(Translation)
Consolidated Financial Results
for the Year Ended March 31, 2021
(Japanese GAAP)May 12, 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 of Ordinary General Meeting of Shareholders
Scheduled date of dividend payment commencement:
Scheduled date of release of annual securities report
Preparation of supplementary explanations for financial results:
Holding of a briefing on financial results:

June 23, 2021
June 24, 2021
June 23, 2021
Yes
Yes

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

1. Consolidated Financial Results for the Year Ended March 31, 2021
(From April 1, 2020 to March 31, 2021)(1) Consolidated operating results(Percentages show year-on-year changes.)
Net income attributable toOrdinary income
owners of the parent

Operating revenues

Operating income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

293,914(32.1)(22,873)－(19,323)－(18,984)－

432,644(1.8)

49,406 (22.7)

50,613 (23.9)

31,495(36.0)

Year ended March 31,
2021
Year ended March 31,
2020

As of March 31, 2021: ¥ (15,423) million [(－%)]
As of March 31, 2020: ¥25,200 million [(51.6 %)](Note) Comprehensive income:Net income pershare — basic

Net income pershare — diluted

Return on equity

Yen

Yen

%

%

%

(120.83)

－

(4.7)

(2.3)

(7.8)

198.16

－

7.6

6.2

11.4

Year ended March 31,
2021
Year ended March 31,
2020(Reference) Equity in net income (losses) of affiliated companies:(2) Consolidated financial position
Total assets
As of March 31, 2021
As of March 31, 2020
(Reference) Shareholders’ equity:

Millions of yen
891,379
828,590

Ordinary income Operating income to
to total assets
operating revenues

As of March 31, 2021: ¥ (83) million
As of March 31, 2020: ¥29 million

Net assets

Equity ratio

Millions of yen
395,408
418,298

Net assets per share
%
43.8
49.9

As of March 31, 2021: ¥390,189 million
As of March 31, 2020: ¥413,293 million

Yen2,483.43
2,630.51

(3) Consolidated cash flows

Millions of yen

Net cash provided by(used in) investing
activities
Millions of yen(10,361)
60,468Net cash provided byoperating activities
Year ended March 31,
2021
Year ended March 31,
2020

Net cash used infinancing activities

Cash and cash
equivalents, end of year

Millions of yen

Millions of yen(53,912)

105,870

65,019(76,943)

3,369

23,817

2. Dividends
Total dividends Payout ratio(Fiscal)(Consolidated)

Annual dividendsFirstquarterend
Yen

Secondquarterend
Yen

－

46.50

－

－

0.00

－

0.00

Year ended March 31,
2020
Year ended March 31,
2021
Year ended March 31,
2022 (Forecast)

Third
Fiscalquarter- year-end
end
Yen
Yen

Dividends to net
assets ratio(Consolidated)

Total
Yen

Millions of yen

%

%

46.50

93.00

14,754

46.9

3.6

－

93.00

93.00

14,629

－

3.6

－

93.00

93.00

113.3

3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

Operating revenues Operating income

Full year

Millions ofyen
344,200%
17.1

Millions ofyen
10,600%－(Percentages show year-on-year changes.)
Net income
Net income per
Ordinary income attributable to owners
share — basicof the parent
Millions ofMillions of
%
%
Yen
yen
yen
10,600－12,900－82.10

Notes(1) Changes in significant subsidiaries during the year ended March 31, 2021 (changes in specified
subsidiaries affecting the scope of consolidation): No(2) 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:Noiii Changes in accounting estimates:No
iv Restatement of revisions:No(3) Number of shares outstanding (common stock)i Number of shares issued andAs of March
outstanding at end of period
31, 2021(including treasury stock)ii Number of shares of treasury stock at As of Marchend of period
31, 2021
iii Average number of shares during the As of March
period31, 2021

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

157,301,600
shares184,600
shares157,116,625
shares186,100
shares158,938,917
shares

As of March
31, 2020
As of March
31, 2020

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) (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
the average number of shares during the period (FY2021/3, 184,975 shares; FY2020/3, 124,067 shares).

(Reference)
1. Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2021
(April 1, 2020–March 31, 2021)(1) Non-consolidated operating results(Percentages show year-on-year changes.)
Operating revenues
Operating income
Ordinary income
Net income
Millions of yen
Year ended March
31, 2021
Year ended March
31, 2020% Millions of yen

144,727 (32.7)
214,892(3.2)% Millions of yen(20,591)－

34,398(24.8)% Millions of yen%－(11,145)－

40,584 (24.5)

28,698(35.2)

Equity ratio

Net assets per share(10,853)

Net income per share Net income per share— basic— diluted
Year ended March
31, 2021
Year ended March
31, 2020

Yen

Yen(70.94)－180.56－(2) Non-consolidated financial position

As of March 31, 2021
As of March 31, 2020
(Reference) Shareholders’ equity:

Total assets

Net assets

Millions of yen
752,051
665,419

Millions of yen
338,040
354,291

%
44.9
53.2

Yen
2,151.52
2,254.97

As of March 31, 2021: ¥338,040 million
As of March 31, 2020: ¥354,291 million

2. Non-Consolidated Forecasts for the Fiscal Year Ending March 2022 (April 1, 2021–March 31, 2022)(Percentages show year-on-year changes.)

Operating revenues Operating income Ordinary income

Full year

Millions ofyen
177,200%
22.4

Millions of
yen
3,500

Millions of
yen
4,600
－

%

%
－

Net income pershare — basic

Net income
Millions ofyen
10,100

%

Yen

－

64.28

* This summary of financial results is not subject to audits by certified public accountants or accounting
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 theCompany will achieve these forecasts. Actual performance can vary greatly depending on various factors suchas fluctuations in interest rates, fluctuations in share prices, changes in exchange rates, fluctuations in thevalue of assets, changes in the economic and financial environment, changes in the conditions of competition,
occurrences of large-scale and other disasters, and changes in regulations.
Supplementary materials have been attached to this summary of financial results.
A financial results briefing for securities analysts is scheduled to be held on May 13, 2021 (Thursday). The
presentation materials used for this briefing will be posted on the Company’s website promptly after theconclusion of this briefing.

Contents of Accompanying Materials
1. Qualitative Information on Consolidated Financial Performance ................................................... 2(1) Qualitative Information on Consolidated Operating Results .................................................... 2(2) Qualitative Information on Consolidated Financial Position .................................................... 9(3) Dividend Policies, Dividends in the Fiscal Year Ended March 31, 2021, and Forecast for
Dividends in the Fiscal Year Ending March 31, 2022............................................................... 9
2. Basic Policies Regarding the Selection of Accounting Standards ................................................. 10
3. Consolidated Financial Statements and Major Notes .....................................................................11(1) Consolidated Balance Sheets ...................................................................................................11(2) Consolidated Statements of Income and Comprehensive Income .......................................... 13
Consolidated Income Statements ............................................................................................ 13
Consolidated Comprehensive Income Statements .................................................................. 14(3) Consolidated Statements of Changes in Net Assets ................................................................ 15(4) Consolidated Statements of Cash Flows ................................................................................. 17(5) Notes to Consolidated Financial Statements ........................................................................... 19(Notes on Going Concern Assumption) .................................................................................. 19(Additional Information) ......................................................................................................... 19(Segment Information, etc.) .................................................................................................... 19(Per Share Information)........................................................................................................... 23(Significant Subsequent Events) ............................................................................................. 23
4. Non-Consolidated Financial Statements ....................................................................................... 24(1) Non-Consolidated Balance Sheets .......................................................................................... 24(2) Non-Consolidated Statements of Income ................................................................................ 26(3) Non-Consolidated Statements of Changes in Net Assets ........................................................ 28(Explanatory Materials) Financial results for the fiscal year ended March 31, 2021－

1 －

1. Qualitative Information on Consolidated Financial Performance(1) Qualitative Information on Consolidated Operating Results[1] Overview of the fiscal year ended March 31, 2021
In the fiscal year ended March 31, 2021, Japan’s economy faced downward pressure on businessconditions due to the influence of the COVID-19 infection in Japan and overseas. After thegovernment lifted the state of emergency in May 2020, economic activity gradually began torestart. In this setting, consumer spending has shown signs of improvement. However, theinfection began to spread once again from mid-January 2021. As a result, a state of emergency
was declared in 11 prefectures. 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 aroundour bases, we opened Amu Plaza Miyazaki in November 2020, and we advanced preparations
for the opening of the Kumamoto Station Building in April 2021. In addition, we implemented
initiatives to support “Local Community Invigoration.” To that end, we rolled out a project
under the title “Until the day the state of emergency is lifted, let’s stay strong together.” Throughthis project, we worked with a commitment to supporting the resolution of COVID-19 and took
steps to promote the invigoration of Kyushu. Also, in March 2021, we marked the 10th
anniversary of the full opening of the Kyushu Shinkansen. With gratitude for the people whohave supported JR Kyushu up to this point, and hoping for a bright future, for one night we
operated the “Shooting Star Shinkansen,” which had spotlights shining into the sky. 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 for the fiscal year was down 32.1% year on year, to ¥293,914
million; operating loss was ¥22,873 million (compared with operating income of ¥49,406
million in the previous fiscal year); EBITDA was down 93.8% year on year, to ¥4,639 million;
ordinary loss was ¥19,323 million (compared with ordinary income of ¥50,613 million in theprevious fiscal year); and net loss attributable to owners of the parent was ¥18,984 million(compared with net income attributable to owners of the parent of ¥31,495 million in theprevious fiscal year).
(Note) EBITDA in the fiscal year ended March 31, 2021, is the numerical value of operating
income plus the cost of depreciation (excluding depreciation of leased assets held for subleasing
purposes).
Business performance by segment is as follows.

－2 －(Millions of Yen)
Operating revenues
FY 2021/3(April 1, 2020 –March 31, 2021)

Operating income

EBITDAFY 2021/3
YoY(April 1, 2020 –March 31, 2021)

FY 2021/3
YoY(April 1, 2020 –March 31, 2021)

YoY(37,629)(57,477)－(2.9%)

6,990

410

6.2%

80,127 (10,652) (11.7%)

9,913(9,224) (48.2%)

22,225 (8,369) (27.4%)

Real estate
lease

49,761(5,492)(9.9%)

12,072(4,721) (28.1%)

22,009 (4,122) (15.8%)

Real estate sale

23,560

4,638

24.5%

2,640

1,074

68.6%

2,652

Hotel

6,806

(9,798) (59.0%)(4,799)(5,577)51,488 (53,169) (50.8%)(2,575)(5,400)63,641(8,550) (11.8%)

1,751

387,075 (153,670) (28.4%)(21,548)(72,225)－

6,286 (70,381) (91.8%)－(1,325)(54)－(1,647)

293,914 (138,730) (32.1%)(22,873)(72,279)－

4,639 (70,451) (93.8%)

Transportation

95,294 (78,436) (45.1%)

Construction

96,523

Real Estate andHotelsRetail andRestaurant
Other
Total
Adjustment(93,161)(2,861)

14,940－(26,507) (56,071)
8,041

351

4.6%

1,076

68.3%

－

(2,437) (5,323)－－(1,180) (5,659)－(533) (23.3%)

3,707(632) (14.6%)

(70)

－

Amount on the
consolidated
financialstatementsa. 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.
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.
－

3 －In marketing, from May 2020, on the Kōrimoto―Kiire segment of the Ibusuki Makurazaki
Line, we introduced the Smart Support Station system. 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 equipmenton the Kashii Line. Furthermore, the heavy rains in July 2020, caused damage to railway
facilities on the Kyudai Main Line and the Hisatsu Line, and we provided substitute forms oftransportation on certain sections. On the Kyudai Main Line, recovery work was completed, andservice on the entire line was restarted on March 1, 2021. Also, due to the impacts of heavy rainthat occurred in northern Kyushu in July 2017, we implemented substitute forms oftransportation between Soeda Station and Yoake Station on the Hitahikosan Line. For this line,
we have reached agreement with related local governments about the restoration of service
through the introduction of a bus rapid transit (BRT) system, and we are moving ahead withpreparations 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 of the 2016
Kumamoto earthquakes, we completed restoration work and resumed service on the entire routeon August 8, 2020. In addition, in line with changes in customer usage conditions due to the
influence of the spread of the COVID-19 infection, on March 13, 2021, we implemented atimetable revision that reduced the number of trains operated, centered on Shinkansen andlimited-express trains on conventional lines.
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 a request from the Japanese
government to halt passenger transportation, and all service has been suspended on regularroutes since March 9, 2020. In addition, as an initiative to be implemented during the suspensionof service, from March 2021 we started domestic sightseeing operation of the “QUEENBEETLE,” a new-style hydrofoil ferry.
In our bus business, through measures to prevent the spread of infection, we worked to create anenvironment in which customers can use bus services with peace of mind, and at the same time
we halted or reduced service in line with usage conditions.
In the field of new mobility services (MaaS), we advanced initiatives targeting the establishmentof a sustainable public transportation network, centered on collaboration with DAIICHIKOUTSU SANGYO Co., Ltd., and Nishi-Nippon Railroad Co., Ltd. We took steps to improve
convenience. For example, at stations in Kitakyushu City, we worked to improve connections－

4 －between buses and trains, and the display of train departure times inside buses was expanded.
Our model for these initiatives was our collaboration with Nishitetsu Bus at Shimosone Stationon the Nippo Main Line, which began in March 2020. Moreover, in November 2020 wecommenced MaaS verification testing operations in Miyazaki Prefecture, which were selectedby the Ministry of Land, Infrastructure, Transport and Tourism as a 2020 Japan-style MaaS
promotion/support enterprise. Through this verification testing, we advanced measures aimed at
supporting the realization of seamless transportation services through collaboration among
multiple transportation modes, including buses, taxis, car sharing, and bicycle sharing; promoted
visits through cooperation among tourism facilities and commercial facilities, such as Amu
Plaza Miyazaki; and enhanced the central urban district's suitability for excursions.
Despite the above efforts, due to the influence of COVID-19, revenues declined significantly inthe railway, passenger ship, and bus businesses, and the Transportation Group recorded
operating revenue of ¥95,294 million, down 45.1% year on year; an operating loss of ¥37,629
million (compared with operating income of ¥19,848 million in the previous fiscal year); andnegative EBITDA of ¥26,507 million (compared with EBITDA of ¥29,563 million in theprevious fiscal year).
b. Construction GroupIn the construction business, we leveraged specialized skills in the railway business in order tocontribute to safe, stable railway operations through railway-related civil engineering, railroad
track, and construction work as well as through maintenance operations and rolling stock
equipment work. In railway construction, in a continuation from the previous fiscal year, weendeavored to steadily advance work related to the Nishi-Kyushu Shinkansen and to the
Hokuriku Shinkansen, as well as other work, which included work on the Kumamoto Station
area development, such as “Amu Plaza Kumamoto,” which opened in April 2021.
In addition, we endeavored to receive orders for the construction of elevated tracks, Shinkansenrelated work, condominium-related work, public agency work, and private-sector work, as wellas to reduce costs.
As a result, the Construction Group posted operating revenue of ¥96,523 million, down 2.9%
year on year; operating income of ¥6,990 million, up 6.2% year on year; and EBITDA of ¥8,041
million, an increase of 4.6% year on year.
c. Real Estate and Hotels GroupIn the real estate lease business, we worked to create an environment in which customers canuse services with peace of mind. In November 2020, we opened Amu Plaza Miyazaki. In
addition, we started accepting tenants at such rental apartment facilities as RJR Precia Tenjin
South, from May 2020, and RJR Precia Kumamotoekimae, from February 2021. 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－

5 －prevention measures, we recorded sales from “MJR Sakaisuji Honmachi Tower,” “MJR
Chihaya Branchera,” “MJR the Garden Kagoshima-Chuo,” and other condominium buildings,
and we sought to promote sales of “MJR the Garden Shimoori,” “MJR the Garden Kashii,” 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 andlocal governments, created a plan for teleworking, etc. In these ways, we worked to capture
limited demand. However, due to self-restraint in mobility, the cancellation of events, lower
inbound demand, etc., revenues recorded a significant decline.
As a result, the Real Estate and Hotels Group posted operating revenue of ¥80,127 million,
down 11.7% year on year; operating income of ¥9,913 million, down 48.2% year on year; andEBITDA of ¥22,225 million, down 27.4% year on year.
d. Retail and Restaurant GroupIn our retail business, we moved forward with convenience store opening and renovation
initiatives. In addition, we focused on taking steps to limit the decline in demand, such as theNovember 2020 opening of Tokyu Hands Miyazaki at Amu Plaza Miyazaki. 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 scope of
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 2020 of
Meinohama Marché at the Fukuoka City Subway’s Meinohama Station, as well as the openingin September 2020 of a premium bread shop and a restaurant that is a collaborative venture
between a pizza restaurant and a chicken specialty restaurant. In November 2020, a restaurant
specializing in beef tongue was opened at Amu Plaza Miyazaki. In addition, we started new
initiatives, such as the use of pop-up shops for platform stores at Hakata Station. 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 ¥51,488 million, down 50.8% year on year;
an operating loss of ¥2,575 million (compared with operating income of ¥2,825 million in theprevious fiscal year); and negative EBITDA of ¥1,180 million (compared with EBITDA of¥4,479 million in the previous fiscal year).

－6 －e. Other Groups
For the construction machinery sales and rental business, we worked to secure earnings throughaggressive sales activities.
Nonetheless, COVID-19 had an effect, and Other Groups posted operating revenue of ¥63,641
million, down 11.8% year on year; operating income of ¥1,751 million, down 23.3% year on
year; and EBITDA of ¥3,707 million, down 14.6% year on year.
(Note) Segment EBITDA is the numerical value (excluding depreciation of leased assets held
for subleasing purposes and before elimination of transactions between segments) of operating
income for each segment plus the cost of depreciation.

[2] Forecasts for the Next Fiscal Year Ending March 31, 2022
It is not possible to forecast the timing of the resolution of the COVID-19 situation. For the Group,
railway operations and other businesses are affected by a decline in mobility demand and sluggish
consumer spending. In FY2022/3, we expect the management environment to remain challenging.
In this setting, while making necessary corrections, we will continue to advance three priority
initiatives — Further strengthen our management foundation, Further strengthen our earnings powerin key businesses, and Growth and evolution in new areas — which are included in the “JR Kyushu
Group Medium-Term Business Plan 2019–2021: Toward the Next Growth Stage.” We will also
continue to implement initiatives in the areas that are the foundation of all of our businesses: ESG,
safety and service, and development of human resources.
The railway business is significantly influenced by the decline in mobility demand. However, withconsideration for infection countermeasures, safety and service will remain our foundation, and wewill accelerate reforms of the cost structure, which has high fixed costs. In addition, we will also
implement measures to secure earnings, such as the commercialization of Shinkansen cargotransport, the generation of mobility demand through collaboration with development projects inareas surrounding stations, etc. We will also steadily advance preparations for the opening of the
Nishi-Kyushu Shinkansen, which is scheduled to open in fall 2022.
In the real estate business, we will work to increase city value based on stations, such as the openingof the Kumamoto Station building. In addition, we will also advance initiatives in new fields, such as
participation in the logistics facility leasing business and preparation for the start of the use of private
REITs.
In regard to the consolidated performance forecasts for FY2022/3, it is still not possible to forecast
the timing of the resolution of the COVID-19 situation. However, we expect a moderate recovery inmobility demand and consumer spending due to the spread of vaccines, etc. We expect an increase inoperating revenues, and a return to profitability at all levels of profit.

－

7 －Full-year performance forecasts for FY2022/3
Operating revenue¥344,200 million (up 17.1% YoY)
Operating income¥10,600 million (operating loss of ¥22,873 million in previous fiscal
year)
Ordinary income¥10,600 million (ordinary loss of ¥19,323 million in previous fiscal
year)
Net income attributable to owners of the parent¥12,900 million (net loss attributable toowners of parent of ¥18,984 million in previous fiscal year)
EBITDA¥37,900 million (increase of 717.0 % YoY)
* In regard to the method of depreciation for railway business fixed assets, previously theCompany primarily used the declining-balance method. However, from FY2022/3, the Company
will change to mainly using the straight-line method. In addition, in regard to rolling stock, theCompany will change to useful life in line with usage condition. As a result, in comparison with
before the change, depreciation in the railway business is expected to decline by approximately¥3.1 billion.
Also, forecasts by segment for operating revenues, operating income, and EBITDA are as
follows.
(Millions of Yen)
Operating revenues
FY 2022/3(April 1, 2021 –March 31, 2022)

Operating income

EBITDAFY 2022/3
YoY

FY 2022/3(April 1, 2021 –March 31, 2022)

YoY(April 1, 2021 –March 31, 2022)

YoY－(3,400)4,900(2,090) (29.9%)

5,800(2,241) (27.9%)

22.2%

16,400

6,486

65.4%

30,600

8,374

37.7%

9,638

19.4%

14,000

1,927

16.0%

25,800

3,790

17.2%

23,000(560)(2.4%)

2,200(440) (16.7%)2,200(452) (17.1%)

15,5008,693 127.7%

200

4,999

－

2,600

5,037

－

47,300(4,188)(8.1%)

500

3,075

－

1,700

2,880

－

57,500(6,141)(9.7%)

2,100

348

19.9%

4,600

892

24.1%

Total

425,100

38,0249.8%

11,60033,148－39,300Adjustment(80,900)

12,261－(1,000)325－(1,400)344,200

50,28517.1%

10,60033,473－37,900Transportation

127,500

32,20533.8%(12,300)

Construction

94,900(1,623)(1.7%)

97,90017,772

Real estate
lease

59,400Real estate sale
Hotel

Real Estate andHotelsRetail andRestaurant
Other25,32923,107－33,013 525.1%
247－

Amount on the
consolidated
financialstatements－

8 －33,260 717.0%

(2) Qualitative Information on Consolidated Financial Position[1] Assets, Liabilities, and Net Assets
Total assets as of the end of the fiscal year under review increased 7.6% compared to theprevious fiscal year-end, to ¥891,379 million. Due to an increase in securities and other factors,
current assets were up 24.6%, to ¥200,906 million. In addition, non-current assets rose 3.5%, to¥690,472 million, as a result of purchases of property, plant and equipment and other factors.
Meanwhile, total liabilities increased 20.9% compared to the previous fiscal year-end, to¥495,971 million. Current liabilities declined 27.7%, to ¥144,681 million, due to a decline incurrent portion of long-term debt and other factors. Non-current liabilities were up 67.2%, to¥351,290 million, as a result of the issuance of bonds, an increase in long-term debt, and otherfactors.
Furthermore, total net assets decreased 5.5% compared to the previous fiscal year-end, to¥395,408 million. This was due to such factors as a decline in retained earnings resulting from a
net loss attributable to owners of parent, the payment of dividends, and other factors.

[2] Cash Flows(Cash flows from operating activities)
Net cash used in operating activities totaled ¥10,361 million (compared with net cash provided
by operating activities of ¥60,468 million in the previous fiscal year), due to a decrease inrailway transportation revenues and other factors.
(Cash flows from investing activities)
Net cash used in investing activities was ¥53,912 million, down ¥23,031 million year on year,
due to declines in purchases of fixed assets and other factors.
(Cash flows from financing activities)
Net cash provided by financing activities came to ¥105,870 million, up ¥102,500 million year
on year, as a result of long-term debt, the issuance of bonds, and other factors.
As a result of the above, cash and cash equivalents, end of year increased ¥41,201 million year
on year, to ¥65,019 million.
(3) Dividend Policies, Dividends in the Fiscal Year Ended March 31, 2021, and Forecast for
Dividends in the Fiscal Year Ending March 31, 2022
The Company views shareholder returns as one of its important management tasks, and therefore
places importance on providing stable returns over the long term. Over the period to the fiscal
year ending March 31, 2022, the Company will aim for a consolidated dividend payout ratio of
35%, with a minimum dividend per share of ¥93.0. In addition, to increase capital efficiency, theCompany will implement share repurchases depending on the situation－

9 －Results were extremely severe in FY2021/3. However, in accordance with the above policy, theCompany is planning a year-end dividend of ¥93 per share for the fiscal year ended March 31,
2021.
It is not possible to forecast the timing of the resolution of the COVID-19 infection. Results in
FY2022/3 are expected to be extremely severe. However, in accordance with the above policy,
the Company is planning an annual dividend of ¥93 per share.
Under the Articles of Incorporation, the Company is able to pay interim dividends, with a record
date of September 30, through resolution of the Board of Directors, and the Company has paid
dividends from retained earnings in two parts — an interim dividend and a year-end dividend.
However, matters such as the influence of COVID 19 on results will require carefulconsideration, and accordingly, in regard to the dividends for FY2021.3 and FY2022.3, theCompany has decided to suspend the interim dividend and plans to pay dividends in one partthrough the year-end dividend.

2. Basic Policies Regarding the Selection of Accounting Standards
The Company employs Japanese generally accepted accounting principles (JGAAP). The Company
will examine the possibility of adopting International Financial Reporting Standards (IFRS) in the
future based on trends in accounting standards in Japan.

－

10 －

3. 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
Leased 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

－

11 －

FY 2021/3(As of March 31, 2021)

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

22,92750,857
1,059
42,096
13,583
20,4298,352
41,646(47)
200,906

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

284,255
38,047
153,553
19,66428,4988,002
532,0213,940

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

45,16255,252873
54,062(840)
154,510
690,472
891,379

(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
Debt
Long-term debt
Lease obligations
Allowance for safety and environmental measures
Provision for loss on disaster
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
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Defined retirement benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total equity
TOTAL LIABILITIES AND EQUITY

－

12 －

FY 2021/3(As of March 31, 2021)

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

31,942
6,885
4,674
47,952
2,749

1,175

3,060

4,720
8,922
44,467200,248

4,737
5,814
36,864
144,681

40,00060,556
10,482
1,609
1,732
53,801
1,690
40,171
210,043
410,291

80,000159,383
11,522
1,412
3,773
50,507
1,462
43,227351,290495,971

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

16,000224,021150,017(594)
389,445

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

7,079
－
(186)
(6,148)743
5,218
395,408
891,379

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Income Statements(Millions of Yen)

OPERATING REVENUESOPERATING EXPENSES
Transportation, other services and cost of sales
Selling, general and administrative expenses
Total operating expenses
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 EXPENSES
Interest expense
Loss on investments in investment securities
Other
Total non-operating expenses
ORDINARY INCOME (LOSS)EXTRAORDINARY GAINS
Construction grants received
Gain on sales of shares of subsidiaries and associates
Other
Total extraordinary gains

FY 2020/3(April 1, 2019 – March 31,
2020)
432,644

FY 2021/3(April 1, 2020 – March 31,
2021)
293,914

273,400
109,838
383,238
49,406225,037
91,750316,788(22,873)

71
443
1,330
－
1,016
2,863

79
613
1,715
2,151
1,604
6,163

1,298
23
333
1,655
50,613

1,727
369
515
2,612
(19,323)

29,419764
4,291
34,475

19,5999,144
1,522
30,26529,333
7,939
686
682
3,355
41,99743,091

19,339
6,580
3,491
1,879
1,917
33,208(22,265)

6,916
－
4,181
11,09731,993

3,386(908)(5,982)(3,503)(18,761)498

222

31,495(18,984)

EXTRAORDINARY LOSSES
Losses from provision for cost reduction of fixed assets
Impairment loss
Provision for loss on disaster
Disaster-damage losses
Other
Total extraordinary losses
INCOME (LOSS) BEFORE INCOME TAXESINCOME TAXES
Current
Refund of income taxes
Deferred
Total income taxes
NET INCOME (LOSS)NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTSNET INCOME (LOSS) ATTRIBUTABLE TO OWNERS OF
THE PARENT

－

13 －

Consolidated Comprehensive Income Statements(Millions of Yen)
FY 2020/3(April 1, 2019 – March 31,
2020)
NET INCOME (LOSS)OTHER COMPREHENSIVE INCOME
Unrealized gain on available-for-sale securities
Deferred gains or losses on 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

－

14 －

FY 2021/3(April 1, 2020 – March 31,
2021)

31,993(18,761)(7,272)

2,646

(114)

(15)

60
533
(6,792)
25,200

(193)
900
3,338
(15,423)

24,722478(15,609)186

(3) Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31, 2020
(Millions of Yen)
Shareholders’ equity
Common stock Capital surplus
Balance at beginning ofcurrent year
Changes of items during theyear

16,000233,983

Dividends of surplus
Net income attributable toowners of the parent
Purchase of treasury
stocksCancellation of treasury
stocksChanges in the ownershipinterest by purchases ofshares of consolidates
subsidiaries
Change of scope of
consolidation
Net changes of items
other than shareholders’equityTotal changes of items
during the year
Balance at end of current
year

Retainedearnings

Treasury stock

Total
Shareholders’equity－410,541

160,558(15,680)(15,680)

31,49531,495(10,598)(10,598)

9,999－(9,999)

40

40

(43)

(43)

－

(9,958)15,771

(599)

5,213

16,000224,024

176,329(599)

415,754

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning ofcurrent year
Changes of items during
the year

11,677

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustments
129

112

Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
income(7,608)4,312

Non-controllinginterests

5,890

Dividends of surplus

420,743(15,680)

Net income attributableto owners of the parent
Purchase of treasury
stocksCancellation of treasury
stocksChanges in theownership interest bypurchases of shares of
consolidates
subsidiaries

31,495(10,598)－

40

Change of scope of
consolidation
Net changes of items
other than shareholders’equityTotal changes of items
during the year
Balance at end of current
year

Total equity(43)(7,255)

(114)

46

550

(6,773)(885)(7,659)(7,255)

(114)

46

550

(6,773)(885)(2,445)

4,422

15

158

(7,057)(2,461)

5,004

418,298－

15 －For the fiscal year ended March 31, 2021
(Millions of Yen)
Shareholders’ equity

Balance at beginning of current
year
Changes of items during theyear

Commonstock

Capital surplus

16,000224,024

Retainedearnings
176,329

Treasury stock

Total
Shareholders’equity(599)

415,754

Dividends of surplus(7,314)(7,314)

Net loss attributable toowners of the parent(18,984)(18,984)

Disposal of treasury shares

4

Capital increase of
consolidated subsidiaries
Changes in the ownershipinterest by purchases ofshares of consolidates
subsidiaries
Change of scope of
consolidation

4

(7)

(7)

4

4

(12)

(12)

Net changes of items otherthan shareholders’ equity
Total changes of items during
the year－(2)(26,311)

4(26,309)

Balance at end of current year

16,000224,021150,017(594)

389,445

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning ofcurrent year
Changes of items during the
year

4,422

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustments

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensi
ve incomeNon-controllinginterests

Total equity

158(7,057)(2,461)

5,004

418,298

15

Dividends of surplus(7,314)

Net loss attributable toowners of the parent(18,984)

Disposal of treasury shares

4

Capital increase of
consolidated subsidiaries
Changes in the ownershipinterest by purchases ofshares of consolidates
subsidiaries(7)4

Change of scope of
consolidation
Net changes of items otherthan shareholders’ equity
Total changes of items during
the year
Balance at end of current year

(12)
2,656

(15)

(345)

909

3,205

214

3,419

2,656

(15)

(345)

909

3,205

214

(22,890)

7,079

－

(186)

(6,148)

743

5,218

395,408－16 －(4) Consolidated Statements of Cash Flows(Millions of Yen)
FY 2020/3
FY 2021/3(April 1, 2019– March 31, 2020) (April 1, 2020 – March 31, 2021)
CASH FLOWS FROM OPERATING ACTIVITIESIncome (loss) before income taxes
Depreciation costs
Impairment loss
Losses from provision for cost reduction of fixed
assetsIncrease in provision for loss on disaster
Loss on disaster
Increase (Decrease) in allowance for doubtful
accounts
Increase (Decrease) in liability for retirement benefits
Increase (Decrease) in allowance for safety andenvironmental measures
Interest and dividends income
Interest expense
Construction grants received
Gain on sales of shares of subsidiaries and associates(Increase) decrease in trade receivables(Increase) decrease in inventories
Increase (Decrease) in trade payables
Gain on assets held in trust
Subsidies for employment adjustment
Other
SubtotalInterest and dividends income received
Interest expense paid
Gain on assets held in trust received
Loss on disaster paid
Income taxes paid
Amount received as subsidies for employment
adjustment
Net cash provided by operating activities

－

17 －

43,091
26,748
7,939(22,265)
29,3796,580

29,333

19,339

686
682

3,491
1,879

(516)

(17)

(4,527)(1,937)

(270)

(196)

(515)
1,298
(29,419)
(764)
6,160
(3,940)(1,672)(1,330)－397
73,378
507
(994)
1,394
(4,422)(9,394)

(692)
1,727
(19,599)(9,144)(10,622)
4,523
7,446
(1,715)(2,151)(11,102)(5,077)668(1,624)
1,713(3,479)(4,226)－

1,663

60,468(10,361)(Millions of Yen)
FY 2020/3(April 1, 2019 – March 31,
2020)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment, andIntangible assets
Purchases of investment securities
Proceeds from sales of money held in trust
Proceeds from construction grants
Collection of short-term loans receivable
Proceeds from sales of shares of subsidiaries resulting
in change in scope of consolidation
Other
Net cash provided by (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIESNet increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Payments for long-term accounts payable
Proceeds from issuance of bonds
Proceeds from lease and guarantee deposits received
Repayments of lease and guarantee deposits received
Purchases of treasury stocks
Cash dividends paid
Cash dividends paid to non-controlling shareholders
Other
Net cash used in financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of year
Decrease in cash and cash equivalents resulting fromexclusion of subsidiaries from consolidation
Cash and cash equivalents, end of year

－

18 －

FY 2021/3(April 1, 2020 – March 31,
2021)(109,947)(95,205)(21,706)
12,25917,998
16,647(2,687)－
24,797
4,220－

12,311

7,805(76,943)

2,650(53,912)995
15,550(4,034)(345)
20,0001,380(937)(10,598)(15,680)(72)(2,887)
3,369(3,146)103,636(30,111)(259)
40,0005,752(1,621)－(7,314)(7)(1,057)
105,870

58(198)(13,047)
36,86541,397
23,817－(196)

23,81765,019(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
No relevant events(Additional Information)
Restoration of the Hitahikosan LineDue to the influence of the heavy rains in northern Kyushu in July 2017, we are implementing
substitute forms of transportation on the Soeda-Yoake segment of the Hitahikosan Line. At thesixth meeting regarding the restoration of the Hitahikosan Line, which was held on July 16,
2020, it was decided that service on the line would be restored and an agreement was reachedon the method of restoration.
Accordingly, in the consolidated fiscal year, expenses related to removal and repair of railway
facilities were rationally estimated, and provision for loss on disaster of ¥2,097 million anddisaster-damage losses of ¥41 million were recorded under extraordinary losses in the
consolidated income statements.
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 theHisatsu 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
consolidated income statements for the consolidated fiscal year. Recovery expenses, etc., forthe consolidated fiscal year were recorded as “disaster-damage losses” and a reasonableestimate of the amount of recovery expenses, etc., anticipated in the next consolidated fiscal
year and thereafter was recorded as “provision for loss on disaster.”
In regard to the Hisatsu Line, expenses, etc., that could occur but are difficult to reasonably
estimate are not included in “provision for loss on disaster.”
Accounting estimates related to the influence of the COVID-19 infection
It is still not possible to forecast the timing of the resolution of the COVID-19 infection.
Accordingly, the Company has prepared accounting estimates for fixed asset impairment
accounting and the recoverability of deferred tax assets based on the assumption that the
influence will continue to a certain extent beyond FY 2021.3, but that due to the spread ofvaccines, etc., mobility demand and consumer spending will gradually recover.

(Segment Information, etc.)
1. Outline of Reportable Segments
The reportable segments the Company reports are the business units for which the Company isable to obtain respective financial information separately in order for the Board of Directors,
etc., to regularly evaluate how to allocate resources and assess their business performance.
The Company primarily engages in the railway business and has four reportable segments:
Transportation, Construction, Real Estate and Hotels, and Retail and Restaurant.
The Transportation segment conducts the railway, bus, and passenger ship businesses. The
Construction segment performs construction, vehicle equipment- and machinery-related
operations, and electrical work. The Real Estate and Hotels segment leases station buildings－

19 －and other real estate, sells condominiums and other properties, and conducts hotel operations,etc. The Retail and Restaurant engages in retail, restaurant, and agriculture businesses.
2. Methods for Calculating Sales, Income (Loss), Assets, and Other Items by Reportable
Segment
The accounting methods used for reportable segments are generally the same as thosecontained in “Significant matters that serve as the basis for preparing consolidated financial
statements.”
Inter-segment internal revenue and transfers are based on market prices, etc.
Figures for reportable segment profit are on an operating income basis.

－

20 －

3. Information on Sales, Income, Assets, and Other Items by Reportable Segment
For the fiscal year ended March 31, 2020
Reportable Segments
Transportation Construction

Real Estateand Hotels

Retail andRestaurant

Other(Note 1)

Total

(Millions of yen)Amount ontheAdjustment consolidated
financial(Note 2)statements(Note 3)Operating Revenues
Outside Customers

166,266

37,59786,441

104,366

37,973432,644－432,644

Inside Group

7,464

61,7884,338

291

34,218108,101(108,101)

－

Total

173,730

99,38590,779104,657

72,191

540,746(108,101)

432,644

Segment income

19,8486,580

19,137

2,825

2,284

50,676(1,270)49,406

Segment assets

242,175

73,556424,222

49,69893,636883,290(54,700)

828,590

Depreciation costs

9,715

1,109

11,457

1,654

3,119

27,055(306)

26,748

Increase in property,
plant and equipment
and intangible assets

23,5972,935

56,086

3,752

9,040

95,412368

95,781Other items(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 following adjustments have been made.
(1) The ¥1,270 million downward adjustment to segment income reflects the elimination of intersegment
transactions.
(2) The ¥54,700 million downward adjustment to segment assets includes a downward adjustment of¥121,019 million in reflection of the elimination of intersegment liabilities and ¥66,319 million incorporate assets not allocated to segments.
(3) The ¥306 million downward adjustment to depreciation costs reflects the elimination of intersegment
transactions.
(4) The ¥368 million upward adjustment to increase in property, plant and equipment and intangible assets
reflects the elimination of intersegment transactions.
3. Segment income has been adjusted for the operating income figure on the consolidated income
statements.

For the fiscal year ended March 31, 2021
Reportable Segments
Transportation Construction

Real Estateand Hotels

Retail andRestaurant

Other(Note 1)

Total

(Millions of yen)Amount ontheAdjustment consolidated
financial(Note 2)statements(Note 3)Operating Revenues
Outside Customers

88,65642,35976,621

51,33034,947

293,914－

293,914

Inside Group

6,637

54,164

3,506

157

28,694

93,161(93,161)－

Total

95,29496,52380,12751,48863,641

387,075(93,161)

293,914Segment income (loss)(37,629)

6,990

9,913

(2,575)

1,751(21,548)(1,325)(22,873)

Segment assets

231,568

72,468447,889

30,842103,078885,846

5,532

891,379

Depreciation costs

11,121

1,050

12,311

1,395

3,822

29,701(322)

29,379

Increase in property,
plant and equipment
and intangible assets

13,9981,854

34,2373,240

11,34464,675(3,532)

61,143

Other items

－

21 －

(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 following adjustments have been made.
(1) The ¥1,325 million downward adjustment to segment income (loss) reflects the elimination ofintersegment transactions.
(2) The ¥5,532 million upward adjustment to addition to segment assets includes a downward adjustment of¥127,400 million in reflection of the elimination of intersegment liabilities and ¥132,933 million incorporate assets not allocated to segments.
(3) The ¥322 million downward adjustment to depreciation costs reflects the elimination of intersegment
transactions.
(4) The ¥3,532 million downward adjustment to increase in fixed assets reflects the elimination ofintersegment transactions.
3. Segment income (loss) has been adjusted for the operating loss figure on the consolidated income
statements.
.

－

22 －

(Per Share Information)
Fiscal year ended March 31, 2020
Net assets per share
Net income (loss) per share

Fiscal year ended March 31, 2021

¥2,630.51¥2,483.43¥198.16¥ (120.83)(Notes) 1. For FY2020/3, earnings per share–diluted is not shown because no dilutive shares existed. For FY2021/3,
earnings per share–diluted is not shown because there was a net loss per share and no dilutive shares
existed.
2. In calculating net assets per share, the Company’s shares in the Board Benefit Trust (BBT), which arerecorded as treasury stock in the equity section, are included in the treasury stock that is subtracted from thetotal number of shares issued at the end of the period (FY2020/3: 186,100 shares; FY2021/3: 184,600
shares).
In addition, in calculating net income (loss) per share or net loss per share, these shares are included in thetreasury stock that is subtracted in the calculation of the average number of shares during the period(FY2020/3: 124,067 shares; FY2021/3: 184,975 shares).
3. The following is the basis for calculating net assets per share.
Fiscal year ended March 31, 2020
Total net assets (millions of yen)

Fiscal year ended March 31, 2021

418,298

395,408

Amount deducted from total net assets (millions of
yen)

5,004

5,218

(Included non-controlling interests (millions of yen))(5,004)(5,218)413,293

390,189

157,115,500

157,117,000

Net assets at end of year relating to common stock(millions of yen)Amount of common stock at end of year used for
calculating net assets per share (shares)

4. The following is the basis for calculating net income (loss) per share.
Fiscal year ended March 31, 2020
Net income (loss) attributable to owners of the

Fiscal year ended March 31, 2021

31,495(18,984)－－

Net income (loss) attributable to common stock
owners of the parent (millions of yen)

31,495(18,984)

Weighted-average numbers of ordinary shares(shares)

158,938,917

157,116,625

parent (millions of yen)Amount not belonging to ordinary shareholders(millions of yen)

(Significant Subsequent Events)
No relevant events

－

23 －

4. Non-Consolidated Financial Statements(1) Non-Consolidated Balance Sheets(Millions of Yen)
FY 2020/3(As of March 31, 2020)
ASSETS
Current assets
Cash and time deposits
Fares receivable
Accounts receivable-trade
Securities
Real estate for sale
Costs on uncompleted construction contracts
Supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Fixed assets for railway business
Property, plant and equipment
Accumulated depreciation
Property, plant and equipment (net)
Intangible assets
Net fixed assets for railway operations
Fixed assets for other business
Property, plant and equipment
Accumulated depreciation
Property, plant and equipment (net)
Intangible assets
Net fixed assets for other business
Fixed assets relating to both businesses
Property, plant and equipment
Accumulated depreciation
Property, plant and equipment (net)
Intangible assets
Net fixed assets relating to both businesses
Construction in progress
Railway business
Other business
Relating to both businesses
Total construction in progress
Investments and other assets
Investment securities
Stocks of subsidiaries and affiliated companies
Long-term prepaid expenses
Deferred tax assets
Other
Allowance for doubtful accounts
Provision for investment losses
Total investments and other assets
Total noncurrent assets
Total assets

－

24 －

FY 2021/3(As of March 31, 2021)

5,826
4,045
35,313－
5,118
23,817
6,933
6,365
(0)
87,41913,595979
40,38242,096
7,022
15,9297,663
22,730(0)150,400

687,650(600,082)
87,567
1,606
89,174

700,707(603,924)
96,782
1,281
98,064

330,106(53,533)
276,573536
277,109357,875(60,248)
297,626425
298,052

36,815(17,850)
18,96593
19,05832,111(15,025)
17,08667
17,153

17,90016,305
155
34,36012,142
11,922
68
24,13330,52342,282
7,415
42,95535,470(70)(280)
158,296
578,000
665,419

30,13435,346
7,682
46,12345,388(68)(359)
164,247
601,651
752,051

(Millions of Yen)
FY 2020/3(As of March 31, 2020)
LIABILITIES AND EQUITYCurrent liabilities
Current portion of long-term debt
PayablesFare deposits received with regard to railway
connecting services
Deposits received
Railway fares received in advance
Advances received
Accrued bonuses
Provision for point card certificates
Other
Total current liabilities
Non-current liabilities
Bonds
Long-term debt
Employees’ severance and retirement benefits
Allowance for safety and environmental measures
Provision for loss on disaster
Provision for guarantee obligations
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
EQUITY
Shareholders’ equity
Common stock
Capital surplus
Capital surplus
Other
Total capital surplus
Retained earnings (Deficit)
Other
Reserve for deferred gain of fixed assets
Retained earnings carried forward
Total retained earnings (Deficit)
Treasury stock
Total common stock
Valuation and translation adjustment
Valuation difference on available-for-sale securities
Net valuation and translation adjustment
Total equity
TOTAL LIABILITIES AND EQUITY

－

25 －

FY 2021/3(As of March 31, 2021)

23,60887,625

11,841
70,513

1,175

3,060

6,058
4,710
18,728
5,121
762
5,747
153,536

2,142
4,736
9,744
2,570
751
9,239
114,600

40,00056,89239,262
1,609
1,732
7,467
189
10,439157,591
311,128

80,000154,933
37,101
1,412
3,773
11,014527
10,647
299,411414,01116,00016,000171,908
52,113224,022

171,908
52,113224,022

7,638
102,838
110,477(599)
349,900

7,686
84,33092,017(594)
331,445

4,390
4,390
354,291
665,419

6,594
6,594
338,040752,051

(2) Non-Consolidated Statements of Income(Millions of Yen)
FY 2021/3(April 1, 2020 –March 31, 2021)

FY 2020/3(April 1, 2019 –March 31, 2020)
RAILWAY BUSINESSOperating revenues
Income from railway passenger traffic
Trackage revenue
Miscellaneous income of transportation
Total operating revenues
Operating expenses
Transportation expenses
General and administrative expenses
Taxes
Depreciation costs
Total operating expenses
Operating income (loss)
OTHER BUSINESSES
Operating revenues
Revenue from real estate sale
Revenue from real estate lease
Other
Total operating revenues
Operating expenses
Cost of sales
Selling, general and administrative expenses
Taxes
Depreciation costs
Total operating expenses
Operating income
TOTAL OPERATING INCOME (LOSS)NON-OPERATING INCOME
Interest income
Dividend income
Gain on assets held in trust
Other
Total non-operating income
NON-OPERATING EXPENSES
Interest expense
Provision for loss on guarantees, etc.
Loss on investments in investment securities
Other
Total non-operating expenses
ORDINARY INCOME (LOSS)

－

26 －

147,381575
17,247
165,204

76,325500
12,947
89,773

117,874
11,175
7,337
8,727
145,115
20,08999,173
10,004
7,050
10,155
126,383(36,610)

18,90025,835
4,951
49,68823,49826,983
4,472
54,95424,479
766
3,400
6,732
35,37914,30834,39826,998
753
3,765
7,417
38,93516,018(20,591)

23
5,484
1,330
505
7,343

38
9,152
1,715
1,221
12,127

763
135
23
234
1,156
40,584

1,088
487
369
444
2,389
(10,853)(Millions of Yen)
FY 2021/3(April 1, 2020 –March 31, 2021)

FY 2020/3(April 1, 2019 –March 31, 2020)
EXTRAORDINARY GAINS
Construction grants received
Gain on sales of shares of subsidiaries and associates
Other
Total extraordinary gains
EXTRAORDINARY LOSSES
Losses from provision for cost reduction of fixed
assetsProvision for loss on disaster
Loss on disaster
Impairment loss
Provision for loss on guarantees, etc.
Other
Total extraordinary losses
INCOME (LOSS) BEFORE INCOME TAXESINCOME TAXES
Current
Refund of income taxes
Deferred
Total income taxes
NET INCOME (LOSS)

－

27 －

29,211
1,159
4,229
34,59919,5709,071
995
29,637

29,125

19,310

686
738
928
6,525
2,896
40,90034,284

3,491
2,128
5,011
3,059
2,348
35,350(16,567)

931
－
4,654
5,585
28,69897(908)(4,610)(5,421)(11,145)

(3) Non-Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31, 2020
(Millions of Yen)
Shareholders’ equity
Retained earnings

Balance at beginning ofcurrent year

Retained earnings
Other Retained Earnings

Retainedearnings

Additional
Paid-in
CapitalOther capitalsurplus16,000171,908

62,113

Provision ofreserve fordeferred gain of
fixed assets

Capitalsurplus234,021

Retained
Earnings
CarriedForward

5,951

Total Retained
Earnings

91,50797,459Dividends of surplus(15,680)(15,680)

Net income

28,69828,698

1,687(1,687)-

Changes of items during
the year

Provision of reserve fordeferred gain of fixed
assetsPurchase of treasury
stocksCancellation oftreasurystocksNet changes of items
other thanshareholders’ equity
Total changes of items
during the year
Balance at end of current
year(9,999)(9,999)--(9,999)(9,999)1,687

11,33013,01816,000171,908

52,113224,022

7,638

102,838

110,477

Valuation and Translation
Adjustments
Valuation difference on
available-for-sale securities

Shareholders’ equity
Treasury stock
Balance at beginning ofcurrent year

Shareholders’ equity-

347,481

11,239Total equity

358,720

Changes of items during
the year
Dividends of surplus(15,680)(15,680)

28,69828,698--(10,598)(10,598)(10,598)

9,999

-

-

Net income
Provision of reservefor deferred gain of
fixed assets
Purchase of treasury
stocksCancellation oftreasurystocksNet changes of items
other thanshareholders’ equity(6,848)－28 －(6,848)

Total changes of items
during the year

(599)

2,419

(6,848)(4,428)

Balance at end ofcurrent year(599)

349,900

4,390

354,291－29 －For the fiscal year ended March 31, 2021
(Millions of Yen)
Shareholders’ equity
Retained earnings

Balance at beginning ofcurrent year

Retained earnings
Other Retained Earnings

Retainedearnings

Additional
Paid-in
CapitalOther capitalsurplus16,000171,908

52,113

Provision ofreserve fordeferred gain of
fixed assets

Capitalsurplus224,022

Retained
Earnings
CarriedForward

7,638

Total Retained
Earnings

102,838

110,477

Dividends of surplus(7,314)(7,314)

Net loss(11,145)(11,145)

47

(47)

-

Changes of items during
the year

Provision of reserve fordeferred gain of fixed
assets
Disposal of treasury
sharesNet changes of items
other thanshareholders’ equity
Total changes of items
during the year
Balance at end of current
year

-

-

-

-

47

(18,507)(18,459)

16,000171,908

52,113224,022

7,686

84,33092,017

Valuation and Translation
Adjustments

Shareholders’ equity

Total
Net Unrealized Holding
Shareholders’Gains (Losses) on Securities
equityTreasurystock
Balance at beginning ofcurrent year(599)

349,900

4,390

Total equity

354,291

Changes of items during
the year
Dividends of surplus(7,314)(7,314)

Net loss(11,145)(11,145)

-

-

4

4

Provision of reserve fordeferred gain of fixed
assets
Disposal of treasury
sharesNet changes of items
other thanshareholders’ equity
Total changes of items
during the year
Balance at end of current
year

4

2,203

2,203

4

(18,454)2,203(16,250)(594)

331,445

6,594

338,040－30 －