Summary of Financial Results（339 KB）

Company name: Kyushu Railway Company Stock exchange listings: Tokyo and Fukuoka Securities code: 9142

URL: https://www.jrkyushu.co.jp/

Representative: Yoji Furumiya, President and CEO

Contact: Rie Kanegae, General Manager, Public Relations Department Tel.: +81-92-474-3677

Scheduled date of Ordinary General Meeting of Shareholders: June 23, 2026 Scheduled date of dividend payment commencement: June 24, 2026 Scheduled date of release of annual securities report: June 19, 2026 Preparation of supplementary explanations for financial results: Yes

May 11, 2026

Holding of a briefing on financial results: Yes (for institutional investors and securities analysts)

(Amounts less than one million yen, except for per share amounts, are omitted.)

1. Consolidated Financial Results for the Year Ended March 31, 2026 (From April 1, 2025 to March 31, 2026)
   1. Consolidated operating results (Percentages show year-on-year changes.)

      	Operating revenues		Operating income		Ordinary income		Net income attributable to owners of the parent
      Year ended March 31, 2026 Year ended March 31, 2025	Millions of yen 500,393 454,393	% 10.1 8.1	Millions of yen 74,040 58,976	% 25.5 25.2	Millions of yen 74,032 59,571	% 24.3 21.7	Millions of yen 45,468 43,657	% 4.1 13.6

      (Note) Comprehensive income: As of March 31, 2026: ¥ 63,355 million [60.5%]

      As of March 31, 2025: ¥39,479 million [(21.1%)]

      	Net income per share - basic	Net income per share - diluted	Return on equity	Ordinary income to total assets	Operating income to operating revenues
      Year ended March 31, 2026 Year ended March 31, 2025	Yen 295.39 278.96	Yen - -	% 9.6 9.7	% 6.3 5.3	% 14.8 13.0

      (Reference) Equity in net income (losses) of affiliated companies: As of March 31, 2026: ¥ 231 million

      As of March 31, 2025: ¥ 56 million

   2. Consolidated financial position

      	Total assets	Net assets	Equity ratio	Net assets per share
      As of March 31, 2026	Millions of yen 1,222,430	Millions of yen 494,870 458,620	% 40.4	Yen 3,210.79
      As of March 31, 2025	1,140,509		40.0	2,922.77

      (Reference) Shareholders' equity: As of March 31, 2026: ¥493,928 million As of March 31, 2025: ¥456,507 million

   3. Consolidated cash flows

      	Net cash provided by operating activities	Net cash used in investing activities	Net cash provided by (used in) financing activities	Cash and cash equivalents, end of year
      Year ended March 31, 2026 Year ended March 31, 2025	Millions of yen 72,853 96,669	Millions of yen (87,130) (107,410)	Millions of yen 12,509 (6,931)	Millions of yen 44,257 45,799

2. Dividends

   	Annual dividends					Total dividends (Fiscal)	Payout ratio (Consolida ted)	Dividends to net assets ratio (Consolida ted)
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   Year ended March 31, 2025 Year ended March 31, 2026	Yen - -	Yen 46.50 57.50	Yen - -	Yen 51.50 57.50	Yen 98.00 115.00	Millions of yen 15,415 17,784	％ 35.1 38.9	％ 3.4 3.8
   Year ending March 31, 2027 (Forecast)	-	60.50	-	60.50	121.00		36.1

3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2027 (April 1, 2026 to March 31, 2027)

   (Percentages show year-on-year changes.)

   	Operating revenues		Operating income		Ordinary income		Net income attributable to owners of the parent		Net income per share - basic
   Full year	Millions of yen 520,500	% 4.0	Millions of yen 75,000	% 1.3	Millions of yen 70,900	% (4.2)	Millions of yen 51,600	% 13.5	Yen 335.43

   Notes

   1. Significant changes in the scope of consolidation during the year ended March 31, 2026: Yes

      Newly added: Three companies, including Meijikensetsu Co., Ltd.; excluded: One company, JR Kyushu Linen Co., Ltd.

      Note: For details, see "Changes in the Scope of Consolidation or Application of the Equity Method" on page

      15 of the Attachments

   2. Changes in accounting policies, changes in accounting estimates and restatement of revisions

      1. Changes in accounting policies with revision of accounting standards: No

      2. Changes in accounting policies other than the above: No

      3. Changes in accounting estimates: No

      4. Restatement of revisions: No

         As of March 31, 2026	154,649,000 shares	As of March 31, 2025	157,301,600 shares
         As of March 31, 2026	815,134 shares	As of March 31, 2025	1,111,485 shares
         As of March 31, 2026	153,929,077 shares	As of March 31, 2025	156,499,059 shares

   3. Number of shares issued and outstanding (common stock) i Number of shares issued and

outstanding at end of period (including treasury stock)

1. Number of shares of treasury stock at end of period

2. Average number of shares during the period

Note: The number of shares of treasury stock at the end of the period includes the number of shares of the Company's stock held by the Board Benefit Trust (BBT) (FY2026/3, 172,800 shares; FY2025/3, 176,600 shares) and shares of the Company's stock held by the Stock-based Benefit Trust (Employee Shareholders Association Purchase-type) (FY2026/3, 642,000 shares; FY2025/3, 934,600 shares). In addition, the number of shares of the Company's stock held by the Board Benefit Trust (BBT) (FY2026/3, 174,067 shares; FY2025/3, 176,600 shares) and shares of the Company's stock held by the Stock-based Benefit Trust (Employee Shareholders Association Purchase-type) (FY2026/3, 781,725 shares; FY2025/3, 625,717 shares) are included in the treasury stock that is subtracted in the calculation of the average number of shares during the period.

(Reference)

1. Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (April 1, 2025-March 31, 2026)

   1. Non-consolidated operating results (Percentages show year-on-year changes.)

      	Operating revenues		Operating income		Ordinary income		Net income
      Year ended March 31, 2026 Year ended March 31, 2025	Millions of yen 272,939 240,849	％ 13.3 2.8	Millions of yen 49,405 36,061	％ 37.0 20.6	Millions of yen 50,249 40,663	％ 23.6 9.4	Millions of yen 28,760 31,075	％ (7.4) (5.6)

      	Net income per share - basic	Net income per share - diluted
      Year ended March 31, 2026	Yen 186.84	Yen -
      Year ended March 31, 2025	198.57	-

   2. Non-consolidated financial position

   	Total assets	Net assets	Equity ratio	Net assets per share
   As of March 31, 2026 As of March 31, 2025	Millions of yen 999,754 941,589	Millions of yen 376,106 364,695	％ 37.6 38.7	Yen 2,444.89 2,334.95

   (Reference) Shareholders' equity: As of March 31, 2026: ¥376,106 million As of March 31, 2025: ¥364,695 million

2. Non-Consolidated Forecasts for the Fiscal Year Ending March 31, 2027 (April 1, 2026-March 31, 2027)

(Percentages show year-on-year changes.)

* This summary of financial results is not subject to audits by certified public accountants or accounting auditors.

Performance forecasts and other forward-looking statements appearing in this document are based on currently available information and specific assumptions deemed rational, and are not assurances that the Company will achieve these forecasts. Actual performance can vary greatly depending on various factors such as fluctuations in interest rates, fluctuations in share prices, changes in exchange rates, fluctuations in the value of assets, changes in the economic and financial environment, changes in the conditions of competition, occurrences of large-scale and other disasters, and changes in regulations.

Supplementary materials have been attached to this summary of financial results.

A financial results briefing for institutional investors and securities analysts is scheduled to be held on May 12, 2026 (Tuesday). The presentation materials used for this briefing will be posted on TDnet and the Company's website.

1. Qualitative Information on Consolidated Financial Performance 2

   1. Qualitative Information on Consolidated Operating Results 2

   2. Qualitative Information on Consolidated Financial Position 8

   3. Dividend Policies, Dividends in the Fiscal Year Ended March 31, 2026, and Forecast

      for Dividends in the Fiscal Year Ending March 31, 2027 8

2. Basic Policies Regarding the Selection of Accounting Standards 9

3. Consolidated Financial Statements and Major Notes 10

   1. Consolidated Balance Sheets 10

   2. Consolidated Statements of Income and Comprehensive Income 12

   3. Consolidated Statements of Changes in Net Assets 14

   4. Consolidated Statements of Cash Flows 16

   5. Notes to Consolidated Financial Statements 18

      (Notes on Going Concern Assumption) 18

      (Changes in the Scope of Consolidation or Application of the Equity Method) 18

      (Additional Information) 18

      (Segment Information) 19

      (Per Share Information) 21

      (Significant Subsequent Events) 21

4. Non-Consolidated Financial Statements and Major Notes 22

   1. Non-Consolidated Balance Sheets 22

   2. Non-Consolidated Statements of Income 24

   3. Non-Consolidated Statements of Changes in Net Assets 26

1. Qualitative Information on Consolidated Financial Performance

   Forward-looking statements in this document are based on assessments as of the end of the fiscal year ended March 31, 2026.

   1. Qualitative Information on Consolidated Operating Results

      [1] Overview of the fiscal year ended March 31, 2026

      During the consolidated fiscal year under review, the Japanese economy continued a modest recovery, with personal consumption showing signs of improvement and the employment and income environment improving.

      However, due to factors such as rising prices, fluctuations in financial and capital markets, and increasing geopolitical risks, we believe it remains necessary to closely monitor the future economic outlook.

      Against this backdrop, the JR Kyushu Group advanced under the JR Kyushu Group Medium-Term Business Plan 2025-2027, which was formulated together with the renewal of our corporate philosophy in March 2025. Under this plan, we promoted three key strategies: "realizing sustainable mobility services," "city building through enhanced collaboration among businesses," and "planting seeds for the future." In addition, we focused on four initiatives to strengthen the management base that supports the execution of these strategies: "human capital expansion in light of changes in the labor market," "an integrated approach to environmental issues," "expansion and pursuit of DX utilization," and "Stronger Group governance and establishment of a governance structure that enables appropriate risk-taking."

      As a result, operating revenue increased 10.1% year on year to ¥500,393 million, operating income grew 25.5% to ¥74,040 million, EBITDA rose 17.4% to ¥112,684 million, ordinary income expanded 24.3% to ¥74,032 million, and net income attributable to owners of the parent increased 4.1% to ¥45,468 million.

      (Note) EBITDA for the consolidated period under review is the numerical value of operating income plus the cost of depreciation (excluding the cost of depreciation related to lease assets held for the purpose of subleasing).

      The Group's business performance by segment is as follows.

      (Millions of Yen)

      	Operating revenue			Operating income			EBITDA (Note 2)
      	FY2026/3 (April 1, 2025- March 31, 2026)	YoY		FY2026/3 (April 1, 2025- March 31, 2026)	YoY		FY2026/3 (April 1, 2025- March 31, 2026)	YoY
      Transportation	190,668	21,330	12.6%	23,976	11,789	96.7%	38,670	13,277	52.3%
      Real Estate and Hotels	156,694	13,281	9.3%	34,403	2,919	9.3%	52,937	3,328	6.7%
      Real estate lease	82,951	4,677	6.0%	18,714	499	2.7%	33,436	570	1.7%
      Real estate sale	39,673	6,774	20.6%	8,346	1,886	29.2%	8,358	1,883	29.1%
      Hotel	34,069	1,830	5.7%	7,342	533	7.8%	11,141	874	8.5%
      Retail and Restaurant	71,810	4,737	7.1%	3,873	390	11.2%	5,391	413	8.3%
      Construction	111,087	10,467	10.4%	7,740	380	5.2%	9,096	449	5.2%
      Business Services	84,166	1,566	1.9%	5,037	( 222)	(4.2%)	7,999	(525)	(6.2%)
      Total	614,427	51,384	9.1%	75,031	15,257	25.5%	114,094	16,942	17.4%
      Adjustment (Note 1)	(114,034)	(5,385)	-	(991)	(194)	-	(1,409)	(213)	-
      Amount on the consolidated financial statements	500,393	45,999	10.1%	74,040	15,063	25.5%	112,684	16,729	17.4%

      (Notes) 1. Adjustments reflect the elimination of intersegment transactions.

2. Consolidated EBITDA = operating income + depreciation (after elimination of intersegment transactions, excluding the cost of depreciation related to lease assets held for the purpose of subleasing),

segment EBITDA = segment operating income + segment depreciation (before elimination of intersegment transactions, excluding the cost of depreciation related to lease assets held for the purpose of subleasing)

1. Transportation Group

   In the railway business, we implemented revisions to fares and charges for the first time in 29 years, excluding revisions attributable to the consumption tax increase. In addition, we implemented various initiatives in the aim of realizing sustainable mobility services.

   Placing the highest priority on safety, which is the foundation of the JR Kyushu Group, we promoted the "Future Railway Project," which seeks to enhance the sustainability and profitability of railway operations through the use of DX and new technologies. Specifically, we worked on initiatives to further improve safety, sustainability, and profitability, including expanding target areas for automated operation through the full-scale implementation of GoA2.0 on certain sections of the Kagoshima Main Line and the Nippo Main Line in December 2025, as well as advancing the development of a wireless train control system using public telecommunications networks.

   On the sales and marketing front, we continued to promote initiatives to improve CX (customer experience) from the customer's perspective and link these efforts to top-line growth. These included ongoing efforts to enhance the comfort of the user environment, such as the "HEARTFUL JR KYUSHU" project, a station restroom renovation initiative under the concept of "Restrooms You'll Fall in Love With." In addition, we worked to improve convenience

   through the further expansion of ticketless services using QR codes* and the provision of other digital services, while also addressing congestion at ticket counters and reducing equipment maintenance costs. We also focused on creating new travel demand through initiatives such as the collaboration project with a popular character, "Super Mario × JR Kyushu - Let's GO KYUSHU!" Furthermore, through the promotion of "Kyushu MaaS" utilizing the MaaS app "my route," we expanded the implementation of digital tickets and strengthened multimodal integration across various regions in Kyushu. By establishing these initiatives as a framework that integrates tourism, events, and regional transportation, we advanced community-based city development centered on mobility services.

   As a result, operating revenue increased 12.6% year on year to ¥190,668 million, operating income rose 96.7% to ¥23,976 million, and EBITDA grew 52.3% to ¥38,670 million.

   * QR Code is a registered trademark of DENSO WAVE INCORPORATED.

2. Real Estate and Hotels Group

   In the real estate leasing business, station building tenant sales remained strong, centered on JR Hakata City Co., Ltd. We also made growth investments by acquiring an office building and a logistics facility.

   In the real estate sales business, we recorded revenue from the sale of an office building and rental condominiums, as well as from the delivery of units in properties such as "MJR Kumamoto Gate Tower" and "MJR Kagoshima-Chuo Ekimae The Garden" Additionally, we undertook sales activities for newly launched condominiums, including "MJR Akasaka Gate Tower," "MJR Urakami THE ONCE," and "Livio Tower Shinagawa."

   In the hotel business, amid firm inbound demand, the occupancy remained stable, and we worked to ensure efficient business operations.

   As a result, operating revenue increased 9.3% year on year to ¥156,694 million, operating income rose 9.3% to ¥34,403 million, and EBITDA grew 6.7% to ¥52,937 million.

3. Retail and Restaurant Group

   In the retail business, we focused on strengthening competitiveness through the opening of new convenience store locations and the renovation of existing stores. In the restaurant business, we sought to expand revenue by opening new franchise outlets and aimed to drive customer traffic by refreshing menus at our existing restaurants.

   In addition, JR Kyushu Food Service Inc. entered into a franchise agreement with Soup Stock Tokyo Co., Ltd., and began operating four stores in Fukuoka Prefecture from March of this year.

   As a result, operating revenue expanded 7.1% year on year to ¥71,810 million, operating income rose 11.2% to ¥3,873 million, and EBITDA increased 8.3% to ¥5,391 million.

4. Construction Group

   In the construction business, we worked to ensure safe and stable railway transportation through civil engineering, track, architectural work, maintenance operations, and rolling stock and machinery installations related to railway infrastructure. We focused on securing new orders, including public-sector projects such as those related to the Hokkaido Shinkansen, as well as private-sector construction such as condominium developments.

   In addition, through various initiatives aimed at improving productivity, we secured the necessary construction capacity. Together with continued investment in human resource

   development, this enabled us to maintain a stable business operating structure.

   Furthermore, in order to strengthen the BtoB and BtoG businesses and drive further growth for the entire Group, last April we converted Meijikensetsu Co., Ltd. and Showatecs Co., Ltd. into consolidated subsidiaries.

   As a result, operating revenue increased 10.4% year on year to ¥111,087 million, operating income rose 5.2% to ¥7,740 million, and EBITDA expanded 5.2% to ¥9,096 million.

5. Business Services Group

In the construction machinery sales and rental business, we worked to secure earnings through aggressive sales activities. In addition, we worked to win new orders and reduce costs, particularly in the advertising business.

In addition, we carried out an organizational restructuring through the merger of JR Kyushu Service Support Co., Ltd. and JR Kyushu Linen Co., Ltd. Through this integration, we strengthened our management base and expanded orders by delivering further service improvements through the integrated provision of cleaning and linen supply services.

As a result, operating revenue increased 1.9% year on year to ¥84,166 million, operating income fell 4.2% to ¥5,037 million, and EBITDA declined 6.2% to ¥7,999 million.

(Note) Segment EBITDA is the numerical value of operating income for each segment plus the cost of depreciation (before elimination of intersegment transactions, excluding the cost of depreciation related to lease assets held for the purpose of subleasing).

In the fiscal year ending March 31, 2027, personal consumption is expected to continue recovering, supported by improvements in the employment and income environment. However, downside risks to the domestic economy remain, including a potential weakening in consumer sentiment due to continued inflation, fluctuations in financial and capital markets, and rising geopolitical risks.

Against this backdrop, the Group enters the second year of the JR Kyushu Group Medium-Term Business Plan 2025-2027, a critical phase in its execution. Based on the business performance in the fiscal year ended March 31, 2026, we have revised upward the numerical targets for the final year of the plan, the fiscal year ending March 31, 2028. However, there is no change to our original policy of positioning the plan period as a phase for achieving sustainable growth from a long-term perspective. As a corporate group responsible for transportation infrastructure, we will continue to steadily advance initiatives centered on three key strategies: "realizing sustainable mobility services," "city building through enhanced collaboration among businesses" centered on stations, and "planting seeds for the future," aimed at creating new businesses and strengthening resilience.

Performance forecast for the fiscal year ending March 31, 2027 Operating revenue: ¥520.5 billion (up 4.0% year on year) Operating income: ¥75.0 billion (up 1.3%)

Ordinary income: ¥70.9 billion (down 4.2%)

Net income attributable to owners of the parent: ¥51.6 billion (up 13.5%) EBITDA: ¥116.2 billion (up 3.1%)

Also, forecasts by segment for operating revenues, operating income, and EBITDA are as follows.

(Millions of Yen)

Moreover, the performance outlook was prepared based on information available as of the release date of these materials, and there are cases where actual performance differs from outlook figures due to various factors that arise going forward. With regard to the impact of heightened tensions in the Middle East, we recognize increasing risks such as rising crude oil prices and instability in energy supply. However, as it is difficult to reasonably estimate the impact on performance at this time, these factors have not been incorporated into the current performance forecast.

1. Assets, Liabilities, and Net Assets

   Total assets at the end of the consolidated fiscal year amounted to ¥1,222,430 million, mainly due to an increase in property, plant and equipment.

   Total liabilities amounted to ¥727,560 million, primarily due to an increase in corporate bonds.

   Net assets totaled ¥494,870 million, mainly reflecting an increase in retained earnings.

2. Cash Flows

(Cash flows from operating activities)

Net cash provided by operating activities totaled ¥72,853 million, down ¥23,816 million year on year, due to higher spending on inventory.

(Cash flows from investing activities)

Net cash used in investing activities was ¥87,130 million, down ¥20,279 year on year, due to a decrease in purchases of fixed assets and other factors.

(Cash flows from financing activities)

Net cash provided by financing activities was ¥12,509 million (compared with ¥6,931 million used in these activities in the previous fiscal year), due to an increase in proceeds from long-term loans payable.

As a result of the above, cash and cash equivalents at end of year decreased ¥1,541 million year on year, to ¥44,257 million.

The Company views shareholder returns as one of its important management priorities and places importance on providing stable returns over the long term. Over the period to the fiscal year ending March 31, 2028, the Company will implement dividends with a consolidated dividend payout ratio of 35% or higher, while also carrying out share repurchases flexibly, depending on the situation. In accordance with the above policy, the Company plans a year-end dividend of ¥57.50 per share for the fiscal year under review, based on a comprehensive assessment of business performance and other factors. Together with the interim dividend of

¥57.50 per share, this results in an annual dividend of ¥115 per share.

The Company also forecasts an annual dividend of ¥121 per share (an interim dividend of

¥60.50 per share and a year-end dividend of ¥60.50 per share) for the fiscal year ending March 31, 2027.

The Company's Articles of Incorporation stipulate that an interim dividend may be paid every year with September 30 as the record date, based on a resolution of the Board of Directors. The decision-making authority for dividends from surplus earnings is the Board of Directors for interim dividends and the General Meeting of Shareholders for year-end dividends.

Under its corporate philosophy, the Company will allocate retained earnings to maintain and upgrade railway and other facilities and to make growth investments, in order to promote attractive community development through co-creation with local communities by leveraging its comprehensive strengths, centered on mobility services.

1. Basic Policies Regarding the Selection of Accounting Standards

   The Company employs Japanese generally accepted accounting principles (JGAAP). The Company will examine the possibility of adopting International Financial Reporting Standards (IFRS) in the future based on trends in accounting standards in Japan.

2. Consolidated Financial Statements and Major Notes
   1. Consolidated Balance Sheets

      FY2025/3

      (As of March 31, 2025)

      (Millions of Yen)

      FY2026/3

      (As of March 31, 2026)

      ASSETS

      Current assets

      Cash and time deposits 35,057 36,775

FY2025/3

(As of March 31, 2025)

(Millions of Yen)

FY2026/3

(As of March 31, 2026)

LIABILITIES

Current liabilities

1. 1. Consolidated Statements of Income and Comprehensive Income

      Consolidated Income Statements

      FY2025/3

      (Millions of Yen) FY2026/3

      (April 1, 2024 - March 31, 2025)

      (April 1, 2025 - March 31,

      2026)

      OPERATING REVENUES	454,393	500,393
      OPERATING EXPENSES
      Transportation, other services and cost of sales	265,013	287,313
      Selling, general and administrative expenses	130,403	139,038
      Total operating expenses	395,417	426,352
      OPERATING INCOME	58,976	74,040
      NON-OPERATING INCOME
      Interest income	129	240
      Dividend income	951	1,166
      Gain on assets held in trust	1,603	1,488
      Gain on investment securities	848	881
      Other	817	1,131
      Total non-operating income	4,350	4,909
      NON-OPERATING EXPENSES
      Interest expense	3,196	4,407
      Other	559	510
      Total non-operating expenses	3,755	4,917
      ORDINARY INCOME	59,571	74,032
      EXTRAORDINARY GAINS
      Construction grants received	9,438	4,645
      Gain on sale of noncurrent assets	454	2,331
      Other	1,101	820
      Total extraordinary gains	10,994	7,797
      EXTRAORDINARY LOSSES
      Loss on reduction of noncurrent assets	8,863	4,595
      Project withdrawal losses	-	9,471
      Impairment loss	4,545	3,322
      Provision for loss on disaster	-	1,199
      Disaster-damage losses	-	768
      Other	926	2,830
      Total extraordinary losses	14,336	22,188
      INCOME BEFORE INCOME TAXES	56,229	59,641
      INCOME TAXES -Current	9,119	14,509
      INCOME TAXES -Deferred	3,414	(378)
      TOTAL INCOME TAXES	12,533	14,131
      NET INCOME	43,696	45,510
      NET INCOME ATTRIBUTABLE TO NON- 38 41 CONTROLLING INTERESTS

      NET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT

      43,657 45,468

      Consolidated Comprehensive Income Statements

      (Millions of Yen)

      	FY2025/3 (April 1, 2024 - March 31, 2025)	FY2026/3 (April 1, 2025 - March 31, 2026)
      NET INCOME	43,696	45,510
      OTHER COMPREHENSIVE INCOME
      Unrealized gain on available-for-sale securities	(3,622)	12,372
      Foreign currency translation adjustments	(81)	(56)
      Remeasurements of defined retirement benefit plans	(512)	5,524
      Share of other comprehensive income of affiliates accounted for by the equity method	(0)	3
      Total other comprehensive income	(4,216)	17,844
      COMPREHENSIVE INCOME	39,479	63,355
      TOTAL COMPREHENSIVE INCOME
      ATTRIBUTABLE TO:
      Owners of the parent	39,447	63,319
      Non-controlling interests	32	36

   2. Consolidated Statements of Changes in Net Assets

      For the fiscal year ended March 31, 2025

      (Millions of Yen)

      	Shareholders' equity
      	Common stock	Capital surplus	Retained earnings	Treasury stock	Total Shareholders' equity
      Balance at beginning of current year	16,000	225,797	188,295	(568)	429,524
      Cumulative effects of changes in accounting policies			21		21
      Restated balance	16,000	225,797	188,317	(568)	429,546
      Changes of items during the year
      Dividends of surplus			(21,943)		(21,943)
      Net income attributable to owners of the parent			43,657		43,657
      Purchase of treasury stocks				(4,367)	(4,367)
      Disposal of treasury stocks				624	624
      Changes in the scope of consolidation		265	990		1,256
      Net changes of items other than shareholders' equity
      Total changes of items during the year		265	22,704	(3,742)	19,227
      Balance at end of current year	16,000	226,063	211,021	（4,311）	448,773

      	Accumulated other comprehensive income				Non-controlling interests	Total net assets
      	Valuation difference on available-for-sale securities	Foreign currency translation adjustments	Remeasuremen ts of defined benefit plans	Total accumulated other comprehensive income
      Balance at beginning of current year	11,651	(97)	348	11,903	859	442,287
      Cumulative effects of changes in accounting policies	(21)			(21)		-
      Restated balance	11,630	(97)	348	11,881	859	442,287
      Changes of items during the year
      Dividends of surplus						(21,943)
      Net income attributable to owners of the parent						43,657
      Purchase of treasury stocks						(4,367)
      Disposal of treasury stocks						624
      Changes in the scope of consolidation						1,256
      Net changes of items other than shareholders' equity	(3,554)	(81)	(512)	(4,147)	1,253	(2,894)
      Total changes of items during the year	(3,554)	(81)	(512)	(4,147)	1,253	16,333
      Balance at end of current year	8,075	(178)	(163)	7,733	2,113	458,620

      For the fiscal year ended March 31, 2026

      (Millions of Yen)

      	Shareholders' equity
      	Common stock	Capital surplus	Retained earnings	Treasury stock	Total Shareholders' equity
      Balance at beginning of current year	16,000	226,063	211,021	(4,311)	448,773
      Changes of items during the year
      Dividends of surplus			(16,993)		(16,993)
      Net income attributable to owners of the parent			45,468		45,468
      Purchase of treasury stocks				(10,000)	(10,000)
      Disposal of treasury stocks				1,183	1,183
      Cancellation of treasury stocks		(9,999)		9,999	-
      Changes in the scope of consolidation		(94)	7		(87)
      Net changes of items other than shareholders' equity
      Total changes of items during the year	-	(10,094)	28,482	1,183	19,571
      Balance at end of current year	16,000	215,968	239,504	(3,127)	468,344

      	Accumulated other comprehensive income				Non-controlling interests	Total net assets
      	Valuation difference on available-for-sale securities	Foreign currency translation adjustments	Remeasureme nts of defined benefit plans	Total accumulated other comprehensiv e income
      Balance at beginning of current year	8,075	(178)	(163)	7,733	2,113	458,620
      Changes of items during the year
      Dividends of surplus						(16,993)
      Net income attributable to owners of the parent						45,468
      Purchase of treasury stocks						(10,000)
      Disposal of treasury stocks						1,183
      Cancellation of treasury stocks						-
      Changes in the scope of consolidation						(87)
      Net changes of items other than shareholders' equity	12,381	(56)	5,524	17,850	(1,172)	16,678
      Total changes of items during the year	12,381	(56)	5,524	17,850	(1,172)	36,249
      Balance at end of current year	20,457	(234)	5,361	25,583	941	494,870

   3. Consolidated Statements of Cash Flows

      (Millions of Yen)

      	FY2025/3 (April 1, 2024 - March 31, 2025)	FY2026/3 (April 1, 2025 - March 31, 2026)
      CASH FLOWS FROM OPERATING ACTIVITIES
      Income before income taxes	56,229	59,641
      Depreciation costs	38,410	40,232
      Losses from provision for cost reduction of fixed assets	8,863	4,595
      Project withdrawal losses	-	9,471
      Impairment loss	4,545	3,322
      Provision for loss on disaster	-	1,199
      Disaster-damage losses	-	768
      Net change in allowance for doubtful accounts	305	447
      Net change in net defined benefit liabilities	2,383	2,260
      Increase (Decrease) in allowance for safety and environmental measures	(50)	(3)
      Interest and dividend income	(1,080)	(1,407)
      Interest expense	3,196	4,407
      Construction grants received	(9,438)	(4,645)
      Gain on assets held in trust	(1,603)	(1,488)
      Gain on investment securities	(848)	(881)
      (Increase) Decrease in trade receivables	4,394	(2,411)
      (Increase) Decrease in inventories	(6,450)	(14,613)
      Increase (Decrease) in trade payables	6,100	(2,511)
      Gain on sale of fixed assets	(454)	(2,331)
      Other	(6,360)	(7,783)
      Subtotal	98,141	88,269
      Interest and dividends income received	1,019	1,305
      Interest expense paid	(2,741)	(3,757)
      Gain on assets held in trust received	1,604	1,482
      Loss on disaster paid	(995)	(505)
      Income taxes paid	(357)	(13,941)
      Net cash provided by operating activities	96,669	72,853

      FY2025/3

      (April 1, 2024 - March 31, 2025)

      (Millions of Yen)

      FY2026/3

      (April 1, 2025 - March 31,

      2026)

      CASH FLOWS FROM INVESTING ACTIVITIES

      Purchases of property, plant and equipment, and Intangible assets	(112,916)	(85,911)
      Proceeds from sale of property, plant and equipment, and intangible assets	749	2,699
      Purchases of investment securities	(4,516)	(7,724)
      Proceeds from construction grants	7,188	4,720
      Other	2,085	(915)
      Net cash provided by (used in) investing activities	(107,410)	(87,130)
      CASH FLOWS FROM FINANCING ACTIVITIES
      Net increase (decrease) in short-term loans payable	(2,254)	(2,297)
      Net increase (decrease) in commercial papers	(15,000)	(25,000)
      Proceeds from long-term loans payable	36,769	58,483
      Repayment of long-term loans payable	(28,988)	(33,046)
      Payments for long-term accounts payable	(134)	-
      Proceeds from issuance of corporate bonds	40,000	50,000
      Payments for redemption of corporate bonds	(10,255)	(5,000)
      Proceeds from lease and guarantee deposits received	2,146	2,154
      Repayments of lease and guarantee deposits received	(1,027)	(1,065)
      Cash dividends paid	(21,943)	(16,993)
      Payments from changes in ownership interests in
      subsidiaries that do not result in change in scope of	-	(2,133)
      consolidation
      Purchase of treasury stocks	(4,367)	(10,000)
      Proceeds from sales of treasury stocks	624	1,183
      Other	(2,501)	(3,775)
      Net cash used in financing activities	(6,931)	12,509
      Effect of exchange rate change on cash and cash equivalents	148	32
      Net increase (decrease) in cash and cash equivalents	(17,523)	(1,735)
      Cash and cash equivalents, beginning of year	61,907	45,799
      Increase in cash and cash equivalents from newly 1,416 193 consolidated subsidiaries

      Cash and cash equivalents, end of year 45,799 44,257

   4. Notes to Consolidated Financial Statements

      (Notes on Going Concern Assumption)

      None

      (Changes in the Scope of Consolidation or Application of the Equity Method) (Significant Changes in the Scope of Consolidation)

      Meijikensetsu Co., Ltd. and Showatecs Co., Ltd. have been included in the scope of consolidation from the fiscal year under review due to their increased materiality.

      JR Kyushu Real Estate Development US LLC has been newly established and has been included in the scope of consolidation from the fiscal year under review.

      JR Kyushu Linen Co., Ltd. has been excluded from the scope of consolidation from the fiscal year under review following its absorption-type merger into JR Kyushu Service Support Co., Ltd., the surviving company.

      (Additional Information)

      (Damage caused by the "Heavy Rains Beginning August 6, 2025")

      In August 2025, heavy rainfall occurred across parts of Kyushu, causing damage such as mudslides and embankment collapses on the Nippo Main Line, Hisatsu Line, and other lines. Of the restoration-related costs stemming from this event, those incurred during the fiscal year under review have been recorded under "loss on disaster." Additionally, estimated costs expected to be incurred in or after the following fiscal year have been reasonably

      calculated and recorded as "provision for loss on disaster" under extraordinary losses in the consolidated statement of income for the fiscal year under review.

      (Cancellation of Treasury Stock)

      At a meeting of the Board of Directors held on September 2, 2025, the Company resolved to cancel treasury stock pursuant to Article 178 of the Companies Act.

      1. Reason for the cancellation: To enhance shareholder returns and improve capital efficiency

      2. Type of shares cancelled: Common stock of the Company

      3. Total number of shares cancelled: 2,652,600 shares

         (Equivalent to 1.69% of total shares outstanding before cancellation)

      4. Effective date of cancellation: September 9, 2025

         As a result, during the fiscal year under review, "treasury stock" and "capital surplus"

         under net assets in the consolidated balance sheet each decreased by ¥9,999 million.

         (Segment Information)
         1. Outline of Reportable Segments

            The reportable segments the Company reports are the business units for which the Company is able to obtain respective financial information separately in order for the Board of Directors, etc., to regularly evaluate how to allocate resources and assess their business performance.

            The Company primarily engages in the railway business and has five reportable segments: Transportation, Real Estate and Hotels, Retail and Restaurant, Construction, and Business Services.

            The Transportation segment conducts the railway and bus businesses. The Real Estate and Hotels segment leases station buildings and other real estate, sells condominiums and other properties, and conducts hotel operations, etc. The Retail and Restaurant segment engages in retail, restaurant, and agriculture businesses. The Construction segment performs construction, vehicle equipment- and machinery-related operations, electrical work, and construction consulting. The Business Services segment engages in construction machinery sales and rental, wholesaling, cleaning, advertising, system-related, and other businesses.

         2. Methods for Calculating Sales, Income and Losses, Assets, and Other Items by Reportable Segment

            The accounting methods used for reportable segments are generally the same as those contained in "Significant matters that serve as the basis for preparing consolidated financial statements."

            Inter-segment internal revenue and transfers are based on market prices, etc. Figures for reportable segment profit are on an operating income basis.

         3. Information on Sales, Income and Losses, Assets, and Other Items by Reportable Segment

            For the fiscal year ended March 31, 2025 (April 1, 2024 - March 31, 2025)

            (Millions of yen)

            	Reportable Segments					Total	Adjustment (Note 1)	Amount on the consolidate d financial statements (Note 2)
            	Transportatio n	Real Estate and Hotels	Retail and Restaurant	Construction	Business Services
            Operating Revenues Outside Customers Inside Group	164,347 4,989	138,388 5,024	66,683 389	43,070 57,549	41,904 40,695	454,393 108,648	- (108,648)	454,393 -
            Total	169,337	143,412	67,072	100,619	82,599	563,042	(108,648)	454,393
            Segment income (loss)	12,186	31,483	3,482	7,360	5,260	59,773	(796)	58,976
            Segment assets	283,837	661,431	37,394	89,013	122,691	1,194,368	(53,859)	1,140,509
            Other items
            Depreciation costs	13,206	18,125	1,495	1,286	4,696	38,810	(399)	38,410
            Increase in property, plant and equipment and intangible assets	24,288	65,439	3,285	2,989	10,053	106,057	(684)	105,372

            (Notes) 1. The following adjustments have been made.

            1. The ¥(796) million adjustment to segment income reflects the elimination of intersegment transactions.

            2. The ¥(53,859) million adjustment to segment assets includes a downward adjustment of ¥(159,270) million in reflection of the elimination of intersegment receivables and payables, and ¥105,410 million in corporate assets not allocated to segments.

            3. The ¥(399) million adjustment to depreciation costs reflects the elimination of intersegment transactions.

            4. The ¥(684) million adjustment to increase in fixed assets reflects the elimination of intersegment transactions.

         2. Segment income has been adjusted for the operating income figure in the consolidated income statements.

         For the fiscal year ended March 31, 2026 (April 1, 2025 - March 31, 2026)

         (Millions of yen)

         	Reportable Segments					Total	Adjustment (Note 1)	Amount on the consolidate d financial statements (Note 2)
         	Transportatio n	Real Estate and Hotels	Retail and Restaurant	Construction	Business Services
         Operating Revenues Outside Customers Inside Group	185,724 4,944	151,518 5,175	71,382 427	48,111 62,975	43,655 40,510	500,393 114,034	- (114,034)	500,393 -
         Total	190,668	156,694	71,810	111,087	84,166	614,427	(114,034)	500,393
         Segment income	23,976	34,403	3,873	7,740	5,037	75,031	(991)	74,040
         Segment assets	293,219	694,695	41,891	98,895	127,926	1,256,627	(34,197)	1,222,430
         Other items
         Depreciation costs	14,693	18,534	1,517	1,355	4,549	40,651	(418)	40,232
         Increase in property, plant and equipment and intangible assets	29,038	39,089	4,526	2,720	10,321	85,697	186	85,884

         (Notes) 1. The following adjustments have been made.

         1. The ¥(991) million adjustment to segment income reflects the elimination of intersegment transactions.

         2. The ¥(34,197) million adjustment to segment assets includes a downward adjustment of ¥(150,511) million in reflection of the elimination of intersegment receivables and payables, and ¥116,314 million in corporate assets not allocated to segments.

         3. The ¥(418) million adjustment to depreciation costs reflects the elimination of intersegment transactions.

         4. The ¥(186) million adjustment to increase in fixed assets reflects the elimination of intersegment transactions.

         2. Segment income has been adjusted for the operating income figure in the consolidated income statements.

         (Per Share Information)

         	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026
         Net assets per share	￥2,922.77	￥3,210.79
         Net income per share	￥278.96	￥295.39

         (Notes) 1. Earnings per share-diluted is not shown because no dilutive shares existed.

         1. In calculating net assets per share, the Company's shares in the Board Benefit Trust (BBT), which are recorded as treasury stock in the equity section, are included in the treasury stock that is subtracted from the total number of shares issued at the end of the period (FY2025/3: 1,111,200 shares; FY2026/3: 814,800 shares).

            In addition, in calculating net income per share, these shares are included in the treasury stock that is subtracted in the calculation of the average number of shares during the period (FY2025/3: 802,317 shares; FY2026/3: 955,792 shares).

         2. The following is the basis for calculating net assets per share.

            	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026
            Total net assets (millions of yen)	458,620	494,870
            Amount deducted from total net assets (millions of yen)	2,113	941
            [Included non-controlling interests (millions of yen)]	(2,113)	(941)
            Net assets at end of year relating to common stock (millions of yen)	456,507	493,928
            Amount of common stock at end of year used for calculating net assets per share (shares)	156,190,115	153,833,866

         3. The following is the basis for calculating net income per share.

         	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026
         Net income attributable to owners of the parent (millions of yen)	43,657	45,468
         Amount not belonging to ordinary shareholders (millions of yen)	-	-
         Net income attributable to common stock owners of the parent (millions of yen)	43,657	45,468
         Weighted-average numbers of ordinary shares (shares)	156,499,059	153,929,077

         (Significant Subsequent Events)

         None

2. Non-Consolidated Financial Statements and Major Notes
   1. Non-Consolidated Balance Sheets

      FY2025/3

      (As of March 31, 2025)

      (Millions of Yen)

      FY2026/3

      (As of March 31, 2026)

      ASSETS

      Current assets

      Cash and time deposits	17,284	16,805
      Fares receivable	3,115	4,176
      Accounts receivable-trade	35,269	40,977
      Securities	11,127	8,000
      Real estate for sale	10,524	11,232
      Real estate for sale in process	44,037	65,379
      Supplies	10,079	11,426
      Other	5,073	11,332
      Allowance for doubtful accounts	(5)	(4)
      Total current assets	136,506	169,326
      Non-current assets
      Fixed assets for railway business
      Property, plant and equipment	762,755	777,731
      Accumulated depreciation	(599,757)	(604,370)
      Property, plant and equipment (net)	162,998	173,361
      Intangible assets	1,759	1,889
      Net fixed assets for railway operations	164,757	175,251
      Fixed assets for other business
      Property, plant and equipment	524,788	550,136
      Accumulated depreciation	(86,387)	(97,466)
      Property, plant and equipment (net)	438,401	452,670
      Intangible assets	305	241
      Net fixed assets for other business	438,706	452,911
      Fixed assets relating to both businesses
      Property, plant and equipment	30,349	30,008
      Accumulated depreciation	(14,381)	(14,913)
      Property, plant and equipment (net)	15,967	15,094
      Intangible assets	38	120
      Net fixed assets relating to both businesses	16,005	15,215
      Construction in progress
      Railway business	9,974	11,417
      Other business	6,883	10,017
      Relating to both businesses	317	944
      Total construction in progress	17,175	22,379
      Investments and other assets
      Investment securities	36,106	48,483
      Stocks of subsidiaries and affiliated companies	37,073	26,392
      Long-term prepaid expenses	12,932	14,294
      Deferred tax assets	32,548	31,601
      Other	59,032	52,816
      Allowance for doubtful accounts	(9,253)	(8,918)
      Total investments and other assets	168,438	164,670
      Total noncurrent assets	805,083	830,427
      Total assets	941,589	999,754

      FY2025/3

      (As of March 31, 2025)

      (Millions of Yen)

      FY2026/3

      (As of March 31, 2026)

      LIABILITIES
      Current liabilities
      Short-term loans	5,000	-
      Commercial papers	25,000	-
      Current portion of corporate bonds	5,000	-
      Current portion of long-term debt	24,242	32,184
      Payables	70,999	72,919
      Accrued income taxes	3,717	6,481
      Fare deposits received with regard to railway connecting services	3,265	3,149
      Deposits received	4,968	2,490
      Railway fares received in advance	9,241	8,629
      Advances received	8,608	8,170
      Accrued bonuses	6,137	7,254
      Other	6,710	8,452
      Total current liabilities	172,890	149,732
      Non-current liabilities
      Corporate bonds	180,000	230,000
      Long-term debt	165,994	181,176
      Employees' severance and retirement benefits	37,814	40,011
      Allowance for safety and environmental measures	595	592
      Allowance for disaster-damage losses	2,629	3,819
      Provision for guarantee obligations	4,182	4,788
      Asset retirement obligations	1,878	1,885
      Other	10,909	11,640
      Total noncurrent liabilities	404,003	473,915
      Total liabilities	576,893	623,647
      NET ASSETS
      Shareholders' equity
      Common stock	16,000	16,000
      Capital surplus
      Capital surplus	171,908	171,908
      Other	52,113	42,113
      Total capital surplus	224,022	214,022
      Retained earnings
      Other
      Reserve for deferred gain of fixed assets	11,253	11,253
      Retained earnings carried forward	113,187	124,955
      Total retained earnings	124,441	136,209
      Treasury stock	(4,311)	(3,127)
      Total shareholders' equity	360,152	363,103
      Valuation and translation adjustment
      Valuation difference on available-for-sale securities	4,543	13,002
      Net valuation and translation adjustment	4,543	13,002
      Total net assets	364,695	376,106
      TOTAL LIABILITIES AND NET ASSETS	941,589	999,754

   2. Non-Consolidated Statements of Income

      FY2025/3

      (April 1, 2024 -

      March 31, 2025)

      (Millions of Yen)

      FY2026/3

      (April 1, 2025 -

      March 31, 2026)

      RAILWAY BUSINESS

      Operating revenues

      Income from railway passenger traffic	151,248	172,604
      Trackage revenue	506	547
      Miscellaneous income of transportation	15,301	15,719
      Total operating revenues	167,056	188,871
      Operating expenses
      Transportation expenses	119,896	128,434
      General and administrative expenses	13,923	14,766
      Taxes	8,027	8,292
      Depreciation costs	11,806	13,091
      Total operating expenses	153,653	164,585
      Operating Income	13,402	24,285
      OTHER BUSINESSES
      Operating revenues
      Revenue from real estate sale	30,361	37,586
      Revenue from real estate lease	39,085	41,600
      Other	4,345	4,880
      Total operating revenues	73,792	84,068
      Operating expenses
      Cost of sales	33,045	39,839
      Selling, general and administrative expenses	1,283	1,398
      Taxes	5,422	5,766
      Depreciation costs	11,383	11,945
      Total operating expenses	51,134	58,948
      Operating income	22,658	25,119
      TOTAL OPERATING INCOME	36,061	49,405
      NON-OPERATING INCOME
      Interest income	88	117
      Dividend income	642	745
      Gain on assets held in trust	1,603	1,488
      Gain on investment securities	847	881
      Reversal of provision for loss on guarantees, etc.	3,452	666
      Other	615	706
      Total non-operating income	7,250	4,606
      NON-OPERATING EXPENSES
      Interest expense	2,144	3,318
      Other	503	443
      Total non-operating expenses	2,647	3,762
      ORDINARY INCOME	40,663	50,249

      (Millions of Yen)

      	FY2025/3 (April 1, 2024 - March 31, 2025)		FY2026/3 (April 1, 2025 - March 31, 2026)
      EXTRAORDINARY GAINS
      Construction grants received		9,313		4,627
      Reversal of allowance for doubtful accounts		-		828
      Other		1,130		889
      Total extraordinary gains		10,444		6,345
      EXTRAORDINARY LOSSES
      Loss on reduction of noncurrent assets		8,739		4,576
      Project withdrawal losses		-		9,649
      Impairment loss		2,641		2,172
      Provision for loss on disaster		-		1,199
      Disaster-damage losses		-		754
      Loss on valuation of subsidiaries and affiliates		1,497		-
      Other		712		2,568
      TOTAL EXTRAORDINARY LOSSES		13,590		20,921
      INCOME BEFORE INCOME TAXES		37,516		35,673
      INCOME TAXES -Current		2,647		8,215
      INCOME TAXES -Deferred		3,793		(1,303)
      TOTAL INCOME TAXES		6,441		6,912
      NET INCOME		31,075		28,760

   3. Non-Consolidated Statements of Changes in Net Assets

For the fiscal year ended March 31, 2025

(Millions of Yen)

For the fiscal year ended March 31, 2026

(Millions of Yen)