Supplementary Materials for Financial Results for the first quarter of the FY2025

Jul 30, 2025 at 7:54 AM UTC · Issued by Nankai Electric Railway Co Ltd

‌Supplementary Materials for Financial Results for the First Quarter of Fiscal Year Ending March 31, 2026 (FY2025)

July 30, 2025

Nankai Electric Railway Co., Ltd.

(Tokyo Stock Exchange, Prime Market, Securities Code: 9044 https://www.nankai.co.jp/en/company.html)

‌Contents

I. Summary of Financial Results for the First Quarter of FY2025	P.	2
1. Performance highlights	P.	3
2. Results by Segment	P.	4
3. Non-operating income and expenses and extraordinary income and losses	P.	13
4. Status of assets, liabilities and net assets	P.	14
II. Business Forecasts for FY2025	P.	15
1. Performance highlights	P.	16
2. Segment operating revenue and operating income	P.	17
3. Revenue from railway passengers and passengers carried	P.	18

‌ Summary of Financial Results for the First Quarter of FY2025

‌Performance highlights

(Millions of yen)

	FY2025 1Q results	FY2024 1Q results	Change	Percentage change
Operating revenue	62,713 11,295 1,082 1,178 11,199 163 134 7,599	59,722	2,991	5.0%
Operating income		9,876	1,419	14.4%
Non-operating income		807	274	34.0%
Non-operating expenses		928	249	26.9%
Ordinary income		9,754	1,444	14.8%
Extraordinary income		8,480	−8,317	−98.1%
Extraordinary losses		8,414	−8,279	−98.4%
Profit attributable to owners of parent		6,718	881	13.1%

Due to increased inbound demand and the effects of EXPO 2025, there was a rise in passengers carried in the transportation business and increased revenue from hotel properties in the real estate business, as well as the contribution made by Meiko Bus (made a subsidiary in October 2024) and Tsutenkaku Kanko (made a subsidiary in December 2024, the last fiscal year), which resulted in higher revenue and income.

‌Status of segment composition (as of June 30, 2025)

[Consolidated subsidiaries: 53, non-consolidated subsidiaries: 20, non-equity method affiliates: 6]

Change (from March 31, 2025)：Decrease in consolidated subsidiaries, 1 company. Increase in non-consolidated subsidiaries, 3 companies.

Transportation

（35 companies）

Real Estate

（4 companies）

Distribution

（9 companies）

Leisure and Services

（21 companies）

Construction

（4 companies）

Other

（10 companies）

* Nankai Electric Railway Co., Ltd. (the Company) is included in duplicate in the Transportation, Real Estate, Distribution, and Leisure and Services segments.

[ Operating revenue ] [ Operating income ]

(Billions of yen) (Billions of yen)

* Percentage share: Ratio to operating revenue, including that from intersegment transactions

‌Segment operating revenue and operating income(compared to FY 2024 1Q)
1. Change of operating revenue (compared to FY 2024 1Q)
2. Change of operating income (compared to FY 2024 1Q)

(Millions of yen)

‌2. Segment operating revenue and operating income(compared to FY 2024 1Q)

(Millions of yen)

	Operating revenue				Operating income
	FY2025 1Q results	FY2024 1Q results	Change	Percentage change	FY2025 1Q results	FY2024 1Q results	Change	Percentage change
Transportation	29,434	27,409	2,024	7.4%	5,442	4,547	894	19.7%
Real Estate	9,720	9,159	561	6.1%	3,208	3,051	156	5.1%
Distribution	7,654	7,036	618	8.8%	1,284	1,113	170	15.3%
Leisure and Services	10,847	9,846	1,001	10.2%	848	792	56	7.1%
Construction	11,394	10,530	864	8.2%	563	307	256	83.4%
Other	611	543	67	12.4%	−70	−98	27	—
Adjustment	−6,948	−4,802	—	—	18	161	—	—
Total	62,713	59,722	2,991	5.0%	11,295	9,876	1,419	14.4%

‌2. Segment information (Transportation)

(Millions of yen)

Transportation		FY2025 1Q results	FY2024 1Q results	Change	Percentage change
Operating revenue		29,434	27,409	2,024	7.4%
	Railway business	18,369	18,370	−1	−0.0%
	Bus business	7,176	5,991	1,185	19.8%
	Other transportation	5,394	5,029	365	7.3%
	businesses	5,394	5,029	365	7.3%
	Adjustment (intrasegment)	−1,505	−1,981	—	—
Operating income		5,442	4,547	894	19.7%
Main components	Railway business	4,067	4,131	−64	−1.6%
Main components	Bus business	1,445	771	673	87.3%

•In the railway business and bus business, revenue and income increased due to the increase in passengers carried caused by the effects of increased inbound demand and the effects of EXPO 2025 and the contribution made by Meiko Bus, which became a subsidiary in October 2024.

* The figure for the railway business in 2024/1Q include sales from transactions between our company and Semboku Rapid Railway.

Excluding these transactions, operating revenue increased by 0.5 billion , and operating income increased by 0.3 billion.

‌2. Revenue from railway passengers and passengers carried (Including figures for the Semboku Line)

(Millions of yen, thousands of passengers)

All lines（Existing lines + Airport line ）		FY2025 1Q results	FY2024 1Q results	Change	Percentage change
Passenger revenue	Non-commuter passes	11,232	10,675	556	5.2%
	Commuter passes	6,412	6,432	−20	−0.3%
	Total	17,645	17,108	536	3.1%
Passengers carried	Non-commuter passes	17,645	25,534	1,150	4.5%
	Non-commuter passes	26,684	25,534	1,150	4.5%
	Commuter passes	37,113	35,606	1,507	4.2%
	Total	63,797	61,140	2,657	4.3%

Existing lines		FY2025 1Q results	FY2024 1Q results	Change	Percentage change
Passenger revenue	Non-commuter passes	7,951	7,745	206	2.7%
	Commuter passes	5,997	6,054	−56	−0.9%
	Total	13,948	13,799	149	1.1%
Passengers carried	Non-commuter passes	13,948	22,168	689	3.1%
	Non-commuter passes	22,857	22,168	689	3.1%
	Commuter passes	35,822	34,435	1,387	4.0%
	Total	58,679	56,603	2,076	3.7%

Airport line		FY2025 1Q results	FY2024 1Q results	Change	Percentage change
Passenger revenue	Non-commuter passes	3,280	2,930	350	11.9%
	Commuter passes	415	378	36	9.7%
	Total	3,696 3,827	3,309	387	11.7%
Passengers carried	Non-commuter passes	3,696 3,827	3,366	461	13.7%
	Commuter passes	1,291	1,171	120	10.2%
	Total	5,118	4,537	581	12.8%

‌2. Segment information (Real Estate)

(Millions of yen)

Real Estate	FY2025 1Q results		FY2024 1Q results	Change	Percentage change
Operating revenue	9,720		9,159	561	6.1%
	Real estate leasing business	9,004	8,589	414	4.8%
	Real estate sales business	750	606	143	23.7%
	Adjustment (intrasegment)	−33	−37	—	—
Operating income	3,208		3,051	156	5.1%
Main components	Real estate leasing business	3,306	3,242	64	2.0%
Main components	Real estate sales business	−97	−149	51	—

In the real estate leasing business, increased revenue and income were driven by the strong performance of hotel properties, due to increased inbound demand and the effects of EXPO 2025.
In the real estate sales business, revenue and income increased due to an increase in the number of condominium units handed over.

‌2. Segment information (Distribution)

(Millions of yen)

Distribution	FY2025 1Q results		FY2024 1Q results	Change	Percentage change
Operating revenue	7,654		7,036	618	8.8%
	Management of Shopping Centers	3,981	3,774	207	5.5%
	Station premises business	4,069	3,654	415	11.4%
	Other distribution businesses	56	54	1	3.1%
	Adjustment (intrasegment)	−452	−446	—	—
Operating income	1,284		1,113	170	15.3%
Main components	Management of Shopping Centers	773	657	115	17.6%
Main components	Station premises business	526	470	55	11.9%

The management of shopping centers recorded higher revenue and income due to increased rental income, primarily supported by strong tax-free sales.
In the station premises business, both revenue and income grew mainly due to strong sales at convenience stores.

‌2. Segment information (Leisure and Services)

(Millions of yen)

Leisure and Services		FY2025 1Q results	FY2024 1Q results	Change	Percentage change
Operating revenue		10,847	9,846	1,001	10.2%
	Building management and maintenance business	5,822	5,402	420	7.8%
	Other leisure and service	5,513	4,902	611	12.5%
	businesses	5,513	4,902	611	12.5%
	Adjustment (intrasegment)	−489	−458	—	—
Operating income		848	792	56	7.1%
Main components	Building management and maintenance business	190	96	93	97.2%

In the building management and maintenance business, increased revenue and income were achieved thanks to growth in maintenance income from new orders.
In the other leisure and service businesses, although revenue increased thanks to the contribution from Tsutenkaku Kanko (became a subsidiary in December 2024), income declined due to a decrease in the number of race days in the boat racing facility leasing business.

‌Segment information (Construction and Other)

(Millions of yen)

Construction FY2025 1Q FY2024 1Q results results			Change	Percentage change
Operating revenue	11,394	10,530	864	8.2%
Construction	11,395	10,530	864	8.2%
Adjustment (intrasegment)	−0	−0	—	—
Operating income	563	307	256	83.4%

Both revenue and income grew mainly due to an increase in the amount of completed construction contracts and improved profit ratios.

(Millions of yen)

Other		FY2025 1Q FY2024 1Q results results		Change	Percentage change
Operating revenue		611 615	543	67	12.4%
	Other		548	66	12.2%
	Adjustment (intrasegment)	−4 −70	−5	—	—
Operating income			−98	27	—

‌Non-operating income and expenses and extraordinary income and losses

(Millions of yen)

		FY2025 1Q results	FY2024 1Q results	Change	Remarks
Non-operating income		1,082	807	274
	Interest income	4	0	3
	Dividend income	792	639	153
	Miscellaneous income	284	167	117
Non-operating expenses		1,178	928	249
	Interest expenses	950	796	153
	Miscellaneous expenses	228	132	96
Extraordinary income		163	8,480	−8,317
	Contribution received for construction	119	8,400	−8,280	Same period of the previous year:Continuous flyover roadway construction in Takaishi City, etc.
	Gain on sale of non-current assets	43	62	−18
	Other	0	18	−17
Extraordinary losses		134	8,414	−8,279
	Tax purpose reduction entry of contribution for construction	117	8,396	−8,278	Same period of the previous year:Continuous flyover roadway construction in Takaishi City, etc.
	Other	17	18	−1

‌Status of assets, liabilities and net assets

	As of June 30,2025	As of March 31,2025	Change
Interest-bearing debt	448.9	432.9	16.0
Net interest-bearing debt	405.7	390.1	15.6

(Millions of yen)

	As of June 30,2025	As of March 31,2025	Change	Main reasons for changes
	Current assets 121,313	120,200	1,112	Current assets ・Increase in merchandise and finished goods +¥8.0 billion ・Decrease in notes and accounts receivable - trade, and contract assets −¥6.2 billion Non-current assets ・Increase in construction in progress +¥16.2 billion ・Decrease in buildings and structures stemming from depreciation −¥3.7 billion Liabilities 【The balance of interest-bearing debt】 (Billions of yen) ・Decrease in notes and accounts payable-trade – ¥7.1 billion Net assets ・Profit attributable to owners of parent +¥7.5 billion ・Increase in Valuation difference on available-for-sale Securities +¥1.2 billion ・Dividend of surplus −¥2.5 billion
	Non-current 870,550 assets	856,677	13,872
Total assets 991,863		976,877	14,985
Total liabilities 657,368		648,652	8,716
Net assets 334,494		328,225	6,269
Total liabilities 991,863 and net assets		976,877	14,985

‌Business Forecasts for FY2025

‌Performance highlights
As first quarter performance significantly exceeded expectations, the performance forecast has been revised. In terms of revenue, growth in inbound demand and the effects of EXPO 2025 contributed to an increase in passengers carried on the railway airport line and buses, as well as sales at shopping centers and room rates at hotel properties, all of which exceeded initial assumptions; while in terms of costs, declining fuel costs and other factors also led to an upward revision of the business forecasts.

(Millions of yen)

	FY2025			FY2024 results (C)	Change (A-C)
	Revised Forecasts at forecasts the beginning of the term (A) (B)		Change (A-B)	FY2024 results (C)	Change (A-C)
Operating revenue	271,200	266,700	4,500	260,787	10,412
Operating income	36,600	32,600	4,000	34,655	1,944
Ordinary income	33,600	29,600	4,000	35,572	−1,972
Profit attributable to owners of parent	21,700	18,900	2,800	22,496	−796
EBITDA*	66,400	62,700	3,700	63,235	3,164
Ratio of net interest-bearing debt to EBITDA*	7.0 times	7.3 times	−0.3 pt	6.2 times	0.8 pt
ＲＯＥ	7.0%	6.0%	1.0 pt	7.5%	−0.5 pt

* Operating income + Depreciation and amortization + Amortization of goodwill

On July 30, 2025, a resolution was passed at the Board of Directors meeting to acquire treasury shares. The indicators in the above revised forecast (A) reflect the impact of the acquisition of treasury shares.

‌Segment operating revenue and operating income

Changes in operating revenue by segment (Compared to initial forecast)

(Millions of yen)

Changes in operating income by segment (Compared to initial forecast)

—

・Building management and

maintenance business

+¥0.2 billion

・Management of Shopping Centers

+¥0.2 billion

・Station premises business

+¥0.1 billion

real estate leasing business +¥0.4 billion (Increase in revenues from hotel properties, etc.)
real estate sales business +¥0.2 billion

(Sale of owned properties, etc.)

・Railway +¥2.0 billion

(Higher revenue and lower depreciation and amortization, etc.)

・bus +¥0.7 billion

(Higher revenue and lower unit price of fuel, etc.)

(Millions of yen)

—

・Increase in building

management and maintenance income

・Increased sales in the management of shopping centers and station premises business (convenience stores) due to increased inbound demand

Increase in revenue from hotel rental properties due to the effects of EXPO 2025 * and increased inbound demand (+¥0.2 billion)
Sale of owned properties, etc.

Increase in revenue from the airport line due to
inbound tourism
(Growth rate compared to previous year: from 6% to 10%)
Upside from the effects of EXPO 2025 *
(Railway +¥0.3 billion/bus +¥0.3 billion)
Decrease due to the impact of the Semboku Line fare reduction(+¥0.3 billion)

* Effects of EXPO 2025

from ¥1.1 billion to ¥1.8 billion

‌3. Revenue from railway passengers and passengers carried (Including figures for the Semboku Line)

(Millions of yen, thousands of passengers)

All lines（Existing lines + Airport line ）	FY2025 Revised forecasts (A)	YoY percentage ((A-C)/C)	change	FY2025 Forecasts at the beginning of the term (B)	YoY percentage change ((B-C)/C)	FY2024results (C)
Passenger revenue	Non-commuter passes	45,175	4.4%	44,520	2.8%	43,287
	Commuter passes	24,734	−2.1%	24,254	−4.0%	25,267
	Total	69,909	2.0%	68,774	0.3%	68,555
Passengers carried	Non-commuter passes	106,943	3.7%	106,147	2.9%	103,146
	Commuter passes	138,874	1.1%	138,415	0.7%	137,421
	Total	245,817	2.2%	244,562	1.7%	240,567

Existing lines	FY2025 Revised forecasts (A)	YoY percentage ((A-C)/C)	change	FY2025 Forecasts at the beginning of the term (B)	YoY percentage change ((B-C)/C)	FY2024results (C)
Passenger revenue	Non-commuter passes	31,626	2.1%	31,375	1.3%	30,979
	Commuter passes	23,033	−2.9%	22,704	−4.3%	23,722
	Total	54,660	−0.1%	54,080	−1.1%	54,702
Passengers carried	Non-commuter passes	91,016	2.4%	90,759	2.1%	88,882
	Commuter passes	133,629	0.7%	133,629	0.7%	132,650
	Total	224,645	1.4%	224,388	1.3%	221,532

Airport line	FY2025 Revised forecasts (A)	YoY percentage ((A-C)/C)	change	FY2025 Forecasts at the beginning of the term (B)	YoY percentage change ((B-C)/C)	FY2024results (C)
Passenger revenue	Non-commuter passes	13,548	10.1%	13,144	6.8%	12,308
	Commuter passes	1,700	10.0%	1,549	0.2%	1,545
	Total	15,249	10.1%	14,694	6.1%	13,853
Passengers carried	Non-commuter passes	15,927	11.7%	15,388	7.9%	14,264
	Commuter passes	5,245	9.9%	4,786	0.3%	4,771
	Total	21,172	11.2%	20,174	6.0%	19,035

‌Cautionary note on forward-looking statements :

The forward-looking statements in this presentation, including financial forecasts, are based on information currently available to the Company and certain assumptions deemed reasonable. Therefore, actual results may differ from these forecasts due to various factors.

Note :

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Nankai Electric Railway Co., Ltd.

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