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 Fiscal Year Ended March 31, 2024
(Under Japanese GAAP)May 10, 2024
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
Contact:
Takahide Kurata, Manager, Public Relations Department(TEL) +81-92-734-1217
Scheduled date of annual general meeting of shareholders: June 27, 2024
Scheduled commencement date of dividend payments: June 28, 2024
Scheduled filing date of securities report: June 27, 2024
Preparation of supplementary materials for financial results: Yes
Holding of financial results meeting: Yes (For institutional investors and analysts)(Amounts rounded down to the nearest million yen.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (From April 1, 2023 to March 31, 2024)(1) Consolidated operating results(Percentages represent year-on-year changes.)
Operating revenue
Millions of yen

Operating income%

Millions of yen

Profit attributable toowners of parent

Ordinary income%

Millions of yen%

Millions of yen

Fiscal year ended
411,649(16.8)
25,877(1.0)
24,538(12.1)March 31, 2024
Fiscal year ended
494,643
15.8
26,150150.2
27,901100.0
March 31, 2023
(Notes) Comprehensive income Fiscal year ended March 31, 2024 39,143 million yen (50.3%)
Fiscal year ended March 31, 2023 26,045 million yen (114.0%)
Net income per
Net income per
Ratio of ordinary
Return on equity
share-basic
share-diluted
profit to total assets
Yen

Yen

%

%

24,72334.6

18,36886.0

Ratio of operating
profit to net sales%%

Fiscal year ended
314.00313.41
11.7
3.5
March 31, 2024
Fiscal year ended
232.5410.0
3.9
233.10March 31, 2023
(Reference) Equity in earnings of affiliated companies Fiscal year ended March 31, 2024 (3,158) million yen
Fiscal year ended March 31, 2023 (416) million yen

6.3
5.3

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

727,002

235,83931.5

2,910.74

685,795

201,88128.4

2,471.07

Fiscal year ended
March 31, 2024
Fiscal year ended
March 31, 2023

(Reference) Shareholders’ equity

Fiscal year ended March 31, 2024 229,032 million yen
Fiscal year ended March 31, 2023 194,793 million yen(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2024
Fiscal year ended
March 31, 2023

Cash flows from investing
activities

Cash flows fromfinancing activities

Cash and cash equivalents at
end of year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

62,213(42,028)(25,959)

68,745

43,775(24,600)(19,164)

72,559

2. Dividends
Annual dividends
End of Q1

End of Q2

End of Q3

Year-end

Total

Total
dividends(annual)

Yen

Yen

Yen

Yen

Yen

Millions of yen

Payout ratio(consolidated)

Ratio ofdividends to
net assets(consolidated)%%

Fiscal year ended
15.00
20.00 35.00
2,767
15.0
March 31, 2023
Fiscal year ended
17.50
22.50 40.00
3,163
12.7
March 31, 2024
Fiscal year ending
March 31, 2025
17.50
17.50 35.00
17.6(forecast)(Notes) Breakdown of dividends at end of Q2 of fiscal year ended March 31, 2024 Common dividend
17.50 yen
Breakdown of dividends at end of fiscal year ended March 31, 2024
Common dividend
17.50 yen
Commemorative dividend
5.00 yen

1.5
1.5

3. Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2025 (from April 1, 2024 to March 31, 2025)
Operating revenue(Percentages represents changes from the previous corresponding period.)
Profit attributable to
Net income per
Operating income
Ordinary income
owners of parent
share-basic

Millions of yen%

Millions of yen%

First half

210,400

6.7

10,400 (3.5)

Full year

451,100

9.6

24,100 (6.9)

Millions of yen%

Millions of yen

%

Yen

6,200

(43.5)

78.74

15,700(36.5)

199.40(11.0)
22,500 (8.3)
9,400* Notes(1) Changes in important subsidiaries during the period under review (Changes in specified subsidiaries resulting inchanges in scope of consolidation): None(2) Change in accounting policies or estimates and restatements
1) Change in accounting policies due to revisions of accounting: Nonestandards and other regulations
2) Change in accounting policies other than item 1) above: None3) Change in accounting estimates: None4) Restatements: None(3) 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

Fiscal year ended
March 31, 2024

79,360,186 sharesFiscal year ended
March 31, 2023

79,360,186 sharesFiscal year ended
March 31, 2024

674,852 sharesFiscal year ended
March 31, 2023

530,573 sharesFiscal year ended
March 31, 2024

78,738,163 sharesFiscal year ended
March 31, 2023

78,801,276 shares(Notes) The number of treasury stocks includes shares of the Company remaining in the board benefit trust (as of March 31, 2024:
410,569 shares; as of March 31, 2023: 243,225 shares).

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (From April 1, 2023 to March 31, 2024)(1) Non-consolidated operating results(Percentages represent year-on-year changes.)
Operating revenue
Fiscal year ended
March 31, 2024
Fiscal year ended
March 31, 2023

Operating income

Ordinary income

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

165,773(17.0)

11,46918.3

22,01536.2

28,342

128.9

199,705

12.9

9,699

552.7

16,165281.7

12,383185.2

Net income per sharebasic

Net income per sharediluted

Yen

Yen

359.96359.29157.15156.77

Fiscal year ended
March 31, 2024
Fiscal year ended
March 31, 2023

(2) Non-consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

636,123

167,952

26.4

2,131.12

592,010

136,78823.1

1,731.12

Fiscal year ended
March 31, 2024
Fiscal year ended
March 31, 2023

(Reference) Shareholders’ equity

Fiscal year ended March 31, 2024 167,688 million yen
Fiscal year ended March 31, 2023 136,463 million yen<Reason for the difference from previous year’s non-consolidated financial results>
While operating revenue fell due to a decrease in the volume of import and export transaction volume in the Global
Logistics business, ordinary income and net income grew due to an increase in dividend income from subsidiaries
and gain on sales of fixed assets, in addition to an increase in operating income mainly caused by the recovery of
demand in the Transportation business, resulting in differences from the previous fiscal year.
* The current consolidated financial results are not subject to the audit 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 “(4) Outlook” in“1. Overview of Results of Operations, Etc.” on page 7 of the attachments.

○ Table of Contents of Attachments

1. Overview of Results of Operations, Etc. ......................................................................................................................... 2(1) Results of Operations ................................................................................................................................................ 2(2) Financial Position ...................................................................................................................................................... 6(3) Cash Flows ................................................................................................................................................................ 6(4) Outlook ...................................................................................................................................................................... 7
2. Basic Approach to the Selection of Accounting Standards ............................................................................................. 8
3. Consolidated Financial Statements and Key Notes ......................................................................................................... 9(1) Consolidated balance sheet ........................................................................................................................................ 9(2) Consolidated statement of income and consolidated statement of comprehensive income ..................................... 11(3) Consolidated statement of changes in equity ........................................................................................................... 13(4) Consolidated statement of cash flows....................................................................................................................... 15(5) Notes to consolidated financial statements ............................................................................................................... 17(Notes to assumptions of going concern)...................................................................................................................... 17(Segment information) .................................................................................................................................................. 17(Per-share information) ................................................................................................................................................. 19(Material subsequent events) ....................................................................................................................................... 20

1

1.

Overview of Results of Operations, Etc.

(1) Results of Operations(Millions of yen)

Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Operating revenue

494,643

411,649(82,993)(16.8%)

Operating income

26,15025,877(273)(1.0%)

Ordinary income

27,901

24,538(3,363)(12.1%)

Profit attributable to owners ofparent18,36824,723

6,355

34.6%

ChangePercentage change

During the fiscal year under review, the Japanese economy showed a gradual recovery trend under the improved employment andincome environment as social and economic activities normalized mainly due to the reclassification of COVID-19 as a Class 5 disease.
At the same time, prospects remained uncertain mainly due to exchange rate fluctuations, soaring raw material and energy prices, andhigher inflation.
Operating revenue for the fiscal year under review was 411,649 million yen, down 16.8% year-on-year. The reasons include a decreasein the import and export transaction volume owing to sluggish transportation demand in the Global Logistics business under the Logistics
business. However, there was an increase in revenues due to a recovery in demand in the Transportation business and Leisure and Service
business. Accordingly, operating income was 25,877 million yen, down 1.0% year-on-year.
Ordinary income was 24,538 million yen (down 12.1% year-on-year) due partly to an increase in share of loss of entities accounted
for using equity method.
Profit attributable to owners of parent was 24,723 million yen, up 34.6% year-on-year, mainly due to the recording of a gain on saleof fixed assets from the sale of Nishijin Palace and beneficial interests in trust as a result of securitization of real estate.
The Company’s business performance by segment is as follows.
During the fiscal year under review, the reorganization of consolidated subsidiaries accompanying an absorption-type merger took
place; accordingly, changes were made to the segmentation of the relevant consolidated subsidiaries.
The segment information for the previous fiscal year was prepared in accordance with the segments after the change.
(Millions of yen)
Operating revenue
Operating income

Fiscal year Fiscal year
ended
ended
March 31, March 31,
2023
2024

Fiscal year Fiscal year
Percentage
ended
ended
changeMarch 31, March 31,
2023
2024

ChangeChangePercentagechangeTransportation

72,06977,721

5,651

7.8%

76

3,766

3,690

-

Real Estate

78,122

85,945

7,822

10.0%

8,256

11,158

2,901

35.1%

Retail

68,99370,908

1,914

2.8%

87

965

878

-

Logistics

231,813

128,818(102,994)(44.4%)

17,078

4,528(12,550)(73.5%)

Leisure and Services

32,71145,047

12,335

37.7%

84

4,632

4,547

-

Subtotal

483,712408,441(75,270)(15.6%)

25,58425,052(531)(2.1%)

Others30,08630,391

305

1.0%

1,111

1,785

673

60.6%

Adjustments(19,155)(27,183)(8,028)

-

(545)

(960)

(414)

-

Consolidated

494,643

411,649(82,993)(16.8%)

26,15025,877(273)(1.0%)2

1) Transportation
In the Railway and Bus businesses, revenue grew mainly due to the adoption of the railway station barrier-free fare system in the
Railway business and the revision of freight (implemented in January 2024) and others in the Bus business, in addition to an increasein the number of passengers along with a recovery in demand. As a result, operating revenue for the Transportation business was
77,721 million yen (7.8% increase year-on-year), and operating income came to 3,766 million yen (operating income of 76 million
yen for the previous fiscal year).
The number of passengers in the Railway and Bus (public buses) businesses increased 7.0% and 2.6% year-on-year, respectively.
2) Real Estate
In the Leasing business, revenue grew mainly due to an increase in inter-group lease revenue (intersegment transactions) due tochanges in the management structure of the Hotel business and a recovery in lease revenue from commercial facilities. In the
Housing business, sales increased mainly due to sales of condominiums such as Tsukuba Grand Villa and a rise in the unit sales
price from the previous fiscal year. As a result, operating revenue for the Real Estate business was 85,945 million yen (10.0%
increase year-on-year), and operating income posted 11,158 million yen (35.1% increase year-on-year).
The number of units sold was 832 (down 88 units year-on-year).
3) RetailIn the Supermarkets/Liquor Stores business, sales increased mainly due to the contribution of new stores opened in the previous
fiscal year and a reflection of an increase in wholesale prices in sales prices. As a result, operating revenue for the Retail business
was 70,908 million yen (2.8% increase year-on-year), and operating income came to 965 million yen (operating income of 87
million yen for the previous fiscal year).
4) Logistics
In the Global Logistics business, the import and export transaction volume decreased due to weak transportation demand,
resulting in a decrease in revenues. As a result, operating revenue for the Logistics business was 128,818 million yen (44.4%
decrease year-on-year), and operating income was 4,528 million yen (down 73.5% year-on-year).
International cargo volume was down 25.4% year-on-year in Air exports, down 16.1% year-on-year in Air imports, down 3.2%
year-on-year in Ocean exports, and down 7.4 year-on-year in Ocean imports.
5) Leisure and Services
In the Hotel business, revenue grew due to an increase in the occupancy rate and average daily rate, reflecting a recovery indemand, as well as the opening of Nishitetsu Hotel Croom Hakata Gion Kushida Jinja-mae in April 2023. As a result, operating
revenue for the Leisure and Services business was 45,047 million yen (37.7% increase year-on-year), and operating income came
to 4,632 million yen (operating income of 84 million yen for the previous fiscal year).
6) Others
Other operating revenue was 30,391 million yen (1.0% increase year-on-year) mainly due to an increase in orders received in the
Vehicle Maintenance-related business while operating income was 1,785 million yen (60.6% increase year-on-year).

3

(Statement of Income by Segment)(Millions of yen)
Operating revenue

Operating income (loss)

Fiscal year
ended March
31, 2023

Fiscal year
ended March
31, 2024

Percentagechange (%)

Fiscal year
ended March
31, 2023

ChangeFiscal year
ended March
31, 2024

ChangePercentagechange (%)

Transportation

72,06977,721

5,651

7.8

76

3,766

3,690

-

Railway

19,506

21,784

2,277

11.7

909

2,476

1,566

48,84552,572

3,727

7.6(1,096)

1,155

2,252

[45,302][49,155][3,853]

[8.5]

-

Other

12,445

13,778

1,333

10.7

Adjustments(8,727)(10,414)(1,687)

Real Estate

78,122

85,945

7,822

Leasing

25,16731,506

Housing

44,237

Other
Adjustments

Bus(Bus, net)

*1

-

172.3
-

-

291

352

60

(27)

(217)

(190)

10.0

8,256

11,158

2,901

35.1

6,338

25.2

4,475

6,769

2,294

51.3

44,771

534

1.2

3,350

4,091

741

22.1

13,354

14,241

886

6.6

560

545

(14)

(2.7)

(4,635)(4,573)

62

(129)

(248)

(118)

-

68,99370,908

1,914

2.8

87

965

878

-

Supermarkets/liquor stores

63,80465,367

1,562

2.4

171

843

671

390.9

Sales of miscellaneous everyday items

5,191

5,541

350

6.8

117

231

114

96.9

(2)

(0)

2

-

(202)

(109)

92

-

231,813

128,818(102,994)(44.4)

17,078

4,528(12,550)(73.5)

Global logistics

247,340

138,653(108,687)(43.9)

17,197

4,696(12,500)(72.7)

Domestic logistics

10,345

10,595

249

2.4

110

145

35

31.9

Adjustments(25,872)(20,429)

5,443

(228)

(313)

(84)

-

32,71145,047

12,335

37.7

84

4,632

4,547

-

Hotel

26,981

26,401

(579)

(2.1)

(1,488)

2,594

4,082

-

(Hotel, net)*2[16,286][26,369][10,082][61.9]-

Travel

2,633

2,939

305

11.6

196

375

179

91.5

Facility outline

4,243

4,905

661

15.6

712

970

258

36.2

Other

10,79012,130

1,340

12.4

627

815

188

29.9

Adjustments(11,937)(1,330)10,607

-

36

(124)

(161)

-

483,712408,441(75,270)(15.6)

25,58425,052

(531)

(2.1)

Others30,08630,391

305

1.0

1,111

1,785

673

60.6

Adjustments(19,155)(27,183)(8,028)

-

(545)

(960)

(414)

-

Consolidated

494,643

411,649(82,993)(16.8)

26,15025,877

(273)

(1.0)

RetailAdjustments
Logistics

Leisure and Services

Subtotal---*1 Operating revenues for the Bus business, excluding intercompany transactions, increased 8.5%.
*2 Operating revenues for the Hotel business, excluding intercompany transactions, increased 61.9%.

4

-

20.9
-

-

-

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

Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Percentage change(%)

ChangeNumber of passengers

Thousandpassengers

96,357103,057

6,700

7.0

Non-commuter

Thousandpassengers

40,51344,719

4,206

10.4

CommuterThousandpassengers

55,84458,3382,494

4.5

Passenger revenue

Millions ofyen

18,563

20,772

2,208

11.9

Non-commuter

Millions ofyen

11,004

12,756

1,751

15.9

CommuterMillions of
yen

7,559

8,015

456

6.0

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

Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Percentage change(%)

ChangeNumber of passengers

Thousandpassengers

209,330

214,869

5,539

2.6

Non-commuter

Thousandpassengers

119,637

124,601

4,964

4.1

CommuterThousandpassengers

89,69390,268575

0.6

Passenger revenue

Millions ofyen

40,01543,343

3,327

8.3

Non-commuter

Millions ofyen

29,48532,766

3,280

11.1

CommuterMillions ofyen

10,530

10,57646

0.43) Number of units sold (Real Estate)
Unit

Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Percentage change(%)

ChangeNumber of units sold

Unit

920

832

(88)

(9.6)

Condominium

Dwelling unit

763

701

(62)

(8.1)

Detached house

Unit

142

117

(25)

(17.6)

Dwelling unit

15

14

(1)

(6.7)

Renovation

4) Transaction volume of international cargo (Logistics)
Unit

Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Percentage change(%)

ChangeAir Export

Thousand tons

127

95

(32)

(25.4)Air ImportThousand
cases

375

314

(60)

(16.1)

Ocean Export

Thousand
TEU

102

99

(3)

(3.2)

Ocean ImportThousand
TEU

140

129

(10)

(7.4)

5) Average daily rate (ADR) of hotels targeting mainly domestic customers, occupancy rate (OCC) and revenue per available
room (Rev PAR) (Leisure and Services)
Fiscal year ended
Fiscal year ended
Percentage change
ChangeUnit
March 31, 2023
March 31, 2024
(%)
ADR

Yen

8,736

[8,736]

11,576 [11,542]

OCC

%

70.6

[70.6]

78.6

Rev PAR

Yen

6,167

[6,167]

9,098

2,840

[2,806]32.5[77.8]

8.0P[7.2P]-[8,981]

2,931[2,814]47.5[32.1][45.6]

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

5(2) Financial Position(Millions of yen)
Fiscal year ended March 31, Fiscal year ended March 31,
2023
2024

ChangeTotal Assets

685,795

727,00241,207

Total Liabilities

483,913491,163

7,249

Total Net Assets

201,881

235,839

33,957

Interest-bearing debt

334,875

316,838(18,036)(Note) Interest-bearing debt is the sum of borrowings and bonds payable.
Assets rose 41,207 million yen from the end of the previous fiscal year to 727,002 million yen mainly due to an increase inproperty, plant and equipment while notes and accounts receivable - trade, and contract assets decreased.
Liabilities rose 7,249 million yen from the end of the previous fiscal year to 491,163 million yen mainly due to an increase innotes and accounts payable - trade while interest-bearing debt decreased.
Net assets rose 33,957 million yen from the end of the previous fiscal year to 235,839 million yen mainly due to an increase inretained earnings chiefly owing to the posting of profit attributable to owners of parent and an increase in valuation difference on
available-for-sale securities.

(3) Cash Flows(Millions of yen)

Cash and cash equivalents at end of period

Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

72,55968,745

Change(3,814)

Full year
ChangeFiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Cash flows from operating activities

43,77562,213

18,437

Cash flows from investing activities(24,600)(42,028)(17,428)

Free cash flows (operating activities + investing activities)

19,174

20,184

1,009

Cash flows from financing activities(19,164)(25,959)(6,795)

Cash and cash equivalents as of the end of the fiscal year under review decreased 3,814 million yen from the end of the previous
fiscal year to 68,745 million yen.
Net cash provided by operating activities totaled 62,213 million yen, an increase of 18,437 million yen from the previous fiscal
year, mainly due to profit before income taxes of 39,428 million yen, depreciation of 18,306 million yen, and a decrease in tradereceivables of 13,219 million yen.
Net cash used in investing activities totaled 42,028 million yen, an increase of 17,428 million yen from the previous fiscal year,
mainly due to the purchase of non-current assets of 56,048 million yen and loan advances of 4,278 million yen.
Net cash used in financing activities totaled 25,959 million yen, an increase of 6,795 million yen from the previous fiscal year,
mainly due to a net decrease in borrowings of 22,105 million yen and dividends paid of 2,958 million yen.

6(4) Outlook
For the fiscal year ending March 2025, we expect operating revenue of 451,100 million yen (up 9.6% from the previous fiscal
year) mainly due to an increase in the number of units sold in the Housing business of the Real Estate business, in addition to anincrease in trading volume in the Global Logistics business of the Logistics business.
Operating income is expected to be 24,100 million yen (down 6.9% from the previous fiscal year) mainly due to expenses incurredfrom the completion of “ONE FUKUOKA BLDG.,” a rebuilding project for the Fukuoka Building Block in the Leasing businessin the Real Estate business.
Ordinary income is expected to be 22,500 million yen (down 8.3% from the previous fiscal year), and profit attributable to ownersof parent is expected to be 15,700 million yen (down 36.5% from the previous fiscal year) mainly due to a decrease in extraordinary
income.
(Millions of yen)

Operating revenue

Fiscal year ended March Fiscal year ending March
31, 2024 (results)
31, 2025 (forecast)
411,649
451,100

39,450Percentagechange9.6%

ChangeOperating income

25,877

24,100(1,777)(6.9%)

Ordinary income
Profit attributable toowners of parent

24,53822,500(2,038)(8.3%)

24,72315,700(9,023)(36.5%)(Millions of yen)
Operating revenue
Fiscal year
Fiscal year
ending March
ended March 31,
31, 2025
2024 (results)(forecast)

Operating income

ChangeFiscal year
Fiscal year ended
Percentage
ending March
March 31, 2024
change31, 2025(results)(forecast)

ChangePercentagechangeTransportation

77,72181,300

3,578

4.6%

3,766

4,800

1,033

27.4%

Real Estate

85,94590,500

4,554

5.3%

11,1588,800(2,358)(21.1%)

Retail

70,90872,600

1,691

2.4%

965

600

(365)

(37.9%)

Logistics

128,818

150,900

22,081

17.1%

4,528

5,100

571

12.6%

Leisure and Services

45,047

48,400

3,352

7.4%

4,632

4,300

(332)

(7.2%)

Subtotal

408,441

443,700

35,258

8.6%

25,052

23,600(1,452)(5.8%)

Others30,391

32,400

2,008

6.6%

1,785

1,400

(385)

(21.6%)

Adjustments(27,183)(25,000)

2,183

-

(960)

(900)

60

-

Consolidated

411,649

451,100

39,4509.6%

25,877

24,100(1,777)(6.9%)*The forecasts have been prepared based on information currently available to the Company, and actual results may differ from theforecasts due to various factors in the future.

7

2.

Basic Approach to the Selection of Accounting Standards
The Group prepares its consolidated financial statements in accordance with Japanese GAAP. However, we intend to respond
appropriately to the adoption of International Financial Reporting Standards (IFRS), with consideration given to internal and external
circumstances.

8

3.

Consolidated Financial Statements and Key Notes(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2023

As of March 31, 2024

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

72,796

69,62459,54649,12363,898
3,971
237
2,176
17,383(268)

67,085
3,970
258
2,225
16,726(237)

Total current assets

219,742

208,778

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

190,327
12,616130,871
29,080
10,312

192,162
14,565
141,769
56,087
11,503

Total property, plant and equipment

373,207416,088

321
3,523

305
3,663

3,844

3,968

56,163
3,787
8,159
21,207(317)

68,547
4,137
2,162
23,623(304)

Intangible assets
Goodwill
OthersTotal intangible assets
Investments and other assets
Investment securities
Retirement benefit assets
Deferred tax assets
OthersAllowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total Assets

989,00098,167

466,053518,224

685,795

727,002

(Millions of yen)
As of March 31, 2023

As of March 31, 2024

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

43,561
49,16365,01847,161

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

7,000
1,132
2,850
5,739
6,355
340
28,282

10,000
4,872
5,955
2,424

Total current liabilities

144,426

170,833

Bonds payable
Long-term borrowings
Deferred tax liabilities
Other provisions
Retirement benefit liability
Long-term guarantee deposits
Others145,000
133,711109
569
21,96730,2187,910

145,000
114,677
3,993
656
16,84331,0508,108

Total long-term liabilities

339,486

320,329

Total Liabilities

483,913491,163

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

26,157
12,608143,194(1,166)26,157
12,137
164,941(1,576)

180,794

201,659

8,182

14,598

(195)
5,293
718

96
9,029

13,99927,373

324

263

7,088
387
27,925Long-term liabilities

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total Net Assets
Total liabilities and net assets

10

3,648

6,763

6,542

201,881

235,839685,795

727,002(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024
494,643

411,649

Operating expenses and cost of sales of transportation
Selling, general and administrative expenses

438,461
30,030355,558
30,213

Total operating expenses

468,492

385,771

Operating income

26,15025,877

Non-operating income
Interest income
Dividend income
Miscellaneous income

257
1,238
3,149

613
1,707
2,191

4,645

4,512

2,197

2,283

416

3,158

282

409

Operating revenue
Operating expenses

Total non-operating income
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

2,895

5,851

27,901

24,538

121

14,124

Advances received on construction contracts
Contribution for construction
Others75,274
795
1,411

9,224
700
1,023

Total extraordinary income

77,60325,072

74,254

9,187

3,060
300
243

768
200
26

Extraordinary losses
Loss on reduction of non-current assets for tax
purposes
Loss on retirement of non-current assets
Impairment losses
OthersTotal extraordinary losses

77,858

10,182

Income before income taxes

27,64639,428

Income taxes - current
Income taxes - deferred

6,887
1,236

8,080
5,766

Total income taxes

8,124

13,846

Profit19,52225,581

Profit attributable to non-controlling interests

1,154

858

Profit attributable to owners of parent

18,36824,72311

Consolidated statement of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

ProfitOther comprehensive income
Valuation difference on available-for-sale securities

19,52225,581

1,637

6,404

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 income

(8)
2,961
225

7
2,503
2,929

1,706

1,715

6,522

13,561

Comprehensive income

26,045

39,143(Components)
Comprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

24,69338,097

1,352

1,045

12

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders’ equity
Commonstock
Balance at beginning of
periodCapitalsurplus26,157Retainedearnings

12,608Treasurystock

127,430(1,278)

Total
shareholders’equity164,918

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesTransfer from retained
earnings to capitalsurplus
Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period(2,568)(2,568)18,36818,368

(35)

(8)

(8)

119

83

35

(35)

-

-

15,764111

15,875

26,157

12,608143,194(1,166)

180,794

Accumulated other comprehensive income
Valuationdifference on
available-forsale
securities
Balance at beginning of
period6,544

Deferred
gains orlosses onhedges(591)

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensi
ve income

Subscription
rights toshares

Noncontrollinginterests

1,227

492

7,674

405

6,085

Total Net
Assets179,084

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesTransfer from retained
earnings to capitalsurplus
Net changes in items
other than shareholders’equity(2,568)18,368
(8)
83
-

1,638

395

4,065

225

6,324

(81)

678

6,921

Total changes during period

1,638

395

4,065

225

6,324

(81)

678

22,797

Balance at end of period

8,182

(195)

5,293

718

13,999324

6,763

201,88113

Fiscal year ended March 31, 2024
(Millions of yen)
Shareholders’ equity
Commonstock
Balance at beginning of
periodCapitalsurplus26,157Retainedearnings

12,608Treasurystock

143,194(1,166)

Total
shareholders’equity180,794

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesPurchase of shares of
consolidated subsidiaries
Transfer from retained
earnings to capitalsurplus
Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period(2,965)(2,965)24,72324,723

(11)

(513)

(513)

104

92

(471)

(471)

11

(11)

-

(471)

21,746(409)

20,865

26,157

12,137

164,941(1,576)201,659

Accumulated other comprehensive income
Valuationdifference on
available-forsale
securities
Balance at beginning of
period8,182

Deferred
gains orlosses onhedges(195)

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensi
ve income

Subscription
rights toshares

Noncontrollinginterests

5,293

718

13,999324

6,763

Total Net
Assets201,881

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesPurchase of shares of
consolidated subsidiaries
Transfer from retained
earnings to capitalsurplus
Net changes in items
other than shareholders’equity(2,965)24,723
(513)
92
(471)
-

6,416

292

3,735

2,929

13,373

(60)

(220)

13,092

Total changes during period

6,416

292

3,735

2,929

13,373

(60)

(220)

33,957

Balance at end of period

14,598

96

9,029

3,648

27,373

263

6,542

235,83914

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2023
Cash flows from operating activities
Income before income taxes
Depreciation

Fiscal year ended
March 31, 2024

27,646
18,35439,42818,306

174
300
1,503

38
200
248

74,254

9,187(76,070)(9,924)

416

3,158

(121)
1,746

(14,124)
732

Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Increase (decrease) in other provisions
Interest and dividend income
Interest expenses
Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other assets

(174)
(221)
285
(1,496)
2,197(1,411)
3,955(4,185)
4,173

(354)
140
134
(2,320)2,283(5)13,219(3,143)(2,718)

Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Increase (decrease) in guarantee deposits received
Increase (decrease) in other liabilities
Others(1,718)(4,186)
2,428
2,014
404

5,169
7,484
827
(789)
(1,058)Subtotal

50,267

66,119Interest and dividends received
Interest paid
Income taxes paid

1,832
(2,105)(6,218)3,287(2,120)(5,073)

Cash flows from operating activities

43,77562,213(22,262)857(6,140)1,792(1,544)
9(56,048)
16,936(3,994)
1,990(2,057)41

14-(5,098)
3,571
4,009
191

(4,278)
6
5,669
(295)

(24,600)(42,028)

Amortization of goodwill
Impairment losses
Loss on retirement of non-current assets
Loss on reduction of non-current assets for tax
purposes
Contribution for construction
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on sale of non-current assets
Increase (decrease) in provision for bonuses

Cash flows from investing activities
Purchase of non-current assets
Proceeds from sale of non-current assets
Purchase of investment securities
Proceeds from sale of investment securities
Payments for investments in capital
Proceeds from divestments
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Loan advances
Proceeds from collection of loans receivable
Proceeds from contribution received for construction
OthersCash flows from investing activities

15

(Millions of yen)
Fiscal year ended
March 31, 2024
(From April 1, 2023 toMarch 31, 2024)

Fiscal year ended
March 31, 2023
(From April 1, 2022 toMarch 31, 2023)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings

415
10,100(1,293)
4,068

Repayments of long-term borrowings
Proceeds from issuance of bonds
Payments for redemption of bonds
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Proceeds from sale of treasury shares
Purchase of treasury shares
Repayments of lease liabilities
Dividends paid
Dividends paid to non-controlling interests(24,647)-(24,880)
10,000

-

(611)

2
(8)
(1,568)(2,566)
(891)

53
(513)
(1,696)(2,958)(1,128)Cash flows from financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents(19,164)(25,959)

1,936

1,961

1,946

(3,814)

Cash and cash equivalents at beginning of period

70,612

72,559Cash and cash equivalents at end of period

72,55968,74516(7,000)(5) Notes to consolidated financial statements(Notes to assumptions of going concern)
Not applicable.
(Segment information)
1 Overview of reportable segments
The Group’s reportable segments are the components of the Group for which separate financial information is available and which
are subject to periodic review by the Board of Directors to determine the allocation of management resources and to assess performance.
The Group is engaged in a wide range of business activities centering on the Transportation business, including the Railway and Bus
businesses. The business operations are managed by classifying the businesses of the Company and group companies by business type.
Accordingly, the Group consists of five reportable business segments: Transportation, Real Estate, Retail, Logistics, and Leisureand Services. Transportation includes the Railway business and the Bus business. Real Estate includes the Leasing business and the
Housing business. Retail includes the Supermarkets/liquor stores business. Logistics includes the Global Logistics business. Leisureand Services includes the Hotel business, Travel business, and Advertising business.
2 Information related to operating revenue, profit or loss, and other items for each reportable segment
Fiscal year ended March 31, 2023

(Millions of yen)
Reportable segment
Transportation Real Estate

RetailLogistics

Leisure andServices

Total

Others(Note) 1

Amountrecorded in
Adjustments Consolidated
Financial
Statements

Operating revenue(1) Operating revenue to71,19472,800 68,926
231,370
29,746474,038
20,604
494,643
external customers(2) Intersegment
operating revenue
875
5,322
67
443
2,965
9,673
9,481
(19,155)
and transfers
Total
72,06978,122 68,993
231,81332,711
483,71230,086(19,155)494,643
Segment income (loss)
76
8,256
87
17,07884
25,584
1,111(545)
26,150
Other Items
Depreciation
6,387
5,710
866
1,911
2,697
17,573
1,166(385)
18,354
Amortization of
48
126
174
174
goodwill
Impairment losses
11
285
297
3
300
(Notes) 1. “Other” consists of business segments that are not included in any of the reportable segments and includes the IC cardbusiness, the Vehicle Maintenance-related business, the Construction-related business, and the Metal Recycling business.
2. The segment information above was prepared and shown according to the changed classification of reportable segments
following the reorganization of consolidated subsidiaries.
Fiscal year ended March 31, 2024

(Millions of yen)
Reportable segment
Transportation Real Estate

RetailLogistics

Leisure andServices

Total

Others(Notes)Amountrecorded in
Adjustments Consolidated
Financial
Statements

Operating revenue(1) Operating revenue to76,891
74,849 70,799
128,217
41,320392,078
19,571
411,649
external customers(2) Intersegment
operating revenue
829
11,096
109
601
3,727
16,363
10,820(27,183)
and transfers
Total
77,721
85,945 70,908
128,818
45,047
408,441
30,391(27,183)
411,649
Segment income (loss)
3,766
11,158
965
4,528
4,632
25,052
1,785(960)
25,877
Other Items
Depreciation
6,537
6,983
874
2,056
1,229
17,681949(324)
18,306
Amortization of
38
38
38
goodwill
Impairment losses
130
70
200
200
(Notes) “Other” consists of business segments that are not included in any of the reportable segments and includes the IC cardbusiness, the Vehicle Maintenance-related business, the Construction-related business, and the Metal Recycling business.

17

3

Difference between the total amount of reportable segment income and the amount recorded in the consolidated financial statements
and major breakdown of such differences (matters relating to adjustment of differences)(Millions of yen)
Fiscal year ended
March 31, 2023

ProfitFiscal year ended
March 31, 2024

Reportable segment total

25,58425,052

Profit in the “Other” category

1,111

1,785

Elimination of intersegment transactions

273

125

Corporate expenses (Note 1)(819)(1,085)

Operating income in consolidated financial statements

26,15025,877(Notes) 1. Corporate expenses are primarily administrative expenses of the parent company not attributable to any reportablesegment.
2. The segment information for the previous fiscal year was prepared and shown according to the changed classification ofreportable segments following the reorganization of consolidated subsidiaries.
Fiscal year ended March 31, 2023

(Millions of yen)
Other Items

Reportable segment
total

Depreciation
Impairment losses

OthersAmount recorded in
Consolidated Financial
Statements

Adjustments

17,573

1,166

(385)

18,354

297

3

-

300

(Notes) The segment information above was prepared and shown according to the changed classification of reportable segments
following the reorganization of consolidated subsidiaries.
Fiscal year ended March 31, 2024

(Millions of yen)
Other Items
Depreciation
Impairment losses
4

Reportable segment
total

OthersAmount recorded in
Consolidated Financial
Statements

Adjustments

17,681949(324)

18,306

200

-

-

200

Matters related to changes to reportable segments, etc.
During the fiscal year under review, Nishitetsu Building Management Co., Ltd. in “Real Estate” merged with Nishitetsu Densetsu
Kogyo Co., Ltd. in “Others” with the aim of further improving the efficiency of group management. As a result of this reorganization,
the business of Nishitetsu Densetsu Kogyo Co., Ltd. was changed from “Others” to “Real Estate.”
The segment information for the previous fiscal year was prepared in accordance with the segments after the change.

18

(Per-share information)

Item

Fiscal year ended March 31, 2023

Net assets per share

Fiscal year ended March 31, 2024

2,471.07 yen

2,910.74 yen

Net income per share-basic

233.10 yen

314.00 yen

Net income per share-diluted

232.54 yen

313.41 yen(Notes)1. The basis for calculating net income per share and diluted net income per share is as follows:

Fiscal year ended March 31,
2023

Fiscal year ended March 31,
2024

18,36824,723--

Profit attributable to owners of parent relating to commonshares (millions of yen)

18,36824,723

Average number of shares outstanding during the period(thousands of shares)

78,80178,738Adjustments of profit attributable to owners of parent (millionsof yen)--Increase in the number of common shares (thousands of shares)

189

147

(Share acquisition rights (thousands of shares))

(189)

(147)

-

-

Net income per share-basic
Profit attributable to owners of parent (millions of yen)Amount not attributable to common shareholders (millions ofyen)

Net income per share-diluted

Summary of dilutive shares that were not included in thecalculation of diluted net income per share because of theiranti-dilutive effect
2. The basis for calculating net assets per share is as follows:

As of March 31, 2023
Total net assets (millions of yen)

As of March 31, 2024

201,881

235,839

Amount to be deducted from total net assets (millions of yen)

7,088

6,806

(Share acquisition rights (millions of yen))

(324)

(263)

(Non-controlling interests (millions of yen))(6,763)(6,542)

Net assets at the end of the period relating to common shares(millions of yen)

194,793

229,032

Number of common shares at the end of the period used to
calculate net assets per share (thousands of shares)

78,82978,685

3. For calculating net income per share and diluted net income per share, average number of shares outstanding during theperiod excludes the Company’s shares held by the Board Benefit Trust (243,000 shares in the previous fiscal year and
340,000 shares in the fiscal year under review).

19

(Material subsequent events)(Issuance of bonds)
Based on a resolution by the Board of Directors on March 21, 2024, the Company issued its 55th Unsecured Bond (with pari passu
clause limited to the bonds) (Green Bond) and 56th Unsecured Bond (with pari passu clause limited to the bonds) (Green Bond) on
April 11, 2024.
Their summary is as follows:
Type of corporate bond

55th Unsecured Bond (with pari passu clause limited to the bonds) (Green Bond)

Amount of bonds

15 billion yen

Issuance price

100 yen per 100 yen of the amount of each corporate bondInterest rate

0.667% per annum

Redemption date

April 11, 2029

Use of funds

ONE FUKUOKA BLDG. construction work

Type of corporate bond

56th Unsecured Bond (with pari passu clause limited to the bonds) (Green Bond)

Amount of bonds

15 billion yen

Issuance price

100 yen per 100 yen of the amount of each corporate bondInterest rate

1.125% per annum

Redemption date

April 11, 2034

Use of funds

ONE FUKUOKA BLDG. construction work

(Purchase of treasury shares)
At a meeting of the Board of Directors held on May 10, 2024, the Company passed a resolution on matters pertaining to theacquisition of treasury stock in accordance with Article 156 of the Companies Act as applied mutatis mutandis pursuant to Article 165,
Paragraph 3 of the said Act.
Their summary is as follows:
1. Reasons for purchase of treasury shares
The Company purchases treasury shares in order to implement a flexible capital policy in response to changes in the businessenvironment and to improve capital efficiency.
When purchasing treasury shares, the Company will use funds from the sale of policy shareholdings through a review on the sizeof its holdings in accordance with the purpose of holding such shares.
2. Details of matters relating to purchase(1)

Type of shares to be purchased(2)

Total number of shares that may be purchased 1.5 million shares (maximum) (1.90% of the total number of shares issued

Shares of the Company’s common stock(3)

Total acquisition cost of shares

3 billion yen (maximum)(4)

Acquisition period

May 13, 2024 – November 29, 2024

(5)

Method of acquisition

Market purchase on the Tokyo Stock Exchange(excluding treasury stock))(Reference) Treasury stock holdings as of March 31, 2024
Total number of shares issued (excluding treasury shares)

79,095,903 shares

Number of treasury shares

264,283 shares20