(Unaudited translation of "Kessan Tanshin", provided for reference only)

July 29, 2022

Financial Highlights: The First Quarter Ended June 30, 2022
1. Consolidated Financial Highlights ( from April 1, 2022 to June 30, 2022 )(All financial information has been prepared in accordance with accounting principles generally accepted in Japan)(1) Operating Results(¥Million)
Q1/FY2022

Q1/FY2021

Revenues

374,783

288,874

Operating profit

23,597

8,042

Ordinary profit

284,191

104,268

Profit attributable to owners of parent

285,779

104,147(¥)

Net income per share

791.96290.07

Diluted net income per share

788.68289.28* The Company split its common share on the basis of one (1) share into three (3) shares effective April 1, 2022.
Accordingly, net income per share and diluted net income per share is calculated on the assumption that the stock split was
conducted at the beginning of the previous fiscal year ended March 31, 2022.

(2) Financial Position(¥Million)
Q1/FY2022

FY2021

Total assets

3,134,568

2,686,701

Total net assets

1,465,448

1,334,866

46.1%

47.4%

Shareholders' equity / Total assets* Shareholders' Equity is defined as follows.

Shareholders' Equity = Total Net Assets - ( Share option + Non-controlling interests )（¥）

2. Dividends
Dividend per share
Q3
Year -end

Q1

Q2

Total

FY2021―300.00―900.001,200.00

FY2022

―

―

―

―

―

FY2022 (Forecast)―

300.00―200.00500.00* The Company split its common share on the basis of one (1) share into three (3) shares effective April 1, 2022.
Accordingly, the dividends per share for the fiscal year ended March 31, 2022 represent the actual amount of dividends before thestock split.

1

(Unaudited translation of "Kessan Tanshin", provided for reference only)

July 29, 2022

3. Forecast for the Fiscal Year Ending March 31, 2023(¥Million)
1H/FY2022

FY2022

Revenues

770,000

1,470,000

Operating profit

47,00070,000Ordinary profit

500,000

710,000

Profit attributable to owners of parent

500,000

700,000(¥)

1H/FY2022
Net income per share

1,385.42

FY2022
1,939.37* Net income per share for the fiscal year 2022 is calculated based on the number of shares after the issuance of new shares regarding
the following three cases:(i) Notice on issuance of new shares to directors/executive officers of subsidiaries of the company and employees of the company
as fiscal
year 2022 non-performance-linked restricted stock compensation
The number of shares issued on the payment deadline of July 21st, 2022: 20,100 shares
The number of shares issued on the payment deadline of August 26th, 2022: 33,000 shares(ii) Notice on issuance of new shares to non-executive directors of the company as fiscal year 2022 non-performance-linked
restricted
stock compensation
The number of shares issued on the payment deadline of July 21st, 2022: 1,485 shares(iii) Notice on issuance of new shares to executive directors and executive officers of the company as fiscal year 2021 performancelinked stock compensation
The number of shares issued on the payment deadline of July 21st, 2022: 70,482 shares(The total number of new shares issued for (i)~(iii) is 125,067 shares)

2

(Unaudited translation of "Kessan Tanshin", provided for reference only)

July 29, 2022

4. Business Performance(1) Analysis of Operating Results(¥ Billion)
Three months

From April 1, 2021 toJune 30, 2021
Revenue

From April 1, 2022 toJune 30, 2022

Year-on-year comparison /Variance

288.8

374.7

85.9

/

29.7%

Operating profit

8.0

23.5

15.5

/

193.4%

Ordinary profit

104.2

284.1

179.9

/

172.6%

Profit attributable toowners of parent

104.1

285.7

181.6

/

174.4%

Exchange rate

¥108.77/US$¥125.29/US$¥16.52/US$

Bunker price*

US$497/MT

US$914/MT

US$417/MT*Average price for all the major fuel grades
We recorded revenue of ¥374.7 billion, an operating profit of ¥23.5 billion, an ordinary profit of ¥284.1
billion and profit attributable to owners of parent of ¥285.7 billion. We recorded ¥242.7 billion of equity in net
earnings of affiliated companies in non-operating income, mainly due to a significant increase in earnings at
OCEAN NETWORK EXPRESS PTE. LTD. (ONE), an equity method affiliate. The amount of equity in net
earnings of affiliated companies we recorded which was attributable to ONE was ¥232.9 billion. In addition,
the rapid depreciation of the yen during the fiscal year resulted in a significant increase in revenues in eachsegment, including freight rates and charter fees.
The following is a summary of business conditions including revenue and ordinary profit/loss per businesssegment.
Upper: Segment Revenue, Lower: Segment Ordinary Profit
Three months

Dry Bulk Business
Energy Business
Product Transport BusinessContainerships
Real Estate Business
Associated Businesses
Others(¥ Billion)
Year-on-year comparison /Variance

From April 1, 2021 toJune 30, 2021

From April 1, 2022 toJune 30, 2022

78.3

105.2

26.8

/

34.3%

6.5

18.5

12.0

/

182.9%

68.8

85.6

16.7

/

24.3%

4.3

9.5

5.1

/

117.6%

117.8

156.3

38.5

/

32.7%

90.1

249.8

159.6

/

177.0%

14.4

13.0

(1.3)

/

(9.6%)

87.2

234.4

147.1

/

168.7%

9.6

9.8

0.1

/

1.9%

3.2

2.5

(0.7)

/

(21.5%)

10.0

13.6

3.6

/

36.3%

(0.8)

(0.0)

0.7

/

-%

4.0

4.0

(0.0)

/

(1.0%)

0.8

0.4

(0.3)

/

(44.7%)

3

(Unaudited translation of "Kessan Tanshin", provided for reference only)

July 29, 2022

(A) Dry Bulk Business
The Capesize bulker market and Panamax bulker market started off at a low level, reflecting the delayed
recovery of Brazilian iron ore shipments due to bad weather and the lockdown in Shanghai meant to reduce thespread of COVID-19 infections. In mid-May, surging transport demand for coal to India pushed the charter rate
up to around US$30,000 per day for both Capesize bulkers and Panamax bulkers. However, after the slack incoal transport demand, which eased the tight vessel supply-demand balance, the charter rate was reduced toaround $20,000 per day.
In addition to generally steady market conditions for Capesize bulker and Panamax bulker, an improved
market in both outbound paper pulp transport and inbound general bulker cargoes for open hatch vessels
contributed to profit. As a result, the dry bulk business posted a year-on-year increase in profit in the first threemonths of the fiscal year.
(B) Energy Business<Tankers>
In the very large crude oil carrier (VLCC) market, conditions remained difficult. In line with the growth inoil demand as the global economy recovers, OPEC gradually began phasing out its coordinated output cuts andcargo movement was on a recovery path. However, the VLCC tanker remained oversupplied. Meanwhile,
product tanker market remained buoyant due to an increase in ton miles driven by the procurement ofalternatives to petroleum products from Russia. Under these market conditions, the tanker business as a whole
posted a year-on-year rise in profit, thanks to its efforts for the stable fulfillment of long-term contracts and cost
reduction.
<Offshore>
The FPSO business reported a year-on-year increase in profit by securing stable profit through existing longterm charter contracts, and also thanks to the contribution of a newly commencing project.
<Liquefied gas>
The LNG carrier division continued to generate stable profit through existing long-term charter contracts andreported profit mostly unchanged from the same period a year earlier. The FSRU business posted a year-onyear increase in profit as a result of additional operation brought by the conclusion of a new contract for an
existing vessel.
(C) Product Transport Business<Containerships>
At ONE, the Company’s equity-method affiliate, the containership business continues to be affected by theturmoil within global supply chains. Spot freight rates remained considerably higher than the year-ago level,
despite the impact of the softening supply-demand balance caused mainly by the lockdown in Shanghai
designed to reduce the spread of COVID-19 infections. Term contracts, reflecting the high freight rate levels sofar, also pushed up profit. As a result of the above, the containerships business recorded a significant year-onyear increase in profit.
<Car Carriers>
Although supply chain disruptions such as global semiconductor supply shortages and automobile
component supply shortages caused by the impact of lockdowns in Shanghai continued to impact the
production and shipment of completed cars, transportation volume of completed cars was mostly unchanged
year on year due to the effort of flexible and agile tonnage adjustments and route changes. As the supplydemand environment improved, we worked to pursue more efficient operations, resulting in a significant
increasement in earnings compared with the same period of the previous fiscal year.
<Ferries and Coastal RoRo Ships>
As there was no declaration of a state of emergency nor quasi-state of emergency, passenger numbers
showed considerable improvement, reflecting success at tapping into demand during long holidays, forexample. The logistics business also remained on the recovery path and the ferries and coastal RoRo ships
business overall posted considerable year-on-year growth in revenue and profit.
(D) Real Estate Business
The real estate business secured stable profit, despite a year-on-year drop in profits associated with thereconstruction of some buildings held by DAIBIRU CORPORATION, the core company in the Group’s realestate business.
(E) Associated Businesses
The cruise ship business achieved improved profitability year on year due to an increase in operations. The
tugboat business posted a year-on-year decline in profit, largely because of the rising price of fuel, althoughconditions varied from company to company and from port to port.
4

(Unaudited translation of "Kessan Tanshin", provided for reference only)

July 29, 2022

(F) Others
Other businesses, which are mainly cost centers, include ship operations, ship management, ship charteringand financing. Ordinary profit in this segment was almost flat year on year.
(2) Outlook for FY2022(For consolidated cumulative second quarter of the fiscal year 2022)
Previous outlook
Current outlook(As announced on(As of announcement ofJuly 21, 2022)
Q1 financial results)(¥ Billion)
Year-on-yearcomparison / Variance

Revenue

770.0

770.0

-

/

-%

Operating profit

47.0

47.0

-

/

-%

Ordinary profit
Profit attributable to ownersof parent

500.0

500.0

-

/

-%

500.0

500.0

-

/

-%

¥125.00/US$¥125.00/US$--

US$580/MT
US$1,030/MT(Assumptions for the 1st half)-

Exchange rate
Bunker price*1
Compliant fuel price*2(For consolidated full fiscal year 2022)
Previous outlook(As announced on
July 21, 2022)
Revenue
1,470.0
Operating profit
70.0
Ordinary profit
710.0
Profit attributable to owners
700.0
of parent

Current outlook(As of announcement of
Q1 financial results)
1,470.0
70.0
710.0
700.0

(¥ Billion)
Year-on-yearcomparison / Variance
-

/
/
/

-%
-%
-%

-

/

-%

Exchange rate

¥125.00/US$¥125.00/US$-

Bunker price*1-

US$560/MT-

Compliant fuel price*2-

US$940/MT-(Assumptions for the 2nd half)*1 HSFO (High Sulfur Fuel Oil) average price*2 VLSFO (Very Low Sulfur Fuel Oil) average price(A) Dry Bulk Business
Whilst the impact of global economic slowdown is a concern, the Capesize bulker market is expected toremain firm, with the usual growth in Brazilian iron ore shipments expected, in addition to solid shipments ofiron ore from Australia. However, we believe that attention needs to be paid to developments in terms of theChinese government’s economic stimulus measures and port congestion due to adverse weather. The effects ofthe economic slowdown, especially the decline in demand for transportation to China is the concern for the
Panamax bulker market but is expected to be supported to some extent by coal and grain shipments. If demand
for alternative transportation to replace cargoes from Russia and Ukraine arise, this could be a positive factor tothe market. However, in view of the fact that actual alternative transportation demand during the first threemonths under review was limited, we expect it to remain limited in the future as well.

5

(Unaudited translation of "Kessan Tanshin", provided for reference only)

July 29, 2022

(B) Energy BusinessIn the tanker business, the VLCC charter rate is expected to improve on the back of an increase in shipments
associated with the end of coordinated output cuts by OPEC and improvement in the vessel supply-demandbalance with the withdrawal of old vessels. Meanwhile, in the product tanker market, we expect the charter rate
to remain at a high level as cargo movements increase supported by the firm demand for China and SouthAmerica in addition to the demand to replace Russian petroleum products. On both the VLCC market and the
product tanker market, if the global economy slows down because of interest rate hikes around the world,
demand could fall, leading to decreased cargo movements and a weaker market.
The offshore business is expected to continue generating stable profit, with the delivery of another newly
built FPSO vessel expected during FY2022.
In the liquefied gas business, the LNG carrier business will continue to maintain stable profit even thoughprofitability is expected to decrease year on year as a result of the expiry of an existing long-term contract.
Meanwhile, we expect the FSRU business to report higher profit as a result of the commencement of a new
project and also the additional operation brought by the conclusion of a new contract for an existing vessel.
(C) Product Transport BusinessIn the containerships business, liftings and freight rate levels are assumed to soften given the ease in ports
and inland transport chains, rising inventories of consumer goods in Europe and the United States, and as wellas increasing inflation and global instability.
Regarding the car carrier business, we will continue flexible initiatives in line with cargo movements while
monitoring the impact of semiconductor shortages, the Russia-Ukraine crisis and global inflation on sales andproduction of completed cars.
For terminal and logistic business, while supply chain disruptions are gradually returning to normal, thecargo movement outlook is difficult due to the recent rise in raw materials prices and inflation.
In the business of ferries and coastal RoRo ships, we anticipate a recovery of passenger demands in thepassenger business on an assumption that restrictions on activities to reduce the spread of COVID-19 infections
will be eased. We expect the logistics business to remain on a recovery path. However, in both the passenger
business and the logistics business, the impact of further outbreaks of COVID-19 and the Russia-Ukraine crisison transportation demand in Japan is a cause for concern.
(D) Real Estate Business
The real estate business is expected to report a decline in rental income as a result of the reconstruction ofproperty owned but will continue to post solid profit mainly due to the rising occupancy rates of overseas
properties.
(E) Associated Businesses
The cruise ship business is expected to see improvement in profitability as the COVID-19 pandemic
gradually comes to an end.

5. Financial Position
Total assets as of June 30, 2022 increased by ¥ 447.8 billion compared to the balance as of the end of the previous
fiscal year, to ¥ 3,134.5 billion. This was primarily due to the increase in Investment securities.
Total liabilities as of June 30, 2022 increased by ¥ 317.2 billion compared to the balance as of the end of theprevious fiscal year, to ¥ 1,669.1 billion. This was primarily due to the increase in Short-term bank loans.
Total net assets as of June 30, 2022 increased by ¥ 130.5 billion compared to the balance as of the end of theprevious fiscal year, to ¥ 1,465.4 billion. This was primarily due to the increase in Foreign currency translation
adjustments.
As a result, shareholders’ equity ratio decreased by 1.3% compared to the ratio as of the end of the previous fiscal
year, to 46.1%.

6

(Unaudited translation of "Kessan Tanshin", provided for reference only)

July 29, 2022

6. Consolidated Financial Statements(All financial information has been prepared in accordance with accounting principles generally accepted in Japan)(1) Consolidated Balance Sheets(¥Million)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Trade receivables
Contract assets
Marketable securities
Inventories
Deferred and prepaid expenses
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Vessels
Buildings and structures
Equipment and others
Furniture and fixtures
Land
Construction in progress
Other tangible fixed assets
Total tangible fixed assets
Intangible fixed assets
Investments and other assets
Investment securities
Long-term loans receivable
Long-term prepaid expenses
Net defined benefit assets
Deferred tax assets
Other investments and other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets

7

As of June 30, 2022

99,878109,891
15,6011,000
46,085
21,54558,748(1,298)351,452

84,927
138,625
11,493
1,000
63,27425,03898,557(1,718)421,197

632,105
127,954
25,2905,529
254,594
59,9885,688
1,111,152
36,624645,600
126,535
26,1685,714
254,087
77,688
6,671
1,142,466
35,896

978,848
110,104
8,562
18,9571,217
93,343(23,562)
1,187,472
2,335,249
2,686,701

1,216,713
119,236
8,664
19,036
1,276
195,340(25,261)
1,535,007
2,713,370
3,134,568

(Unaudited translation of "Kessan Tanshin", provided for reference only)

July 29, 2022(¥Million)
As of March 31, 2022
Liabilities
Current liabilities
Trade payables
Short-term bonds
Short-term bank loans
Commercial papers
Accrued income taxes
Advances received
Contract liabilities
Provision for bonuses
Other current liabilities
Total current liabilities
Fixed liabilities
Bonds
Long-term bank loans
Lease liabilities
Deferred tax liabilities
Net defined benefit liabilities
Provision for directors' and corporate auditors'
retirement benefits
Provision for periodic drydocking
Other fixed liabilities
Total fixed liabilities
Total liabilities
Net assets
Owners' equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total owners' equity
Accumulated other comprehensive income
Unrealized holding gains on available-for-salesecurities, net of tax
Unrealized gains on hedging derivatives, net oftax
Foreign currency translation adjustments
Remeasurements of defined benefit plans, net oftax
Total accumulated other comprehensive income
Share option
Non-controlling interests
Total net assets
Total liabilities and net assets

8

As of June 30, 2022

96,03423,700
192,170
8,000
8,624
2,188
23,1259,433
50,726
414,002125,898
18,700364,049
54,0004,343
2,237
28,366
5,570
97,592700,758

189,500
575,101
10,80374,516
9,355

189,500
522,960
10,97080,287
9,518

1,485

1,069

15,836
61,233
937,832
1,351,835

17,470136,583
968,361
1,669,119

65,40023,0901,091,250(2,267)
1,177,474

65,400－1,169,814(2,175)
1,233,039

34,01035,33627,161

58,31929,232

113,366

6,691

6,437

97,095781
59,514
1,334,866
2,686,701

213,459759
18,1901,465,448
3,134,568

(Unaudited translation of "Kessan Tanshin", provided for reference only)

July 29, 2022

(2) Consolidated Statements of Income(¥Million)
FY2021(Apr. 1, 2021 - June 30, 2021)

FY2022(Apr. 1, 2022 - June 30, 2022)

288,874
259,355
29,51921,476
8,042

374,783
318,296
56,48732,88923,597

1,848
2,184
91,2954,980
527
100,836

2,493
2,962
242,741
12,581
3,661
264,440

3,004
1,605
4,609
104,268

2,746
1,099
3,846
284,191

2,369
1,936
4,305

5,106
1,109
6,216

601
1,549
2,150

26
1,557
1,583

106,423

288,824

528
105,895
1,747
104,147

1,272
287,551
1,772
285,779

Shipping and other revenues
Shipping and other expenses
Gross operating income
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Equity in earnings of affiliated companies
Foreign exchange gains
OthersTotal non-operating income
Non-operating expenses
Interest expenses
OthersTotal non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of fixed assets
OthersTotal extraordinary income
Extraordinary losses
Loss on sale of fixed assets
OthersTotal extraordinary losses
Income before income taxes and non-controllinginterests
Income taxes
Net income
Profit attributable to non-controlling interests
Profit attributable to owners of parent

9

(Unaudited translation of "Kessan Tanshin", provided for reference only)

July 29, 2022

(3) Consolidated Statements of Comprehensive Income(¥Million)

FY2021(Apr. 1, 2021 - June. 30, 2021)

FY2022(Apr. 1, 2022 - June. 30, 2022)

105,895

287,551(2,299)

1,351

4,354
16,709(312)

14,133
8,143(254)

20,31595,01838,766
144,661

118,391
405,943

141,483

402,142

3,178

3,800

Net income
Other comprehensive income
Unrealized holding gains on available-for-salesecurities, net of tax
Unrealized gains on hedging derivatives, net of tax
Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

10(Unaudited translation of "Kessan Tanshin", provided for reference only)

July 29, 2022

[NOTE](Notes in the Event of Significant Changes in Shareholders’ Capital)
Since the balance of capital surplus turned negative at the end of the first Quarter of the fiscal year due toadditional purchase of the shares of consolidated subsidiaries, capital surplus was reduced to nil whereby thenegative balance was deducted from retained earnings in accordance with “Accounting Standard for Consolidated
Financial Statements” (ASBJ Statement No.22, September 13, 2013.).
(Changes in Accounting Standards)(Adoption of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Company has adopted “Implementation Guidance on Accounting Standard for Fair Value Measurement”(ASBJ Guidance No. 31, June 17, 2021.) from the beginning of the first Quarter of the fiscal year, and in accordancewith the transitional treatment prescribed in Paragraph 27-2 of “Implementation Guidance on Accounting Standard
for Fair Value Measurement”, the new accounting policy prescribed by “Implementation Guidance on AccountingStandard for Fair Value Measurement” will be adopted prospectively. There is no impact on the quarterly
consolidated financial statements.
(Adoption of ACS 842, Lease Accounting)Some of consolidated foreign subsidiaries of the Company adopting Generally Accepted Accounting Principles
in the U.S. have adopted ASC 842, Lease Accounting, effective from the Quarter of the fiscal year ending March
31, 2023. In accordance with the adoption of the standard, the Company decided to record leasing transactions of
the lessee of the subsidiaries, for all leases in principle, in Assets and Liabilities on the quarterly Balance Sheet. In
adoption of the standard, the subsidiaries have adopted a method that recognizes the cumulative effect on the dateof initial application, which is permitted as a transitional treatment.
As a result, “Other investments and other assets” in Investments and other assets increased by ¥ 82,761 million,“Other current liabilities” in Current liabilities increased by ¥ 6,987 million, and “Other fixed liabilities” in Fixedliabilities increased by ¥ 75,774 million at the beginning of the fiscal year. There is no impact on the quarterly
consolidated statements of income in the first Quarter of the fiscal year ending March 31, 2023.
(Changes in Method of Evaluating Inventories)
The Company and some of its consolidated subsidiaries have adopted the cost method based on the moving
average method for method of evaluating raw materials and supplies included in inventories. However, the Company
changed the cost method to the first-in first-out method effective from the first Quarter of the fiscal year ending
March 31, 2023.
This change in the evaluation method resulted from our judgment that by taking the opportunity to change thecore system, the Company can more appropriately evaluate inventories and calculate periodic profit or loss withinventory valuation by using the first-in first-out method.
However, because it is impossible in practice to calculate inventories by the first-in first-out method due to thedifference in the recording method of inventory recipient and payment data for past fiscal years from the new coresystem and difficult to calculate the cumulative effect in case it is adopted retrospectively, the Company has adopted
the cost method based on the first-in first-out method effective from the beginning of the fiscal year to the future,recognizing book value at the end of the previous consolidated fiscal year as the beginning balance of the first
Quarter of the fiscal year.
As a result, inventories for the first Quarter of the fiscal year increased by ¥ 3,455 million in comparison to theconventional method, and shipping and other expenses for the first Quarter of the fiscal year decreased by the sameamount. Consequently, operating profit, ordinary profit, and income before income taxes and non-controllinginterests for the Quarter of the fiscal year each increased by the same amount.

11

(Unaudited translation of "Kessan Tanshin", provided for reference only)

July 29, 2022

(4) Segment Information
Business segment information:(￥Million)

Reportable Segment
Product Transport Business

Q1/ FY2021(Apr.1 - Jun.30, 2021)

Dry Bulk
Business

EnergyBusiness

78,397

68,855Car Carriers,
Terminal andContainer Logistics, Real Estate
Ferries andships
Business
Coastal RoRo
ships

Adjustment*2

Consolidated*4

288,874－

288,874

Others*1

Total

AssociatedBusinesses

Sub Total

10,008284,825

4,049

Revenues
1.Revenues fromexternal customers
2.Inter-segment
revenues
Total Revenues
Segment profit (loss)

14,447

103,450

9,665

0

2,259

69

947

867

4,958

9,102

2,242

11,345(11,345)－

78,397
6,565

71,114
4,370

14,51687,240104,398
2,957

10,532
3,270

14,967(874)

293,927
103,5296,292
890

300,219
104,420(11,345)(151)

288,874
104,268(￥Million)

Reportable Segment
Product Transport Business

Q1/ FY2022(Apr.1 - Jun.30, 2022)

Dry Bulk
Business

EnergyBusiness

105,266

85,618Car Carriers,
Terminal andContainer Logistics, Real Estate
Ferries andships
Business
Coastal RoRo
ships

Adjustment*3

Consolidated*4374,783－

374,783

Others*1

Total

AssociatedBusinesses

Sub Total

13,643

370,775

4,007

Revenues
1.Revenues fromexternal customers
2.Inter-segment
revenues
Total Revenues
Segment profit (loss)

13,064

143,333

9,848

34

2,481

67

938

751

5,510

9,784

3,408

13,193(13,193)－

105,301
18,572

88,1009,509

13,132
234,406

144,271
15,425

10,6002,565

19,153(91)

380,559
280,3887,416
492

387,976
280,881(13,193)
3,310

374,783
284,191* 1. "Others" primarily consists of business segments that are not included in reportable segments, such as the ship operations
business, the ship management business, the ship chartering business and the financing business.
* 2. Adjustment in Segment profit (loss) of ¥ -151 million include the following:¥ -1,576 million of corporate profit which is not allocated to segments, ¥ 1,460 million of adjustment for
management accounting and ¥ -35 million of inter-segment transaction elimination.
* 3. Adjustment in Segment profit (loss) of ¥ 3,310 million include the following:¥ 617 million of corporate profit which is not allocated to segments, ¥ 918 million of adjustment for
management accounting and ¥ 1,773 million of inter-segment transaction elimination.
* 4. Segment profit (loss) corresponds to ordinary profit in the consolidated statements of income.
* 5. Notes to changes in repotable segments etc:(i)“The Terminal and Logistics Business,” which was conventionally presented in “the Containerships Business,”has been included in the conventional “Car Carriers, Ferries and Coastal RoRo Ships Businesses,”in order to clearly disclose the information related to “the Containerships Business,”which has a big impact on the Company Group’s operating results.
As a result, the name of the conventional segment “Car Carriers, Ferries and Coastal RoRo Ships Businesses,”
was changed to the “Car Carriers, Terminal and Logistics, Ferries and Coastal RoRo Ships Businesses.”.
(ii)“The Real Estate Business,” which was conventionally presented in “Associated Businesses,” has been disclosed independently as a reportable segment,
because the significance of “the Real Estate Business” increased as Daibiru Corporation became a wholly owned subsidiary of the Company.
(iii) The name of "Energy and Offshore Business" has been changed to "Energy Business". This change has no impact on segment information.
In addition, Revenues and Segment profit (loss) during the first Quarter of the previous fiscal year are reclassified or adjusted
to conform to the presentation for the fiscal year.
* 6. As stated in (Changes in Method of Evaluating Inventories), the Company and some of its consolidated subsidiaries have adopted
the cost method based on the moving average method for method of evaluating raw materials and supplies included in inventories.
However, the Company changed the cost method to the first-in first-out method effective from the first Quarter of the fiscal year ending March 31, 2023.
Since it is impossible in practice to calculate the cumulative effect in case it is adopted retrospectively,
the Company has adopted the cost method based on the first-in first-out method effective from the beginning of the fiscal year to the future,recognizing book value at the end of the previous consolidated fiscal year as the beginning balance of the first Quarter of the fiscal year.
Due to the change, compared with the previous method, Segment profit (loss) for the first three months under review increased¥ 2,040 million in the Dry Bulk Business, ¥ 498 million in the Energy Business, ¥ 0 million in the Container ships Business,¥ 906 million in the Car Carriers, Terminal and Logistics, Ferries and Coastal RoRo Ships Business, and ¥ 9 million in Others.
There is no impact on Segment profit (loss) in Real Estate Business and Associated Businesses.

12

(Unaudited translation of "Kessan Tanshin", provided for reference only)

July 29, 2022

* 7. We have changed the allocation of general and administrative expenses to company-wide profit and loss
to appropriately reflect expenses in each segment. This new method of allocating general and administrative expenses is usedfrom the first quarter under review.
In comparison with the results based on the previous method, Segment profit (loss) for the first three months under review decreased ¥ 537 million
in the Dry Bulk Business and ¥ 106 million in the Energy Business, increased ¥ 742 million in the Containerships Business,¥ 386 million in the Car Carriers, Terminal and Logistics, Ferries and Coastal RoRo Ships Businesses,
decreased ¥ 299 million in Real Estate Business, ¥ 272 million in Associated Businesses, and increased ¥ 22 million in Others,¥ 64 million in Adjustment in Segment profit (loss).

[REFERENCE PURPOSE ONLY]
Please note that this document has been translated from the Japanese original for reference purposes only and the financial
statements contained is unaudited.
In case of any discrepancy or inconsistency between this document and the Japanese original, the latter shall prevail.

13

(Unaudited translation of "Kessan Tanshin", provided for reference only)

July 29, 2022

[ Supplement ]1. Review of Quarterly Results<FY2022>
Q1
Apr-Jun, 2022

Q2
Jul-Sep, 2022

Q3
Oct-Dec, 2022

Q4
Jan-Mar, 2023

Q1
Apr-Jun, 2021

Q2
Jul-Sep, 2021

Q3
Oct-Dec, 2021

Q4
Jan-Mar, 2022

288,874

308,213331,413

340,810

Operating profit (loss)

8,042

12,35022,02012,593

Ordinary profit (loss)

104,268

167,575

215,848

234,088

Income (Loss) before income taxes

106,423

173,650

219,919

233,001

Profit (Loss) attributable to owners of parent

104,147

170,701

212,339

221,632

Net income (loss)* per share[￥]

290.07474.79589.73614.82[￥ Millions]

2,217,926

2,415,856

2,556,362

2,686,701

827,605

997,357

1,185,367

1,334,866

Revenues[￥ Millions]

374,783

Operating profit (loss)

23,597

Ordinary profit (loss)

284,191

Income (Loss) before income taxes

288,824

Profit (Loss) attributable to owners of parent

285,779

Net income (loss)* per share[￥]

791.96[￥ Millions]

3,134,568

Total Assets
Total Net Assets

1,465,448*Profit (Loss) attributable to owners of parent<FY2021>

Revenues

Total Assets[￥ Millions]

Total Net Assets*Profit (Loss) attributable to owners of parent

Note: The Company split its common stock on the basis of three (3) shares per share effective April 1, 2022.
Accordingly, net income per share is calculated on the assumption that the split of shares was conducted at the
beginning of the previous fiscal year ended March 31, 2022.

14

(Unaudited translation of "Kessan Tanshin", provided for reference only)

July 29, 2022

2. Depreciation and Amortization(￥ Millions)Three months ended
Jun.30, 2021

Three months ended
Jun.30, 2022

Vessels

15,56816,436867

62,902Others

5,735

6,334

599

23,496

Total

21,303

22,7701,466

86,399As of Mar.31, 2022

As of Jun.30, 2022

Bank loans

767,271887,010

119,738

779,625

Bonds

213,200

208,200(5,000)213,200

Commercial paper

8,000

54,00046,00030,000

Others12,226

12,444218

20,237Total

1,000,697

1,161,655

160,957

1,043,063

Increase / Decrease

FY2021

3. Interest-bearing Debt(￥ Millions)
Increase / Decrease

4. Fleet Capacity (MOL and consolidated subsidiaries)
Dry bulkers
No.of ships

1,000MT

No.of ships

1,000MT

No.of ships

Owned

44

4,780

65

8,631

22

Chartered267

24,128

82

4,119

20

-

1

35

Others-(No. of ships and deadweight ton)
Car carriersContainerships

LNG carriers*1

Tankers

1,000MT-As of Jun.30, 2021

No.of ships

1,000MT

No.of ships

1,000MT

1,440

48

856

16

1,290

1,291

43

718

31

3,408

-

-

-

-

-

As of Jun.30, 2022

311

28,908148

12,785

42

2,730

91

1,575

47

4,698

As of Mar.31, 2022

319

28,800162

13,413

29

2,106

93

1,614

47

4,698

Ferries &Coastal RoRo ships

Passenger ships

Others*2

Total

No.of ships

1,000MT

No.of ships

1,000MT

No.of ships

1,000MT

Owned

10

54

1

4

7

47

213

17,102Chartered

531

Others--No.of ships

1,000MT

-

-

24

74

472

33,768

-

-

1

1

2

36

As of Jun.30, 2022

15

85

1

4

32

121

687

50,906

As of Mar.31, 2022

15

85

1

4

32

121

698

50,842*1 Including LPG/Ammonia ships in addition to LNGC, VLEC, LNG bunkering ships, FSRU from FY2022 1st quarter*2 Including coastal ships (excluding coastal RoRo ships)

5. Exchange Rates
Three months ended
Jun.30, 2021

Three months ended
Jun.30, 2022

Average rates¥108.77¥125.29¥16.52[15.2%]JPY Depreciated¥111.52

Term-end rates¥110.58¥136.68¥26.10[23.6%]JPY Depreciated¥122.39

FY2021

ChangeRemark: "Average rates" are average of monthly corporate rates in each term, while "term-end rates" are TTM rates on the last day of each term.

<Overseas subsidiaries>
Term-end rates

As of Mar.31, 2021

As of Mar.31, 2022

¥110.71¥122.39

Change¥11.68[10.6%]

6. Average Bunker Prices

Purchase Prices

Three months ended
Jun.30, 2021

Three months ended
Jun.30, 2022

Increase / Decrease

US$497/MT

US$914/MT

US$417/MT
15

As of Dec.31, 2021
JPY Depreciated¥115.02

(Unaudited translation of "Kessan Tanshin", provided for reference only)

July 29, 2022

7．Market Information(1) Dry Bulker Market (Baltic Dry Index)(Index: January 1985 = 1,000)

Source : Clarkson Research

Average
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
1,658 1,500
2,018
2,475 2,965 2,932 3,188 3,720 4,288
4,820 2,780
2,832
2021
2,931
2022
2,269
1,761 1,835
2,464
2,220 2,943 2,389
Remark) The Graph and the table have different fluctuation ranges as the graph reflects daily figures while the table shows monthly averages.
Monthly Average(2) Tanker Market (Daily Earnings) : VLCC AG/Japan trade (US$Charter Rate/day)

Source : Clarkson Research

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Average2021
8,221 1,639 -1,229
4,243 4,131
92 -1,800-26 1,952
6,201 5,259
4,024
2,726
2022
-1,128 -5,587 -6,886
3,493 -7,435 -13,042-5,098Remark) The Graph and the table have different fluctuation ranges as the graph reflects weekly figures while the table shows monthly averages.
Monthly Average(3) Containership Market (China Containerized Freight Index) (Index: January 1st 1998 = 1,000)

Source : Clarkson Research

Note: CCFI reflects the freight rate trend for container exports from China only, which does not always match the overall trend for container exports from Asia.

16