(Translation)

Consolidated Financial Results

for the Nine-Month Period Ended December 31, 2021

(Japanese GAAP)

February 8, 2022

Company name:

Kyushu Railway Company

Stock exchange listings:

Tokyo and Fukuoka

Securities code:

9142

URL:

https://www.jrkyushu.co.jp/

Representative:

Toshihiko Aoyagi, President and CEO

Contact:

Keiichi Takano, General Manager, Public Relations Department

Tel.: +81-92-474-2541

Scheduled date for filing of quarterly report:

February 10, 2022

Planned Date of dividend payment commencement:

－

Preparation of supplementary explanations for financial results:

Yes

Holding of a briefing on quarterly financial results:

None

(Amounts less than one million yen, except for per share amounts, are omitted.)

1. Consolidated Financial Results for the Nine-Month Period Ended December 31, 2021 (From April 1, 2021 to December 31, 2021)

(1) Consolidated operating results

(Percentages show year-on-year changes.)

Operating revenue

Operating income

Ordinary income

Net income attributable to

owners of the parent

Nine months ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

December 31, 2021

222,712

10.0

2,784

－

6,967

－

9,214

－

December 31, 2020

202,405

(36.7)

(18,601)

－

(16,153)

－

(11,662)

－

(Note) Comprehensive income:

Nine months ended December 31, 2021: ¥8,364 million (－%)

Nine months ended December 31, 2020: ¥(13,547) million (－%)

Net income per share

Net income per share

- basic

- diluted

Nine months ended

Yen

Yen

December 31, 2021

58.65

－

December 31, 2020

(74.23)

－

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of December 31, 2021

926,495

386,301

41.5

As of March 31, 2021

891,379

395,408

43.8

(Reference) Shareholders' equity:

As of December 31, 2021: ¥384,507 million

As of March 31, 2021: ¥390,189 million

2. Dividends

Annual dividends

First

Second

Third

Fiscal

Total

quarter-end

quarter-end

quarter-end

year-end

Yen

Yen

Yen

Yen

Yen

Year ended March 31, 2021

－

0.00

－

93.00

93.00

Year ending March 31, 2022

－

0.00

－

Year ending March 31, 2022

93.00

93.00

(Forecast)

(Note) Revisions to the most recently disclosed dividend forecasts: No

3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

(Percentages for the full year show year-on-year changes.)

Net income

Net income per

Operating revenue

Operating income

Ordinary income

attributable to owners

of the parent

share

Millions of

%

Millions of

%

Millions of

%

Millions of

%

Yen

yen

yen

yen

yen

Full year

332,800

13.2

2,700

－

6,900

－

9,800

－

62.37

(Note) Revisions to the most recently disclosed financial forecasts: Yes

Notes

  1. Changes in significant subsidiaries during the nine months ended December 31, 2021 (changes in specified subsidiaries affecting the scope of consolidation): No
  2. Application of special accounting treatment in preparing the quarterly consolidated financial statements: No
  3. Changes in accounting policies, changes in accounting estimates and restatement of revisions
    1. Changes in accounting policies with revision of accounting standards: Yes
    2. Changes in accounting policies other than the above: Yes
    3. Changes in accounting estimates: Yes
    4. Restatement of revisions: No

(Notes)

ii is subject to "Changes in Accounting Policies That Are Difficult to Distinguish from Changes in Accounting Estimates."

For details about i, please refer to "(3) Notes to Quarterly Consolidated Financial Statements, Changes in Accounting Policies" on page 13 of the accompanying materials.

For details about ii and iii, please refer to "(3) Notes to Quarterly Consolidated Financial Statements, Changes in Accounting Policies That Are Difficult to Distinguish from Changes in Accounting Estimates and Changes in Accounting Estimates" on page 14 of the accompanying materials.

(4) Number of shares outstanding (common stock)

i

Number of shares issued and

As of December

157,301,600

As of March 31,

157,301,600

outstanding at end of period

31, 2021

shares

2021

shares

(including treasury stock)

ii

Number of shares of treasury

As of December

183,700

As of March 31,

184,600

stock at end of period

31, 2021

shares

2021

shares

iii

Average number of shares during

As of December

157,117,600

As of December

157,116,500

the period

31, 2021

shares

31, 2020

shares

Note: The number of shares of treasury stock at the end of the period includes the number of shares of the Company's stock held by the Board Benefit Trust (BBT) (Third quarter of FY2022/3, 183,700 shares; FY2021/3, 184,600 shares). In addition, the number of shares of the Company's stock held by the Board Benefit Trust (BBT) is included in the treasury stock that is subtracted in the calculation of the average number of shares during the period (Third quarter of FY2022/3, 184,000 shares; Third quarter of FY2021/3, 185,100 shares).

  • This summary of consolidated financial results is not subject to quarterly reviews by certified public accountants or corporate auditors.
  • Explanation of Appropriate Uses of Performance Forecasts and Other Important Items:
    Performance forecasts and other forward-looking statements appearing in this document are based on currently available information and specific assumptions deemed rational, and are not assurances that the Company will achieve these forecasts. Actual performance can vary greatly depending on various factors such as fluctuations in interest rates, fluctuations in share prices, changes in exchange rates, fluctuations in the value of assets, changes in the economic and financial environment, changes in the conditions of competition, occurrences of large-scale and other disasters, and changes in regulations.

Supplementary quarterly materials are attached to this summary of consolidated financial results.

Contents of Accompanying Materials

1. Qualitative Information on Quarterly Consolidated Financial Performance.......................

2

(1)

Qualitative Information on Consolidated Operating Results .................................................

2

(2)

Qualitative Information on Consolidated Financial Position .................................................

7

(3)

Qualitative Information on Consolidated Performance Outlook............................................

7

2. Quarterly Consolidated Financial Statements and Major Notes ...........................................

9

(1)

Consolidated Balance Sheets..................................................................................................

9

(2)

Consolidated Statements of Income and Comprehensive Income .........................................

11

Quarterly Consolidated Income Statements

Consolidated Cumulative Third Quarter ..........................................................................

11

Quarterly Consolidated Comprehensive Income Statements

Consolidated Cumulative Third Quarter ........................................................................

12

(3)

Notes to Quarterly Consolidated Financial Statements ..........................................................

13

(Notes on Going Concern Assumption) .................................................................................

13

(Notes on Significant Changes in the Value of Shareholders' Equity)...................................

13

(Changes in Accounting Policies) ..........................................................................................

13

(Changes in Accounting Policies That Are Difficult to Distinguish from Changes in

Accounting Estimates and Changes in Accounting Estimates) ............................................

14

(Additional Information) ........................................................................................................

15

(Segment Information) ...........................................................................................................

16

(Significant Subsequent Events) ............................................................................................

17

○(Financial results presentation materials)

Financial Results for the Third Quarter of FY22.3 (Cumulative total for the nine-month period from April to December)

- 1 -

1. Qualitative Information on Quarterly Consolidated Financial Performance

Forward-looking statements in this document are based on assessments as of the end of the third quarter of FY2022/3.

From the first quarter of FY2022/3, the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc.

Details are provided in "2. Quarterly Consolidated Financial Statements and Major Notes, (3) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)" and "2. Quarterly Consolidated Financial Statements and Major Notes, (3) Notes to Quarterly Consolidated Financial Statements (Segment Information)."

(1) Qualitative Information on Consolidated Operating Results

In the nine month period ended December 31, 2021, due to the re-spread of the COVID-19 infection, a state of emergency was declared and extended multiple times. Domestic demand remained sluggish, centered on the service sector. Due to the expansion of vaccination programs, etc., there are expectations for progress with the control of COVID-19 and with economic activity. However, a new COVID-19 variant has emerged, and the timing, extent, etc., of a recovery in economic activity remain highly uncertain. Challenging conditions are expected to continue for the time being.

Looking at the Group's results, due to spread of the COVID-19 infection and to the state of emergency declarations, the railway and other businesses were affected by declining mobility demand and sluggish consumer spending. In these conditions, we worked in accordance with our recognition that our most important mission is safety in the railway business, which is our mainstay business. We steadily invested in railway safety, and in April 2021 we opened the Kumamoto Station Building, which is part of our implementation of strategic city-building initiatives in the regions around our bases. Furthermore, we rolled out a project under the title "Supporting Each Other Until It's Over," which expresses our wishes for the resolution of COVID-19 and the invigoration of Kyushu. We also implemented initiatives to promote "Local Community Invigoration," such as establishing a specialized regional fund. In addition, the future course of trends in the management environment is unclear. In preparation for changes in the management environment, we took steps to reduce costs, centered on the railway business. These steps included temporary leave for employees.

As a result, operating revenue was up 10.0% year on year, to ¥222,712 million; operating income was ¥2,784 million (compared with operating loss of ¥18,601 million in the same period of the previous fiscal year); EBITDA was ¥22,665 million (compared with EBITDA of ¥1,728 million in the same period of the previous fiscal year); ordinary income was ¥6,967 million (compared with ordinary loss of ¥16,153 million in the same period of the previous fiscal year); and net income attributable to owners of the parent was ¥9,214 million (compared with net loss attributable to owners of the parent of ¥11,662 million in the same period of the previous fiscal year).

(Note) EBITDA for the consolidated period under review is the numerical value of operating income plus the cost of depreciation (excluding the cost of depreciation related to lease assets held for the purpose of subleasing).

- 2 -

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Kyushu Railway Company published this content on 08 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 February 2022 06:41:18 UTC.