Komori
Earnings presentation9142Kyushu Railway CompanyTransportation and logistics

Materials for the Briefing on Financial Results for the Second Quarter of the Fiscal Year Ending March 2027

For the cumulative second quarter, operating income, ordinary income and net income were below the year-earlier period due to lower railway revenue and extraordinary losses resulting from the Kumamoto Earthquake. The full-year forecasts for operating revenue, operating income and ordinary income were left unchanged, while the forecast for net income attributable to owners of the parent was revised down by ¥4.6 billion, and the annual dividend forecast was set at ¥121.

Worth reading
74In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
46
¥4.6 billion (amount of the downward revision to the full-year forecast for net income attributable to owners of the parent)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of the fiscal year ending March 202713 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales2,464 Hundred million yen+3.7%
Operating profit362 Hundred million yen-11.3%
Ordinary income351 Hundred million yen-14.3%
Net income214 Hundred million yen-3.8%
Full-year earnings forecast
Operating revenue
5,205 Hundred million yen
Operating profit
750 Hundred million yen
Ordinary income
709 Hundred million yen
Profit attributable to owners of the parent
470 Hundred million yen
EBITDA
1,162 Hundred million yen
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Mixed (varied by business and metric, with results in line with, above and below expectations)
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Decrease in operating revenue resulting from the Kumamoto EarthquakeApproximately ¥6.9 billion decrease in revenue
  • Decrease in operating income resulting from the Kumamoto Earthquake¥6.8 billion decrease (transportation services)
  • Special loss from the Kumamoto earthquakeApproximately ¥9 billion
  • Impact of the Kumamoto Earthquake on railway passenger transportation revenue (Shinkansen)¥6.2 billion decrease
  • Impact of the Kumamoto Earthquake on railway passenger transportation revenue (conventional lines)¥200 million decrease
  • Increase in repair and depreciation expensesRepair expenses up ¥1.9 billion, depreciation expenses up ¥1.2 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Hotel occupancy rateApproximately 85%
  • Hotel ADRApproximately ¥26,000
  • Station-building tenant salesApproximately 104% year on year
  • Store sales in the distribution and food-service segmentApproximately 107% year on year
  • Inbound revenueThe second half is expected to be at the same level as the previous year
New initiatives
  • Construction of new turnback facilities at Fukukōdai-mae Station (scheduled for completion in spring 2027)
  • Interior refurbishment of 883 series limited express trains (to be introduced progressively from around spring 2027)
  • Tie-up with the global blockbuster film “Harry Potter”
  • Developing the financial super app “JQ BANK (provisional name)” with the SBI Group, with service launch targeted for fiscal 2027
  • Construction begins on the grid-scale battery storage business “でんきの駅諫早” (scheduled to commence operations in December 2028)
  • Development of the former Kyushu University Hakozaki Campus site and improvements to JR Kaizuka Station
Key KPIsA metric the company considers important as a management benchmark.
  • EBITDA564 Hundred million yen
    Year on year against the same period last year-5.4%
  • Passenger-kilometers4,238 million passenger-kilometers
    Year on year against the same period last year-0.8%
  • Hotel occupancy rate81.3 %
    Year on year against the same period last yearBelow the level in the same period of the previous year
  • Hotel ADR24,000 Approximately ¥
    Year on year against the same period last yearAbove the same period of the previous year
  • Inbound guest ratio54 Approximately %
  • Station-building tenant sales106.6 Year-on-year %
    Year on year against the same period last yearIncreased
  • Existing-store revenueIn line with the prior-year period
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • JR-KYUSHU RAIL PASS sales volume7.9 10,000 passes
    Year on year against the same period last year-29.4%
  • JR-KYUSHU RAIL PASS sales13.5 Hundred million yen
    Year on year against the same period last year-26.5%
  • JR-KYUSHU RAIL PASS average price¥16,900
    Year on year against the same period last year+4.1%
  • Passenger-kilometres (company-wide total)4,238 million passenger-kilometers
    Year on year against the same period last year-0.8%
  • Hotel occupancy rate81.3 %
    Year on year against the same period last yearDown
  • Hotel ADR24,000 Approximately ¥
    Year on year against the same period last yearHigher
Segment results
Transportation Services
Operating revenue
910 Hundred million yen-1.3%
Operating profit
136 Hundred million yen-26.2%
Real Estate and Hotels
Operating revenue
800 Hundred million yen+4.4%
Operating profit
177 Hundred million yen-0.5%
Retail and Restaurants
Operating revenue
372 Hundred million yen+7.4%
Operating profit
20 Hundred million yen-0.7%
Construction
Operating revenue
468 Hundred million yen+15.4%
Operating profit
10 Hundred million yen+59.4%
Business Services
Operating revenue
405 Hundred million yen+3.0%
Operating profit
22 Hundred million yen-1.6%
Medium-term management plan targets
2025-2027
Operating revenue
5,640 Hundred million yen
Operating profit
810 Hundred million yen
EBITDA
1,255 Hundred million yen
ROE
10 Approximately %
Comparison with actual resultsFull-year forecasts: operating revenue of ¥520.5 billion, operating income of ¥75 billion and EBITDA of ¥116.2 billion
Financial targets
ROE
TargetApproximately 10%
Equity ratio
Actual results40 %
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
  • Approximately ¥6.9 billion
    DetailsDecrease in revenue resulting from the Kumamoto Earthquake
  • Approximately ¥9 billion
    DetailsExtraordinary losses resulting from damage to railway facilities and other factors
Annual Dividend
Annual
¥121 per share
Interim
¥60.5 per share
End of period¥60.5 per share (not a figure calculated from the annual and interim dividend forecasts; not explicitly stated in the materials)
Payout ratio
35 % or higher
Acquisition of treasury shares
Policy of making flexible share repurchases. The repurchase authorization amount, number of shares and period are not disclosed
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales2,464 Hundred million yen (YoY +3.7%)
Operating profit362 Hundred million yen (YoY -11.3%)
Ordinary income351 Hundred million yen (YoY -14.3%)
Net income214 Hundred million yen (YoY -3.8%)
Full-year earnings forecastOperating revenue 5,205 Hundred million yen / Operating profit 750 Hundred million yen / Ordinary income 709 Hundred million yen / Profit attributable to owners of the parent 470 Hundred million yen / EBITDA 1,162 Hundred million yen
Self-assessment against the planMixed (varied by business and metric, with results in line with, above and below expectations)
Segment resultsTransportation Services Operating revenue 910 Hundred million yen (YoY -1.3%) / Operating profit 136 Hundred million yen (YoY -26.2%) / Real Estate and Hotels Operating revenue 800 Hundred million yen (YoY +4.4%) / Operating profit 177 Hundred million yen (YoY -0.5%) / Retail and Restaurants Operating revenue 372 Hundred million yen (YoY +7.4%) / Operating profit 20 Hundred million yen (YoY -0.7%) / Construction Operating revenue 468 Hundred million yen (YoY +15.4%) / Operating profit 10 Hundred million yen (YoY +59.4%) / Business Services Operating revenue 405 Hundred million yen (YoY +3.0%) / Operating profit 22 Hundred million yen (YoY -1.6%)
Breakdown of Factors Affecting the ChangeFactors Decrease in operating revenue resulting from the Kumamoto Earthquake / Amount Approximately ¥6.9 billion decrease in revenue, Factors Decrease in operating income resulting from the Kumamoto Earthquake / Amount ¥6.8 billion decrease (transportation services), Factors Special loss from the Kumamoto earthquake / Amount Approximately ¥9 billion, Factors Impact of the Kumamoto Earthquake on railway passenger transportation revenue (Shinkansen) / Amount ¥6.2 billion decrease, Factors Impact of the Kumamoto Earthquake on railway passenger transportation revenue (conventional lines) / Amount ¥200 million decrease, Factors Increase in repair and depreciation expenses / Amount Repair expenses up ¥1.9 billion, depreciation expenses up ¥1.2 billion
Key KPIsIndicator name EBITDA / Value 564 Hundred million yen / Year on year against the same period last year -5.4 Hundred million yen, Indicator name Passenger-kilometers / Value 4,238 million passenger-kilometers / Year on year against the same period last year -0.8 million passenger-kilometers, Indicator name Hotel occupancy rate / Value 81.3 % / Year on year against the same period last year Below the level in the same period of the previous year, Indicator name Hotel ADR / Value 24,000 Approximately ¥ / Year on year against the same period last year Above the same period of the previous year, Indicator name Inbound guest ratio / Value 54 Approximately % / Year on year against the same period last year Not disclosed, Indicator name Station-building tenant sales / Value 106.6 Year-on-year % / Year on year against the same period last year Increased, Indicator name Existing-store revenue / Value In line with the prior-year period / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name JR-KYUSHU RAIL PASS sales volume / Value 7.9 10,000 passes / Year on year against the same period last year -29.4 10,000 passes, Indicator name JR-KYUSHU RAIL PASS sales / Value 13.5 Hundred million yen / Year on year against the same period last year -26.5 Hundred million yen, Indicator name JR-KYUSHU RAIL PASS average price / Value ¥16,900 / Year on year against the same period last year ¥4.1, Indicator name Passenger-kilometres (company-wide total) / Value 4,238 million passenger-kilometers / Year on year against the same period last year -0.8 million passenger-kilometers, Indicator name Hotel occupancy rate / Value 81.3 % / Year on year against the same period last year Down, Indicator name Hotel ADR / Value 24,000 Approximately ¥ / Year on year against the same period last year Higher
Assumptions Underlying the Business OutlookItem Hotel occupancy rate / Value Approximately 85%, Item Hotel ADR / Value Approximately ¥26,000, Item Station-building tenant sales / Value Approximately 104% year on year, Item Store sales in the distribution and food-service segment / Value Approximately 107% year on year, Item Inbound revenue / Value The second half is expected to be at the same level as the previous year
Risk amount incorporated into the outlookAmount Approximately ¥6.9 billion / Details Decrease in revenue resulting from the Kumamoto Earthquake, Amount Approximately ¥9 billion / Details Extraordinary losses resulting from damage to railway facilities and other factors
Medium-term management plan targetsSubject 2025-2027 / Operating revenue 5,640 Hundred million yen / Operating profit 810 Hundred million yen / EBITDA 1,255 Hundred million yen / ROE 10 Approximately % / Comparison with actual results Full-year forecasts: operating revenue of ¥520.5 billion, operating income of ¥75 billion and EBITDA of ¥116.2 billion
Financial targetsROE Target Approximately 10% / Actual results Not disclosed / Equity ratio Actual results 40 %
Annual DividendAnnual ¥121 per share / Interim ¥60.5 per share / End of period ¥60.5 per share (not a figure calculated from the annual and interim dividend forecasts; not explicitly stated in the materials)
Payout ratio35 % or higher
Acquisition of treasury sharesPolicy of making flexible share repurchases. The repurchase authorization amount, number of shares and period are not disclosed
New initiativesConstruction of new turnback facilities at Fukukōdai-mae Station (scheduled for completion in spring 2027), Interior refurbishment of 883 series limited express trains (to be introduced progressively from around spring 2027), Tie-up with the global blockbuster film “Harry Potter”, Developing the financial super app “JQ BANK (provisional name)” with the SBI Group, with service launch targeted for fiscal 2027, Construction begins on the grid-scale battery storage business “でんきの駅諫早” (scheduled to commence operations in December 2028), Development of the former Kyushu University Hakozaki Campus site and improvements to JR Kaizuka Station
Items this document does not state (11)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastNumber of stores and locationsNumber of employeesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The company said it reflected in its earnings forecasts the decline in railway passenger transportation revenue resulting from the Kumamoto Earthquake, approximately ¥9 billion in extraordinary losses associated with damage to railway facilities, and demand in the second half.

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Materials for the Briefing on Financial Results for the Second Quarter of the Fiscal Year Ending March 2027 | Kyushu Railway Company (9142) timely disclosure | Komori