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, 2023
(Under Japanese GAAP)May 11, 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 date of annual general meeting of shareholders: June 29, 2023
Scheduled commencement date of dividend payments: June 30, 2023
Scheduled filing date of securities report: June 29, 2023
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, 2023 (From April 1, 2022 to March 31,
2023)(1) Consolidated operating results(Percentages represent year-on-year changes.)
Profit attributable toOperating revenue
Operating income
Ordinary income
owners of parent
Millions of yen%

Millions of yen%

Fiscal year
ended March 31,
494,643
15.8
26,150 150.2
2023
Fiscal year
ended March 31,
427,159
23.4
10,451
2022(Notes) Comprehensive income Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2022
Net income pershare-basic

Millions of yen%

Millions of yen%

27,901100.0

18,36886.0

13,953

-

9,873

-

26,045 million yen ( 114.0 %)12,169 million yen ( %)of ordinary Ratio of operating
Net income per Return on equity Ratio
profitto total profit to net sales
share-diluted
assets

Yen

Yen

%

%

%

Fiscal year
ended March 31,
233.10232.54
10.0
3.9
5.3
2023
Fiscal year
ended March 31,
125.31124.91
5.9
1.9
2.4
2022
(Reference) Equity in earnings of affiliated companies Fiscal year ended March 31, 2023 (416) Millions of yen
Fiscal year ended March 31, 2022 767 Millions of yen(2) Consolidated financial position

Total assets
Millions of yen

Net assets
Millions of yen

Fiscal year
ended March 31,
685,795
201,8812023
Fiscal year
ended March 31,
734,500
179,084
2022(Reference) Shareholders’ equity Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2022

Equity ratio

Net assets per share
%

Yen

28.4

2,471.07

23.5

2,191.06

194,793 Millions of yen
172,593 Millions of yen

(3) Consolidated Cash Flows

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end ofyear

Millions of yen

Millions of yen

Millions of yen

Millions of yen

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

72,55930,591(10,344)(1,676)70,612

Fiscal year
ended March 31,
2023
Fiscal year
ended March 31,
2022
2. Dividends

Annual dividends
End of End of Year-end
Q2
Q3

End of
Q1

Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
(forecast)

Total

Total
dividends(annual)Ratio of
Payout ratio dividends(consolidate net assetstod)(consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

-

12.50

-

17.50

30.00

2,370

23.9

1.4

-

15.00

-

20.00

35.00

2,767

15.0

1.5

-

17.50

-

17.50

35.00

28.7

3. Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2024 (From April 1, 2023 to March 31,2024)(Percentages represents changes from the previous corresponding period.)
Profit attributable
Net income
OperatingOperatingincomeOrdinary
incometoownersofper sharerevenue
parentbasic
Millions of yen% Millions of yen% Millions of yen% Millions of yen%

Yen

215,000 (15.2)
6,100 (47.1)
3,700 (71.9)
5,600 (36.2)
71.06
First half
457,300 (7.5)
17,300 (33.8)
12,000 (57.0)
9,600 (47.7)
121.83Full year* Notes(1) Changes in important subsidiaries during the period under review (Changes in specified subsidiaries resulting
in changes in scope of consolidation): None(2) Change in accounting policies or estimates and restatements
1) Change in accounting policies due to revisions of accounting
standards and other regulations: Yes2) Change in accounting policies other than item 1) above: None3) Change in accounting estimates: None4) Restatements: None(Note) For details, see “(5) Notes to consolidated financial statements (Change in accounting policies)” in “3.
Consolidated Financial Statements and Key Notes” on page 17 of the attachments.
(3) Number of shares issued (common stock)
Fiscal year ended
Fiscal year ended
1) Number of shares issued at the end of the79,360,186 shares
79,360,186 sharesperiod (including treasury stock)
March 31, 2023
March 31, 2022
Fiscal year ended
Fiscal year ended
2) Number of treasury stocks at the end of the530,573 shares
588,852 sharesperiodMarch 31, 2023
March 31, 2022
3) Average number of shares outstanding during Fiscal year ended 78,801,276 shares Fiscal year ended
78,796,736 sharesthe period
March 31, 2023
March 31, 2022
(Note) The number of treasury stocks includes shares of the Company remaining in the board benefit trust (asof March 31, 2023: 243,225 shares; as of March 31, 2022: 244,266 shares).

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (From April 1, 2022 to March 31,2023)(1) Non-consolidated operating results(Percentages represent year-on-year changes.)

Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

Operating revenue

Operating income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

199,705

12.9

9,699

552.7

16,165281.7

12,383

185.2

176,924

28.8

1,486

-

4,235

-

4,342

-

Net income pershare-basic

Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

Ordinary income

Profit

Net income per sharediluted

Yen

Yen

157.15156.77

55.11

54.94

(2) Non-consolidated financial position

Total assets

Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

592,010

136,78823.1

1,731.12

654,310

125,383

19.1

1,586.59(Reference) Shareholders’ equity

Fiscal year ended March 31, 2023
136,463 Millions of yen
Fiscal year ended March 31, 2022
124,978 Millions of yen<Reason for the difference from previous year’s non-consolidated financial results>
There are differences in operating revenues and profits from the previous fiscal year. They are due to increases in revenues
resulting from demand recovery from the previous fiscal year in the Railway, Bus, Hotel, and other businesses in response toeasing of restrictions on activities caused by COVID-19 or other reasons, and also from higher sales prices in the international
logistics business than those in 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 not guarantee they will be achieved. In
addition, actual financial results may differ significantly due to various factors. They are based on certain premises to be concluded,
and our company does not promise to realize such premises. For assumptions for financial forecasts and points to consider inutilizing 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 ............................................................................................................................................................................72.

Basic Approach to the Selection of Accounting Standards....................................................................................................83.

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 quarterly consolidated financial statements .....................................................................................................17(Notes to assumptions of going concern) ..........................................................................................................................17(Change in accounting policies) ........................................................................................................................................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, 2022

Fiscal year ended
March 31, 2023

Operating revenue

427,159494,643

67,483

15.8%

Operating income

10,451

26,15015,699150.2%

Ordinary income

13,95327,901

13,947100.0%

Profit attributable to ownersof parent

9,873

18,368

8,494

86.0%

ChangePercentage change

During the fiscal year under review, the Japanese economy showed signs of gradual recovery backed by political measures andother means for normalizing social and economic activities while living with COVID-19. However, prospects remained uncertain due
to hikes in prices of raw materials and energy as well as rising prices associated with the prolonged situation in Ukraine and otherreasons.
Operating revenue for the fiscal year under review was 494,643 million yen, up 15.8% year-on-year. The reasons for the increase
include: maintaining the high level of sales prices compared with the previous year, despite a decrease in air export transaction volume
due to lower transportation demand in the Logistics business; and the easing of restrictions on activities caused by COVID-19 in theTransportation business and Leisure and Services business.
Operating income was 26,150 million yen (150.2% increase year-on-year), ordinary income was 27,901 million yen (up 100.0%
year-on-year), and profit attributable to owners of parent was 18,368 million yen (up 86.0% year-on-year).

The Company’s business performance by segment is as follows.
(Millions of yen)
Operating income (loss)

Operating revenue
Previous
fiscal year

Current
fiscal year

ChangePercentage Previous
changefiscal year

Current
fiscal year

ChangePercentagechangeTransportation

63,85772,069

8,212

12.9%

(4,699)

76

4,776

-

Real Estate

74,09876,793

2,695

3.6%

8,158

8,133

(24)

(0.3%)

Retail

68,736

68,993

257

0.4%

629

87

(541)

(86.1%)

Logistics

186,168

231,81345,64524.5%

11,482

17,078

5,596

48.7%

Leisure and Services

21,20332,711

11,50754.3%(6,625)

84

6,710

-

Subtotal

414,064

482,383

68,318

16.5%

8,945

25,461

16,516

184.6%

Others30,146

31,665

1,519

5.0%

1,708

1,224

(483)

(28.3%)

Adjustments(17,051)(19,405)(2,354)

-

(201)

(535)

(333)

-

Consolidated

427,159494,643

67,48315.8%

10,451

26,15015,699150.2%2

1) Transportation
In the Railway and Bus businesses, revenue increased due to a recovery in demand from the previous fiscal year mainly due to theeasing of restrictions on activities caused by COVID-19. As a result, operating revenue for the Transportation business was 72,069
million yen (12.9% increase year-on-year), and operating income came to 76 million yen (operating loss of 4,699 million yen for theprevious fiscal year).
The number of passengers in the Railway and Bus (public buses) businesses increased 9.7% and 5.2% year-on-year, respectively.
2) Real Estate
In the Housing business, revenue grew due to an increase in the number of condominiums sold, including the SUNRIANT
Sagamihara Station Villa. In the Leasing business, revenue was up mainly due to a recovery in lease revenue from commercial
facilities. As a result, operating revenue for the Real Estate business was 76,793 million yen (3.6% increase year-on-year). Operating
income was 8,133 million yen (down 0.3% year-on-year) due partly to increased expenses for renovating commercial facilities andtaxes in the Leasing business.
The number of lots sold was 920 (up 27 lots year-on-year).
3) RetailIn the Supermarkets/liquor stores business, sales at the existing stores fell due to consumers’ intensified focus on saving caused byhigher inflation. On the other hand, in the Sales of miscellaneous everyday items business, sales increased mainly due to thecontribution of new stores. As a result, operating revenue of the Retail business was 68,993 million yen (0.4% increase year-on-year).
Operating income amounted to 87 million yen (86.1% decrease year-on-year) in the Supermarkets/liquor stores business due to anincrease in utility costs caused by higher energy prices and other factors.
4) Logistics
In the Global Logistics business, although air export volume declined due to a decrease in transportation demand, sales prices
remained high compared with the previous year, resulting in an increase in revenues. As a result, operating revenue for the Logistics
business was 231,813 million yen (24.5% increase year-on-year), and operating income was 17,078 million yen (up 48.7% year-onyear).
International cargo volume was down 13.0% year-on-year in Air exports, down 4.9% year-on-year in Air imports, up 6.4% year-onyear in Ocean exports, and up 8.2% year-on-year in Ocean imports.
5) Leisure and Services
In the Hotel business, revenue increased due to higher occupancy from the previous fiscal year mainly due to the easing ofrestrictions on activities caused by COVID-19. As a result, operating revenue for the Leisure and Services business was 32,711 million
yen (54.3% increase year-on-year), and operating income was 84 million yen (operating loss of 6,625 million yen for the previous
fiscal year).
6) Others
Other operating revenue was 31,665 million yen (5.0% increase year-on-year) mainly due to an increase in revenue from large
construction orders in the Construction-related business. Operating income amounted to 1,224 million yen (down 28.3% year-on-year)
due partly to a decrease in sales volume in the Metal recycling business.

3

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

Operating income (loss)

ChangePercentagechange (%)

ChangePercentagechange (%)

72,069

8,212

12.9

(4,699)

76

4,776

-

17,153

19,506

2,353

13.7

(11)

909

921

-

Bus

43,43948,845

5,405

12.4

(4,558)(1,096)

3,462-(Bus, net) *1[39,840][45,302][5,461][13.7]

-

-

Other

12,116

12,445328

2.7

Adjustments(8,851)(8,727)

124

Real Estate

74,09876,793

2,695

Leasing

24,38924,922

Housing

42,016

Other
Adjustments

Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Transportation

63,857

Railway

Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

-

-

19

291

271

-

(148)

(27)

121

-

3.6

8,158

8,133

(24)

(0.3)

533

2.2

5,417

4,472

(945)

(17.4)

44,237

2,220

5.3

2,158

3,350

1,191

55.2

11,748

11,887

138

1.2

661

451

(209)

(31.7)(4,055)(4,252)

(196)

(79)

(140)

(61)

-

68,736

68,993

257

0.4

629

87

(541)

(86.1)

Supermarkets/liquor stores

63,91463,804

(109)

(0.2)

563

171

(392)

(69.5)

Sales of miscellaneous everyday
items

4,832

5,191

358

7.4

153

117

(35)

(23.1)

(10)

(2)

8

(87)

(202)

(114)

-

186,168

231,81345,64524.5

11,482

17,078

5,596

48.7

Global logistics

196,205

247,340

51,135

26.1

11,38017,197

5,817

51.1

Domestic logistics

10,577

10,345

(231)

(2.2)

299

110

(189)

(63.2)

Adjustments(20,614)(25,872)(5,258)

-

(196)

(228)

(31)

-

21,20332,711

11,50754.3(6,625)

84

6,710

-

Hotel

16,33826,981

10,64265.1(6,471)(1,488)

4,982-(Hotel, net) *2[8,270][16,286][8,016][96.9]--

Travel

1,329

2,633

1,303

98.0

(707)

196

903

Facility outline

4,019

4,243

224

5.6

619

712

93

Other

8,513

10,790

2,277

26.7

(30)

627

658

-

Adjustments(8,997)(11,937)(2,939)

(35)

36

72

-

Subtotal

414,064

482,383

68,318

16.5

8,945

25,461

16,516

184.6

Others30,146

31,665

1,519

5.0

1,708

1,224

(483)

(28.3)

Adjustments(17,051)(19,405)(2,354)

(201)

(535)

(333)

-

Consolidated

427,159494,643

67,483

10,451

26,15015,699RetailAdjustments
Logistics

Leisure and Services

-

-

-

-

15.8

*1 Operating revenues for the Bus business, excluding intercompany transactions, increased 13.7%.
*2 Operating revenues for the Hotel business, excluding intercompany transactions, increased 96.9%.

4

-

15.1

150.2

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

Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Percentage change(%)

ChangeNumber of passengers

Thousandpassengers

87,801

96,3578,556

9.7

Non-commuter

Thousandpassengers

34,44840,513

6,065

17.6

CommuterThousandpassengers

53,35355,8442,491

4.7

Passenger revenue

Millions ofyen

16,29918,563

2,264

13.9

Non-commuter

Millions of
yen

9,046

11,004

1,958

21.6

CommuterMillions of
yen

7,253

7,559

305

4.2

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

Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Percentage change(%)

ChangeNumber of passengers

Thousandpassengers

199,058

209,330

10,272

5.2

Non-commuter

Thousandpassengers

107,884

119,637

11,753

10.9

CommuterThousandpassengers

91,17489,693(1,481)(1.6)

Passenger revenue

Millions ofyen

35,08440,015

4,931

14.1

Non-commuter

Millions ofyen

24,87529,485

4,610

18.5

CommuterMillions ofyen

10,20910,530320

3.13) Number of units sold (Real Estate)
Unit

Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Percentage change(%)

ChangeNumber of units sold

Unit

893

920

27

3.0

Condominium

Dwelling unit

693

763

70

10.1

Detached house

Unit

194

142

(52)

(26.8)

6

15

9

150.0

Renovation

Dwelling unit

4) Transaction volume of international cargo (Logistics)
Unit

Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Percentage change(%)

ChangeAir export

Thousand tons

146

127

(19)

(13.0)

Air importThousand
cases

394

375

(19)

(4.9)

Ocean export

Thousand
TEU

96

102

6

6.4

Ocean importThousand
TEU

129

140

10

8.2

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

Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Percentage change(%)

Change

ADR

Yen

6,727

[6,864]

8,736[8,736]2,009[1,872]

29.9

OCC

%

40.4

[40.6]

70.6[70.6]

30.2P[30.0P]-

Rev PAR

Yen

2,718

[2,788]

6,167[6,167]3,449[3,379]126.9[27.3][121.2]

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, 2022

Fiscal year
ended March 31, 2023

ChangeTotal Assets

734,500

685,795(48,705)

Total Liabilities

555,416

483,913(71,502)

Total Net Assets

179,084

201,881

22,797

Interest-bearing debt

347,793334,875(12,918)(Note) Interest-bearing debt is the sum of borrowings and bonds payable.
Assets fell 48,705 million yen from the end of the previous fiscal year to 685,795 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 71,502 million yen from the end of the previous fiscal year to 483,913 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 22,797 million yen from the end of the previous fiscal year to 201,881 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) Cash Flows(Millions of yen)

Cash and cash equivalents at end of period

Fiscal year
ended March 31,
2022

Fiscal year
ended March 31,
2023

70,612

72,559Change1,946

Full year
ChangeFiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Cash flows from operating activities

30,591

43,775

13,184

Cash flows from investing activities(10,344)(24,600)(14,256)

Free cash flows (operating activities + investing activities)

20,247

19,174(1,072)

Cash flows from financing activities(1,676)(19,164)(17,488)

Cash and cash equivalents as of the end of the fiscal year under review increased by 1,946 million yen from the end of the previous
fiscal year to 72,559 million yen.
Net cash provided by operating activities amounted totaled 43,775 million yen, an increase by 13,184 million yen from the previous
fiscal year, mainly due to profit before income taxes of 27,646 million yen, depreciation of 18,354 million yen, and income taxes paidof 6,218 million yen.
Net cash used in investing activities totaled 24,600 million yen, an increase of 14,256 million yen from the previous fiscal year,
mainly due to the purchase of non-current assets of 22,262 million yen and purchase of investment securities of 6,140 million yen.
Net cash used in financing activities totaled 19,164 million yen, an increase of 17,488 million yen from the previous fiscal year,
mainly due to a net decrease in borrowings of 14,131 million yen and dividends paid of 2,566 million yen.

6(4) Outlook
For the fiscal year ending March 2024, we expect operating revenue of 457,300 million yen (down 7.5% from the previous fiscal
year) and operating income of 17,300 million yen (down 33.8% from the previous fiscal year) due to a recovery in demand in the
Railway, Bus, and Hotel businesses despite the leveling off of sales prices, which had been soaring in the international logistics
business.
Ordinary income is expected to be 12,000 million yen (down 57.0% from the previous fiscal year), mainly due to an increase inequity in losses of affiliated companies, and profit attributable to owners of parent is expected to be 9,600 million yen (down 47.7%
from the previous fiscal year).

Operating revenue(Millions of yen)
Percentage
Changechange(37,343)(7.5%)

Fiscal year ended March Fiscal year ending March
31, 2023 (results)
31, 2024 (forecast)494,643457,300

Operating income

26,15017,300(8,850)(33.8%)

Ordinary income
Profit attributable toowners of parent

27,901

12,000(15,901)(57.0%)

18,3689,600(8,768)(47.7%)(Millions of yen)
Operating income

Operating revenue
Fiscal year
Fiscal year
ending March
ended March 31,
31, 2024
2023 (results)(forecast)

ChangeFiscal year
Fiscal year ended
Percentage
ending March
March 31, 2023
change31, 2024(results)(forecast)

ChangePercentagechangeTransportation

72,06976,500

4,430

6.1%

76

1,900

1,823

-

Real Estate

76,79387,70010,906

14.2%

8,133

8,100

(33)

(0.4%)

Retail

68,99369,700

706

1.0%

87

300

212

243.2%

Logistics

231,813

176,400(55,413)(23.9%)

17,078

6,100(10,978)(64.3%)

Leisure and Services

32,711

39,900

7,188

22.0%

84

1,100

1,015

-

Subtotal

482,383

450,200(32,183)(6.7%)

25,461

17,500(7,961)(31.3%)

Others

31,66530,500(1,165)(3.7%)

1,224

800

(424)

(34.7%)

Adjustments(19,405)(23,400)(3,994)-(535)(1,000)(464)-

Consolidated

494,643457,300(37,343)(7.5%)

26,15017,300(8,850)(33.8%)*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, 2022

As of March 31, 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
Consumption taxes receivable
OthersAllowance for doubtful accounts
Total current assets

70,82872,79659,07759,54658,980
3,839
258
2,019
157
16,47663,898
3,971
237
2,176
3,975
13,408

(215)

(268)

211,422219,742

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

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

Total property, plant and equipment

437,890373,207

429
3,597

321
3,523

Total intangible assets

4,026

3,844

Investments and other assets
Investment securities
Retirement benefit assets
Deferred tax assets

47,523
4,040
11,70656,163
3,787
8,159

18,232(342)

21,207(317)

Intangible assets
Goodwill
OthersOthersAllowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total Assets

981,16089,000523,077

466,053734,500

685,795

(Millions of yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Consumption taxes payable
Income taxes payable
Advances received
Provision for bonuses
Other provisions
Others

As of March 31, 2023

39,11948,89843,561
49,163

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

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

198,394

144,426

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
133,711109
569
21,96730,218
7,910

Total long-term liabilities

357,021339,486

Total Liabilities

555,416

483,913

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

26,157
12,608
127,430(1,278)26,157
12,608143,194(1,166)

164,918

180,794

6,544

8,182

(591)
1,227
492

(195)
5,293
718

7,674

13,999405

324

Total current liabilities
Long-term liabilities

Total shareholders’ equity
Accumulated other comprehensive income
Valuationdifferenceonavailable-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

6,085

6,763

179,084

201,881734,500

685,795

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Operating revenue

427,159494,643

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

387,695
29,012438,461
30,030416,708

468,492

10,451

26,150

38
1,072

257
1,238

767

-

457
3,887

1,024
2,125

6,224

4,645

2,197

2,197

-

416

286
238

282

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
methodBond issuance costs
Miscellaneous expenses

2,722

2,895

Ordinary income

Total non-operating expenses

13,95327,901

Extraordinary gains
Gain on sales of fixed assets
Advances received on construction contracts
Contribution for construction
Others

4,910
25
389
53

121
75,274
795
1,411

5,378

77,603395

74,254

39
2,283
475

3,060
300
243

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

3,193

77,858

Income before income taxes

16,13827,646

Income taxes - current
Income taxes - deferred

3,340
1,869

6,887
1,236

Total income taxes

5,210

8,124

Profit10,927

19,522

Profit attributable to non-controlling interests

1,054

1,154

Profit attributable to owners of parent

9,873

18,36811

Consolidated statement of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2022
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 income

Fiscal year ended
March 31, 2023
10,927

19,522(2,364)

1,637

3
1,644
308

(8)
2,961
225

1,649

1,706

1,241

6,522

Comprehensive income

12,16926,045(Components)
Comprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

11,052

24,693

1,117

1,352

12

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders’ equity
Common stock Capital surplus
Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

26,157

12,622Retainedearnings

Treasury stock

Total
shareholders’equity(1,220)157,661

120,103(554)

26,157

12,622(554)

119,548(1,220)157,106

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
periodBalance at end of period(1,974)(1,974)

9,873

9,873

(16)

(220)

(220)

163

146

(13)

(13)

16

(16)

-

(13)

7,882

(57)

7,811

26,157

12,608

127,430(1,278)

164,918

Accumulated other comprehensive income

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Valuation
Deferred gains
difference onor losses onavailable-forhedges
sale securities

Foreigncurrencytranslation
adjustment(852)(1,745)

8,909

Accumulated Subscription
Remeasurements
otherrights to sharesof defined benefit
comprehensive
plansincome
184

6,495

442

Noncontrollinginterests

Total Net
Assets

5,346

169,946
(554)

8,909

(852)

(1,745)

184

6,495

442

5,346

169,391

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
periodBalance at end of period(1,974)
9,873
(220)
146

(13)

(2,364)

260

2,973

308

1,178

(36)

738

1,880

(2,364)

260

2,973

308

1,178

(36)

738

9,692

6,544

(591)

1,227

492

7,674

405

6,085

179,084

13

Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders’ equity
Common stock Capital surplus
Balance at beginning of
period26,157

12,608Retainedearnings

Treasury stock

Total
shareholders’equity(1,278)

164,918

127,430

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
periodBalance 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
Valuation
Deferred gains
difference onor losses onavailable-forhedges
sale securities
Balance at beginning of
period

6,544

(591)

Foreigncurrencytranslation
adjustment

Accumulated Subscription
Remeasurements
otherrights to sharesof defined benefit
comprehensive
plansincome

1,227

492

7,674

405

Noncontrollinginterests

Total Net
Assets

6,085

179,084

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’equityTotal changes during
periodBalance at end of period(2,568)18,368
(8)
83

1,638

395

4,065

225

6,324

(81)

678

6,921

1,638

395

4,065

225

6,324

(81)

678

22,797

8,182

(195)

5,293

718

13,999324

6,763

201,88114

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2022
Cash flows from operating activities
Income before income taxes
Depreciation

Fiscal year ended
March 31, 2023

16,13819,411

27,646
18,354

168
2,283
107

174
300
1,503

395

74,254(414)(76,070)

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

(767)

416

(4,893)
(186)

(121)
1,746

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

136
(226)
42
(1,111)
2,197(42)(10,765)
2,957(1,584)

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

Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Increase (decrease) in guarantee deposits received
Increase (decrease) in other liabilities
Others(1,649)
1,941
2,933
2,776
900

(1,718)(4,186)
2,428
2,014
404

Subtotal

30,75050,267

Interest and dividends received
Interest paid
Income taxes paid

4,218
(2,073)(2,303)

1,832(2,105)(6,218)Cash flows from operating activities

30,591

43,775(25,899)
9,107(5,255)205(2,314)
4,926(22,262)857(6,140)1,792(1,544)9(1,547)14

10,313
119(5,098)
3,571
4,009
191

(10,344)(24,600)

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, 2022
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Net increase (decrease) in commercial papers
Proceeds from long-term borrowings

Fiscal year ended
March 31, 2023

(152)
(10,000)
1,234

415
10,100

Repayments of long-term borrowings
Proceeds from issuance 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(18,751)
30,000(24,647)
-

(36)

-

109
(220)
(1,562)(1,975)
(322)

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

Cash flows from financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents(1,676)(19,164)

996

1,936

19,567

1,946

Cash and cash equivalents at beginning of period

51,04570,612

Cash and cash equivalents at end of period

70,612

72,55916

(5) Notes to quarterly consolidated financial statements(Notes to assumptions of going concern)
Not applicable.
(Change in accounting policies)(Adoption of Financial Accounting Standards Board Accounting Standards Codification (ASC) 842, Leases)
Effective from the current fiscal year, certain overseas consolidated subsidiaries adopting U.S. GAAP have adopted ASC 842,
Leases. Therefore, in principle, all leases of lessees in the foreign consolidated subsidiaries are recorded as assets and liabilities in the
consolidated balance sheet.
In adopting this accounting standard, we adopt the method in which the cumulative effect of adopting this accounting standard,
which is permitted as a transitional measure, is recognized at the date of commencement of adoption.
The adoption of this accounting standard does not have a material impact on the consolidated financial statements.
(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 andwhich 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, including the Railway and Bus
businesses. The business operations are managed by classifying the businesses of the Company and group companies by businesstype.
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, 2022

(Millions of yen)
Reportable segment
Transportati
Real EstateonRetailLogistics

Leisure andServices

Total

Others(Note)

Amountrecorded in
Adjustments Consolidated
Financial
Statements

Operating revenue(1) Operating
revenue to62,95868,95068,677
185,799
18,544404,929
22,230427,159
externalcustomers(2) Intersegment
operating
899
5,148
58
369
2,659
9,134
7,916
(17,051)
revenue andtransfers
Total
63,85774,09868,736
186,168
21,203414,064
30,146(17,051)
427,159
Segment income(4,699)8,158
629
11,482(6,625)
8,945
1,708
(201)
10,451(loss)
Other Items
Depreciation
7,456
5,670
926
1,796
2,928
18,777
1,058(424)
19,411
Amortization of
27
141
168
168
goodwill
Impairment
1,289
301
693
2,283
2,283
losses(Note) “Other” consists of business segments that are not included in any of the reporting segments and includes the IC card business,
the Vehicle Maintenance-related business, the Construction-related business, and the Metal Recycling business.

17

Fiscal year ended March 31, 2023

(Millions of yen)Amountrecorded in
Adjustments Consolidated
Financial
Statements

Reportable segment
Transportati
Real Estateon
Operating revenue(1) Operating
revenue toexternalcustomers(2) Intersegment
operatingrevenue andtransfers
Total

RetailLogistics

Leisure andServices

Total

Others(Note)

71,194

71,96568,926

231,370

29,746473,20321,440-494,643

875

4,828

67

443

2,965

9,180

10,225(19,405)-

72,06976,793

68,993

231,81332,711

482,383

31,665(19,405)

494,643

76

8,133

87

17,07884

25,461

1,224

(535)

26,150

Segment profit
Other Items

Depreciation
6,387
5,694
866
1,911
2,697
17,5571,182(385)
18,354
Amortization of
48
126
174
174
goodwill
Impairment
11
285
297
3
300
losses(Note) “Other” consists of business segments that are not included in any of the reporting segments and includes the IC card business,
the Vehicle Maintenance-related business, the Construction-related business, and the Metal Recycling business.
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)

Fiscal year ended
March 31, 2022

Profit(Millions of yen)
Fiscal year ended
March 31, 2023

Reportable segment total

8,945

25,461

Profit in the “Other” category

1,708

1,224

Elimination of intersegment transactions

554

283

Corporate expenses (Note)

(756)

(819)

Operating income in consolidated financial statements

10,451

26,150(Note) Corporate expenses are primarily administrative expenses of the parent company not attributable to any reporting segment.
Fiscal year ended March 31, 2022

(Millions of yen)
Other Items

Reportable segment
total

OthersAmount recorded in
Consolidated Financial
Statements

Adjustments

Depreciation

18,777

1,058

(424)

19,411

Impairment losses

2,283

-

-

2,283

Fiscal year ended March 31, 2023

(Millions of yen)
Other Items
Depreciation
Impairment losses

Reportable segment
total

OthersAmount recorded in
Consolidated Financial
Statements

Adjustments

17,557

1,182

(385)

18,354

297

3

-

300

18

(Per-share information)

Item

Fiscal year ended
March 31, 2022

Net assets per share
Net income per share-basic

Fiscal year ended
March 31, 2023

2,191.06 yen

2,471.07 yen

125.31 yen

233.10 yen

Net income per share-diluted
124.91 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, 2022

232.54 yen

Fiscal year ended
March 31, 2023

Net income per share-basic
Profit attributable to owners of parent (millions of yen)

9,873

18,368

-

-

9,873

18,36878,79678,801

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

249

189

(Share acquisition rights (thousands of shares))

(249)

(189)

-

-

Amount not attributable to common shareholders (millions ofyen)Profit attributable to owners of parent relating to commonshares (millions of yen)
Average number of shares outstanding during the period(thousands of shares)
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, 2022

As of March 31, 2023

179,084

201,881

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

6,491

7,088

(Share acquisition rights (millions of yen))

(405)

(324)

(Non-controlling interests (millions of yen))(6,085)(6,763)

172,593

194,793

Total net assets (millions of yen)

Net assets at the end of the period relating to common shares(millions of yen)
Number of common shares at the end of the period used to78,771
78,829calculate net assets per share (thousands of shares)
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 (206,000 shares in the previous fiscal year and
243,000 shares in the fiscal year under review).

19

(Material subsequent events)(Transfer of non-current assets)
On April 3, 2023, the Company transferred the non-current assets held by the Company.
1. Reason for transfer
The Nishishin Palace and Residential Gallery Nishishin owned by the Company were transferred to make effective use ofmanagement resources.
2. Details of the transferred assets
Nishishin Palace
Location: 2-221-3, Nishishin, Sawara-ku, Fukuoka City, Fukuoka Prefecture, and others
Site area: 6,216.28 m2
Building size: Four stories above ground, steel-framed reinforced concrete, total floor area of 12,216.27 m2
Residential Gallery Nishishin
Location: 2-221-32, Nishishin, Sawara-ku, Fukuoka City, Fukuoka Prefecture
Site area: 1,105.99 m2
Building size: Two stories above ground, steel construction, total floor area of 687.17 m2
3. Overview of the transferee(1) Name

Social Medical Corporation Taiseikai(2) Location

1-1-35, Nishishin, Sawara-ku, Fukuoka City, Fukuoka Prefecture(3) Title and name of representative

Yasuo Kuroda, President(4) Details of business

Management of Fukuoka Kinen Hospital(5) Opened

January 1959

(6) Relations with the Company

There is no capital or personal relationship between thetransferee and the Group, and the transferee is not a related party.

4. Schedule of transfer
Date of contract: December 28, 2022
Date of transfer: April 3, 2023
5. Impact on profits and losses
As a result of this transfer of non-current assets, the Company expects to recognize the gain on the sale of non-current assets ofapproximately 6,500 million yen as an extraordinary income for the first quarter of the fiscal year ending March 2024.

20