Kyushu Railway Company · TSE:9142
Kyushu Railway — Q1 FY26.3 Earnings Presentation
33 slides from Kyushu Railway's earnings presentation, Aug 5, 2025
Slide 1: FY26.3 First Quarter Investors Meeting
FY26.3 First Quarter Investors Meeting AUGUST 5, 2025 KYUSHU RAILWAY COMPANY
Slide 2: Contents
Contents Ⅰ Financial Results for the First Three Months of FY26.3 ３ Ⅱ Full-Year Performance Forecasts and Dividend Forecasts for FY26.3 ８ Ⅲ Status of Segments 13 Ⅳ Progress on the Medium-Term Business Plan 22 2
Slide 3: Financial Results for the First Three Months of FY26.3
Ⅰ Financial Results for the First Three Months of FY26.3 3
Slide 4: Consolidated Financial Highlights for the Three-Month Period Ended June 30, 2025
Consolidated Financial Highlights for the Three-Month Period Ended June 30, 2025 （\bil） Key points 3 months ended 3 months ended YoY ⚫ Owing to higher railway transportation June 30, 2024 June 30, 2025 revenues stemming from revised fares Operating revenue 104.1 117.5 13.3 112.8% and charges, plus h
Slide 5: Consolidated Results for the First Three Months of FY26.3 (by Segment)
Consolidated Results for the First Three Months of FY26.3 (by Segment) （\bil） 3 months 3 months ended ended YoY Major factors June 30, 2024 June 30, 2025 Operating revenue 104.1 117.5 13.3 112.8% Transportation 40.4 45.2 4.7 111.8% Railway Business (non-consolidated) 39.7 44.9 5.1 112.9% Increase du
Slide 6: Consolidated Balance Sheets for the First Three Months of FY26.3
Consolidated Balance Sheets for the First Three Months of FY26.3 （\bil） 3 months Results ended YoY Major factors FY25.3 June 30, 2025 Assets 1,140.5 1,133.0 (7.4) Current assets 214.1 211.4 (2.6) Non-current assets 926.3 921.5 (4.8) Fixed assets for railway business 164.7 164.8 0.0 Liabilities 681.8
Slide 7: Non-Consolidated Results for the First Three Months of FY26.3
Non-Consolidated Results for the First Three Months of FY26.3 (\bil) 3 months 3 months ended ended YoY Major Factors June 30, 2024 June 30, 2025 Operating revenue 57.3 68.7 11.4 119.9% Railway transportation 35.9 41.0 5.0 113.9% Increase due to the revise rail fares and charges revenues Shinkansen 1
Slide 8: Full-Year Performance Forecasts and Dividend Forecasts for FY26.3
Ⅱ Full-Year Performance Forecasts and Dividend Forecasts for FY26.3 8
Slide 9: Consolidated Financial Forecast Highlights for FY26.3
Consolidated Financial Forecast Highlights for FY26.3 （\bil） Key points Medium-Term Results Forecasts ⚫ Consolidated Operating revenue, YoY Business Plan 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 10: 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 11: 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 12: 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. As the result of consideration
Slide 13: Status of Segments
Ⅲ Status of Segments 13
Slide 14: Transportation Segment
Transportation Segment Looking at Q1 FY26.3 railway transportation revenues, commuter revenues were in line with expectations, while non-commuter revenues exceeded our forecast. In FY26.3, we expect revenues and income to rise, owing to the revision of rail fares and charges. 【Resultｓ】 【Forecast
Slide 15: Railway Business (Transportation Data)
Railway Business (Transportation Data) Railway transportation revenues (\bil) 3 months ended 3 months ended YoY Major Factors June 30, 2024 June 30, 2025 Total 35.9 41.0 5.0 113.9% Commuter pass 8.0 9.1 1.1 114.2% Non-commuter pass 27.9 31.8 3.8 113.9% Cargo 0.0 0.0 0.0 141.8% Shinkansen 13.9 16.0 2
Slide 16: Status of Inbound Measures in the Railway Business
Status of Inbound Measures in the Railway Business Inbound revenue in Q1 FY2026.3 progressed in line with expectations, remaining above the year-ago level, despite signs of a shift from the JR-KYUSHU RAIL PASS to regular tickets. Inbound revenue (approximate) Demand for JR-KYUSHU RAIL PASS (¥bil)
Slide 17: Real Estate and Hotels Segment: Real Estate Leasing Business
Real Estate and Hotels Segment: Real Estate Leasing Business Station building tenant sales in Q1 FY26.3 were on par with the previous year overall, despite a decline in duty-free sales at JR Hakata City. Operating revenues increased year on year as expected, driven by growth in rents at station
Slide 18: Real Estate and Hotels Segment: Real Estate Sales Business
Real Estate and Hotels Segment: Real Estate Sales Business Condominium sales were up year on year in Q1 FY26.3. In the sale of properties, we have sold a rental apartment to a third party. 【Resultｓ】 【Forecasts】 （\bil） （\bil） 3months 3months Results Forecasts ended June ended June YoY YoY FY25.3
Slide 19: Real Estate and Hotels Segment: Hotel Business
Real Estate and Hotels Segment: Hotel Business In Q1 FY26.3, hotels with a high proportion of inbound guests continued to drive performance, resulting in a year-on-year increase in ADR and occupancy trending in line with expectations. 【Resultｓ】 【Forecasts】 （\bil） （\bil） 3months 3months Results For
Slide 20: Retail and Restaurant Segment
Retail and Restaurant Segment In Q1 FY26.3, existing retail and restaurant locations performed strongly. New store openings progressed smoothly, generally in line with plan. 【Resultｓ】 【Forecasts】 （\bil） （\bil） 3months 3months Results Forecasts ended June ended June YoY YoY FY25.3 FY26.3 30, 2024
Slide 21: Construction Segment, Business Services Segment
Construction Segment, Business Services Segment Construction Segment 【Results】 【Forecasts】 （\bil） （\bil） 3months 3months Results Forecasts ended June ended June YoY YoY FY25.3 FY26.3 30, 2024 30, 2025 Operating revenue 15.9 17.7 1.7 110.8% 100.6 100.0 (0.6) 99.4% Operating income (0.9) (0.6) 0.2 - 7
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 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 24: Key Strategy (1): Initiatives to Create Demand in the Railway Business
Key Strategy (1) Realize Sustainable Mobility Services: Initiatives to Create Demand in the Railway Business We will work to boost the top line of the railway business by stimulating travel demand through collaboration events with other companies and the planning of discount ticket campaigns. PIKM
Slide 25: Key Strategy (1): Promote Ticketless Services
Key Strategy (1) Realize Sustainable Mobility Services: Promote Ticketless Services By expanding QR ticketless services and introducing mobile IC services, we aim to enhance customer convenience while alleviating congestion in stations. Expansion of QR ticketless services Kokura Mojiko Overview of
Slide 26: Key Strategy (1): Initiatives Involving Local Lines
Key Strategy (1) Realize Sustainable Mobility Services: Initiatives Involving Local Lines Regarding the section of the Hisatsu Line between Yatsushiro and Hitoyoshi, “JR Hisatsu Line Restoration Action Plan Promotion Council,” consisting of Kumamoto Prefecture, local municipalities along the line
Slide 27: Key Strategy (2): Initiatives Involving Logistics Facilities
Key Strategy (2) City Building through Enhanced Collaboration among Businesses: Initiatives Involving Logistics Facilities We began development of the Company’s first wholly owned property in Kumamoto Prefecture, located near the Semicon Techno Park, a hub for the semiconductor industry. Completio
Slide 28: Key Strategy (2): Asset-Light Hotel Expansion
Key Strategy (2) City Building through Enhanced Collaboration among Businesses: Asset-Light Hotel Expansion A fourth hotel is planned in the Hakata Station area, targeted to open in FY29.3. The hotel will be opened under a lease agreement, using an asset-light model. Leased properties: 2 THE BLO
Slide 29: Key Strategy (3) Plant Seeds for the Future
Key Strategy (3) Plant Seeds for the Future Capital and business alliances with Tokyo Artisan Intelligence Co., Ltd. and SkyDrive Inc. Capital and business alliance with Tokyo Artisan Intelligence Co., Ltd. ⚫ Background and objective of the capital and ⚫ Future outlook business alliance • We aim t
Slide 30: APPENDIX
APPENDIX 30
Slide 31: 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 32: 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 33: 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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