareholder discount coupons sent in late
May each year.

End(Attachment)< Participating facilities for the new “JR Kyushu Group shareholder discount coupons”>
Company Name:
JR Kyushu Jet Ferry Inc.

Participating facilities
QUEEN BEETLE
BEETLE

Usage terms, etc.
• Can be used only for the purchaseof on-board sales items on theHakata-Busan and Tsushima-Busanroutes• Cannot be used on mixed boarding
ferries on the Hakata-Tsushima route

JR Kyushu Station Hotel

JR Kyushu Station Hotel Kokura• Can be used only for payment at theKokura Inc.
JR Kyushu Huis Ten Boschfront desk
Hotel Okura JR Huis Ten Bosch

Hotel Co., Ltd.

• Can be used for lodging, banquets,restaurants, and shops (cannot beused at FamilyMart)• For lodging, can be used only for
payment at the front desk

JR Kyushu Hotels Inc.

THE BLOSSOM HIBIYA• Can be used only for payment at theTHE BLOSSOM HAKATA Premier

front desk

JR Kyushu Hotel Blossom Shinjuku
JR Kyushu Hotel Blossom HakataChuo
JR Kyushu Hotel Blossom Fukuoka
JR Kyushu Hotel Blossom Oita
JR Kyushu Hotel Blossom Naha
JR Kyushu Hotel Kokura

JR Kyushu Hotel Nagasaki
JR Kyushu Hotel Miyazaki
JR Kyushu Hotel Kagoshima
JR Hotel Yakushima
Beppu Onsen ‐ Bamboo and Camellia
Inn ‐ Hanabeppu
Oyama YumeKobo, Inc.

Okuhida Onsen Umehibiki• Can be used only for payment at thefront desk

Michi-no-Eki Mizube no Sato Oyama(including Kashii branch)
JR Kyushu Food Service Inc.

Umeshu Gura OYAMAEkitei Miyakonojo StationEkitei Satsuma
Ekitei Oita Station
Umaya Canal City
Akasaka Umaya Hakata
Umaya Nagasaki
Umaya Kagoshima
Umaya JR Hakata City• Cannot be used at online shop

Umaya-no SUI Oita
Hinokuni Umaya
Akasaka Umaya
Kitasenju Umaya
Yurakucho Umaya No Gakuya
Gaien Umaya Shinanomachi
Tachikawa Umaya No Gakuya
Umaya No Gakuya Tokyo Solamachi
Akasaka Umaya Shinjuku
Akasaka Umaya Ikebukuro Tobu
Tenjin Shatohanten
Hakata Shatohanten
Bungo Chaya Beppu Station
A&K Beer&Food Station
Tanya HAKATA
Ming Uchino Tamago fresh egg direct
Akasaka Umaya Uchino Tamago freshegg direct (Haneda Airport)
Akasaka Umaya Uchino Tamago freshegg direct (Akasaka Biz Tower)
Sui De Vin yakitori and wine
Udon Izakaya Sui Hakata main store
Udon Izakaya Sui Ropponmatsu 421
JR Kyushu Farm Co., Ltd.

Yaoyano Kyuchan Chihaya• Cannot be used together with credit

Yaoyano Kyuchan Yoshizuka

cards

Yaoyano Kyuchan Ropponmatsu
Yaoya Kyuchan MARK IS fukuokamomochi
JR KYUSHU DRUG

Drug Eleven

ELEVEN CO.,LTD.

• Cannot be used at stores combining
dispensing pharmacy andFamilyMart

Manbou Corp.

Manbo underwater seafood restaurant
Yobuko Morning Market Street※※

Ekimachi 1 Karatsu Station
Underlined text indicates newly added participating facilities.
Participating facilities may change.

(Reference)<JR Kyushu’s shareholder benefit program after enhancement>

Discount details

Long-termshareholder
benefitIssuance standards

Railway shareholder discount coupons (Note)
50% discount on one-way fares 100 shares to less than 500/ charges
shares
500 shares to less than 1,000
shares1,000 shares to less than
10,000 shares
10,000 shares to less than
20,000 shares-1 coupon per 100 shares

1 additional
coupon10 coupons + 1 coupon
for each 200 shares inexcess of 1,000 shares
55 coupons + 1 coupon
for each 300 shares inexcess of 10,000 shares
100 coupons

2 additional
coupons

20,000 shares or more
JR Kyushu jet ferry shareholder discount coupons
Fukuoka-Busanround-trip
1 coupon to each shareholder¥14,000
JR Kyushu Group shareholder discount coupons
Can be used like cash at 100 shares to less than 500
participating facilities
shares
500 shares to less than 1,000(¥500 × 5 coupons)
shares1,000 shares or more-5 coupons to eachshareholder

2 additional
coupons
4 additional
coupons(Note) Railway shareholder discount coupons
1. Discount details
50% discount on one-way fares/charges for one person for each railway shareholder discount coupon
2. Tickets eligible for discount• Fares: One-way ordinary ticket• Charges: Limited-express tickets, green car tickets (excluding private rooms), and reserved-seat tickets* One coupon can be used for a discount on either fare or charges or on both fare and charges.
* One coupon can be used for discount fares on multiple trains within the scope of a one-way trip.
3. Segments eligible for discounts
Routes operated by JR Kyushu
4. Locations where the coupons are accepted
JR Kyushu stations (except certain stations)However, the coupons cannot be used on trains, at settlement counters, or at stations other than JR Kyushu
stations.