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

July 31,2023

Financial Highlights: The First Quarter Ended June 30, 2023
1. Consolidated Financial Highlights ( from April 1, 2023 to June 30, 2023 )(All financial information has been prepared in accordance with accounting principles generally accepted in Japan)(1) Operating Results(¥Million)
Q1/FY2023

Q1/FY2022

Revenues

385,183

374,783

Operating profit

24,472

23,597

Ordinary profit

90,369284,191

Profit attributable to owners of parent

91,155285,779(¥)

Net income per share

251.98791.96

Diluted net income per share

251.34788.68(2) Financial Position(¥Million)
Q1/FY2023

FY2022

Total assets

3,737,672

3,564,247

Total net assets

2,015,352

1,937,621

53.6%

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

―

―

―

―

―

FY2023 (Forecast)―110.00―70.00

180.001

Total

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

July 31,2023

3. Forecast for the Fiscal Year Ending March 31, 2024(¥Million)
1H/FY2023

FY2023

Revenues

797,000

1,530,000

Operating profit

50,000100,000

Ordinary profit

135,000

220,000

Profit attributable to owners of parent

135,000

215,000(¥)

Net income per share

373.14594.21* Net income per share for the fiscal year 2023 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 2023 non-performance-linked restricted stock compensation
The number of shares issued on the payment deadline of July 20th, 2023: 57,300 shares(ii) Notice on issuance of new shares to non-executive directors of the company as fiscal year 2023 non-performance-linked restricted
stock compensation
The number of shares issued on the payment deadline of July 20th, 2023: 10,495 shares(iii) Notice on issuance of new shares to executive directors and executive officers and senior associate executive officer of thecompany as fiscal year 2022 performance linked stock compensation
The number of shares issued on the payment deadline of July 20th, 2023: 33,829 shares(The total number of new shares issued for (i)~(iii) is 101,624 shares)

2

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

July 31,2023

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

Year-on-year comparison /Variance

From April 1, 2022 toJune 30, 2022

From April 1, 2023 toJune 30, 2023

Revenue

374.7

385.1

10.4

/

2.8%

Operating profit

23.5

24.4

0.8

/

3.7%

Ordinary profit

284.1

90.3

(193.8)/(68.2%)

Profit attributable toowners of parent

285.7

91.1

(194.6)/(68.1%)

Exchange rate

¥125.29/US$¥134.86/US$¥9.57/US$

Bunker price*

US$914/MT

US$575/MT

US$(339)/MT*Average price for all the major fuel grades
The average exchange rate against the dollar for the first quarter of the current fiscal year decreased by¥9.57/US$ to ¥134.86/US$ from the same period of the previous fiscal year. The average bunker price for the
first quarter of the current fiscal year decreased by US$339/MT to US$575/MT from the same period of theprevious fiscal year
We recorded revenue of ¥385.1 billion, an operating profit of ¥24.4 billion, an ordinary profit of ¥90.3
billion and profit attributable to owners of parent of ¥91.1 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)

Three months

Year-on-year comparison /Variance

From April 1, 2022
to June 30, 2022

From April 1, 2023 toJune 30, 2023

105.2

95.4

(9.8)

/

(9.3%)

18.5

26.3

7.7

/

41.8%

85.6

101.6

16.0

/

18.8%

9.5

19.4

9.9

/

104.6%

141.9

147.2

5.3

/

3.8%

249.5

40.4

(209.1)/(83.8%)

13.0

13.6

0.5

/

4.1%

234.4

23.8

(210.5)/(89.8%)

Wellbeing & lifestyleBusiness

26.5

25.2

(1.2)

/

(4.7%)

2.1

2.3

0.2

/

12.0%

Real property
Business

9.8

9.7

0.0

/

(0.7%)

2.5

2.4

(0.1)

/

(4.4%)

11.4

10.9

(0.4)

/

(4.1%)

0.6

0.5

(0.1)

/

(24.1%)

4.0

4.5

0.5

/

12.5%

0.4

1.5

1.0

/

228.6%

Dry Bulk Business
Energy Business
Product Transport
Business
Containerships

Associated Businesses
Others3

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

July 31,2023(A) Dry Bulk Business
The Capesize bulker market rates were weaker than the year before, falling for a time in response to a sharp
drop in steel product prices amid concerns about China’s slow economic recovery; nonetheless rates remained
generally firm. Meanwhile, the market rates for Panamax, Handymax, and smaller vessels remained in a
downward trend due to the weak South American grain shipments and limited movements of other cargoes
such as cement, and also by the concerns about the delay in China’s economic recovery, the same reason thatapplies to the Capesize bulker market.
Despite the impact of the decline in market conditions, the dry bulk business posted a year-on-year increase inprofit, reflecting the reversal of an allowance for doubtful accounts recorded in the past at one of theconsolidated subsidiaries, in relation to a loan to GEARBULK HOLDING AG, an equity-method affiliate, as aresult of improvement in this company’s financial standing.
(B) Energy Business<Tankers>
In the very large crude oil carrier (VLCC) market, cargo movements remained firm as China resumed
economic activity, although there were concerns about the impact of additional production cuts by OPEC+.
Freight rates fluctuated but remained higher year-on-year, reflecting an increase in ton-miles due to cargoes
shipped from the U.S. and a tight vessel supply-demand balance and the Russia-Ukraine conflict. Producttanker market rates held firm, as a result of an increase in exports ahead of scheduled maintenance at oil
refineries in the Far East but then gradually weakened, reflecting a decrease in export volumes with the start ofscheduled maintenance and the resumption of economic activity and increased domestic demand in oilexporting countries. On the other hand, chemical tankers business remained steady, benefiting from the tonmiles increase as well as crude oil tankers. In this market environment, by fulfilling existing long-term
contracts and reducing costs, the tanker business as a whole posted a year-on-year increase in profits.
<Offshore>
The FPSO business secured stable profit through existing long-term charter contracts and reported a yearon-year increase in profit mainly thanks to the start of a new project.
<Liquefied gas>
The LNG carrier business continued to generate stable profit through existing long-term charter contracts.
Although some long-term contracts expired, there were acquisitions of new contracts, and the LNG carrierbusiness posted an increase in profit year-on-year. Similarly, in the FSRU business, some contracts expired
while other new contracts started, and profit was mostly unchanged year-on-year.
(C) Product Transport Business<Containerships>
At OCEAN NETWORK EXPRESS PTE. LTD, the Company’s equity-method affiliate, cargo demanddecreased due to weak consumption in Europe and the U.S. under the impact of high-interest rates and inflation,and spot freight rates and term-contract freight rates fell especially on Asia-North America and Asia-Europe
routes. The containerships business posted a substantial decline in profit year-on-year reflecting a significant
drop from the high freight rate levels seen during the COVID-19 pandemic.
<Car Carriers>
As economic activity normalized and production of completed cars also returned to normal levels withimprovement in the supply of semiconductors and automotive components, cargo movements also gradually
recovered. Although port congestion in some regions led to delays in discharging operations, temporarily
lowered the fleet operation efficiency, we flexibly revised vessel allocation plans, and as a result, the carcarriers business achieved year-on-year profit growth.
<Other Product Transport>
Container handling volumes in the terminal business decreased year-on-year due to a slowdown in cargo
movements at overseas terminals, while there were firm cargo movements at domestic terminals. Meanwhile,the logistics business was affected by softened air and sea freight rates and 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, due to an increase inoccupancy rate despite the increased costs associated with new property acquisitions by DAIBIRU
4

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

July 31,2023

CORPORATION, the core company in the Group’s real property business.
<Ferries and Coastal RoRo Ships>
The passenger transportation business saw a significant rebound in the number of passengers year-on-year,
thanks to a boost from the “National Travel Assistance Program” in addition to the entry into service of new
LNG-fueled ferries. In terms of the cargo transportation business, although the automotive component-related
cargo movements have not fully normalized, the ferries and coastal RoRo ships business overall posted a yearon-year increase in profit.
<Cruise Business>
The cruise business achieved improved profitability year-on-year due to a recovery in traveling demandfollowing the easing of COVID-19 restrictions.
(E) Associated Businesses
The tugboat business posted a year-on-year increase in profit due to a revision of tugboat service fees,
though the situation varies depending on each company and port. On the other hand, the trading company
business decreased profits year-on-year due to the deterioration of the business environment.
(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)

July 31,2023(2) Outlook for FY2023(For consolidated cumulative second quarter of the fiscal year 2023)
Previous outlook(As announced on
April 28, 2023)(¥ Billion)

Current outlook(As of announcement of
Q1 financial results)

Previous outlook
Comparison / Variance

Revenue

747.0

797.0

50.0

/

6.7%

Operating profit

50.0

50.0

-

/

-%

Ordinary profit

105.0

135.0

30.0

/

28.6%

Profit attributable toowners of parent

120.0

135.0

15.0

/

12.5%

(Assumptions for the 2nd Quarter)
Exchange rate
Bunker price¥126.18/US$¥134.07/US$¥7.89/US$

US$520/MT

US$480/MT

US$(40)/MT

US$640/MT

US$590/MT

US$(50)/MT*1

Compliant fuel price *2(For consolidated full fiscal year 2023)(¥ Billion)

Previous outlook(As announced on
April 28, 2023)

Revenue

Current outlook(As of announcement of
Q1 financial results)

Previous outlook
Comparison / Variance1,490.0

1,530.0

40.0 /

2.7%

Operating profit

105.0

100.0

(5.0) /

(4.8%)

Ordinary profit

200.0

220.0

20.0 /

10.0%

Profit attributable toowners of parent

210.0

215.0

5.0

2.4%

/

(Assumptions for the 2nd Half)
Exchange rate
Bunker price*1

Compliant fuel price *2¥125.59/US$¥130.00/US$¥4.41/US$

US$520/MT

US$520/MT-

US$640/MT

US$640/MT-*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 maintain a certain level of stability due to consistent shipments ofiron ore from Australia and Brazil. However, market rates are likely to lack buoyancy caused by ongoing
concerns about China’s economic slowdown. The market rates for Panamax, Handymax, and smaller vessels
are likely to see some recovery through the second half due to seasonal factors and support from strong coalcargo movements to a certain extent. However, the recovery is assumed to be limited for the same reason thatapplies to the Capesize bulker market. As a result, weak market condition is expected to persist to some degree.
Although lower profit due to the weak market is anticipated, the profit decline in the dry bulk business as awhole is expected to be limited mainly because we have balanced the vessel capacity and cargo volumes for
Panamax, Handymax, and smaller vessels.
(B) Energy Business
The very large crude oil carrier (VLCC) freight rate is expected to remain firm due to growing demand forcargo transportation from North and South America resulting in an increase in ton-miles, and also due to the6(Unaudited translation of "Kessan Tanshin", provided for reference only)

July 31,2023

limited supply of new vessels, despite the possibility of a decline in cargo movements due to factors such asadditional production cuts by Saudi Arabia and a slump in crude oil demand due to a possible recession in
China and the global economy. Meanwhile, in the product tanker market, we expect the freight rate to remain
steady because the scheduled maintenance at oil refineries will end, the growth in ton-miles driven by the
procurement of alternatives to Russian petroleum products is expected to continue, and the number of newly
built vessels entering the market will be limited. The offshore business is projected to continue generating
stable profit, with an additional FPSO expected to be commercially operational in a new project 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 as a result of decreased revenue as it reassigns an existing vessel to thenext project and begins preparations to commence commercial operation.
(C) Product Transport BusinessIn the containerships business, freight rates are much lower than a year earlier as the supply chain
disruptions that lasted until last summer calmed down; nonetheless, we expect to see stable cargo movements
and secure a certain level of freight rates.
In the car carrier business, we will continue flexible ship allocation in line with cargo movements while
monitoring the impact of semiconductor shortages, the Russia-Ukraine conflict, and the ongoing global
inflation on sales and production of completed cars.
In the terminal business, we plan to proceed with the transfer of the container terminal business overseas,such as terminals on the West Coast of North America. Meanwhile, we anticipate steady handling volumes atdomestic terminals. In the logistics business, air and sea freight rates are likely to be lower than the levels ayear earlier, but we will seek to stabilize earnings through initiatives such as strengthening our bargaining
power for spaces.
(D) Wellbeing & Lifestyle BusinessIn the real property business, a profit impact from the reconstruction of some properties owned by DAIBIRUCORPORATION is expected, but the business will continue to post 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 with 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 due to the effect of the revision of tugboat servicefees.

5. Financial Position
Total assets as of June 30, 2023 increased by ¥ 173.4 billion compared to the balance as of the end of the previous
fiscal year, to ¥ 3,737.6 billion. This was primarily due to the increase in Investment securities.
Total liabilities as of June 30, 2023 increased by ¥ 95.6 billion compared to the balance as of the end of theprevious fiscal year, to ¥ 1,722.3 billion. This was primarily due to the increase in Long-term bank loans.
Total net assets as of June 30, 2023 increased by ¥ 77.7 billion compared to the balance as of the end of theprevious fiscal year, to ¥ 2,015.3 billion. This was primarily due to the increase in Foreign currency translation
adjustments.
As a result, shareholders’ equity ratio decreased by 0.5% compared to the ratio as of the end of the previous fiscal
year, to 53.6%.

7

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

July 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 June 30, 2023

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

130,490
118,366
9,955
500
51,99230,023
151,948(1,754)
491,521708,682
132,943
25,227
5,585
299,710
162,234
7,856
1,342,240
36,739713,611132,159
24,314
5,883
299,811205,057
7,273
1,388,110
35,8061,430,873
116,893
8,550
20,987
2,058
191,173(23,811)
1,746,726
3,125,705
3,564,247

1,490,032
106,332
7,990
21,254
1,929
201,613(6,919)1,822,233
3,246,150
3,737,672

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

July 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 June 30, 2023

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

107,594
59,500359,874
80,00018,4492,643
34,073
6,003
74,232
742,371

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

130,000
569,188
17,57893,035
9,204

750

648

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

20,053140,240979,948
1,722,320

65,589－1,571,582(558)
1,636,614

65,592
3
1,568,667(523)
1,633,739

32,472

46,674

77,59082,557

171,647

232,438

7,021

6,677

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

368,347527
12,7372,015,352
3,737,672

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

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

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

374,783
318,296
56,48732,88923,597385,183
324,748
60,43435,962
24,4722,493
2,962
242,741
12,581－
3,661
264,440

5,280
2,632
33,693
11,796
17,398
1,839
72,640

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

5,910
833
6,743
90,369

5,106
1,109
6,216

9,535
10,027
19,562

26
497
1,059
1,583

1
143
157
302

288,824

109,629

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

18,11291,517361
91,155

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 retirement of non-current 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

10

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

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

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

287,551

91,5171,351

14,142

14,133
8,143
(254)

7,091
(19,140)(343)

95,018

79,102

118,391
405,943

80,852
172,369

402,142

171,304

3,800

1,065

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)

July 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 first Quarter of the fiscal year each increased by ¥ 428 million, compared to the previous method.
(Additional Information)(Change to Consolidated Subsidiary Company (Share Transfer))
As reported as the Material Subsequent Events in Financial Highlights of the Second Quarter Ended September
30, 2022, the Company came to a decision on October 31, 2022 to transfer the shares in INTERNATIONAL
TRANSPORTATION INC. (hereinafter referred to as “ITI”), which is our consolidated subsidiary company, to tworecipients (hereinafter, out of the recipients, OCEAN NETWORK EXPRESS PTE. LTD. shall be referred toas “ONE” and the other recipient shall be referred to as “Recipient 1”) (hereinafter referred to as “Share Transfer”;
hereinafter, the Share Transfer to Recipient 1 shall be referred to as “Share Transfer 1” and the Share Transfer to
ONE shall be referred to as “Share Transfer 2”), however, the Company amend the contracts on Share Transfer 1
and Share Transfer 2 due to a partial change in the matters publicly disclosed through the resolution of our Boardof Directors dated June 20, 2023.
1. Reason for change (Share Transfer)
Contract

Item

Before amendment

Share Transfer 1

Subject matter of transfer,

490 shares in ITI

etc.

After amendment
222 shares in ITI and contract whichenables the acquisition of 34.5%
interest in TraPac, LLC (which is
100% subsidiary company of ITI andhas been operating a container terminal
business at Port of Los Angeles andPort of Oakland in California, U.S.A.)(hereinafter referred to as “TraPac”)

Share Transfer 2

Implementation dateAugust 2023

September 2023(Scheduled)

Subject matter of transfer

510 shares in ITI

778 shares in ITI

Implementation Date

August 2023

September 2023(Scheduled)Upon receiving a request to change the scheme of Share Transfer from Recipient 1 as a result of Recipient12

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

July 31,2023

1’s analysis and consideration of optimal holding scheme, we came to a decision to amend the contracts on
the Share Transfer as follows, as a result of discussion with ONE and Recipient 1.
*

Due to the fact that the Share Transfer will be implemented after the recipients’ internal approvals and theapprovals of competent government authorities under relevant laws and regulations are obtained, if there is any
change or delay in such approvals, the schedule above may change.

Together with the amendments described above, the final holding ratio of shares and interests by eachcompany will change after the Share Transfer as follows:
Before change

After change
Recipient 1

ONE
51%

Recipient 1

ONE

49%

77.8%

22.2%

ITI

ITI

65.5%

100%

TraPacTraPac

34.5%*

The figures show the holding percentages of shares or interests.

*

Recipient 1 plans to hold the shares in ITI and the interests in TraPac through two entities in which
Recipient 1 invests 100%

2. Recording of extraordinary profit and loss and impact on earnings forecast(1) Share Transfer 1
After the execution of Share Transfer 1, there will be no impact on a consolidated basis in the fiscal
year ending March 2024, as ITI will continue to be our consolidated subsidiary company until the
execution date of Share Transfer 2.
(2) Share Transfer 2
An extraordinary profit of approximately ¥ 13.3 billion accrued from sale of shares in affiliatedcompany is scheduled to be recorded on a consolidated basis in the fiscal year ending March 2024. For
conversion to JPY, we use our internal exchange rate (US$ = JPY138.17) based on recent exchange trend.

13

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

July 31,2023(4) Segment Information

Business segment information:(￥Million)

Reportable Segment
Product Transport Business

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

Dry Bulk
Business

EnergyBusiness

Wellbeing & Lifestyle BusinessContainerships

Car Carriers,
Terminal andLogistics

13,064

128,850Ferries &Real Property Coastal RoRo
Ships, Cruise

AssociatedBusinesses

Sub Total

11,423

370,734

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

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

105,266

85,618

9,848

16,661

34

2,481

67

1,089

751

67

5,452

9,945

105,301
18,572

88,1009,509

13,132
234,406

129,939
15,137

10,6002,565

16,729(459)

16,875683

380,679
280,414

Others*1

Total

Adjustment*2

Consolidated*4

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

4,049

374,783－

374,783

3,577

13,522(13,522)

－

7,626
466

388,306
280,881(13,522)
3,310

374,783
284,191(￥Million)

Reportable Segment
Product Transport Business

Q1/ FY2023(Apr. 1 - June. 30, 2023)

Dry Bulk
Business

EnergyBusiness

Wellbeing & Lifestyle BusinessContainerships

Car Carriers,
Terminal andLogistics

13,600133,682

Ferries &Real Property Coastal RoRo
Ships, Cruise

AssociatedBusinesses

Sub Total

10,955

380,628

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

Q1/ FY2023(Apr. 1 - June. 30, 2023)

95,443

101,675

9,782

15,490

406

2,962

77

1,061

781

71

7,766

13,12995,85026,334

104,637
19,456

13,67823,825

134,744
16,61010,563
2,453

15,561(93)

18,722518

393,758
89,105

Others*1

Total

Adjustment*3

Consolidated*4

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

4,554

385,183－

385,183

3,654

16,783(16,783)

－

8,208
1,533

401,967
90,639(16,783)(270)

385,183
90,369* 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 ¥ 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 ¥ 1,774 million of inter-segment transaction elimination.
* 3. Adjustment in Segment profit (loss) of ¥ -270 million include the following:¥ -2,729 million of corporate profit which is not allocated to segments, ¥ 2,205 million of adjustment for
management accounting and ¥ 254 million of inter-segment transaction elimination.
* 4. Segment profit (loss) corresponds to ordinary profit in the consolidated statements of income.

14

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

July 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 first 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 first Quarter increased ¥ 428 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.

15

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

July 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

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

Revenues

385,183[￥ Millions]Operating profit (loss)

24,472

Ordinary profit (loss)

90,369

Income (Loss) before income taxes

109,629

Profit (Loss) attributable to owners of parent

91,155

Net income (loss)* per share[￥]

251.98Net income (loss)* per share(Diluted basis) [￥]251.34

Total Assets

3,737,672[￥ Millions]

Total Net Assets

2,015,352*Profit (Loss) attributable to owners of parent<FY2022>

Revenues[￥ Millions]

Net income (loss)* per share[￥]

791.96874.46336.91201.43

Net income (loss)* per share(Diluted basis) [￥]788.68871.08335.70200.74

3,134,568

3,588,441

3,522,800

3,564,247

1,465,448

1,879,559

1,917,992

1,937,621

Total Assets[￥ Millions]

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

16

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

July 31,2023

2. Depreciation and Amortization(￥ Millions)Three months ended
Jun.30, 2022

Three months ended
Jun.30, 2023

Increase / Decrease

FY2022

Vessels

16,436

17,546

1,110

68,311Others

6,334

6,033

△ 301

26,349

Total

22,77023,579809

94,660

As of Mar.31, 2023

As of Jun.30, 2023

Increase / Decrease(￥ Millions)
As of Jun.30, 2022

Bank loans

864,155

929,062

64,907887,010

Bonds

189,500

189,500

0

208,200

Commercial paper

80,00080,000054,000

Others

19,793

19,745△ 47

12,444

Total

1,153,448

1,218,308

64,8591,161,655

Tankers

Liquefied Gas carriers*3

3. Interest-bearing Debt

4. Fleet Capacity
Dry bulkers*2(No. of ships*1 and deadweight ton)
Car carriersContainerships

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

48

5,514

64

8,238

22

1,363

50

889

20

1,594

Chartered271

24,523

87

4,195

21

1,397

46

761

18

2,251

Others

-

-

1

35

4

351

-

-

-

-

As of Jun.30, 2023

319

30,038152

12,468

47

3,111

96

1,649

38

3,845

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

224

17,721

Chartered

4

25

-

-

23

68

470

33,220

Others

-

-

-

-

1

1

6

387

As of Jun.30, 2023

15

93

2

8

31

115

700

51,328

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
Three months ended
Jun.30, 2022

Three months ended
Jun.30, 2023

Average rates¥125.29¥134.86¥9.57[7.6%]JPY Depreciated¥134.67

Term-end rates¥136.68¥144.99¥8.31[6.1%]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 Mar.31, 2022

As of Mar.31, 2023

¥122.39¥133.53

Change¥11.14[9.1%]

6. Average Bunker Prices

Purchase Prices

Three months ended
Jun.30, 2022

Three months ended
Jun.30, 2023

Increase / Decrease

US$914/MT

US$575/MT

US$(339)/MT

17

As of Dec.31, 2022
JPY Depreciated¥132.70

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

July 31,2023

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

Source : Clarksons Research

6,000
5,500
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Jan/2022

Apr/2022

Monthly Average

2022
2023

Jan
1,761
909

Jul/2022

Feb
1,835
658

Mar
2,464
1,410

Apr
2,220
1,480

Oct/2022

May
2,943
1,416

Jun
2,389
1,082

Jul
2,077

Jan/2023

Aug
1,412

Sep
1,487

Apr/2023

Oct
1,814

Nov
1,299

Dec
1,453

Average
1,930
1,159

Remark) The Graph and the table have different fluctuation ranges as the graph reflects daily figures while the table shows monthly averages.

(2) Tanker Market (Daily Earnings) : VLCC AG/Japan trade (US$Charter Rate/day)

Source : Clarksons Research$120,000$100,000$80,000$60,000$40,000$20,000$0$-20,000
Jan/2022

Apr/2022

Monthly Average

2022
2023

Jul/2022

Jan
Feb-1,128 -5,587
28,223 41,999

Mar-6,88684,755

Oct/2022

AprMay
3,493 -7,435
55,019 29,519

Jun-13,042
44,695

Jan/2023

Jul
Aug
Sep
6,196 30,887 58,844

Apr/2023

Oct
Nov
68,153 92,660

Dec
51,181

Average
23,11147,368Remark) The Graph and the table have different fluctuation ranges as the graph reflects weekly figures while the table shows monthly averages.

(3) Containership Market (China Containerized Freight Index) (Index: January 1st 1998 = 1,000)

Source : Clarksons Research

6,500

Europe Service

6,000

W/C North America Service

E/C North America Service

5,500
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Jan/2022

Apr/2022

Jul/2022

Oct/2022

Jan/2023

Apr/2023

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.

18

D