JR Kyushu Group Integrated Report
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JR Kyushu Group Integrated Report 2021 What we aim to be A corporate group that invigorates Kyushu, Japan, and Greater Asia with safety and service as its foundation The JR Kyushu Group’s first and central business is our railway network throughout Kyushu. Over the years, our business has expanded into areas such as condominiums, construction, shipping, hotels, and station buildings. These areas complement our railway business, allowing us to achieve a synergy between our various areas of business. We are dedicated to contributing to the sustainable development of Kyushu through city-building and community development initiatives that leverage the distinctive characteristics of local communities, centering on safe and reliable mobility services. Kyushu Railway Company Integrated Report 2021 2 History of the JR Kyushu Group The Path to Achieving What We Aim To Be The JR Kyushu Group’s Aims Sound Corporate Management Source of Value Creation Building a Sustainable Society Data Section History of Value Creation Initiatives Value Creation Story Message from the President, Ensuring Transparent and Fair Management Safety, Service, Addressing Environmental Issues Financial Highlights, Non-Financial Information At a Glance Value Creation Process Local Community Invigoration, Pandemic Strategies Strengthening Risk Management, Rigorous Compliance Development of Human Resources Financial Information The JR Kyushu Group’s Corporate ESG Climate Change Adaptation, Message from the CFO Extensive Communication with Stakeholders Investor Information, Consolidated Subsidiary Information Contents History of the JR Kyushu Group 5 History of Value Creation Initiatives 7 At a Glance Sound Corporate Management The Path to Achieving What We Aim To Be 32 Ensuring Transparent and Fair Management 9 Value Creation Story 43 Strengthening Risk Management, Rigorous Compliance 10 Value Creation Process 46 Extensive Communication with Stakeholders 11 The JR Kyushu Group’s Corporate ESG Source of Value Creation The JR Kyushu Group’s Aims 48 Safety Data Section 14 Message from the President 52 Service 18 Local Community Invigoration 56 Development of Human Resources 67 Financial Highlights 23 Pandemic Strategies 68 Non-Financial Information 25 Climate Change Adaptation Building a Sustainable Society 69 Financial Information 27 Message from the CFO 62 Addressing Environmental Issues 75 Investor Information, Consolidated Subsidiary Information Editorial Policy Forward-looking Statements This report was developed for the purpose of imparting a deeper understanding of the This report contains forward-looking statements, including future outlooks and objectives of the JR Kyushu Group. These statements JR Kyushu Group’s operations (Kyushu Railway Company (JR Kyushu) and related com- are judgments made by JR Kyushu based on information, projections, and assumptions available at the time of the document’s cre- panies) to our stakeholders. The report was prepared with reference to the International ation. Please be advised that actual operating results could greatly differ from the statements in this document due to the effects of the Integrated Reporting Framework of the International Integrated Reporting Council (IIRC)* economic situation both inside and outside Kyushu and Japan as a whole, real estate market conditions, the progress of our projects, changes in laws and regulations, and a wide range of other risk factors. The purpose of this document is not to solicit the purchase and the Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues of JR Kyushu’s stocks or other financial instruments in Japan. In addition, this report does not constitute an offer of securities in the for Collaborative Value Creation from the Ministry of Economy, Trade and Industry. The ed- United States. Based on the American Securities Act of 1933, offering or selling securities in the United States is not permitted, with itors’ aim is to communicate financial and non–financial information, such as management the exception of cases where a company is registering securities or is exempt from registration. In cases where securities are being policies, business strategies, and ESG information, to readers in a concise manner. More publicly issued in the United States, an English prospectus created on the basis of the Securities Act of 1933 will be used. The pro- detailed information is available on the corporate website for those who are interested. spectus states that said securities may be acquired from an issuing company or seller and contains detailed information and financial * A private-sector organization established in 2010 by entities such as private-sector com- statements on issuing companies and their management. panies, investors, accountants’ organizations, and government institutions with the aim of developing an international corporate reporting framework. Kyushu Railway Company Integrated Report 2021 3 History of the JR Kyushu Group - History of Value Creation Initiatives - At a Glance Kyushu Railway Company Integrated Report 2021 4 History of the JR Kyushu Group The Path to Achieving What We Aim To Be The JR Kyushu Group’s Aims Sound Corporate Management Source of Value Creation Building a Sustainable Society Data Section History of Value Creation Initiatives Value Creation Story Message from the President, Ensuring Transparent and Fair Management Safety, Service, Addressing Environmental Issues Financial Highlights, Non-Financial Information At a Glance Value Creation Process Local Community Invigoration, Pandemic Strategies Strengthening Risk Management, Rigorous Compliance Development of Human Resources Financial Information The JR Kyushu Group’s Corporate ESG Climate Change Adaptation, Message from the CFO Extensive Communication with Stakeholders Investor Information, Consolidated Subsidiary Information History of Value Creation Initiatives The JR Kyushu Group’s Corporate DNA JR Kyushu was established following the breakup and privatization of Japanese National Railways in 1987. At the time of privatization, railway operations were around ¥30 billion in the red. We took steps to improve income and expenditure, but were also aware that we could not rely on our railway operations alone. We took up the challenge of various other businesses as well and aimed for growth. 1989 • Began selling MJR Sasaoka,our first condo- minium complex • Established JR Kyushu Fast Foods Inc. 2000 • Opened Amu Plaza Nagasaki and JR 1990 1995 Kyushu Hotel Nagasaki • International passen- •Opened Huis Ten Bosch JR ANA Hotel Kokura ger ship route estab- •Established JR Kyushu Retail, Inc. lished Beetle 2 began sailing 2001 Hakata •Established JR Kyushu Food Service Inc. • Opened Umaya in Akasaka, Fukuoka Prefecture from Fukuoka to Busan Tokyo Saga Prefecture Oita Prefecture (2 hours 55 minutes) Oita Saga • Opened Shato Hanten, Nagasaki a luxury Chinese restaurant Prefecture Kumamoto 1998 Nagasaki Kumamoto Prefecture •Opened Station Hotel Kokura Miyazaki Prefecture 1997 • Opened Shin-Kokura Station building (Amu Plaza) 1992 Miyazaki •Established Train d’Or Ltd. Kagoshima-Chuo •Opened JR Uchino Country Club Kagoshima Prefecture •Opened Hotel Blossom Fukuoka 2001 • Released new 2-ride and 4-ride conces- sion tickets for limited express trains 1991 • Commenced electric services on Established Kyushu Railway Sasaguri Line and Chikuho Main Line • Commenced electric service on 1995 Company (JR Kyushu) Related businesses (Fukuhoku Yutaka Line) (all of the Sasa- the Omura Line •First fare revision guri Line and between Orio and Keisen (Haiki to Huis Ten Bosch) on the Chikuho Main Line) 1990 2000 1987 Railway business 1996 2000 • Opened Miyazaki Airport • Completed the general operations system Line JACROS 1988 •Began operating Yufuin no Mori express 1993 1999 • Launched Stationmaster's Rec- • Held first JR Kyushu Walking 1987 ommended Hot Springs, a new event travel product •First revision of timetable • Commenced electric service on (Ekicho Osusume no Yu) Hohi Main Line (between Kumamoto and Higo-Ōzu) Kyushu Railway Company Integrated Report 2021 5 History of the JR Kyushu Group The Path to Achieving What We Aim To Be The JR Kyushu Group’s Aims Sound Corporate Management Source of Value Creation Building a Sustainable Society Data Section History of Value Creation Initiatives Value Creation Story Message from the President, Ensuring Transparent and Fair Management Safety, Service, Addressing Environmental Issues Financial Highlights, Non-Financial Information At a Glance Value Creation Process Local Community Invigoration, Pandemic Strategies Strengthening Risk Management, Rigorous Compliance Development of Human Resources Financial Information The JR Kyushu Group’s Corporate ESG Climate Change Adaptation, Message from the CFO Extensive Communication with Stakeholders Investor Information, Consolidated Subsidiary Information 2010 • Established JR Kyushu Farm Co., Ltd., an 2015 agricultural production company • Opened JR Oita City and JR Kyushu Hotel 2004 Blossom Oita • Opened JR Hakata City •Opened Amu Plaza Kagoshima 2019 Real Estate 2011 • Opened THE BLOSSOM HIBIYA and Hotels 2006 • Entered poultry farming industry and and THE BLOSSOM HAKATA established JR Kyushu Tamago Farm, Inc. Premier • Opened private nursing 2016 home SJR Betsuin • Opened Akasaka Umaya (Jing'an Tem- • Opened the JRJP Hakata • Acquired stocks in the restaurant ple) Shanghai building Manbou Corp. Construction 2009 2014 2018 2020 • Began signing up members • Opened JR Kyushu • Entered hotel • Opened Amu Plaza