(Translation)
Consolidated Financial Results
for the Nine-Month Period Ended December 31, 2020
(Japanese GAAP)
February 9, 2021
Company name:
Stock exchange listings:
Securities code:
URL:
Representative:
Contact:

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

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

February 12, 2021
－
Yes
None

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

1. Consolidated Financial Results for the Nine-Month Period Ended December 31, 2020
(From April 1, 2020 to December 31, 2020)(1) Consolidated operating results(Percentages show year-on-year changes.)

Operating revenue
Nine months ended
December 31, 2020
December 31, 2019

Millions of yen
202,405
319,669(Note) Comprehensive income:Operating income% Millions of yen(36.7)(18,601)
1.7
45,886% Millions of yen%(16,153)－－(8.6)
46,971 (10.7)

Net income per share— diluted

Yen(74.23)221.46Yen－－(2) Consolidated financial position
Total assets
Millions of yen
As of December 31,
908,560
2020
As of March 31,
828,590
2020(Reference) Shareholders’ equity:

Millions of yen%(11,662)－
35,332 (10.4)

Nine months ended December 31, 2020: ¥(13,547) million (－%)
Nine months ended December 31, 2019: ¥37,840 million [(8.5%)]

Net income per share— basic
Nine months ended
December 31, 2020
December 31, 2019

Net income attributable toowners of the parent

Ordinary income

Net assets
Millions of yen

Equity ratio%

397,41543.2

418,298

49.9

As of December 31, 2020: ¥392,493 million
As of March 31, 2020: ¥413,293 million

2. Dividends

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

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

Fiscalyear-end
Yen
46.50

Total
Yen
93.00

93.00

93.00

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

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

Full year

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

Operating revenue

Operating income

Ordinary income

Millions of%yen
291,700 (32.6)

Millions ofyen(32,300)

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

Notes(1) Changes in significant subsidiaries during the six months ended December 31, 2020 (changes in specified
subsidiaries affecting the scope of consolidation): No(2) Application of special accounting treatment in preparing the quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and restatement of revisions
i Changes in accounting policies with revision of accounting standards: No
ii Changes in accounting policies other than the above: No
iii Changes in accounting estimates: No
iv Restatement of revisions: No(4) Number of shares outstanding (common stock)i

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

As of December
31, 2020

157,301,600 As of March 31,
shares 2020

157,301,600
shares

As of December
31, 2020
As of December
31, 2020

184,600
shares157,116,500
shares186,100
shares159,546,722
shares

As of March 31,
2020
As of December
31, 2019

Note: The number of shares of treasury stock at the end of the period includes the number of shares of the Company’s stock held by the Board
Benefit Trust (BBT) (Third quarter of FY2021/3, 184,600 shares; FY2020/3, 186,100 shares). In addition, the number of shares of theCompany’s stock held by the Board Benefit Trust (BBT) is included in the treasury stock that is subtracted in the calculation of theaverage number of shares during the period (Third quarter of FY2021/3, 185,100 shares; Third quarter of FY2020/3, 103,389 shares).

* This summary of consolidated financial results is not subject to quarterly reviews by certified public accountants or
corporate auditors.
* Explanation of Appropriate Uses of Performance Forecasts and Other Important Items
Performance forecasts and other forward-looking statements appearing in this document are based on currently
available information and specific assumptions deemed rational, and are not assurances that the Company willachieve these forecasts. Actual performance can vary greatly depending on various factors such as fluctuations ininterest rates, fluctuations in share prices, changes in exchange rates, fluctuations in the value of assets, changes inthe economic and financial environment, changes in the conditions of competition, occurrences of large-scale andother disasters, and changes in regulations.
Supplementary quarterly materials are attached to this summary of consolidated financial results.

Contents of Accompanying Materials
1. Qualitative Information on Quarterly Consolidated Financial Performance ....................... 2(1) Qualitative Information on Consolidated Operating Results .................................................. 2(2) Qualitative Information on Consolidated Financial Position .................................................. 7(3) Qualitative Information on Consolidated Performance Outlook ............................................ 7
2. Quarterly Consolidated Financial Statements and Major Notes ............................................ 8(1) Consolidated Balance Sheets .................................................................................................. 8(2) Consolidated Statements of Income and Comprehensive Income .......................................... 10
Quarterly Consolidated Income Statements
Consolidated Cumulative Third Quarter ........................................................................... 10
Quarterly Consolidated Comprehensive Income Statements
Consolidated Cumulative Third Quarter ......................................................................... 11(3) Notes to Quarterly Consolidated Financial Statements........................................................... 12(Notes on Going Concern Assumption) .................................................................................. 12(Notes on Significant Changes in the Value of Shareholders’ Equity).................................... 12(Additional Information) ......................................................................................................... 12(Segment Information) ............................................................................................................ 13(Significant Subsequent Events) ............................................................................................. 13○(Financial results presentation materials)
Financial Results for the Third Quarter of FY21.3 (Cumulative total for the nine-month period from April to December)- 1 -1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Qualitative Information on Consolidated Operating Results
In the nine-month period ended December 31, 2020, Japan’s economy faced downward
pressure on business conditions due to the influence of the COVID-19 infection in Japan andoverseas. After the government lifted the state of emergency in May 2020, economic activity
gradually began to restart. In this setting, consumer spending has shown signs of improvement.
However, the outlook for the resolution of the COVID-19 crisis is unclear, and in thisenvironment the timing, extent, etc., of a recovery in economic activity remain highly
uncertain. Challenging conditions are expected to continue for the time being.
Looking at the Group’s results, due to spread of the COVID-19 infection, the railway and otherbusinesses were affected by declining mobility demand, sluggish consumer spending, etc. In
these conditions, we steadily invested in railway safety in accordance with our recognition that
our most important mission is safety in the railway business, which is our mainstay business.
In addition, as part of our implementation of strategic city-building initiatives in the regions
around our bases, we opened Amu Plaza Miyazaki in November 2020, and we advanced
preparations for the opening of the Kumamoto station building in spring 2021. On the other
hand, the future course of trends in the management environment is unclear, and in preparation
for changes in the management environment, we took necessary countermeasures, such as
implementing aggressive, accelerated fund-raising; taking steps to reduce costs, including
temporary leave for employees; and reevaluating investment plans.
As a result, operating revenue was down 36.7% year on year, to ¥202,405 million; operating
loss was ¥18,601 million (compared with operating income of ¥45,886 million in the same
period of the previous fiscal year); EBITDA was down 97.3% year on year, to ¥1,728 million;
ordinary loss was ¥16,153 million (compared with ordinary income of ¥46,971 million in thesame period of the previous fiscal year); and net loss attributable to owners of the parent was¥11,662 million (compared with net income attributable to owners of the parent of ¥35,332
million in the same period of the previous fiscal year).
(Note) EBITDA for the consolidated period under review is the numerical value of operating
income plus the cost of depreciation (excluding the cost of depreciation related to leaseassets held for the purpose of subleasing).

- 2 -The Group's business performance by segment is as follows.
(Millions of Yen)
Operating revenue
FY2021/3,
consolidated
cumulative
third quarter(nine months
ended
December 31,
2020)

Operating income
FY2021/3,
consolidated
cumulative
third quarter(nine months
ended
December 31,
2020)

YoY

Transportation

70,297 (65,637) (48.3％)

Construction

58,2982,646

49,073 (13,394) (21.4％)

Real estate
lease

36,400Real
sale

Real Estate andHotelsestateHotel
Retail andRestaurant

YoY(24,844) (50,671)

1.8％

EBITDA (Note 2)
FY2021/3,
consolidated
cumulative
third quarter(nine months
ended
December 31,
2020)
―

YoY

(16,569) (49,225)

―

40.3％

3,407

5,424

(9,631) (64.0％)

14,528(8,880) (37.9％)(5,057) (12.2％)

8,806(4,539) (34.0％)

16,128(4,076) (20.2％)

7,301(499) (6.4％)

99(369) (78.8％)

108(378) (77.7％)

5,371(7,836) (59.3％)(3,481)(4,722)―(1,708)(4,426)―

41,194 (38,532) (48.3％)(1,978)(4,415)―(935)(4,587)―(502) (36.2％)

2,268

1,009

Other

44,311

Total

263,174 (124,912) (32.2％)

Adjustment(Note 1)

(60,769)886(8,358) (15.9％)

7,648

759

686

25.2％

(642) (22.1％)―

2,699 (62,649) (95.9％)

(25)

―

(970)

(18,601) (64,487)―

1,728 (62,714) (97.3％)(17,864) (64,461)

―

(736)

(65)

―

Amount on the
consolidated
financial

202,405 (117,264) (36.7％)

statements(Notes) 1. Adjustments reflect the elimination of intersegment transactions.
2. Consolidated EBITDA = operating income + depreciation (after elimination of intersegment
transactions, excluding depreciation of leased assets held for subleasing purposes), segment EBITDA =segment operating income + segment depreciation (after elimination of intersegment transactions,excluding depreciation of leased assets held for subleasing purposes)

a. Transportation GroupIn the railway business, we worked to secure safety and implemented measures to prevent the
spread of COVID-19. On that basis, we worked to secure revenues and advanced measures tocontrol investment and reduce costs.
In terms of safety initiatives, we steadily implemented safety investment, such as updating
rolling stock and replacing aging facilities. In addition, from April 2020, we installed train
inspection support systems and train track monitoring equipment on certain trains used to carrypassengers. We commenced initiatives to increase efficiency of inspection operations, enhanceequipment quality, and increase safety for employees.
- 3 -In regard to services, with consideration for prevention of the COVID-19 infection, we worked
to facilitate comfortable usage by understanding the attitudes of customers and aggressively
taking action. In addition, on trains we expanded the introduction of the “JR-KYUSHU FREE
Wi-Fi,” a free, public wireless LAN service. Also, we posted notices regarding the Help Marksystem on priority seating. In these ways, we worked to provide diverse, customer-focusedservices.
In marketing, from May 2020, on the Kōrimoto―Kiire segment of the Ibusuki Makurazaki
Line, we introduced the Smart Support Station system. In addition, we rolled out a project
under the title “Until the day the state of emergency is lifted, let’s stay strong together.”Through this project, we worked with a commitment to supporting the resolution of COVID19 and took steps to promote the vitality of Kyushu. Furthermore, we worked to expand usageof Internet train reservation services, such as through sales of Minna no Kyushu Kippu, aproduct available only through the Internet. Moreover, we implemented such measures as a
campaign to promote registration and use of the JR KYUPO app. We also worked to increasecustomer convenience and took steps to encourage customers to patronize multiple Groupbusinesses, including the railway business and other businesses. In October 2020, we started
operation of a new D&S train, the "36+3."
In transportation, while implementing infection prevention measures at stations and on trains,
we worked to maintain the transportation network, which is social infrastructure. On the other
hand, with consideration for the decline in mobility demand, we reduced the number of trains
operated. As one part of measures to increase operational efficiency while securing safety,
from December 2020 we commenced verification testing of self-driving train operational
equipment on the Kashii Line. Furthermore, the heavy rains in July 2020, which occurred inJuly 2020, caused damage to railway facilities on the Kyudai Main Line and the Hisatsu Line,and we provided substitute forms of transportation on certain sections. Also, due to the impactsof heavy rain that occurred in northern Kyushu in July 2017, we implemented substitute formsof transportation between Soeda Station and Yoake Station on the Hitahikosan Line. For thisline, we have reached agreement with related local governments about the restoration ofservice through the introduction of a bus rapid transit (BRT) system, and we are moving ahead
with preparations for the restoration of service. With regard to the segment between Higo-Ozu
Station and Aso Station on the Houhi Main Line, which was impassable due to the impacts ofthe 2016 Kumamoto earthquakes, we completed restoration work and resumed service on theentire route in August 8, 2020.
In our passenger ship business, as a part of protection measures at ports and airports in order toprevent the spread of the COVID-19 infection, we received an order from the Japanese
government to halt passenger transportation, and regular service has been suspended on allroutes since March 9, 2020. On the other hand, as special domestic routes we offered service toTsushima in August and to Hirado and Yobuko in September.
In our bus business, through measures to prevent the spread of infection, we worked to create
an environment in which customers can use bus services with peace of mind, and at the sametime we halted or reduced service in line with usage conditions.
In the field of new mobility services (MaaS), we advanced initiatives targeting theestablishment of a sustainable public transportation network, centered on collaboration with- 4 -

DAIICHI KOUTSU SANGYO Co., Ltd., and Nishi-Nippon Railroad Co., Ltd. At Moji
Station and Mojikō Station on the Kagoshima Main Line, we worked to improve connections
between buses and trains. Our model for these initiatives was our collaboration with Nishitetsu
Bus at Shimosone Station on the Nippo Main Line, which began in March 2020. In these types
of ways, we worked to increase the convenience of public transportation. Moreover, inNovember 2020 we commenced MaaS verification testing operations in Miyazaki Prefecture,
which were selected by the Ministry of Land, Infrastructure, Transport and Tourism as a 2020
Japan-style MaaS promotion/support enterprise. Through this verification testing, we areadvancing measures aimed at supporting the realization of seamless transportation services
through collaboration among multiple transportation modes; promoting visits throughcooperation among tourism facilities and commercial facilities, such as Amu Plaza Miyazaki;
and enhancing the central urban district's suitability for excursions.
Despite the above efforts, due to the influence of COVID-19, revenues declined significantlyin the railway, passenger ship, and bus businesses, and the Transportation Group recorded
operating revenue of ¥70,297 million, down 48.3% year on year; an operating loss of ¥24,844
million (compared with operating income of ¥25,826 million in the same period of theprevious fiscal year); and negative EBITDA of ¥16,569 million (compared with EBITDA of¥32,655 million in the same period of the previous fiscal year).

b. Construction GroupIn the construction business, work orders have been received for the construction of elevatedtracks and Shinkansen-related, condominium-related, and other projects, with construction
being steadily executed. Cost reductions were also pursued.
As a result, the Construction Group posted operating revenue of ¥58,298 million, up 1.8% year
on year; operating income of ¥2,646 million, up 40.3% year on year; and EBITDA of ¥3,407
million, an increase of 25.2% year on year.

c. Real Estate and Hotels GroupIn the real estate business, we worked to create an environment in which customers can use
services with peace of mind, and we advanced preparations for new openings. In November
2020, we opened Amu Plaza Miyazaki. In addition, from May 2020, we started accepting
tenants at RJR Precia Tenjin South, a rental apartment facility. However, revenues were lower
as a result of the influence of measures implemented due to the spread of the COVID-19
infection, such as station building closures and operating hour reductions, as well as rent
reductions to support tenants that operate stores.
In the real estate sale business, while temporarily closing model rooms and instituting infection
prevention measures, we recorded sales from “MJR Chihaya Branchera,” “MJR the Garden
Kagoshima-Chuo,” and other condominium buildings, and we sought to promote sales of“MJR Sakaisuji Hommachi Tower,” “MJR the Garden Shimoori,” etc.
In the hotel business, due to the influence of COVID-19, we closed 8 of the 16 facilities inJapan. After reopening, we utilized the tourism support measures of the national government
and local governments, created a plan for teleworking, etc. In these ways, we worked to- 5 -capture limited demand. However, due to self-restraint in mobility, the cancellation of events,
lower inbound demand, etc., revenues recorded a significant decline.
As a result, the Real Estate and Hotels Group posted operating revenue of ¥49,073 million,
down 21.4% year on year; operating income of ¥5,424 million, down 64.0% year on year; andEBITDA of ¥14,528 million, down 37.9% year on year.

d. Retail and Restaurant GroupIn our retail business, we moved forward with the opening of new convenience stores. In
addition, we focused on taking steps to limit the decline in demand, such as renovating the
Oita Souvenir Shop and establishing a premium corner. In May 2020, we transferred to
TSURUHA Holdings, Inc. a portion of our holdings of the shares of JR Kyushu Drug
Eleven Inc. Accompanying this transfer, from the end of the first quarter of the fiscal year
ending March 31, 2021, JR Kyushu Drug Eleven Inc. has been excluded from the scopeof consolidation and included in the scope of application of the equity-method.
In the restaurant business, we advanced new openings, such as the opening in July of
Meinohama Marché at the Fukuoka City Subway’s Meinohama Station, as well as the openingin September of a premium bread shop and a restaurant that is a collaborative venture between
a pizza restaurant and a chicken specialty restaurant. In November, a restaurant specializing in
beef tongue was opened at Amu Plaza Miyazaki. On the other hand, we took steps to further
increase management efficiency, such as closing unprofitable restaurants.
Nonetheless, due to the influence of COVID-19, revenues at station stores and existing
restaurants declined substantially. As a result of this significant decline in revenues, the Retailand Restaurant Group recorded operating revenue of ¥41,194 million, down 48.3% year on
year; an operating loss of ¥1,978 million (compared with operating income of ¥2,437 million
in the same period of the previous fiscal year); and negative EBITDA of ¥935 million(compared with EBITDA of ¥3,651 million in the same period of the previous fiscal year).

e. Other Groups
For the construction machinery sales and rental business, we worked to secure earnings
through aggressive sales activities.
Other Groups posted operating revenue of ¥44,311 million, down 15.9% year on year;
operating income of ¥886 million, down 36.2% year on year; and EBITDA of ¥2,268 million,
down 22.1% year on year.
(Note) EBITDA for the consolidated period under review is the numerical value of operating
income plus the cost of depreciation (excluding the cost of depreciation related to leaseassets held for the purpose of subleasing).

- 6 -(2) Qualitative Information on Consolidated Financial Position
Total assets as of December 31, 2020, increased 9.7% compared with the previous fiscal yearend, to ¥908,560 million. Current assets increased 34.2%, to ¥216,457 million, due to anincrease in securities and other factors. Non-current assets increased 3.7%, to ¥692,103
million, due principally to the acquisition of property, plant and equipment, etc.
Meanwhile, total liabilities increased 24.6% compared with the previous fiscal year-end, to¥511,145 million. Current liabilities fell 20.6%, to ¥159,034 million, due to payment of
payables. Non-current liabilities were up 67.6%, to ¥352,111 million, as a result of the issuanceof bonds and an increase in long-term debt and other factors.
Furthermore, total equity decreased 5.0% compared with the previous fiscal year-end, to¥397,415 million, due primarily to a decrease in retained earnings resulting from the recordingof a net loss attributable to owners of the parent and the payment of dividends, etc.
(3) Qualitative Information on Consolidated Performance Outlook
In regard to the full-year performance forecasts for FY2021.3, there are no changes to theannouncement made on November 4, 2020.
Moreover, the performance outlook was prepared based on information available as of therelease date of these materials, and there are cases where actual performance differs fromoutlook figures due to various factors that arise going forward.

- 7 -2. Quarterly Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(Millions of Yen)
FY 2020/3(As of March 31, 2020)
ASSETS
Current assets
Cash and time deposits
Notes and accounts receivable–trade
Fares receivable
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and fixtures (net)
Machinery, rolling stock and vehicles (net)Land
Lease assets (net)
Construction in progress
Other (net)Net property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Net defined benefit assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets- 8 -FY 2021/3, Third Quarter(As of December 31, 2020)

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

57,10734,6591,672
42,967
9,958
36,858
9,751
23,574(90)
216,457

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

285,662
34,575
151,994
18,842
43,228
8,259
542,562
4,142

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

41,80053,319824
50,257(804)
145,398
692,103
908,560

(Millions of Yen)
FY 2020/3(As of March 31, 2020)
LIABILITIES AND EQUITYCurrent liabilities
Notes and accounts payable–trade
Short-term loans
Current portion of long-term debt
PayablesAccrued income taxes
Fare deposits received with regard to railway
connecting services
Railway fares received in advanceAccrued bonuses
Other
Total current liabilities
Non-current liabilities
Corporate bonds
Long-term debt
Allowance for safety and environmental measures
Allowance for disaster-damage losses
Liability for retirement benefits
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
EQUITY
Shareholders’ equity
Common stock
Capital surplus
Retained earnings (Deficit)
Treasury stock
Total common stock
Accumulated other comprehensive income
Unrealized gain on available-for-sale securities
Gain (loss) on deferred hedges
Foreign currency translation adjustments
Defined retirement benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total equity
TOTAL LIABILITIES AND EQUITY- 9 -FY 2021/3, Third Quarter(As of December 31, 2020)

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

19,534
9,830
22,17142,975
760

1,175

1,199

4,720
8,922
44,467200,248

4,510
2,756
55,294
159,034

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

80,000157,899
1,602
5,564
51,3291,322
54,392352,111
511,145

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

16,000224,021
157,292(594)
396,719

4,422
15
158
(7,057)(2,461)
5,004
418,298
828,590

1,971
－
110
(6,309)(4,226)
4,921
397,415
908,560

(2) Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Income Statements
Consolidated Cumulative Third Quarter(Millions of Yen)
FY 2020/3, Third Quarter(Nine months ended December
31, 2019)
OPERATING REVENUEOPERATING EXPENSE
Transportation, other services and cost of sales
Selling, general and administrative expense
Total operating expense
OPERATING INCOME (LOSS)NON-OPERATING INCOME
Interest income
Dividend income
Gain on assets held in trust
Subsidies for employment adjustment
Other
Total non-operating income
NON-OPERATING EXPENSEInterest expense
Other
Total non-operating expense
ORDINARY INCOME (LOSS)EXTRAORDINARY GAINS
Construction grants received
Gain on sales of shares of subsidiaries and associates
Gain on sales of trusts
Other
Total extraordinary gains
EXTRAORDINARY LOSSES
Losses from provision for cost reduction of fixed
assetsProvision for loss on disaster
Disaster-damage losses
Other
Total extraordinary losses
INCOME (LOSS) BEFORE INCOME TAXESINCOME TAXES
Current
Deferred
Total income taxes
NET INCOME (LOSS)NET INCOME (LOSS) ATTRIBUTABLE TONON-CONTROLLING INTERESTSNET INCOME (LOSS) ATTRIBUTABLE TOOWNERS OF THE PARENT- 10 -FY 2021/3, Third Quarter(Nine months ended December
31, 2020)

319,669

202,405

192,390
81,392
273,783
45,886

152,553
68,453221,006(18,601)

50
440
1,003
705
2,199

59
608
1,379
1,498
552
4,099

939
175
1,114
46,971

1,306
344
1,651
(16,153)

1,943
764
574
174
3,457

997
9,144
620
10,762

1,915

954

1,071
317
289
3,593
46,835

5,194
585
1,521
8,254
(13,646)

6,156
5,161
11,31835,517765(2,668)(1,902)(11,743)

184

(81)

35,332(11,662)

Quarterly Consolidated Comprehensive Income Statements
Consolidated Cumulative Third Quarter(Millions of Yen)
FY 2020/3, Third Quarter(Nine months ended December
31, 2019)
NET INCOME (LOSS)OTHER COMPREHENSIVE INCOME
Unrealized gain on available-for-sale securities
Gain (loss) on deferred hedges
Foreign currency translation adjustments
Defined retirement benefit plans
Total other comprehensive income
COMPREHENSIVE INCOME
TOTAL COMPREHENSIVE INCOME
ATTRIBUTABLE TO:
Owners of the parent
Non-controlling interests- 11 -FY 2021/3, Third Quarter(Nine months ended December
31, 2020)

35,517(11,743)

1,751
(113)
28
656
2,323
37,840(2,458)
(15)
(72)
742
(1,803)(13,547)

37,650189(13,436)(111)

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
None(Notes on Significant Changes in the Value of Shareholders’ Equity)
None(Additional Information)(Restoration of the Hitahikosan Line)Due to the influence of the heavy rains in northern Kyushu in July 2017, we are implementing substituteforms of transportation on the Soeda-Yoake segment of the Hitahikosan Line. At the sixth meeting
regarding the restoration of the Hitahikosan Line, which was held on July 16, it was decided that service
on the line would be restored and an agreement was reached on the method of restoration.
Accordingly, in the consolidated cumulative third quarter, expenses related to removal and repair ofrailway facilities and were rationally estimated, and provision for loss on disaster of ¥2,153 million anddisaster-damage losses of ¥28 million were recorded under extraordinary losses in the quarterly
consolidated income statements.
(Accounting estimates related to the influence of the spread of the COVID-19 infection)
With consideration for the most recent circumstances, the Company has made changes to assumptions,
including the timing of the resolution of the COVID-19 situation, that were included in the Annual
Securities Report (Yuho) for the previous fiscal year under “Additional information, Accounting
estimates related to the influence of the spread of the COVID-19 infection.” The Company’s approachafter the changes is as follows.
In regard to the influence of COVID-19 in FY2021.3, with consideration for revenue trends following
the lifting of the state of emergency, and based on information available at this point, the Company
assumes that there will be a certain degree of recovery by the end of the fiscal year, but that the influenceof COVID-19 will continue for a certain period of time in the next fiscal year. The Company has madeaccounting estimates for fixed-asset impairment accounting, recoverability of deferred tax assets, etc.
The effect of these changes on the quarterly consolidated financial statements is insignificant.
(Occurrence of damage due to heavy rains in July 2020)
Due to the influence of the heavy rains in July 2020, which occurred throughout Kyushu in July 2020,
damage occurred on multiple routes, including the Kyudai Main Line and the Hisatsu Line. This damage
included bridges being washed away and damage to tracks. Among the recovery expenses, etc., resulting
from this damage, in regard to recovery expenses, etc., that can be reasonably estimated at this point,
extraordinary losses were recorded in the quarterly consolidated income statements for the consolidated
cumulative third quarter. Recovery expenses, etc., for the consolidated cumulative third quarter wererecorded as “disaster-damage losses” and a reasonable estimate of the amount of recovery expenses, etc.,
anticipated in the consolidated cumulative fourth quarter and thereafter was recorded as “provision forloss on disaster.”
In regard to the Hisatsu Line, expenses could occur, but expenses, etc., that are difficult to reasonably
estimate are not included in “provision for loss on disaster.”- 12 -

(Segment Information)
FY 2020/3, Third Quarter (Nine-Month Period Ended December 31, 2019)
Information Related to Operating Revenue and Income by Segment(Millions of Yen)
Others(Note 1)

Reportable Segment

Transportation Construction

Real Estateand Hotels

Total

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

Operating Revenue

130,348

23,044

59,16779,492 27,616

319,669－

319,669

Inside Group

5,587

34,2433,300

233 25,053

68,417(68,417)－

Total

135,935

57,28862,46779,726 52,669

388,087(68,417)319,669

Segment income

25,826

1,886

15,0562,437

46,597(710)

45,886

Outside Customers

1,389(Notes) 1.“Others” represents categories of business that are not included in reportable segments and includes
the construction machinery sales and rental business, etc.
2. The ¥710 million deduction from segment income reflects the elimination of intersegment transactions.
3. Segment income has been adjusted for the operating income figure on the quarterly consolidated
income statements.

FY 2021/3, Third Quarter (Nine-Month Period Ended December 31, 2020)
1. Information Related to Operating Revenue and Income (Loss) by Segment(Millions of Yen)
Others(Note 1)

Reportable Segment

Transportation Construction

Real Estateand Hotels

Total

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

Operating Revenue
Outside Customers

65,34925,07046,488Inside Group

4,948

33,227

2,585

Total

70,29758,298Segment income (loss)(24,844)2,646

41,074 24,422 202,405－

202,405

60,769(60,769)－

49,073

41,194 44,311 263,174(60,769)

202,405

5,424(1,978)886 (17,864)(736)(18,601)

119 19,888(Notes) 1. “Others” represents categories of business that are not included in reportable segments and includes theconstruction machinery sales and rental business, etc.
2. The ¥736 million deduction from segment income (loss) reflects the elimination of intersegment
transactions.
3. Segment income (loss) has been adjusted for the operating income figure on the quarterly consolidated
income statements.

2 Information related to assets for each reportable segment(Significant decrease in assets due to decline in the number of subsidiaries)
Due to the exclusion from the scope of consolidation of JR Kyushu Drug Eleven, in comparison withthe previous fiscal year, assets in the Retail and Restaurant segment were down ¥16,167 million.
(Significant Subsequent Events)
None- 13 -