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 Three Months Ended June 30, 2023
(Under Japanese GAAP)
August 10, 2023
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 filing date of quarterly securities report:: August 10, 2023
Scheduled commencement date of dividend payments::Preparation of supplementary materials for quarterly financial results : Yes
Holding of quarterly financial results meeting: None(Amounts rounded down to the nearest million yen.)
1. Consolidated Financial Results for the Three Months Ended June 30, 2023 (from April 1, 2023 to June 30, 2023)(1) Consolidated operating results (year to date)(Percentages represent year-on-year changes.)
Operating revenue

Operating income

Profit attributable toowners of parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

96,816(19.3)

5,411

(1.1)

6,950

14.2

9,390

139.6

119,950

34.8

5,471

-

6,087

-

3,919

-

Three months ended
June 30, 2023
Three months ended
June 30, 2022

(Notes) Comprehensive income

Three months ended June 30, 2023 12,643 million yen (87.4%)
Three months ended June 30, 2022 6,748 million yen (-%)

Net income pershare-basic
Three months ended
June 30, 2023
Three months ended
June 30, 2022

Net income pershare-diluted
Yen

Yen

119.12118.84

49.75

49.60

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

683,632
685,795

212,371
201,881

30.1
28.4

As of June 30, 2023
As of March 31, 2023

(Reference) Shareholders’ equity As of June 30, 2023
As of March 31, 2023
2. Dividends

205,535 million yen
194,793 million yen

Annual dividends
End of Q1
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
Fiscal year ending
March 31, 2024 (forecast)End of Q2

End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

-

15.00

-

20.00

35.00

17.50

-

17.50

35.00

-

(Notes) Revision of the dividend forecast most recently announced : None

3. Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Operating revenue
Millions of yen

First half
Full year(Percentages represent changes from the previous corresponding period.)
Profit attributable to Net income per
Operating income
Ordinary income
owners of parent
share-basic% Millions of yen

205,700 (18.9)
436,000 (11.9)%

7,500 (34.9)
17,300 (33.8)

Millions of yen% Millions of yen

6,400 (51.4)
13,300 (52.3)(Notes) Revision of the consolidated financial forecast most recently released : Yes%

Yen

7,800 (11.2)
10,800 (41.2)

98.94
137.00* Notes(1) Changes in important subsidiaries during the period under review (Changes in specified subsidiaries resulting
in changes in scope of consolidation): None(2) Adoption of special accounting treatment used in preparation of the quarterly consolidated financial statements: None(3) Change in accounting policies or estimates and restatements
1) Change in accounting policies due to revisions of accounting
standards and other regulations: None2) Change in accounting policies other than item 1) above: None3) Change in accounting estimates: None4) Restatements: None(4) Number of shares issued (common stock)1) Number of shares issued at the end of the
As of June 30,
As of March 31,
79,360,186 shares
79,360,186 shares
2023
2023
period (including treasury stock)2) Number of treasury stocks at the end of the
As of June 30,
As of March 31,
515,667 shares
530,573 shares
2023
2023
periodmonthsThree months
3) Average number of shares outstanding during Three
ended June 30,
78,833,350 shares ended June 30,
78,773,863 sharesthe period (year to date)
2023
2022
(Note) The number of treasury stocks includes shares of the Company remaining in the board benefit trust (asof June 30, 2023: 232,569 shares; as of March 31, 2023: 243,225 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 notguarantee they will be achieved. 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) Explanation of
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
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
2. 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) ..................................................................................................................................................................... 12(Material subsequent events) ........................................................................................................................................................... 12
1.

1

1. Qualitative Information on Quarterly Financial Results under Review(1) Explanation of operating results(Millions of yen)Three months ended Three months ended
June 30, 2022
June 30, 2023

ChangePercentage change

Operating revenue

119,950

96,816(23,134)(19.3%)

Operating income

5,471

5,411

(59)

(1.1%)

Ordinary income

6,087

6,950

862

14.2%

Profit attributable toowners of parent

3,919

9,390

5,471

139.6%

Operating revenue for the three-month period under review was 96,816 million yen, down 19.3% year-on-year. The reasons include
a decrease in 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 andLeisure and Service business as social and economic activities have normalized mainly due to the reclassification of COVID-19 as aClass 5 disease. Accordingly, operating income was 5,411 million yen, down 1.1% year-on-year.
Ordinary income was 6,950 million yen, up 14.2% year-on-year, mainly due to an improvement in share of profit and loss of entities
accounted for using equity method resulting from the partial sale of beneficial interests in trust at Daimyo Project Special Purpose
Company, an entity accounted for using the equity method.
Profit attributable to owners of parent was 9,390 million yen, up 139.6% year-on-year, mainly due to the recording of gain on sale of
fixed assets from the sale of Nishijin Palace, etc.

The Company’s business performance by segment is as follows.
At the beginning of the first quarter of the current fiscal year, the reorganization of consolidated subsidiaries accompanying anabsorption-type merger took place; accordingly, changes were made to the segmentation of the relevant consolidated subsidiaries.
The segment information for the three-month period in the previous fiscal year was prepared and shown in accordance with theclassification after the change.
(Millions of yen)
Operating income (loss)

Operating revenue

Three months Three months
ended June
ended June30, 2022
30, 2023

ChangePercentagechangeThree months Three months
ended June
ended June30, 2022
30, 2023

ChangePercentagechangeTransportation

17,38018,765

1,385

8.0%

(78)

916

994

-

Real Estate

14,277

14,431

153

1.1%

1,127

1,647

519

46.1%

Retail

16,672

17,065

392

2.4%

(95)

77

172

-

Logistics

62,52836,233(26,295)(42.1%)

5,358

2,075

(3,282)(61.3%)

Leisure and Services

6,634

9,796

3,162

47.7%

(885)

786

1,671

-

Subtotal

117,494

96,292(21,202)(18.0%)

5,427

5,503

76

1.4%

Others

6,379

6,500

120

1.9%

163

141

(21)

(13.2%)

Adjustments(3,922)(5,976)(2,053)

-

(118)

(233)

(114)

-

Consolidated

119,950

96,816(23,134)(19.3%)

5,471

5,411

(59)

(1.1%)2

1) Transportation
In the Railway and Bus businesses, revenue grew mainly due to an increase in the number of passengers along with a recovery
in demand, and the adoption of the railway station barrier-free fare system in the Railway business. As a result, operating revenue
for the Transportation business was 18,765 million yen (8.0% increase year-on-year), and operating income came to 916 million
yen (operating loss of 78 million yen for the same period of the previous fiscal year).
The number of passengers in the Railway and Bus (public buses) businesses increased 7.1% and 4.3% year-on-year, respectively.
2) Real Estate
In the Housing business, revenue fell mainly due to a decrease in the number of condominium units sold. However, in the Leasing
business, revenue grew mainly due to an increase in inter-group lease revenue (intersegment transactions) due to changes in the
management structure of the Hotel business and a recovery in lease revenue from commercial facilities. As a result, operating
revenue for the Real Estate business was 14,431 million yen (1.1% increase year-on-year), and operating income posted 1,647
million yen (46.1% increase year-on-year).
The number of units sold was 76 (down 26 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 17,065 million yen (2.4% increase year-on-year), and operating income was 77 million yen (operating loss of 95 million yen
for the same period of 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 36,233 million yen (42.1% decreaseyear-on-year), and operating income came to 2,075 million yen (61.3% decrease year-on-year).
International cargo volume decreased 33.3% year-on-year in Air exports, 18.4% year-on-year in Air imports, 11.5% year-onyear in Ocean exports, and 10.6% 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 9,796 million yen (47.7% increase year-on-year), and operating income
amounted to 786 million yen (operating loss of 885 million yen for the same period of the previous fiscal year).
6) Others
Other operating revenue was 6,500 million yen (1.9% increase year-on-year) mainly due to higher revenue from an increase inorders received in the Vehicle Maintenance related business. Operating income amounted to 141 million yen (13.2% decrease yearon-year) due to an increase in expenses including depreciation in the IC Card business.

3

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

Operating revenue
Percentagechange (%)

Three months
ended June 30,
2022

Three months
ended June 30,
2023

1,385

8.0

(78)

916

994

-

5,344

598

12.6

546

901

354

64.9

11,90912,781

872

7.3

(559)

140

699

-

[11,032][11,947]

[915]

[8.3]

-

-

-

-

Other

2,605

2,532

(72)

(2.8)

(114)

(101)

12

-

Adjustments(1,879)(1,893)

(13)

-

48

(23)

(72)

-

Real Estate

14,277

14,431

153

1.1

1,127

1,647

519

46.1

Leasing

5,999

7,516

1,516

25.3

1,233

1,676

442

35.9

Housing

6,288

4,804

(1,484)(23.6)

(207)

(55)

152

-

Other

3,040

3,050

9

0.3

111

98

(12)

(11.2)

Adjustments(1,051)

(939)

111

-

(9)

(72)

(62)

-

16,672

17,065

392

2.4

(95)

77

172

-

Supermarkets/liquor stores

15,477

15,779

301

1.9

(90)

64

154

-

Sales of miscellaneous everyday
items

1,195

1,285

89

7.5

6

35

28

406.3

(0)

(0)

0

-

(11)

(21)

(10)

-

62,52836,233(26,295)(42.1)

5,358

2,075

(3,282)(61.3)

Global logistics

71,63838,024(33,613)(46.9)

5,357

2,082

(3,275)(61.1)

Domestic logistics

2,639

2,587

(51)

(2.0)

66

42

(23)

(35.3)(11,749)(4,379)

7,370

-

(65)

(50)

15

-

6,634

9,796

3,162

47.7

(885)

786

1,671

-

5,495

5,570

74

1.4

(989)

320

1,309

-

[3,069][5,570][2,500][81.5]----

Travel

606

640

34

5.7

(35)

68

103

-

Facility outline

976

1,186

210

21.6

173

318

144

83.1

Other

2,291

2,682

390

17.0

(46)

104

151

-

Adjustments(2,735)

(283)

2,452

-

11

(25)

(37)

-

Subtotal

117,494

96,292(21,202)(18.0)

5,427

5,503

76

1.4

Others

6,379

6,500

120

1.9

163

141

(21)

(13.2)

Adjustments(3,922)(5,976)(2,053)

-

(118)

(233)

(114)

-

Consolidated

119,950

96,816(23,134)(19.3)

5,471

5,411

(59)

(1.1)

Three months
ended June 30,
2022

Three months
ended June 30,2023

Transportation

17,38018,765

Railway

4,745

Bus(Bus, net)

*1

RetailAdjustments
Logistics

Adjustments
Leisure and Services
Hotel(Hotel, net)

*2

Change*1 Operating revenues for the Bus business, excluding intercompany transactions, increased 8.3%.
*2 Operating revenues for the Hotel business, excluding intercompany transactions, increased 81.5%.

4

Percentagechange (%)

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

Three months ended
June 30, 2022

Three months ended
June 30, 2023

Percentage change(%)

ChangeNumber of passengers

Thousandpassengers

24,19425,9101,716

7.1

Non-commuter

Thousandpassengers

9,749

10,831

1,082

11.1

CommuterThousandpassengers

14,445

15,079634

4.4

Passenger revenue

Millions of
yen

4,521

5,107

585

12.9

Non-commuter

Millions of
yen

2,615

3,073

458

17.5

CommuterMillions of
yen

1,906

2,033

127

6.7

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

Three months ended
June 30, 2022

Three months ended
June 30, 2023

Percentage change(%)

ChangeNumber of passengers

Thousandpassengers

52,69754,9872,290

4.3

Non-commuter

Thousandpassengers

29,28732,032

2,745

9.4

CommuterThousandpassengers

23,40922,955

(454)

(1.9)

Passenger revenue

Millions of
yen

9,751

10,517765

7.8

Non-commuter

Millions of
yen

6,993

7,790

797

11.4

CommuterMillions of
yen

2,758

2,726

(32)

(1.2)

3) Number of units sold (Real Estate)
Unit

Three months ended
June 30, 2022

Three months ended
June 30, 2023

Percentage change(%)

ChangeNumber of units sold

Unit

102

76

(26)

(25.8)

Condominium

Dwelling unit

76

52

(24)

(32.0)

Detached house

Unit

24

23

(1)

(4.2)

Dwelling unit

2

1

(1)

(50.0)

Renovation

4) Transaction volume of international cargo (Logistics)
Unit

Three months ended
June 30, 2022

Three months ended
June 30, 2023

Percentage change(%)

ChangeAir export

Thousand tons

36

24

(12)

(33.3)

Air importThousand
cases

100

81

(18)

(18.4)

Ocean export

Thousand
TEU

25

22

(2)

(11.5)

Ocean importThousand
TEU

35

32

(3)

(10.6)

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

Three months ended
June 30, 2022

Three months ended
June 30, 2023

10,677 [10,694]

ADR

Yen

7,377

[7,377]

OCC

%

62.6

[62.6]

76.2

Rev PAR

Yen

4,621

[4,621]

8,137

Percentage change(%)

Change3,300[3,317]44.7[75.6]

13.6P[13.0P]-[8,084]

3,516[3,463]76.1[45.0][74.9]

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, 2023

As of June 30, 2023

ChangeTotal Assets

685,795

683,632(2,162)

Total Liabilities

483,913471,261(12,652)

Total Net Assets

201,881

212,371

10,489Interest-bearing debt

334,875

323,512(11,363)(Note) Interest-bearing debt is the sum of borrowings and bonds payable.
Assets fell 2,162 million yen from the end of the previous fiscal year to 683,632 million yen mainly due to a decrease in notes
and accounts receivable - trade, and contract assets, while cash and deposits increased.
Liabilities dropped 12,652 million yen from the end of the previous fiscal year to 471,261 million yen mainly due to a decrease
in interest-bearing debt.
Net assets grew 10,489 million yen from the end of the previous fiscal year to 212,371 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 valuation difference on
available-for-sale securities.

(3) Explanation of future forecast information such as consolidated financial forecasts
The consolidated financial forecast for the first half and full year of the fiscal year ending March 31, 2024, have been changed
from those announced on May 11, 2023, based on the business results of the three-month period under review and the future outlook
for each business segment.
For details, please refer to “Notice Concerning Revision of Financial Forecast” announced on August 10, 2023.

6

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

As of June 30, 2023

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

81,97359,54637,73663,898
3,971
237
2,176
17,383(268)

66,992
4,277
479
2,150
14,649(273)

Total current assets

219,742

207,986

190,327

192,037

Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net

12,616130,871
29,080
10,312

12,114
131,654
30,865
10,315

Total property, plant and equipment

373,207376,986

321
3,523

314
3,575

3,844

3,889

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

63,437
3,805
6,152
21,692(317)

Fixed assets
Property, plant and equipment
Buildings and structures, net

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

7

89,00094,770466,053475,646

685,795

683,632(Millions of yen)
As of March 31, 2023

As of June 30, 2023

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

43,561
49,16335,62049,820Current 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
2,602
2,613
5,853
9,637
272
29,511

Total current liabilities

144,426

145,934

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

135,000
128,691
600
600
21,93030,261
8,243

Total long-term liabilities

339,486

325,327

Total Liabilities

483,913471,261

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

26,157
12,608143,194(1,166)26,157
12,608151,002(1,132)

180,794

188,636

8,182

10,084

(195)
5,293
718

(227)
6,313
727

13,99916,899324

317

Long-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

8

6,763

6,517

201,881

212,371685,795

683,632(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income
Quarterly consolidated statement of income(Three-month period)(Millions of yen)Three months ended
June 30, 2022
Operating revenue
Operating expenses
Operating expenses and cost of sales of transportation
Selling, general and administrative expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Miscellaneous income
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
Advances received on construction contracts
Contribution for construction
Total extraordinary income
Extraordinary losses
Loss on reduction of non-current assets for tax
purposes
OthersThree months ended
June 30, 2023

119,950

96,816

107,193
7,285

84,222
7,182

114,479

91,404

5,471

5,411

4
512

88
444

-

1,302

474
510

436

1,501

2,272

552

559

311

-

22

174

885

733

6,087

6,950

1

6,627
3
23

1

6,654

1

27

-

2

Total extraordinary losses

130

Income before income taxes

6,088

13,575

Income taxes - current
Income taxes - deferred

2,449
(637)

2,223
1,660

Total income taxes

1,811

3,883

Profit

4,276

9,691

Profit attributable to non-controlling interests
Profit attributable to owners of parent

9

357

300

3,919

9,390

Quarterly consolidated statement of comprehensive income(Three-month period)(Millions of yen)Three months ended June 30,
2022

Three months ended June 30,
2023

4,276

9,691

(109)
(0)
1,589
(18)

1,891
12
519
9

1,010

518

2,471

2,951

Comprehensive income

6,748

12,643(Components)
Comprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

6,263

12,290484

352

ProfitOther 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)
Three-month period in the previous fiscal year (from April 1, 2022 to June 30, 2022)
1. Information on operating revenue, income or loss by reporting segment(Millions of yen)Amount posted
to the quarterly

Reporting segment
Transportation Real Estate

Operating revenue

17,38014,277RetailLogistics

16,672

Leisure andServices

Total

6,634

117,494

62,528Others Adjustments consolidated(Note) 1(Note) 2
statement ofincome6,379(3,922)

119,950

Segment income
1,127
(95)
5,358
(885)
5,427
163
(118)
5,471
(78)
(loss)(Notes) 1. “Others” consist of business segments that are not included in any of the reporting segments and include the IC Cardbusiness, the Vehicle Maintenance related business, the Construction related business, and the Metal Recycling business.
2. An adjustment of (118) million yen in segment income (loss) is the net of (196) million yen administrative expenses ofparent company that are not attributable to the reporting segments and 77 million yen of elimination of intersegment
transactions.
3. The segment information above was prepared and shown in accordance with the classification after the change following
the reorganization of consolidated subsidiaries.
Three-month period under review (from April 1, 2023 to June 30, 2023)
1. Information on operating revenue, income or loss by reporting segment(Millions of yen)
Reporting segment
Transportation Real Estate

RetailLogistics

Leisure andServices

Total

Others(Note) 1

Amount posted
to the quarterly
Adjustments
consolidated
2(Note)
statement ofincomeOperating revenue

18,765

14,431

17,06536,233

9,796

96,292

6,500(5,976)

96,816

Segment income

916

1,647

77

2,075

786

5,503

141

(233)

5,411

(Notes) 1. “Others” consist of business segments that are not included in any of the reporting segments and include the IC Cardbusiness, the Vehicle Maintenance related business, the Construction related business, and the Metal Recycling business.
2. An adjustment of (233) million yen in segment income is the net of (299) million yen administrative expenses of parent
company that are not attributable to the reporting segments and 66 million yen of elimination of intersegment transactions.
2. Matters related to changes to reporting segments, etc.
At the beginning of the first quarter of the current fiscal year, Nishitetsu Building Management Co., Ltd. in “Real Estate” mergedwith Nishitetsu Densetsu Kogyo co., Ltd. in “Others” with the aim of further improving the efficiency of group management. As aresult of this reorganization, the business of Nishitetsu Densetsu Kogyo co., Ltd. was changed from “Others” to “Real Estate”.
The segment information for the three-month period in the previous fiscal year was prepared and shown in accordance with theclassification after the change.
(Material subsequent events)
The Company received an application for 1,467 million yen loan disbursement based on a loan commitment agreement from
NNRMC Airport Operation Co., Ltd. (hereafter, “JV company”), an affiliate of the Company, as of August 7, 2023.
The Company indirectly holds shares of and applies the equity method to Fukuoka International Airport Co., Ltd. (hereafter,“FIAC”) through JV company. The Company recognizes the portion of net loss recorded by FIAC attributable to the Company as“share of loss of entities accounted for using equity method” by reducing the amount of investment to the point where the equity
method investment value of JV company becomes zero.
Because the said loan receivable under the loan commitment agreement has substantially the same characteristics as investments,
when the Company disburses the loan, the Company will recognize an additional amount of the net loss recorded by FIAC to theextent of the loan amount, and the Company plans to record share of loss of entities accounted for using equity method of 1,467
million yen as non-operating expenses in the second quarter of the current fiscal year.

12The amount may change depending on the results of operations of JV company and FIAC.
The impact of this transaction has been included in the forecasts for the first half and full year of the fiscal year ending March
31, 2024.

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