Kyushu Railway Company · TSE:9142
Kyushu Railway — Q3 FY2025.3 Earnings Presentation
32 slides from Kyushu Railway's earnings presentation, Feb 5, 2025
Slide 1: FY25.3 Third Quarter Investors Meeting
FY25.3 Third Quarter Investors Meeting February 5, 2025
Slide 2: Contents
Contents Ⅰ Financial Results for the First Nine-Months of FY25.3 4 Ⅱ Full-Year Performance Forecasts and Dividend Forecasts 8 for FY25.3 Ⅲ Status of Segments 13 Ⅳ Progress on the Medium-Term Business Plan 22 Ⅴ Regarding JR Kyushu Jet Ferry Inc. to Withdraw from 28 the Vessel Operation Business 2
Slide 3: Overview
Overview Owing to demand recovery in each segment, consolidated operating revenues, operating Financial results income, and ordinary income all increased year on year. for the first nine months of FY25.3 Net income attributable to owners of the parent decreased year on year, owing to a decrease
Slide 4: Financial Results for the First Nine-Months of FY25.3
Ⅰ Financial Results for the First Nine-Months of FY25.3 4
Slide 5: Consolidated Financial Highlights for the Nine-Month Period Ended December 31, 2024
Consolidated Financial Highlights for the Nine-Month Period Ended December 31, 2024 （\bil） Key points 9 months ended 9 months ended December, 31 December, 31 YoY The sale of properties decreased, but railway 2023 2024 transportation revenues rebounded, Operating revenue 292.9 321.9 28.9 109.9% per
Slide 6: Consolidated Results for the First Nine Months of FY25.3 (by Segment)
Consolidated Results for the First Nine Months of FY25.3 (by Segment) （\bil） 9 months ended 9 months ended December, 31 December, 31 YoY Major factors 2023 2024 Operating revenue 292.9 321.9 28.9 109.9% Transportation 122.2 126.2 3.9 103.2% Railway Business (non-consolidated) 120.0 124.6 4.5 103.8%
Slide 7: Non-consolidated Results for the First Nine Months of FY25.3
Non-consolidated Results for the First Nine Months of FY25.3 (\bil) 9 months ended 9 months ended December, 31 December, 31 YoY Major Factors 2023 2024 Operating revenue 161.1 168.7 7.5 104.7% Railway transportation 108.5 112.9 4.3 104.0% Increase due to moderate recovery in demand revenues Shinkans
Slide 8: Full-Year Performance Forecasts and Dividend Forecasts for FY25.3
Ⅱ Full-Year Performance Forecasts and Dividend Forecasts for FY25.3 8
Slide 9: Consolidated Financial Forecast Highlights for FY25.3
Consolidated Financial Forecast Highlights for FY25.3 Key points （\bil） Although personnel expenses will rise due Medium-Term to improved employee compensation, we Results Forecasts YoY Business Plan Vs. targets expect higher railway transportation FY24.3 FY25.3 targets revenue and a decline in ma
Slide 10: Consolidated Financial Forecasts for FY25.3 (by Segment)
Consolidated Financial Forecasts for FY25.3 (by Segment) (\bil) Medium-Term Results Forecasts YoY Major factors Business Plan Vs. targets FY24.3 FY25.3 targets Operating revenue 420.4 441.1 20.6 104.9% 440.0 1.1 100.3% Transportation 163.7 166.6 2.8 101.7% Increase due to moderate recovery in demand
Slide 11: Non-consolidated Financial Forecasts for FY25.3
Non-consolidated Financial Forecasts for FY25.3 （\bil） Results Forecasts YoY Major factors FY24.3 FY25.3 Operating revenue 234.3 234.1 (0.2) 99.9% Railway transportation 145.0 147.7 2.6 101.8% Increase due to moderate recovery in demand revenues Shinkansen 57.5 58.7 1.1 102.0% Conventional Lines 87.
Slide 12: FY25.3 Dividend Forecasts
FY25.3 Dividend Forecasts Shareholder return policy JR Kyushu places importance on the stable provision of return to shareholders over the long term. Over the period to FY25.3, we will aim for a consolidated dividend payout ratio of 35%, with a minimum dividend per share of ¥93.0. We will flexibly
Slide 13: Status of Segments
Il Status of Segments 13
Slide 14: Transportation Segment
Transportation Segment In Q3 FY25.3, railway transportation revenues were robust, with commuter revenues and non-commuter revenues both outpacing expectations. 【Results】 【Forecasts】 （\bil） （\bil） 9 months ended 9 months ended FY24.3 FY25.3 December, 31 December, 31 YoY YoY Results Forecasts 2023 2
Slide 15: Status of Inbound Measures in the Railway Business
Status of Inbound Measures in the Railway Business In Q3 FY25.3, inbound revenue was essentially flat year on year. In April 2025, we expect to implement revised prices on JR-KYUSHU RAIL PASS. Inbound Revenue (approximate) 25.0 Demand for JR-KYUSHU RAIL PASS JR-KYUSHU RAIL PASS Others Vs. FY19.3
Slide 16: Railway Business (Transportation Data)
Railway Business (Transportation Data) Railway transportation revenues (\bil) 9 months ended 9 months ended YoY Major Factors December, 31 2023 December, 31 2024 Total 108.5 112.9 4.3 104.0% Commuter pass 23.1 23.7 0.5 102.3% Non-commuter pass 85.3 89.2 3.8 104.5% Cargo 0.0 0.0 0.0 123.2% Shinkansen
Slide 17: Real Estate and Hotels Segment: Real Estate Leasing Business
Real Estate and Hotels Segment: Real Estate Leasing Business In Q3 FY25.3, station building tenant sales outpaced expectations. 【 Results 】 【 Forecasts 】 （\bil） （\bil） 9 months ended 9 months ended FY24.3 FY25.3 December, 31 December, 31 YoY YoY Results Forecasts 2023 2024 Operating revenue 51.2 5
Slide 18: Real Estate and Hotels Segment: Real Estate Sales Business
Real Estate and Hotels Segment: Real Estate Sales Business In Q3 FY25.3, condominium sales were increased year on year. Although we sold a rental apartment to a third party in Q3 FY25.3, Property sales were down, reflecting the sale of rental apartments to third parties in FY24.3. 【Results】 【For
Slide 19: Real Estate and Hotels Segment: Hotel Business
Real Estate and Hotels Segment: Hotel Business In Q3 FY25.3, hotels with a high ratio of inbound guests continued to be a driving force, pushing up occupancy rates and ADR. 【Results】 【Forecasts】 （\bil） （\bil） 9 months ended 9 months ended FY24.3 FY25.3 December, 31 December, 31 YoY YoY Results For
Slide 20: Retail and Restaurant Segment
Retail and Restaurant Segment In Q3 FY25.3, performance at existing retail stores and restaurants remained favorable. 【Results】 【Forecasts】 （\bil） （\bil） 9 months ended 9 months ended FY24.3 FY25.3 December, 31 December, 31 YoY YoY Results Forecasts 2023 2024 Operating revenue 45.8 50.1 4.2 109.3%
Slide 21: Construction Segment, Business Services Segment
Construction Segment, Business Services Segment Construction Segment 【Results】 【Forecasts】 （\bil） （\bil） 9 months ended 9 months ended FY24.3 FY25.3 December, 31 December, 31 YoY YoY Results Forecasts 2023 2024 Operating revenue 56.8 61.7 4.9 108.7% 90.0 95.0 4.9 105.4% Operating income 1.2 2.0 0.8
Slide 22: Progress on the Medium-Term Business Plan
Ⅳ Progress on the Medium-Term Business Plan 22
Slide 23: JR Kyushu Group Medium-Term Business Plan 2022-2024
JR Kyushu Group Medium-Term Business Plan 2022-2024 Three key strategies of the medium-term business plan 2030 Long-Term Vision Robustly promoting three key strategies during the stage for returning the We will contribute to the sustainable development of Company to a growth track Kyushu through cit
Slide 24: Railway Business through the Future Railway Project
Key Strategy ❶ Completing Business Structural Reforms: Railway Business through the Future Railway Project We are working to promote mechanization and implement labor-saving measures through “Future Maintenance,” which aims to achieve both safety and productivity in maintenance (CBM). “Future Main
Slide 25: Initiatives Related to Local Lines
Key Strategy ❷ Creating a Model for Building Cities That Promote Well-Being: Initiatives Related to Local Lines Since opening in August 2023, usage of the Hitahikosan Line BRT Hikoboshi Line has continued to outpace traffic during the railway era. We have announced our intentions to begin discus
Slide 26: Maximizing the Effect of Opening Nishi-Kyushu Shinkansen
Key Strategy ❷ Creating a Model for Building Cities That Promote Well-Being: Maximizing the Effect of Opening Nishi-Kyushu Shinkansen Usage trends on the Nishi-Kyushu Shinkansen continued to outpace that of the Kyushu Shinkansen. Short-distance revenues at Nagasaki Station and commuter numbers a
Slide 27: Overview around the Hohi Main Line
Key Strategy ❷ Creating a Model for Building Cities That Promote Well-Being: Overview around the Hohi Main Line Owing to a grouping of semiconductor companies, we expect to see an increase in interaction and population along the rail line. The first plant of TSMC commenced operations in December.
Slide 28: Regarding JR Kyushu Jet Ferry Inc. to Withdraw from the Vessel Operation Business
Ⅴ Regarding JR Kyushu Jet Ferry Inc. to Withdraw from the Vessel Operation Business 28
Slide 29: Withdrawal of JR Kyushu Jet Ferry Inc. from the Vessel Operation Business
Withdrawal of JR Kyushu Jet Ferry Inc. from the Vessel Operation Business On December 23, 2024, JR Kyushu’s Board of Directors reached the decision to withdraw from the business. Notification regarding withdrawal from the business to be submitted on February 28, 2025. JR Kyushu Jet Ferry Inc. wi
Slide 30: Withdrawal of JR Kyushu Jet Ferry Inc.: Comments by Outside Directors
Withdrawal of JR Kyushu Jet Ferry Inc. from the Vessel Operation Business Comments by Outside Directors at Board of Directors Meetings from August 2024 (Excerpted) Discussions on this matter were held at several Board of Directors meetings until the meeting on December 23, 2024 (decision to withdr
Slide 31: Measures to Reinforce Governance at JR Kyushu Group Companies
Withdrawal of JR Kyushu Jet Ferry Inc. from the Vessel Operation Business Formulated measures to strengthen the governance of JR Kyushu Group based on discussions at the Board of Directors, reports on the results of investigations by the third- party committee, and discussions with shareholders. M
Slide 32: Forward-Looking Statements
Forward-Looking Statements These materials contain forward-looking statements concerning business forecasts, targets, etc. of the JR Kyushu Group. These statements are judgments made by the Company based on information, projections, and assumptions available at the time of the materials’ creation. A
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