Consolidated Financial Results
for the Fiscal Year Ended March 31, 2020
[Japanese GAAP]May 15, 2020
Company name: Meiji Shipping Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 9115
URL: https://www.meiji-shipping.com/
Representative: Kazuya Uchida, President, CEOContact: Toshiro Mizuno, Director, Managing Executive Officer
Phone: +81-3-3792-0811
Scheduled date of Annual General Meeting of Shareholders: June 26, 2020
Scheduled date of commencing dividend payments: June 29, 2020
Scheduled date of filing annual securities report: June 26, 2020
Availability of supplementary briefing material on annual financial results: No
Schedule of annual financial results briefing session: No(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2020 (April 1, 2019 to March 31, 2020)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Fiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
March 31, 2020
43,881
3.0
5,444
10.5
4,700
7.4
1,719 (16.1)
March 31, 2019
42,6042.0
4,927 (11.9)
4,378
(2.5)
2,049
13.2
(Note) Comprehensive income: Fiscal year ended March 31, 2020: ¥2,626 million [(25.0)%]
Fiscal year ended March 31, 2019: ¥3,502 million [0.1%]
Basic earnings
per share

Diluted earnings
per share

Return on equity

Ordinary income
to total assets

Operatingincome to net
sales

Fiscal year ended
Yen
Yen
%
%
March 31, 2020
52.53
–
10.0
2.7
March 31, 2019
62.61
–
12.8
2.7
(Reference) Equity in earnings (losses) of affiliates: Fiscal year ended March 31, 2020: ¥789 million
Fiscal year ended March 31, 2019: ¥690 million(2) Consolidated Financial Position
Total assets

Net assets

Million yen

As of March 31, 2020
175,787
As of March 31, 2019
166,629(Reference) Equity: As of March 31, 2020: ¥17,655 million
As of March 31, 2019: ¥16,855 million

Equity ratio

%

12.4
11.6

Net assets per share

Million yen%

Yen

41,30439,08910.0
10.1

539.33514.87(3) Consolidated Cash Flows
Cash flows fromoperating activities

Fiscal year ended
March 31, 2020
March 31, 2019

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Million yen

Million yen

Million yen

Million yen

14,476
13,975(18,369)(25,894)

7,195
9,653

19,50016,223

2. Dividends
Annual dividends
1st
2nd
3rd
Year-endquarter-end quarter-end quarter-end

Total

Total
dividends

Payoutratio(consolidated)

Fiscal year ended
Yen
Yen
Yen
Yen
Yen Million yen
March 31, 2019
–
–
–
5.00
5.00
179
March 31, 2020
–
–
–
5.00
5.00
179
Fiscal year ending
March 31, 2021
–
–
–
–
–
(Forecast)(Note) Dividend forecast for fiscal year ending March 31, 2021 is not available at this point.

Dividends
to netassets(consolidated)

%

%

8.0
9.5

1.0
0.9

–

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2021 (April 1, 2020 to March
31, 2021)(% indicates changes from the previous corresponding period.)
Net salesFirst half
Full year

Operating income

Ordinary income

Profit attributable toowners of parent

Million yen%

Million yen%

Yen

100 (93.7)
400 (91.5)

400
700

(40.2)(59.3)

12.22
21.38

Million yen%

Million yen%

19,00038,500(9.9)(12.3)

200
1,400(90.3)(74.3)

Basic earnings
per share* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2020: 36,000,000 shares
March 31, 2019: 36,000,000 shares2) Total number of treasury shares at the end of the period:
March 31, 2020: 3,263,245 shares
March 31, 2019: 3,263,245 shares
3) Average number of shares during the period:
Fiscal Year ended March 31, 2020: 32,736,755 sharesFiscal Year ended March 31, 2019: 32,736,755 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2020 (April 1, 2019 to March 31,
2020)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Operating income
Ordinary income
ProfitFiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
March 31, 2020
11,269
2.7
617
(8.0)
855 (15.7)
579 (15.9)
March 31, 2019
10,969
8.2
671
3.9
1,014
58.7
689
57.4
Basic earnings per share
Fiscal year ended
March 31, 2020
March 31, 2019(2) Non-consolidated Financial Position
Total assets
Million yen

Diluted earnings per share
Yen

Yen

16.11
19.15

–
–

Net assets
Million yen

As of March 31, 2020
21,831
22,285
As of March 31, 2019
(Reference) Equity: As of March 31, 2020: ¥6,627 million
As of March 31, 2019: ¥6,515 million

6,627
6,515

Equity ratio

Net assets per share
%

Yen

30.4
29.2

184.17181.04* These consolidated financial results are outside the scope of audit by certified public accountants and audit
corporations.
* Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements herein are based on the information available atthe time of preparation of this report and certain assumptions believed to be reasonable, and the Company does notassure the achievement of any of these. Actual results may differ significantly from the forecast due to a wide
range of factors. Please refer to “(4) Future Outlook” on page 5 of the attached supplementary materials for
information regarding the underlying assumptions for financial results forecast, as well as explanatory and othernotes regarding the use of financial results forecast.

Supplementary Materials: Table of Contents
1. Overview of Business Results, etc. ................................................................................................................ 2(1) Overview of Business Results for the Fiscal Year under Review .............................................................. 2(2) Overview of Financial Position for the Fiscal Year under Review ............................................................ 3(3) Overview of Cash Flows for the Fiscal Year under Review ....................................................................... 3(4) Future Outlook ........................................................................................................................................... 5
2. Basic Stance Concerning Choice of Accounting Standards ........................................................................... 6
3. Consolidated Financial Statements and Primary Notes .................................................................................. 7(1) Consolidated Balance Sheets ..................................................................................................................... 7(2) Consolidated Statements of Income and Comprehensive Income ............................................................. 9(3) Consolidated Statements of Changes in Net Assets ................................................................................. 11(4) Consolidated Statements of Cash Flows .................................................................................................. 13(5) Notes to the Consolidated Financial Statements ...................................................................................... 15(Notes on Going Concern Assumption) .............................................................................................. 15(Segment Information) ........................................................................................................................ 15(Per Share Information) ....................................................................................................................... 17(Significant Subsequent Events) .......................................................................................................... 171

1. Overview of Business Results, etc.
(1) Overview of Business Results for the Fiscal Year under Review<Business environment>
During the fiscal year under review, the global economy continued to struggle due to instability arising fromtrade friction between the U.S. and China and the UK’s departure from the European Union, and the global
economic growth rate amounted to 2.9%. Moreover, an abrupt slowdown occurred since entering into the newyear due to the worldwide spread of novel coronavirus infections.
The U.S. economy experienced sluggish export and production activities due to the U.S. and China trade
friction, although a trade agreement between those two nations gave rise to glimmers of a partial easing of the
trade conflict. The pace of growth in the European economy softened on account of a diminished appetite forcorporate investment amidst a prolonged downturn in the manufacturing industry. The Chinese economy
experienced lower exports to the U.S. on account of the trade friction, although there were signs that theeconomy had bottomed out thanks to government policies and other factors. On the other hand, the Japanese
economy saw export and production activities slow in tandem with a deceleration in overseas economies.
Personal consumption took a downward turn on the impact of large-scale typhoons and a consumption tax hike,although there appeared to be some movement toward a slight recovery.
In the fiscal year under review, the foreign exchange rate began at the ¥111 level, and then progressed
toward yen appreciation over the summer owing to escalating severity in the U.S. and China trade friction, andthen a transition to an easing of U.S. monetary policy. The foreign exchange rate remained comparatively
favorable even after the Federal Reserve Board (FRB) turned toward lower interest rates since autumn, anddespite a temporary appreciation of the yen due to the spread of novel coronavirus infections, the rate returnedto the ¥108 level toward the end of the fiscal year, and settled into a narrow range.
<International shipping business>
The large tanker market remained weak on the impact of the initial geopolitical risk in the Persian Gulf,
although U.S. economic sanctions placed on certain Chinese shipping companies from late September to the
middle of October temporarily lifted the market to record levels, and settled into a relatively high level. It
subsequently appeared that stability had been achieved against the backdrop of seasonal factors. However,triggered by the spread of novel coronavirus infections, crude oil demand tumbled together with worldwide
economic activity, driving the market down to levels lower than in a typical year. While the product tanker
market remained in a state of oversupply, there was a gradual increase in shipping activity, which was graduallyreflected in market conditions. Nonetheless, the impact of novel coronavirus has offset seasonal winter demand,and conditions have remained flat.
The bulk carrier market experienced volatile conditions, with large vessels swinging from an exceedingly
low mark of US$10,000 for charter hire rates at the beginning of the year to well above US$30,000 from thesummer months to November. In December, they once again steeply declined to the US$10,000 level, where
they remained. On the other hand, small and medium-sized vessels were apparently less influenced by market
turbulence than were the large vessels, however, they seemed to be similarly lifted temporarily after thesummer. Despite this, over the winter season they trended downward and have remained at a low level.
The car carrier market was at an overall low level. Against the backdrop of U.S. and China trade friction in
the first half and other factors, shipments to China declined, and transportation within Europe also fell.
In the container ship market, while shipments on North American routes had been weak until December,demand on European routes improved, a sign of regional disparity. However, the spread of the novel
coronavirus has had a significant impact, leading to a record high level number of vessels in lay-up, whichamong other factors has spurred a slowdown.
Under these conditions, net sales in the international shipping business for the fiscal year under review were¥31,451 million (an increase of 5.1% year on year). This is mainly attributable to an increase in the operation ofvessels delivered or acquired in the previous fiscal year, in addition to the new operation of two tankers in the2

fiscal year under review. Segment profit in the international shipping business amounted to ¥3,872 million (anincrease of 15.9% year on year) owing to a decline in docking expenses. In addition, ¥1,046 million of gain on
sales of two vessels held by the Company’s consolidated subsidiaries was recorded in extraordinary income andan impairment loss on two vessels in the amount of ¥1,449 million was recorded in extraordinary loss.
<Hotel-related business>
In the hotel-related business, the accommodation division demonstrated firm performance, although
struggles in the banquet division exerted a slight impact and net sales in the business stood at ¥11,918 million(a decrease of 1.9% year on year). Segment profit in the hotel-related business was ¥1,266 million (a decreaseof 3.8% year on year).
<Real estate leasing business>
Net sales in the real estate leasing business were ¥511 million (a decrease of 3.1% year on year). Segment
profit in the real estate leasing business was ¥305 million (an increase of 13.1% year on year). This was
because, as opposed to the previous fiscal year when there was large-scale renovation work that weighed on
earnings, there was no such renovation work that impacted earnings for this fiscal year.
As a result, for the fiscal year under review, net sales were ¥43,881 million (an increase of 3.0% year onyear), operating income was ¥5,444 million (an increase of 10.5% year on year), ordinary income was ¥4,700
million (an increase of 7.4% year on year), and profit attributable to owners of parent amounted to ¥1,719
million (a decrease of 16.1% year on year).
The spread of the novel coronavirus did not have a direct impact on business performance in the fiscal year
under review as most consolidated subsidiaries of the Company and equity method affiliates have accounting
periods that end in December.

(2) Overview of Financial Position for the Fiscal Year under Review
Assets as of the end of the fiscal year under review increased by ¥9,158 million from the end of the previous
fiscal year to ¥175,787 million. This is mainly attributable to an increase in construction in progress and otherproperty, plant and equipment.
Liabilities increased by ¥6,943 million from the end of the previous fiscal year to ¥134,483 million. This ismainly attributable to an increase in loans payable. Furthermore, net assets increased by ¥2,214 million from theend of the previous fiscal year to ¥41,304 million. This is mainly attributable to increases in retained earnings andnon-controlling interests.

(3) Overview of Cash Flows for the Fiscal Year under Review
Cash and cash equivalents as of the end of the fiscal year under review increased by ¥3,276 million from theend of the previous fiscal year to ¥19,500 million. The conditions of each cash flow as of the end of the fiscal year
under review are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities as of the end of the fiscal year under review increased by ¥501 million
from the previous fiscal year to ¥14,476 million. This is mainly attributable to ¥4,205 million of profit before
income taxes which was adjusted with ¥11,165 million of depreciation and amortization, etc.
(Cash flows from investing activities)
Net cash used in investing activities as of the end of the fiscal year under review decreased by ¥7,525 million
from the previous fiscal year to ¥18,369 million. This is mainly attributable to the difference of ¥18,268 million
between the payment of ¥21,475 million in expenses for new shipbuilding, and proceeds from sales of property,
3plant and equipment of ¥3,206 million.
(Cash flows from financing activities)
Net cash provided by financing activities as of the end of the fiscal year under review decreased by ¥2,458
million from the previous fiscal year to ¥7,195 million. This is mainly attributable to the difference of ¥8,059
million between the sum of proceeds from long-term loans payable of ¥30,794 million, and repayments of longterm loans payable and redemption of bonds of ¥22,734 million.

4(4) Future Outlook
Looking ahead to the future global economy, the worldwide spread of the novel coronavirus has drasticallychanged conditions, and the outlook for the future has become uncertain.
The U.S. economy will be unable to avoid an abrupt economic contraction, despite the FRB having taken
emergency action to lower interest rates amid a rapidly changing situation. The European economy will inevitably
be impacted in terms of economic activity even though the European Central Bank (ECB) is keeping its policy
interest rates unchanged while bolstering its policy of quantitative easing. The Chinese economy is facing
downward pressure on domestic and foreign demand and limitations to the momentum of its recovery on accountof the deceleration of the world economy due to the global spread of infections, despite the Chinese
government’s efforts to strengthen measures to support the restarting of economic activities.
The Japanese economy is also projected to be faced with an eminent recession with the postponement of theTokyo Olympics and Paralympics Games due to the spread of novel coronavirus, in addition to other factors.
In these economic conditions, there shall be no change to the Group’s management policy, and the Company
will endeavor to further enhance its management foundations based on safety, security and stability.
In the international shipping business, although the vessels delivered in the fiscal year under review will go intofull operation and there are plans for the acquisition of over 10 vessels that are slated to go into operation in thenext fiscal year, estimates for a stronger yen mean net sales are expected to be limited to ¥34,000 million, andsegment profit in the business is projected to be ¥2,800 million due to a doubling of docked vessels compared tothe current fiscal year. From the next fiscal year onward, the Company plans to continue controlling budgets forshipping expenses thoroughly, focusing on docking expenses as a countermeasure against yen appreciation, andendeavor to ensure a stable profit structure based on the medium-to long-term time charter. Going forward, for safe
vessel operation, active initiatives will be taken to maintain high quality seafarers and the enhancement of theireducation.
In the hotel-related business, the impact of the novel coronavirus pandemic has resulted in a substantial decline
in customer numbers, not only those visiting from overseas, but also of domestic guests who are increasingly
exercising self-restraint in terms of travel. At the current stage, despite the premise of a gradual recovery fromabout October, the Company anticipates low occupancy during summer when occupancy rates are normally high.
Given these factors, the Company projects net sales of ¥4,000 million and a hotel-related business loss of ¥1,700
million.
In the real estate leasing business, the Company will continue to aim to secure stable earnings in the future by
maintaining and enhancing the quality of the Company’s real estate properties. Net sales in the real estate leasing
business are expected to be ¥500 million while segment profit in the business is expected to be ¥300 million.
As a result of the above, the Company expects full-year consolidated net sales of ¥38,500 million (a decrease of
12.3% compared with the current fiscal year), and consolidated operating income of ¥1,400 million (a decrease of
74.3% compared with the current fiscal year). In terms of non-operating profit and loss, the Company expects
consolidated ordinary income of ¥400 million (a decrease of 91.5% compared with the current fiscal year) due toan expected decline in equity in earnings of affiliates on account of anticipated yen appreciation. In addition,
because a determination has been made to sell a vessel held by one of the Company’s consolidated subsidiary, again on sale of approximately ¥400 million will be posted in extraordinary income, and also as a result ofconsideration on recoverability of deferred tax assets of consolidated subsidiaries, the Company expects to post
approximately ¥300 million in income taxes – deferred (profit), and projects final profit attributable to owners ofparent of ¥700 million (a decrease of 59.3% compared with the current fiscal year). Furthermore, the Company
projects the foreign exchange rate for next year to shift toward ¥105 to the U.S. dollar.

52. Basic Stance Concerning Choice of Accounting Standards
Taking into consideration the comparability of consolidated financial statements across periods and among
companies, the Group’s policy is to prepare its consolidated financial statements using Japanese GAAP for thetime being. With regard to application of International Financial Reporting Standards (IFRS), the Group’s policy is
to respond appropriately based on consideration of the situation in Japan and overseas.

6

3. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(Thousand yen)
As of March 31, 2019
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise and finished goods
Raw materials and supplies
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Vessels, net
Buildings and structures, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Total investments and other assets
Total noncurrent assets
Total assets

7

As of March 31, 2020

16,471,715
839,769
27,405720,0422,691,877
20,750,810

19,592,201
885,690
26,298664,346
3,056,305
24,224,842

102,070,321
12,346,029
8,679,167
5,378,500
471,546
128,945,564

99,449,928
11,934,661
8,677,822
13,915,713
606,527
134,584,654

85,74485,74486,93686,936

13,907,502
895,165
992,167
1,052,307
16,847,142
145,878,451
166,629,261

13,489,175
1,133,673
1,238,838
1,029,701
16,891,390
151,562,980
175,787,823

(Thousand yen)
As of March 31, 2019
Liabilities
Current liabilities
Accounts payable - shipping
Current portion of bonds
Short-term loans payable
Lease obligations
Accounts payable - other
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision
Provision for directors’ retirement benefits
Provision for periodic dry docking of vessels
Total provisions
Net defined benefit liability
Liabilities from application of equity method
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

8

As of March 31, 2020

1,544,406
1,095,500
26,400,206
178,498
943,583
336,849
50,7994,443,856
34,993,699

1,725,759
948,000
25,258,347
176,185
852,150
359,730
55,4434,889,780
34,265,395

2,606,000
80,929,529
2,347,065
191,952
1,043,086

1,658,000
90,574,425
2,138,430
315,437
1,043,086

235,494
2,013,784
2,249,278
352,701
1,035,790
1,791,061
92,546,465
127,540,164

235,494
2,307,664
2,543,158
352,105
828,159
765,585
100,218,387
134,483,782

1,800,000
21,12812,606,156(675,520)
13,751,764

1,800,000
21,12814,159,697(675,520)
15,305,305

513,140(329,896)
1,906,276
1,013,991
3,103,510
22,233,821
39,089,096
166,629,261

224,038(613,649)
1,906,276
833,786
2,350,452
23,648,282
41,304,040
175,787,823

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Thousand yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of vessel
Other
Total extraordinary income
Extraordinary loss
Impairment loss
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

For the fiscal year
ended March 31, 2019
42,604,106
33,523,392
9,080,713
4,153,069
4,927,644

For the fiscal year
ended March 31, 2020
43,881,284
34,214,206
9,667,077
4,222,225
5,444,852

87,485104,236416,964
690,368
262,671
1,561,726

96,095112,363
49,178789,915535,411
1,582,965

1,901,672
209,299
2,110,971
4,378,399

2,140,746
186,326
2,327,073
4,700,744―
55,67055,6701,046,173―
1,046,173―――
4,434,069
609,846(92,972)
516,874
3,917,194
1,867,591
2,049,603

1,449,012
92,424
1,541,436
4,205,481
661,975
22,210684,185
3,521,296
1,801,490
1,719,805

9

Consolidated Statements of Comprehensive Income(Thousand yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

For the fiscal year
ended March 31, 2019
3,917,194

For the fiscal year
ended March 31, 2020
3,521,296(136,524)
136,889(266,792)(277,484)
12,377(204,480)(147,789)(425,421)(414,216)
3,502,977(895,008)
2,626,287

1,769,406

966,747

1,733,570

1,659,540

10

(3) Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31, 2019
(Thousand yen)
Shareholders’ equity
Capital stock Capital surplus
Balance at beginning of current
period1,800,000

21,128Retainedearnings

Treasury shares

10,736,493(675,520)

Total shareholders’equity11,882,102

Changes of items during period
Dividends of surplus
Change in scope of equity
methodProfit attributable to ownersof parent
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period(179,941)(179,941)――

2,049,603

2,049,603――

1,869,662―

1,869,662

1,800,000

21,12812,606,156(675,520)

13,751,764

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Deferred
gains or losses
on hedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets625,473(321,616)

1,906,276

1,173,573

3,383,706

20,937,331

36,203,140

Changes of items during period
Dividends of surplus
Change in scope of equity
methodProfit attributable to ownersof parent
Net changes of items otherthan shareholders’ equity(179,941)―
2,049,603(112,333)(8,280)―(159,582)(280,196)

1,296,490

1,016,294

Total changes of items during
period(112,333)(8,280)―(159,582)(280,196)

1,296,490

2,885,956

Balance at end of current period

513,140(329,896)

1,906,276

1,013,991

3,103,510

22,233,821

39,089,096

11For the fiscal year ended March 31, 2020
(Thousand yen)
Shareholders’ equity
Capital stock Capital surplus
Balance at beginning of current
period1,800,000

21,128Retainedearnings

Treasury shares

12,606,156(675,520)

Total shareholders’equity13,751,764

Changes of items during period
Dividends of surplus
Change in scope of equity
methodProfit attributable to ownersof parent
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period(179,941)(179,941)

13,676

13,676

1,719,805

1,719,805――

1,553,541―

1,553,541

1,800,000

21,12814,159,697(675,520)

15,305,305

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Deferred
gains or losses
on hedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets513,140(329,896)

1,906,276

1,013,991

3,103,510

22,233,821

39,089,096

Changes of items during period
Dividends of surplus
Change in scope of equity
methodProfit attributable to ownersof parent
Net changes of items otherthan shareholders’ equity(179,941)
13,676
1,719,805(289,101)(283,752)―(180,204)(753,058)

1,414,460

661,402

Total changes of items during
period(289,101)(283,752)―(180,204)(753,058)

1,414,460

2,214,943

Balance at end of current period

224,038(613,649)

1,906,276

833,786

2,350,452

23,648,282

41,304,040

12

(4) Consolidated Statements of Cash Flows(Thousand yen)
For the fiscal year
ended March 31, 2019
Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Impairment loss
Loss (gain) on valuation of investment securities
Interest and dividend income
Loss (gain) on sales and retirement of property, plantand equipment
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on investments in silent partnership
Loss (gain) on valuation of derivatives
Equity in earnings losses of affiliates
Increase (decrease) in provision for directors’ retirement
benefits
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for periodic dry docking
of vessels
Increase (decrease) in advances received
Decrease (increase) in inventories
Decrease (increase) in consumption taxes refund
receivable
Increase (decrease) in accounts payable - shipping
Decrease (increase) in other current assets
Other
SubtotalInterest 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 property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of investment securities
Proceeds from sales and redemption of investment
securities
Payments of loans receivableCollection of loans receivable
Other
Net cash provided by (used in) investing activities

13

For the fiscal year
ended March 31, 2020

4,434,069
10,515,360――(191,722)

4,205,481
11,165,946
1,449,012
92,424(208,459)

18,135(1,044,130)

1,901,672(390,637)(40,212)(41,134)(690,368)

2,140,746(95,809)(191,973)(20,314)(789,915)(3,277)―

11,709(596)

487,456

293,880

139,160
26,975

18,56956,802(4,459)1,624

92,729(391,868)
540,612
16,414,199
167,583(1,964,928)(641,578)
13,975,276

181,352(631,155)
264,170
16,887,656
453,891(2,221,544)(643,009)
14,476,993(22,802,255)
1,761(248,040)
26,000(3,074,837)(21,475,386)
3,206,564(91,724)
248,040(132,854)

19,992

15,721(120,000)
333,060(30,102)(25,894,421)(1,165,743)
1,105,957(79,731)(18,369,155)

(Thousand yen)
For the fiscal year
ended March 31, 2019
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Cash dividends paid
Dividends paid to non-controlling interests
Repayments of lease obligations
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period(1,844,303)
31,340,389(16,566,439)
488,960(1,207,000)(179,304)(437,080)(2,313,066)
371,613
9,653,768(254,543)(2,519,920)
18,743,596
16,223,675

14

For the fiscal year
ended March 31, 2020
(236,195)
30,794,188(21,639,355)―(1,095,500)(179,108)(245,080)(210,948)
7,460
7,195,459(26,496)
3,276,801
16,223,675
19,500,477

(5) Notes to the Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.
(Segment Information)[Segment Information]
1. Description of reportable segments
Reportable segments of the Company are determined as segments whose separate financial information isaccessible from among the constituent units of the Company and are regularly examined by the Board of
Directors to determine the allocation of management resources and to evaluate achievements.
The reportable segments of the Company are composed of three segments, which are international shipping
business, hotel-related business, and real estate leasing business, and the Group companies of the Company
conduct business activities in each of these segments.
In the international shipping business, the Company operates businesses relating to shipping, centered on avessel leasing business, in addition to ship management operations. In the hotel-related business, the Company
presently holds hotels and golf courses at various locations, and offers services related to these facilities. In thereal estate leasing business, the Company conducts a rental space leasing business, centered on office buildings
held by the Group.
2. Method of measurement for the amounts of net sales, profit (loss), assets, liabilities and other items for eachreportable segment
The accounting method used for reporting business segments is generally the same as the method used forthe preparation of consolidated financial statements.

15

3. Information on net sales, profit (loss), assets, liabilities and other items by reportable segment
For the fiscal year ended March 31, 2019
International
shipping
business
Net sales
Net sales to outside customers
Inter-segment net sales or transfers
Total
Segment profit
Segment assets
Segment liabilities
Other items
Depreciation and amortization
Increase in property, plant andequipment and intangible fixed
assets(Note)(Thousand yen)
Reportable segment
Real estate
Hotel-related
leasingbusinessbusiness

Total

Adjustment

29,932,337―
29,932,337
3,341,400
140,375,271
110,426,977

12,144,277―
12,144,277
1,315,938
19,196,876
14,024,523

527,490―
527,490
270,304
7,057,113
3,088,664

42,604,106―
42,604,106
4,927,644
166,629,261
127,540,164

―
―
―
―
―
―

42,604,106―
42,604,106
4,927,644
166,629,261
127,540,164

9,618,281

797,008

100,069

10,515,360―

10,515,360

22,126,215

571,639

234,584

22,932,439―

22,932,439

Segment profit is equivalent to operating income in the Consolidated Statements of Income.

For the fiscal year ended March 31, 2020
International
shipping
business
Net sales
Net sales to outside customers
Inter-segment net sales or transfers
Total
Segment profit
Segment assets
Segment liabilities
Other items
Depreciation and amortization
Increase in property, plant andequipment and intangible fixed
assets(Note)

Total(Thousand yen)
Reportable segment
Real estate
Hotel-related
leasingbusinessbusiness

Total

Adjustment

Total

31,451,261―
31,451,261
3,872,476
148,853,216
117,502,108

11,918,970―
11,918,970
1,266,543
19,788,916
14,216,391

511,052―
511,052
305,832
7,145,690
2,765,282

43,881,284―
43,881,284
5,444,852
175,787,823
134,483,782

―
―
―
―
―
―

43,881,284―
43,881,284
5,444,852
175,787,823
134,483,782

10,288,056

784,807

93,082

11,165,946―

11,165,946

19,961,357

944,510

26,44820,932,315―

20,932,315

Segment profit is equivalent to operating income in the Consolidated Statements of Income.

4. Differences between amounts recognized in reporting segments and the corresponding amounts reported in the
consolidated financial statements, and the primary items contributing to the difference
There is no relevant information.
[Information concerning impairment loss on noncurrent assets by reportable segment]
For the fiscal year ended March 31, 2019
Impairment loss did not occur.
For the fiscal year ended March 31, 2020
International
shipping businessImpairment loss

1,449,012

Reportable segment
Hotel-related
business―(Thousand yen)
Real estate leasing
business―

16

Corporate andelimination

Total
―

1,449,012

(Per Share Information)
For the fiscal year
ended March 31, 2019
Net assets per share

For the fiscal year
ended March 31, 2020

¥514.87¥539.33

Basic earnings per share¥62.61¥52.53(Notes) 1. Diluted earnings per share is not disclosed since there are no potentially dilutive shares.
2. The basis for the calculation of basic earnings per share is as follows.
For the fiscal year
For the fiscal year
ended March 31, 2019
ended March 31, 2020
Basic earnings per share
Profit attributable to owners of parent
2,049,603
1,719,805(Thousand yen)Amount not attributable to commonshareholders (Thousand yen)――

2,049,603

1,719,805

32,73632,736

3. The basis for the calculation of net assets per share is as follows.
For the fiscal year
ended March 31, 2019

For the fiscal year
ended March 31, 2020

Total net assets (Thousand yen)

39,089,096

41,304,040

Deductible amount from total net assets(Thousand yen)

22,233,821

23,648,282[Non-controlling interests (Thousand yen)][22,233,821][23,648,282]

16,855,275

17,655,758

32,73632,736

Profit attributable to owners of parent
relating to common shares (Thousand yen)
Average number of shares of commonshares outstanding during each fiscal year
(Thousand shares)

Net assets relating to common shares at end ofyear (Thousand yen)
Number of common shares for calculation of
net assets per share at end of year (Thousand
shares)(Significant Subsequent Events)
The Company has determined that it will sell a vessel held by one of its consolidated subsidiary (with a fiscal
year end date of December 31), following the date of that company’s fiscal year end. Given this, the Company will
post approximately ¥400 million under extraordinary income in the following consolidated fiscal year, and projects
an impact of approximately ¥200 million in profit attributable to owners of parent.

17