Kyushu Railway Company · TSE:9142
Kyushu Railway — FY2026 Earnings Presentation
53 slides from Kyushu Railway's earnings presentation, May 12, 2026
Slide 1: FY26.3 Annual Investors Meeting
FY26.3 Annual Investors Meeting May 12, 2026 KYUSHU RAILWAY COMPANY
Slide 2: Contents
Contents Ⅰ JR Kyushu Group Medium-Term Business Plan 3 2025–2027 Update Ⅱ Financial Results and Year-end Dividend for FY26.3 9 Ⅲ Full-Year Performance Forecasts and 14 Dividend Forecasts for FY27.3 Ⅳ Status of Segments 21 Ⅴ Progress on the Medium-Term Business Plan 31 2
Slide 3: JR Kyushu Group Medium-Term Business Plan 2025–2027 Update
Ⅰ JR Kyushu Group Medium-Term Business Plan 2025–2027 Update 3
Slide 4: Overview of Medium-Term Business Plan 2025–2027 Update
Overview of Medium-Term Business Plan 2025–2027 Update ◼ No change to the basic policy, including key strategies. ◼ Although the impact of the fare revision was as expected, railway transportation revenues increased more than anticipated, and revenue targets have been revised upward. ◼ The railway m
Slide 5: Enhancing the Sustainability of Mobility toward Sustainable Growth of the Entire Group
Enhancing the Sustainability of Mobility toward Sustainable Growth of the Entire Group ◼ Based on revenue trends during the one year following the fare revision, the FY2028.3 target for railway transportation revenues has been revised upward ◼ Promote and strengthen measures to enhance sustainabilit
Slide 6: Leveraging our comprehensive capabilities, aiming to co-create with local communities through city building
Leveraging our comprehensive capabilities, aiming to co-create with local communities through city building ◼ While the project utilizing the space above the tracks at Hakata Station has been canceled, we have acquired development projects for future growth, including Asahi Breweries Hakata Plant Si
Slide 7: Revision of Numerical Targets for FY2028.3
Revision of Numerical Targets for FY2028.3 ◼ Based on increases in railway transportation revenues and progress toward targets in each business, various numerical targets have been revised upward ◼ We will maintain our policy on shareholder returns. The Company will increase dividends in line with p
Slide 8: Revision of Cash Allocation during the Plan Period (2025–2027)
Revision of Cash Allocation during the Plan Period (2025–2027) ◼ Although EBITDA and the real estate sales are expected to exceed initial assumptions, operating cash flow during the plan period is expected to remain in line with initial assumptions due to land acquisitions for monetization in future
Slide 9: Financial Results and Year-end Dividend for FY26.3
Ⅱ Financial Results and Year-end Dividend for FY26.3 9
Slide 10: Consolidated Financial Highlights for FY26.3
Consolidated Financial Highlights for FY26.3 Key points （\bil） Results Results ⚫ Consolidated operating revenue, operating YoY FY25.3 FY26.3 income, ordinary income, and net income attributable to owners of the parent all Operating revenue 454.3 500.3 45.9 110.1% increased year on year, driven prima
Slide 11: Consolidated Balance Sheet and Cash Flow Statement
Consolidated Balance Sheet and Cash Flow Statement （\bil） Results Results Increase Major factors FY25.3 FY26.3 /Decrease Assets 1,140.5 1,222.4 81.9 Current assets 214.1 247.7 33.5 Increase in work in process Non-current assets 926.3 974.7 48.3 Increase in property, plant and equipment Fixed assets
Slide 12: Consolidated Results for FY26.3 (by Segment)
Consolidated Results for FY26.3 (by Segment) （\bil） Results Results YoY Major factors FY25.3 FY26.3 Operating revenue 454.3 500.3 45.9 110.1% Transportation 169.3 190.6 21.3 112.6% Railway Business (non-consolidated) 167.0 188.8 21.8 113.1% Increase due to the revise rail fares and charges Real Esta
Slide 13: Non-consolidated Results for FY26.3
Non-consolidated Results for FY26.3 (\bil) Results Results YoY Major Factors FY25.3 FY26.3 Operating revenue 240.8 272.9 32.0 113.3% Railway transportation 151.2 172.6 21.3 114.1% Increase due to the revise rail fares and charges revenues Shinkansen 60.5 69.1 8.6 114.3% Conventional Lines 90.7 103.4
Slide 14: Full-Year Performance Forecasts and Dividend Forecasts for FY27.3
Ⅲ Full-Year Performance Forecasts and Dividend Forecasts for FY27.3 14
Slide 15: Consolidated Financial Forecast Highlights for FY27.3
Consolidated Financial Forecast Highlights for FY27.3 （\bil） Key points Medium-Term Results Forecasts FY26.3 FY27.3 YoY Business Plan ⚫ Consolidated operating revenue and targets operating income are expected to increase, driven primarily by higher railway Operating revenue 500.3 520.5 20.1 104.0% 5
Slide 16: Consolidated Financial Forecasts for FY27.3 (by Segment)
Consolidated Financial Forecasts for FY27.3 (by Segment) (\bil) Medium-Term Results Forecasts YoY Major factors Business Plan FY26.3 FY27.3 targets Operating revenue 500.3 520.5 20.1 104.0% 564.0 Transportation 190.6 193.0 2.3 101.2% Increase in Railway transportation revenues 196.0 Railway Business
Slide 17: Non-consolidated Financial Forecasts for FY27.3
Non-consolidated Financial Forecasts for FY27.3 （\bil） Results Forecasts YoY Major factors FY26.3 FY27.3 Operating revenue 272.9 286.1 13.1 104.8% Railway transportation revenues 172.6 175.1 2.4 101.4% Increase due to the transition to new commuter pass pricing Shinkansen 69.1 69.3 0.1 100.2% Conven
Slide 18: Major Factors Affecting Railway Transportation Revenues
Major Factors Affecting Railway Transportation Revenues (\bil) FY26.3 FY27.3 YoY Major factors results forecast Total 172.6 175.1 2.4 101.4% Commuter pass 37.0 38.6 1.5 104.1% Non-commuter pass 135.5 136.5 1.0 100.7% Shinkansen 69.1 69.3 0.1 100.2% Commuter pass 3.8 3.9 0.1 102.8% Transition to new
Slide 19: Capital Investment Plan
Capital Investment Plan In FY27.3, the company plans growth investments in logistics facilities and offices, as well as the replacement of aging rolling stock. Medium-Term Management Plan Medium-Term Management Plan 2022–2024 2025–2027 Maintenance and Growth investment 維持更新投資 upgrade 成長投資（戦略投資含む）
Slide 20: Shareholder Returns
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 taking
Slide 21: Status of Segments
IV Status of Segments 21
Slide 22: Transportation Segment
Transportation Segment In Q4 FY26.3, railway transportation revenues progressed generally in line with expectations. Railway operating expenses exceeded both the previous year and expectations due to higher personnel and maintenance costs Railway transportation revenues in FY27.3 are expected to
Slide 23: Railway Business (Transportation Data)
Railway Business (Transportation Data) Railway transportation revenues (\bil) Results Results YoY Major Factors FY25.3 FY26.3 Total 151.2 172.6 21.3 114.1% Commuter pass 31.1 37.0 5.8 118.8% Non-commuter pass 120.0 135.5 15.4 112.9% Cargo 0.0 0.0 0.0 143.3% Shinkansen 60.5 69.1 8.6 114.3% Impact of
Slide 24: Status of Inbound Measures in the Railway Business
Status of Inbound Measures in the Railway Business Inbound revenue in Q4 FY26.3 remained at the same level as the previous year and trended as expected, as an increase in regular ticket usage offset a decrease in the JR- KYUSHU RAIL PASS sales. For FY27.3, inbound revenue is expected to remain a
Slide 25: Real Estate and Hotels Segment: Real Estate Leasing Business
Real Estate and Hotels Segment: Real Estate Leasing Business Station building tenant sales for FY26.3 exceeded overall expectations. Although duty-free sales at JR Hakata City declined in Q1, they showed a recovery trend toward the second half of the fiscal year. For FY27.3, despite the impact o
Slide 26: Real Estate and Hotels Segment: Internal Growth in the Real Estate Leasing Business
Real Estate and Hotels Segment: Internal Growth in the Real Estate Leasing Business We achieved rent increases across all asset types, centered on station buildings, which are the core of the real estate leasing business. We are promoting value enhancement initiatives, including renovations, wit
Slide 27: Real Estate and Hotels Segment: Real Estate Sales Business
Real Estate and Hotels Segment: Real Estate Sales Business In FY26.3, sales of condominiums and Company properties increased, boosting revenue and income. In FY27.3, we expect condominium sales to remain at FY26.3 levels and anticipate increased sales of owned properties. 【Results】 【Forecasts】 （
Slide 28: Real Estate and Hotels Segment: Hotel Business
Real Estate and Hotels Segment: Hotel Business In Q4 FY26.3, hotels with a high proportion of inbound guests continued to drive performance. Occupancy rates and ADR exceeded expectations. In FY27.3, we expect occupancy to remain at FY26.3 levels. We anticipate a gradual rise in ADR. 【Results】 【F
Slide 29: Retail and Restaurant Segment
Retail and Restaurant Segment In FY26.3, both retail stores and restaurants remained firm. New store openings progressed steadily as planned. In FY27.3, we anticipate opening new stores, such as restaurants, in addition to increasing sales at existing stores. 【Results】 【Forecasts】 （\bil） （\bil）
Slide 30: Construction Segment, Business Services Segment
Construction Segment, Business Services Segment Construction Segment 【Results】 【Forecasts】 （\bil） （\bil） Results Results Results Forecasts YoY YoY FY25.3 FY26.3 FY26.3 FY27.3 Operating revenue 100.6 111.0 10.4 110.4% 111.0 114.0 2.9 102.6% Operating income 7.3 7.7 0.3 105.2% 7.7 8.3 0.5 107.2% EBITD
Slide 31: Progress on the Medium-Term Business Plan
Ⅴ Progress on the Medium-Term Business Plan 31
Slide 32: JR Kyushu Group Medium-Term Business Plan 2025–2027: Key strategies and management base
JR Kyushu Group Medium-Term Business Plan 2025–2027 Key strategies and the management base to support them strategies Key (1) Realize Sustainable Mobility (2) City Building through Enhanced Services (3) Plant Seeds for the Future Collaboration among Businesses Management Human capital expansion in l
Slide 33: Key Strategy (1) Realize Sustainable Mobility Services: Promoting the Future Railway Project
Key Strategy (1) Realize Sustainable Mobility Services: Promoting the Future Railway Project A wireless train control system using public telecommunications networks is scheduled for introduction in the Nagasaki area in FY29.3. While enhancing safety, this will also enable the streamlining of grou
Slide 34: Key Strategy (2): Initiatives in the Kumamoto Area
Key Strategy (2) City Building through Enhanced Collaboration among Businesses: Initiatives in the Kumamoto Area We concluded a comprehensive partnership agreement with Kumamoto City, aiming to “create a community centered on rail-based transportation through co-creation.” Comprehensive partnershi
Slide 35: Key Strategy (2): Launch of a New Membership Tier Service
Key Strategy (2) City Building through Enhanced Collaboration among Businesses: Launch of a New Membership Tier Service To cultivate loyal customers who use multiple services across the Group, we will launch a new membership tier service “JR KYUPO Waku Waku Program” on April 1, 2026. We aim to c
Slide 36: Key Strategy (2): Participate in Public Redevelopment Projects
Key Strategy (2) City Building through Enhanced Collaboration among Businesses: Participate in Public Redevelopment Projects Officially selected as the project operator for the land use project for the site of the former Kyushu University Hakozaki Campus ⚫ Based on the concept of the “HAKOZAKI Gre
Slide 37: Key Strategy (3) Plant Seeds for the Future: Grid-Based Storage Battery Business
Key Strategy (3) Plant Seeds for the Future: Initiatives in the Grid-Based Storage Battery Business The second project, “Battery Station Tomiai,” has been completed in the city of Kumamoto and has commenced operations. Battery Station Kyushu LLC ⚫ In April 2023, we established a limited JR Kyushu
Slide 38: Business Development in Harmony with the Environment: Information disclosure based on TNFD recommendations
Business Development in Harmony with the Environment: Information disclosure based on TNFD recommendations Implemented “Disclosure Based on TNFD Recommendations,” a non-financial KPI under the Medium-Term Business Plan Conducted a comprehensive analysis of dependencies and impacts on natural cap
Slide 39: Non-Financial KPIs in the Medium-Term Business Plan 2025–2027
Non-Financial KPIs in the Medium-Term Business Plan 2025–2027 We are progressing generally as planned with respect to non-financial KPIs set under the Medium-Term Business Plan. Materiality Major strategies/initiatives, indicators/targets (FY28.3) Progress (FY26.3) Medium-term safety plan • Accide
Slide 40: Reference: Initiatives to realize management that is conscious of capital cost and stock price
Reference: Initiatives to realize management that is conscious of capital cost and stock price Our view To enhance market valuation, it is essential to execute strategies that clearly demonstrate future growth potential and gain market understanding. From the perspective of increasing shareholder va
Slide 41: Specific Initiatives to Realize Management That Is Conscious of Capital Cost and Stock Price
Specific Initiatives to Realize Management That Is Conscious of Capital Cost and Stock Price Target Execution and Progress of Key Initiatives (FY26.3) [(1) Realization of sustainable mobility services] [Timely and appropriate review of business •Realization of the effects of fare revisions portfolio
Slide 42: Analysis of Our Current Status and Outlook
Analysis of Our Current Status and Outlook Analysis Outlook ⚫ Improvement in earnings capacity and capital efficiency ⚫ Balancing sustainability and profitability of the railway Earnings capacity and capital efficiency have steadily improved, driven business by the realization of the effects of fare
Slide 43: APPENDIX
APPENDIX 43
Slide 44: EBITDA by Segment
EBITDA by Segment Real Estate and Hotels Transportation （¥bil） EBITDA EBITDA margin （¥bil） EBITDA EBITDA margin 38.6 60 60% 40 40% 52.9 49.6 50 30 25.3 30% 22.3 40.8 50% 40 36.2 20 13.1 20% 31.8 31.9 20.3% 10 10% 30 40% 13.6% 15.0% 9.5% 0 0% 20 FY22.3 FY22.3 FY23.3 FY24.3 FY25.3 FY26.3 34.6% 30% 33.
Slide 45: Trends in the Railway Business
Trends in the Railway Business Internet train reservation services: Railway transportation revenues (Shinkansen), passenger load factor on the Kyushu Shinkansen (Hakata-Kumamoto) （10,000 rersevations） Number of reservations, sales （¥bil） Number of resevations Sales (right) （¥bil） Shinkansen Passange
Slide 46: 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 296.5 （¥） ADR Occupancy Rates(right) 289.1 300.0 100% 262.8 24,000 83.1% 84.4% 78.8% 250.0 222.1 20,000 80% 140.3 148.0 67.5
Slide 47: Overview of Major Development Pipelines
Overview of Major Development Pipelines Lot area / Floor Name Location Schedule space / Units / Notes (Uses, etc.) Rooms Site area: Kikuchi-gun, (Tentative name) JR Higo-Ozu Building Spring 2027: Approx. 2,556 m² Kumamoto • Office building Development Project Planned completion Total floor space: Pr
Slide 48: 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 49: 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 Handling Revenues Revenue from tickets sold at JR Kyushu stations, through online JR Kyushu train reservation, and at travel agencies. The "Railw
Slide 50: Engagement with Shareholders and Investors in FY26.3
Engagement with Shareholders and Investors in FY26.3 Feedback to the Board of Directors Number of Overview of activities reports: 8 For institutional investors and analysts: Earnings briefings, IR Day, small meetings, site visits, Key initiatives implemented based on feedback: and one-on-one meeting
Slide 51: 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 of officer in charge of Appointment status of In July 2025, confirmation completed that al
Slide 52: 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 In July and December 2025, the JR Kyushu Group Safety Promotion Conference was held,
Slide 53: 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 — FY2026 Earnings Presentation on 6ix