Note: This document has been translated from the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results for the Six Months Ended September 30, 2022
(Under Japanese GAAP)
November 10, 2022
Company Name: Nishi-Nippon Railroad Co., Ltd.
Stock exchange listings:
Tokyo and Fukuoka
Securities Code:9031
URL https://www.nishitetsu.co.jp/en/
Representative:
Koichi Hayashida, President and CEO(Tel.) +81-92-734-1217
Contact:
Tsuyoshi Kumai, Manager, Public Relations Department
Scheduled filing date of quarterly securities report: November 10, 2022
Scheduled commencement date of dividend payments: December 1, 2022
Preparation of supplementary materials for quarterly financial results : Yes
Scheduled quarterly financial results briefing: Yes (For institutional investors and analysts)(Amounts rounded down to the nearest million yen.)
1. Consolidated Financial Results for the Six Months Ended September 30, 2022
(from April 1, 2022 to September 30, 2022)(1) Consolidated operating results (year to date)(Percentages represent year-on-year changes.)
attributable toOperating revenue Operating income Ordinary income Profit
owners of parent
Millions of yen%

Six months ended
253,51535.0
11,527
13,1698,782
September 30, 2022
September 30, 2021
187,727
24.2
374
605
1
(Note(s)) Comprehensive income For the six months ended September 30, 2022
15,998million yen ( For the six months ended September 30, 2021
704million yen ( -Millions of yen

%

%)
%)

Net income pershare-basic
Six months ended
September 30, 2022
September 30, 2021

Millions of yen%

Millions of yen%

Net income pershare-diluted

Yen

Yen

111.470.01

111.170.01(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

%

As of
669,770
193,093
September 30, 2022
March 31, 2022
734,500
179,084(Reference) Shareholders’ equity As of September 30, 2022
As of March 31, 2022

27.8
23.5
186,217million yen
172,593million yen

2. Dividends
Annual dividends
End of Q1
Yen

End of Q2
Yen

End of Q3

Year-end

Yen

Fiscal year ended
12.50
March 31, 2022
Fiscal year ending
15.00
March 31, 2023
Fiscal year ending
March 31, 2023
(Forecast)(Note)
Revision of the dividend forecast most recently announced:

None

Total

Yen

Yen

17.50

30.00

15.00

30.00

3.

Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2023
(from April 1, 2022 to March 31, 2023)(Percentages represent year-on-year changes.)
ProfitOperatingOperatingincome per
Ordinary
incomeattributable
to Netrevenueincomeshare-basic
owners of parent
Millions of yen(Note)% Millions of yen%

Millions of yen% Millions of yen

Full year
495,800 16.1
20,000 91.4
20,500 46.9
Revision of the consolidated financial forecast most recently released:
Yes* Notes(1) Changes in important subsidiaries during the period under review

12,800

%

Yen

29.6

162.47: None(Changes in specified subsidiaries resulting in changes in scope of consolidation)(2) Adoption of special accounting treatment used in preparation of thequarterly consolidated financial statements(3) Change in accounting policies or estimates and restatements
1) Change in accounting policies due to revisions of accounting
standards and other regulations
2) Change in accounting policies other than item 1) above: None: None3) Change in accounting estimates: None4) Restatements: None(4) Number of shares issued (common stock)1) Number of shares issued at the end of theperiod (including treasury stock)2) Number of treasury stocks at the end of theperiod3) Average number of shares outstanding
during the period (year to date)(Note)**: NoneAs of September
30, 2022

79,360,186

shares

As of March 31,
2022

79,360,186

shares

As of September
30, 2022

562,631

shares

As of March 31,
2022

588,852

sharesSix months
ended September
30, 2022

78,784,863

sharesSix months
ended September
30, 2021

78,807,944

sharesThe number of treasury stocks includes shares of the Company remaining in the board benefit trust (as of
September 30, 2022: 243,225 shares; as of March 31, 2022: 244,266 shares).

Quarterly financial results are not subject to quarterly reviews by a certified public accountant or an audit firm.
Explanation of appropriate use of financial forecasts and other special notes
Any statements on the future such as financial outlooks included in this material are based on information the
Company presently has and certain assumptions the Company considers reasonable, and the Company does notintend to be committed to their realization. In addition, actual financial results may differ significantly due to various
factors. For assumptions for financial forecasts and points to consider in utilizing them, please see “(3) Explanationof future forecast information such as consolidated financial forecasts” in “1. Qualitative Information on Quarterly
Financial Results under Review” on page 6 of the attachments.

○ Table of Contents of Attachments

1.

2.

Qualitative Information on Quarterly Financial Results under Review ............................................................................................. 2(1)

Explanation of operating results................................................................................................................................................... 2(2)

Explanation of financial position ................................................................................................................................................... 6(3)

Explanation of future forecast information such as consolidated financial forecasts ................................................................... .6

Quarterly Consolidated Financial Statements and Key Notes ..............................................................................................................7(1)

Quarterly consolidated balance sheet ............................................................................................................................................. 7(2)

Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income ........................... 9(3)

Notes to quarterly consolidated financial statements ................................................................................................................... 11(Notes to assumptions on going concern) ...........................................................................................................................................11(Notes if there is a significant change in the amount of shareholders’ equity) ...................................................................................11(Segment information) ........................................................................................................................................................................121

1. Qualitative Information on Quarterly Financial Results under Review(1) Explanation of operating results(Millions of yen)Six months ended
September 30, 2021

Six months ended
September 30, 2022

Operating revenue

187,727

253,51565,78835.0%

Operating income

374

11,527

11,152-

Ordinary income

605

13,16912,564-

Profit attributable toowners of parent

1

8,782

8,781

-

ChangePercentage change

Operating revenue for the six-month period under review was 253,515 million yen, up 35.0% year-on-year, resulting in operating
income of 11,527 million yen (compared with operating income of 374 million yen in the same period of the previous fiscal year). Thiswas due to a recovery in demand from the same period of the previous fiscal year mainly due to an increase in sales prices in the
Global Logistics business under the Logistics business caused by the continued high freight costs, and the easing of restrictions on
activities in the Transportation business and Leisure and Services business caused by COVID-19.
Ordinary income was 13,169 million yen (compared with ordinary income of 605 million yen in the same period of the previous
fiscal year) due to an increase in foreign exchange gains caused by the depreciation of the yen.
Profit attributable to owners of parent was 8,782 million yen (compared with 1 million yen in the same period of the previous fiscal
year).
The Company’s business performance by segment is as follows.
At the beginning of the third quarter of the previous fiscal year, reorganization of consolidated subsidiaries accompanying
absorption-type company splits took place; accordingly, changes were made to the segmentation of businesses of the relevant
consolidated subsidiaries.
The segment information for the six-month period in the previous fiscal year was prepared in accordance with the segments after thechange.
(Millions of yen)
Operating revenue

Six months
Six months
ended
ended
September 30, September 30,
2021
2022

Operating income (loss)

ChangeSix months
Six months
Percentage
ended
ended
change September 30, September 30,
2021
2022

ChangePercentagechangeTransportation

30,01934,625

4,605

15.3%

(3,931)

(782)

3,148

-

Real Estate

31,61329,368(2,245)(7.1%)

3,193

2,507

(685)

(21.5%)

Retail34,286

34,110(176)(0.5%)

153

(304)

(457)

-

Logistics

77,560135,990

58,429

75.3%

4,763

11,1996,435

135.1%

Leisure and Services

8,982

13,890

4,907

54.6%

(4,244)(1,185)

3,059-

Subtotal

182,463

247,985

65,521

35.9%

(65)

11,433

11,499-Others13,521

14,457

935

6.9%

504

299

(204)

(40.5%)

Adjustments(8,257)(8,926)

(668)

-

(63)

(205)

(142)

-

Consolidated

187,727

253,51565,78835.0%

374

11,527

11,152-2

1) Transportation
In the Railway and Bus businesses, revenue increased due to a recovery in demand from the same period of the previous fiscal year
mainly due to the easing of restrictions on activities caused by COVID-19. As a result, operating revenue for the Transportation
business was 34,625 million yen (15.3% increase year-on-year), and operating loss was 782 million yen (operating loss of 3,931
million yen for the same period of the previous fiscal year).
The number of passengers in the Railway and Bus (public buses) businesses increased 10.5% and 6.1% year-on-year, respectively.
2) Real Estate
In the Leasing business, revenue increased mainly due to a recovery in lease revenue from commercial facilities, while in the
Housing business, revenue decreased mainly due to a drop in the number of condominiums sold. As a result, operating revenue for theReal Estate business was 29,368 million yen (7.1% decrease year-on-year). Operating income was 2,507 million yen (down 21.5%
year-on-year) due partly to a decrease in gross profit in the Housing business.
The number of lots sold was 244 (down 107 lots year-on-year).
3) RetailIn the Supermarkets/liquor stores business, while new stores contributed to higher sales, sales at the existing stores fell due to higher
inflation and consumers’ intensified focus on saving, which have led to a decrease in revenue. As a result, operating revenue of the
Retail business was 34,110 million yen (0.5% decrease year-on-year). Operating loss amounted to 304 million yen (compared with
operating income of 153 million yen for the same period of the previous fiscal year) due in part to a decline in gross profit margins
caused by soaring purchase prices in the Supermarkets/liquor stores business.
4) Logistics
In the Global Logistics business, revenue grew mainly due to an increase in sales prices owing to high freight costs. As a result,operating revenue for the Logistics business was 135,990 million yen (75.3% increase year-on-year), and operating income was 11,199
million yen (up 135.1% year-on-year).
International cargo volume was down 6.1% year-on-year in Air exports, down 1.7% year-on-year in Air imports, up 15.7% year-onyear in Ocean exports, and up 10.9% year-on-year in Ocean imports.
5) Leisure and Services
In the Hotel business, revenue increased due to higher occupancy from the same period of the previous fiscal year mainly due to theeasing of restrictions on activities caused by COVID-19. As a result, operating revenue for the Leisure and Services business was
13,890 million yen (54.6% increase year-on-year), and operating loss was 1,185 million yen (operating loss of 4,244 million yen forthe same period of the previous fiscal year).
6) Others
Other operating revenue was 14,457 million yen (6.9% increase year-on-year) mainly due to an increase in revenue from large
construction orders in the Construction related business, which offset a decrease in revenue mainly caused by a decline in orders
received in the Vehicle maintenance related business. Operating income amounted to 299 million yen (down 40.5% year-on-year) due
partly to a decrease in sales volume in the Metal recycling business and lower gross profit in the Vehicle maintenance related business.

3

(Statement of Income by Segment)(Millions of yen)
Operating income (loss)

Operating revenue
Six months ended
September 30,
2021

Six months ended
September 30,
2022

Transportation

30,01934,625

Railway

8,150

Bus

Percentagechange (%)

Six months ended
September 30,
2021

Six months ended
September 30,
2022

4,605

15.3

(3,931)

(782)

3,148

-

9,341

1,191

14.6

(418)

248

667

-

20,917

23,687

2,769

13.2

(3,094)(1,083)

2,010-[19,111][21,952][2,840][14.9]

-

-

-

-

4,845

5,649

803

16.6

(445)

14

459

-

(3,894)(4,053)

(159)

-

27

37

10

-

Real Estate

31,61329,368(2,245)

(7.1)

3,193

2,507

(685)

(21.5)

Leasing

11,922

12,223

301

2.5

2,458

2,360

(97)

(4.0)

Housing

15,69813,423(2,275)(14.5)

341

(87)

(429)

-

Other

5,986

5,798

(188)

(3.1)

392

266

(126)

(32.2)

Adjustments(1,995)(2,078)

(82)

-

0

(32)

(32)

-

34,286

34,110

(176)

(0.5)

153

(304)

(457)

-

Supermarkets/liquor stores

32,06831,699

(369)

(1.2)

163

(257)

(421)

-

Sales of miscellaneous everyday
items

2,227

2,411

183

8.3

28

14

(14)

(49.7)

(9)

(0)

9

(39)

(61)

(22)

-

77,560135,990

58,429

75.3

4,763

11,199

6,435

135.1

Global logistics

81,273

144,71063,436

78.1

4,696

11,225

6,528

139.0

Domestic logistics

5,285

5,206

(78)

(1.5)

183

62

(120)

(66.0)

Adjustments(8,998)(13,926)(4,927)

-

(115)

(88)

27

-

8,982

13,890

4,907

54.6

(4,244)(1,185)

3,059

-

Hotel

6,893

11,555

4,662

67.6

(3,833)(1,773)

2,059-(Hotel, net) *2[3,189][6,557][3,368][105.6]

-

-

594

1,103

509

85.8

(405)

(21)

383

Facility outline

1,893

2,207

313

16.6

221

552

330

Other

3,754

4,595

840

22.4

(232)

32

265

-

Adjustments(4,153)(5,571)(1,418)

5

24

19

-

182,463

247,985

65,52135.9(65)11,433

11,499-Other

13,521

14,457

935

6.9

504

299

(204)

(40.5)

Adjustments(8,257)(8,926)

(668)

(63)

(205)

(142)

-

Consolidated

187,727

253,51565,788374

11,527

11,152-(Bus, net) *1
Other
Adjustments

RetailAdjustments
Logistics

Leisure and Services

TravelSubtotal

Change--35.0*1 Operating revenues for the Bus business, excluding intercompany transactions, increased 14.9%.
*2 Operating revenues for the Hotel business, excluding intercompany transactions, increased 105.6%.

4

Percentagechange (%)

Change-149.4

(Transaction volume)1) Number of railway passengers / passenger revenue (Transportation)
Unit

Six months ended
September 30, 2021

Six months ended
September 30, 2022

Percentage change(%)

ChangeNumber of passengers

Thousandpassengers

42,96747,458

4,491

10.5

Non-commuter

Thousandpassengers

15,87919,023

3,144

19.8

CommuterThousandpassengers

27,08828,4351,347

5.0

Passenger revenue

Millions of
yen

7,758

8,896

1,137

14.7

Non-commuter

Millions of
yen

4,099

5,109

1,009

24.6

CommuterMillions of
yen

3,658

3,786

127

3.5

2) Number of public bus passenger / passenger revenue (Transportation)
Unit

Six months ended
September 30, 2021

Six months ended
September 30, 2022

Percentage change(%)

ChangeNumber of passengers

Thousandpassengers

98,985

105,023

6,038

6.1

Non-commuter

Thousandpassengers

52,06559,004

6,939

13.3

CommuterThousandpassengers

46,92046,019

(901)

(1.9)

Passenger revenue

Millions ofyen

16,945

19,557

2,612

15.4

Non-commuter

Millions ofyen

11,74114,147

2,405

20.5

CommuterMillions of
yen

5,203

5,410

206

4.0

3) Number of units sold (Real Estate)
Unit

Six months ended
September 30, 2021

Six months ended
September 30, 2022

Percentage change(%)

ChangeNumber of units sold

Unit

351

244

(107)

(30.5)

Condominium

Dwelling unit

260

166

(94)

(36.2)

Detached house

Lot

88

74

(14)

(15.9)

Dwelling unit

3

4

1

33.3

Renovation

4) Transaction volume of international cargo (Logistics)
Unit

Six months ended
September 30, 2021

Six months ended
September 30, 2022

Percentage change(%)

ChangeAir Export

Thousand tons

72

68

(4)

(6.1)

Air ImportThousand
cases

196

192

(3)

(1.7)

Ocean Export

Thousand
TEU

45

52

7

15.7

Ocean importThousand
TEU

64

71

7

10.9

5) Average daily rate (ADR) of hotels targeting mainly domestic customers, occupancy rate (OCC) andrevenue per available room (Rev PAR) (Leisure and Services)
Unit

Six months ended
September 30, 2021

Six months ended
September 30, 2022

Percentage change(%)

Change

ADR

Yen

6,656

[6,759]7,807[7,807]1,151[1,048]

17.3

OCC

%

29.5

[29.5]

64.8[64.8]

35.3P[35.3P]-

Rev PAR

Yen

1,965

[1,994]

5,058[5,058]

3,093[3,064]157.4[15.5][153.7]

Note: Figures in brackets are for existing hotels. Hotels operating in both previous and current fiscal years are in the scope.

5(2) Explanation of financial position(Millions of yen)
As of March 31, 2022

As of September 30, 2022

ChangeTotal Assets

734,500

669,770(64,730)

Total Liabilities

555,416

476,676(78,740)

Total Net Assets

179,084

193,093

14,009Interest-bearing debt

347,793

338,061(9,732)(Note) Interest-bearing debt is the sum of borrowings and bonds payable.
Assets fell 64,730 million yen from the end of the previous fiscal year to 669,770 million yen, mainly due to the direct reduction ofcontribution for construction, which had been recorded as advances received, from the acquisition cost of the fixed assets acquired, in
conjunction with the partial completion of the Tenjin-Omuta Line continuous grade separation project in the Railway business.
Liabilities dropped 78,740 million yen from the end of the previous fiscal year to 476,676 million yen, mainly due to a decrease ininterest-bearing debt and a decrease in advances received following the partial completion of the Tenjin-Omuta Line continuous grade
separation project in the Railway business.
Net assets rose 14,009 million yen from the end of the previous fiscal year to 193,093 million yen mainly due to an increase inretained earnings mainly owing to the posting of profit attributable to owners of parent and an increase in foreign currency translation
adjustment.

(3) Explanation of future forecast information such as consolidated financial forecasts
The consolidated financial forecasts for the full fiscal year ending March 31, 2023 have been changed from those announced on
August 10, 2022, based on the business results of the six-month period under review and the future outlook for each business segment.
For details, please refer to “Notice Concerning Difference between Financial Forecast and Actual Results as well as Revision of
Financial Forecast” announced on November 10, 2022.

6

2. Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly consolidated balance sheet(Millions of yen)
As of March 31, 2022

As of September 30, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsLand and buildings for sale
Merchandise and finished goods
Work in process
Raw materials and supplies
OthersAllowance for doubtful accounts

70,82866,28759,077

58,68958,980
3,839
258
2,019
16,634(215)

61,116
4,227
499
2,028
21,825(263)

Total current assets

211,422

214,410

Fixed assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net

187,495
14,602
129,278
99,130
7,383

193,490
13,536
131,450
19,167
7,971

Total property, plant and equipment

437,890

365,616

429
3,597

417
3,764

4,026

4,181

Investments and other assets
Investment securities
Retirement benefit assets
Deferred tax assets
OthersAllowance for doubtful accounts

47,523
4,040
11,706
18,232(342)

50,296
4,094
11,103
20,401(335)

Total investments and other assets

81,16085,561

523,077455,359734,500

669,770

Intangible assets
Goodwill
OthersTotal intangible assets

Total fixed assets
Total Assets

7

(Millions of yen)
As of March 31, 2022

As of September 30, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings

39,11948,89838,15549,771

Current portion of bonds payable
Accrued consumption taxes
Income taxes payable
Advances received
Provision for bonuses
Other provisions
Others

1,496
1,478
76,423
4,583
169
26,226

7,000
1,041
2,573
4,862
5,715
102
26,732

Total current liabilities

198,394

135,956

Bonds payable
Long-term borrowings
Deferred tax liabilities
Other provisions
Retirement benefit liability
Long-term guarantee deposits
Others152,000
146,895
1,572
454
22,91327,7405,445

145,000
136,289
1,098
505
23,02329,334
5,468

Total long-term liabilities

357,021340,719

Total Liabilities

555,416

476,676

Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock

26,157
12,608
127,430(1,278)26,157
12,608134,808(1,208)

164,918

172,366

6,544

6,662

Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans

(591)
1,227
492

(259)
6,992
455

Total accumulated other comprehensive income

7,674

13,851Long-term liabilities

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Subscription rights to shares

405

357

Non-controlling interests

6,085

6,519

179,084

193,093734,500

669,770

Total Net Assets
Total liabilities and net assets8(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income
Quarterly consolidated statement of income(Six-month period)(Millions of yen)Six months ended
September 30, 2021
Operating revenue
Operating expenses
Operating expenses and cost of sales of transportation
Selling, general and administrative expenses

Six months ended
September 30, 2022

187,727

253,515

173,094
14,258227,362
14,626

187,352

241,988

Operating income

374

11,527

Non-operating income
Interest income
Dividend income
Foreign exchange gains

14
502
186

66
685
1,365

Miscellaneous income

1,942

985

Total non-operating income

2,645

3,103

1,088

1,106

917

292

408

63

Total operating expenses

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodMiscellaneous expenses
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of fixed assets
Advances received on construction contracts
Contribution for construction
OthersTotal extraordinary income

2,414

1,461

605

13,169

1,121
14
0

68
74,926
472
1,411

1,136

76,879Extraordinary losses
Loss on reduction of non-current assets for tax
purposes
Loss on retirement of non-current assets

14

73,648-2,887

Impairment losses
Loss on valuation of investment securities
Other

147
89
0

5
-

Total extraordinary losses

251

76,541

Income before income taxes

1,490

13,507

Income taxes - current
Income taxes - deferred

1,294
(204)

3,876
36

Total income taxes

1,089

3,913

Profit400

9,594

Profit attributable to non-controlling interests

399

812

1

8,782

Profit attributable to owners of parent

9

Quarterly consolidated statement of comprehensive income(Six-month period)(Millions of yen)Six months ended
September 30, 2021
ProfitSix months ended
September 30, 2022
400

9,594

(1,658)
(1)
1,021
(17)

117
(1)
3,813
(37)

959

2,511

303

6,404

Comprehensive income

704

15,998(Components)
Comprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

259

14,959444

1,039

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income10(3) Notes to quarterly consolidated financial statements(Notes to assumptions on going concern)
Not applicable.
(Notes if there is a significant change in the amount of shareholders’ equity)
Not applicable.

11

(Segment information)
Six-month period in the previous fiscal year (from April 1, 2021 to September 30, 2021)
1. Information on operating revenue, income or loss by reporting segment(Millions of yen)
Reporting segment
TransporReal EstatetationOperating revenue

30,01931,613RetailLogistics

Leisure andServices

34,286

77,560

8,982

Total

Other Adjustments(Note) 1(Note) 2

182,463

13,521(8,257)

Amount posted
to the quarterly
consolidated
statement ofincome187,727

Segment income(3,931)
3,193
153
4,763
(4,244)
(65)
504
(63)
374
(loss)(Notes) 1. "Other" consists of business segments that are not included in any of the reporting segments and includes the IC cardbusiness, the Vehicle Maintenance related business, the Construction related business, and the Metal Recycling
business.
2. An adjustment of (63) million yen in segment income (loss) is the net of (381) million yen administrative expenses ofparent company that are not attributable to the reporting segments and 317 million yen of intersegment eliminations.
3. The segment information above was prepared and shown according to the changed classification of reporting segments
following the reorganization of consolidated subsidiaries.
Six-month period under review (from April 1, 2022 to September 30, 2022)
1. Information on operating revenue, income or loss by reporting segment(Millions of yen)Amount posted
to the quarterly

Reporting segment
TransporReal EstatetationOperating revenue

34,62529,368Retail34,110Logistics
135,990

Leisure andServices

Total

13,890247,985

Other Adjustments
consolidated(Note) 1(Note) 2
statement ofincome14,457(8,926)

253,515

Segment income
2,507
(304)
11,199(1,185)
11,433299(205)
11,527(782)(loss)(Notes) 1. "Other" consists of business segments that are not included in any of the reporting segments and includes the IC cardbusiness, the Vehicle Maintenance related business, the Construction related business, and the Metal Recycling
business.
2. An adjustment of (205) million yen in segment income (loss) is the net of (393) million yen administrative expenses ofparent company that are not attributable to the reporting segments and 187 million yen of intersegment eliminations.
2. Matters related to changes to reporting segments, etc.
The Company implemented an absorption-type company split in which Nishitetsu Plaza Corporation in the Leisure and Services
business passed on its restaurant business to Nishitetsu Store Inc. in the Retail business at the beginning of the third quarter of theprevious fiscal year with the aim of improving profitability. As a result of this reorganization, the Restaurant business, which waspreviously operated by Nishitetsu Plaza Corporation, has been reclassified from the Leisure and Services segment to the Retailsegment.
The segment information for the six-month period in the previous fiscal year was prepared in accordance with the segments
after the change.

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