Kyushu Railway Company · TSE:9142
Kyushu Railway — H1 FY27.3 Earnings Presentation
46 slides from Kyushu Railway's earnings presentation, Nov 5, 2026
Slide 1: FY27.3 Semi-Annual Investors Meeting
FY27.3 Semi-Annual Investors Meeting November 5, 2026 KYUSHU RAILWAY COMPANY
Slide 2: Contents
Contents Ⅰ Financial Results for the First Six Months of FY27.3 ３ Ⅱ Full-Year Performance Forecasts and Dividend Forecasts for FY27.3 10 Ⅲ Status of Segments 19 Ⅳ Progress on the Medium-Term Business Plan 28 2
Slide 3: Financial Results for the First Six Months of FY27.3
Ⅰ Financial Results for the First Six Months of FY27.3 3
Slide 4: Consolidated Financial Highlights for the Six-Month Period Ended September 30, 2026
Consolidated Financial Highlights for the Six-Month Period Ended September 30, 2026 （\bil） Key points 6 months ended 6 months ended ⚫ Operating revenue increased year on year, mainly September 30, September 30, YoY due to higher real estate leasing revenue. 2025 2026 However, operating income, ordin
Slide 5: About the 2026 Kumamoto Earthquake
About the “2026 Kumamoto Earthquake” On July 28, 2026, an earthquake measuring 7 on the Japanese seismic intensity scale struck, centered on Uki City and Hikawa Town in Kumamoto Prefecture. Services resumed on September 18 between Kumamoto and Shin-Minamata on the Kyushu Shinkansen and on Octobe
Slide 6: About the 2026 Kumamoto Earthquake
About the “2026 Kumamoto Earthquake” Revenue declined by approximately ¥6.9 billion, mainly due to service suspensions and other disruptions in the railway business. Extraordinary losses of approximately ¥9.0 billion were recorded due to damage to railway facilities and other factors. Damage Sus
Slide 7: Consolidated Balance Sheet and Cash Flow Statement
Consolidated Balance Sheet and Cash Flow Statement （\bil） 6 months ended Results Increase September 30, Major factors FY26.3 /Decrease 2026 Assets 1,222.4 1,263.7 41.3 Current assets 247.7 279.8 32.1 Increase in work in process Non-current assets 974.7 983.8 9.1 Increase in property, plant and equip
Slide 8: Consolidated Results for the First Six Months of FY27.3 (by Segment)
Consolidated Results for the First Six Months of FY27.3 (by Segment) （\bil） 6 months ended 6 months ended September 30, September 30, YoY Major factors 2025 2026 Operating revenue 237.6 246.4 8.8 103.7% Transportation 92.2 91.0 (1.1) 98.7% Railway Business (non-consolidated) 91.5 90.2 (1.2) 98.6% De
Slide 9: Non-Consolidated Results for the First Six Months of FY27.3
Non-Consolidated Results for the First Six Months of FY27.3 (\bil) 6 months 6 months ended ended YoY Major Factors September 30, September 30, 2025 2026 Operating revenue 134.4 133.2 (1.2) 99.1% Railway transportation 83.6 82.2 (1.3) 98.4% revenues Decrease due to the impact of the "2026 Kumamoto Ea
Slide 10: Full-Year Performance Forecasts and Dividend Forecasts for FY27.3
Ⅱ Full-Year Performance Forecasts and Dividend Forecasts for FY27.3 10
Slide 11: Consolidated Financial Forecast Highlights for FY27.3 (Year-on-Year)
Consolidated Financial Forecast Highlights for FY27.3（Year-on-Year） （\bil） Medium-Term Key points Results Forecasts YoY Business Plan FY26.3 FY27.3 targets ⚫ Revised the forecasts announced on August 4, 2026. Operating revenue 500.3 520.5 20.1 104.0% 564.0 ⚫ The forecasts reflect the impact of the O
Slide 12: Consolidated Financial Forecasts for FY27.3 (by Segment, Year-on-Year)
Consolidated Financial Forecasts for FY27.3 (by Segment, Year-on-Year) (\bil) Medium-Term Results Forecasts YoY Major factors Business Plan FY26.3 FY27.3 targets Operating revenue 500.3 520.5 20.1 104.0% 564.0 Transportation Increase in Railway transportation revenues 196.0 190.6 192.6 1.9 101.0% Ra
Slide 13: Non-consolidated Financial Forecasts for FY27.3 (Year-on-Year)
Non-consolidated Financial Forecasts for FY27.3 (Year-on-Year) （\bil） Results Forecasts YoY Major factors FY26.3 FY27.3 Operating revenue 272.9 285.4 12.4 104.6% Railway transportation revenues 172.6 174.4 1.7 101.0% Shinkansen 69.1 66.0 (3.1) 95.4% Decrease due to the impact of the "2026 Kumamoto E
Slide 14: Major Factors Affecting Railway Transportation Revenues
Major Factors Affecting Railway Transportation Revenues (\bil) FY26.3 FY27.3 YoY Major factors results forecast Total 172.6 174.4 1.7 101.0% Commuter pass 37.0 39.1 2.0 105.5% Non-commuter pass 135.5 135.3 (0.2) 99.8% Shinkansen 69.1 66.0 (3.1) 95.4% Increase due to transition to new commuter pass p
Slide 15: Consolidated Financial Forecast Highlights for FY27.3 (Compared to Previous Forecast)
Consolidated Financial Forecast Highlights for FY27.3 （ Compared to Previous Forecast ） （\bil） Key points Forecasts Forecasts Medium-Term vs Aug. 4 FY27.3 FY27.3 Business Plan Forecasts (as of Aug.4) (as of Nov.4) targets ⚫ Revised the forecasts announced on August 4, 2026. Operating revenue 520.5 5
Slide 16: Consolidated Financial Forecasts for FY27.3 (by Segment, Compared to Previous Forecast)
Consolidated Financial Forecasts for FY27.3 (by Segment, Compared to Previous Forecast) (\bil) Forecasts Forecasts Medium-Term FY27.3 FY27.3 vs Aug. 4 Forecasts Major factors Business Plan (as of Aug. 4) (as of Nov. 4) targets Operating revenue 520.5 520.5 - 100.0% 564.0 Transportation 196.0 193.0 1
Slide 17: Non-consolidated Financial Forecasts for FY27.3 (Compared to Previous Forecast)
Non-consolidated Financial Forecasts for FY27.3 (Compared to Previous Forecast) （\bil） Forecasts Forecasts FY27.3 FY27.3 vs Aug. 4 Forecasts Major factors (as of Aug. 4) (as of Nov. 4) Operating revenue 286.1 285.4 (0.7) 99.8% Railway transportation revenues 175.1 174.4 (0.7) 99.6% Shinkansen 69.3 6
Slide 18: Shareholder Returns
Shareholder Returns JR Kyushu places importance on the stable provision of return to shareholders over the long term. Over the period up to FY28.3, we will aim for a consolidated dividend payout ratio of 35% or higher and flexibly implement share repurchases. Based on the above policy and taking
Slide 19: Status of Segments
Ⅲ Status of Segments 19
Slide 20: Transportation Segment
Transportation Segment In Q2 FY27.3, commuter pass revenues were in line with expectations, but non-commuter revenues fell substantially short of expectations due to the “2026 Kumamoto Earthquake.” 【Results】 【Forecasts】 （\bil） （\bil） 6months ended 6months ended Results Forecasts September 30, Sept
Slide 21: Railway Business (Transportation Data)
Railway Business (Transportation Data) Railway transportation revenues (\bil) 6 months ended 6 months ended YoY Major Factors September 30, 2025 September 30, 2026 Total 83.6 82.2 (1.3) 98.4% Commuter pass 18.3 20.0 1.7 109.5% Non-commuter pass 65.2 62.1 (3.1) 95.2% Shinkansen 33.9 29.6 (4.2) 87.4%
Slide 22: Status of Inbound Measures in the Railway Business
Status of Inbound Measures in the Railway Business In Q2 FY27.3, inbound revenue fell below both the previous year and expectations as use of the JR-KYUSHU RAIL PASS declined due to the “2026 Kumamoto Earthquake.” Revenue is expected to recover to the prior-year level in the second half of the fis
Slide 23: Real Estate and Hotels Segment | Real Estate Leasing Business
Real Estate and Hotels Segment | Real Estate Leasing Business In Q2 FY27.3, station building tenant sales exceeded both the previous year’s level and expectations, led by JR Hakata City, despite the impact of the “2026 Kumamoto Earthquake.” 【Results】 【Forecasts】 （\bil） （\bil） 6months ended 6months
Slide 24: Real Estate and Hotels Segment | Real Estate Sales Business
Real Estate and Hotels Segment | Real Estate Sales Business Condominium sales in Q2 FY27.3 progressed as expected. In sales of properties, properties including a rental apartment property were sold to third parties. 【Results】 【Forecasts】 （\bil） （\bil） 6months ended 6months ended Results Forecast
Slide 25: Real Estate and Hotels Segment | Hotel Business
Real Estate and Hotels Segment | Hotel Business In Q2 FY27.3, occupancy rates were below the level of Q2 FY26.3 due in part to the impact of the "2026 Kumamoto Earthquake"; however, ADR exceeded the level of Q2 FY26.3, driven by hotels with a high proportion of international guests. 【Results】 【For
Slide 26: Retail and Restaurant Segment
Retail and Restaurant Segment Both retail stores and restaurants performed steadily in Q2 FY27.3. New store openings progressed steadily as planned. All shares in consolidated subsidiary Nurubon were sold effective September 1, 2026. 【Results】 【Forecasts】 （\bil） （\bil） 6months ended 6months en
Slide 27: Construction Segment and Business Services Segment
Construction Segment and Business Services Segment Construction Segment 【Results】 【Forecasts】 （\bil） （\bil） 6months ended 6months ended Results Forecasts September 30, September 30, YoY YoY FY26.3 FY27.3 2025 2026 Operating revenue 40.6 46.8 6.2 115.4% 111.0 120.6 9.5 108.6% Operating income 0.6 1.0
Slide 28: Progress on the Medium-Term Business Plan
Ⅳ Progress on the Medium-Term Business Plan 28
Slide 29: JR Kyushu Group Medium-Term Business Plan 2025–2027
JR Kyushu Group Medium-Term Business Plan 2025–2027 Key strategies and the management base to support them strategies Key (1) Realize Sustainable Mobility (2) City Building through Enhanced Services (3) Plant Seeds for the Future Collaboration among Businesses Management Human capital expansion in l
Slide 30: Key Strategy (1) Increase in Value Provided to Customers
Key Strategy (1) Realize Sustainable Mobility Services |Increase in Value Provided to Customers We are implementing initiatives to improve customer satisfaction and create a more comfortable user environment, using increased railway transportation revenues from fare revisions as a source of fundin
Slide 31: Key Strategy (1) Realize Sustainable Mobility Services | Sales Measures
Key Strategy (1) Realize Sustainable Mobility Services | Sales Measures Ridership on the Kyushu Shinkansen has remained firm following the resumption of services along the entire line. We are actively implementing initiatives in conjunction with the Kyushu Recovery Support Discount. Following a
Slide 32: Disclosing Profitability by Train Line
Key Strategy (1) Realize Sustainable Mobility Services: Disclosing Profitability by Train Line Publicized financial results for lines with fewer than 2,000 passengers per day. Operating Average number of passengers Operating profit (loss) (passengers/day) Kokura No. Name of line Segment kilometers
Slide 33: Key Strategy (2) HAKOZAKI BLOCK
Key Strategy (2) City Building through Enhanced Collaboration among Businesses | HAKOZAKI BLOCK The HAKOZAKI BLOCK project (redevelopment of the former Kyushu University Hakozaki Campus site) will deliver value across multiple areas through JR Kaizuka Station (scheduled to open in spring 2027) and
Slide 34: Enhancing the Customer Experience with JQ BANK (Tentative Name)
Key Strategy (2) City Building through Enhanced Collaboration among Businesses | Enhancing the Customer Experience with “JQ BANK” (Tentative Name) A multifunctional financial super app extending beyond banking and securities will improve customer convenience and increase everyday touchpoints. Ra
Slide 35: Key Strategy (3) Grid-Based Storage Battery Business Battery Station
Key Strategy (3) Plant Seeds for the Future | Grid-Based Storage Battery Business “Battery Station” Construction has begun on Battery Station Isahaya, the third grid-based storage battery project jointly undertaken with the Sumitomo Corporation Group. The Group is promoting the use of land alongsi
Slide 36: APPENDIX
APPENDIX 36
Slide 37: EBITDA by Segment
EBITDA by Segment Transportation Real Estate and Hotels （¥bil） EBITDA EBITDA margin （¥bil） EBITDA EBITDA margin 38.6 60 60% 40 40% 52.9 49.6 50 30 25.3 30% 22.3 40.8 50% 40 36.2 20 13.1 20% 31.8 31.9 20.3% 10 10% 30 40% 13.6% 15.0% 9.5% 0 0% 20 FY22.3 FY22.3 FY23.3 FY24.3 FY25.3 FY26.3 34.6% 30% 33.
Slide 38: Trends in the Railway Business
Trends in the Railway Business Railway transportation revenues (Shinkansen), passenger load Internet train reservation services: factor on the Kyushu Shinkansen (Hakata-Kumamoto) Number of reservations, sales （10,000 reservations） （¥bil） （¥bil） Shinkansen Passenger load factor(right) 59% 700 Number
Slide 39: Trends in the Real Estate and Hotel Businesses
Trends in the Real Estate and Hotel Businesses Station building tenant sales Hotel occupancy rates and average unit prices （¥bil） Other major station buildings* JR Hakata City 296.5 （¥） ADR Occupancy Rates(right) 289.1 300.0 100% 262.8 24,000 83.1% 84.4% 78.8% 250.0 222.1 20,000 80% 140.3 148.0 67.5
Slide 40: Overview of Major Development Pipelines
Overview of Major Development Pipelines Floor space / Lot Name Location Schedule Notes (Uses, etc.) area/ Units / Rooms Site area: Kikuchi-gun, (Tentative name) JR Higo-Ozu Scheduled completion: June Approx. 2,556 m² ・ Leasing offices to semiconductor-related Kumamoto Building Development Project 20
Slide 41: Initiatives to realize management conscious of capital cost and stock price
Reference: Initiatives to realize management that is conscious of capital cost and stock price Our view To enhance market valuation, it is essential to execute strategies that clearly demonstrate future growth potential and gain market understanding. From the perspective of increasing shareholder va
Slide 42: Specific Initiatives to Realize Management Conscious of Capital Cost and Stock Price
Specific Initiatives to Realize Management that is Conscious of Capital Cost and Stock Price Target Execution and Progress of Key Initiatives (FY27.3) [(1) Realization of sustainable mobility services] [Timely and appropriate review of business •Realization of the effects of fare revisions. portfoli
Slide 43: Analysis of Our Current Status and Outlook
Analysis of Our Current Status and Outlook Analysis Outlook ⚫ Improvement in earnings capacity and capital efficiency ⚫ Balancing sustainability and profitability of the railway Earnings capacity and capital efficiency have steadily improved, driven business by the realization of the effects of fare
Slide 44: Rail Fares and Charges in the Railway Business
Rail Fares and Charges in the Railway Business In April 2025, we implemented a revision of rail fares and charges for the first time in 29 years. Recognizing that it will become difficult to operate a sustainable railway business unless the cost increase caused by changes in the external environ
Slide 45: Monthly Information and Revise Rail Fares and Charges
Monthly Information and Revise Rail Fares and Charges Revise Rail Fares And Charges Monthly Information (Material from July 2024) ④ ① ②・③ ② ① ③ ③ Trend of Handling Revenues Revenue from tickets sold at JR Kyushu stations, through online JR Kyushu train reservation, and at travel agencies. The "Railw
Slide 46: Forward-Looking Statements
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. A
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