Kyushu Railway : Financial Results Presentation Materials, Second Quarter (with commentary)（1,629 KB）

Published November 11, 2025 at 4:52 a.m. UTC

Source: MarketScreener

FY26.3 Semi-Annual Investors Meeting

November 6, 2025

KYUSHU RAILWAY COMPANY

I am Yoji Furumiya, the president of JR Kyushu. I would like to thank everyone for taking the time to join us.
Today, I will discuss our financial results for the first six months of the fiscal year ending March 31, 2026, our full-year performance forecasts and dividend forecasts for the fiscal year ending March 31, 2026, the status of segments, and progress on the medium-term business plan.
First, I will discuss our financial results for the first six months of the fiscal year ending March 31, 2026. Please turn to slide 4.
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

Ⅰ Financial Results for the First Six Months of FY26.3
3

	6 months ended September 30, 2024	6 months ended September 30, 2025	YoY
Operating revenue	208.4	237.6	29.2	114.0%
Operating income	29.5	40.8	11.3	138.4%
Ordinary income	29.5	41.0	11.4	138.7%
Extraordinary gains and losses	0.2	(9.3)	(9.6)	-
Net income attributable to owners of the parent	22.6	22.3	(0.3)	98.6%
EBITDA※	47.6	59.6	12.0	125.3%

Consolidated Financial Highlights for the Six-Month Period

Ended September 30, 2025

Key points

（bil）

Owing to higher railway transportation revenues stemming from revised fares and charges, plus higher real estate sales revenue, consolidated operating revenues, operating income, and ordinary income increased year on year.

※Note: EBITDA = operating income + depreciation expense (excluding depreciation of leased assets held for subleasing purposes).

The same applies hereafter

Due to extraordinary losses resulting from

"The heavy rains beginning August 6, 2025" and the cancellation of the project utilizing the space above the tracks at Hakata Station, net income attributable to owners of the parent decreased year on year.

Change in operating revenue by segment

Change in operating income by segment

I will begin by explaining the financial results for the first six months of the fiscal year ending March 31, 2026.
Operating revenue increased by ¥29.2 billion year on year to ¥237.6 billion, primarily due to higher railway transportation revenues from fare and charge revisions, and higher real estate sales revenue from condominium handovers and the sale of owned properties.
Operating income rose by ¥11.3 billion to ¥40.8 billion, supported by the increase in operating revenue. EBITDA also rose by ¥12.0 billion to ¥59.6 billion.
Meanwhile, net income attributable to owners of the
parent decreased by ¥0.3 billion year on year to ¥22.3 billion, as the increase in operating income was offset by the recording of extraordinary losses.

Please turn to the next slide.

Suspended segment

Hisatsu Line,

Yoshimatsu - Hayato

Main damage

Soil inflow Embankment collapse

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 occurred on the Kagoshima Main Line, Nippo Main Line, Hisatsu Line, and other routes.
Operations between Yoshimatsu and Hayato on the Hisatsu Line have been suspended for the time being.

Tosu

Takeo-Onsen

Saga

We recorded an extraordinary loss of approximately ¥1.4 billion, including a provision for loss

on disaster related to railway restoration efforts.

Oita

Kumamoto

Nagasaki

Yatsushiro

Shin-

Yatsushiro

Hitoyoshi

Hayato

Sendai

Yoshimatsu

Kagoshima-Chuo

Kyushu Shinkansen Nishi-Kyushu Shinkansen Conventional lines Suspended

segment （In advance） Suspended

segment （Recently）

I will now explain the extraordinary losses.
"The heavy rains beginning August 6, 2025" caused damage to the Kagoshima Main Line, Nippo Main Line, Hisatsu Line, and other routes. Operations between Yoshimatsu and Hayato on the Hisatsu Line remain suspended, with substitute bus service in place.
As a result of the damage from this rainfall, we recorded an extraordinary loss of approximately
¥1.4 billion, including a provision for disaster-related losses.

Please turn to the next slide.

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 Hakata Station

２０１９	March	Project team launched; deliberations began
２０２１	September	Approved by the Board of Directors
		Plan envisions development including office, hotel,
		and retail space in a 12-story building (one basement
		level, 12 above-ground levels), spanning the area
		above the tracks at Hakata Station

October Preliminary temporary construction work for railway facilities began in advance

２０２２ March Announced as the "the project utilizing the space

above the tracks at Hakata Station"

2025 September Board of Directors decided to cancel the project; cancellation announced

Because the planned site is located directly above the tracks at Hakata Station, the construction would be highly complex and prolonged, resulting in a significant impact from rising construction costs. It was determined that the total construction cost would be nearly double the initial estimate.
In response, the Company reviewed the building's scale and intended uses (assets), redesigned plans, and examined construction methods to improve efficiency and reduce costs. Various possibilities were explored, including adjustments to revenue and cost structures. Despite these efforts, the Company concluded that formulating a feasible business plan was not possible. Accordingly, the Board of Directors resolved to cancel the project in September 2025.
Approximately ¥8.7 billion in project withdrawal losses has been recorded as an extraordinary loss.

I will now explain the cancellation of the project utilizing the space above the tracks at Hakata Station.
Upon confirming that the construction costs would be nearly double the initial estimate, we explored various options, but ultimately determined that it would be difficult to formulate a feasible business plan, and decided to cancel the project.
As a result, we recorded a loss of approximately
¥8.7 billion related to project withdrawal as an
extraordinary loss.
Next, I will explain our full-year performance and dividend forecasts for the fiscal year ending March 31, 2026. Please turn to slide 11.

		Results FY25.3	6 months ended September 30, 2025	Increase /Decrease	Major factors
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		681.8	698.3	16.4
	Current liabilities	212.7	188.4	(24.2)	Decrease in accounts payable-trade and payables
	Non-current liabilities	469.1	509.9	40.7	Increase in Lomg-term loans
Net assets		458.6	474.1	15.4

Interest-bearing debt

423.3

458.0

34.7

Equity ratio

40.0%

40.2%

					（bil）
		6 months ended September 30, 2024	6 months ended September 30, 2025	Increase /Decrease	Major factors
Cash flows from operating activities		54.8	40.5	(14.2)	Increase in income tax and related payments
	Depreciation expense	18.7	19.5	0.7
Cash flows from investing activities		(53.7)	(42.0)	11.6	Decrease in expenditures for non-current assets
Free cash flow		1.1	(1.5)	(2.6)
Cash flows from financing activities		(15.9)	17.3	33.3	Increase due to Long-term loans and commercial papers
Cash and cash equivalents		48.5	61.7	13.2

Consolidated Balance Sheet and Cash Flow Statement

（bil）

			6 months ended September 30, 2024	6 months ended September 30, 2025	YoY		Major factors
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%	Increase due to the revise rail fares and charges
	Real Estate and Hotels		61.1	76.6	15.4	125.3%
		Real Estate Lease	37.6	39.9	2.3	106.1%
		Real Estate Sales	8.4	20.8	12.4	246.6%	Increase in the sales of properties and condominiums
		Hotel Business	15.0	15.7	0.7	105.1%
	Retail and Restaurant		32.4	34.6	2.2	107.0%
	Construction		36.5	40.6	4.0	111.1%
	Business Services		36.6	39.3	2.6	107.3%
Operating income			29.5	40.8	11.3	138.4%
	Transportation		12.2	18.5	6.2	150.8%
		Railway Business (non-consolidated)	12.9	18.9	5.9	146.2%
	Real Estate and Hotels		13.1	17.8	4.7	135.9%
		Real Estate Lease	9.2	10.3	1.0	111.5%
		Real Estate Sales	0.8	4.5	3.6	512.6%
		Hotel Business	3.0	2.9	(0.0)	98.9%
	Retail and Restaurant		1.8	2.0	0.1	109.4%
	Construction		0.2	0.6	0.4	286.5%
	Business Services		1.9	2.3	0.3	116.6%
EBITDA			47.6	59.6	12.0	125.3%
	Transportation		18.7	25.7	6.9	137.1%
		Railway Business (non-consolidated)	19.1	25.9	6.7	135.5%
	Real Estate and Hotels		22.0	26.9	4.9	122.2%
		Real Estate Lease	16.4	17.5	1.0	106.6%
		Real Estate Sales	0.9	4.5	3.6	508.8%
		Hotel Business	4.7	4.8	0.1	102.9%
	Retail and Restaurant		2.5	2.7	0.1	106.7%
	Construction		0.8	1.3	0.4	154.6%
	Business Services		3.5	3.6	0.1	102.9%

Consolidated Results for the First Six Months of FY26.3 (by Segment)

（bil）

			6 months ended September 30, 2024	6 months ended September 30, 2025	YoY		Major Factors
Operating revenue			110.0	134.4	24.4	122.3%
	Railway transportation revenues		73.3	83.6	10.3	114.1%	Increase due to the revise rail fares and charges
		Shinkansen	29.2	33.9	4.6	116.1%
		Conventional Lines	44.0	49.6	5.6	112.7%
	Other revenue		36.7	50.8	14.1	138.6%	Increase in the sales of properties and condominiums
Operating expense			87.4	101.2	13.8	115.9%
	Personnel expense		23.3	25.2	1.9	108.2%	Increase due to the raise in basic wage, etc.
	Non-personnel expense		45.9	56.7	10.8	123.7%
		Energy cost	5.4	5.8	0.4	108.7%
		Maintenance cost	11.5	12.1	0.5	105.1%
		Other	28.9	38.7	9.8	133.8%	Increase in the cost of property sales
	Taxes		6.7	7.0	0.2	103.5%
	Depreciation cost		11.3	12.2	0.8	107.4%
Operating income			22.6	33.2	10.6	146.9%
Non-operating income and expense			0.3	0.1	(0.1)	52.5%
Ordinary income			22.9	33.3	10.4	145.6%
Extraordinary gain and losses			0.2	(10.4)	(10.6)	-	Decrease due to "The heavy rains beginning August 6, 2025" and the cancellation of the project utilizing the space above the tracks at Hakata Station
Net income			17.8	15.9	(1.9)	89.1%

Results by business (non-consolidated)(include in above table)					(bil)
		6 months ended September 30, 2024	6 months ended September 30, 2025	YoY
Railway business	Operating revenue	80.9	91.5	10.5	113.0%
Railway business	Operating income	12.9	18.9	5.9	146.2%
Related businesses	Operating revenue	29.0	42.9	13.9	147.9%
Related businesses	Operating income	9.6	14.2	4.6	147.9%

Non-Consolidated Results for the First Six Months of FY26.3

(bil)

Ⅱ Full-Year Performance Forecasts and Dividend Forecasts for FY26.3

	Results FY25.3	Forecasts FY26.3	YoY
Operating revenue	454.3	489.1	34.7	107.6%
Operating income	58.9	73.1	14.1	123.9%
Ordinary income	59.5	72.3	12.7	121.4%
Net income attributable to owners of the parent	43.6	46.0	2.3	105.4%
EBITDA	95.9	112.0	16.0	116.7%

Medium-Term Business Plan targets

530.0

71.0

115.0

Consolidated Financial Forecast Highlights for FY26.3（Year-on-Year）

（bil） Key points

We revised the forecast announced on August 5, 2025.
Reflecting performance through 1H and the demand outlook for 2H, we have made upward revisions to operating revenue, operating income, and ordinary income; we have revised downward our forecast for net income attributable to owners of the parent.

Change in operating revenue by segment

Change in operating income by segment

We revised the full-year performance forecast for the fiscal year ending March 31, 2026, reflecting customer trends following fare and charge revisions, income and expense trends across segments, and the impact of extraordinary losses. As a result, we have made upward revisions to operating revenue, operating income, and ordinary income, and a downward revision to net income attributable to owners of the parent, relative to the initial forecast.
Although net income attributable to owners of the parent was revised downward from the initial forecast, we have maintained our annual dividend forecast at ¥115.0 per share and resolved to pay an interim dividend of ¥57.5 per share.
Next, I will explain the status of our business segments. Please turn to slide 20.

			Results FY25.3	Forecasts FY26.3	YoY		Major factors	Medium-Term Business Plan targets
Operating revenue			454.3	489.1	34.7	107.6%		530.0
	Transportation		169.3	189.5	20.1	111.9%		189.0
		Railway Business (non-consolidated)	167.0	187.7	20.6	112.4%	Increase in Railway transportation revenues due to the revision of rail fare and charges	-
	Real Estate and Hotels		143.4	154.5	11.0	107.7%		167.0
		Real Estate Lease	78.2	81.3	3.0	103.9%	Increase due to properties opened in the previous fiscal year	-
		Real Estate Sales	32.8	39.9	7.0	121.3%	Increase in sales of properties and condominiums	-
		Hotel Business	32.2	33.3	1.0	103.3%		-
	Retail and Restaurant		67.0	71.3	4.2	106.3%		80.0
	Construction		100.6	100.0	(0.6)	99.4%		110.0
	Business Services		82.5	80.8	(1.7)	97.8%		88.0
Operating income			58.9	73.1	14.1	123.9%		71.0
	Transportation		12.1	25.0	12.8	205.1%		20.5
		Railway Business (non-consolidated)	13.4	25.4	11.9	189.5%		-
	Real Estate and Hotels		31.4	33.1	1.6	105.1%		34.0
		Real Estate Lease	18.2	18.4	0.1	101.0%		-
		Real Estate Sales	6.4	7.6	1.1	117.6%		-
		Hotel Business	6.8	7.1	0.2	104.3%		-
	Retail and Restaurant		3.4	3.8	0.3	109.1%		4.0
	Construction		7.3	6.9	(0.4)	93.7%		8.0
	Business Services		5.2	4.9	(0.3)	93.1%		5.5
EBITDA			95.9	112.0	16.0	116.7%		115.0
	Transportation		25.3	39.6	14.2	155.9%		-
		Railway Business (non-consolidated)	26.2	39.7	13.5	151.7%		-
	Real Estate and Hotels		49.6	51.4	1.7	103.6%		-
		Real Estate Lease	32.8	33.1	0.2	100.7%		-
		Real Estate Sales	6.4	7.6	1.1	117.4%		-
		Hotel Business	10.2	10.7	0.4	104.2%		-
	Retail and Restaurant		4.9	5.3	0.3	106.5%		-
	Construction		8.6	8.3	(0.3)	96.0%		-
	Business Services		8.5	7.9	(0.6)	92.7%		-

Consolidated Financial Forecasts for FY26.3 (by Segment, Year-on-Year)

(bil)

			Results FY25.3	Forecasts FY26.3	YoY		Major factors
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	113.7%
		Conventional Lines	90.7	102.9	12.1	113.4%
	Other revenue		89.6	99.8	10.1	111.4%	Increase in sales of properties and condominiums
Operating expense			204.7	221.4	16.6	108.1%
	Personnel expense		49.9	50.8	0.8	101.6%	Increase due to the raise in basic wage Decrease of lump sum payment
	Non-personnel expense		118.1	131.4	13.2	111.2%
		Energy cost	10.7	11.5	0.7	106.5%	Increase in electricity unit cost
		Maintenance cost	34.2	38.5	4.2	112.4%	Increase due to measures for safety and measures to deterioration
		Other	73.1	81.4	8.2	111.3%	Increase in cost of sales properties
	Taxes		13.4	14.1	0.6	104.8%
	Depreciation cost		23.1	25.1	1.9	108.2%
Operating income			36.0	50.1	14.0	138.9%
Non-operating income and expense			4.6	(0.8)	(5.4)	-
Ordinary income			40.6	49.3	8.6	121.2%
Extraordinary gain and losses			(3.1)	(10.4)	(7.2)	-	Decrease due to "The heavy rains beginning August 6, 2025" and the cancellation of the project utilizing the space above the tracks at Hakata Station
Net income			31.0	29.2	(1.8)	94.0%

		Results FY25.3	Forecasts FY26.3	YoY
Railway business	Operating revenue	167.0	187.7	20.6	112.4%
Railway business	Operating income	13.4	25.4	11.9	189.5%
Related businesses	Operating revenue	73.7	83.8	10.0	113.6%
Related businesses	Operating income	22.6	24.7	2.0	109.0%

Non-consolidated Financial Forecasts for FY26.3 (Year-on-Year)

Results by business (non-consolidated)(include in above table)

(bil)

（bil）

			FY25.3 results	FY26.3 forecast	YoY		Major Factors
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%
		Commuter pass	3.2	3.8	0.5	118.7%	Impact of the revision of rail fares and charges, upward trend: Approx. +0.5
		Non-commuter pass	57.3	65.0	7.6	113.4%	Impact of revised rail fares and charges, upward trend: Approx. +6.0 Rebound from previous year's disaster: +0.6 Increase in events: +0.5 Effect of Osaka/Kansai Expo: +0.5 Increase from marketing initiatives: +0.1 Decrease due to heavy rainfall in August: (0.1)
	Conventional Lines		90.7	102.9	12.1	113.4%
		Commuter pass	27.9	33.3	5.3	119.0%	Impact of the revision of rail fares and charges, upward trend: Approx. +5.0
		Non-commuter pass	62.7	69.6	6.8	111.0%	Impact of the revision of rail fares and charges, upward trend: Approx. +6.0 Increase in events: +0.2 Increase from marketing initiatives: +0.2 Rebound from previous year's disaster: +0.2 Effect of Osaka/Kansai Expo: +0.1 Decrease due to heavy rainfall in August: (0.4)

1,720

1,710

1,700

1,690

1,680

1,670

1,660

+15

1,717

通期予想

（8/5）

8月大雨

による減

大阪関西万博

効果

イベントの増

営業施策等

運賃改定効果、

トレンドの増

イベントの増

営業施策等

運賃改定効果、

トレンドの増

通期予想

（11/5）

Major Factors Affecting Railway Transportation Revenues

(bil)

(Reference) Key factors behind changes from the earnings forecast announced on August 5

(¥ bil)

+1.5

171.7

1H 2H

+1.4

+0.4

+0.3

167.2

+0.6

+0.4

(0.5)

Decrease due to heavy rainfall in August

Effect of Osaka/Kansai Expo

Increase in events

Upward trend

Increase from

marketing initiatives

Full-year

forecast (11/5)

Increase from marketing initiatives

Increase in events

Upward trend

Full-year forecast (8/5)

172.0

171.0

170.0

169.0

168.0

167.0

166.0

	Forecasts FY26.3 (as of Aug.5)	Forecasts FY26.3 (as of Nov.5)	vs. Aug. 5 Forecasts
Operating revenue	483.3	489.1	5.8	101.2%
Operating income	67.6	73.1	5.5	108.1%
Ordinary income	65.9	72.3	6.4	109.7%
Net income attributable to owners of the parent	51.1	46.0	(5.1)	90.0%
EBITDA	106.4	112.0	5.6	105.3%

Medium-Term Business Plan targets

530.0

71.0

115.0

Consolidated Financial Forecast Highlights for FY26.3

（ Compared to Previous Forecast ）

Key points

（bil）

We revised the forecast announced on August 5, 2025.
Reflecting performance through 1H and the demand outlook for 2H, we have made upward revisions to operating revenue, operating income, and ordinary income; we have revised downward our forecast for net income attributable to owners of the parent.

Change in operating revenue by segment

Change in operating income by segment

			Forecasts FY26.3 (as of Aug.5)	Forecasts FY26.3 (as of Nov.5)	vs. Aug. 5 Forecasts		Major factors	Medium-Term Business Plan targets
Operating revenue			483.3	489.1	5.8	101.2%		530.0
	Transportation		184.7	189.5	4.8	102.6%		189.0
		Railway Business (non-consolidated)	183.0	187.7	4.7	102.6%	Increase in railway transportation revenues due to upward trends, more events and marketing initiatives	-
	Real Estate and Hotels		154.5	154.5	-	100.0%		167.0
		Real Estate Lease	80.6	81.3	0.7	100.9%		-
		Real Estate Sales	40.6	39.9	(0.7)	98.3%		-
		Hotel Business	33.3	33.3	-	100.0%		-
	Retail and Restaurant		70.4	71.3	0.9	101.3%		80.0
	Construction		100.0	100.0	-	100.0%		110.0
	Business Services		80.3	80.8	0.5	100.6%		88.0
Operating income			67.6	73.1	5.5	108.1%		71.0
	Transportation		20.6	25.0	4.4	121.4%		20.5
		Railway Business (non-consolidated)	21.1	25.4	4.3	120.4%		-
	Real Estate and Hotels		32.7	33.1	0.4	101.2%		34.0
		Real Estate Lease	18.3	18.4	0.1	100.5%		-
		Real Estate Sales	7.3	7.6	0.3	104.1%		-
		Hotel Business	7.1	7.1	-	100.0%		-
	Retail and Restaurant		3.8	3.8	-	100.0%		4.0
	Construction		6.9	6.9	-	100.0%		8.0
	Business Services		4.7	4.9	0.2	104.3%		5.5
EBITDA			106.4	112.0	5.6	105.3%		115.0
	Transportation		35.4	39.6	4.2	111.9%		-
		Railway Business (non-consolidated)	35.5	39.7	4.1	111.8%		-
	Real Estate and Hotels		51.0	51.4	0.4	100.8%		-
		Real Estate Lease	33.0	33.1	0.1	100.3%		-
		Real Estate Sales	7.3	7.6	0.3	104.1%		-
		Hotel Business	10.7	10.7	-	100.0%		-
	Retail and Restaurant		5.3	5.3	-	100.0%		-
	Construction		8.3	8.3	-	100.0%		-
	Business Services		7.7	7.9	0.2	102.6%		-

Consolidated Financial Forecasts for FY26.3

(by Segment, Compared to Previous Forecast)

(bil)

			Forecasts FY26.3 (as of Aug.5)	Forecasts FY26.3 (as of Nov.5)	vs. Aug. 5 Forecasts		Major factors
Operating revenue			266.3	271.5	5.2	102.0%
	Railway transportation revenues		167.2	171.7	4.5	102.7%	Increase due to upward trends, more events and marketing initiatives
		Shinkansen	66.4	68.8	2.4	103.6%
		Conventional Lines	100.8	102.9	2.1	102.1%
	Other revenue		99.1	99.8	0.7	100.7%
Operating expense			221.4	221.4	-	100.0%
	Personnel expense		51.2	50.8	(0.4)	99.2%
	Non-personnel expense		131.1	131.4	0.3	100.2%
		Energy cost	11.9	11.5	(0.4)	96.6%
		Maintenance cost	37.1	38.5	1.4	103.8%	Increase due to measures for safety and measures to deterioration
		Other	82.1	81.4	(0.7)	99.1%
	Taxes		13.9	14.1	0.2	101.4%
	Depreciation cost		25.2	25.1	(0.1)	99.6%
Operating income			44.9	50.1	5.2	111.6%
Non-operating income and expense			(1.0)	(0.8)	0.2	-
Ordinary income			43.9	49.3	5.4	112.3%
Extraordinary gain and losses			-	(10.4)	(10.4)	-	Decrease due to "The heavy rains beginning August 6, 2025" and the cancellation of the project utilizing the space above the tracks at Hakata Station
Net income			35.2	29.2	(6.0)	83.0%

		Forecasts FY26.3 (as of Aug.5)	Forecasts FY26.3 (as of Nov.5)	vs. Aug. 5 Forecasts
Railway business	Operating revenue	183.0	187.7	4.7	102.6%
Railway business	Operating income	21.1	25.4	4.3	120.4%
Related businesses	Operating revenue	83.3	83.8	0.5	100.6%
Related businesses	Operating income	23.8	24.7	0.9	103.8%

Non-consolidated Financial Forecasts for FY26.3 (Compared to Previous Forecast)

Results by business (non-consolidated)(include in above table)

(bil)

（bil）

38.5

93.0

38.5

39.0

41.5

46.5

57.5

FY26.3

(Plan)

Dividend payout ratio 13.8% 26.3% 30.2% 46.9%

110.3% 46.9% 38.0% 35.1% 38.5%

51.5

44.0

51.5

46.5

57.5

83.0

93.0

98.0

100

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 taking into account the revised performance forecast, for FY26.3 we expect to award annual dividends of ¥115 per share and interim dividends of ¥57.5 per share.

(Reference) Annual dividends per share

Interim Year-end

dividend dividend

120 115.0

*Implementation of

a share repurchase (¥10 billion)

*Implementation of

a share repurchase (¥10 billion)

FY17.3 FY18.3 FY19.3 FY20.3 FY21.3 FY22.3 FY23.3 FY24.3 FY25.3

(Yen)

（参考）１株当たり年間配当金の推移

中間配当

期末配当

（円）

17.3期 18.3期 19.3期 20.3期 21.3期 22.3期 23.3期 24.3期 25.3期

26.3期

（予定）

配当性向

※自己株式取得 (100億円)

Ⅲ Status of Segments

		6months ended September 30, 2024	6months ended September 30, 2025	（bil） YoY
Operating revenue		82.1	92.2	10.0	112.2%
	Railway Business (non-consolidated)	80.9	91.5	10.5	113.0%
	Railway transportation revenues	73.3	83.6	10.3	114.1%
Operating income		12.2	18.5	6.2	150.8%
	Railway Business (non-consolidated)	12.9	18.9	5.9	146.2%
EBITDA		18.7	25.7	6.9	137.1%
	Railway Business (non-consolidated)	19.1	25.9	6.7	135.5%

Results FY25.3	Forecasts FY26.3	YoY
169.3	189.5	20.1	111.9%
167.0	187.7	20.6	112.4%
151.2	171.7	20.4	113.5%
12.1	25.0	12.8	205.1%
13.4	25.4	11.9	189.5%
25.3	39.6	14.2	155.9%
26.2	39.7	13.5	151.7%

150

26.3期

25.3期

2Ｑ 3Ｑ

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】【Forecasts】

（bil）

Status of Key Businesses and Assumptions Behind Forecasts

In Q2, railway transportation revenues exceeded our expectations for both commuter revenues and non-

Railway Transportation Revenues (Year on Year)

and Passenger Numbers

Transportation

revenues: Commuter Transportation

revenues: Non-commuter Passengers: Commuter

Solid line: Results

Dotted line: Forecast

FY26.3 forecast Approx. 119%

114.2% 117.4%

commuter revenues.

Expenses in the railway business exceeded the previous year due mainly to an increase in personnel expenses resulting from base pay increases. Meanwhile, total costs trended slightly below expectations, reflecting such as lower-than-anticipated repair expenses.
Within the revised fares and charges, revision rates and rates of increase:

Commuter: Revision rate of 25.8%; rate of increase of 18.6%

120%

Commuter

Passengers: Non-commuter

Non-commuter

105.8% 105.6%

103.5% 104.2%

100%

103.1% 101.9% 101.8% 104.8%

113.3% 100

113.9% FY26.3 forecast

Approx. 112%

80%

60%

Non-commuter: Revision rate of 14.6%; rate of increase of 11.5%

Charges: Revision rate of 8.0%; rate of increase of 6.5%

1QＱ1

Q44Ｑ 1QＱ1

Q3 Q4Ｑ

FY26.3

FY25.3

(Millions of people)

I will begin with the Transportation segment.
Railway transportation revenues exceeded expectations overall during the three-month period. Commuter revenues were above forecast, while non-commuter revenues were roughly in line with expectations.
While personnel expenses increased due to base pay adjustments, some timing differences in repair costs and other items resulted in total railway business expenses trending slightly below expectations.

Please turn to slide 22.

			6 months ended September 30, 2024	6 months ended September 30, 2025	YoY		Major Factors
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%
	Shinkansen		29.2	33.9	4.6	116.1%
		Commuter pass	1.6	1.8	0.2	115.8%	Impact of revised rail fares and charges, upward trend: Approx. +0.2
		Non-commuter pass	27.6	32.0	4.4	116.1%	Impact of revised rail fares and charges, upward trend: Approx. +3.0 Rebound from previous year's disaster: +0.6 Effect of Osaka/Kansai Expo: +0.5 Increase in events: +0.3 Decrease due to heavy rainfall in August: (0.1)
	Conventional Lines		44.0	49.6	5.6	112.7%
		Commuter pass	14.2	16.4	2.2	115.8%	Impact of revised rail fares and charges, upward trend: Approx. +2.0
		Non-commuter pass	29.8	33.1	3.3	111.3%	Impact of revised rail fares and charges, upward trend: Approx. +3.0 Increase from marketing initiatives: +0.2 Rebound from previous year's disaster: +0.2 Effect of Osaka/Kansai Expo: +0.1 Increase in events: +0.1 Decrease due to heavy rainfall in August: (0.4)

			6 months ended September 30, 2024	6 months ended September 30, 2025	YoY		Major Factors
Total			4,290	4,273	(16.0)	99.6%
		Commuter pass	2,057	2,035	(22.0)	98.9%
		Non-commuter pass	2,232	2,237	5.0	100.2%
	Shinkansen		966	995	29.0	103.1%
		Commuter pass	118	123	5.0	104.4%
		Non-commuter pass	847	871	24.0	102.9%	Increase in the number of passengers on the Kyushu Shinkansen
	Conventional Lines		3,323	3,277	(46.0)	98.6%
		Commuter pass	1,939	1,911	(27.0)	98.6%	Decrease in the number of passengers having school commuter passes
		Non-commuter pass	1,384	1,365	(19.0)	98.6%

Railway Business (Transportation Data)

Railway transportation revenues

(bil)

Passenger-kilometers

（Millions of passenger-kilometer)

	1H FY25.3	1H FY26.3
	Results	Results	Vs. FY25.3
Number of tickets sold	134,000	112,000	84.2 ％
Sales	¥1.83 billion	¥1.83 billion	100.2 ％
(Reference) Unit price*	Approx. ¥13,600	Approx. ¥16,200	11９.0 ％

FY25.3	4.8%	4.0%	4.8%	4.8%	4.6%
FY26.3	4.7%	4.0%

2025.3期

202６.3期

通期

2018年 2020年 2021年 2023年 2025年

4月 6月 4月 10月 4月

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

1.7

1.６

1.8

1.4

*Average unit price per JR-KYUSHU RAIL PASS

Sales by Nationality 1H FY25.3

Others

1H FY26.3

Others

Thailand

South Korea

China

Others

Thaila

South Korea

Hong Kong

China

FY25.3

sales (estimate)

JR-KYUSHU RAIL PASS

English-language ticket FY26.3

Others

English-language ticket sales (estimate)

JR-KYUSHU RAIL PASS

Hong

Kong Taiwan

Taiwan

Percentage of railway transportation revenues

15,000

Price change (3 days, northern Kyushu)

9,500 10,000

8,500

12,000

April 2018 June 2020 April 2021 October 2023 April 2025

Q1 Q2 Q3 Q4 Full year

I will now explain trends in inbound revenue in the railway business.
Inbound revenue progressed in line with expectations and remained above the level of the previous year.
Looking at the breakdown, JR-KYUSHU RAIL PASS sales-which saw a price revision in April-were on par with the prior year, while English-language
ticket sales exceeded the previous year's level.

Please turn to the next slide.

	6months ended September 30, 2024	6months ended September 30, 2025	（bil） YoY		Results FY25.3	Forecasts FY26.3	（bil） YoY
Operating revenue	37.6	39.9	2.3	106.1%	78.2	81.3	3.0	103.9%
Operating income	9.2	10.3	1.0	111.5%	18.2	18.4	0.1	101.0%
EBITDA	16.4	17.5	1.0	106.6%	32.8	33.1	0.2	100.7%

１QQ1

Q２Q2

FY25.3

３QQ3

Q４Q4

１QQ1 ２QQ2

FY26.3

…

25.3期

26.3期

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 station buildings, along with the full-year contribution of new assets such as rental apartments.

【Resultｓ】

【Forecasts】

Status of key businesses

Station building tenant sales

Tenant sales in Q2 were in line with overall expectations,

as the rate of decline in duty-free sales slowed.

120%

(Year on Year)

117.4%

Nintendo's directly managed official store is scheduled to

open at AMU PLAZA HAKATA on November 14. This will be the company's fourth store in Japan and its first location in Kyushu.

115.7%

108.8%

Approx. 101%

100%

104.1%

99.8% 101.3%

Occupancy rates at office buildings and rental apartments
remained generally solid.
80%
Began in-house development of an office building near

Higo-Ozu Station on the Hohi Main Line. Scheduled for completion in January 2027.

I will now explain the Real Estate and Hotels segment.
First, in the real estate leasing business, tenant sales at station buildings remained slightly above the previous year's level. Operating revenue trended above the prior-year level and in line with expectations, supported by increased rent income and contributions from newly operational assets, particularly rental apartments.
While there have been some tenant changes at station buildings, occupancy rates at office buildings and rental apartments have remained solid.

Please turn to the next slide.

	6months ended September 30, 2024	6months ended September 30, 2025	（bil） YoY		Results FY25.3	Forecasts FY26.3	（bil） YoY
Operating revenue	8.4	20.8	12.4	246.6%	32.8	39.9	7.0	121.3%
Operating income	0.8	4.5	3.6	512.6%	6.4	7.6	1.1	117.6%
EBITDA	0.9	4.5	3.6	508.8%	6.4	7.6	1.1	117.4%

25.3期

26.3期

300

200

100

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】

【Forecasts】

Status of Key Businesses

In condominiums, we handed over MJR Chihaya Mid-Square, among
others, in Q2.
As for the sale of owned properties, we sold JR Kumamoto Kasuga-Minami Building, RJR Precia Chidori, and RJR Precia Takasago to a private REIT in Q2.

Actual and forecast sales of condominiums

(operating revenue)

(¥bil)

MJR Chihaya Mid-Square

Location: Higashi-ku,

Fukuoka Structure: 18 floors above

ground Delivery date: March 2025 Units: 532

Sales status: Sales in

progress

JR Kumamoto Kasuga-Minami Building

Location: Nishi-ku,

Kumamoto Structure: 4 floors above

ground

Completion date: December

2020

Total floor area: 3,600 m²

As for condominiums, MJR Kumamoto Gate Tower and MJR Kagoshima-Chuo
Ekimae The Garden, among others, are scheduled to be handed over during the current fiscal year.
Regarding the sale of owned properties, we expect operating revenue of

approximately ¥8.0 billion is for the full year.

FY25.3

FY26.3

Next, I will explain the real estate sales business.
Condominium sales progressed smoothly, with handovers of properties such as MJR Chihaya Mid-Square.
We also sold one office building and two rental
apartment buildings to a private REIT.
As a result, the real estate sales business saw significant year-on-year increases in both revenue and profit, and performance is progressing smoothly relative to the full-year forecast.

Please turn to the next slide.

	6months ended September 30, 2024	6months ended September 30, 2025	（bil） YoY		Results FY25.3	Forecasts FY26.3	（bil） YoY
Operating revenue	15.0	15.7	0.7	105.1%	32.2	33.3	1.0	103.3%
Operating income	3.0	2.9	(0.0)	98.9%	6.8	7.1	0.2	104.3%
EBITDA	4.7	4.8	0.1	102.9%	10.2	10.7	0.4	104.2%

86.8%

82.9% 80.2% 82.4% 83.0% 83.6%

FY26.3 forecast

Occupancy: Approx. 83% ADR: Approx. 25,000 yen

26,301

22,295 22,559 23,922 24,057 22,705

1QＱ1

Q2 Q3

FY25.3

Q44Ｑ

FY26.3

…

26.3期想定

稼働率：83％程度

ADR：25,000円程度

25.3期

26.3期

2Ｑ 3Ｑ

1Ｑ 2Ｑ

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】

Status of Key Businesses

ADR in Q2 was approximately ¥22,000, at the same level as in Q2 FY25.3, while occupancy exceeded expectations, at 83.6%.
The ratio of inbound guests was above 50%, driven in particular by THE BLOSSOM brand locations.

Occupancy rates and ADR

(Yen)

100%

Percentage of inbound guests

(as a percentage of total room sales)

25,000

60%

20,000

50%

55%

50%

15,000

45%

1QQ1 Q2Q2 Q33Q Q44Q 1QQ1 2QQ2 …

FY25.3 FY26.3

10,000

I will now explain the hotel business.
ADR trended below expectations, remaining roughly on par with the second quarter of the previous year, reflecting trends in inbound customer demand.
Occupancy rates exceeded expectations.

Please turn to the next slide.

	6months ended September 30, 2024	6months ended September 30, 2025	（bil） YoY		Results FY25.3	Forecasts FY26.3	（bil） YoY
Operating revenue	32.4	34.6	2.2	107.0%	67.0	71.3	4.2	106.3%
Operating income	1.8	2.0	0.1	109.4%	3.4	3.8	0.3	109.1%
EBITDA	2.5	2.7	0.1	106.7%	4.9	5.3	0.3	106.5%

Q1ｑ1	Q22ｑ	Q3ｑ3	Q44ｑ	Q1Q1	Q22Ｑ	…
	FY25.3				FY26.3

セグメント店舗売上高（対前年）

26.3期

25.3期

Retail and Restaurant Segment

In Q2 FY26.3, both retail stores and restaurants remained firm.
New store openings progressed steadily as planned.

【Results】

【Forecasts】

Status of Key Businesses

In Q2, among retailers, convenience stores

were firm, while among restaurants, franchise stores that opened in the previous fiscal year contributed. Existing store sales continued to exceed year-earlier levels.

150%

105.4% 108.3% 107.4% 106.9% 107.6% 105.1%

100%

New store openings in both retailers and

restaurants progressed generally as planned.

50%

Segment Store Sales (Year on Year)

I will now discuss the Retail and Restaurant segment.
Store sales remained firm at both retail and restaurant locations, centered on existing stores, primarily driven by higher average spending per customer.
New store openings progressed steadily for both retail and restaurant businesses.

Next, I will explain progress on the Medium-Term Business Plan. Please turn to slide 29.

	6months ended September 30, 2024	6months ended September 30, 2025	YoY		Results FY25.3	Forecasts FY26.3	YoY
Operating revenue	36.5	40.6	4.0	111.1%	100.6	100.0	(0.6)	99.4%
Operating income	0.2	0.6	0.4	286.5%	7.3	6.9	(0.4)	93.7%
EBITDA	0.8	1.3	0.4	154.6%	8.6	8.3	(0.3)	96.0%

	6months ended September 30, 2024	6months ended September 30, 2025	YoY		Results FY25.3	Forecasts FY26.3	YoY
Operating revenue	36.6	39.3	2.6	107.3%	82.5	80.8	(1.7)	97.8%
Operating income	1.9	2.3	0.3	116.6%	5.2	4.9	(0.3)	93.1%
EBITDA	3.5	3.6	0.1	102.9%	8.5	7.9	(0.6)	92.7%

Construction Segment, Business Services Segment

Construction Segment

【Results】

【Forecasts】

Business Services Segment

【Results】

【Forecasts】

（bil）

Ⅳ Progress on the Medium-Term Business Plan

Segment	Operating revenue	Operating income
Transportation	189.0	20.5
Real Estate and Hotels	167.0	34.0
Retail and Restaurant	80.0	4.0
Construction	110.0	8.0
Business Services	88.0	5.5

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

Numerical targets

Cash allocation

Operating ¥530.0 billion Operating

Financial soundness

(FY28.3 forecast)

revenue

income

¥71.0 billion

EBITDA ¥115.0 billion ROE Maintain current level

Bonds, borrowings, etc.

Around 5 times

By segment*

Growth investment

(Unit ¥ billion)

Around 40%

¥230 billion

Strategic investment

Operating cashflow

Shareholder return policy

Shareholder return

¥250 billion

Maintenance and

upgrade investment

¥130 billion

*Operating revenue and operating income by segment are before inter-segment

eliminations.

Equity ratio

D/EBITDA

Cash from the sale of real estate

¥30 billion

Safety investment

¥70 billion

Stronger Group governance and establishment of a governance structure that enables appropriate risk-taking

Expansion and pursuit of DX utilization

An integrated approach to environmental issues

Human capital expansion in light of changes in the labor market

(3) Plant Seeds for the Future

(2) City Building through Enhanced Collaboration among Businesses

(1) Realize Sustainable Mobility Services

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.

Key Management

strategies

base

In April, we launched the Medium-Term Business Plan 2025-2027, which is positioned as a period for achieving sustainable growth over the long term. Under this plan, we are advancing three key strategies.
While we expect to continue pursuing these main strategies, we plan to carefully reassess the numerical targets of the plan based on the revised performance forecast for FY2026.3 and further consideration of business trends in the coming fiscal years.
Please turn to the next slide.
30
[Renovated restroom inside the central ticket gate at Hakata Station]
Designs inspired by local elements such as Hakata magemono bentwood and Hakata-ori textiles, layout updates for improved usability, and signage indicating available stalls have been installed.
We are conducting a renovation project to ensure
customers can use station restrooms comfortably.
Renovations include replacing fixtures, upgrading interiors, and updating signage, based on usage conditions and aging of facilities.
Renovations have been completed at 13 stations including Hakata Station (inside the central ticket gate); renovations at 9 more stations are planned within this fiscal year.
⚫
⚫
⚫
Note: The design is for illustrative purposes only.
"Love a Toilet Project"
Information such as departure boards at stations will be
made available via a web browser to improve convenience by providing real-time information.
To reduce maintenance costs, operational data will be moved to the cloud and the traditional departure boards at each station will be replaced with LCD monitors.
A limited trial was conducted at select stations in October 2025.
⚫
⚫
(ticket gates / platforms)
(ticket gates)
(ticket gates / platforms)
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 funding.
Next-Generation Guidance System
⚫
Departure boards Operation status display monitors Audio announcements
Conventional facilities

After

Before

I will now introduce initiatives aimed at enhancing value provided to customers, funded by fare and charge revisions.
First, I will explain the next-generation guidance system. By providing information such as departure board displays via a web browser, passengers will be able to check real-time train operation information. We conducted pilot testing at select stations in October and are continuing preparations for full rollout.
We are also proceeding with restroom renovations to improve comfort, including at Hakata Station inside the central ticket gate.
Please turn to the next slide.