Kyushu Railway : The Future Railway Project（3,572 KB）

‌JR KYUSHU IR DAY 2025

November 26, 2025

Director and Managing Corporate Officer,

Director General of Railway Operations Headquarters

Michiya Sadakari

Ⅰ Need for the Future Railway Project 3

Ⅱ The Future Railway Project in Review 6

Ⅲ Outcomes of and Progress on the Future Railway Project 11

Ⅳ Impact of the Future Railway Project within the

Medium-Term Business Plan 17

Realize Sustainable Mobility Services

• Internal environment: aging of railway infrastructure

  0-10

  years

  11-15

  years

  16-20 21-25 26-30 31-35

  years years years years

  36-40

  years

  41-45 46-50 51-55

  years years years

  56-60 More

  years than 60

  years

  
  
  

  1,600

  1,200

  Aging bridges

  800

  400

  0

  ～10 ～20 ～30 ～40 ～50 ～60 ～70 ～80 ～90 ～100 ～110 ～120 ～130 ～140

  0-10

  11-20

  21-30

  31-40

  41-50

  51-60

  61-70

  71-80

  81-90

  91-100 101-110 111-120

  ～150

  121-130 131-140 141-150

  years

  90

  years

  years

  years

  years

  years

  years

  years

  years

  years

  years

  years

  years

  years

  years

  Aging tunnels

  60

  30

  ～10 ～20 ～30 ～40 ～50 ～60 ～70 ～80 ～90 ～100 ～110 ～120 ～130 ～140 ～150

  0

  0-10	11-20	21-30	31-40	41-50	51-60	61-70	71-80	81-90	91-100 101-110 111-120	121-130 131-140 141-150
  years	years	years	years	years	years	years	years	years	years years years	years years years

  16,000

  12,000

  Aging utility poles

  8,000

  4,000

  0

  
  
  ‌Need for the Future Railway Project

• Internal environment: rolling stock renovation on Shinkansen and

  電車

  新幹 線

  気動 車

  内燃機 関車

  客車

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

  Shinkansen

conventional lines

160

140

120

100

80

60

The standard replacement period for conventional lines: 45-60 years

The standard replacement period for Shinkansen: 25-30 years

40

20

0

1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020 2023

• Business structural reforms in the railway business, the segment most impacted

  by the COVID-19 pandemic

  Impact of the pandemic and project initiatives

  • As part of cost reduction efforts in the railway business, we achieved a ¥14.0 billion

  reduction in fixed costs through BPR.

  • To further deepen business structural reforms, we launched the Future Railway

  Project in FY23.3.

  Return to a growth

  trajectory

  Achieving sustainable

  growth

  Return to

  profitability

  ２０１６ ２０１７ ２０１８ ２０１９

  (Initial public offering)

  ２０２０ ２０２１ ２０２２ ２０２３ ２０２４ ２０２５ ２０２６ ２０２７ ２０２８ ２０２９ ２０３０

  Future Railway Project

  *Building on BPR to achieve lasting improvements in the earnings structure

  BPR* project: Completed in two and a half years with ongoing impact

  Medium-Term Business Plan 2025-2027

  Impact of the pandemic

  Illustration of operating income:

* We conducted business process re-engineering (BPR) in a short timeframe and successfully achieved a ¥14.0 billion reduction in fixed costs in FY23.3.

• Creating the "railway of the future" to drive city-building in Kyushu

  Overview of the Future Railway Project

  • The Future Railway Project builds on the lean railway business established through BPR and aims to strengthen both mobility innovation and financial resilience.

  • Cross-functional teams are working to harness the railway's strengths and assets to create new revenue opportunities

    
    
    

    BPR impact

Operating expenses

Operating revenues

and drive innovation through technological development and adoption of new technologies.

Goals of the Future Railway Project

-14.0

• Quantitative goal

  187.7

• • Through DX promotion and technological innovation, the project aims to further reduce fixed costs and increase revenues, targeting an improvement of over ¥14.0 billion in operating profit by FY31.3.

• Qualitative goal

  • The project is driven by a foundation of safety, security, and a customer-first mindset, with the goal of enhancing the value of railways and creating a virtuous cycle of growth.

    Operating income

25.4

Enhance value and ensure

sustainable growth of the railway

Improvement of

provided value

Customer Employee growth satisfaction and job

Revitalization of satisfaction local communities

Future Railway Project

Customer perspective

Safety

Investment

in human capital Investment in growth

Creation of a

sustainable profit-generating management foundation

Furthe

r strengt hening

Note: The ¥14.0 billion improvement target is measured from

FY2022 earnings, after the COVID-19 pandemic.

• Improving revenue and expenditures through revenue acquisition and investment, and creating the future beyond organizational boundaries.

  Purpose of the Future Railway Project

  • With rising depreciation costs, it is essential to build a resilient management foundation for the future-both defensively and offensively.

    Defensive efforts at future-

    oriented reinforcement

    Build unwavering management resilience to fulfill the mission of rail and mobility even amid unforeseen challenges.

    Proactive efforts at future-

    oriented reinforcement

    Prioritize safety while evolving into a management structure capable of bold investments in new technologies and services.

    Population decline, inflation, climate change

    (increasingly severe disasters)

    Large-scale renovation of rolling stock and infrastructure ahead, as well as investment aligned with evolving customer needs

    Rise in depreciation cost

    Differences between BPR and the Future Railway Project

    Considered by cross-functional teams

    Medium to long term (sights set on FY2031.3)

    Improve provides by earning revenues and investing

    
    
    

    Focus on cutting costs

    Short term (completion to take approximately two and a half years)

    Considered by individual organizations

    BPR Project Future Railway Project

    
    
    ‌The Future Railway Project in Review

• Promotion system and Decision-Making Framework for Reliable Project Execution

  Future Railway Project Promotion Framework

  • Originally launched with nine cross-functional teams; currently progressing across five

  cross-functional teams spanning multiple divisions

  Cross-functional teams

  Future

  maintenance

  Future

  earning methods

  Future

  facilities

  Future

  back office

  Future

  transpor tation systems

  
  
  

  The teams that implemented the initiatives have now transitioned to the full operation phase, where each department or relevant unit is responsible for ongoing management and verification.

  Future earning methods (railway-adjacent areas)

  Future Group

  companies

  Future income/expense management (visualization of income and expenses)

  Future local lines

  Project discussions and frequency

  • To ensure achievement of the ¥14.0 billion income improvement target for the Future Railway Project, each initiative

  is monitored, tracked, and risk-assessed.

  [President's briefing]

  Frequency: Once per month

  Participants: President, executive officers, and others

  
  
  

  [Progress meeting] Frequency: Once per month

  Participants: Railway business division heads and others

  
  
  

  [Secretariat meeting] Frequency: Once per month

  
  
  

  Working-level meetings for each team

  ‌Ⅲ Outcomes of and Progress on the Future Railway Project
  
  
  

  ‌Outcomes of and Progress on the Future Railway Project (Future Transportatioon Systems)

• Building a Safe, Customer-Centric, and Environmentally Sustainable Railway

  Creating a Rewarding and Comfortable Workplace through Expanded Roles

  • Expanded autonomous driving section

    • Promote automation and mechanization of tasks to ensure long-term maintenance of transportation

      infrastructure amid declining labor population.

      Automated

      Operation GOA2.5

      Automated operation with on-board certified operators (internal

      qualification).

      In emergencies, operators perform emergency stop and guide evacuation.

      Automated

      Operation GOA2.0

      Automated operation with licensed drivers (national

      qualification).

      In emergencies, drivers perform emergency stop and guide evacuation.

      
      
      

      March 2024: GOA 2.5 automated operation launched on the Kashii Line; GOA 2.0 trial operation started on Kagoshima Main Line (Orio-Futsukaichi).Future plans:

      
      
      

      Further expansion of automated operation sections.(GOA: Grade of Automation)

      Flexible Transportation Capacity to Meet Demand

  • Exploring Optimal Transportation Capacity and Improved Convenience through New Turnback Facilities

    Developing an Eco-Friendly Railway

  • Deployment of Energy-Efficient Driving (Eco Driving)

    • Conventional Lines: Display eco marks on timetables and designate priority sections for energy-efficient driving.

    • Shinkansen: Standardize buffer times between stations and set priority

      periods for energy-efficient driving.

      Short-Term (by 2027) Medium-Term (by 2035)

      Indicate buffer times between stations with eco (leaf) marks.

      1. leaf mark : 15 seconds

      2. leaf mark : 30 seconds

      3. leaf mark : 45seconds or more

      Promote efficient driving by moderating maximum

      speed to reduce traction power and CO₂ emissions.

      Expand energy-efficient driving to all areas (mainly local trains).

      Full-area implementation; reduce traction power by 5%.

      FY2025 Initiatives

      
      
      

      ‌Outcomes of and Progress on the Future Railway Project (Future Maintenance)

• Driving the Future of Railways with Advanced, Creative Maintenance

  Target Cycle

  Mechanizing, robotizing, and leveraging AI to streamline the entire maintenance

  cycle-from inspection and analysis to repair.

  Minimizing Lifecycle Costs through Condition-Based Maintenance

  • Deployment and Full-Scale Operation of Multi-

  Functional Inspection Vehicle "BIGEYE"

  • Replacing traditional on-foot patrols with the multi-functional inspection vehicle "BIGEYE" enables material monitoring, displacement measurement, and point cloud data conversion for comprehensive condition monitoring.

  • Our ultimate goal is to eliminate on-foot patrols entirely by introducing AI-driven decision-making for maintenance necessity.

  Material monitoring

  Rail

  Joint plate

  Orbital

  displacement

  Rail bond

  Future image

  AI development

  Judging the need for repair

  • Introduction and Development of REDEYE

    and Smart REDEYE

    • In addition to replacing train patrols with "REDEYE,"

      we are developing a portable version, Smart REDEYE.

    • These systems enable image analysis via onboard cameras and measurement of train vibrations

  Image analysis

  Confirmation of

  environment and

  overhead equipment

  Sway measurement

• Autonomous Drone Security

  • Conducting surveillance and inspection of structures and track surroundings through low-altitude, remote autonomous flight.Reducing human patrols to enhance safety and efficiency.

  • Future goal: Full automation of structural inspections.

Enhancing Productivity and Safety through Mechanization and Workforce Optimization

• One-person operation of the track checking

  vehicles (Kyushu Shinkansen)

  • Equipped with AI-powered cameras to automatically detect obstacles within the clearance envelope. Drivers monitor via onboard display.

    Note:AI Forward Monitoring System jointly developed with Tokyo Artisan Intelligence Co., Ltd..

  • AI utilization reduces workforce requirements for track confirmation tasks.

‌Outcomes of and Progress on the Future Railway Project (Future Facilities)

• Optimization of railway assets using new technologies according to

  transportation systems

  Enhancing Safety and Convenience through Train Control Using General-Purpose Wireless Communication

  • Development of Wireless Train Control System

    •

    Introduce train control systems utilizing general-purpose wireless communication

    to streamline equipment and improve safety through in-cab signal display.

    Wireless Train Control System (Concept)

    •

    In the future, aim to enhance convenience by enabling flexible timetable

    management.

    Streamlining Expected Equipment

    Central control unit

    Wireless communication devices

    Signal equipment

    Cables

    Level crossing controllers Activation circuits

    Stop limit point

Current

Future

Expansion of train operation information services

• Introduction of Next-Generation Information System

  • Implement large LCD panels for departure indicators to improve convenience.

  • Considering services that allow passengers to check real-time train operation and location information anytime, anywhere via PC or smartphone.

  • Aim to streamline station facilities and operations while enhancing

customer service.

‌Outcomes of and Progress on the Future Railway Project

(Future earning methods for Railways)

Development of products and initiatives that encourage people to ride and travel

Revenue

Growth

Rail transportation revenue = Number of Passengers (New customers + Repeat

users) × Average Spend "Maximize Customer Lifetime Value (LTV)"

• Expanding New Customers and Repeat Users, Driving Demand for Travel, and Maximizing LTV

  • Challenge: Acquire and expand new customers

    • Secure inbound demand effectively

  • Ensure fair value capture from

    customers

    • Advance yield management

sophistication

Specific Achievements and Progress

• Development of Target-Specific Product Initiatives

  【Driver's License Return Going Out Ticket】

  • Area-limited pass for customers aged 65 and above who have returned their driver's license

• Repeat Users: Build highly loyal fans for long-term relationships

  • Develop products that nurture core enthusiasts and enhance apps and loyalty programs

    
    
    

• Creating events (developing purposes to generate travel demand)

  
  
  

  • Implement themed trains and initiatives that

    leverage fan engagement to drive traffic

• Expansion of QR ticketless services

  • Since the launch of this service in September 26, last year, usage has been on the rise. The service contributes to reduced workload at station counters and helps ease congestion.

  • Starting in July 8, we will expand coverage from the northern Kyushu area to all conventional lines limited express and D&S trains.

(Note: Does not apply to 36+3, KANPACHI/ICHIROKU, and ARU RESSHA.)

Sales Performance: Over 1,000 passes sold since July 2024

(Unit: people) 9000

September October-

December

January-

March

October

FY25.3 FY26.3

6000

3000

９月

４～６月

１～３月

１０～１２月

25.3期

26.3期

７～９月

１０月

0

Average daily usage of QR ticketless

The proportion of QR ticketless usage among products eligible for QR ticketless service

90.0%

80.0%

70.0%

60.0%

‌Outcomes of and Progress on the Future Railway Project (Open Innovation)

• Leveraging open innovation to explore knowledge and co-create new value

Capital and business alliance with Tokyo Artisan Intelligence Co., Ltd.

• Background and objective of the capital and business alliance

  • We have been collaborating under the Future Railway Project since 2022, to jointly pursue technology development.

  • The alliance aims to further strengthen the development of AI products that contribute to labor-saving and workforce reduction under the Future Railway Project.

    Partnership agreement with Plug and Play Japan Inc.

• Objective in forming the partnership

  
  
  

  • To gain opportunities for co-creation with numerous global startups, and drive business transformation through fresh ideas and cutting-edge technologies beyond the scope of existing frameworks, JR Kyushu entered into a partnership agreement.

  • With Plug and Play Japan serving as a catalyst, the company aims to accelerate the Future Railway Project by combining its existing technologies and management resources with those of startups to co-create new mobility value.

• Future outlook

  
  
  
  
  
  

  • We aim to strengthen collaboration through initiatives such as promoting joint development, expanding external sales, and fostering talent-including through secondments.

    AI-based obstacle detection system

• Future outlook

  • Through collaboration, JR Kyushu will strengthen efforts toward accelerated implementation, creation of new businesses, and the exploration of next-generation products. These initiatives aim to lead to tangible, measurable results.

Demonstration test of "SPACECOOL," a radiative cooling material

‌Impact of the Future Railway Project on the Medium-Term Business Plan

• Impact of the Future Railway Project on the Medium-Term Business Plan

(Visualization of cost-specific effects, capital investment, and profit improvement impact)

Current Planned Cost-Specific Profit Improvement and Capital Investment(Target Image for 2030)

収支改 善額

Income improvement

【Capital Investment Plan for the Future Railway Project】

30

【Estimated Profit Improvement Effect (Image)】

¥14.0 billion

¥9.0 billion

¥7.0 billion

Income improvements due to the Future Railway Project

¥14.0 billion

Reductions in fixed costs due to BPR

（Unit ¥bil）

15

２０２5 ２０２7 ２０30

｜Medium-Term Business Plan

２０２５-２０２７｜

＊The profit improvement target of ¥14 billion represents the improvement from

FY2022 post-COVID profit levels.

【Breakdown of Cost-Specific Effects (Image)】

収入

業務 

動力 

減価償 却

140

120

100

80

Depreciation cost

Energy cost

Revenue

BPR

Energy cost Depreciation cost

Operational

expenses

Maintenance Outsourcing costs

cost

Personnel

expense

Investment in growth

Operational

expenses

（Unit ¥bil）

0

2025 2026 2027 2028 2029 2030

【Structure of Profit Improvement Effects】

人件 

修繕 

社外委 託

社外委 託

減価償 却

人件 

収入

動力 

業務 

修繕 

60

40

20

0

‌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.