Kyushu Railway Company · TSE:9142
Kyushu Railway — FY2025 Earnings Presentation
42 slides from Kyushu Railway's earnings presentation, May 12, 2025
Slide 1: FY25.3 Annual Investors Meeting
FY25.3 Annual Investors Meeting MAY 12, 2025 KYUSHU RAILWAY COMPANY
Slide 2: Contents
Contents Ⅰ Financial Results and Year-end Divided for FY25.3 3 Ⅱ Medium-Term Business Plan 2022–2024 in Review 8 Ⅲ Full-Year Performance and Shareholder Returns for 13 FY26.3 Ⅳ Status of Segments 19 Ⅴ Medium-Term Business Plan 2025–2027 and 28 Current-Term Initiatives 2
Slide 3: Financial Results and Year-end Dividend for FY25.3
I Financial Results and Year-end Divided for FY25.3 3
Slide 4: Consolidated Financial Highlights for FY25.3
Consolidated Financial Highlights for FY25.3 （\bil） Key points Results Results Owing to such factors as a rebound in railway YoY FY24.3 FY25.3 transportation revenues and favorable performance trends at hotels and other Operating revenue 420.4 454.3 33.9 108.1% existing properties, consolidated op
Slide 5: Consolidated Balance Sheet and Cash Flow Statement
Consolidated Balance Sheet and Cash Flow Statement （\bil） Results Results YoY Major factors FY24.3 FY25.3 Assets 1,089.1 1,140.5 51.3 Current assets 221.5 214.1 (7.3) Decrease in accounts receivable-trade Non-current assets 867.6 926.3 58.7 Increase in property, plant and equipment Fixed assets for
Slide 6: Consolidated Results for FY25.3 (by Segment)
Consolidated Results for FY25.3 (by Segment) （\bil） Results Results YoY Major factors FY24.3 FY25.3 Operating revenue 420.4 454.3 33.9 108.1% Transportation 163.7 169.3 5.5 103.4% Railway Business (non-consolidated) 160.4 167.0 6.5 104.1% Increase due to moderate recovery in demand Real Estate and H
Slide 7: Non-consolidated Results for FY25.3
Non-consolidated Results for FY25.3 (\bil) Results Results YoY Major Factors FY24.3 FY25.3 Operating revenue 234.3 240.8 6.5 102.8% Railway transportation 145.0 151.2 6.1 104.2% Increase due to moderate recovery in demand revenues Shinkansen 57.5 60.5 2.9 105.2% Conventional Lines 87.5 90.7 3.1 103.
Slide 8: Medium-Term Business Plan 2022–2024 in Review
Ⅱ Medium-Term Business Plan 2022–2024 in Review 8
Slide 9: Medium-Term Business Plan 2022–2024 in Review: Numerical Targets
Medium-Term Business Plan 2022–2024 in Review: Numerical Targets, etc While unplanned cost increases occurred due to inflation and other factors, numerical targets were generally achieved thanks to initiatives such as cost structure reforms (including BPR), efforts to maximize the effect of the Ni
Slide 10: Review: Investment Plan and Fund-raising
Medium-Term Business Plan 2022–2024 in Review: Investment Plan and Fund-raising In investment plan, although some investment in maintenance and renovation was delayed to later periods, growth-oriented investments proceeded largely as planned. Our reliance on bonds, borrowings, and other financin
Slide 11: Review: Key Strategy
Medium-Term Business Plan 2022–2024 in Review: Key Strategy, etc The Company made solid progress on its key strategies, driven by business structural reforms in the railway and hotel segments and city-building initiatives in the western Kyushu area. However, challenges remain in creating new reven
Slide 12: Review: Non-Financial KPIs
Medium-Term Business Plan 2022–2024 in Review: Non-Financial KPIs We expect to generally achieve the non-financial KPIs set under the previous medium-term business plan Materiality Objectives/Indicators Result (FY25.3) CO₂ emissions • JR Kyushu non-consolidated emissions 50% reduction compared t
Slide 13: Full-Year Performance and Shareholder Returns for FY26.3
Ⅲ Full-Year Performance and Shareholder Returns for FY26.3 13
Slide 14: Consolidated Financial Forecast Highlights for FY26.3
Consolidated Financial Forecast Highlights for FY26.3 （\bil） Key points Medium-Term Results Forecasts YoY Business Plan Consolidated Operating revenue, FY25.3 FY26.3 targets operating income, ordinary income and net income attributable to Operating revenue 454.3 483.3 28.9 106.4% 530.0 owners of t
Slide 15: Consolidated Financial Forecasts for FY26.3 (by Segment)
Consolidated Financial Forecasts for FY26.3 (by Segment) (\bil) Medium-Term Results Forecasts YoY Major factors Business Plan FY25.3 FY26.3 targets Operating revenue 454.3 483.3 28.9 106.4% 530.0 Increase in Railway transportation revenues Transportation 169.3 184.7 15.3 109.1% due to the revision o
Slide 16: Non-consolidated Financial Forecasts for FY26.3
Non-consolidated Financial Forecasts for FY26.3 （\bil） Results Forecasts YoY Major factors FY25.3 FY26.3 Operating revenue 240.8 266.3 25.4 110.6% Railway transportation revenues 151.2 167.2 15.9 110.5% Increase due to the revision of rail fare and charges Shinkansen 60.5 66.4 5.8 109.7% Conventiona
Slide 17: Capital Investment Plan
Capital Investment Plan In FY26.3, we plan to make growth investments in areas such as logistics facilities and rental apartments, etc. as well as replace aging rolling stock. Medium-term business plan Medium-term business plan ●Medium-term business plan 2025–2027 2022–2024 2025–2027 Growth invest
Slide 18: About Shareholder Returns
About Shareholder Returns JR Kyushu places importance on the stable provision of return to shareholders over the long term. Over the period up to FY2028.3, we will aim for a consolidated dividend payout ratio of 35% or higher and flexibly implement share repurchases. As the result of considerati
Slide 19: Status of Segments
IV Status of Segments 19
Slide 20: Transportation Segment
Transportation Segment In Q4 FY25.3, railway transportation revenues were solid in both commuter and non-commuter revenues, exceeding expectations. For FY26.3, we expect increased revenue and profit, supported by the revision of rail fares and charges in the railway business. 【Forecasts】 （\bil）
Slide 21: Status of Inbound Measures in the Railway Business
Status of Inbound Measures in the Railway Business Inbound revenue in Q4 FY25.3 continued to exceed the previous year’s level, as in prior quarters. In FY26.3, the overall growth rate is expected to be around 10% due to the price change of JR-KYUSHU RAIL PASS Inbound revenue (approximate) Demand
Slide 22: Railway Business (Transportation Data)
Railway Business (Transportation Data) Railway transportation revenues (\bil) Results Results YoY Major Factors FY24.3 FY25.3 Total 145.0 151.2 6.1 104.2% Commuter pass 30.2 31.1 0.9 103.1% Non-commuter pass 114.8 120.0 5.2 104.6% Cargo 0.0 0.0 0.0 125.1% Shinkansen 57.5 60.5 2.9 105.2% Commuter pas
Slide 23: Real Estate and Hotels Segment: Real Estate Leasing Business
Real Estate and Hotels Segment: Real Estate Leasing Business In FY25.3, station building tenant sales exceeded expectations, with full-year contribution from Amu Plaza Nagasaki Annex, which opened in November 2023 In FY26.3, we expect station building tenant sales to remain at a level similar to
Slide 24: Real Estate and Hotels Segment: Real Estate Sales Business
Real Estate and Hotels Segment: Real Estate Sales Business In FY25.3, revenue declined year on year due to the absence of large-scale Company property sales recorded in FY24.3. In FY26.3, we expect increases in both revenues from condominium sales and the sale of Company properties. 【Results】 【F
Slide 25: Real Estate and Hotels Segment: Hotel Business
Real Estate and Hotels Segment: Hotel Business In Q4 FY25.3, hotels with a high ratio of inbound guests continued to be a driving force, and the performance exceeded expectation. In FY26.3, we expect occupancy rates to remain at FY25.3 levels, with a moderate increase in ADR. 【Results】 【Forecast
Slide 26: Retail and Restaurant Segment
Retail and Restaurant Segment In Q4 FY25.3, existing retail and restaurant locations continued to perform strongly. In FY26.3, we expect existing retail and restaurant sales to remain on par with the previous fiscal year, with a comparable number of new store openings also planned. 【Results】 【Fo
Slide 27: Construction Segment, Business Services Segment
Construction Segment, Business Services Segment Construction Segment 【Results】 【Forecasts】 （\bil） （\bil） Results Results Results Forecasts YoY YoY FY24.3 FY25.3 FY25.3 FY26.3 Operating revenue 90.0 100.6 10.5 111.7% 100.6 100.0 (0.6) 99.4% Operating income 5.9 7.3 1.3 123.3% 7.3 6.9 (0.4) 93.7% EBIT
Slide 28: Medium-Term Business Plan 2025–2027 and Current-Term Initiatives
Ⅴ Medium-Term Business Plan 2025–2027 and Current-Term Initiatives 28
Slide 29: JR Kyushu Group Medium-Term Business Plan 2025–2027
JR Kyushu Group Medium-Term Business Plan 2025–2027 We have formulated the plan with a focus on sustainable long-term growth, taking into account changes in the management environment both within and outside the Group. Key strategies and the management base to support them strategies Key (1) Reali
Slide 30: Key Strategy (1): Initiatives and Capital Investment in Line with Fare Revisions
Key Strategy (1) Realize Sustainable Mobility Services: Initiatives and Capital Investment in Line with Fare Revisions As of April 1, 2025, we implemented a revision of rail passenger fares and charges. The resulting revenue will be used to support necessary initiatives for business continuity, in
Slide 31: Key Strategy (1): Promoting the Future Railway Project
Key Strategy (1) Realize Sustainable Mobility Services: Promoting the Future Railway Project Through the Future Railway Project, launched in FY23.3, we aim to elevate the value of railways and create a virtuous cycle of growth Starting with a leaner railway business, we are implementing revenue-
Slide 32: Key Strategy (1): Initiatives Involving Local Lines
Key Strategy (1) Realize Sustainable Mobility Services: Initiatives Involving Local Lines For the Hisatsu Line section between Yatsushiro and Hitoyoshi, the Company reached a final agreement with Kumamoto Prefecture to restore service using a separation of infrastructure and operation approach.
Slide 33: Key Strategy (2): Initiatives Involving Logistics Facilities
Key Strategy (2) City-Building through Enhanced Collaboration among Businesses: Initiatives Involving Logistics Facilities We are accelerating efforts to develop logistics facilities in the Tosu area, a key transportation hub. In March, we acquired our fifth logistics facility in Kyushu, located i
Slide 34: Medium-Term Business Plan 2025–2027: Non-Financial KPIs
Medium-Term Business Plan 2025–2027: Non-Financial KPIs We established non-financial KPIs aligned with the new materiality themes, adding new indicators in select areas to further drive the creation of social value. Materiality Major strategies/initiatives Indicators and targets (FY28.3) • Acciden
Slide 35: Appendix
APPENDIX 35
Slide 36: EBITDA by Segment
EBITDA by Segment Real Estate and Hotels Transportation （¥bil） EBITDA EBITDA margin 49.6 （¥bil） EBITDA EBITDA margin 50 60% 40 40% 40.8 40 36.2 30 25.3 30% 50% 22.3 31.8 31.9 20 13.1 20% 30 22.2 40% 10 10% 13.6% 15.0% 20 0 9.5% 0% FY21.3 FY22.3 FY22.3 FY23.3 FY24.3 FY25.3 34.6% 30% (10) -10% 10 29.5
Slide 37: Trends in the Railway Business
Trends in the Railway Business Railway transportation revenues (Shinkansen), passenger load Internet train reservation services: factor on the Kyushu Shinkansen (Hakata-Kumamoto) Number of reservations, sales （10,000 rersevations） （¥bil） （¥bil） Number of resevations Sales (right) Shinkansen Passange
Slide 38: Trends in the Real Estate and Hotel Businesses
Trends in the Real Estate and Hotel Businesses Station building tenant sales Hotel occupancy rates and average unit prices （¥bil） Other major station buildings* JR Hakata City （¥） ADR Occupancy Rates 289.1 100% 300 24,000 262.8 83.1% 78.8% 250 20,000 67.5% 80% 222.1 184.6 140.3 200 128.3 16,000 42.7
Slide 39: Overview of Major Development Pipelines
Overview of Major Development Pipelines Floor space/Lot Name Location Schedule area/Units/Rooms Notes (Uses, etc.) Project utilizing the space Lot area: Hakata-ku, End 2028: Planned Approx. 5,200㎡ • Offices, hotels, and commercial above the tracks at Hakata Fukuoka City completion Floor space: opera
Slide 40: Initiatives to realize management conscious of capital cost and stock price
Initiatives to realize management that is conscious of capital cost and stock price Our view [Key metrics over time] Share To enhance market valuation, it is essential to execute strategies that clearly PBR ROE PER price (times) （％） (times) demonstrate future growth potential and gain market underst
Slide 41: Dialogue with shareholders and Investors in FY25.3
Dialogue with shareholders and Investors in FY25.3 Details of communications Feedback to the Board of Directors Targeting institutional investors and analysts: Number of reports to the Board of Directors: Eight Financial results briefings, Briefing of the New Medium- Main measures implemented based
Slide 42: 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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