Impact of COVID-19 on Transport Demand and Business Performance

「During the interim consolidated accounting period, there were no new business risks or material changes to the business risks described in the securities report for the previous fiscal year.」

「The Group's businesses, particularly its railway operations including the Tokaido Shinkansen, may be significantly affected by natural disasters such as earthquakes and typhoons, terrorist attacks and outbreaks of infectious diseases, which may affect the Group's financial position, business results and cash flows.」

「During the six-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「Usage of railways and other services has declined due to the impact of COVID-19. Although it is difficult to reasonably predict when COVID-19 will subside, the company has made accounting estimates for its railway business on the assumption that average usage in the fourth quarter of the current consolidated fiscal year will remain at approximately 80% of fiscal 2018 levels, as socioeconomic activity becomes more active while measures against COVID-19 progress.」

「Usage of railways and other services has declined due to the impact of COVID-19. Although it is difficult to reasonably predict when COVID-19 will subside, the company has made accounting estimates for its railway business on the assumption that average usage in the third and fourth quarters of the current consolidated fiscal year will remain at approximately 80% of fiscal 2018 levels, as socioeconomic activity becomes more active while measures against COVID-19 progress.」

「Usage of railways and other services has declined substantially due to the impact of COVID-19. Although it is difficult to reasonably predict when COVID-19 will subside, the company has made accounting estimates for its railway business on the assumption that usage will recover to 80% of fiscal 2018 levels, based on the average for the third quarter of the current consolidated fiscal year, as socioeconomic activity becomes more active while measures against COVID-19 progress.」

「Amid an extremely difficult business environment that continued due to the impact of requests to refrain from going out and traveling following the outbreak of COVID-19, total transport volume for the nine months ended the third quarter, measured in passenger-kilometers, was 23.633 billion passenger-kilometers, up 26.4% year on year. Operating revenue was ¥686.3 billion, up 13.8% year on year, ordinary loss was ¥14.7 billion, and net loss attributable to owners of the parent was ¥12.3 billion.」

「However, as usage by both business and leisure travelers declined substantially due to the impact of requests to refrain from going out and traveling following the outbreak of COVID-19, total transport volume for the six months ended the second quarter, measured in passenger-kilometers, was 13.031 billion passenger-kilometers, up 28.5% year on year. Operating revenue was ¥386.9 billion, up 14.5% year on year, ordinary loss was ¥67.0 billion, and net loss attributable to owners of the parent was ¥44.4 billion.」

「As usage by both business and leisure travelers declined substantially due to the impact of requests to refrain from going out and traveling following the outbreak of COVID-19, total transport volume for the first quarter of the fiscal year, measured in passenger-kilometers, was 6.157 billion passenger-kilometers, up 61.7% year on year. Operating revenue was ¥180.6 billion, up 40.3% year on year, ordinary loss was ¥40.1 billion, and net loss attributable to owners of the parent was ¥28.4 billion.」

「As usage by both business and leisure travelers declined substantially due to the impact of requests to refrain from going out and traveling following the outbreak of COVID-19, total transport volume for the fiscal year, measured in passenger-kilometers, was 24.61 billion passenger-kilometers, down 61.2% year on year. Operating revenue was ¥823.5 billion, down 55.4% year on year, ordinary loss was ¥262.0 billion, and net loss attributable to owners of the parent was ¥201.5 billion.」

「However, demand for both business and tourism travel declined sharply owing to the impact of requests to refrain from going out and travelling in response to the outbreak of COVID-19. Consequently, total transportation volume (passenger-kilometres) for the cumulative nine months of the fiscal year declined 63.2% year on year to 18.699 billion passenger-kilometres. Operating revenue declined 58.4% to ¥603.0 billion, ordinary loss was ¥147.7 billion, and the quarterly net loss attributable to owners of the parent was ¥111.4 billion.」

「However, demand for both business and tourism travel declined sharply owing to the impact of requests to refrain from going out and travelling in response to the outbreak of COVID-19. Consequently, total transportation volume (passenger-kilometres) for the cumulative six months of the fiscal year declined 69.8% year on year to 10.144 billion passenger-kilometres. Operating revenue declined 64.6% to ¥337.8 billion, ordinary loss was ¥150.7 billion, and the quarterly net loss attributable to owners of the parent was ¥113.5 billion.」

「However, demand for both business and tourism travel declined sharply owing to the impact of requests to refrain from going out and travelling in response to the outbreak of COVID-19. Consequently, total transportation volume (passenger-kilometres) for the cumulative three months of the fiscal year declined 77.0% year on year to 3.808 billion passenger-kilometres. Operating revenue declined 72.7% to ¥128.7 billion, ordinary loss was ¥101.4 billion, and the net loss attributable to owners of the parent was ¥72.6 billion.」

「Use of railways and other services declined substantially due to the impact of requests to refrain from going out and other measures following the outbreak of COVID-19, resulting in lower operating revenue for the consolidated fiscal year. As the difficult business environment is expected to continue for the time being, a material impact on results for the following consolidated fiscal year is anticipated.」