1946

SINCE

Thanks to you,we celebrated
the 75th anniversaryof our foundingon March 27, 2021.

ANN UAL R EPORT 2021
Year Ended March 31, 2021

2021
Japan Oil Transportation Co.,Ltd.

To Our Shareholders

Shift for the Next
We fulfill our responsibility to the futurewith thorough safety and high-quality service
Before presenting the business report for the 104th term (April 1, 2020 to March 31, 2021), I would
like to take this opportunity to thank our shareholders for your support throughout the year.
Going forward, the outlook for the Japanese economy is likely to remain uncertain as it is not known
when the novel coronavirus disease (COVID-19) pandemic will end due to the emergence of highly
infectious variants and other factors.
The business environment for the JOT Group is expected to be challenging as a full-fledged recovery
in transportation demand is expected to take some time.
In response to the significant changes in the business environment given the ongoing challenging
situation due to the impact of COVID-19 pandemic, the JOT Group formulated a medium-term
management plan for the period from Fiscal 2022 to Fiscal 2024 aimed at rebuilding the businessfoundation and achieving further growth of the entire JOT Group.
Under this medium-term management plan, we will strive to secure and maintain profits in our corebusinesses and improve productivity through operational reforms utilizing IT and other measures. In
addition, as part of our actions toward achieving growth,
we aim to respond to transportation demand for a
carbon-free society and a further increase of profitability
in international transportation. In line with these efforts,
we have set targets of net sales of ¥35.1 billion or more,
operating income of ¥1.8 billion or more and ordinary
income of ¥1.9 billion or more in Fiscal 2024.
We will also strive to practice ESG (environmental, social,and governance) management and carry out ourinitiatives, etc. for realizing clean logistics through ourbusiness activities.
The JOT Group continues to strive as a united group,
aiming to build a strong earnings base and a stablefinancial structure by achieving goals of this mediumterm management plan and to become the number one
energy transportation company in Japan by providing
safe and stable transportation.
I continue to count on your generous support andcooperation.

Shoichiro Hara
President and Representative Director

1

ANNUAL REPORT 2021

August 2021

Results for the 104th Term (Consolidated)
The JOT Group thoroughly implemented measures to prevent infection of employees and all
related parties and, as an infrastructure company group that protects people’s livelihoods and theeconomy, did its utmost to continue providing safe and stable transportation of energy, food, etc.
As a result, net sales in the fiscal year under review showed a year-on-year decrease of 4.7%, to¥32,724 million due to a decrease in transportation demand, etc., and operating income fell by
11.3% year-on-year to ¥1,155 million. Ordinary income fell by 10.8% year-on-year to ¥1,516
million, and profit attributable to owners of parent fell by 17.9% year-on-year to ¥915 million.

Net Sales

(Millions of yen)

Operating Income(Millions of yen)

Ordinary Income

1,303
34,240102nd term
- Fiscal 201934,326

103rd term
- Fiscal 2020

32,724104th term
- Fiscal 2021

Profit Attributable to Owners(Millions of yen)of Parent
1,115

1,699
1,516

1,155
1,009

102nd term
- Fiscal 2019

1,315

103rd term
- Fiscal 2020

104th term
- Fiscal 2021

Total Assets / Net Assets
(Millions of yen)
Total Assets

915

831

(Millions of yen)

33,279Net Assets

33,301

102nd term
- Fiscal 2019

103rd term
- Fiscal 2020

104th term
- Fiscal 2021

Dividend Per ShareFirst six months (Interim period)(Yen)
Year-end

100

35,419
80

80

40

40

40

40

40

102nd term
- Fiscal 2019

103rd term
- Fiscal 2020

104th term
- Fiscal 2021

60
19,110102nd term
- Fiscal 2019

103rd term
- Fiscal 2020

104th term
- Fiscal 2021

102nd term
- Fiscal 201919,240103rd term
- Fiscal 2020

20,699104th term
- Fiscal 2021

* Dividend per share for the 104th term includes a ¥20
commemorative dividend to our shareholders to celebrate
our 75th anniversary.

ANNUAL REPORT 2021

2

Segment Overview (Consolidated)
Business Description

OilTransportation
Business

High-PressureGas
Transportation
Business

Chemical andContainer
Transportation
Business

Other
Business

3

ANNUAL REPORT 2021

Making use of two
different types oftransportation, namely
rail tank cartransportation, whichenables thetransportation of highvolumes at low cost
and with little
environmental impact, and truck transportation, which isagile and flexible, the JOT Group conducts transportationof fuel oils such as gasoline, diesel, and kerosene.

Overview of the Period
Net sales - ¥15,373 million
Operating income - ¥387 million
In the oil transportation business, in addition to sluggish
demand of fuel oils as consumers stayed at home, etc. dueto the impact of COVID-19, there was a decline in revenue
due to changes in shipping locations, leading to a fall inboth net sales and operating income.
As a result, net sales in the oil transportation business fell
by 7.5% year-on-year to ¥15,373 million, and operating
income fell by 43.1% year-on-year to ¥387 million.

The JOT Group
conducts multimodaltransportation bytanker truck andrail-transportation tankcontainers. We link ourcustomers’ satellite
stations and plants,
etc., LNG importterminals or domesticgas fields all aroundJapan.

Net sales - ¥8,661 million

In the chemicaltransportation business,
the JOT Group isdeveloping the leasing ofcontainers for thetransport of liquid andpowder chemicals andfood products, as well as
multimodal transportation,
combining various
methods of transportation.

Net sales - ¥8,515 million

In the containertransportation business,
the JOT Group is also
engaged in rental andleasing of various typesof containers for railtransportation, such as
for agricultural products,
food products, industrial
products, and courier
services, in order to meetthe needs of ourcustomers.

With regard to the solar
power generation
business, we currently
have four solar power
plants located in Japan.

Operating income - ¥474 million
In the high-pressure gas transportation business, despite
freight revisions with our main customers and acquisition of
new transportation contracts, as a result of a decrease indemand due to the impact of COVID-19 and other factors,
net sales declined. Meanwhile, due to decreases in fuelcosts and in personnel and other expenses, operating
income increased.
As a result, although net sales in the high-pressure gastransportation business fell by 1.5% year-on-year to ¥8,661
million, operating income rose by 35.8% year-on-year to¥474 million.

Operating income - ¥218 million
In the chemical transportation business, although we strove
to maintain profits, due to a drop in demand in Japan andoverseas caused by the impact of COVID-19, etc. and lower
sales to some of our main customers, net sales decreased.
In the container transportation business, a decrease indemand due to the impact of COVID-19 and the impact ofpoor growth of vegetable crops in the Hokkaido region, led
to a fall in net sales.
As a result, although net sales in the chemical andcontainer transportation business fell by 2.7% year-on-yearto ¥8,515 million, operating income rose by 2.7% year-onyear to ¥218 million due to a reduction in expenses.

Net sales - ¥174 million
Operating income - ¥76 million
In the solar power generation business, although net salesrose by 0.0% year-on-year to ¥174 million, operating
income rose by 25.4% year-on-year to ¥76 million due toreductions in inspection fees and other expenses.

TOPICS & COLUMN
Formulation of Medium-Term Management Plan
In response to a business environment that is changing significantly, we formulated a medium-term management plan for the period from Fiscal
2022 to Fiscal 2024, setting the following financial targets and basic policies in order to reinforce the business foundation for sustained growth.

1 Basic Policies■ Rebuild the Business Foundation■ Strive to Achieve Growth➣ Secure and maintain profits in oil
product transportation anddomestic cargo transportation➣ Improve productivity➣ Actively invest in safety equipment➣ Explore new markets in growth businesses
・Low-carbon and carbon-freeenergy transportation demand・Overseas chemical transportation demand➣ Investigate and evaluate new businesses

Reinforce the businessfoundation to achievesustainable business growth■ Promote ESG Management➣ E: Initiatives for realizing clean logistics➣ S: Initiatives for solving social issues➣ G: Reinforcement of governance2 Numerical Targets
Fiscal 2021

Net Sales
Operating Income
Ordinary Income
ROE
Total Investment(three years)

Dividend per Share(annual)Fiscal 2021
(single fiscal year)

Fiscal 2024

Change¥32.3 billion¥1.4 billion¥1.5 billion
4.6%¥35.1 billion or more
¥1.8 billion or more
¥1.9 billion or more
Approx. 6.0%

¥4.0 billion¥11.0 billion or more

¥100.0¥100.0(including a ¥20.0 commemorative dividend)+¥2.8 billion or more+¥0.4 billion or more+¥0.4 billion or more

Note: For detailed information regarding the medium-term management plan, please refer to the “IR Information” page of our website(https://www.jot.co.jp).

Introduction to Chemical and Container Transportation Business
Since the establishment of the container transportation business in 1984, the JOT Group’s container transportation business has engaged in the rentaland leasing business of containers for rail cargo transportation, and items transported cover a wide range of products, including agricultural products,
food products, industrial goods, home delivery packages, etc.
To maintain the quality of our customers’ important goods, this business offers a wide range of container variations that have been introduced since
the business was launched, such as insulated containers with an excellent ability to maintain cold or warm temperatures, Super UR containers thatemploy vacuum insulation panels to achieve higher cold or heat retention performance and wing containers that can carry cargo equivalent to that ofa 10-ton truck, and has worked to develop and improve containers to meet the diverse needs of customers.
In addition, in order to build a system for the rental business that allows customers to use the containers they need, when they need them, thisbusiness uses a “rental container system” that is able to provide containers at the nearest freight station from the pickup location and allows thecontainers to be returned at the nearest freight station from the shipping destination.
We will continue with further container development, including improving thermal insulation and capacity and reducing weight, to meet ourcustomers’ needs while putting all of our efforts into the realization of clean logistics through reductions in CO2 emissions and other measures in thecontainer transportation business that place priority on the environment.

Insulated containers

Super UR containers

Wing containers

ANNUAL REPORT 20214

Consolidated Financial Statements (Summarized)
Japan Oil Transportation Co., Ltd. and its Consolidated Subsidiaries

CONSOLIDATED BALANCE SHEETS
AssetsCurrent assets:
Cash and deposits
Notes and accounts receivable—trade
Investments in leases
Inventories
Other
Total current assets
Non-current assets:
Property, plant and equipment
Buildings and structures
Machinery, equipment and vehicles
Containers
Land
Lease assets
Construction in progress
OtherIntangible assets
Software
Other
Investments and other assets
Investment securities
Deferred tax assets
Other
Total non-current assets
Total assets

Millions ofU.S. dollars

Millions of yen

As of March 31, 2021 and 2020

2020

2021

2021

¥ 2,546
3,631
375
32
125
6,712

¥ 4,084
3,737
344
46
147
8,361

$

21,366
1,888
4,123
2,718
5,828
6,430
311
64
221
203
18
5,000
3,607
872
519
26,588¥33,301

20,990
2,406
3,492
2,361
5,828
6,742
101
57
200
200
—
5,866
4,656
707
502
27,057¥35,419

189.6
21.7
31.5
21.3
52.6
60.9
0.9
0.5
1.8
1.8
—
52.9
42.06.3
4.5
244.4$319.9
Millions ofU.S. dollars

Millions of yen

Liabilities
Current liabilities:
Notes and accounts payable - trade
Short-term loans payable
Lease obligations
Accrued expenses
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Other
Total current liabilities
Long-term liabilities:
Lease obligations
Deferred tax liabilities
Reserve for vehicle repairs
Net defined benefit liability
Other
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury shares, at cost
Accumulated other comprehensive income
Net unrealized gains on other securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Total net assets
Total liabilities and net assets
5

ANNUAL REPORT 2021

36.8
33.7
3.1
0.4
1.3
75.5

2020

2021

2021

¥1,785
451
1,833
417
396
758
111
968
6,722

¥ 1,945
491
2,015
504
366
782
94
920
7,120

$

4,649
255
295
1,657
480
7,338
¥14,060

4,780
254
315
1,672
574
7,598
¥14,719

43.1
2.3
2.8
15.1
5.1
68.6
$ 132.9

19,1791,661
290
17,263(36)61245(3)(181)
19,240¥33,301

19,8301,661
290
17,914(36)869
9850(116)
20,699¥35,419

179.1
15.0
2.6
161.8(0.3)
7.8
8.9
0.0(1.0)
186.9$ 319.9

17.5
4.4
18.2
4.5
3.3
7.0
0.8
8.3
64.3

CONSOLIDATED STATEMENTS OF INCOME
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Rent income on fixed assets
Gain on sales of non-current assets
Share of profit of entities accounted for using equity method
Other
Non-operating expenses
Interest expenses
Rent expenses on fixed assets
Loss on sales and retirement of non-current assets
Other
Ordinary income
Extraordinary income
Extraordinary expenses
Profit before income taxes
Income taxes - current
Income taxes - deferred
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

2020

2021

2021

¥34,326
30,8443,481
2,178
1,303646
0193
307
52
37
55
250
74
96
51
27
1,699
71
32
1,738649(27)1,115—¥1,115¥32,724
29,427
3,297
2,141
1,155
575
0131
331
34
33
44214
77
87
32
18
1,516
54
124
1,446637(106)
915
—
¥915

$ 295.5
265.8
29.7
19.3
10.4
5.1
0.0
1.1
2.9
0.3
0.3
0.3
1.9
0.6
0.7
0.2
0.1
13.6
0.4
1.1
13.0
5.7
(0.9)
8.2
—
$8.2

CONSOLIDATED STATEMENTS OF CASH FLOWSMillions ofU.S. dollars

Millions of yen

Years ended March 31, 2021 and 2020

Net cash provided by operating activities
Net cash used in investing activities
Net cash used in financing activities
Effect of exchange rate change on cash and cash equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

Millions ofU.S. dollars

Millions of yen

Years ended March 31, 2021 and 2020

2020

2021

2021

¥5,143(3,076)(1,589)
(2)
474
2,046
¥2,546¥5,064(2,418)(1,101)
(5)
1,537
2,546
¥4,084$45.7(21.8)
(9.9)
(0.0)
13.8
23.0
$36.8

Note: The approximate exchange rate in effect on March 31, 2021 was ¥110.71 = U.S. $1.

ANNUAL REPORT 2021

6

Corporate Information

Company Profile (As of March 31, 2021)
Company Name:Japan Oil Transportation Co., Ltd.

Established:

March 27, 1946

Head Office:

WEST BLDG. Gate City Ohsaki
11-1, Ohsaki 1-chome, Shinagawa-ku, Tokyo 141-0032, Japan
TEL: 81-3-5496-7671
URL: https://www.jot.co.jp/en

Paid-in Capital:¥1,661 million

Number of Employees: 1,499 (consolidated); 166 (non-consolidated)

Primary Business1. Transportation of oil products (gasoline, kerosene, etc.) by rail tank car and truck
2. Transportation of high-pressure gas (LNG, etc.) by rail container, truck, and intermodal transportation
3. Transportation of petrochemical and related products by rail container, truck, and domestic and international intermodal transportation;leasing of a range of containers
4. Rental and leasing of railway refrigerated containers and freezer containers and related items
5. Solar power generation business

Major Subsidiaries (As of March 31, 2021)
Paid-in
CapitalEquityOwnership

ENEX, Inc.

¥100 million

100.0%

Trucking transportation of oil products, high-pressure gas, and relatedproducts, site management of oil depots and related places

Kinki Oil Transportation Co., Ltd.

¥ 75 million

100.0%

Trucking transportation of oil products, high-pressure gas, andrelated products

NICHIYU Co., Ltd.

¥ 40 million

100.0%

Sales and leasing of rail vehicle and container accessories, insurance
agencyNew J’s Co., Ltd.

¥ 48 million

100.0%

Trucking transportation of petrochemical, high-pressure gas, and relatedproducts, automobile services

JK TRANS Co., Ltd.

¥100 million

100.0%

Trucking transportation of oil products, petrochemical andrelated productsCompany Name

Primary BusinessJapan Oil Transportation Co., Ltd.
WEST BLDG. Gate City Ohsaki
11-1, Ohsaki 1-chome, Shinagawa-ku, Tokyo 141-0032, Japan
Printed in Japan