ANNUAL R EP O RT 2022
Year Ended March 31, 2022

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 105th term (April 1, 2021 to March 31, 2022), I would
like to take this opportunity to thank our shareholders for your support throughout the year.
Going forward, while there are expectations for recovery in the Japanese economy with thenormalization of social and economic activities as the novel coronavirus disease (COVID-19) appearsto be coming to an end, there is also concern over the long-term negative effects of Russia’s invasionof Ukraine not only on Japan but also on the world economy.
The business environment for the JOT Group appears likely to remain uncertain going forward asconcerns over escalating prices for energy and raw materials as well as faltering demand intensify as
an effect of the global situation, despite transportation demand gradually heading toward recovery.
Under these conditions, to achieve the targets (net sales of ¥35.1 billion or more, operating incomeof ¥1.8 billion or more, ordinary income of ¥1.9 billion or more) the JOT Group set forth in themedium-term management plan (Fiscal 2022 to Fiscal 2024), while continuing to ensure safe, stabletransportation, we strive to maintain and secure profits and increase productivity in our corebusinesses, achieve a further increase of profitability ininternational transportation, and respond totransportation demand for a carbon-free society.
In Fiscal 2022, the first year of the medium-term
management plan, while we made steady progress
toward achieving our targets, we currently face anextremely challenging business environment. Based on
our basic policies and action plans in each of ourbusinesses, we will quickly respond to changes in thebusiness environment and steadily pursue our initiatives.
We are also working to implement ESG (environment,society, governance) management through initiatives torealize future “clean logistics” (new transportation
businesses and transportation methods to limit CO2emissions).
I continue to count on your generous support andcooperation.
August 2022

Shoichiro Hara
President and Representative Director1

ANNUAL REPORT 2022

Results for the 105th Term (Consolidated)
While aiming to achieve our medium-term management plan (Fiscal 2022 to Fiscal 2024), as an
infrastructure company group, the JOT Group thoroughly implemented measures to prevent
infection of employees and all related parties and made efforts to provide the safe and stabletransportation of energy, food, etc., which are essential to people’s livelihoods and the economy.
As a result, net sales in the fiscal year under review showed a year-on-year increase of 5.9%, to¥34,262 million due to a recovery in transportation demand, etc., and operating income rose by
7.4% year-on-year to ¥1,458 million. Ordinary income rose by 7.5% year-on-year to ¥1,630
million, and profit attributable to owners of parent rose by 18.9% year-on-year to ¥1,088 million.
*The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations
have been applied effective from the beginning of the 105th term. Furthermore, the disclosure method for the portion of profit
or loss associated with the property rental business controlled by JOT has been changed from non-operating income andexpenses to net sales and cost of sales.
Therefore, each figure associated with the 104th term is the figure after retrospectively applying the accounting standard andrelevant ASBJ regulations and disclosure methods changed.

Net Sales

(Millions of yen)

34,32634,262

1,303

105th term
- Fiscal 2022

103rd term
- Fiscal 2020

103rd term
- Fiscal 2020

32,341104th term
- Fiscal 2021

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

1,088915

Operating Income
1,357

104th term
- Fiscal 2021

(Millions of yen)1,458

105th term
- Fiscal 2022

33,301103rd term
- Fiscal 2020

20,693First six months (Interim period)

1,630

105th term
- Fiscal 2022

(Yen)
Year-end

100

35,64921,406(Millions of yen)

Dividend Per Share

80

19,240104th term
- Fiscal 2021

40000

Net Assets

35,396

1,699
1,516

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

Ordinary Income

40

30000

60
20000

80
40

10000

103rd term
- Fiscal 2020

104th term
- Fiscal 2021

105th term
- Fiscal 2022

103rd term
- Fiscal 2020

104th term
- Fiscal 2021

105th term
- Fiscal 2022

4040
040

103rd term
- Fiscal 2020

104th term
- Fiscal 2021

105th term
- Fiscal 2022

* Dividend per share for the 104th term includes a ¥20
commemorative dividend.

ANNUAL REPORT 2022

2Segment overview (Consolidated)
Main business Description

OilTransportation
Business

High-PressureGas
Transportation
Business

Chemical andContainer
Transportation
Business

Asset
Management
Business

3

ANNUAL REPORT 2022

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 - ¥15,374 million
Operating income - ¥394 million
In the oil transportation business, we worked to maintainand expand our transportation share of truck
transportation, resulting in higher net sales. Additionally,net sales increased with the recovery from the impact ofchanges in shipping locations in the rail transportation
business in the previous fiscal year. Meanwhile, due toincreases in personnel and other expenses, operating
income declined.
As a result, net sales in the oil transportation business roseby 3.9% year-on-year to ¥15,374 million, and operating
income fell by 1.4% year-on-year to ¥394 million.

The JOT Group
conducts multimodaltransportation by LNG
tanker truck andrail-transportation tankcontainers. We link ourcustomers’ satellite
stations and plants,etc., to importterminals or domesticgas fields all around Japan.

Net sales - ¥8,864 million

In the chemicaltransportation business,
the JOT Group isdeveloping the leasingof containers for thetransport ofpetrochemical products,etc. in Japan andoverseas, as well as
multimodal transportation, combining various methods oftransportation.

Net sales - ¥9,537 million

In the containertransportation business,
the JOT Group is also
engaged in rental andleasing of various typesof containers for railtransportation, such as
for agriculturalproducts, foodproducts, industrial products, and courier services, in order
to meet the needs of our customers.

In addition to the rental
business for properties
owned by the JOTGroup, we have four
solar power plants
located in Japan to run
our solar power
generation business.
*From the 105th term,
the segment name “Other Business” has been changed to“Asset Management Business.”

Operating income - ¥340 million
In the high-pressure gas transportation business, net sales
increased due to a recovery in demand mainly for LNG.
Meanwhile, due to increases in fuel costs and in personnel
and other expenses, operating income declined.
As a result, net sales in the high-pressure gas transportation
business rose by 2.7% year-on-year to ¥8,864 million, andoperating income fell by 28.7% year-on-year to ¥340
million.

Operating income - ¥459 million
Net sales increased in the chemical transportation businessdue to a recovery in demand and progress in measures toimprove income and expenses for internationaltransportation.
In the container transportation business, the impact of poor
growth of vegetable crops in the Hokkaido region, andsuspension of freight train services caused by natural
disasters led to a fall in net sales.
As a result, net sales in the chemical and containertransportation business rose by 12.6% year-on-year to¥9,537 million, and operating income rose by 82.6%
year-on-year to ¥459 million.

Net sales - ¥485 million
Operating income - ¥263 million
Net sales increased in the property rental business with thestart of rentals of new properties.
Net sales increased in the solar power generation businessdue to solid operating conditions.
As a result, net sales in the asset management businessrose by 8.8% year-on-year to ¥485 million, and operating
income rose by 15.2% year-on-year to ¥263 million.

TOPICS[Oil Transportation Business] 1,000th commemorative car of the “TAKI 1000-series” of the rail tank car
The TAKI 1000-series, JOT’s mainstay railway car in the rail tank transportation of petroleum products which was jointly developed in 1993 bycompanies responsible for transportation operations using rail tank cars, including JOT and rail car manufacturers, is a freight tank car
specialized for gasoline transportation.
As a freight car that combines both high carrying capacity and high speed, the TAKI 1000-series has been manufactured and operated for 28years. In December 2021, the commemorative 1,000th TAKI 1000-series rail tank car “TAKI 1000-No. 1000” was completed and began operations.
We gave this commemorative car special wrapping with three different colored stripes.
The three colors are light blue, which represents Japan Freight Railway Company, blue, which represents JAPAN OIL TERMINAL & LOGISTICS
CO., LTD. and green, which represents JOT, companies which are responsible for transportation operations using rail tank cars.
We also included PR messages on both the right and left side of the rail car advertising the commemoration of the 1,000th rail tank car andour environmentally friendly rail transportation which produces 1/13th the CO2 emissions of trucks.
The achievement of the 1,000th TAKI 1000-series represents an important step for JOT. However, we will preserve our original intention andcontinue to strive to ensure the safe, stable transportation of petroleum products that are indispensable to our lives.

[Container Transportation Business] Initiatives in the Modal Shift
In the current logistics industry, not only reducing CO2 emissions, but also the 2024 logistics problems (various problems caused by thesetting of upper limits on driver working hours through the Act on the Arrangement of Related Acts to Promote Work Style Reform) arepressing issues, and railway transportation is focused on transportation methods to resolve these issues.
JOT has always worked to reduce our environmental burden through our business activities. In the container transportation business, we arepromoting a modal shift (transitioning from cargo transportation using vehicles such as trucks to the use of railways or ships with a small
environmental burden) using containers with strong thermal insulation (SUPER UR containers).
Since 2021, in the transportation of pharmaceuticals produced by MEDICEO CORPORATION, which conducts wholesales of pharmaceuticals
and medical devices, by using JOT’s SUPER UR containers, we realized a modal shift from frozen truck transportation to railway transportation,both reducing CO2 emissions and reducing the burden for long-distance truck drivers.
In the container transportation business, to respond to diversifying customer needs, we are working to develop containers with stronger
capabilities such as improved thermal insulation and lighter weights. Additionally, we are working proactively to reduce our environmental
burden and to resolve the shortage of drivers through our business activities.

ANNUAL REPORT 20224

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

CONSOLIDATED BALANCE SHEETSAssets
Current assets:
Cash and deposits
Notes and accounts receivable—trade, and contract assets
Investments in leases
Inventories
OtherTotal 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
OtherInvestments 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, 2022 and 2021

2021

2022

2022

¥4,084
3,737
344
46147
8,361

¥4,828
3,910
374
47
267
9,429

$39.4
31.9
3.0
0.3
2.1
77.0

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

20,163
2,354
3,506
1,951
5,788
6,419
93
49
226
154
71
5,830
4,633
699
498
26,220¥35,649

164.7
19.2
28.6
15.9
47.2
52.4
0.7
0.4
1.8
1.2
0.5
47.6
37.8
5.7
4.0
214.2
$291.2
Millions of
U.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 2022

2021

2022

2022

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

¥ 2,057
450
1,950
547
275
788
83
806
6,958

$16.8
3.6
15.9
4.4
2.2
6.4
0.6
6.5
56.8

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

4,520
236
290
1,690
547
7,285
¥14,243

36.9
1.9
2.3
13.8
4.4
59.5
$116.3

19,8301,661
290
17,914(36)869
985
0(116)
20,699¥35,419

20,581
1,661
290
18,666
(36)
824
904
4(84)
21,406¥35,649

168.1
13.5
2.3
152.5
(0.3)
6.7
7.3
0.0(0.6)
174.9$291.2

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

2021

2022

2022

¥32,724
29,427
3,297
2,141
1,155
575
0
131
331
34
33
44
214
77
87
32
18
1,516
54
124
1,446
637
(106)
915
—
¥915

¥34,262
30,673
3,588
2,130
1,458
341
1
138
54
47
49
49
168
79
18
39
31
1,630
26
—
1,656
563
3
1,088
—
¥1,088$279.9250.6
29.3
17.4
11.9
2.7
0.0
1.1
0.4
0.3
0.4
0.4
1.3
0.6
0.1
0.3
0.2
13.3
0.2
—
13.5
4.6
0.0
8.8
—
$8.8

CONSOLIDATED STATEMENTS OF CASH FLOWSMillions ofU.S. dollars

Millions of yen

Years ended March 31, 2022 and 2021

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, 2022 and 2021

2021

20222022¥5,064(2,418)(1,101)
(5)
1,537
2,546
¥4,084¥4,668(2,252)(1,674)3744
4,084¥4,828$38.1(18.4)(13.6)
(0.0)
6.0
33.3
$39.4

Note: The approximate exchange rate in effect on March 31, 2022 was ¥122.39 = U.S. $1.

ANNUAL REPORT 2022

6

Corporate Information

Company Profile (As of March 31, 2022)
Company Name:Japan Oil Transportation Co., Ltd.

Established:

March 27, 1946Head 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: 1,491 (consolidated); 159 (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. Property rental business
6. Solar power generation business

Major Subsidiaries (As of March 31, 2022)
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 related
products, 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