Financial Results for the First Three Monthsof the Fiscal Year Ending March 31, 2023 [J-GAAP] (Consolidated)
August 9，2022
Company Name:
Kintetsu World Express, Inc. (KWE)
Stock exchange listed on:
Tokyo Stock Exchange (Prime Market)
Company code:
9375
URL : https://www.kwe.com
Representative:
President and Chief Executive Officer
Nobutoshi Torii
Managing Officer, General Manager,
Inquiries:
Hiroyuki Kasamatsu
Corporate Finance & Accounting Department
The date of filing the quarterly financial statements:
August 10, 2022
The date of the dividend payment start (planned):
Preparation of quarterly earnings presentation material: No
Holding of quarterly financial results briefing:No

TEL: +81-3-6863-6445(Figures are rounded down to the nearest million yen.)

1. Consolidated earnings results for the first three months of the fiscal year ending March 2023 (April 1, 2022– June 30, 2022)(1) Consolidated business results(Percentages are changes from the same period of the previous year.)Net salesFirst three months ended

Operating income

Net income attributableto owners of the parent

Ordinary income(Millions of yen)(%)

(Millions of yen)(%)

(Millions of yen)(%)

(Millions of yen)(%)

302,030
198,477

52.2
41.3

16,358
11,84638.1
49.7

21,926
12,30978.1
50.1

14,053
7,411

89.6
51.8

June 30, 2022
June 30, 2021
(Note) Comprehensive income

First three months ended June 30, 2022: 34,475 million yen (122.0%)
First three months ended June 30, 2021: 15,529 million yen (264.1%)

Net income per shareFirst three months ended

Diluted net income per share
(Yen)

(Yen)

195.47103.10June 30, 2022
June 30, 2021
(2) Consolidated financial position
Total assets
As of June 30, 2022
As of March 31, 2022
(Reference) Shareholders’ equity-

Net assets

Shareholders’ equity ratio Net assets per share(Millions of yen)

(Millions of yen)

(%)

(Yen)

577,572
537,999

239,188
211,05739.1
36.9

3,139.29
2,757.51

As of June 30, 2022: 225,703 million yen

As of March 31, 2022: 198,255 million yen

2. Dividends
Annual dividends
End of Q1

End of Q2(Yen)

Fiscal year ended March 31, 2022
Fiscal year ending March 31, 2023
Fiscal year ending March 31, 2023
(Forecasts)

End of Q3

(Yen)

-

Year-end(Yen)

Full fiscal year

(Yen)

(Yen)

40.00

-

80.00

120.00

0.00

-

0.00

0.00

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

3. Consolidated earnings forecasts for the fiscal year ending March 2023 (April 1, 2022 - March 31, 2023)(Percentages are changes from the same period of the previous year.)Net sales

Full fiscal year

Operating income

Ordinary income

Net income
attributable toowners of the parent

Net income
per share(Millions of yen)(%)

(Millions of yen)(%)

(Millions of yen)(%)

(Millions of yen)

(%)

(Yen)

944,500(3.7)

50,500(19.2)

49,000(24.3)

32,000(26.3)

445.08(Note) Revisions to the most recently disclosed earnings forecasts: No-1-

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries in accordance with changes in thescope of consolidation): No(2) Application of special accounting treatment in preparing the quarterly consolidated financial statements: Yes
Note: Please refer to “2. Quarterly Consolidated Financial Statements and Major Notes, (3) Notes to the Quarterly
Consolidated Financial Statements (Application of Special Accounting Treatment in Preparing the Quarterly
Consolidated Financial Statements)” on page 11.
(3) Changes in accounting policies, changes in accounting estimates, and restatement of revisions(a) Changes in accounting policies with revision of accounting standards, etc.: No(b) Changes in accounting policies other than the above (a): No(c) Changes in accounting estimates: No(d) Restatement of revisions: No(4) Number of issued shares (common shares)(a) Number of issued shares
As of June 30, 2022:
72,000,000 shares
As of March 31, 2022:
72,000,000 shares(including treasury shares)(b) Number of treasury shares
As of June 30, 2022:
103,547 shares
As of March 31, 2022:
103,456 shares(c) Average number of sharesFirst three months
First three months
71,896,523 shares
71,892,732 shares
during the period
ended June 30, 2022:
ended June 30, 2021:
Note: The Company has introduced the Board Incentive Plan Trust (“BIP Trust”). The Company’s shares held by the BIP Trust (101,012 shares
as of June 30, 2022) are included in treasury shares in the quarterly consolidated financial statements. They are also included in thenumber of treasury shares (101,012 shares as of June 30, 2022) that is deducted in calculating the average number of shares during theperiod.

* The Financial Results report is outside the scope of a quarterly review by certified public accountants or an audit firm.
* Explanation of the proper use of earnings forecasts and other special notes(Remarks on forward-looking statements)
The statements about future described on this report such as earnings forecasts have been made based on information
currently available and certain assumptions considered reasonable, and it is not intended to assure that the Company willachieve such results. Actual earnings may differ significantly from the above forecasts for various reasons. For theassumptions for earnings forecasts and cautions regarding the use of the earnings forecasts, please refer to “1. Qualitative
Information concerning Consolidated Earnings Results for the First Three Months of the Fiscal Year Ending March 2023 (3)Explanation about Future Forecast Information including Consolidated Earnings Forecasts” on page 6.

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1. Qualitative Information concerning Consolidated Earnings Results for the First Three Months of the
Fiscal Year Ending March 2023
(1) Explanation about Operating Results
During the three months ended June 30, 2022, the global economy continued to show a recovery trend overall with a recoveryof consumer consumption amid a global shift to the living with COVID-19. The U.S. economy maintained a recovery trend due
to steady employment environment and consumer consumption. In Europe, service consumption helped drive an economic
recovery while the rise in resource prices and supply constraints caused by the Russia-Ukraine crisis weighed on production
activities in the manufacturing industry. In China, the strict movement restrictions in response to the spread of COVID-19
caused sluggish production in the manufacturing industry and consumer consumption.
The Japanese economy witnessed a significant improvement in consumer sentiment following a major relaxation of
movement restrictions while the supply constraints caused by lockdowns in Chinese cities weighed on the production
recovery in the manufacturing industry.
In the global market, international transport demand, which significantly increased due to a recovery from the COVID-19
crisis during the year ended March 31, 2022, remained strong for sea freight but showed a decrease for air freight affected bylockdowns in Chinese cities and the Russia-Ukraine crisis.
Under such circumstances, the KWE Group’s freight operations saw air freight exports declined 1.8% year-on-year to
176 thousand tons, and air freight imports decreased 3.8% to 319 thousand shipments. Sea freight exports declined 0.4% to
177 thousand TEUs, and imports decreased 0.3% to 70 thousand shipments. Logistics exceeded the results of a year
earlier in all segments. Net sales increased year-on-year as freight rates for both air and sea freight remained high while
showing signs of declining.
As a result of the review of the Group’s management unit and a segmentation change to transfer Oceania in reportablesegments effective April 1, 2022, “East Asia & Oceania” and “Southeast Asia” were changed to “East Asia” and “South East
Asia & Oceania,” respectively. Comparisons and analyses for the three months ended June 30, 2022 are prepared based on
the new segmentation.

Operating results by segment are as follows:Japan
Air freight exports increased 1.8% to 46 thousand tons due to increases in handling volume of electronic products mainly insemiconductor-related products although handling volume in automotive-related products decreased due to supply
constraints. Air freight imports decreased 1.3% to 89 thousand shipments due to a decrease in electronic products. As for
sea freight, exports remained flat year-on-year with a decrease of 0.5% to 42 thousand TEUs as the handling volume
remained unchanged mainly in construction machinery-related products and construction materials, and imports
remained flat with a decrease of 0.8% to 27 thousand shipments as the number of shipments remained unchanged mainlyin electronic products. In logistics, the handling volume grew due to increases in healthcare-related products andapparel-related products. Domestic subsidiaries showed better performance than a year earlier due to a recovery indomestic logistics demand.
As a result, net sales for the segment increased 56.2% to 79,897 million yen, and operating income fell 76.7% to 613
million yen due to a decline in operating gross profit margin.

-3-

The Americas
Air freight exports increased 4.1% to 36 thousand tons due to increases in chemical products and healthcare-related
products. Air freight imports decreased 11.2% to 29 thousand shipments due to a decrease in automotive-related products.
Sea freight exports increased 12.9% to 10 thousand TEUs due to increases in aerospace products and food products andimports grew 13.7% to 11 thousand shipments due to increases in consumer products and automotive-related products.
In logistics, the handling volume grew due to an increase in electronic products in Canada.
As a result, net sales for the segment increased 84.9% to 37,741 million yen, and operating income rose 145.5% to 5,374
million yen due to an improvement in operating gross profit margin.
The exchange rate was U.S.$1 = \129.57 and U.S.$1 = \109.49 for the three months ended June 30, 2022 and 2021,
respectively.

Europe, Middle East & Africa
Air freight exports decreased 4.2% to 14 thousand tons due to a decrease in automotive-related products despite
increases in healthcare-related products and alcohol beverages. Air freight imports also decreased 4.8% to 22 thousand
shipments due to a decrease in automotive-related products. As for sea freight, exports declined 3.0% to 5 thousand
TEUs due to a decrease in machinery-related products, while imports increased 4.5% to 4 thousand shipments due toincreases in industry/construction machinery-related products and electronic products. In logistics, the handling volume
grew due to an increase in electronic products mainly in the Netherlands.
As a result, net sales for the segment increased 78.0% to 22,690 million yen, and operating income rose 222.6% to 2,340
million yen due to an improvement in operating gross profit margin.
The exchange rate was €1 = \ 138.12 and €1 = \ 131.96 for the three months ended June 30, 2022 and 2021,
respectively.

East Asia
Air freight exports decreased 5.7% to 47 thousand tons due to a decrease in volume to Asia affected by lockdowns in
Chinese cities despite a steady increase in volume to the Americas, and imports also decreased 5.1% to 124 thousand
shipments due to a decreased volume within Asia. Sea freight exports remained flat with an increase of 0.5% to 65
thousand TEUs due to an increase in volume mainly in electronic products and consumer products to the Americas
despite a decrease in volume to Europe and within Asia because of the Russia-Ukraine crisis and lockdowns in Chinese
cities, respectively. Sea freight imports decreased 8.8% to 13 thousand shipments due to a decrease in volume within
Asia. In logistics, the handling volume grew due to an increase mainly in electronic products in China.
As a result, net sales for the segment rose 59.0% to 68,693 million yen, and operating income grew 60.5% to 4,889 million
yen.

South East Asia & Oceania
Air freight exports decreased 5.8% to 31 thousand tons due to a decrease in automotive-related products caused bysupply constraints while imports remained flat year-on-year with an increase of 0.1% to 53 thousand shipments as the
shipments mainly in electronic products remained unchanged. Sea freight exports decreased 1.8% to 41 thousand TEUs
and imports decreased 2.7% to 13 thousand shipments, due to a decrease in automotive-related products despite
strong demand for electronic products in both exports and imports. In logistics, the handling volume of-4-healthcare-related products, etc. increased mainly in India.
As a result, net sales for the segment rose 42.8% to 49,154 million yen, but operating income decreased 68.5% to 746
million yen due to a decline in gross profit margin.

APLL
As for logistics service for automotive, the handling volume increased mainly with major customers despite the impact
of production cut in the automotive industry caused by the semiconductor shortage. Retail-related and other industrial
products continued to show a year-on-year increase due to strong demand in the inter-American market in sea freightand related logistics service. Consumer products also showed a year-on-year increase.
As a result, net sales for the segment increased 40.6% to 59,034 million yen, and operating income rose 69.5% to 3,492
million yen. Segment income rose 187.1% to 1,904 million yen as amortization of goodwill related to APLL acquisition is still
included in this segment.
The exchange rate was U.S. $1 = \116.20 and U.S. $1 = \105.90 for the three months ended June 30, 2022 and 2021,
respectively (APLL used the average rate for the period from January 1 to March 31 because APLL’s fiscal year-end is
December 31).

As a result, net sales for the three months ended June 30, 2022 increased 52.2% to 302,030 million yen, operating
income increased 38.1% to 16,358 million yen, ordinary income rose 78.1% to 21,926 million yen, and net income attributableto owners of the parent rose 89.6% to 14,053 million yen.

Kintetsu Group Holdings Co.,Ltd. conducted a tender offer for the shares of the Company’s common stock fromMay 16, 2022 with the intent of making the Company its wholly-owned subsidiary, which was successfully completed on
July 5, 2022. As of the date of the release of the financial results for the three months ended June 30, 2022, theCompany’s shares are currently listed on the Tokyo Stock Exchange, Inc., but as announced in the press release dated
July 21, 2022, “Announcement of Kintetsu Group Holdings Co.,Ltd.’s Decision to Make a Demand for Cash-Out of
Shares in the Company, the Company’s Approval of the Demand for Cash-Out of Shares, and the Delisting of Shares in
the Company,” they will be delisted on August 26, 2022.

-5-

(2) Explanation about Financial Position
Total assets as of June 30, 2022 increased 39,572 million yen from March 31, 2022 to 577,572 million yen. Total current
assets increased 27,804 million yen to 372,739 million yen mainly due to increases in notes and operating accounts
receivable-trade, and contract assets of 16,406 million yen and cash and deposits of 9,597 million yen. Non-current assets
increased 11,773 million yen to 204,670 million yen as total property, plant and equipment increased 6,896 million yen mainly
due to an increase in right-of-use assets, and total intangible assets increased 4,106 million yen due to currency translationdifferences in excess of a decrease by depreciation.
Total liabilities as of June 30, 2022 increased 11,441 million yen from March 31, 2022 to 338,383 million yen. Total current
liabilities increased 13,837 million yen to 204,554 million yen mainly due to increases in notes and operating accounts
payable-trade of 12,246 million yen and other of 4,442 million yen despite decreases in provision for bonuses of 2,108 million
yen and short-term loans payable of 1,768 million yen. Non-current liabilities decreased 2,396 million yen to 133,829 million
yen mainly due to decrease in long-term loans payable of 4,800 million yen.
Total net assets as of June 30, 2022 increased 28,131 million yen from March 31, 2022 to 239,188 million yen. This was
mainly because of an increase in retained earnings of 8,294 million yen due to recording net income attributable to owners of
the parent of 14,053 million yen, despite cash dividends paid of 5,759 million yen. In addition, foreign currency translation
adjustment increased 17,363 million yen due to a weaker yen trend.
Consequently, the equity ratio increased to 39.1% from 36.9% as of March 31, 2022.

(3) Explanation about Future Forecast Information including Consolidated Earnings Forecasts
While the business environment surrounding the Group is forecasted to remain uncertain due to factors including movement
restrictions in response to the COVID-19 situation, disruptions in manufacturing supply chains caused by supply constraints,
geopolitical risks such as the Russia-Ukraine crisis, the rise in resource prices and global inflation which may lead to an
economic downturn, and it may have impacts on the global logistics demand. However, there is no change at this point in the
consolidated earnings forecasts for the fiscal year ending March 31, 2023 announced on May 12, 2022.

-6-

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
FY3/22(As of March 31, 2022)

First quarter of FY3/23(As of June 30, 2022)

Cash and deposits

108,095

117,692

Notes and accounts receivable - trade, and contract assets

AssetsCurrent assets

210,665

227,071

Securities

4,647

4,980

Other

23,036

24,918

Allowance for doubtful accounts(1,511)(1,923)

Total current assets

344,934

372,739

Buildings and structures, net

18,062

18,260Land

14,34014,569Right-of-use assets, net

28,73034,628Other, net

13,053

13,625

Total property, plant and equipment

74,18781,083

Goodwill

50,402

52,728Customer-related assets

27,40328,622

Other

14,85015,411

Total intangible assets

92,656

96,762

Total investments and other assets

26,053

26,823

Total non-current assets

192,896

204,670

Non-current assets
Property, plant and equipment

Intangible assets

Deferred assets
Bond issuance cost

168

162

Total deferred assets

168

162

537,999

577,572

Notes and operating accounts payable–trade103,241

115,488

Short-term loans payable

36,007

34,239

Income taxes payable

9,295

10,344

Provision for bonuses

8,555

6,446

355

333

Total assets
Liabilities
Current liabilities

Provision for directors' bonuses
Other33,26037,702

Total current liabilities

190,716

204,554

Bonds payable

35,00035,000Long-term loans payable

64,80060,00056

54

Retirement benefit liability

5,912

3,205

Other

30,45635,569Total non-current liabilities

136,225

133,829

326,942

338,383

Non-current liabilities

Provision for share-based remuneration for directors

Total liabilities-7-

(Millions of yen)
FY3/22(As of March 31, 2022)

First quarter of FY3/23(As of June 30, 2022)

Capital stock

7,216

7,216

Capital surplus

4,499

4,499

Retained earnings

178,457

186,751

Treasury shares

(144)

(145)

190,028

198,322

Valuation difference on available-for-sale securities

2,104

2,179

Foreign currency translation adjustment

7,846

25,209Remeasurements of defined benefit plans(1,724)(7)

Total accumulated other comprehensive income

8,226

27,381

Non-controlling interests

12,802

13,484

Total net assets

211,057

239,188537,999

577,572

Net assets
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income

Total liabilities and net assets-8-(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)First three months of FY3/22 First three months of FY3/23(April 1, 2021 –June 30, 2021) (April 1, 2022 –June 30, 2022)
Net sales

198,477

302,030

Operating cost

168,519

263,972

Operating gross profit

29,95738,058Selling, general and administrative expenses

18,11021,699Operating income

11,846

16,358Interest income

145

148

Dividends income

17

25

Amortization of negative goodwill

22

Share of profit of entities accounted for using equity method

-

5

606

3,287

Gain on valuation of derivatives

-

2,407

Subsidy income

89

145

Miscellaneous income

134

138

Total non-operating income

997

6,160

Interest expenses

394

444

Share of loss of entities accounted for using equity method

32-

Miscellaneous expenses

107

147

Total non-operating expenses

534

592

12,30921,926

Loss on liquidation of subsidiaries

379-

Total extraordinary losses

379-

Income before income taxes

11,92921,926

Income taxes

4,146

7,336

Net income

7,782

14,590

370

536

7,411

14,053Non-operating income

Foreign exchange gains

Non-operating expenses

Ordinary income
Extraordinary loss

Net income attributable to non-controlling interests
Net income attributable to owners of the parent-9-

(Consolidated statements of comprehensive income)(Millions of yen)First three months of FY3/22 First three months of FY3/23(April 1, 2021 –June 30, 2021) (April 1, 2022 –June 30, 2022)

7,782

14,59018352Foreign currency translation adjustment

7,293

17,813Remeasurements of defined benefit plans

48

1,713

Share of other comprehensive income of entities accounted for using
equity method

221

305

7,747

19,885

15,52934,475

14,681

33,208847

1,266

Net income
Other comprehensive income
Valuation difference on available-for-sale securities

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests- 10 -

(3) Notes to the Quarterly Consolidated Financial Statements(Notes concerning Going Concern Assumption)
Not applicable.
(Significant Changes in Shareholders’ Equity)
Not applicable.
(Changes in Significant Subsidiaries during the Period)
Not applicable.
(Application of Special Accounting Treatment in Preparing the Quarterly Consolidated Financial Statements)(Calculation of tax expenses)
Tax expenses are calculated as income before income taxes for the period multiplied by the estimated effective tax rate.
The effective tax rate is reasonably estimated taking into consideration deferred tax accounting as the rate applicable toincome before income taxes for the consolidated fiscal year including the quarter ended June 30, 2022.
(Segment Information, etc.)
I First three months of the fiscal year ended March 2022 (April 1, 2021 – June 30, 2021)
Information about sales, income/loss for each reportable segment(Millions of yen)
Reportable segment

Japan

The
Americas

Europe,Middle East
& Africa

East Asia

OtherSouth East
Asia &
Oceania

APLL

Total

Note 1

Total

Carrying
amount onquarterly
Adjustment
consolidated
Note 2statements ofincomeNote 3

Net sales
Net sales tooutsidecustomers
Inter-segment
sales/transfers

48,56819,076

12,33642,55533,89041,932

198,361

115

198,477―

198,477

2,568

1,336

411

654

524

41

5,537

771

6,308

(6,308)―

Total net sales

51,137

20,413

12,74843,21034,41541,974

203,899886

204,785(6,308)

198,477

Segment income

2,633

2,188

725

3,045

2,367

663

11,623

213

11,836

9

11,846

Notes: 1. Other refers to business not included in reportable segments and provides incidental logistics related services within the Group.
2. The 9 million yen adjustment in segment income is an elimination of income generated from business between segments.
3. Segment income has been adjusted for the operating income appearing in the quarterly consolidated statements of income.
4. Major countries or regions except Japan and APLL in each category are as follows:(1) The Americas:
United States, Canada, Mexico, and Latin American countries(2) Europe, Middle East & Africa:
United Kingdom, Germany, France, Italy, the Netherlands, Belgium, Switzerland, Ireland,
other European countries, Russia, African countries, and Middle Eastern countries(3) East Asia:
Hong Kong, China, South Korea, and Taiwan(4) South East Asia & Oceania:
Singapore, Malaysia, Thailand, India, Indonesia, Vietnam, the Philippines, Cambodia, and Australia- 11 -

II First three months of the fiscal year ending March 2023 (April 1, 2022 – June 30, 2022)
1. Information about sales, income/loss for each reportable segment(Millions of yen)
Reportable segment

Japan

The
Americas

Europe,Middle East
& Africa

East Asia

OtherSouth East
Asia &
Oceania

APLL

Total

Note 1

Total

Carrying
amount onquarterly
Adjustment
consolidated
Note 2statements ofincomeNote 3

Net sales
Net sales tooutsidecustomers
Inter-segment
sales/transfers

71,042

34,794

21,511

67,07548,517

58,951

301,892137

302,030―

302,030

8,855

2,946

1,178

1,617

637

83

15,3191,305

16,624(16,624)―

Total net sales

79,89737,741

22,69068,69349,15459,034317,211

1,443

318,654(16,624)

302,030

Segment income

613

5,374

2,340

4,889

746

1,904

15,869487

16,3561

16,358Notes: 1. Other refers to business not included in reportable segments and provides incidental logistics related services within the Group.
2. The 1 million yen adjustment in segment income is an elimination of income generated from business between segments.
3. Segment income has been adjusted for the operating income appearing in the quarterly consolidated statements of income.
4. Major countries or regions except Japan and APLL in each category are as follows:(1) The Americas:
United States, Canada, Mexico, and Latin American countries(2) Europe, Middle East & Africa:
United Kingdom, Germany, France, Italy, the Netherlands, Belgium, Switzerland, Ireland,
other European countries, Russia, African countries, and Middle Eastern countries(3) East Asia:
Hong Kong, China, South Korea, and Taiwan(4) South East Asia & Oceania:
Singapore, Malaysia, Thailand, India, Indonesia, Vietnam, the Philippines, Cambodia, and Australia

2. Matters related to changes in reportable segments
As a result of the review of the Group’s management unit and a segmentation change to transfer Oceania in reportablesegments effective April 1, 2022, “East Asia & Oceania” and “Southeast Asia” were changed to “East Asia” and “South East
Asia &Oceania,” respectively.
Segment information for the three months ended June 30, 2021 are prepared based on the new segmentation.
(Significant Subsequent Events)(Tender offer by Kintetsu Group Holdings Co.,Ltd. for the Company’s shares)
Kintetsu Group Holdings Co.,Ltd. (the “Kintetsu Group Holdings”) conducted a tender offer (the “Tender Offer”) for theshares of the Company’s common stock (the “Company Shares”) from May 16, 2022, and, as a result, Kintetsu Group
Holdings came to own 66,321,188 shares of the Company Shares (voting rights ownership ratio (Note 1): 92.12%) as of July12, 2022 (the commencement date of settlement of the Tender Offer), and became a special controlling shareholder of theCompany (the “Special Controlling Shareholder”) as defined in the Companies Act (Act No. 86 of 2005, as amended).
Kintetsu Group Holdings determined on July 21, 2022 that it would make a demand to all of the shareholders of theCompany (excluding Kintetsu Group Holdings and the Company) to sell all of their Company Shares to Kintetsu Group
Holdings (the “Demand for Shares Cash-Out”) under Article 179, Paragraph 1 of the Companies Act as part of thetransactions for the purpose of acquiring all of the Company Shares (excluding the Company Shares held by KintetsuGroup Holdings and treasury shares held by the Company) and making the Company a wholly-owned subsidiary of KintetsuGroup Holdings since Kintetsu Group Holdings has come to own 90% or more of the voting rights of all shareholders of theCompany as a result of the completion of the Tender Offer.
The Company has received from Kintetsu Group Holdings a notice of the Demand for Shares Cash-Out on July 21,
2022 and resolved at its board of directors meeting held that day to approve the Demand for Shares Cash-Out.
In addition, the Company Shares will come to fall under the delisting criteria of the Tokyo Stock Exchange, Inc. (the“TSE”) upon the approval of the Demand for Shares Cash-Out. Therefore, the Company Shares will be designated as- 12 -

stock to be delisted for the period from July 21, 2022 through August 25, 2022, and they will be delisted on August 26,
2022. After the delisting, it will no longer be possible to trade the Company Shares on the TSE Prime Market.
Note 1: “Voting rights ownership ratio” means the percentage (rounded to the nearest two decimal places) of the voting
rights (719,975) represented by 71,997,556 shares, which is the total number of issued shares as of March 31,
2022 (72,000,000 shares) stated in the Annual Securities Report for the 53rd fiscal year released by the Company
on June 16, 2022 (the “Company’s Annual Securities Report”) less the number of treasury shares held by theCompany as of the same date (2,444 shares) (excluding 101,012 Company Shares held by the BIP (Board
Incentive Plan) Trust (the “BIP Trust”) as of the same date) stated in the Company’s Annual Securities Report.

- 13 -

１．Outline of the Demand for Shares Cash-Out（１）Outline of the Special Controlling Shareholder
（1）

Name

Kintetsu Group Holdings Co.,Ltd.

（2）

Location

6-1-55 Uehommachi, Tennoji-ku, Osaka（3）

Name and title ofrepresentative

Toshihide Ogura（4）

Description of business

Representative director and president
Control and management of business activities by owning shares or interestsof companies engaged in such business as a holding company（5）

Capital stock

126,476 million yen (as of March 31, 2022)（6）

Date of incorporation

June 1, 1944

（7）

Consolidated net assets

421,760 million yen (as of March 31, 2022)（8）

Consolidated total assets

1,895,770 million yen (as of March 31, 2022)（9）

Major shareholders andshareholding ratios(as of March 31, 2022)（10）

The Master Trust Bank of Japan, Ltd. (Trust Account)

14.7％

Custody Bank of Japan, Ltd. (Trust Account)

4.2％

Nippon Life Insurance Company

2.2％

STATE STREET BANK WEST CLIENT – TREATY 505234

1.9％

MUFG Bank, Ltd.

1.6％

JP MORGAN CHASE BANK 385781

1.2％

Mitsubishi UFJ Trust and Banking Corporation

1.0％

Meiji Yasuda Life Insurance Company

0.9％

STATE STREET BANK AND TRUST COMPANY 505103

0.8％

SSBTC CLIENT OMNIUS ACCOUNT

0.8％

Relationship between the Company and Kintetsu Group Holdings
Capital relationship

Kintetsu Group Holdings holds 66,321,188 Company Shares(ownership ratio (Note 2): 92.12%) as of July 21,2022.
As of March 31, 2022, the personnel relationship is as follows.

Personnel relationship

Business relationship
Status as related party

One of the directors of the Company serves as a director of KintetsuGroup Holdings and one director was previously employed at KintetsuGroup Holdings. Also, one of the audit and supervisory board members of
the Company serves as an audit and supervisory board member of thesubsidiary of Kintetsu Group Holdings and one of the managing officers of
the Company serves as an employee of Kintetsu Group Holdings.
Other than the above, four employees of Kintetsu Group Holdings Group(meaning Kintetsu Group Holdings and its consolidated subsidiaries andequity-method affiliates) excluding the Company Group (meaning theCompany and its consolidated subsidiaries and equity-method affiliates;
the same applies hereinafter) are seconded to the Company Group.
The Company belongs to the cash management system operated by
Kintetsu Group Holdings, in which the Company conducts transactions
such as deposits of funds, etc.
Kintetsu Group Holdings is a parent company of the Company. Therefore,
Kintetsu Group Holdings constitutes a related party of the Company.

(Note 2) “Ownership ratio” means the percentage (rounded to the nearest two decimal places) in the product (71,997,556 shares) of(i) the total number of issued shares of the Company as of March 31, 2022 (72,000,000 shares) stated in the Company’s
Annual Securities Report less (ii) the number of treasury shares held by the Company as of the same date (2,444 shares)(excluding 101,012 Company Shares held by the BIP Trust as of the same date) stated in the Company’s Annual
Securities Report.

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(2) Schedule of the Demand for Shares Cash-Out
Date of the Demand for the shares
cash-out

July 21, 2022 (Thursday)

Date of resolution of the Company’sboard of directors meeting

July 21, 2022 (Thursday)

Last trading day

August 25, 2022 (Thursday)

Delisting dateAugust 26, 2022 (Friday)

Acquisition dateAugust 30, 2022 (Tuesday)(3) Cash-Out Consideration
4,175 yen per share of common stock- 15 -