Kyushu Railway Company · TSE:9142
Kyushu Railway — H1 FY26.3 Earnings Presentation
47 slides from Kyushu Railway's earnings presentation, Nov 6, 2025
Slide 1: FY26.3 Semi-Annual Investors Meeting
FY26.3 Semi-Annual Investors Meeting November 6, 2025 KYUSHU RAILWAY COMPANY
Slide 2: Contents
Contents Ⅰ Financial Results for the First Six Months of FY26.3 ３ Ⅱ Full-Year Performance Forecasts and Dividend Forecasts for FY26.3 10 Ⅲ Status of Segments 19 Ⅳ Progress on the Medium-Term Business Plan 28 2
Slide 3: Financial Results for the First Six Months of FY26.3
Ⅰ Financial Results for the First Six Months of FY26.3 3
Slide 4: Consolidated Financial Highlights for the Six-Month Period Ended September 30, 2025
Consolidated Financial Highlights for the Six-Month Period Ended September 30, 2025 （\bil） Key points 6 months ended 6 months ended ⚫ Owing to higher railway transportation September 30, September 30, YoY revenues stemming from revised fares and 2024 2025 charges, plus higher real estate sales reven
Slide 5: About the Recording of Extraordinary Losses ①
About the Recording of Extraordinary Losses ① We recorded extraordinary losses due to “The heavy rains beginning August 6, 2025” and the cancellation of the project utilizing the space above the tracks at Hakata Station. Damage from “The heavy rains beginning August 6, 2025” Hakata ⚫ Damage occurr
Slide 6: About the Recording of Extraordinary Losses ②
About the Recording of Extraordinary Losses ② We recorded extraordinary losses due to “The heavy rains beginning August 6, 2025” and the cancellation of the project utilizing the space above the tracks at Hakata Station. The cancellation of the project utilizing the space above the tracks at Hakat
Slide 7: Consolidated Balance Sheet and Cash Flow Statement
Consolidated Balance Sheet and Cash Flow Statement （\bil） 6 months Results ended Increase Major factors FY25.3 September 30, /Decrease 2025 Assets 1,140.5 1,172.4 31.9 Current assets 214.1 230.5 16.3 Non-current assets 926.3 941.9 15.5 Fixed assets for railway business 164.7 162.7 (2.0) Liabilities
Slide 8: Consolidated Results for the First Six Months of FY26.3 (by Segment)
Consolidated Results for the First Six Months of FY26.3 (by Segment) （\bil） 6 months 6 months ended ended YoY Major factors September 30, September 30, 2024 2025 Operating revenue 208.4 237.6 29.2 114.0% Transportation 82.1 92.2 10.0 112.2% Railway Business (non-consolidated) 80.9 91.5 10.5 113.0% I
Slide 9: Non-Consolidated Results for the First Six Months of FY26.3
Non-Consolidated Results for the First Six Months of FY26.3 (\bil) 6 months 6 months ended ended YoY Major Factors September 30, September 30, 2024 2025 Operating revenue 110.0 134.4 24.4 122.3% Railway transportation 73.3 83.6 10.3 114.1% Increase due to the revise rail fares and charges revenues S
Slide 10: Full-Year Performance Forecasts and Dividend Forecasts for FY26.3
Ⅱ Full-Year Performance Forecasts and Dividend Forecasts for FY26.3 10
Slide 11: Consolidated Financial Forecast Highlights for FY26.3 (Year-on-Year)
Consolidated Financial Forecast Highlights for FY26.3（Year-on-Year） （\bil） Key points Medium-Term Results Forecasts FY25.3 FY26.3 YoY Business Plan ⚫ We revised the forecast announced targets on August 5, 2025. Operating revenue 454.3 489.1 34.7 107.6% 530.0 ⚫ Reflecting performance through 1H Opera
Slide 12: Consolidated Financial Forecasts for FY26.3 (by Segment, Year-on-Year)
Consolidated Financial Forecasts for FY26.3 (by Segment, Year-on-Year) (\bil) Medium-Term Results Forecasts YoY Major factors Business Plan FY25.3 FY26.3 targets Operating revenue 454.3 489.1 34.7 107.6% 530.0 Transportation 169.3 189.5 20.1 111.9% 189.0 Increase in Railway transportation revenues R
Slide 13: Non-consolidated Financial Forecasts for FY26.3 (Year-on-Year)
Non-consolidated Financial Forecasts for FY26.3 (Year-on-Year) （\bil） Results Forecasts YoY Major factors FY25.3 FY26.3 Operating revenue 240.8 271.5 30.6 112.7% Railway transportation revenues 151.2 171.7 20.4 113.5% Increase due to the revision of rail fare and charges Shinkansen 60.5 68.8 8.2 113
Slide 14: Major Factors Affecting Railway Transportation Revenues
Major Factors Affecting Railway Transportation Revenues (\bil) FY25.3 FY26.3 YoY Major Factors results forecast Total 151.2 171.7 20.4 113.5% Commuter pass 31.1 37.1 5.9 118.9% Non-commuter pass 120.0 134.6 14.5 112.1% Shinkansen 60.5 68.8 8.2 113.7% Impact of the revision of rail fares and charges,
Slide 15: Consolidated Financial Forecast Highlights for FY26.3 (Compared to Previous Forecast)
Consolidated Financial Forecast Highlights for FY26.3 （ Compared to Previous Forecast ） Key points （\bil） Forecasts Forecasts vs. Aug. 5 Medium-Term ⚫ We revised the forecast announced FY26.3 FY26.3 Business Plan (as of Aug.5) (as of Nov.5) Forecasts targets on August 5, 2025. Operating revenue 483.
Slide 16: Consolidated Financial Forecasts for FY26.3 (by Segment, Compared to Previous Forecast)
Consolidated Financial Forecasts for FY26.3 (by Segment, Compared to Previous Forecast) (\bil) Forecasts Forecasts Medium-Term FY26.3 FY26.3 vs. Aug. 5 Forecasts Major factors Business Plan (as of Aug.5) (as of Nov.5) targets Operating revenue 483.3 489.1 5.8 101.2% 530.0 Transportation 184.7 189.5
Slide 17: Non-consolidated Financial Forecasts for FY26.3 (Compared to Previous Forecast)
Non-consolidated Financial Forecasts for FY26.3 (Compared to Previous Forecast) （\bil） Forecasts Forecasts FY26.3 FY26.3 vs. Aug. 5 Forecasts Major factors (as of Aug.5) (as of Nov.5) Operating revenue 266.3 271.5 5.2 102.0% Railway transportation revenues 167.2 171.7 4.5 102.7% Increase due to upwa
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 FY28.3, we will aim for a consolidated dividend payout ratio of 35% or higher and flexibly implement share repurchases. Based on the above policy and
Slide 19: Status of Segments
Ⅲ Status of Segments 19
Slide 20: Transportation Segment
Transportation Segment Looking at Q2 FY26.3 railway transportation revenues, commuter revenues and non- commuter revenues both exceeded our forecast. Costs in the railway business have trended slightly below expectations. 【Resultｓ】 （\bil） 【Forecasts】 （\bil） 6months 6months ended ended Results Fo
Slide 21: Railway Business (Transportation Data)
Railway Business (Transportation Data) Railway transportation revenues (\bil) 6 months ended 6 months ended YoY Major Factors September 30, 2024 September 30, 2025 Total 73.3 83.6 10.3 114.1% Commuter pass 15.8 18.3 2.5 115.8% Non-commuter pass 57.4 65.2 7.8 113.6% Cargo 0.0 0.0 0.0 152.6% Shinkanse
Slide 22: Status of Inbound Measures in the Railway Business
Status of Inbound Measures in the Railway Business Inbound revenue in Q2 FY2026.3 progressed in line with expectations, remaining above the year-ago level, despite a shift from the JR-KYUSHU RAIL PASS to regular tickets. Inbound revenue (approximate) Demand for JR-KYUSHU RAIL PASS (¥bil) 1.9 1H FY
Slide 23: Real Estate and Hotels Segment: Real Estate Leasing Business
Real Estate and Hotels Segment: Real Estate Leasing Business Station building tenant sales in Q2 FY26.3 were in line with overall expectations, as a decline in duty-free sales at JR Hakata City has moderated. Operating revenues increased year on year as expected, driven by growth in rents at sta
Slide 24: Real Estate and Hotels Segment: Real Estate Sales Business
Real Estate and Hotels Segment: Real Estate Sales Business Condominium sales were flat year on year in Q2 FY26.3. Regarding the sale of owned properties, we sold one office building and two rental apartments to a private REIT. 【Resultｓ】 （\bil） 【Forecasts】 （\bil） 6months ended 6months ended Resul
Slide 25: Real Estate and Hotels Segment: Hotel Business
Real Estate and Hotels Segment: Hotel Business In Q2 FY26.3, hotels with a high proportion of inbound guests continued to drive performance. ADR was at the same level as in Q2 FY25.3, and occupancy exceeded expectations. 【Resultｓ】 【Forecasts】 （\bil） （\bil） 6months ended 6months ended Results Forec
Slide 26: Retail and Restaurant Segment
Retail and Restaurant Segment In Q2 FY26.3, both retail stores and restaurants remained firm. New store openings progressed steadily as planned. 【Results】 【Forecasts】 （\bil） （\bil） 6months ended 6months ended Results Forecasts September 30, September 30, YoY YoY FY25.3 FY26.3 2024 2025 Operating
Slide 27: Construction Segment, Business Services Segment
Construction Segment, Business Services Segment Construction Segment 【Results】 （\bil） 【Forecasts】 （\bil） 6months ended 6months ended Results Forecasts September 30, September 30, YoY YoY FY25.3 FY26.3 2024 2025 Operating revenue 36.5 40.6 4.0 111.1% 100.6 100.0 (0.6) 99.4% Operating income 0.2 0.6 0
Slide 28: Progress on the Medium-Term Business Plan
Ⅳ Progress on the Medium-Term Business Plan 28
Slide 29: JR Kyushu Group Medium-Term Business Plan 2025–2027
JR Kyushu Group Medium-Term Business Plan 2025–2027 Continuing to review numerical targets in light of the revised forecast for FY26.3. Key strategies and the management base to support them strategies Key (1) Realize Sustainable Mobility (2) City Building through Enhanced Services (3) Plant Seeds
Slide 30: Key Strategy (1) Increase in Value Provided to Customers
Key Strategy (1) Realize Sustainable Mobility Services: Increase in Value Provided to Customers We are implementing initiatives to improve customer satisfaction and create a more comfortable user environment, using increased railway transportation revenues from fare revisions as a source of fundin
Slide 31: Key Strategy (1) Sales Measures
Key Strategy (1) Realize Sustainable Mobility Services: Sales Measures The number of commuter pass users on the Nishi-Kyushu Shinkansen continues to trend upward. In addition, convenience is increasing as the area of IC card use is expanding. We recognize that collaboration events with other com
Slide 32: Key Strategy (1) Disclosing Profitability by Train Line
Key Strategy (1) Realize Sustainable Mobility Services: Disclosing Profitability by Train Line Publicized financial results for lines with fewer than 2,000 passengers per day. Following the Ibusuki Makurazaki Line (between Ibusuki and Makurazaki), held the first meeting of the “Conference to Dis
Slide 33: Key Strategy (1) Initiatives in the Hohi Main Line Area
Key Strategy (1) Realize Sustainable Mobility Services: Initiatives in the Hohi Main Line Area Agreement was reached on measures to be taken in cooperation with Kumamoto Prefecture for the early realization of the development of the airport access railway and the enhancement of transportation capa
Slide 34: Key Strategy (2) City Building around the Hohi Main Line
Key Strategy (2) City Building through Enhanced Collaboration among Businesses: City Building 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. We are involved in a city planning project for t
Slide 35: Key Strategy (2) Participation in Land Readjustment Projects
Key Strategy (2) City Building through Enhanced Collaboration among Businesses: Participation in Land Readjustment Projects A joint enterprise group including us has been selected as the "planned contractor" for land readjustment projects in the towns of Kasuya and Shime, Kasuya-gun, Fukuoka Prefe
Slide 36: Key Strategy (3) Plant Seeds for the Future
Key Strategy (3) Plant Seeds for the Future We entered into a capital and business alliance with XPERISUS Inc. to strengthen the inbound tourism business targeting wealthy visitors. Began maintenance and management of railway overpasses in April this year under an agreement with Kitakyushu City.
Slide 37: APPENDIX
APPENDIX 37
Slide 38: 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 39: 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 reservations） （¥bil） （¥bil） Number of resevations Sales (right) Shinkansen Passange
Slide 40: 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 41: Overview of Major Development Pipelines
Overview of Major Development Pipelines Floor space / Name Location Schedule Lot area / Units Notes (Uses, etc.) / Rooms Site area: Kikuchi-gun, (Tentative name) JR Higo-Ozu January 2027: Planned Approx. 2,556 m² • Leasing to office and semiconductor-related Kumamoto Building Development Project com
Slide 42: Monthly Information and Revise Rail Fares and Charges
Monthly Information and Revise Rail Fares and Charges Revise Rail Fares And Charges Monthly Information (Material from July 2024) ④ ① ②・③ ② ① ③ ③ Trend of Handing Revenues Revenue from tickets sold at JR Kyushu stations, through online JR Kyushu train reservation, and at travel agencies. The "Railwa
Slide 43: Rail Fares and Charges in the Railway Business
Rail Fares and Charges in the Railway Business In April 2025, we implemented a revision of rail fares and charges for the first time in 29 years. Recognizing that it will become difficult to operate a sustainable railway business unless the cost increase caused by changes in the external environ
Slide 44: 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 45: Governance Enhancement Measures in Light of the JR Kyushu Jet Ferry Incident (1)
Governance Enhancement Measures and Implementation Status in the JR Kyushu Group in Light of the JR Kyushu Jet Ferry Incident (1) Item Checkpoints Status Implementation Status and Scheduled Actions Appointment Appointment of officer in Confirmation completed that all Group companies have appointed a
Slide 46: Governance Enhancement Measures in Light of the JR Kyushu Jet Ferry Incident (2)
Governance Enhancement Measures and Implementation Status in the JR Kyushu Group in Light of the JR Kyushu Jet Ferry Incident (2) Item Checkpoints Status Implementation Status and Scheduled Actions Annual holding of Holding JR Kyushu Group JR Kyushu Group In December 2024, the JR Kyushu Group Safety
Slide 47: 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
Kyushu Railway Company — H1 FY26.3 Earnings Presentation on 6ix