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

October 31,2023

Financial Highlights: The Second Quarter Ended September 30, 2023
1. Consolidated Financial Highlights ( from April 1, 2023 to September 30, 2023 )(All financial information has been prepared in accordance with accounting principles generally accepted in Japan)(1) Operating Results(¥Million)
Q2/FY2023

Q2/FY2022

Revenues

790,102821,337

Operating profit

49,30056,087

Ordinary profit

154,531599,795

Profit attributable to owners of parent

150,792

601,523(¥)

Net income per share

416.74

1,666.39

Diluted net income per share

415.66

1,659.94(2) Financial Position(¥Million)
Q2/FY2023

FY2022

Total assets

3,954,754

3,564,247

Total net assets

2,174,320

1,937,621

54.6%

54.0%

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
Q1

Q2

Q3

Year -end

FY2022―300.00―260.00560.00

FY2023―110.00―――

FY2023 (Forecast)

―

―

―

80.00

190.001

Total

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

October 31,2023

3. Forecast for the Fiscal Year Ending March 31, 2024(¥Million)
FY2023
Revenues

1,590,000

Operating profit

90,000Ordinary profit

220,000

Profit attributable to owners of parent

220,000(¥)

Net income per share

607.882

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

October 31,2023

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

Year-on-year comparison /Variance

From April 1, 2022 toSeptember 30, 2022

From April 1, 2023 to
September 30, 2023

Revenue

821.3

790.1

(31.2)/(3.8%)

Operating profit

56.0

49.3

(6.7)

/

(12.1%)

Ordinary profit

599.7

154.5

(445.2)/(74.2%)

Profit attributable toowners of parent

601.5

150.7

(450.7)/(74.9%)

Exchange rate

¥130.98/US$¥138.71/US$¥7.73/US$

Bunker price*

US$859/MT

US$610/MT

US$(249)/MT*Average price for all the major fuel grades
The average exchange rate against the dollar for the first half of the current fiscal year decreased by¥7.73/US$ to ¥138.71/US$ from the same period of the previous fiscal year. The average bunker price for the
first half of the current fiscal year decreased by US$249/MT to US$610/MT from the same period of theprevious fiscal year
We recorded revenue of ¥790.1 billion, an operating profit of ¥49.3 billion, an ordinary profit of ¥154.5
billion and profit attributable to owners of parent of ¥150.7 billion.
The following is a summary of business conditions including revenue and ordinary profit/loss per businesssegment.
Upper: Segment Revenue, Lower: Segment Ordinary Profit(¥ Billion)

Six months

Year-on-year comparison /Variance

From April 1, 2022 toSeptember 30, 2022

From April 1, 2023 to
September 30, 2023

235.5

189.8

(45.6)/(19.4%)

34.5

32.1

(2.3)

/

(6.9%)

189.1

214.9

25.8

/

13.7%

22.1

37.6

15.5

/

70.0%

313.2

299.2

(13.9)/(4.5%)

536.7

71.6

(465.1)/(86.7%)

26.5

28.0

1.5

/

5.7%

494.7

33.3

(461.3)/(93.2%)

Wellbeing & LifestyleBusiness

50.9

52.2

1.2

/

2.4%

4.1

4.9

0.8

/

20.1%

Real property
Business

19.7

19.9

0.1

4.7

4.5

(0.2)

/

(4.2%)

23.8

23.3

(0.5)

/

(2.2%)

1.5

1.2

(0.3)

/

(21.5%)

8.6

10.5

1.8

/

21.9%

0.1

2.6

2.5

/

2,311.8%

Dry Bulk Business
Energy Business
Product Transport
Business
Containerships

Associated Businesses
Others3

1.0%

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

October 31,2023(A) Dry Bulk Business
The Capesize bulker market rates remained steady on strong Australian and Brazilian iron ore shipments.
The market rates fell temporarily at the end of August but then rebounded with the end of the rainy season anddemand for coal shipments to India and China. Meanwhile, the market rates for Panamax, Handymax, andsmaller vessels temporarily recovered from August due to a slight improvement in vessel supply and demandwith relatively firm coal and grain shipments; however, pessimism over China’s economic recovery dampened
confidence and the market rates lacked buoyancy.
Under these market conditions, the dry bulk business posted a year-on-year decline in profit, falling short of
the high market conditions of the previous year, despite the effect of the reversal of an allowance for doubtful
accounts recorded in the past at one of our consolidated subsidiaries, in relation to a loan to GEARBULKHOLDING AG, an equity-method affiliate, as a result of improvement in this company’s financial standing.
(B) Energy Business<Tankers>
The very large crude carrier (VLCC) market rates remained in a downward trend, reflecting China’s
faltering economic recovery and its drawing down of crude oil inventories, in addition to the slackening
supply and demand becoming the norm due to the lackluster shipments caused by OPEC plus oil output cuts.
Meanwhile, product tanker market rates remained at a high level on the back of firm demand for petroleum
products, although there were times when shipments weakened due to scheduled maintenance at oil refineries
in the Far East. Chemical tankers also performed strongly, with market rates remaining at a high level.
In this market environment, profit increased year-on-year as a result of stable fulfilment of existing longterm contracts and cost reductions.
<Offshore>
The FPSO business, which has been securing stable profit through existing long-term charter contracts,
reported a year-on-year increase in profit, thanks to the start of a new charter contract.
<Liquefied gas>
The LNG carrier business generated stable profit through existing long-term charter contracts. Althoughsome long-term contracts expired, there were acquisitions of new contracts, and profit was unchanged yearon-year. In the FSRU business, profit fell year-on-year mainly due to the occurrence of one-time expenses,
despite the generation of stable revenue with the start of a new project.
(C) Product Transport Business<Containerships>
At OCEAN NETWORK EXPRESS PTE. LTD. (ONE), the Company’s equity-method affiliate, spot freightrates declined, reflecting overcapacity caused by an increase in new vessel deliveries. Term contract freightrates were also revised to this fiscal year’s rates, which reflect the market after the COVID-19 pandemic, andONE reported a sharp drop in profit year-on-year under the impact of these rates.
<Car Carriers>
With the normalization of economic activity and improvement in the supply of semiconductor and otherautomotive components, the production of completed cars recovered, pushing up shipping demand andresulting in a year-on-year increase in profit. Although port congestion in some regions led to delays indischarging operations, we achieved a year-on-year increase in transportation volume by flexibly revising
vessel allocation plans.
<Other Product Transport>
Container handling volumes in the terminal business decreased due mainly to delays at terminals on the West
Coast of North America in the overseas terminal business, despite a solid performance in the domestic terminals
business. The logistics business was less profitable, affected by weak air and sea freight rates and, as a result,
the terminal and logistics business posted lower profits than a year earlier.
(D) Wellbeing & Lifestyle Business<Real Property Business>
The real property business maintained around the same level of profit year-on-year thanks to higher property
occupancy rates, despite the increased costs associated with new property acquisitions by DAIBIRU, the corecompany in the Group’s real property business.

4

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

October 31,2023<Ferries and Coastal RoRo Ships>
The passenger business reported a sharp year-on-year increase in profit mainly thanks to the entry into
service of new LNG-fueled ferries and the boost from the National Travel Assistance Program. The cargotransportation business also achieved higher profit from a year earlier despite weak shipments for some cargoes.
<Cruise Business>
The cruise business achieved improved profitability year-on-year due to continued recovery in travellingdemand following the easing of COVID-19 restrictions.
(E) Associated Businesses
In the tugboat business, operation frequency tended to be down year-on-year, but the business posted a yearon-year increase in profit with the effects of a tugboat service fee revision.
(F) Others
Other businesses, which are mainly cost centers, include ship operations, ship management, ship charteringand financing. This segment maintained around the same level of profit year-on-year.

5

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

October 31,2023(2) Outlook for FY2023(For consolidated full fiscal year 2023)(¥ Billion)

Previous outlook(As announced on
July 31, 2023)
Revenue

Current outlook(As of announcement of
Q2 financial results)

Year-on-year
Comparison / Variance

1,530.0

1,590.0

Operating profit

100.0

90.0

Ordinary profit

220.0

220.0

- /

-%

Profit attributable toowners of parent

215.0

220.0

5.0 /

2.3%

(Assumptions for the 2nd half FY2023)(Assumptions for the 2nd half FY2023)¥130.00/US$¥141.31/US$¥11.31/US$

US$520/MT

US$560/MT

US$40/MT

US$640/MT

US$660/MT

US$20/MT

Exchange rate
Bunker price*1

Compliant fuel price *260.0 /(10.0) / (10.0) %*1 HSFO (High Sulfur Fuel Oil) average price*2 VLSFO (Very Low Sulfur Fuel Oil) average price(A) Dry Bulk Business
The Capesize bulker market is expected to remain stable for the rest of 2023, underpinned by steady bauxite
shipments from West Africa in addition to shipments from Australia and Brazil. However, from the beginningof 2024 onwards, market rates are likely to fall due to the decline in Brazilian shipments as is seen every year
during the rainy season. Despite some fluctuation, the market rates for Panamax, Handymax, and smaller
vessels are expected to remain comparatively firm for the remainder of 2023, bolstered by seasonal factors,
especially grain shipments from North America. However, rates are likely to lack buoyancy and are expected to
weaken once again from the beginning of 2024.
The dry bulk business as a whole will likely be impacted by these rate fluctuations and is expected to post
lower profit.
(B) Energy Business
The very large crude oil carrier (VLCC) market rate is expected to recover due to increased cargo
movements with the start of the winter demand season, despite various causes for concern such as thecontinued OPEC plus oil output cuts and falling demand for crude oil due to global recession. Similarly, on the
product tanker market, the global slowdown could potentially lead to a decrease in cargo movements; however,
the market rate is expected to remain steady on expectation of increased cargo movements for winter in the
Northern hemisphere, increased ton-miles due to alternative procurement of oil products from Russia, andincreased cargo movements as a result of the Chinese government’s issuance of more oil product export quotas
to state-owned oil companies
The offshore business is projected to continue generating stable profit, with the start of an additional FPSO
charter contract in FY2023.
In the liquefied gas business, the LNG carrier business will continue to maintain stable profit even thoughprofitability is expected to decrease year-on-year due to the expiry of some existing contracts. The FSRU
business is expected to post lower profit mainly due to the impact of the assignment of an existing vessel to a
new project.
(C) Product Transport BusinessIn the containerships business, we expect to secure a certain level of freight rates despite market
overcapacity and the delayed recovery of consumption, mainly in Europe, and the impact of falling spot freightrates caused by seasonal and other factors.
In the car carrier business, we assume that, despite the global political and economic uncertainty, completed
car production and sales, which impact the shipping market, will remain firm, and transportation volume isexpected to increase year-on-year.
In the terminal business, we plan to gradually proceed with the transfer of the container terminal businessoverseas, such as terminals on the West Coast of North America. Meanwhile, we anticipate steady handlingvolumes at domestic terminals will continue.
6

3.9%

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

October 31,2023

In the logistics business, air and sea freight rates are expected to be lower than the levels a year earlier.
(D) Wellbeing & Lifestyle BusinessIn the real property business, a profit impact from the reconstruction of some properties owned by DAIBIRUCORPORATION is anticipated but is expected to continue generating solid profits due to the high occupancy
rates of other properties.
In the business of ferries and coastal RoRo ships, the recovery driven by the passenger business is expected
to continue. We aim to generate further synergy as a result of the merger of two group companies in October.
In the cruise business, we anticipate a recovery in demand owing to the easing of COVID-19 restrictions,and profitability is expected to improve.
(E) Associated Businesses
The tugboat business is projected to report increased profit mainly due to the effect of the revision of tugboat
service fees.

5. Financial Position
Total assets as of September 30, 2023 increased by ¥ 390.5 billion compared to the balance as of the end of theprevious fiscal year, to ¥ 3,954.7 billion. This was primarily due to the increase in Investment securities.
Total liabilities as of September 30, 2023 increased by ¥ 153.8 billion compared to the balance as of the end of theprevious fiscal year, to ¥ 1,780.4 billion. This was primarily due to the increase in Long-term bank loans.
Total net assets as of September 30, 2023 increased by ¥ 236.6 billion compared to the balance as of the end of theprevious fiscal year, to ¥ 2,174.3 billion. This was primarily due to the increase in Foreign currency translation
adjustments.
As a result, shareholders’ equity ratio increased by 0.6% compared to the ratio as of the end of the previous fiscal
year, to 54.6%.

7

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

October 31,2023

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, 2023
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

8

As of September 30, 2023

93,961
124,134
8,329
500
50,787
26,820135,669(1,662)438,541

116,046
120,061
11,204－60,85530,836
161,357(1,936)498,425

708,682
132,943
25,227
5,585
299,710
162,234
7,856
1,342,240
36,739749,025
132,728
25,037
5,721
308,335
257,488
7,633
1,485,971
36,6041,430,873
116,893
8,550
20,987
2,058
191,173(23,811)
1,746,726
3,125,705
3,564,247

1,582,212
109,986
8,295
21,1353,189
215,817(6,882)
1,933,754
3,456,329
3,954,754

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

October 31,2023(¥Million)
As of March 31, 2023
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

9

As of September 30, 2023

99,87230,000339,354
80,000
6,979
2,493
31,006
11,66067,808669,176

119,01244,500391,004
85,00018,5282,729
30,448
10,16562,895764,284

159,500
524,801
17,50984,8709,188

139,000
583,60718,304
97,724
9,404

750

553

19,078
141,751
957,449
1,626,626

20,739146,815
1,016,149
1,780,433

65,589－1,571,582(558)
1,636,614

65,757175
1,628,316(206)
1,694,043

32,47250,354

77,59093,537

171,647

316,050

7,021

6,342

288,732550
11,724
1,937,621
3,564,247

466,286449
13,541
2,174,320
3,954,754

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

October 31,2023(2) Consolidated Statements of Income(¥Million)
FY2022(Apr. 1, 2022 - Sep. 30, 2022)

FY2023(Apr. 1, 2023 - Sep. 30, 2023)

821,337
698,645
122,691
66,60456,087790,102668,104
121,997
72,69649,3005,811
4,269
519,166
17,463－
5,379
552,089

10,9609,729
56,091
20,94917,3983,278
118,408

7,019
1,362
8,381
599,795

11,733
1,443
13,177
154,531

9,566
13,73623,303

9,609
14,976
24,586

28
258
2,374
2,662

80
326
757
1,164

620,436

177,953

16,790603,645
2,122
601,523

26,466
151,486694
150,792

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
Reversal of allowance for doubtful accounts
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
Loss on building reconstruction
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

10

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

October 31,2023(3) Consolidated Statements of Comprehensive Income(¥Million)
FY2022(Apr. 1, 2022 - Sep. 30, 2022)

FY2023(Apr. 1, 2023 - Sep. 30, 2023)

603,645

151,486(7,869)17,80023,76737,547(509)

11,527
11,746(679)

162,852

138,333

215,789
819,434

178,728
330,215814,205

328,346

5,229

1,868

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

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

October 31,2023(4) Consolidated Statements of Cash flows(¥Million)
FY2022(Apr. 1, 2022 - Sep. 30, 2022)

FY2023(Apr. 1, 2023 - Sep. 30, 2023)

620,436

177,953

47,715258(519,166)(1,472)(10,080)
7,019

49,866326(56,091)(20,666)(20,689)
11,733(9,008)(9,373)(8,225)(33,449)
7,375(11,761)
22,252(40,703)
71,189121,051(6,731)(13,910)
171,599(9,965)
8,623(2,703)(9,416)
16,631(26,607)
109,620
122,487(12,478)(15,695)
203,934(13,232)(42,340)

16,445

17,642(78,487)
29,711(2,286)2,890(12,081)(57,041)(181,301)
20,624(2,669)20,789(10,321)(177,575)

Cash flows from operating activities
Income before income taxes and non-controllinginterests
Depreciation and amortization
Loss on building reconstruction
Equity in losses (earnings) of affiliated companies
Various provisions (reversals)Interest and dividend income
Interest expense
Loss (gain) on sale and retirement of non-current
assetsForeign exchange loss (gain), net
Decrease (Increase) in trade receivables
Decrease (Increase) in contract assets
Decrease (Increase) in inventories
Increase (Decrease) in trade payables
Others, net
Sub totalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of investment securities
Proceeds from sale and redemption of investment
securities
Purchase of non-current assets
Proceeds from sale of non-current assets
Disbursements for long-term loans receivables
Collection of long-term loans receivables
Others, net
Net cash provided by (used in) investing activities

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

October 31,2023(¥Million)
FY2022(Apr. 1, 2022 - Sep. 30, 2022)

FY2023(Apr. 1, 2023 - Sep. 30, 2023)

187,60363,50035,567(115,067)－(13,700)

29,5695,000
100,705(46,824)9,000(15,000)(166,094)－(107,947)(2,327)(579)(119,046)(93,839)(51)(508)(11,948)

10,641

7,675

6,153
97,135103,288

22,084
91,047113,132

Cash flows from financing activities
Net increase (decrease) in short-term bank loans
Net increase (decrease) in commercial paper
Proceeds from long-term bank loans
Repayments of long-term bank loans
Proceeds from issuance of bonds
Redemption of bonds
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Cash dividends paid by the company
Cash dividends paid to non-controlling interests
Others, net
Net cash provided by (used in) financing activities
Effect of foreign exchange rate changes on cash andcash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of quarter

13

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

October 31,2023[NOTE](Changes in Accounting Estimates)(Change in Useful Life)
The Company changed the useful life of ferries from 15 years to 20 years effective from the first Quarter of the
fiscal year. This change in the useful life is caused by our reassessment that ferries are expected to have a longer
useful life taking into consideration the actual use, with triggered by launch of the LNG-fueled ferries.
As a result, operating profit, ordinary profit, and income before income taxes and non-controlling interests forthe second Quarter of the fiscal year each increased by ¥ 856 million, compared to the previous method.
(Additional Information)(Change to Consolidated Subsidiary Company (Share Transfer))
With respect to Share Transfer of INTERNATIONAL TRANSPORTATION INC., which is our consolidated
subsidiary company, reported as the Additional Information in Financial Highlights of the First Quarter Ended June30, 2023, the Share Transfer schedule has been changed although the approvals of competent government authorities
were obtained.
1. Overview of recipients
The recipients of Share Transfer are two companies (hereinafter, out of the recipients, Ocean Network Express,
Pte, Ltd. shall be referred to as “ONE” and the other recipient shall be referred to as “Recipient 1”), and we haveentered into share transfer agreements with ONE and Recipient 1 respectively (hereinafter, the Share Transfer toRecipient 1 shall be referred to as “Share Transfer 1” and the Share Transfer to ONE shall be referred to as “Share
Transfer 2”).
2. Schedule
Implementation date of Share Transfer 1

early November 2023 (scheduled date)

Implementation date of Share Transfer 2(Date of change to consolidated subsidiary company)

14early November 2023 (scheduled date)(Unaudited translation of "Kessan Tanshin", provided for reference only)

October 31,2023(6) Segment Information
Business segment information:(¥Million)

Reportable Segment
Product Transport Business

Q2/ FY2022(Apr. 1 - Sep. 30, 2022)

Dry Bulk
Business

EnergyBusiness

Wellbeing & Lifestyle BusinessContainerships

Car Carriers,
Terminal andLogistics

26,559286,660

Ferries &Real Property Coastal RoRo
Ships, Cruise

AssociatedBusinesses

Sub Total

31,236

23,836

812,717

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

Q2/ FY2022(Apr. 1 - Sep. 30, 2022)

235,559

189,10919,755

99

6,996

135

2,124

1,487

143

11,60022,586

235,658
34,552

196,105
22,156

26,694
494,768

288,784
41,943

21,242
4,775

31,380(627)

35,436
1,532

835,303599,102

Others*1

Total

Adjustment*2

Consolidated*4

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

8,619

821,337－

821,337

7,430

30,017(30,017)－

16,050110

851,354599,212(30,017)582

821,337
599,795(¥Million)

Reportable Segment
Product Transport Business

Q2/ FY2023(Apr. 1 - Sep. 30, 2023)

Dry Bulk
Business

EnergyBusiness

Wellbeing & Lifestyle BusinessContainerships

Car Carriers,
Terminal andLogistics

28,082

271,143

Ferries &Real Property Coastal RoRo
Ships, Cruise

AssociatedBusinesses

Sub Total

32,272

23,311

779,592

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

Q2/ FY2023(Apr. 1 - Sep. 30, 2023)

189,894

214,940

19,946

234

5,908

155

2,207

1,726

154

16,32826,717

190,129
32,155

220,849
37,66928,23733,397273,351
38,213

21,673
4,574

32,427410

39,6401,202

806,309
147,623

Others*1

Total

Adjustment*3

Consolidated*4

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

10,509790,102－790,102

7,278

33,995(33,995)－

17,7882,673

824,097
150,296(33,995)
4,235

790,102
154,531* 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 ¥ 582 million include the following:¥ -4,692 million of corporate profit which is not allocated to segments, ¥ 2,401 million of adjustment for
management accounting and ¥ 2,873 million of inter-segment transaction elimination.
* 3. Adjustment in Segment profit (loss) of ¥ 4,235 million include the following:¥ -2,014 million of corporate profit which is not allocated to segments, ¥ 5,688 million of adjustment for
management accounting and ¥ 561 million of inter-segment transaction elimination.
* 4. Segment profit (loss) corresponds to ordinary profit in the consolidated statements of income.

15

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

October 31,2023* 5. Notes to changes in reportable segments etc:
“Ferries & Coastal RoRo Ships Business,” which was conventionally presented in “Product Transport Business,”and “Cruise Business,” which was conventionally presented in “Associated Businesses” have been disclosed independently
as a new reportable segment named “Ferries & Coastal RoRo Ships, Cruise” due to restructure a part of organization.
As a result, Revenues and Segment profit (loss) during the second Quarter of the previous fiscal year are reclassified or adjusted
to conform to the presentation for the fiscal year.
* 6. As stated in (Change in Useful Life), the Company changed the useful life of ferries from 15 years to 20 years
effective from the first Quarter of the fiscal year.
Due to the change, Segment profit (loss) for the second Quarter increased ¥ 856 million in the Ferries & Coastal RoRo Ships,
Cruise Business, compared to the previous method.

[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.

16

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

October 31,2023[ Supplement ]1. Review of Quarterly Results<FY2023>
Q1
Apr-Jun, 2023

Q2
Jul-Sep, 2023

Q3
Oct-Dec, 2023

Q4
Jan-Mar, 2024

385,183

404,919

Operating profit (loss)

24,472

24,828

Ordinary profit (loss)

90,36964,162

Income (Loss) before income taxes

109,629

68,324

Profit (Loss) attributable to owners of parent

91,15559,637[¥]251.98164.79[¥]251.34164.35[¥ Millions]

3,737,672

3,954,754

2,015,352

2,174,320

Q1
Apr-Jun, 2022

Q2
Jul-Sep, 2022

Q3
Oct-Dec, 2022

Q4
Jan-Mar, 2023

374,783

446,554436,631354,016

Operating profit (loss)

23,59732,49040,157

12,465

Ordinary profit (loss)

284,191

315,604

139,459

72,335

Income (Loss) before income taxes

288,824

331,612

138,824

59,900

Profit (Loss) attributable to owners of parent

285,779

315,744

121,722

72,815[¥]791.96874.46336.91201.43[¥]788.68871.08335.70200.74[¥ Millions]

3,134,568

3,588,441

3,522,800

3,564,247

1,465,448

1,879,559

1,917,992

1,937,621

Revenues[¥ Millions]

Net income (loss)* per share
Net income (loss)* per share(Diluted basis)

Total Assets
Total Net Assets*Profit (Loss) attributable to owners of parent<FY2022>

Revenues[¥ Millions]

Net income (loss)* per share
Net income (loss)* per share
Total Assets(Diluted basis)

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

17

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

October 31,2023

2. Depreciation and Amortization(¥ Millions)

Six months ended
Sep.30, 2022

Six months ended
Sep.30, 2023

Increase / (Decrease)

Vessels

34,61437,271

2,656

68,311Others13,10012,594(505)

26,349Total

47,71549,866

2,151

94,660

As of Mar.31, 2023

As of Sep.30, 2023

Increase / (Decrease)

Bank loans

864,155

974,611

110,456

921,460

Bonds

189,500

183,500(6,000)199,500

Commercial papers

80,00085,0005,000

71,500

Others

19,793

20,470677

12,644

Total

1,153,448

1,263,582

110,134

1,205,104

FY2022

3. Interest-bearing Debt

4. Fleet Capacity
Dry bulkers*2

Tankers(¥ Millions)
As of Sep.30, 2022

(No. of ships*1 and deadweight ton)
Car carriersContainerships

Liquefied Gas carriers*3

No.of ships

1,000MT

No.of ships

1,000MT

No.of ships

1,000MT

No.of ships

1,000MT

No.of ships

1,000MT

Owned

51

5,129

68

8,785

24

1,595

50

889

20

1,593

Chartered280

24,311

82

3,518

23

1,512

46

760

16

2,011

Others

-

-

1

35

5

351

-

-

-

-

As of Sep.30, 2023

331

29,440151

12,338

52

3,459

96

1,649

36

3,605

As of Mar.31, 2023

310

28,798154

12,822

47

3,142

96

1,652

40

4,025

Ferries &Coastal RoRo ships

Cruise ships

Others*4

Total

No.of ships

1,000MT

No.of ships

1,000MT

No.of ships

1,000MT

No.of ships

1,000MT

Owned

11

69

2

8

7

47

233

18,115Chartered

4

25

-

-

23

68

474

32,206

Others

-

-

-

-

1

1

7

387

As of Sep.30, 2023

15

93

2

8

31

115

714

50,707

As of Mar.31, 2023

16

97

2

8

32

121

697

50,666*1 The aggregation scope includes our consolidated subsidiaries. / Including spot-chartered ships. / Partial ownership of a ship is counted as one ship.
*2 Including Steaming coal carriers.
*3 Including LNGC, VLEC, LNG bunkering ships, FSRU, and LPG/Ammonia ships.
*4 Coastal ships (excluding RoRo ships) and Cable-laying ships.

5. Exchange Rates
Six months ended
Sep.30, 2022

Six months ended
Sep.30, 2023

Average rates¥130.98¥138.71¥7.73[5.9%]JPY Depreciated¥134.67

Term-end rates¥144.81¥149.58¥4.77[3.3%]JPY Depreciated¥133.53

ChangeFY2022

Remark: "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 Jun.30, 2022

As of Jun.30, 2023

¥136.68¥144.99

Change¥8.31[6.1%]

6. Average Bunker Prices

Purchase Prices

Six months ended
Sep.30, 2022

Six months ended
Sep.30, 2023

Increase / (Decrease)

US$859/MT

US$610/MT

US$(249)/MT
18

As of Dec.31, 2022
JPY Depreciated¥132.70

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

October 31,2023

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

Source : Clarksons Research

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Average
1,761 1,835
2,464
2,220 2,943 2,389 2,077 1,412 1,487
1,814 1,299
1,453
2022
1,930
909
658
1,410
1,480 1,416 1,082 1,040 1,150 1,393
2023
1,171
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 : Clarksons Research

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Average-1,128 -5,587 -6,886
3,493 -7,435 -13,042 6,196 30,887 58,844 68,153 92,660 51,181
2022
23,111
28,223 41,999 84,755 55,019 29,519 44,695 36,136 25,784 18,611
2023
40,527
Remark) 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 : Clarksons 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.

19