Fiscal Year Ending March 2027 Q2 Earnings Presentation

Earnings Overview

For the consolidated Q2 of the fiscal year ending March 2027, operating revenue increased year-over-year, however operating income, ordinary income and interim net income decreased due to reductions in passenger transportation revenue from earthquake impacts. A special loss of approximately 90 hundred million yen was recorded. Segment impacts were seen in Rail, Real Estate & Hotels, and other components. The full-year forecast has been revised from the previous announcement: operating revenue and operating income remain unchanged, while net income attributable to owners of the parent has been revised downward. The dividend policy is to maintain a consolidated payout ratio of 35% or more while conducting flexible share buybacks.

Shareholder Returns and Medium-Term Plan Direction

Under the Medium-Term Management Plan 2025-2027, the Company aims to improve ROE and reduce the cost of equity while maintaining and strengthening shareholder returns. The FY2027 dividend forecast is 121 yen per share, including an interim dividend of 60.5 yen, and the Company will consider flexible share buybacks with a target payout ratio of 35% or more. Measures such as railway fare revisions will be used to stabilize earnings, while strengthening inter-business collaboration and promoting creation of new businesses.