Kyushu Railway : Opening Remarks for JR KYUSHU IR DAY 2025（3,027 KB）

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‌Opening Remarks for JR KYUSHU IR DAY 2025 November 26, 2025 KYUSHU RAILWAY COMPANY Representative Director, President, Corporate Officer, and Chief Executive Officer Yoji Furumiya ‌Formulation of a New Management Philosophy New Management Philosophy Established in March 2025. "Our Way" is "Bringing the energy of Kyushu to the world." ‌Value Creation Story Value Creation Story shows how to realize "Our Way." Emphasizing processes that generate value for local communities and society and cultivate new strengths through businesses such as railway and real estate. ‌Materiality Based on our new management philosophy and other considerations, we revised the materialities We have organized our materialities into "businesses," which create economic and social value, and "foundations," which support these activities. (1) (2) (3) Today's Topics ‌Foundations (1) Development of Human Resources, the Source of Value Creation: JR Kyushu's Personnel Strategy Under the new management philosophy, this is revised as "JR Kyushu's human resource strategy to realize Our way." New While carrying forward the previous personnel strategy formulated in 2023, the revised strategy introduces new pillars aimed at fostering awareness of safety and customer-centricity, which are key elements of the mission outlined in the new corporate philosophy. Overview of the Human Resource Strategy The strategy is built on the belief that enabling employees to work with a sense of purpose and enthusiasm, and supporting their growth through opportunities such as work and training, contributes directly to the Company's future. It consists of two basic policies and five pillars. The Human Resource Strategy Committee, chaired by the president, deliberates on specific initiatives related to the personnel strategy. The content of these initiatives is evaluated through progress on HR-related KPIs and the results of employee attitude surveys. Specific KPI monitoring indicators Initiatives for human resource strategy employee awareness surveys Specific initiatives Report to the Board of Directors as appropriate Human Resource Strategy Committee ‌Foundations (1) Development of Human Resources, the Source of Value Creation｜ Implementation of Training for Future Executive Talent Newly established in FY2024 to develop personnel who will lead future management and to aim for the company's sustainable growth and enhanced value. Aims to cultivate "the next generation of executive leaders," directly aligned with the human resources strategy Program overview Participants establish a personal leadership "core" through discussions with internal and external executives, reflection, and dialogue Program includes collaboration with external experts and business schools, as well as fieldwork addressing real-world social issues Participation by individuals from diverse backgrounds contributes to the promotion of diversity and inclusion Ongoing development framework Participants propose transformation initiatives, and those who meet the required criteria may be assigned to management-track positions If requirements are met, participants may be transferred to management-track roles Ongoing monitoring by executives Establishment of a leadership "core" Sessions with executives Fieldwork on social issues Multiple discussions with executives Assignment Final assessments Initial consideration of transformation themes Training (approx. 7 months) Selection (by the Human Resource Strategy Committee) Application or nomination Even after completing the program, participants are continuously monitored by executives and the Human Resource Strategy Committee, ensuring that the program is more than a one-time training effort ‌Foundations (2) Sound Corporate Management ｜ Framework for Strengthening Governance by Leveraging the Expertise of Outside Directors Recognizing the importance of having the Board of Directors oversee and supervise Group governance, we have introduced a new framework that leverages the experience and perspectives of outside directors. Dialogue Sessions on Group Governance While respecting the independence of each Group company's management, the following initiatives are implemented: The Board of Directors supervises and discusses the progress of Group governance enhancement measures. A new dialogue session on Group governance, composed mainly of outside directors, has been established to incorporate external perspectives and further deepen group governance. Dialogue Sessions about Railway Safety After providing outside directors with Safety Creation Center training and other programs, we hold sessions on safety, centered on outside directors. Additional dialogue sessions are held on matters such as safety inspections and safety audit results, again mainly involving outside directors. ‌Foundations (2) Sound Corporate Management ｜ Framework for Strengthening Governance by Leveraging the Expertise of Outside Directors August 2025 Held dialogue sessions about railway safety After Safety Creation Center training, outside directors reviewed safety audit results and safety management initiatives, followed by a dialogue session October Safety Promotion Committee meetings Observed how safety-related committees operate November Dialogue Sessions related to safety at the JR Kyushu Group Building on the August discussions, expanded scope to Groupwide safety. Discussions held on safety initiatives not only in the railway business but also in related businesses December (planned) Dialogue Sessions on Group governance The JR Kyushu Group company-wide Safety Promotion Meeting dialogue session on railway safety Comments from outside directors at the August 5 dialogue sessions on railway safety [On safety in the Railway Business] The Safety Creation Center training effectively instills the concept of making safety part of corporate culture and should continue. When establishing rules, it is essential to keep them simple and easy to follow. When modifying rules, it is important to fully identify risks in advance and manage them thoroughly to maintain safe operations [On fostering a safety culture across the JR Kyushu Group] The mindset of treating safety as part of corporate culture must be promoted continuously throughout the entire Group. Safety culture must also be embedded in non-railway group companies-food safety, hotels, construction, etc.-as accidents can occur in these fields as well. Companies acquired via M&A often have differing views on safety, so JR Kyushu's approach must be fully communicated. ‌Foundations (2) Sound Corporate Management ｜ Review of the Whistleblower System Gathering Whistleblowers missing information JR Kyushu Group Corporate Ethics Hotline Certified social insurance and labor consultant Certified fraud examiners and other specialists (3) Report (2) Reception and confirmation 5W1H (who, what, when, where, why, how) Main complaint/requ est Scope of information sharing Supervising departments Group company corporate ethics officers (9) Response, additional investigation requests, etc. (8) Progress reports, corrective action reports, etc. (6) Various investigations and investigation reports (7) Various consultations JR Kyushu Legal Affairs Division, Administration Department (1) Consultation (4) Opinion/assessment preparation Investigation policy Investigation method, etc. (5) Report + Opinion (in principle, by the next business day) Whistleblowers do not need to consult the JR Kyushu Group directly, reducing concerns about disadvantageous treatment. By ensuring psychological safety for employees, the number of whistleblowing reports has increased. The whistleblowing channel was transferred in February 2025 Aggregation period: April 2024 - October 2025 To create a whistleblower system that employees can consult more easily and trust, we have located the internal whistleblowing desk, the JR Kyushu Group Corporate Ethics Hotline, at an external specialist firm. Before transfer of whistleblowing channel After transfer of whistleblowing channel Consultations (per month) 7.2 17.5 ‌Foundations (3) Business Development in Harmony with the Environment ｜ Environmental Vision Formulated an environmental vision aimed at solving environmental challenges by integratedly addressing resource circulation and biodiversity, in addition to climate change. We set clearly defined targets and constructed a concrete roadmap outlining the steps toward their achievement. ‌Foundations (3) Business Development in Harmony with the Environment: Specific Actions Promotion of existing initiatives and multifaceted advancement through demonstration tests of future technologies to reduce GHG emissions Balancing environmental impact reduction with economic efficiency by improving recycling rates and reducing processing costs Perovskite mock-up Disclosures about biodiversity and promotion of ecological restoration through industry-government-academia collaboration ペロブスカイトの モックアップ Climate Change: Realization of a Decarbonized Society Achieve ZEB certification through renovations of existing buildings Procurement of renewable energy via off-site PPA Demonstration experiment of perovskite solar cells using Hakata Station platforms 佐土原駅で の実証 Demonstration at Sadowara Station Solar power generation utilizing decommissioned rails Resource Circulation: Realization of a Circular Economy Horizontal recycling of PET bottles (bottle-to-bottle recycling) Exploration of solar panel recycling business 秋月の 風景 Landscape of Akizuki Biodiversity: Realization of a Nature-Friendly Society Disclosures based on recommendations "Satoyama of Hope" co-creation project with Kyushu University, Akizuki, and JR Kyushu ‌Today's Contents Presentations from the heads of each business headquarter on the "Future Railway Project" and "Real Estate Strategy" Set up dialogue sessions with outside directors who have expertise in mobility services and city building Future Railway Project Real Estate Strategy Dialogue sessions with Outside Directors ‌Forward-Looking Statements These materials contain forward-looking statements concerning business forecasts, targets, etc. of the JR Kyushu Group. These statements are judgments made by the Company based on information, projections, and assumptions available at the time of the materials' creation. Accordingly, please be advised that actual operating results could greatly differ from the contents of the materials due to the economic situation inside and outside Japan and the economic situation in Kyushu; real estate market conditions; the progress of respective projects; changes in laws and regulations; and a wide range of other risk factors. IR materials can be viewed on our corporate website: https://www.jrkyushu.co.jp/company/ir_eng/library/earnings/

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