Non-Railway Services Environment Railway Services

Transcription

1 Contents. Overview p...business Activities, Revenues Composition p...route Summary p...group Companies p...jr Kyushu Group MediumTerm Business Plan 8. Operating Environment p...trends in Kyushu Area Population and Gross Production p...comparison to Alternative Modes of Transportation p...demand From Inbound Travel. Business Activities Railway Services p8...safety and Service Efforts p...kyushu Shinkansen and Limited Express Train Network p...transportation Service Improvement p...d&s (Design & Story) Trains and Cruise Train: Seven Stars in Kyushu p...new Shinkansen Lines NonRailway Services p...real Estate Businesses p... Businesses p8...future Development Plans Environment p...environmental Activities. Data p...employees p...capital Investment Amounts (NonConsolidated) p...financial Results p...revenues from Railway Transportation p...transportation Data p...financial Highlights (Consolidated)

2 . Overview. Operating Environment. Business. Data Business Activities (as of April, ) Revenues Composition (FY, consolidated) Date established...april, 8 Head office... Hakataekimae, Hakataku, Fukuoka Issued capital... billion Operating Revenues (from external customers) % Total number of issued shares...,, Number of subsidiaries and affiliates... Subsidiaries: (including consolidated subsidiaries) Affiliates: (including affiliate accounted for under the equity method) Transportation Railway Services Total route length...,. km ( train lines) No. of Stations... No. of Rolling Stocks..., No. of Passengers*... million Passengerkilometers*..., million Of which: Shinkansen...,8 million Bus Services Hydrofoil Ferry Services Rental Car Services *FY Kyushu Construction Osaka Tokyo Construction, rolling stock mechanical equipment engineering and electrical work, etc. Real Estate Real estate leasing (commercial facilities, office buildings, residential apartments, etc.), real estate sales (condominiums) Retail and Restaurants Retailing, restaurants, agriculture Hotel operation, golf course operation, tourist complex operation, advertising, leasing of movable properties, senior care services, etc. EBITDA* % % % % % 8. billion %. billion. billion % 8% % Total Assets (as of March, ) % % *EBITDA = Operating Income + Depreciation Costs (After elimination of intersegment transactions) % Transportation Construction Real Estate Retail and Restaurants % %

3 . Overview. Operating Environment. Business. Data Route Summary Conventional Lines Shinkansen Kyushu Shinkansen Ibusuki Makurazaki Line Uto Shimonoseki Wakamatsu Sasaguri Line Mojiko Kashii Line Kokura Moji Jono Keisen Saitozaki Gotoji Line ShinIizuka Meinohama Yoshizuka Chikuhi Line Hakata Umi NishiKaratsu Haruda TagawaGotoji ShinTosu Tosu Hitahikosan Line Karatsu Line Imari Kubota Sasebo Sasebo Line Saga Haiki Hizen Yamaguchi Omura Line Nagasaki Kyushu Shinkansen Sanyo Shinkansen Trunk Lines Local Lines Fukuoka City Subway Nagasaki Main Line Kagoshima Main Line Isahaya Kumamoto Misumi Yatsushiro ShinMinamata Sendai Makurazaki Misumi Line Kurume Yoake ChikugoFunagoya ShinOmuta Izumi Yoshimatsu Hayato Shin Tamana KagoshimaChuo Service suspended due to Kumamoto earthquakes Aso HigoOzu ShinYatsushiro Kagoshima Hisatsu Line Kitto Line Sanyo Main Line Kyudai Main Line Houhi Main Line Nippo Main Line Miyazaki MinamiMiyazaki Tayoshi Miyakonojo Nichinan Line Shibushi Oita Miyazaki Airport Line Miyazaki Airport Name of Line 8 Series Service Section: Fukuoka Metropolitan Area etc. Formation: to cars Maximum Speed: km/h Limited Express Sonic 88 Series Service Section: Hakata to Oita Formation: cars Maximum Speed: km/h Section Operating Kilometers No. of Stations Shinkansen Kyushu Shinkansen Hakata KagoshimaChuo 88. () Subtotal 88. () Sanyo Main Line Shimonoseki Moji. Kagoshima Main Line Mojiko Yatsushiro Sendai Kagoshima 8. Nippo Main Line Kokura Kagoshima. Trunk Lines Nagasaki Main Line Tosu Nagasaki 8.8 Sasebo Line HizenYamaguchi Sasebo 8.8 Chikuhi Line Meinohama Imari 8. 8 Sasaguri Line Keisen Yoshizuka. Miyazaki Airport Line Tayoshi Miyazaki Airport. Subtotal,. Chikuho Main Line Wakamatsu Haruda. Omura Line Haiki Isahaya. Kashii Line Saitozaki Umi. Karatsu Line Kubota NishiKaratsu. Hitahikosan Line Jono Yoake 8. Gotoji Line ShinIizuka TagawaGotoji. Local Lines Kyudai Main Line Kurume Oita. Houhi Main Line Kumamoto Oita 8. Hisatsu Line Yatsushiro Hayato. Misumi Line Uto Misumi. 8 Ibusuki Makurazaki Line KagoshimaChuo Makurazaki 8.8 Kitto Line Miyakonojo Yoshimatsu. Nichinan Line MinamiMiyazaki Shibushi 88. Subtotal. Total,. *The figure in parentheses for number of stations is for train stations that have both Shinkansen and conventional lines Double Track Ratio (%) CTC Ratio (%) Kyushu Shinkansen New 8 Series Service Section: Hakata to KagoshimaChuo Formation: cars Maximum Speed: km/h Sanyo / Kyushu Shinkansen N Series Service Section: KagoshimaChuo to ShinOsaka Formation: 8 cars Maximum Speed: km/h (km/h within Sanyo Shinkansen service area) 8 Electrification Ratio (%) 8 Max. Speed (km/h)

4 . Overview. Operating Environment. Business. Data Group Companies (as of April, ) Company Name JR Kyushu Maintenance Co., Ltd. Main Business Fields Rolling stock maintenance, stations, rolling stocks, building cleaning, management Issued Capital (Million yen) Proportion of Voting Rights (%). Transportation Construction Real Estate Transportation JR Kyushu Tetsudou Eigyou Co., Ltd. JR Kyushu Bus Company JR Kyushu Jet Ferry Inc. JR KyushuRentACar & Parking Co., Ltd. Contract of station duties Bus services Hydrofoil ferry services Rental car services, parking construction and management business.... JR Kyushu Linen Co., Ltd. Linen supply business. KYUTETSU CORPORATION Construction business. Construction KSK Ltd. Sanki Construction Co., Ltd. Kyushu Electric System Company JR Kyushu Consultants Company Rolling stocks mechanical equipment engineering Construction business Electrical work, communication system installation Construction consulting and design JR Kyushu Maintenance Co., Ltd. KYUTETSU CORPORATION JR Hakata City Co., Ltd. JR Kyushu Housing Company Construction and sale of custom home, renovation. JR Hakata City Co., Ltd. Management and operation of station buildings,. Kokura Terminal Building Inc. Management and operation of station buildings, hotel management. Real Estate Nagasaki Terminal Building Inc. JR Oita City, Inc. Kagoshima Terminal Building Inc. Management and operation of station buildings Management and operation of station buildings Management and operation of station buildings JR Kyushu Tetsudou Eigyou Co., Ltd. KSK Ltd. Nagasaki Terminal Building Inc. Retail and Restaurants JR Kyushu Building Management Co., Ltd. JR Kyushu Retail, Inc. JR KYUSHU DRUG ELEVEN CO., LTD. JR Kyushu Food Service Inc. JR Kyushu Fast Foods Inc. Inc Train D or JR Kyushu Farm Co., Ltd. Management and operation of station buildings and roadside stores Convenience store business, management of station stands Management of drugstores (Drug Eleven) Restaurants (bars, noodle restaurants etc.), sale of light meals and boxed lunches Restaurants (fast food) Bread making and selling Production, processing and sale of agricultural products Retail and Restaurants Sightseeing, Leisure Business Services JR Kyushu Huis Ten Bosch Hotel Co., Ltd. Hotel management (Hotel Okura JR Huis Ten Bosch) JR Kyushu Hotels Inc. Management of hotels and Japanese style inns JR Kyushu Resort Development Co., Ltd. Management of golf courses (JR Uchino Country Club) Oyama Yumekobo, Inc. Management of lodging and bathing facilities, MichinoEki (Roadside Rest Areas) JR Kyushu Trading Co., Ltd. Selling/buying of commodities, truck transportation business JR Kyushu Financial Management Company Movable property leasing JR Kyushu Agency Co., Ltd. Advertising JR Kyushu Secom Inc. * General security JR Kyushu Life Service Co., Ltd. Dormitory management, food service, contract of cleaning service Provision of communication and information processing service, contract JR Kyushu System Solutions Inc. of salary and welfare service JR Kyushu Senior Life Support, Inc. Management of private residential care homes *Equity method affiliate Business Services Sightseeing, Leisure JR Kyushu Food Service Inc. JR Kyushu Retail, Inc. JR Kyushu Huis Ten Bosch Hotel Co., Ltd. JR Kyushu Resort Development Co., Ltd. JR Kyushu Senior Life Support, Inc. JR Kyushu Trading Co., Ltd.

5 . Overview. Operating Environment. Business. Data JR Kyushu Group MediumTerm Business Plan 8 What the JR Kyushu Group Aims To Be A Corporate Group That Invigorates Kyushu, Japan, and Greater Asia with Safety and Service as Its Foundation Conduct of the JR Kyushu Group Integrity Growth and Evolution Local Community Invigoration Integrity Integrity acts as the DNA of the JR Kyushu Group, providing a code of conduct to be passed down from generation to generation. In consideration to all those involved with the JR Kyushu Group, we make concerted efforts to conduct ourselves in a fair and just manner without engaging in any type of dishonest behavior. With passion and courage, the JR Kyushu Group will realize growth and evolution. The JR Kyushu Group will continue to grow and evolve together with its employees by forging a corporate culture that celebrates new challenges and will expand its customer base. Local Community Invigoration The JR Kyushu Group cannot invigorate itself if it does not first invigorate the communities in which it operates. Accordingly, the Group will invigorate local communities by building better transportation networks and towns and creating enriched lifestyles for community members. Position of the MediumTerm Business Plan 8 Aiming to be a kind and robust corporate group involved in comprehensive citybuilding (Community Enhancement and Vitalization) Further accelerate the creation of a strong management foundation that enables longterm, continuous business activities that contribute to local development. Basic Policies of the MediumTerm Business Plan 8 While taking into consideration the wildly changing business environment, we will reinforce the four pillars that support our entire business and actively move forward with three key strategies. Through these efforts, we will continue to show kindness to all those involved in the JR Kyushu Group and maintain our robust stature. Business Environment Progression of the declining and aging population Changes in the market environment Demands for safety Development of information technology Heightened importance of CSR Three Key Strategies Actively participate in citybuilding in the Kyushu area Safety Build robust railways that provide the foundation for all our businesses Service Growth and Evolution Take on the challenges of new businesses and expanding outside the Kyushu area Human Resources Design and Story Four Pillars That Support All Our Businesses Strong corporate group that shows kindness to all people Customers Business partners and local communities Employees Shareholders Target Management Figures Target consolidated figures (FY) Operating Revenues: billion EBITDA: 8 billion ( ) Billions of yen Operating Revenues Revenue from railway traffic Revenue from sources other than railway traffic...8.%.% Over % FY (Target) Revenues from sources other than railway traffic revenues account for over % of total operating revenues. Reference: Capital Investments Billions ( of yen ) billion Growth investments 8 billion Maintenance, renewals, and other investments Investments to improve safety in the railway services billion Total Amounts for FY FY Reference Capital investments: billion (total of FY FY) Billions ( of yen ) Major breakdown: Investments to improve safety in the railway business: billion Growth investments: 8 billion. EBITDA (Target) In order to become the type of cooperate group we aim for, we will allocate cash flows primarily to safety investments in the railway business and growth investments. In doing so, we hope to realize the targets of the MediumTerm Business Plan. Furthermore, we aim to pay out dividends in a stable manner. FY Note: EBITDA = Operating income + Depreciation Note: Targets for FY account for the effects of prepaid expenses made at the end of FY for stock loan fees for the Kyushu Shinkansen.

6 . Overview. Operating Environment. Business. Data Trends in Kyushu Area Population and Gross Production Nagasaki City Fukuoka City, Saga City Kitakyushu City Kumamoto City Oita City Fukuoka Pref. Population Change,,,8,8,8,, Oita Pref. Population Change,,,,,, Saga Pref. Population Change Miyazaki Pref. Population Change,,,, Population Share of Major Cities in Kyushu Ten thousand.%.8%.% 8.%.%.%.% % Year.%.%.% Population of Kyushu's 8 major cities Percentage of whole of Kyushu's population Source: Internal Migration in Japan Derived from the Basic Resident Registers, Ministry of Internal Affairs and Communications Kumamoto Pref. Population Change,8 Kagoshima Pref. Population Change, Miyazaki City,8,,,.. 8.,8,88,,.. 8. Kyushu Regional Gross Product (nominal GDP)* and JR Kyushu Consolidated Operating Revenues FY Kyushu Shinkansen Sanyo Shinkansen Trunk Lines Local Lines Fukuoka City Subway Kagoshima City National Kyushu Population Change Population Change 8,,,,, 8.,.,.,.,8.,., 88., 8., 8., 8. National Ratio.%.%.%.%.%.%.%,8, (Unit) Population: thousands (Change) Indexes based on as (National ratio) Percentage of whole population Source: Population Projection by Prefectures (March ), National Institute of Population and Social Security Research Population Census and Population Census, Ministry of Internal Affairs and Communications ,8, Nagasaki Pref. Population Change,,,,,8,8, Kyushu Regional Gross Product (trillion yen) 8,. March Opening of JR Hakata City JR Kyushu Consolidated Operating Revenues (hundred million yen),8,8,8,,..... March Opening of the entire Kyushu Shinkansen route Kyushu nominal GDP April Opening of JR Oita City JR Kyushu Consolidated Operating Revenues Source: Report on Prefectural Accounts and Report on National Accounts, Cabinet Office *The gross product of Kyushu for the years ending March, and March, was calculated by multiplying the proportion of Kyushu's gross product for the year ending March, (.%) by each of Japan's nominal GDP for the years ending March, and March,, according to the Report on Prefectural Accounts and Report on National Accounts, Cabinet Office.,,

7 . Overview. Operating Environment. Business. Data Comparison to Alternative Modes of Transportation Kokura Kitakyushu Airport Hakata Kumamoto Nagasaki ShinOsaka Fukuoka Airport No. Required Time Fare (yen) No. Required Time Fare (yen) NishiKyushu Expwy Hakata Oita Expwy Oita Airport JR :, Bus :, JR :, Airplane (Itami Airport) :, Sasebo Oita Hakata KagoshimaChuo No. Required Time Fare (yen) Kumamoto ShinOsaka No. Required Time Fare (yen) JR :, Bus :,8 JR :,8 Airplane (Itami Airport) : 8, Nagasaki Airport Saga Airport *The number of buses includes overnight buses Nagasaki Kumamoto Nagasaki Expwy Kumamoto Airport HigashiKyushu Expwy Hakata Nagasaki No. Required Time Fare (yen) JR :, Bus :,8 Oita ShinOsaka No. Required Time Fare (yen) JR :, Airplane (Itami Airport) : 8, Kyushu Expwy Hakata Sasebo Kagoshima ShinOsaka No. Required Time Fare (yen) JR :, No. Required Time Fare (yen) JR :, Bus :,8 Airplane (Itami Airport) :, Miyazaki Expwy Kagoshima Airport Miyazaki Hakata Beppu, Oita No. Required Time Fare (yen) Miyazaki Airport JR :, Bus :8, Kyushu Shinkansen Sanyo Shinkansen Trunk Lines Local Lines Fukuoka City Subway Expressway in operation (including highstandard highway) Kagoshima Chuo Hakata Miyazaki No. Required Time Fare (yen) JR :, JR 8 :,8 JR + Bus Bus : :,, *The upper row of JR is via Kokura. The lower row is via KagoshimaChuo. *JR+bus is via B&S Miyazaki. Notes:. Number of buses or trains (weekday total of both directions), required time (fastest time) and fare are current as of April,. Time required for flights is estimated. In addition to transfer time between city center and airport, minutes time is added for transfer from airport limousine bus or nearest train station to the boarding gate, and minutes is added for waiting time at boarding gate. Per coupontype ticket for JR train or bus fare within Kyushu. For calculation of the fare to ShinOsaka from each city in Kyushu, ekippu was used for JR trains, and a Tokubin or Tokuwari advance purchase discounted fare was used for airplanes with additional fares for city centerairport transportation

8 . Overview. Operating Environment. Business. Data Demand from Inbound Travel Flight Times from Major Cities in Asia (Shortest times to fly to Fukuoka based on airline schedules between Feb. and Mar. ) Beijing (:) Dalian (:) Qingdao (:) Seoul (:) Busan (:) Sapporo (:) Active Cooperation with Firms Outside Japan Sales of Kyushu Rail Pass on HK Express (a low cost carrier) flights Agreement signed with multiple travel agencies outside Japan to sell Seven Stars in Kyushu tickets Nanjing (:) Tokyo (:) Bangkok (:) Chengdu (:) Hanoi (:) Shanghai Wuhan (:) (:) Hong Kong (:) Manila (:) Taipei (:) Honolulu (:) Guam (:) Sales Promotions of JR Kyushu Rail Pass First yeartoyear decline, due to Kumamoto earthquakes and the elimination or reduction of international flights by LCCs Establishment of new JR Southern Kyushu Rail Pass Sales promotions through overseas travel agencies, airline tieups, travel fair exhibitions, etc. Ho Chi Minh (:) Singapore (:) Source: Summary of Kyushu Economy, Kyushu Bureau of Economy, Trade and Industry Number of International Flight Routes with Arrival or Departure in Kyushu Annual Number of Foreign Visitors to Kyushu. Record High Set in Flights (, people) (, passes) Consecutive Years Annual JR Kyushu Rail Pass Sales Year 8 Year Source: Kyushu Economic Internationalization Data, Kyushu Bureau of Economy, Trade and Industry Source: Annual Number of Foreign Visitors to Kyushu, Kyushu District Transport Bureau

9 . Overview. Operating Environment. Business Activities (Railway Services). Data Safety and Service Efforts Safety Efforts Installation of New Automatic Train Stop Device ATSDK In order to further improve the level of safety on conventional lines, we are currently equipping our systems with a newly developed automatic train stop device, ATSDK. In addition to stopsignals on traffic lights, this new ATS enhances the safe operation of JR trains. When the train is likely to travel over the speed limit in curves and junctions, this ATS stops the train before the train enters such parts. Currently, we have equipped all trains with the system, and established the ground equipment on all of the line sections where the government set a deadline to do so. We will systematically continue to install the equipment on other line sections. Automatic monitoring of speed from database information Train database Train speed Emergency brake An emergency brake is triggered to automatically stop the train when it becomes likely that the train will go over the speed limit Speed limit Earthquake Disaster Prevention System Kyushu Shinkansen trains have a system in place that cuts power transmission and activates an emergency brake when an earthquake is detected. Moreover, seismographs installed in locations along railway lines and six locations along the coast detect Pwaves (primary waves) and are linked with emergency earthquake warnings of the Japan Meteorological Agency (JMA), allowing trains to stop ahead of time. Earthquake Disaster Prevention System for Shinkansen Using seismographs in 8 locations within Kyushu (managed by JR Kyushu) Coastal seismographs: locations (equipped with Pwave detectors) Cuts power/activates emergency brake Coastal seismographs: locations (equipped with Pwave detectors) Emergency Earthquake Warning Using information from seismographs in approximately locations throughout Japan (managed by the JMA and the NIED*) Emergency earthquake warning Seismograph (JMA and the NIED*) Earthquake Safety Measures on Platforms In order to prevent occurrence of accidents on platforms in which passengers are hit by trains or fall onto the tracks, we are expanding our use of tactile pavings with a line to indicate the safe side of platform to safely guide the visually impaired, and SOS emergency brake buttons to use in the event of emergencies, and have installed platform screen doors on all Kyushu Shinkansen platforms. Occurrence of Accidents on Railways No. Train accident Railroad crossing accident 8 Accident causing injury or death FY Railway accidents Platform screen doors on Shinkansen platforms Tactile pavings with a line to indicate the safe side of platform SOS emergency brake buttons Train accident: Train collisions, derailments, fires Railroad crossing accident: Collisions or contact involving trains or cars with people or vehicles at crossings Accident causing injury or death: Injuries or deaths due to operation of trains or cars Service Efforts Barrier Free Implementation Status Stations with more than passengers per day Stations with between and passengers per day Area No. of No. of No. of No. of Complete stations Scheduled stations Complete stations Scheduled stations Meinohama, ChikuzenMaebaru, Hakozaki, Fukkodaimae, Yoshizuka, Hakata, Chihaya, Fukuoka Kashii, KyudaiGakkentoshi, Susenji, Wajiro Kyusandaimae, Imajuku, Takeshita, Sasabaru, MinamiFukuoka, Shimoyamato Mojiko, Kokura, Tobata, Space World, NishiKokura, Kurosaki, Moji, Kitakyushu ShimoSone, Yahata, Jono, Minami Orio, Abeyamakoen Jinnoharu, Kusami Kokura, Kyushukodaimae, Edamitsu Yukuhashi, ShinIizuka, Togo, Chojabaru, Hainuzuka, Kasuga, Koga, Ebitsu, Umi, HigashiFukuma, Akama, Ongagawa, Sasaguri, Onojo, Tenpaizan, Keisen, Mizuki, Areas Kurume, Futsukaichi, Fukuma, Kanda, Nakama, Unoshima, Obase Nishikodaimae Kyoikudaimae, Mizumaki Shinguchuo, Chidori, Omuta, Haruda, Hatae, Nogata, Yusu Tosu, Kiyama, Saga Karatsu, Takeoonsen, Saga Pref. ShinTosu Kanzaki Nagasaki Pref. Nagasaki, Sasebo, Isahaya Urakami Huis Ten Bosch, Kikitsu, Nagayo, Haiki, Omura Kumamoto Suizenji, Kumamoto, Tamana, Hikarinomori, KamiKumamoto, Musashizuka, Yatsushiro, Uto, ShinYatsushiro, Pref. ShinSuizenji, HigoOzu Matsubase Tokaigakuenmae Oita Pref. Beppu, Nakatsu, Oita Kamegawa, Tsurusaki, Ozai, Oitadaigakumae Beppudaigaku, Takajo Miyazaki Pref. Miyazaki MinamiMiyazaki Kagoshima Hayato, Kagoshima, KagoshimaChuo, Sendai, Taniyama Kokubu Pref. Sakanoue, Ijuin KamiIjuin, Kajiki Total Fukuoka Pref. Transformer Relay server Receiving 8 8 server *NIED: National Research Institute for Earth Science and Disaster Resilience *Number of passengers from FY, figures as of March, JMA owned: approx. NIEDowned: approx. 8 JMA data Elevator at Hakata Station Multipurpose Restroom in N Shinkansen 8

10 . Overview. Business Activities (Railway Services). Operating Environment Kyushu Shinkansen and Limited Express Train Network. Data Chikuho Main Line/Sasaguri Line (Fukuhoku Yutaka Line) Kyushu Shinkansen/Sanyo Shinkansen Mojiko Keisen Shinkansen Mizuho: round trips/day between ShinOsaka and KagoshimaChuo Shinkansen Sakura: round trips/day between ShinOsaka and KagoshimaChuo trip/day from Kumamoto to ShinOsaka round trip/day between Hiroshima and KagoshimaChuo trip/day from ShinShimonoseki to KagoshimaChuo 8 round trips/day between Hakata and KagoshimaChuo Shinkansen Tsubame: trips/day from KagoshimaChuo to Hakata trips/day ( on holidays) from Hakata to KagoshimaChuo trips/day from Kumamoto to Hakata trips/day ( on holidays) from Hakata to Kumamoto round trip/day between Hakata and ChikugoFunagoya trip/day from KagoshimaChuo to Kumamoto trips/day from Kumamoto to KagoshimaChuo round trip/day between Sendai and KagoshimaChuo Amount of time shortened by the network (fastest travel time) Hakata KagoshimaChuo: : :* (shortened by :) Hakata Kumamoto: : :* (shortened by :) Limited Express Kaio: round trips/day between Nogata, Keisen and Hakata Kokura Kyudai Main Line (Yufu Kogen Line) Nogata Hakata Nakatsu Tosu ShinTosu HizenYamaguchi Sasebo Saga Haiki HizenKashima Huis Ten Bosch Omuta Kurume Hita Yufuin ShinOmuta Service suspended due to Kumamoto earthquakes ShinTamana Nagasu Aso HigoOzu Kumamoto Isahaya Limited Express Yufu: round trips/day* between Hakata, Yufuin and Oita (Beppu) Oita Beppu ChikugoFunagoya Nippo Main Line/MiyazakiAirport Line Saiki Nagasaki Nobeoka ShinYatsushiro Sasebo Line/Omura Line Izumi round trips/day between Hakata, Oita and Saiki (in which is with Shiroi Sonic) round trip/day between Hakata and Yanagigaura ShinMinamata Limited Express Midori: round trips/day between Hakata and Sasebo Limited Express Sonic: round trips/day between Hakata and Oita (in which are with Shiroi Sonic/ on Saturdays and holidays) Amount of time shortened by the network (fastest travel time) Hakata Oita: : :* (shortened by :) Miyazaki MinamiMiyazaki Sendai Hayato Miyazaki Airport Miyakonojo Limited Express Huis Ten Bosch: round trips/day (8 during peak seasons) between Hakata and Huis Ten Bosch KagoshimaChuo Shibushi Makurazaki Nagasaki Main Line Limited Express Nichirin, Nichirin Seagaia: trips/day from Miyazaki Airport to Hakata trip/day from Hakata to Miyazaki Airport trip/day from Kokura to Miyazaki Airport round trips/day between Oita and Miyazaki (MinamiMiyazaki, Miyazaki Airport) round trip/day between Nakatsu and Oita Kagoshima Main Line Limited Express Kamome: round trips/day between Hakata and Nagasaki (in which are with Shiroi Kamome) Commuter limited express: trips/day from Saga to Hakata trips/day from Hakata to Saga ( on Saturdays and holidays) trip/day from HizenKashima to Hakata trip/weekday from Nagasaki to Isahaya Amount of time shortened by the network (fastest travel time) Hakata Nagasaki: : :* (shortened by :) B&S Miyazaki: round trips/day between ShinYatsushiro and Miyazaki Limited Express Ariake: trips/day from Nagasu to Hakata (Yoshizuka) trips/day from Hakata (Yoshizuka) to Nagasu Limited Express Kirameki: trips/day from Hakata to (Mojiko) Kokura trips/day ( on Saturdays and holidays) from (Mojiko) Kokura to Hakata Limited Express Hyuga: round trips/day between Nobeoka and Miyazaki (MinamiMiyazaki, Miyazaki Airport) Limited Express Kirishima: round trips/day between Miyazaki and KagoshimaChuo round trip/day between Miyazaki and Miyakonojo (NishiMiyakonojo) round trip/day between Kokubu and KagoshimaChuo *: Time shortened (fastest travel time) is a comparison from March to April 8 *: Operating sections and number of trains in operation have been changed due to Kumamoto earthquakes (as of August )

11 . Overview. Operating Environment. Business Activities (Railway Services). Data Transportation Service Improvement Transportation Service Improvements in Metropolitan Areas Kitakyushu Metropolitan Area Number of Trains in Service (As of April ) Fukuoka Metropolitan Area No. of Trains 8 Kagoshima Fukuma Hakata (8%) Main Line Hakata Futsukaichi 8 8 (%) Chikuhi Line Kashii Line Meinohama ChikuzenMaebaru Gannosu Kashii Kashii Umi (%) 8 (%) (%) Sasaguri Line Saga Metropolitan Area Nagasaki Main Line Karatsu Line Yoshizuka Sasaguri Shimonoseki (%) Wakamatsu Orio Moji Fukuma Kokura Gannosu Sasaguri Nogata Kanda (%) Yoshizuka Meinohama Hakata Umi (%) Futsukaichi Chikuzen TagawaGotoji (%) Maebaru Tosu Kamegawa No. of Trains 8 Nagasaki Metropolitan Area Nagasaki Main Line Omura Line Tosu Saga Saga HizenYamaguchi Taku Saga Isahaya Nagasaki Nagayo Nagasaki Isahaya Takematsu Kagoshima Metropolitan Area Kagoshima Ijuin KagoshimaChuo Main Line Nippo Hayato KagoshimaChuo Main Line Ibusuki Makurazaki Line KagoshimaChuo Goino Takematsu Nagayo Nagasaki No. of Trains 8 (%) (%) 8 8 (%) Taku No. of Trains 8 8 (%) (%) (%) Isahaya Saga Hizen Yamaguchi Ijuin Kumamoto Misumi Yatsushiro Goino Makurazaki Tamana Hayato KagoshimaChuo Hikarinomori BungoKokubu Oita Sadowara Miyazaki Tano Miyazaki Airport Aoshima Sanyo Main Line Nippo Main Line Chikuho Main Line Hitahikosan Line No. of Trains Shimonoseki Moji 8 (%) Kokura Kanda Wakamatsu Orio Orio Nogata Kokura TagawaGotoji 8 8 (%) 8 (%) (%) (8%) Oita Metropolitan Area Ozai Nakahanda Kumamoto Metropolitan Area No. of Trains 8 Tamana Kumamoto Kagoshima 8 (%) Main Line Kumamoto Yatsushiro 88 (%) Kumamoto Hikarinomori (%) Kumamoto Misumi (%) Houhi Main Line Misumi Line Nippo Main Line Kyudai Main Line Houhi Main Line No. of Trains 8 (%) (%) (%) 8 (%) Miyazaki Metropolitan Area No. of Trains 8 Nippo Sadowara Miyazaki (%) Main Line Miyazaki Tano (%) Miyazaki Aoshima (%) Nichinan Line Kamegawa Oita Oita Ozai Oita BungoKokubu Oita Nakahanda trains/day, : Index (8=) ,,,,,8,8,,,8,,,,,,8,,8 8,,,8,,,, 8 8,,,,8, ,,,,,8,, 8,,,8,,,,,,,,,8,,88,,8,,,,8,,,,,,,8,,,, (FY) Number of Rolling Stocks by Type (as of March, ) Type SL Steam locomotive EL Electric locomotive DL Internalcombustion locomotive Number of New Rolling Stocks Introduced TEC Shinkansen EC Electric railcar Local Limited express Shinkansen DC Internalcombustion Passenger PC railcars cars No. of rolling stocks, 8, 8 * Series FY Total Sakura, 8 ( Tsubame) Mizuho, Sakura, N ( Tsubame ) (Kamome, Sonic) * 88 (Sonic) Kamome, Midori, 8 ( Nichirin, Ariake ) Kamome, 8 ( Ten ) 8 * Midori, Huis Bosch, Nichirin BEC * * 8 8 no Yufuin KiHa ( Mori ) KiHa8 (Asoboy!) KiHa/ KiHa 8 * KiHa DF Seven Stars ( in Kyushu ) Total , Notes: *: Decommissioned cars among these: one KiHa (in FY), eight 8s and two 8s(FY), one KiHa and two 8s(FY), three 88s(FY), and four 8s(FY) *: In FY, eight 8s (manufactured in ) were purchased from Holding Company for Houhi Main Line Total

12 . Overview. Operating Environment. Business Activities (Railway Services). Data D&S (Design & Story) Trains and Cruise Train: Seven Stars in Kyushu D&S Trains: Those with a special design and a background Story in the area in which they operate Seven Stars in Kyushu Limited Express Yufuin no Mori Operation commenced on March, 8 Route: Hakata Yufuin & Beppu* Limited Express ATrain Operation commenced on October 8, Route: Kumamoto Misumi Sasebo Nagasaki Hakata Kumamoto Misumi Hita Aso Miyaji Beppu Oita JR Kyushu Sweet Train Aru Ressha Operation commenced on August 8. Route: Oita Hita, Sasebo Nagasaki Kyushu Odan Tokkyu Operation commenced on March, Route: Beppu Kumamoto* Japan's first Cruise Train boasting immense popularity times over reservation limit (for the period between October and February 8) Driving awareness about Kyushu and greatly contributing to Kyushu's increase in tourists Driving awareness about Kyushu's tourist trains leading to an increase in use of other local trains Yatsushiro ShinYatsushiro Hitoyoshi Limited Express SL Hitoyoshi Operation commenced on April, Route: Kumamoto Hitoyoshi Yoshimatsu Miyazaki Limited Express Asoboy! Operation commenced on June, Route: Kumamoto Miyaji* KagoshimaChuo Nango Ibusuki Limited Express Kawasemi Yamasemi Operation commenced on March, Route: Kumamoto Hitoyoshi Limited Express UmisachiYamasachi Operation commenced on October, Route: Miyazaki Nango Limited Express Isaburo / Shinpei Operation commenced on March, Route: Kumamoto Hitoyoshi Yoshimatsu Limited Express Hayato no Kaze Operation commenced on March, Route: KagoshimaChuo Yoshimatsu Limited Express Ibusuki no Tamatebako Operation commenced on March, Route: KagoshimaChuo Ibusuki * Operating sections and number of trains in operation have been changed due to Kumamoto earthquakes (as of August )

13 . Overview. Operating Environment. Business Activities (Railway Services). Data New Shinkansen Lines The Kyushu Shinkansen is being built by JRTT (the Japan Railway Construction, Transport and Technology Agency), as a public project. As a Type I Railway Business Operator, JR Kyushu is renting and managing the Shinkansen facilities. Section approved for construction Section: Takeoonsen Nagasaki Length of section: Approx. km Rail specification: Standard gauge Approximate total cost:. billion Scheduled completion: About years from the start of construction between Isahaya and Nagasaki to connect Takeoonsen and Nagasaki Approved work: Site development, civil engineering and construction of structures; construction of tracks, electrical facilities and other equipment required to start operation Section approved for construction approx. km Overview of Kyushu Shinkansen Nagasaki Route Nagasaki Hakata ShinTosu Saga Takeoonsen Hizen Yamaguchi Ureshino Onsen (provisional) ShinOmura (provisional) Isahaya Hakata General Rolling Stock Center Kagoshima Route Kurume ChikugoFunagoya ShinOmuta ShinTamana km Kokura Kumamoto Kumamoto General Car Maintenance Depot March 8: Construction started using narrow gauge (Funagoya ShinYatsushiro) April : Conversion to standard gauge March, : Operation commenced Construction cost: 8 billion (sum approved on Aug., ) Fastest Travel Time Comparison Before and After Opening of Kagoshima Route Before opening of first section (to March, ) Before opening of the entire route (from March, ) After opening of the entire route (as of March ) Hakata Kumamoto KagoshimaChuo hr min hr min min hr min min min hr min hr min : : : : : hr min Nagasaki Nagasaki Pref. Isahaya Fukuoka Pref. Use of conventional lines Saga Pref. ShinTosu Hizen Switch to Yamaguchi Saga oppositetracks Takeoonsen HizenKashima Hakata Tosu Under construction using standard gauge ShinYatsushiro Yatsushiro Izumi Sendai KagoshimaChuo ShinMinamata km Sept. : Construction started using narrow gauge April : Conversion to standard gauge March, : Operation commenced Construction cost: billion Kagoshima route ShinYatsushiro KagoshimaChuo Hakata ShinYatsushiro Nagasaki route Takeoonsen Nagasaki Sanyo Shinkansen KagoshimaChuo ShinOsaka Kumamoto ShinOsaka hr min hr min hr min : : : : : : Before opening of the entire route (from March, ) After opening of the entire route (as of March ) Note: Prior to the opening of the entire route, the fastest travel time included a transfer using the Sanyo Shinkansen, according to the March edition time table. Note: The time required after the opening of the entire route is the fastest time using tracksharing of Sanyo and Kyushu Shinkansen including the time for stop at Hakata. Conventional Lines Hisatsu Orange Railway hr min

14 . Overview. Operating Environment. Business Activities (NonRailway Services ). Data Real Estate Businesses Major Station Buildings Station Buildings Retail Leasing and Office Leasing Karatsu Chihaya Yoshizuka Meinohama Hakata MinamiFukuoka Kashii Moji Kokura Tobata Yukuhashi Tokyo metropolitan area Yamanote Line Shinjuku Tokyo Shibuya Building name Date opened Floor area No. of visitors Tenant sales (,) ( million yen) (m ) FY FY Amu Plaza Kokura March, 8 8,, Amu Plaza Nagasaki September, 8,, 8 Amu Plaza Kagoshima September,,, JR Hakata City/Amu Plaza Hakata March,, *incl. Hakata Hankyu,, JR Oita City/Amu Plaza Oita April,,, Sasebo Saga Kurume Beppu Oita Nagasaki KamiKumamoto Suizenji Kumamoto Amu Plaza Kokura Amu Plaza Nagasaki Amu Plaza Kagoshima Miyazaki KagoshimaChuo JR Hakata City/Amu Plaza Hakata JR Oita City/Amu Plaza Oita Overview of Office Leasing Station building (including Ekimachi Chome) Office leasing As of July Name Acquired Floor area (m ) Akasaka Sanno Center Building March,, Kojimachi Nibancho Center Building March,, JRJP Hakata Building April,, Hirakawacho Center Building September, 8,

15 . Overview. Operating Environment. Business Activities (NonRailway Services ). Data Real Estate Businesses Residential Buildings Fukuoka City, enlarged Kashii Apartment Leasing Number of Completed Units and Buildings (Cumulative) Sasebo Meinohama Saga Hakata Kokura Oita Meinohama Hakata units,, 8 8,,, buildings 8 Nagasaki Kumamoto unit building Condominium Sales Number of Delivered Units (Cumulative) Miyazaki units,,,,8, KagoshimaChuo,,,,8, * including units renovated for resale Apartment leasing Condominium sales* *Listings with over units (including joint venture projects) Listings delivered or opened as of July

16 . Overview. Operating Environment. Business Activities (NonRailway Services ). Data Businesses Number of Guest Rooms at JR Kyushu Group Hotels (Cumulative) Hotel Business Tokyo metropolitan area rooms, Hakata Kokura Shinjuku Shibuya Yamanote Line Tokyo,,,,,,,,8,,, Sasebo Beppu Saga Hita Huis Ten Bosch Oita Number of Guest Rooms/Opening Nagasaki 8 Kumamoto Hotel name Hotel Okura JR Huis Ten Bosch Number of rooms Year of Opening June, Rebranded and reopened on April, Station Hotel Kokura April, 8 JR Kyushu Hotel Blossom Fukuoka June, Rebranded and reopened on July, JR Kyushu Hotel Nagasaki September, JR Kyushu Hotel Kagoshima South wing: Aug, /North wing: Mar, Miyazaki Okuhita Onsen Umehibiki Hana Beppu Ryokan () * November, Scheduled to be rebranded and reopened in Nov, September 8, Rebranded and reopened on April, KagoshimaChuo Naha 8 JR Kyushu Hotel Kumamoto JR Hotel Yakushima March, October, JR Kyushu Hotel Kokura 8 September, JR Kyushu Hotel Miyazaki November, JR Kyushu Hotel Blossom Hakata Chuo April 8, Yakushima JR Kyushu Hotel Blossom Shinjuku August 8, Hotel As of July JR Kyushu Hotel Blossom Oita JR Kyushu Hotel Blossom Naha *Number of rooms when reopened 8 April, June,

17 . Overview. Operating Environment. Business Activities (NonRailway Services ). Data Businesses SUGOCA Common ICcard Ticketing Service Retail and Restaurant Business Number of Shops in Retail and Restaurant Segment (Cumulative) SUGOCA Card Coverage Area Shimonoseki Wakamatsu Mojiko Kokura NishiKaratsu Saitozaki Hakata Meinohama Umi Keisen Nakatsu Fukuoka/Saga/Oita/Kumamoto Areas 8 Saga Kurume Zendoji Oita Kozaki Takematsu Arao Mukainoharu Nakahanda Nagasaki Isahaya HigoOzu Kumamoto Nagasaki Area Yatsushiro JR KYUPO Service began on July, Sadowara Tano Tayoshi Kagoshima Area Sendai Kokubu Miyazaki Airport Miyazaki Area KagoshimaChuo Kiire Note: Card cannot be used in areas that fall in between the Fukuoka/Saga/Oita/Kumamoto Areas, Nagasaki Area, Kagoshima Area, and Miyazaki Area. Note: SUGOCA card cannot be used for the Kyushu Shinkansen. Drug Eleven and Family Mart shared store Number of Vendors Where Electronic Money is Accepted and Number of SUGOCA Cards Issued vendors, (thousand cards),,,,,, Yaoya Kyuchan greengrocer store (Chihaya store),, 8,,,,,,,,, 8,8,,, Number of vendors Number of cards issued Train D or bakery (Hakata store)

18 . Overview. Operating Environment. Business Activities (NonRailway Services ). Data Businesses Izumo Fukuoka Izumo Izumo Dream Hakata Bus Services Hydrofoil Ferry Services Hakata Fukuma Nogata Nogata Iizuka Yamaguchi Fukuoka Shunan Shunan Liner Fukuoka Yamaguchi Fukuoka Yamaguchi Liner Kudamatsu Hiroshima Hiroshima Kagoshima Kagoshima Dream Hiroshima Fukuyama Fukuoka Hiroshima Fukuoka Hiroshima/Fukuyama Kofuku Liner Busan Tsushima (Hidakatsu) Tsushima (Hidakatsu) Busan: Approx. km <Seaway> Hydrofoil ferry BEETLE ( seats): hr min travel, round trips/day Fukuoka Busan: Approx. km <Seaway> Hydrofoil ferry BEETLE ( seats): hr min travel, round trips/day Fukuoka (Hakata) Port terminal Fukuoka: Hakata Port International Terminal Tsushima: Hidakatsu Port Busan: Busan Port International Passenger Terminal No. of services Fukuoka Busan: round trips/day Tsushima Busan: round trips/day Fukuoka Ureshino Sonogi Fukuoka Kagoshima Sakurajima Takeo Ureshino Fukuoka Miyazaki Phoenix Miyazaki Oita Pacific Liner Beppu Oita Number of Services by Route (as of April, ) No. of services Route name (Relisted) Total JR Kyushu Bus Restaurant Business in Shanghai ShinYatsushiro Miyanojo Hokusatsu Kagoshima KagoshimaChuo ShinYatsushiro Miyazaki B&S Miyazaki Nobeoka Miyazaki Miyazaki Nobeoka Himuka Local bus Expressway bus Nogata Ureshino Hokusatsu Subtotal Fukuoka Miyazaki Fukuoka Kagoshima (daytime) Fukuoka Kagoshima (overnight) Fukuoka Yamaguchi Fukuoka Hiroshima (daytime) Fukuoka Hiroshima/Fukuyama (overnight) Fukuoka Shunan Fukuoka Izumo (overnight) ShinYatsushiro Miyazaki Line Miyazaki Nobeoka Miyazaki Oita Hiroshima Kagoshima (overnight) * 8 8 * Restaurant name Opening Floor area Capacity AkasakaUmaya Flagship in Shanghai Jing'an Feb, m seats AkasakaUmaya Shanghai Middle Huaihai Road Feb, m seats UmayaNoodle Loushanguan Road Feb 8, m Office building food court AkasakaUmaya Shanghai World Financial Center May, 8 m seats Subtotal Total *: including scheduled sightseeing buses *: seasonal services AkasakaUmaya Flagship in Shanghai Jing'an AkasakaUmaya Shanghai Middle Huaihai Road UmayaNoodle Loushanguan Road AkasakaUmaya Shanghai World Financial Center

19 . Overview. Operating Environment. Business Activities (NonRailway Services ). Data Future Development Plans Ropponmatsu Development Project Kumamoto Station Area Development Shimbashi Chome Hotel Project Grand Precia Shibaura East Block Complex name: Ropponmatsu, SJR Ropponmatsu Location: and Ropponmatsu, Chuoku, Fukuoka Site area: Approx., m Total floor area: Approx., m Structure: Ropponmatsu Steel aboveground; belowground SJR Ropponmatsu Reinforced concrete aboveground Parking Steel aboveground Uses: Commercial facilities, science museum, graduate school, residencestyle private retirement home, parking lot Schedule: October Start of construction September Scheduled opening Location: Kasuga, Nishiku, Kumamoto Site area: Approx., m (including area under elevated tracks) Total floor area: Approx., m Uses: Station Bldg. (commercial facilities, hotel, etc.) Residence (condominiums, etc.) Parking lot, etc. Schedule: End of FY: Completion of Kumamoto Station (Kagoshima Main Line) and switchover to the elevated railway (Houhi Main Line) (provisional) Spring start of construction (provisional) Hotel name: TBA Location: Shimbashi, Minatoku, Tokyo Total floor area: Approx., m Floors: 8 No. of guest rooms: (provisional) Scheduled opening: Autumn (provisional) Location: Shibaura, Minatoku, Tokyo Site area: Approx., m Total floor area: Approx., m Floors: (F: shops, F: apartment leasing) No. of dwelling units: Scheduled opening: Autumn 8 (provisional) West Block Kumamoto District Government Building Complex name: Location: MJR Ropponmatsu Ropponmatsu, Chuoku, Fukuoka *Artist's rendering *Artist's rendering Site area: Approx., m Total floor area: Approx., m *Artist's rendering Structure: Reinforced concrete structure, partly steel structure Condominiums Floors aboveground Commercial facilities Ground floor No. of dwelling units: Schedule: March Start of construction July Start of sales March Unit transfer SJR Ropponmatsu Ropponmatsu MJR Ropponmatsu F: Residencestyle private retirement home F: Parking lot F: Fukuoka City Science Museum F: Kyushu University Law School F: Condominiums Investment type Condominiums Name MJR KyudaiGakkentoshi Residence MJR Akasaka Tower MJR The Garden Oe MJR Kuhonji Terrace MJR The Garden KagoshimaChuo MJR Onojoekimae MJR Sakurazaka The Residence MJR Shimizucho (provisional) MJR ShinOe (provisional) Location Nishiku, Fukuoka Chuoku, Fukuoka Chuoku, Kumamoto Chuoku, Kumamoto Uearatacho, Kagoshima Onojo, Fukuoka Chuoku, Fukuoka Shimizucho, Kagoshima Chuoku, Kumamoto No. of total units (provisional) 8 Fiscal year for transfer/start of movein (provisional) 8 F: Tsutaya Books, kids JR, clinic zone *Artist's rendering F: Ropponmatsu Marche F: Commercial area Apartment leasing RJR Oitaekimae II (provisional) RJR Chiyo Kencho Guchi (provisional) RJR Nishi Koen (provisional) Grand Precia Shibaura RJR Precia Korimoto II (provisional) RJR Hakataekiminami (provisional) Oita city Hakataku, Fukuoka Chuoku, Fukuoka Minatoku. Tokyo Kagoshima city Hakataku, Fukuoka 8

20 . Overview. Operating Environment. Business Activities (Environment). Data Environmental Activities Basic Policy on Environmental Conservation Activities Basic Principle The JR Kyushu Group will make concerted efforts to implement environmental conservation and thereby contribute to the creation of a sustainable society. Basic Policy. By introducing environmental conservation technologies and using originality and ingenuity in relation to them, we will promote efficient energy use and strive to reduce CO emissions, which are a cause of global warming.. We will not only promote waste reduction and recycling and strive for efficient use of resources but also manage and dispose of environmental pollutants appropriately.. We will strive to provide safe and comfortable transportation so that even more customers can use environmentally friendly railways. Energy Usage and Unit Energy Consumption (nonconsolidated) Unit: crude oil equivalent (kl),,, 8,,, 8,8 8, 8,8, 8 Index (Cars),,8,,,, Change in Number and Percentage of EnergySaving Train Cars 8,,. 8.,.,.,.,.,.8,. (%) 8, Numerical Targets to Combat Global Warming, 8 (FY) JR Kyushu established the "JR Kyushu Voluntary Plan" in FY as an independent action plan against global warming, and in FY successfully achieved all its targets. To further contribute to combating global warming, in September JR Kyushu formulated the "JR Kyushu LowCarbon Society Action Plan". Moving forward, we are proactively introducing ecofriendly trains, and continuing with our efforts against global warming. JR Kyushu LowCarbon Society Action Plan In the railway division, we intend to achieve the following two targets by FY. () Increase the rate of introduction of energysaving train cars to 8%. () Reduce unit energy consumption to.% below the level in FY. Please note that, in accordance with such factors as future changes in the transportation system, we will revise these targets as necessary. Energy usage in other divisions Energy usage in the railway division Unit energy consumption in the railway division (Index based on FY as ) *Unit energy consumption = energy consumption (of electricity, fuel, etc.) train running distance in kilometers DENCHA, the Dual Energy Charge Train This ecofriendly, "smart" nextgeneration train, the DENCHA, is the first ACelectrified dual energy charge train in Japan. It began running on the Chikuho Main Line. DENCHA's energy consumption (crude oil equivalent) and CO emissions are much lower than a conventional diesel train, and the amount of exhaust gas discharged is zero. Energysaving train cars Nonenergysaving train cars Ratio of energysaving train cars to all train cars (%)

21 . Overview. Operating Environment. Business. Data Employees Number of Employees (NonConsolidated) As of April (Number of Employees),,,,,,,8,,,,,,,,,,,,8,,,8,,,8,,8,8,,,,,, 8,8 8,,,, (Year) Age Distribution of Employees (NonConsolidated) As of April, Number of Employees (Consolidated) As of March (Age) (Number of Employees), % % % 8 % 8 % %,8 %, %, %, % 8,,,,,8, (Number of Employees),, 8,,,8,8,,,88, (Year) Retail and Restaurants Real Estate Construction Transportation

22 . Overview. Operating Environment. Business. Data Capital Investment Amounts (NonConsolidated) million yen 8 Investments to improve safety in the railway services Growth investments DENCHA, the Dual Energy Charge Train RJR Precia Hakata Investments to improve safety in the railway services Depreciation costs

23 . Overview. Operating Environment. Business. Data Financial Results (Consolidated) million yen 8 Total assets,8,,,,8,,8,,,8,8,,,, Total liabilities,,8,,,,,8,88,,,,,,,8 Total shareholders equity,,,, Noncontrolling interests* () () () (8) () () () () () () () Total net assets,8,88,8,8,,,8,,,,8 Operating revenues (external sales),8,,,,8,,,,,8,8,8,,,8 Transportation,,,,,,,,,,,88,,,, Construction Real Estate Retail and Restaurants , 8 Operating income (loss) () Transportation (8) (8) () () () () () () () () () () () () Construction 8 8 Real Estate 8 8 Retail and Restaurants 8 () () () () () Adjustments () () () () () () () () () (8) () () () Nonoperating income (expenses) Nonoperating income Nonoperating expenses 8 Earnings from use of the management stabilization fund Ordinary income Extraordinary gains (losses) () (8) () () () () () (,) () Extraordinary gains Extraordinary losses, Net income (loss) attributable to owners of the parent 8 () 8 (,) Net cash provided by operating activities Net cash provided by (used in) investing activities () () () () () () () () (8) (8) () () () (8) Free cash flow 8 8 () () () () () () Net cash provided by (used in) financing activities () () (8) (8) (8) () () 8 () () 8 () () Net increase (decrease) in cash and cash equivalents (8) () () () () () () () () Note: "Shareholders' equity" has been replaced by "Net assets" pursuant to Japan's Companies Act which came into force on May,. The disclosure of related figures and items has been adjusted to reflect this change. The noncontrolling interest (traditional minority interests) is included in net assets after the fiscal year ended March, and is relisted in parentheses. Note: For the year ended March,, adjustments for expenses related to seconded employees were included in nonoperating expenses. However, due to a change in our secondment policy during the year ended March,, beginning in the year ended March,, adjustments for expenses related to seconded employees have been included in operating expenses.

24 . Overview. Operating Environment. Business. Data Financial Results (NonConsolidated) millon yen Total assets,8,,, 8, 8, 8, 8, 8, 8, 8, 8,,,,, 8,88 8, 8,, 8, 8,8,,,,,,8,, Total liabilities 8,,,8,,,,,,8,8,8,,,,,,,,8,,,,,,,8 Total shareholders' equity,,,,,,,,,,,,,,,,,8,, Total net assets,,,,,,8,,,,, Operating revenues Operating expenses Personnel expenses Nonpersonnel expenses Energy expenses Repair expenses Operating expenses Taxes and dues Depreciation costs Operating income (loss) From railway services From nonrailway services Nonoperating income (expenses) Nonoperating income Nonoperating expenses Earnings from use of the management stabilization fund Ordinary income Extraordinary gains (losses) Extraordinary gains Extraordinary losses Net income (loss),8 Railway services, Revenues from transportation, revenues Revenues from related businesses,8 8 8 (88 (8 () 8 8,,8,8,8 8 8 (8) () (8) 8,,,8 88, 8 (8) () () ,,, 8, 88 8 (8) (8) (8) 8 (),,, 8,88 (8) () () () 8,,,, 8 () () () 8 8,,,8 8, 8 8 () () () 8 (),,,, 88 8 () () () () 8 (),,,, 8 8 () (8) () 8 8,,,,, 8 () () (),8,,,8 8 8 () () () 8,,,, 8 () () (,88), (,) Note: "Shareholders' equity" has been replaced by "Net assets" pursuant to Japan's Companies Act which came into force on May,. The disclosure of related figures and items has been adjusted to reflect this change. Note: For the year ended March,, adjustments for expenses related to seconded employees were included in nonoperating expenses. However, due to a change in our secondment policy during the year ended March,, beginning in the year ended March,, adjustments for expenses related to seconded employees have been included in operating expenses.,,88,8, 88 8 () () ,,,, 8 () () 8,,, 8, 8 8 () (8),,8, 88, () (8) (),,,, 8 () (8) 88 () 8,,, 8, 8 () 8 (),,,, () 8 (),,,, 8 8 () 8 8 8,,,,8 () 8,,8, 8 8, 8 8 () 8 () 8,,8,,8 () () 8 8 () 8 8 8,8,,8, 8 8 () () 8 () 8,,, 8,8 () 8,,, 8,, 8 () (),,, 8,8 8, 8 () (),,, 8 8,8,8 8 8 (),,,,, () 8 8 (,8), (,),,, 8,8, ()