Kyushu Railway : Financial Results Presentation Materials (with commentary)（1,066 KB）

• 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 be covering JR Kyushu Group Medium-Term Business Plan 2025–2027 Update, our financial results for the fiscal year ended March 31, 2026 and year-end dividend, our full-year performance and dividend forecasts for the fiscal year ending March 31, 2027, segment performance, and the progress of our medium-term business plan initiatives.

• I will begin with the Medium-Term Business Plan Update. Please turn to slide 4.

  Contents

  Ⅰ

  JR Kyushu Group Medium-Term Business Plan

  2025–2027 Update

  3

  Ⅱ Financial Results and Year-end Dividend for FY26.3

  9

  Ⅲ

  Full-Year Performance Forecasts and

  Dividend Forecasts for FY27.3

  14

  Ⅳ Status of Segments

  21

  Ⅴ Progress on the Medium-Term Business Plan

  31

  2

• I will provide an overview of this update.

• First, there are no changes to our basic policy, including the key strategies set out for the duration of the Medium-Term Business Plan.

• On the other hand, in light of changes in the business environment over the past year, we will make agile revisions to the various initiatives I will outline shortly.

• Please turn to the next slide.

  +1.1

  Expansion of investment in human capital

  • Implemented base pay increases to further improve employee compensation.

  • FY2026.3: 7.1% overall including regular salary increases

  • FY2027.3: 4.0% overall including regular salary increases

  174.0

  +1.5

  172.0

  171.0

  170.0

  Promoting the use of TCP sleepers

  168.0

  167.2

  Expediting the introduction of new

  rolling stock

  166.0

  +1.3 175.1

  176.0

  +1.6

  178.0

  +1.3 178.0

  180.0

  Pursue the utmost safety and security at all times

  of sales measures.

  (¥ bil)

  We will steadily execute initiatives to pursue safety

  and security, improve operational efficiency, enhance customer experience (CX), and improve employee compensation, using the proceeds from fare revisions as a financial resource.

  In response to the increase in railway transportation revenues, we will accelerate our efforts under the initiative.

  Revised the FY2028.3 target upward

  ¥171.0 billion → ¥178.0 billion

  • Customer diversion due to the fare revision

    remained in line with initial assumptions. ⚫

  • In FY2028.3, in addition to trend growth, we aim to further accumulate revenues through the promotion

  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 sustainability, including safety

  • Status of Railway Transportation Revenues ■ Measures to Enhance Sustainability

  ⚫

  5

  (1.3)

FY28.3 revised target

FY28.3 initial target

Upward trend

Business initiatives

FY27.3 forecast

Upward trend

Business initiatives

Transition to new commuter pass pricing

Decrease due to FY26.3

extraordinary factors

FY26.3 results

FY26.3 initial forecast

• The most significant change since the announcement of the Medium-Term Business Plan in March last year has been the trend in railway transportation revenues. In the previous fiscal year, results came in at ¥172.6 billion, significantly exceeding our initial assumption, driven by successful sales initiatives and a recovery in underlying demand.

• While maintaining this upward revenue trend and continuing to build on our sales efforts, we are revising upward to

  ¥178.0 billion our transportation revenue target for the final year, the fiscal year ending March 31, 2028.

• At the same time, the business environment has been marked by greater-than-expected inflation and the increasing significance of human capital. In response, we have decided to allocate a portion of the increase in railway transportation revenues toward front-loading equipment repairs aimed at reducing future cost burdens, as well as improvements to compensation and the work environment.

• Please turn to the next slide.

  Leveraging our comprehensive capabilities, aiming to co-create with localcommunities 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 Site. In addition to the Fukuoka metropolitan area, we will promote new developments in areas such as along the Hohi Main Line, where semiconductor companies are increasingly concentrated.

  The JR

  Kyushu Group’s City-Building Aims

  We are committed to enhancing the attractiveness of station areas, which serve as social infrastructure,

  together with the local community. Through the provision of safe and comfortable mobility services, we aim to contribute to sustainable city building by cultivating the local population and promoting interaction around the stations.

  Provided by a group led by Sumitomo Corporation

  Kyushu University Hakozaki Campus Tentative name: Land Readjustment Former site land utilization project Projects in Nakabaru Higashi District,

  Kasuya and Befu District, Shime

  Comprehensive partnership Tentative name: JR Higo-Ozu Building agreement with Kumamoto City Development Project

  (March 2026) (Date of completion : Spring 2027)

  6

• Another major change over the past year has been the cancellation of the project utilizing the space above the tracks at Hakata Station. While this was a difficult decision, it reflects our strict adherence to investment criteria and our prioritization of enhancing corporate value.

• At the same time, there have also been new developments, such as the decision to acquire Asahi Breweries Hakata Plant Site. We will continue to strongly promote the city building initiatives we aim to achieve as a Group—not only within the real estate business, but also through co-creation with local governments and other stakeholders.

• Please turn to the next slide.

  Operating revenue

  ¥530.0 billion ¥564.0 billion （Initial target） （Revised）

  EBITDA

  ¥115.0 billion ¥125.5 billion （Initial target） （Revised）

  Operating income

  ¥71.0 billion ¥81.0 billion （Initial target） （Revised）

  ROE

  Maintain current level Around １０％ （Initial target） （Revised）

  Segment	Operating revenue*1			Operating income*1
  	Initial target	Revised*2		Initial target	Revised*2
  Transportation	189.0	196.0	（＋7.0）	20.5	2３.5	（＋3.0）
  (Of which, Railway transportation revenues)	171.0	178.0	（＋7.0）	ー	ー	ー
  Real Estate and Hotels	167.0	188.0	（＋21.0）	34.0	39.5	（＋5.5）
  Retail and Restaurant	80.0	82.0	（＋2.0）	4.0	4.5	（＋0.5）
  Construction	110.0	118.0	（＋8.0）	8.0	8.5	（＋0.5）
  Business Services	88.0	96.0	（＋8.0）	5.5	5.5	ー
  Total*3	530.0	564.0	(+34.0)	71.0	81.0	(+10.0)

  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 profit growth.

  Numerical targets

  Unit：¥ billion

  Shareholder returnpolicy （Unchanged）

  Note 1 : Operating revenue and operating income by segment are before inter-segment eliminations

  Note 2: Figures in parentheses indicate the amount of revision from the initial Medium-Term Business Plan targets announced in March 2025 Note 3: Total is after inter-segment adjustments

  7

  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.

• Next, I will explain the revision of our financial targets for fiscal 2027.

• In addition to the upside in railway transportation revenues, we have accumulated the effects of sales initiatives and efficiency measures across each segment, leading us to revise upward all key indicators. In addition, with a focus on capital efficiency, we have clarified our ROE target at “around 10%.”

• Please turn to the next slide.

  Note: All figures shown are approximate values

  The Company will continue

  to pay dividends with a consolidated payout ratio of 35% or higher, while also flexibly carrying out share repurchases.

  • As a result, operating

  cash flow is expected to remain in line with initial assumptions.

  ⚫

  The total amount of

  maintenance and renewal investment remains as initially planned, but the proportion allocated to safety investment will be increased.

  Shareholder return

  Shareholder return

  Operating

  cashflow

  ¥250.0 billion

  Meanwhile, operating

  cash flow will decline due to land acquisitions for monetization in future periods, etc.

  ⚫

  ⚫

  Strategic

  investment

  Strategic

  investment

  Although the project

  utilizing the space above the tracks at Hakata Station has been cancelled, the Company will continue to pursue and explore new development projects toward execution of planned growth investments, including strategic investments.

  Cash from the

  sale of real estate

  ¥50.0 billion

  We expect proceeds

  from real estate sales to exceed initial assumptions.

  ⚫

  Growth

  investment

  ¥230.0 billion

  Growth

  investment

  ¥230.0 billion

  Bonds, borrowings,

  etc.

  Bonds, borrowings,

  etc.

  ⚫

  EBITDA is expected to

  exceed initial assumptions due to increases in railway transportation revenues, etc.

  ⚫

  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 periods, etc.

  • The Company will continue to pursue and explore new development projects toward execution of planned growth investments, including strategic investments.

  Cash in Cash out

  Assumptions at time Assumptions at time of announcement of announcement

  8

Cash from the sale of real estate

¥30.0 billion

Operating cashflow

¥250.0 billion

• I will now explain our cash allocation.

• On the cash inflow side, while increasing property sales, we also plan to acquire real estate that will serve as seeds for growth beyond the current Medium-Term Business Plan, maintaining the original scale of approximately ¥250 billion.

• On the cash outflow side, although there are differences resulting from the cancellation of the project utilizing the space above the tracks at Hakata Station, we will continue to identify and carefully select investment opportunities that meet our strict criteria.

• As for dividends, which I will discuss later, we will maintain our policy of a dividend payout ratio of 35% or more and aim to achieve dividend increases in line with profit growth.

• This concludes the Medium-Term Business Plan 2025–2027 Update.

• Next, I will explain the financial results for the fiscal year ended March 31, 2026. Please turn to slide 10.

  9

  Ⅱ Financial Results and Year-end Dividend for FY26.3

Consolidated Financial Highlights for FY26.3

（bil）

• Consolidated operating revenue, operating income, ordinary income, and net income attributable to owners of the parent all increased year on year, driven primarily by higher railway passenger revenues following fares and charges revisions and increased real estate sales.

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

10

• Operating revenues increased by ¥45.9 billion year on year to

  ¥500.3 billion, driven by higher railway passenger revenues following fare revisions, as well as increased real estate sales from condominium handovers and the sale of owned properties.

• Operating income rose by ¥15.0 billion year on year to ¥74.0 billion, reflecting the increase in operating revenues. EBITDA also increased by ¥16.7 billion to ¥112.6 billion.

• Profit attributable to owners of parent increased by ¥1.8 billion year on year to ¥45.4 billion, mainly due to higher operating income.

• Based on these results, we plan a year-end dividend of ¥57.5 per share, for a total annual dividend of ¥115 per share, including the interim dividend.

• Next, I will explain our full-year performance and dividend forecasts for the fiscal year ending March 31, 2027. Please turn to slide 15.

Consolidated Balance Sheet and Cash Flow Statement

（bil）

11

Consolidated Results for FY26.3 (by Segment)

（bil）

12

Non-consolidated Results for FY26.3

(bil)

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

(bil)

13

Consolidated Financial Forecast Highlights for FY27.3

（bil）

• Consolidated operating revenue and

operating income are expected to increase, driven primarily by higher railway

1. transportation revenues and an increase in

   property sales.

   81.0

   • Ordinary income is expected to decrease

— due to an increase in interest expense.

—

125.5

• Net income attributable to owners of the

parent is expected to increase, reflecting the absence of the extraordinary losses recorded in the previous fiscal year.

15

• These are the highlights of our full-year performance forecasts for the fiscal year ending March 31, 2027.

• Operating revenues are expected to increase by ¥20.1 billion to ¥520.5 billion, driven by higher railway passenger revenues in the transportation segment and increased property sales in the real estate and hotels segment.

• Although we anticipate higher personnel expenses due to improved employee compensation and increased depreciation, operating income is expected to rise by ¥0.9 billion to ¥75.0 billion, supported by revenue growth.

• Profit attributable to owners of parent is expected to increase by ¥6.1 billion to ¥51.6 billion, mainly due to the absence of extraordinary losses recorded in the previous fiscal year.

• Regarding the impact of rising tensions in the Middle East, we recognize various risks across segments—including higher fuel costs, delays in material deliveries, supply constraints, and a slowdown in consumer trends. However, as it is currently difficult to reasonably estimate the impact on our performance, these factors have not been incorporated into our forecasts. We will continue to closely monitor developments.

• Please turn to slide 19.

Consolidated Financial Forecasts for FY27.3 (by Segment)

(bil)

564.0

196.0

— 188.0

—

—

— 82.0

118.0

96.0

81.0

23.5

— 39.5

—

—

— 4.5

8.5

5.5

125.5

—

—

—

—

—

—

—

—

—

16

Non-consolidated Financial Forecasts for FY27.3

（bil）

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

(bil)

17

26.3期実 績

26.3期特殊 要因

による減

定期新単 価移行

営業施 策

トレンド増

27.3期通期 予想

Major Factors Affecting Railway Transportation Revenues

(bil)

（¥bil）

176.0

175.0

174.0

173.0

172.0

171.0

170.0

+1.3

175.1

+1.1

172.6

+1.5

(1.3)

Decrease due to

FY26.3 Results extraordinary

factors in FY26.3

Transition to

new commuter pass pricing

Increase from

marketing initiatives

Impact of

upward trend

FY27.3

forecast

18

¥125.5

billion

34.3

¥116.2

billion

¥112.6

billion

¥95.9

billion

¥80.0

billion

EBITDA ¥63.8

billion

• LOGI STATION Fukuoka Hakozaki

• JR Higo-Ozu Building

• Development of the former site of Kyushu

University Hakozaki Campus

FY23.3 FY24.3 FY25.3 FY26.3 FY27.3 FY28.3

Maintenance and

(plan) (forecast) upgrade

investment

0.0

40.0

37.1

32.0

D/EBITDA

5.5 times 5.0 times 4.4 times 4.2 times

-

Approx.

5 times

• Modification of conventional line rolling stock

• Series 813 refurbishment

• N700 series modifications

Equity ratio

40.7%

40.5%

40.0%

40.4%

-

Approx.

40%

19

90.8

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.

(¥ bil)

140.0

Maintenance and

upgrade investment

Growth investment

(including strategic investment)

146.5

126.6

• Medium-Term Management Plan 2025–2027

120.0

Growth investment (including ¥230.0 billion

107.6

strategic investment)

100.2

100.0

46.8

99.7

Maintenance and

upgrade investment

¥130.0 billion

80.0

94.5

• Major capital investment projects in FY27.3

65.8

70.4

50.8

60.0

40.0

Growth

investment

20.0

1,400

1,200

1,000

800

600

400

200

0

維持更新 投資

成長投資（戦略 投資含む）

• Next, I will explain our capital investment plan.

• In the current fiscal year, we will continue to utilize our debt capacity to make growth investments in logistics facilities, offices, and other assets.

• In addition, we are planning maintenance and renewal investments, including the refurbishment of railway rolling stock in connection with fare revisions.

• As a result, we plan total capital investment of ¥146.5 billion.

• Please turn to the next slide.

  46.5

  51.5

  60

  44.0

  38.5

  93.0 93.0 93.0 93.0

  40

  57.5 60.5

  20

  38.5

  39.0

  41.5

  46.5

  46.5

  0

  FY17.3 FY18.3 FY19.3 FY20.3 FY21.3 FY22.3 FY23.3 FY24.3 FY25.3 FY26.3 FY26.3

  (Plan) (Forecast)

  Dividend payout ratio 13.8% 26.3% 30.2% 46.9% - 110.3% 46.9% 38.0% 35.1% 38.9% 36.1%

  * Implementation of * Implementation of

  a share repurchase a share repurchase

  (¥10 billion) (¥10 billion)

  51.5

  80

  60.5

  57.5

  83.0

  98.0

  93.0

  93.0 93.0 93.0 93.0 93.0

  100

  115.0

  121.0

  Year-end

  dividend

  Interim

  dividend

  (Yen)

  120

  (Reference) Annual dividends per share

  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 FY27.3 we expect to pay annual dividends of ¥121 per share and interim dividends of

  ¥60.5 per share.

  20

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）

27.3期

（予想）

配当性 向

※自己株式取得 (100億円)

※自己株式取得 (100億円)

• I will now explain shareholder returns.

• Under the Medium-Term Business Plan 2025–2027, our policy is to maintain a dividend payout ratio of 35% or more on a consolidated basis, while also conducting flexible share repurchases. Based on this policy, we forecast an annual dividend of ¥121 per share for the current fiscal year.

• Next, I will explain segment performance. Please turn to slide 22.

  21

%

実線： 実績

点線： 想定

26.3期

27.3期

1Ｑ 2Ｑ 3Ｑ 4Ｑ

1Ｑ 2Ｑ 3Ｑ 4Ｑ

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 exceed FY26.3 levels.

【Results】

（bil） 【Forecasts】

（bil）

Status of Key Businesses and Assumptions Behind Forecasts

• In Q4, railway transportation revenues progressed in line with expectations.

Railway Transportation Revenues (Year on Year)

and Passenger Numbers

Transportation

revenues: Commuter Solid line: Results Transportation revenues: Dotted line: Forecast

130%

122.5% 121.5

Non-commuter

(Millions

of people)

150

117.4%

114.2%

Passengers: Commuter

Passengers: Non-Commuter

• Railway operating expenses exceeded both

expectations and the previous year’s level, mainly because of higher personnel and maintenance costs.

110%

Commuter FY27.3 forecast Approx. 104%

113.9% 113.3% 114.0%

110.5%

100

90%

• Railway transportation revenues for FY27.3 are

expected to exceed FY26.3 levels, partly reflecting the continued impact of fare revisions for commuter passes in the first half of the fiscal year.

Non-commuter FY27.3 forecast Approx. 101%

50

70%

• Regarding railway operating expenses for FY27.3, we

expect an increase in personnel expenses, depreciation costs and other costs.

50%

0

Q1

Q2

Q3

FY26.3

Q4

Q1

Q2

Q3

Q4

FY27.3

22

53

52

56

• First, I will explain the Transportation Segment.

• Railway passenger revenues in the previous fiscal year have, over the past three months, trended in line with expectations for both commuter and non-commuter categories.

• Costs in the railway business have also progressed generally as expected.

• In the current fiscal year, we expect revenue growth, supported in part by the continued impact of fare revisions on commuter revenues in the first half, as well as various initiatives implemented throughout the year.

• On the cost side, while we anticipate increases in personnel expenses due to base salary revisions and higher depreciation, we expect operating income to remain at roughly the same level.

• Please turn to slide 24.

  			Results FY25.3	Results FY26.3	YoY		Major Factors
  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%
  		Commuter pass	3.2	3.8	0.6	119.8%	Impact of revised rail fares and charges, upward trend: Approx. +0.5
  		Non-commuter pass	57.3	65.3	8.0	114.0%	Impact of revised rail fares and charges, upward trend: Approx. +6.0 Rebound from previous year's disaster: +0.6 Effect of Osaka/Kansai Expo: ＋0.5 Increase in events: +0.4 Increase from marketing initiatives: +0.1 Decrease due to heavy rainfall in August: (0.1)
  	Conventional Lines		90.7	103.4	12.6	114.0%
  		Commuter pass	27.9	33.2	5.2	118.7%	Impact of revised rail fares and charges, upward trend: Approx. +5.0
  		Non-commuter pass	62.7	70.1	7.4	111.9%	Impact of revised rail fares and charges, upward trend: Approx. +6.0 Increase from marketing initiatives: +0.3 Rebound from previous year's disaster: +0.2 Effect of Osaka/Kansai Expo: ＋0.1 Increase in events +0.3 Decrease due to heavy rainfall in August: (0.4)

  Total		8,595	8,493	(102)	98.8%
  	Commuter pass	4,001	3,904	(97)	97.6%
  	Non-commuter pass	4,593	4,588	(5)	99.9%

  Railway Business (Transportation Data)

  Railway transportation revenues

  (bil)

  Passenger-kilometers

  （Millions of passenger-kilometer)

  Results

  FY25.3

  Results

  FY26.3

  YoY

  Major Factors

  Shinkansen

  Commuter pass

  1,986

  234

  2,016

  242

  30

  8

  101.5%

  103.7%

  Non-commuter pass

  1,751

  1,773

  21

  101.3%

  Conventional Lines

  6,609

  6,476

  (132)

  98.0%

  Commuter pass

  3,767

  3,661

  (105)

  97.2% Decrease in the number of passengers

  having school commuter passes

  Non-commuter pass

  2,841

  2,814

  (27)

  99.0%

  23

  	Cumulative Q4 FY25.3	Cumulative Q4 FY26.3
  	Results	Results	Vs. FY25.3
  Number of tickets sold	279,000	215,000	77.3 ％
  Sales	¥3.87 billion	¥3.59 billion	92.8 ％
  (Reference) Unit price*	Approx. ¥13,800	Approx. ¥16,600	120.0 ％

  FY25.3	4.8%	4.0%	4.8%	4.8%	4.6%
  FY26.3	4.7%	4.0%	5.0%	4.4%	4.5%

  2025.3期

  202６.3期

  1Q

  2Q

  3Q

  4Q

  通期

  2018年

  4月

  2020年

  6月

  2021年

  4月

  2023年

  10月

  2025年

  4月

  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 at the same level as FY26.3.
  Inbound revenue (approximate) Demand for JR-KYUSHU RAIL PASS

  2.2

  (¥bil)

  1.9

  1.9

  1.7

  1.6

  1.8 1.8

  1.4

  * Average unit price per JR-KYUSHU RAIL PASS

  Sales byNationality

  Cumulative

  Q4 FY25.3

  Cumulative

  Q4 FY26.3

  Q1

  Q2

  Q3

  Q4

  Others

  Thailand

  Others

  Taiwan

  Others

  FY25.3

  English-language ticket

  sales (estimate)

  JR-KYUSHU RAIL PASS

  FY26.3

  English-language ticket

  sales (estimate)

  JR-KYUSHU RAIL PASS

  Thailand

  South Korea

  Taiwan

  Others

  South

  Korea

  Hong

  Kong

  China

  Hong China Kong

  Percentage of railway transportation revenues

  ¥15,000

  Price change (3 days, northern Kyushu)

  ¥12,000

  ¥9,500 ¥10,000

  ¥8,500

  April 2018

  June April

  2020 2021

  October 2023

  April 2025

  24

  Q1 Q2 Q3 Q4 Full year

• Next, I will explain inbound demand in the railway business.

• Inbound revenues over the past three months have remained generally in line with expectations, at approximately the same level as the previous year.

• Looking at the breakdown, JR-KYUSHU RAIL PASS sales declined year on year due to the impact of travel restraint advisories issued by the Chinese government, while English-language ticket sales exceeded the previous year.

• For the current fiscal year, we expect inbound revenues to be at a similar level to the previous fiscal year.

• Please turn to the next slide.

  	Results FY25.3	Results FY26.3	YoY
  Operating revenue	78.2	82.9	4.6 106.0%
  Operating income	18.2	18.7	0.4 102.7%
  EBITDA	32.8	33.4	0.5   101.7%

  Results FY26.3	Forecasts FY27.3	YoY
  82.9	84.1	1.1 101.4%
  18.7	18.9	0.1 101.0%
  33.4	34.2	0.7   102.3%

  26.3期

  27.3期

  １Q ２Q ３Q ４Q

  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 of renovations at certain station buildings, station building tenant sales are expected to reach approximately 104% year on year

  【Results】

  【Forecast】

  （bil）

  （bil）

  Status of Key Businesses and Assumptions Behind Forecasts

  Station building tenant sales (year on year)

  120%

  • Station building tenant sales for FY26.3 exceeded the

    plan overall, supported by a recovery trend in duty-free sales. Occupancy rates at office buildings and rental apartments also remained generally solid.

  • For FY27.3, station building tenant sales are expected to rise 4% year on year. Costs are expected to increase due to maintenance costs for rental apartments and other factors.

  • Performance on office buildings and rental apartments is also expected to remain solid in FY27.3.

  103.4%

  Approx. 104%

  99.8%

  101.3%

  101.4%

  100%

  80%

  Q1

  Q2

  Q3

  Q4

  …

  FY26.3

  FY27.3

  25

• Next, I will explain the Real Estate and Hotels Segment.

• First, in the real estate leasing business, tenant sales at station buildings in the previous fiscal year finished in line with expectations, exceeding the previous year’s level. Although we anticipate some decrease in revenue due to renovations at certain properties in the current fiscal year, we continue to expect performance to exceed the previous year.

• Occupancy rates for office buildings and rental apartments have also remained solid, and we expect them to continue at similar levels this fiscal year.

• Please turn to the next slide.

  *Properties in the Hakata area

  In FY26.3, the Company actively implemented rent increases

  for residential units upon tenant turnover and lease renewals.

  • In multiple cases, agreements have been reached for rent increases exceeding 10%.

  ⚫

  • Of tenants whose leases expired or came up for renewals in FY25.3 or FY26.3*, more than 90% have agreed to rent increases.

  • In multiple cases, agreements have been reached for rent increases exceeding 10%.

  Rental apartmentsOffices

  • In FY27.3, we plan large-scale renovations at Kokura City and Kagoshima City, expecting an increase in the number of tenants

  FY26.3 and other benefits. We also expect temporary tenant closures associated with the renovations.

  Rents

  * Excluding Hakata Hankyu and facilities that newly opened or underwent major renovations during the period.

  © Nintendo

  Rents

  FY24.3 to FY26.3

  Annual average around +4%

  Tenant sales

  FY24.3 to FY26.3

  Annual average around +6%

  • The Company is also promoting initiatives to enhance the appeal of its facilities, including pop-up stores and collaborations with external IP at station buildings.

  • “Nintendo FUKUOKA,” opened at Amu Plaza Hakata in November 2025.

  • Tenant sales have grown steadily following the pandemic. In addition, supported by the strong competitiveness of facilities at major stations, rent levels—including fixed rents—have increased over the past two years.

  Rents and Tenant Sales at Amu Plaza*

  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, with the aim of expanding earnings and enhancing asset value over the medium to long term.
  Commercial facilities (station buildings)

  26

• I will explain our initiatives for internal growth in the real estate leasing business.

• Regarding our station buildings, historically we have increased rental income in line with growth in tenant sales, regardless of economic conditions. Therefore, we recognize tenant sales as a key factor from various perspectives, such as maintaining and strengthening our competitiveness against surrounding facilities and enhancing attractiveness for our customers.

• For office buildings and rental apartments as well, we are implementing rent revisions based on the current economic environment.

• Going forward, we will continue to drive internal growth, aiming to expand earnings over the medium to long term and enhance asset value.

• Please turn to the next slide.

  	Results FY25.3	Results FY26.3	YoY
  Operating revenue	32.8	39.6	6.7 120.6%
  Operating income	6.4	8.3	1.8 129.2%
  EBITDA	6.4	8.3	1.8   129.1%

  Results FY26.3	Forecasts FY27.3	YoY
  39.6	48.2	8.5 121.5%
  8.3	7.4	(0.9) 88.7%
  8.3	7.4	(0.9)   88.5%

  26.3期

  27.3期

  300

  200

  100

  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】

  （bil）

  （bil）

  Status of Key Businesses and Assumptions Behind Forecasts

  • In condominiums, in FY26.3 we handed over properties including MJR Hakata The Residence and MJR Kumamoto Gate Tower. In addition, regarding the sale of owned properties, we carried out sales of approximately ¥8.0 billion as initially planned.

  • In condominiums, in FY27.3 we plan to begin handovers of properties including MJR Urakami The Residence and MJR Kagoshima-Chuo Ekimae The Residence.

  Condominium sales results and forecasts

  (Operating revenue)

  (¥bil)

  30

  20

  • Regarding the sale of owned

  properties in FY27.3, we expect operating revenue of approximately

  ¥16.0 billion for the full year.

  MJR Kumamoto Gate Tower

  10

  Location:

  Structure:

  Kumamoto City

  30 floors above ground

  Delivery date: February 2026

  Units: 236

  Sales status: Sales in progress 0

  FY26.3 FY27.3

  27

  Q1

Q4

Q3

• Next, I will explain the real estate sales business.

• In the previous fiscal year, condominium sales progressed largely in line with expectations, including the handover of properties such as MJR Kumamoto Gate Tower.

• For the current fiscal year, we expect condominium sales to remain at roughly the same level as the previous year.

• Regarding the sale of owned properties, we sold one office building and three rental apartment buildings to third parties and private REITs by the second quarter of the previous fiscal year. For the current fiscal year, we expect approximately ¥16.0 billion in such sales.

• As property sales in the previous fiscal year were at a high profit margin, operating income in the current fiscal year is expected to decline.

• Please turn to the next slide.

  	Results FY25.3	Results FY26.3	YoY
  Operating revenue	32.2	34.0	1.8 105.7%
  Operating income	6.8	7.3	0.5 107.8%
  EBITDA	10.2	11.1	0.8  108.5%

  Results FY26.3	Forecasts FY27.3	YoY
  34.0	35.8	1.7 105.1%
  7.3	7.8	0.4 106.2%
  11.1	11.4	0.2  102.3%

  Q1 Q2 Q3 Q4 FY25.3	Q1 Q2 Q3 Q4 FY26.3

  83.0%			82.3%	Occupancy: Approx. 85% ADR: Approx. ¥26,000
  		28,321
  24,057	22,705		24,923
  Q1	Q2	Q3	Q4	…
  		FY26.3		FY27.3

  25.3期

  26.3期

  1Ｑ 2Ｑ 3Ｑ 4Ｑ

  1Q 2Q 3Q 4Q

  1Q 2Q 3Q 4Q

  26.3期

  27.3期

  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】 【Forecasts】

  （bil） （bil）

  Status of key businesses and assumptions behind

  performance forecasts

  • In Q4, performance exceeded expectations, with the occupancy rate of 82% and ADR at approximately ¥25,000.

  • The ratio of inbound guests was approximately 55%. We view the impact of the Chinese government’s travel advisory as

  Occupancy rates and ADR

  100%

  (Yen)

  30,000

  limited.

  Percentage of inbound guests

  (as a percentage of total room sales)

  60%

  25,000

  55%

  50%

  20,000

  50%

  15,000

  45%

  0%

  10,000

  • For FY27.3, we expect the occupancy rate to be around 85%

  and ADR to be approximately ¥26,000.

  28

• Next, I will explain the hotel business.

• In the previous fiscal year, hotels with a high proportion of inbound guests drove growth, with both ADR and occupancy rates exceeding expectations.

• In the current fiscal year, we expect occupancy rates to remain at approximately the same level as the previous year’s average, while ADR is expected to rise gradually to around ¥26,000.

• Please turn to the next slide.

  	Results FY25.3	Results FY26.3	YoY
  Operating revenue	67.0	71.8	4.7	107.1%
  Operating income	3.4	3.8	0.3	111.2%
  EBITDA	4.9	5.3	0.4	108.3%

  Results FY26.3	Forecasts FY27.3	YoY
  71.8	76.0	4.1 105.8%
  3.8	4.2	0.3 108.4%
  5.3	6.0	0.6   111.3%

  Q1	Q2	Q3	Q4	…
  	FY26.3			FY27.3

  26.3期

  27.3期

  1Ｑ 2Ｑ 3Ｑ 4Ｑ

  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）

  Status of key businesses and assumptions behindperformance forecasts

  Segment Store Sales (Year on Year)

  • Regarding store sales in FY26.3, performance remained

  strong, driven primarily by souvenir shops in the retail business and franchise stores in the restaurant business. Existing store sales for both categories exceeded the previous year's levels. In addition, new store openings progressed steadily in line with the plan.

  150%

  107.6% 105.1% 104.8% 104.6%

  Approx. 107%

  100%

  • In FY27.3, Existing store sales for both convenience stores

  and specialty stores are expected to exceed the previous

  year's levels. We also anticipate new store openings, 50%

  centered on franchise restaurants.

  29

• Next, I will explain the Retail and Food Service Segment.

• In the previous fiscal year, both retail and restaurant existing stores performed strongly, and new store openings also progressed steadily, resulting in increased revenue and profit.

• Existing stores performed well across both station locations and suburban locations, with average customer spending also exceeding the previous year.

• In the current fiscal year, we expect continued growth in existing stores, along with new store openings, particularly in franchised restaurant formats.

• Next, I will explain the progress of the Medium-Term Business Plan initiatives. Please turn to slide 33.

Construction Segment, Business Services Segment

【Results】

【Forecasts】

（bil）

（bil）

【Results】

【Forecasts】

（bil）

（bil）

30

Operating ¥564.0 billion Operating ¥81.0 billion

revenue

income

Around 10%

Bonds,

borrowings, etc.

Growth

investment

(Unit ¥ billion)

¥230 billion

Strategic investment

Shareholder return

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

32

Cash from the sale of real estate

¥50 billion

Operating cashflow

¥250 billion

Key Management

strategies

base

• 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 ground facilities.

[Conventional ground-based train control system] [Onboard-Centered Train Control System(After Introduction)]

Operation Control Center Operation Control Center

Remote control equipment

Proprietary wired network

Station equipment room

((( )

)) Public

nit telecommunications network

((( )

))

Station equipment room

Interlocking

system

Information

transmission via cables

Wireless interface equipment

Information transmission via wireless communication

((( )

))

((( )

))

• Shifts train control from a ground-based to an onboard-centric system by utilizing public telecommunications networks. This eliminates the need for ground facilities such as signaling equipment, thereby reducing maintenance and renewal costs.

• Suppresses introduction costs by utilizing the same onboard equipment as the GOA2.5 automated driving system.

FY29.3: Nagasaki Main Line (Kikitsu–Urakami, via Nagayo)

Introduction FY33.3: Nagasaki Main Line (Isahaya–Nagasaki, via Ichinuno)

Schedule

(Target) FY34.3: Omura Line (Huis Ten Bosch–Isahaya)

Thereafter, to be expanded sequentially to other lines

Wireless central control u

• First, as an initiative toward realizing sustainable mobility services, I will explain the introduction of a wireless train control system using public telecommunications networks.

• With the aim of “lightening infrastructure” in the railway business, we have decided to introduce this system in the Nagasaki area.

• This will eliminate the need for ground-based equipment and also ensure scalability toward future GOA 2.5 automated operation.

• We plan to expand this initiative sequentially to other conventional lines, and we believe it will contribute to future cost reductions.

• Please turn to the next slide.

  Initiatives to revitalize the

  local community and promote its appeal

  Promotion of commuting and

  schooling via the Shinkansen

  ・Increase transport capacity on the Hohi Main

  Line

  Revitalization of

  transportation hubs

  Barrier-free development

  Tokai Gakuen-

  mae

  ③

  Building sustainable

  transportation infrastructure

  ・Promote barrier-free access

  ①

  ・Improve efficiency in the maintenance and

  management of grade-separated road bridges

  ②

  ④

  ・Promote population growth through the use of

  the Shinkansen

  Improved access to

  central urban areas

  Minami-

  Kumamoto

  Measures to alleviate

  congestion

  ・Develop disaster-resilient communities

  ⑤

  Other matters agreed

  upon by both parties

  Specific initiatives and areas under consideration

  (1) At Minami-Kumamoto Station, which is located near central Kumamoto and serving as a key transportation node, consider development of a mobility hub in

  the station plaza and improved access from the south side of the station

  Joint press

  conference with (2) Renovate the station plaza at the Shinkansen exit of Kumamoto Station to

  Kumamoto City

  (March 31, 2026)

  improve convenience and alleviate congestion in surrounding areas

  1. Examine the implementation of comprehensive, multi-year maintenance and

     management for grade-separated road bridges within Kumamoto City

  2. Leverage the location of Kumamoto Station—positioned at the center of the Kyushu Shinkansen—to explore measures for increasing the residential population

  ④

  ・Strengthen intermodal connections and

  Short-term

  measures

  Medium- to

  long-term measures

  Key Strategy (2) City Building through Enhanced Collaborationamong 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 partnership agreement with Kumamoto City

  ③

  ③

  Areas of collaboration

  Main initiatives

  ②

  Bus passenger

  waiting areas

  Urban development

  ① centered on railway

  ・Enhance the role of Minami-Kumamoto Station

  as a key hub

  Collaboration on

  infrastructure maintenance

  Small bus bays

  Tatsuta-

  guchi

  stations

  Kami-

  Kumamoto

  ・Increase the value of areas along railway lines

  Increased transport capacity on

  the Hohi Main Line

  Strengthening connections with

  secondary transportation

  Enhancing the

  convenience of public transportation

  ③

  alleviating congestion at Shin-Suizenji Station

  ①

  ②

  ・Improve the station plaza at the Shinkansen

  exit of Kumamoto Station

  34

短期施 策

中長期 施策

• Next, I will explain initiatives related to city building through enhanced collaboration among businesses.

• The first example is our initiatives in the Kumamoto area.

• We have concluded a comprehensive partnership agreement with Kumamoto City, aiming to “create a community centered on rail-based transportation through co-creation.”

• Through this agreement, we will deepen cooperation across a wide range of areas, including urban development centered on stations and improving the convenience of public transportation.

• By providing safe and comfortable mobility and addressing regional challenges, we aim to generate both residential and exchange populations, contributing to the revitalization not only of the Kumamoto metropolitan area but of Kyushu as a whole.

• Please turn to the next slide.

  35

  Annual points earned

  Number of services used per year Combined registration status (registration of JQ CARD and SUGOCA)

  Railway spending (set as a requirement to reach the top two tiers)

  • In FY27.3, we aim to achieve profit contributions of

  approximately ¥0.5 billion, mainly in the railway and station building businesses.

  •

  •

  Prevention of declines in

  spending and service usage per customer (maintaining membership tiers)

  Acceleration of increases

  in spending and service usage per customer (promoting upgrades in membership tier)

  •

  •

  Expected effects and profit contribution

  • The introduction of a new membership tier program is expected to deliver the following effects:

  • Complimentary unlimited railway pass

  • Complimentary pair hotel stay invitation voucher

  • Points can be redeemed for station building premium coupons

  • Higher point accrual rate, etc.

  Building loyal customers

  We will expand the scope of the service to all "JR Kyushu Web Members" and launch the new membership tier service.

  • Offer attractive benefits based on membership rank and personalized service proposals. Drive customer loyalty through mutual customer referrals between business segments.

  • Create a Conglomerate Premium by increasing the spending per customer and the number of services used.

  ⚫

  Key Strategy (2) City Building through Enhanced Collaborationamong 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 create a conglomerate premium by strengthening inter-business collaboration centered on JR KYUPO.

  Tier evaluation criteria

• Second, I will explain our new membership tier program.

• Starting from JR Kyupo, this initiative aims to increase spending per customer and expand service usage by offering attractive benefits and tailored service proposals.

• Built on a base of approximately 4.7 million JR Kyushu web members, we aim to promote upgrades in membership tiers and maintain those tiers. In the first year of introduction, we are targeting a profit contribution of approximately ¥0.5 billion.

• Please turn to the next slide.

  Kyushu Shinkansen Planned site of Sanyo Shinkansen new station, JR conventional lines uka” Fukuoka City Subway Former Kyushu University Hakozaki Campus site Fukuoka Airport Tenjin Hakata Station 1km			Location	Hakozaki, Higashi-ku, Fukuoka City, Fukuoka Prefecture
  			Site area	Approx. 28.5 ha
  			Project operators	Sumitomo Corporation (lead company), Kyushu Railway Company, Saibu Gas, Shimizu Corporation, Daiwa House Industry, Tokyu Land Corporation, The Nishinippon Shimbun, Nishi-Nippon Railroad
  			Project schedule (planned)	FY2028: Initial town opening Thereafter, phased development
  			Primary uses	Innovation hub, offices, commercial facilities, international school, hospital, residential, etc.
  	City Map of Central Fukuoka

  “JR Kaiz

  Key Strategy (2) City Building through Enhanced Collaborationamong 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 Green Innovation

    Campus,” the project aims to create a hub where diverse people gather and generate innovation.

  • We are introducing the IOWN concept to integrate and link various smart services, with the aim of realizing a next-generation smart city model.

  • Planned mixed-use development includes for-sale and rental housing, retail facilities, and offices.

  • A new nearby station, “JR Kaizuka,” is scheduled to open in 2027.

  36

• Next, I will explain city-building initiatives through public redevelopment projects.

• Regarding the land use project for the site of the former Kyushu University Hakozaki Campus, we have now been formally appointed as the project operator.

• We are planning a mixed-use development including residential, office, and other facilities. By leveraging new communication technologies and smart services, we aim to create a comfortable and high-quality lifestyle and urban space, realizing a next-generation smart city model.

• In addition, we are planning the opening of a new station, “JR Kaizuka,” in 2027, representing a unique contribution from our Group.

• We will continue to advance this project as a member of the consortium toward the planned town opening in fiscal 2028.

• Please turn to the next slide.

  Name

  Battery Station Kyushu LLC

  Established

  April 2023

  Investors

  Kyushu Railway Company

  BS Holdings Co., Ltd.* Sumitomo Corporation Kyushu Co., Ltd.

  We will further expand installation scale and use cases

  for storage batteries while monitoring trends in renewable energy adoption and power supply-demand conditions in the Kyushu area.

  Another project with a rated output exceeding 10

  MW is planned in Nagasaki Prefecture.

  Battery Station Kawashiri Battery Station Tomiai

• The second project, “Battery Station Tomiai,” has been completed in the city of Kumamoto and has commenced operations.

  Battery Station Kyushu LLC

  * Wholly owned subsidiary of Sumitomo Corporation that owns and manages energy storage assets

  • In April 2023, we established a limited liability company jointly with the Sumitomo Corporation Group to operate a grid-based storage battery business.

  • We are installing storage battery systems by effectively utilizing land along railway lines and idle land across the railway network, contributing to the stabilization of power supply through energy storage.

  Locations	Kawashiri, Minami-ku, Kumamoto City	Tomiai-machi, Minami-ku, Kumamoto City
  Commenced operations	September 2024	April 2026
  Effective capacity	6.0 MWh (equivalent to daily electricity use of approx. 600 households)	6.3 MWh

  37

• Next, I will explain initiatives aimed at planting seeds for future growth.

• In the grid-scale storage battery business, we began operations at “Battery Station Kawajiri” in 2024, and launched our second project, “Battery Station Tomiai,” in April 2026.

• As a third project, we are currently planning development exceeding 10 megawatts in Nagasaki Prefecture, and will continue to expand this business going forward.

• Please turn to the next slide.

  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 capital, as well as risks and opportunities, in the railway business
  Overview of our information disclosure based on TNFD recommendations

  JR Kyushu Group Environmental Vision 2050

  ⚫

  Realization of a decarbonized society

  Assessed and analyzed impacts on and dependencies on natural capital

  across all segments using ENCORE, and selected the railway business as the primary focus based on business composition and operating revenue ratios

  • Applied the LEAP approach to the railway business value chain to analyze dependencies and impacts on natural capital and identify risks and opportunities

  • Established specific response measures (initiatives) based on identified risks and opportunities

  • Disclosed targets and KPIs aligned with the 2050 Vision

  Examples of initiatives addressing risks and opportunities

  [Risk of water and soil contamination at rolling stock

  depots, etc.]

  Strengthening appropriate storage and leak prevention measures for chemicals and fuels in accordance with applicable laws and regulations, including the PRTR Act

  [Creating positive cycles through environmentally

  contributing services]

  Introducing services that reduce environmental impact and contribute to the conservation of natural capital through railway use (e.g., Green EX, Park & Ride)

  [Utilization of tourism resources]

  [Environmental impact risks in procurement] Creating new tourism value by leveraging natural Formulation and implementation of Green resources and promoting tourism through co-creation with Procurement Guidelines local communities, municipalities, and businesses

  38

  Realization of

  a nature-friendly society

JR Kyushu Group Environmental Vision 2050

• Next, I will explain our disclosure based on TNFD recommendations, which is one of the non-financial KPIs in our Medium-Term Business Plan.

• After organizing our dependencies and impacts on natural capital in the railway business, we conducted an analysis of risks and opportunities and disclosed the results in November last year.

• Based on these findings, we will continue to advance initiatives to reduce environmental impact, while also working to create new opportunities that leverage natural capital.

• Please turn to the next slide.

  Materiality	Major strategies/initiatives, indicators/targets (FY28.3)			Progress (FY26.3)
  Our utmost mission: to	Medium-term safety plan CS-improvement strategy		0 cases 0 cases 75.0 points or higher	0 cases
  create safety and pursue customer				0 cases
  satisfaction				1H: 70.5pt; 2H: 72.0pt
  Leveraging our comprehensive capabilities centered around mobility services, aiming to co-create with local communities through city building	Business strategy		Rate of population decline lower than for Kyushu as a whole No quantitative target	— Comprehensive partnership agreements concluded with the cities of Munakata in September and Kumamoto in March
  			Continued YoY improvement	0.02 points increase
  Development of human resources, the source of value creation	Human resource strategy*2	satisfaction)	40 times or more per year 30% or more per year Percentage of women not below that of men Monitoring annual trends Continued YoY improvement 50% or more taking one month or more	96 times (including management philosophy briefing sessions, etc.) 33.5% Women：16.5% Men：15.4% 97.8% 3.32 72.6%
  Sound corporate management	IR (institutional investors) IR (individual investors) Promotion of mutual understanding Risk management		5 times or more per year 1 time or more per year 10 times or more per year 10 times or more per year Monitor status every six months	Sharing of investor feedback at Board of Directors meetings: 8 times 1 time 26 times
  				17 times
  				Reported implementation status to the Board of Directors
  Business development in harmony with the environment	Decarbonized society Circular economy Biodiversity		Confirm progress Set reduction targets Reduce water consumption*5 each fiscal year Disclosure based on TNFD recommendations	Approx. 11% reduction (FY25.3 actual) — Reduced from previous year (0.86 to 0.67) (FY25.3 actual) Disclosed information based on TNFD recommendations

  • Accidents in the railway business that result in fatalities among customers

  • Occupational accidents that result in fatalities among employees, etc.

  • Level of customer satisfaction*1

  • Population along train lines

  • Promote alliances outside the Group

  • Results of employee attitude survey (overall level of

  • Exchanges of opinions between executives and employees

  • Ratio of female employees among new employees

  • Percentage of management positions held by employees with at least 15 years of service*3

  • Retention of female employees

  • DE&I index*4

  • Ratio of male employees who take childcare leave

  • Continued holding of financial results briefings and the sharing and utilizing of investor opinions at board meetings

  • Holding of large meetings with outside directors

  • Briefings, tours, and other opportunities to interact with individual investors

  • Customer roundtable meetings

  • Reinforcement of group governance

  • Reduce greenhouse gas emissions by 60% by FY2036.3 (vs. FY2024.3)

  • Tackle Scope 3

  • Efficient use of water resources

  • Biodiversity initiatives

  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.

  *1 Comprehensive score of survey on hospitality, facilities, schedules, etc. *2 All figures represent non-consolidated indicators except “Results of employee attitude survey (overall level of satisfaction)” *3 Including those who reach 15 years of tenure if they do not retire *4 Our own index, taking an average score of items related to inclusion in the employee attitude survey *5 Sales-to-water usage ratio: Water usage per unit of revenue (thousand cubic meters per 100 million yen)

  39

• I will explain the non-financial KPIs set under the Medium-Term Business Plan.

• We assess that progress across each KPI corresponding to our material issues has been generally steady.

• Regarding the employee engagement survey, we revised the measurement method starting from the fiscal year ended March 31, 2026 to enable more agile surveys and more timely reflection in our initiatives. Our KPI target is to achieve year-on-year improvement in overall satisfaction, and the result showed an increase of 0.02 points.

• We have also steadily strengthened group governance, including the establishment of dedicated departments, and report progress to the Board of Directors as appropriate.

• We will continue to work toward achieving our targets within the period of the Medium-Term Business Plan.

• Please turn to slide 42.

Reduce the cost

• Initiatives involving IR activities of equity capital

Engage in disclosure and communication that addresses market

opinions Provide stable and long-term

shareholder returns

Equity spread

(＝ ROE – Cost of Equity)

Strengthen business resilience and build a

sustainable operating structure

Respond swiftly to management challenges (e.g., Future Railway Project, fare and charge revisions, local line discussions)

•

Improve ROE

•

•

Work to expand the equity spread

•

[Examples of initiatives]

Drive growth and improve efficiency in existing

businesses while creating new sources of revenue Execute the three key strategies outlined in the medium-term business plan: “Realize Sustainable Mobility Services,” “City Building through Enhanced Collaboration among Businesses,” and “Plant Seeds for the Future ”

Review the business portfolio in a timely and appropriate manner, including potential exits Overall reduction in cross-shareholdings

Utilize debt effectively and manage equity levels

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Continue shareholder returns to enhance shareholder value

Target a dividend payout ratio of 35% or more on a consolidated basis, while also conducting flexible share repurchases

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Aim to expand the equity spread by continuously focusing on improving return on capital

and reducing the cost of equity capital

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Reference: Initiatives to realize management that is conscious of capital

cost and stock price

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 value, we recognize the growing importance not only of improving ROE but also of lowering the cost of equity capital.