The Story of Our Value Creation The Foundation of Our Value Creation Results of Value Creation Initiatives Introduction Financial and Non- History of Value Message from the Progress on Our Medium- Materiality Corporate Safety and Service Local Community Environmental Information on Segments Overview Digest Financial Highlights Creation Initiatives President Term Business Plan Governance Development of Invigoration Initiatives Financial Information Investor Information Value Creation Process Message from the CFO Feature Human Resources Dialog with Stakeholders History of Value Yufuin no Mori Sonic Express Amu Plaza Nagasaki This new station building was This limited express service Our first tilting opened in 2000, the 400th began as a high-decker train. The train runs Creation Initiatives anniversary of diplomatic train offering an expansive between Hakata relations between Japan and view from the windows. The and Oita, reaching the Netherlands. It brought service catapulted Yufuin Hot a maximum speed lots of new things to Nagasaki, Springs into the public eye. of 130km/h. and was notable for its scale. 1999 1987 •Held first JR Kyushu •First revision of timetable Walking event 1993 •Commenced electric service 1988 •Launched Stationmaster's Recommended on Hohi Main Line (between •Began operating Yufuin no Mori express Hot Springs, a new travel product Kumamoto and Higo-Ōzu) (Ekicho Osusume no Yu) 1996 2000 •Opened Miyazaki •Completed the general operations Railway business Airport Line system JACROS 1990 2000 1987 Related businesses 1991 1995 2001 Established Kyushu Railway Company •Commenced electric service •First fare revision •Released new 2-ride and (JR Kyushu) on the Omura Line 4-ride concession tickets (Haiki to Huis Ten Bosch) for limited express trains •Commenced electric services on Sasaguri Line and Chikuho Main Line (Fukuhoku Yutaka Line) (all of the Sasaguri Line 1992 and between Orio and •Established Train d’Or Ltd. Keisen on the Chikuho •Opened JR Uchino Country Club 1997 Main Line) •Opened Shin-Kokura Station building •Opened Hotel Blossom Fukuoka (Amu Plaza) 1990 1998 • International passenger •Opened Station Hotel Kokura ship route established Beetle 2 began sailing from Fukuoka to Busan (2 hours 55 minutes) 1995 2001 •Opened Shato Hanten, a luxury Chinese •Opened Huis Ten Bosch JR ANA Hotel •Opened Umaya in Akasaka, Tokyo restaurant •Established JR Kyushu Retail, Inc. 2000 •Established JR Kyushu Food Service Inc. •Opened Amu Plaza Nagasaki and JR Kyushu Hotel Nagasaki 1989 •Began selling MJR Sasaoka, our first condominium complex •Established JR Kyushu Fast Foods Inc. Kyushu Railway Company Integrated Report 2020 7 The Story of Our Value Creation The Foundation of Our Value Creation Results of Value Creation Initiatives Introduction Financial and Non- History of Value Message from the Progress on Our Medium- Materiality Corporate Safety and Service Local Community Environmental Information on Segments Overview Digest Financial Highlights Creation Initiatives President Term Business Plan Governance Development of Invigoration Initiatives Financial Information Investor Information Value Creation Process Message from the CFO Feature Human Resources Dialog with Stakeholders Opened JR Hakata City and Kyushu Shinkansen Ropponmatsu 421 These were our two largest projects, and the whole “Connections and resonation between people” of the JR Kyushu Group worked together to make it a was the concept for this development project, success. where we worked together with the local These new facilities saw greater exchange across a community to vitalize the Ropponmatsu area. wider area and attracted vast numbers of customers. 2008 •Launched IC card ticketing service SUGOCA 2013 2018 •Began operating the cruise train Seven •Strategic alliance with 2010 Stars in Kyushu Alibaba Group in China •Opened Safety Creation Center •Fully opened Kyushu Shinkansen line •Began operating Ibusuki no 2015 2019 Tamatebako limited express service •Began operating JRKYUSHU •Finished renovation of Mojiko SWEET TRAIN Aru Ressha Station Railway 2010 2020 2003 2011 2016 Business •Opened Kyushu Shinkansen line (between •Began operating Aso Boy! limited express service •Began operating DENCHA wire type Shin-Yatsushiro and Kagoshima-Chuo) •Began operating Let’s Take the A-Train limited battery-powered train •Began operating Hayato no Kaze, Kyushu express service •Began operating Kawasemi Yamasemi Odan Tokkyu, and Yufu DX limited limited express service 2009 express services and Nanohana DX and •Listed in the First Section of the Tokyo Isaburo/Shinpei special rapid services •Began operating SL Hitoyoshi service Stock Exchange and in the Fukuoka •Began operating Umisachi-Yamasachi limited express service Stock Exchange 2017 2007 •Opened Ropponmatsu 421 •Acquired stock in Drug Eleven Holdings Co., Ltd. 2012 •Opened the hot spring inn Hana Beppu •Acquired all stock in Caterpillar Kyushu Ltd. 2009 •Opened Okuhita Onsen UMEHIBIKI •Began signing up members 2014 for JQ CARD, the JR Kyushu •Opened JR Kyushu 2018 Group’s credit card Hotel Blossom Shinjuku •Entered hotel industry in Thailand Related Businesses 2006 2011 2016 2019 •Opened private nursing •Entered poultry farming industry and •Opened the JRJP •Opened THE BLOSSOM HIBIYA home SJR Betsuin established JR Kyushu Tamago Farm, Inc. Hakata building and THE BLOSSOM HAKATA •Opened Akasaka Umaya (Jing'an Temple) Premier 2004 Shanghai 2015 •Acquired stocks in the restaurant •Opened Amu Plaza •Opened JR Oita City and Manbou Corp. Kagoshima 2010 JR Kyushu Hotel Blossom Oita •Established JR Kyushu Farm Co., Ltd., an agricultural production company •Opened JR Hakata City Kyushu Railway Company Integrated Report 2020 8.