Kyushu Railway : FY22.3 Financial Results Overview, First Quarter

FY22.3

Financial Results Overview,

First Quarter

August 3, 2021

Contents

Ⅰ Financial results for the First Three-Months of FY22.3,	3
	Full-Year Performance Forecasts, and Dividend Forecasts
Ⅱ	Status of Segments	11
Ⅲ	Status of Initiatives to Address Issues Faced by the Group	19

2

• Financial results for the First Three-Months of FY22.3, Full-Year Performance Forecasts, and Dividend Forecasts

3

Consolidated Financial Highlights for the Three-Month Period Ended June 30, 2021 (Year on Year)

					（bil）
	3 months ended	3 months ended	YoY
	June, 30 2020	June, 30 2021
Operating revenue	61.8	72.0	10.2		116.6%
Operating income	(15.7)	(1.3)	14.3		-
Ordinary income	(15.2)	0.3	15.6		-
Extraordinary gains and	7.0	0.0	(7.0)		0.8%
losses
Net income attributable to	(5.1)	0.9	6.0		-
owners of the parent
EBITDA※	(9.1)	5.0	14.1		-

※Note: EBITDA = operating income + depreciation expense (excluding depreciation of leased assets held for subleasing purposes). The same applies hereafter

Operating revenue

Despite the continued influence of the COVID-19 infection and the change of JR Kyushu Drug Eleven to an equity-method affiliate [¥(12.4) billion], operating revenue increased due to condominium sales and a moderate recovery in demand in each business.

Operating income

Due to the implementation of cost reductions (railway business expenses: [¥(3.6) billion] and other initiatives, the scale of the operating loss was reduced, but nonetheless an operating loss was recorded due to the continued influence of the COVID-19 infection.

					Change in operating revenue by segment					Change in operating income by segment
（¥bil）									（¥bil）
90
									5
							+13.7
										0
	80
											+4.3	+0.6	+0.4
									72.0				(1.3)
			+6.8	+1.0					(5)		+8.7
	70		(10.1)	(0.6)	(0.6)

61.8

(10)

(0.0)

60

(15)

50

(15.7)

(20)

Operating revenue 3).(FY21

Transportation

Construction

Estate Real Hotels and

and Retail Restaurant

Other

Adjustment

Operating revenue 3).(FY22

Operating income 3).(FY21

Transportation

Construction

Estate Real Hotels and

and Retail Restaurant

Other

Operating income 3).(FY22

4

Results for the First Three Months of FY22.3 (by segment)

							（bil）
			3 months ended	3 months ended	YoY		Major factors
			June, 30 2020	June, 30 2021
Operating revenue	61.8	72.0	10.2	116.6%
	Transportation	17.3	24.1	6.8	139.7%
		Railway Business (non-consolidated)	16.2	22.8	6.5	140.6%	Increase due to moderate recovery in demand
	Construction	16.8	17.9	1.0	106.3%	Increase in construction
	Real Estate and Hotels	11.5	25.2	13.7	219.2%
							Increase due to opening of Kumamoto Station Building and Miyazaki Station
		Real Estate Lease	10.2	13.9	3.7	136.5%	Building, increase due to rebound from previous fiscal year's building
							closures, rent reductions, etc.
		Condominium Sales	0.4	9.6	9.2	- Increase in condominium sale revenues
		Hotel Business	0.8	1.6	0.8	197.2%	Increase due to rebound from previous fiscal year's building closures
	Retail and Restaurant	19.6	9.4	(10.1)	48.2%	Decrease due to transfer of a portion of holdings of the shares of JR Kyushu Drug Eleven
	Other	14.3	13.6	(0.6)	95.5%
Operating income	(15.7)	(1.3)	14.3	-
	Transportation	(13.9)	(5.2)	8.7	-
		Railway Business (non-consolidated)	(13.5)	(5.0)	8.5	-
	Construction	0.2	0.1	(0.0)	69.5%
	Real Estate and Hotels	(0.3)	4.0	4.3	-
		Real Estate Lease	1.6	4.0	2.3	241.4%
		Condominium Sales	(0.2)	1.5	1.7	-
		Hotel Business	(1.8)	(1.4)	0.3	-
	Retail and Restaurant	(1.5)	(0.8)	0.6	-
	Other	0.1	0.5	0.4	427.1%
EBITDA	(9.1)	5.0	14.1	-
	Transportation	(11.3)	(3.1)	8.2	-
		Railway Business (non-consolidated)	(11.1)	(3.1)	7.9	-
	Construction	0.5	0.4	(0.0)	83.7%
	Real Estate and Hotels	2.6	7.5	4.8	284.7%
		Real Estate Lease	4.0	6.9	2.8	171.2%
		Condominium Sales	(0.2)	1.5	1.7	-
		Hotel Business	(1.2)	(0.9)	0.2	-
	Retail and Restaurant	(1.0)	(0.5)	0.5	-
	Other	0.5	0.9	0.4	189.5%

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