Consolidated Financial Results
for the Fiscal Year Ended March 31, 2021
[Japanese GAAP]May 14, 2021
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 29, 2021
Scheduled date of commencing dividend payments: June 30, 2021
Scheduled date of filing annual securities report: June 29, 2021
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, 2021 (April 1, 2020 to March 31, 2021)(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, 2021
40,153(8.5)
2,081 (61.8)
2,623 (38.4)
1,246 (27.5)
March 31, 2020
43,881
3.0
5,444
10.5
4,255
5.0
1,719 (16.1)(Note) Comprehensive income: Fiscal year ended March 31, 2021: ¥1,433 million [(35.3)%]
Fiscal year ended March 31, 2020: ¥2,215 million [(31.2)%]
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, 2021
37.95
–
6.8
1.4
March 31, 2020
52.53
–
10.0
2.6
(Reference) Equity in earnings (losses) of affiliates: Fiscal year ended March 31, 2021: ¥517 million
Fiscal year ended March 31, 2020: ¥344 million(2) Consolidated Financial Position
Total assets

Net assets

Million yen

As of March 31, 2021
205,099
As of March 31, 2020
170,593(Reference) Equity: As of March 31, 2021: ¥19,072 million
As of March 31, 2020: ¥17,655 million

Equity ratio

%

5.2
12.4

Net assets per share

Million yen%

Yen38,73936,6609.3
10.3

569.20539.33(3) Consolidated Cash Flows
Cash flows fromoperating activities

Fiscal year ended
March 31, 2021
March 31, 2020

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Million yen

Million yen

Million yen

Million yen

13,144
14,476(40,569)(18,369)

29,474
7,195

21,02919,5002. Dividends
Annual dividends
1st
2nd
3rd
Year-endquarter-end quarter-end quarter-end

Total

Total
dividends

Payoutratio(consolidated)

Dividends
to netassets(consolidated)

Fiscal year ended
Yen
Yen
Yen
Yen
Yen Million yen%%
March 31, 2020
–
–
–
5.00
5.00
179
9.5
0.9
March 31, 2021
–
–
–
7.00
7.00
251
18.4
1.3
Fiscal year ending
March 31, 2022
–
–
–
–
–
–
(Forecast)(Note) Dividend forecast for the fiscal year ending March 31, 2022 is not available at this point.
Breakdown of year-end dividend for the fiscal year ended March 31, 2021: Ordinary dividend: 5.00 yen
Commemorative dividend: 2.00 yen
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March
31, 2022)(% 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

300 (57.8)
1,700 (35.2)

200
800

(49.5)(35.8)

5.97
23.87

Million yen%

Million yen%

19,80043,500

2.8
8.3

700
2,900

(29.7)
39.3

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): Yes(Changes in specified subsidiaries resulting in changes in scope of consolidation)
Newly included: 1 company (TRINITY BULK, S.A.)(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: Yes
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, 2021: 36,000,000 shares
March 31, 2020: 36,000,000 shares2) Total number of treasury shares at the end of the period:
March 31, 2021: 2,491,635 shares
March 31, 2020: 3,263,245 shares
3) Average number of shares during the period:
Fiscal Year ended March 31, 2021: 32,847,831 sharesFiscal Year ended March 31, 2020: 32,736,755 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 to March 31,
2021)(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, 2021
11,093(1.6)
381 (38.2)
1,002
17.2
687
18.5
March 31, 2020
11,269
2.7
617
(8.0)
855 (15.7)
579 (15.9)
Basic earnings per share
Fiscal year ended
March 31, 2021
March 31, 2020
(2) Non-consolidated Financial Position
Total assets
Million yen

Diluted earnings per share
Yen

Yen

19.10
16.11

–
–

Net assets
Million yen

As of March 31, 2021
24,52921,831
As of March 31, 2020
(Reference) Equity: As of March 31, 2021: ¥7,367 million
As of March 31, 2020: ¥6,627 million

7,367
6,627

Equity ratio

Net assets per share
%

Yen

30.0
30.4

204.71
184.17* 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
1. The earnings forecasts and other forward-looking statements herein are based on the information available at thetime 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.
2. The Company changed the accounting policies from the consolidated fiscal year ended March 31, 2021 and forthe related items shown for the consolidated fiscal year ended March 31, 2020, the changes have been applied
retrospectively. Items affected by the changes are ordinary income, comprehensive income, net assets, total
assets, and equity ratio. The detail of changes in accounting policies is provided in “(5) Notes to theConsolidated Financial Statements (Changes in Accounting Policies)” on page 15 of the attached supplementarymaterials.

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(Changes in Accounting Policies) ....................................................................................................... 15(Segment Information) ........................................................................................................................ 15(Per Share Information) ....................................................................................................................... 18(Significant Subsequent Events) .......................................................................................................... 18

1

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 was severely impacted by a worldwide wave ofnovel coronavirus infections and experienced a 3.3% negative rate of growth.
The U.S., Europe and Japan all experienced the steepest decline in their actual GDP growth rates, for the
April to June period, since statistics first began to be recorded, and getting activity back on track to precoronavirus pandemic levels is projected to be difficult. However, with vaccines having appeared on the scene
and adaptation to a new normal, along with an ongoing and unprecedented fiscal mobilization and monetaryeasing lifted the growth rate in the second half to exceed expectations.
The economy in China was quick to see a full-fledged resurgence in economic activities, and within 2020
had returned to pre-corona pandemic levels.
In the fiscal year under review, the foreign exchange rate began at the ¥108 level, and then progressed
toward yen appreciation, ending December 2020 at the ¥103 level. Against the backdrop of rising U.S. longterm interest rates from the start of the new year, the rate had returned to ¥110 level at the end of the fiscal year.
<International shipping business>
The large tanker market started strong at the onset of 2020, although a surge in novel coronavirus infections
decreased demand and the business fell precipitously in the middle of January. In March, with the agreement by
OPEC Plus to cut production having fallen apart, Saudi Arabia boosted crude oil production which stimulated
charter activities, and for a brief period market conditions appeared to soar. However, in May, OPEC Plus again
agreed to cooperatively reduce production, which resulted in a decline in transportation demand that led to a
subsequent drop in business. It was from around July when the charter hire rate fell below the break-even pointof US$30,000, and at the end of September it had dipped below the US$10,000 level. With no hints of arecovery granted by the seasonal winter demand of the northern hemisphere, the rate remained at a low level.
The product tanker market was stagnant throughout the year as a decline in jet fuel demand, caused by mobility
restrictions in line with measures to prevent the spread of the novel coronavirus, had the effect of substantiallysuppressing operations at oil refineries, even though there was a partial recovery of market conditions from
April to July that was linked to offshore oil storage demand for crude oil tankers.
The bulk carrier market had been trending toward decline from the end of 2019, chiefly with large vessels,
then accelerated into stagnation with the added burden of rising novel coronavirus infections from the
beginning of the year. In May, the average charter hire rate for the five major capesize carrier routes dipped
briefly into the US$2,000 level, which was essentially on par with the record low price recorded in 2016. On
another front, from June there was a rebound in shipments to China, which had been quick off the mark toreopen economic activities, and capesize market conditions also rapidly recovered. As a result, the average
charter hire rate for the five major capesize carrier routes doubled from the first half, to the US$18,000 level inthe second half. Small and medium-sized vessels were apparently less influenced by market turbulence thanwere the large vessels, however, they were at a similarly low level in the first half, moved to recovery in thesecond half, and entered into 2021 by rising even further at a brisk pace.
The car carrier market experienced shipments from April that were essentially cut in half, having been hit byhalts to sales and production of automobiles on account of the impact of a growing rate of novel coronavirus
infections. The effect of this was that operators in Japan and Europe scrapped or made early redelivery of ships,
thereby forcing a contraction to the fleet, while some ships were put in lay-up in Europe. On the other hand,with some countries reopening economic activities from June, finished car shipments began to move toward
recovery, and at the end of the year, shipments to North America had recovered to the previous year’s levels.
Overall, despite delays in shipping to resource-exporting countries, conditions recovered to 80% to 90% oflevels prior to the surge in novel coronavirus infections.

2

In the container ship market, while shipments had been stagnant from the start of 2020 due to the impact of
spreading novel coronavirus infections, a reactionary rebound occurred from the middle of the year, which
together with rising stay-at-home demand, particularly in developed nations, led to the appearance of a rapid
recovery. In tandem with this, the low rate of operations at port facilities in North America and other locations
increased shipping congestion, and large vessels in the market remained at a high level.
Under these conditions, net sales in the international shipping business for the fiscal year under review were¥34,506 million (an increase of 9.7% 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 nine tankers, fivebulk carriers, and one car carrier in the fiscal year under review. Segment profit in the international shipping
business amounted to ¥3,540 million (a decrease of 8.6% year on year) due to an increase in docking expenses.
In addition, as extraordinary gains (losses), the Company recorded ¥1,062 million in gain on sales of four
vessels held by the Company’s consolidated subsidiaries, ¥1,528 million as an impairment loss on three vessels,
and by making the Company’s equity method affiliate into a consolidated subsidiary, also posted ¥582 million
in gain on bargain purchase and ¥455 million in loss on step acquisitions.
<Hotel-related business>
In the hotel-related business, the spread of the novel coronavirus has led to a situation of unprecedented low
hotel occupancy rates, with domestic guests increasingly exercising self-restraint in terms of travel, andmoreover, inbound demand dramatically reduced on account of restrictions on entry into the country. As aresult, net sales in the business stood at ¥5,141 million (a decrease of 56.9% year on year), and segment loss inthe hotel-related business was ¥1,753 million (a profit of ¥1,266 million in the hotel-related business in theprevious fiscal year).
<Real estate leasing business>
Net sales in the real estate leasing business were ¥505 million (a decrease of 1.1% year on year). Segment
profit in the real estate leasing business was ¥294 million (a decrease of 3.8% year on year).
As a result, for the fiscal year under review, net sales were ¥40,153 million (a decrease of 8.5% year onyear), operating income was ¥2,081 million (a decrease of 61.8% year on year), ordinary income, due to theposting of subsidies for employment adjustment in the hotel-related business and a charter contract cancellation
fee as non-operating income, was ¥2,623 million (a decrease of 38.4% year on year), and profit attributable toowners of parent amounted to ¥1,246 million (a decrease of 27.5% year on year).

(2) Overview of Financial Position for the Fiscal Year under Review
Assets as of the end of the fiscal year under review increased by ¥34,505 million from the end of the previous
fiscal year to ¥205,099 million. This is mainly attributable to an increase in vessels and other property, plant andequipment.
Liabilities increased by ¥32,426 million from the end of the previous fiscal year to ¥166,359 million. This ismainly attributable to an increase in loans payable. Furthermore, net assets increased by ¥2,079 million from theend of the previous fiscal year to ¥38,739 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 ¥1,528 million from theend of the previous fiscal year to ¥21,029 million. The conditions of each cash flow as of the end of the fiscal year
under review are as follows.

3

(Cash flows from operating activities)
Net cash provided by operating activities as of the end of the fiscal year under review decreased by ¥1,332
million from the previous fiscal year to ¥13,144 million. This is mainly attributable to ¥2,420 million of profit
before income taxes which was adjusted with ¥12,763 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 increased by ¥22,200 million
from the previous fiscal year to ¥40,569 million. This is mainly attributable to the payment of ¥49,943 million in
expenses for new shipbuilding, and proceeds from sales of property, plant and equipment of ¥6,670 million.
(Cash flows from financing activities)
Net cash provided by financing activities as of the end of the fiscal year under review increased by ¥22,279
million from the previous fiscal year to ¥29,474 million. This is mainly attributable to the difference of ¥30,135
million between the sum of proceeds from long-term loans payable of ¥56,858 million, and repayments of longterm loans payable, redemption of bonds and repayments of lease obligations of ¥26,723 million.

4(4) Future Outlook
The growth rate of the global economy in 2021 is projected to be 6.0%, although concerns exist about aprolonged coronavirus pandemic on account of newly discovered coronavirus variants, and other factors that makethis forecast increasingly uncertain.
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, the vessels delivered in the fiscal year under review will go into fulloperation, and as the five vessels scheduled for acquisition in the next fiscal year are predicted to go into operation,
net sales are expected to be ¥38,700 million. In terms of expenses, docked vessels are expected to number half thatof the current fiscal year, and segment profit in the business is projected to be ¥4,480 million. From the next fiscal
year onward, the Company will work to unerringly address changes in conditions, maintaining and enhancing its
fleet, and at the same time securing a safe structure for operations. In this way the Company will strive to secure astable profit structure based on the medium-to long-term time charter.
In the hotel-related business, struggles persist as the number of those infected with the novel coronavirus has
stopped falling, and the self-restraint on domestic travel continues, together with a lack of recovery in inbounddemand. The impact of the novel coronavirus is predicted to linger for the foreseeable future, and projections arefor net sales of ¥4,300 million, and for a hotel-related business loss of ¥1,850 million. Given these projections, theCompany will endeavor to reduce costs by using revenue forecasts as a basis for controlling proper staffing andreviewing the various conditions of outsourcing contracts, among other measures.
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 anticipated to be ¥270 million.
As a result of the above, the Company expects full-year consolidated net sales of ¥43,500 million (an increaseof 8.3% compared with the current fiscal year), and consolidated operating income of ¥2,900 million (an increaseof 39.3% compared with the current fiscal year). In terms of non-operating profit and loss, the Company projects
consolidated ordinary income of ¥1,700 million (a decrease of 35.2% compared with the current fiscal year) due to
expectations for the recording foreign exchange losses on anticipated yen appreciation, and an expected decline inequity in earnings of affiliates. In addition, with the sale of one vessel held by a consolidated subsidiary (with afiscal year end date of December 31), and posting of gain on sales under extraordinary income, the Company
projects final profit attributable to owners of parent of ¥800 million (a decrease of 35.8% compared with thecurrent fiscal year). Furthermore, the Company projects the foreign exchange rate for next year to shift toward¥103 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, 2020
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, 2021

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

21,117,267
476,064
23,774
694,1093,644,290
25,955,506

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

141,496,97812,159,423
8,672,333
5,860,705
493,880
168,683,322

86,93686,936

71,486
71,486

8,295,323
1,133,673
1,238,838
1,029,701
11,697,538
146,369,128
170,593,971

7,338,603
1,042,321
921,103
1,087,367
10,389,395
179,144,204
205,099,710

(Thousand yen)
As of March 31, 2020
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, 2021

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

2,027,378
758,000
30,316,532
2,057
851,711
338,332
46,733
4,043,514
38,384,260

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

900,000
121,313,626
2,807
169,852
1,043,086

235,494
2,307,664
2,543,158
352,105
277,406
765,585
99,667,634
133,933,030

216,222
1,805,027
2,021,250
370,909428,569
1,725,349
127,975,452
166,359,712

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

1,800,000
525,490
15,226,332(580,595)
16,971,228

224,038(613,649)
1,906,276
833,786
2,350,452
19,005,182
36,660,940
170,593,971

441,660(581,997)
1,906,276
335,767
2,101,706
19,667,062
38,739,997
205,099,710

(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
Subsidies for employment adjustment
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of vessel
Gain on bargain purchase
Gain on forgiveness of debts
Total extraordinary income
Extraordinary loss
Impairment loss
Loss on step acquisitions
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, 2020
43,881,284
34,214,206
9,667,077
4,222,225
5,444,852

For the fiscal year
ended March 31, 2021
40,153,086
33,997,148
6,155,938
4,074,127
2,081,810

96,095112,363
49,178344,728―
535,411
1,137,777

68,772
59,914
435,507517,241
778,905
794,4882,654,831

2,140,746
186,326
2,327,073
4,255,557

1,923,239
190,222
2,113,461
2,623,180

1,046,173――
1,046,173

1,062,448
582,552
206,830
1,851,832

1,449,012―
92,424
1,541,436
3,760,294
661,975
22,210684,185
3,076,108
1,356,303
1,719,805

1,528,856
455,097
70,9782,054,932
2,420,080
498,919(407,580)
91,3382,328,741
1,082,164
1,246,576

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 to owners of parent
Comprehensive income attributable toComprehensive income attributable to non-controllinginterests

For the fiscal year
ended March 31, 2020
3,076,108

For the fiscal year
ended March 31, 2021
2,328,741(277,484)
12,377(204,480)

216,050(277,564)(984,774)(391,097)

151,457(860,684)
2,215,423
966,747(894,830)
1,433,910
997,831

1,248,676

436,07910

(3) Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31, 2020
(Thousand yen)
Shareholders’ equity
Capital stock Capital surplus
Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

Retainedearnings

Treasury shares

Total shareholders’equity1,800,000

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

13,751,764

1,800,000

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

13,751,764

Changes of items during period
Dividends of surplus(179,941)

Change in scope of equity
methodProfit attributable to ownersof parent(179,941)

13,676

13,676

1,719,805

1,719,805

Purchase of treasury shares
Disposal of treasury shares
Change in ownership interestof parent due to transactions
with non-controllinginterests
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period――

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
periodCumulative effects of changes
in accounting policies
Restated balance

Valuationdifference 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(4,232,235)(4,232,235)

18,001,586

34,856,861

513,140(329,896)

1,906,276

1,013,991

3,103,510

Changes of items during period
Dividends of surplus(179,941)

Change in scope of equity
methodProfit attributable to ownersof parent

13,676
1,719,805

Purchase of treasury shares
Disposal of treasury shares
Change in ownership interestof parent due to transactions
with non-controllinginterests
Net changes of items otherthan shareholders’ equity(289,101)(283,752)―(180,204)(753,058)

1,003,596

250,538

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

1,003,596

1,804,079

Balance at end of current period

224,038(613,649)

1,906,276

833,786

2,350,452

19,005,182

36,660,940

11For the fiscal year ended March 31, 2021
(Thousand yen)
Shareholders’ equity
Capital stock Capital surplus
Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

Retainedearnings

Treasury shares

Total shareholders’equity1,800,000

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

15,305,305

1,800,000

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

15,305,305

Changes of items during period
Dividends of surplus
Change in scope of equity
methodProfit attributable to ownersof parent(179,941)(179,941)――

1,246,576

1,246,576

Purchase of treasury shares
Disposal of treasury shares
Change in ownership interestof parent due to transactions
with non-controllinginterests
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period

139,530(9)(9)

94,935

234,465

364,831364,831―504,361

1,066,635

94,925

1,665,922

1,800,000

525,490

15,226,332(580,595)

16,971,228

Accumulated other comprehensive income

Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

Valuationdifference on
available-forsale securities

Deferred
gains or losses
on hedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets224,038(613,649)

1,906,276

833,786

2,350,452

19,005,182

36,660,940

224,038(613,649)

1,906,276

833,786

2,350,452

19,005,182

36,660,940

Changes of items during period
Dividends of surplus(179,941)

Change in scope of equity
methodProfit attributable to ownersof parent―
1,246,576

Purchase of treasury shares(9)

Disposal of treasury shares

234,465

Change in ownership interestof parent due to transactions
with non-controllinginterests
Net changes of items otherthan shareholders’ equity

364,831217,622

31,651―(498,019)(248,745)

661,879

413,134

Total changes of items during
period217,622

31,651―(498,019)(248,745)

661,879

2,079,056

Balance at end of current period

441,660(581,997)

1,906,276

335,767

2,101,706

19,667,062

38,739,997

12

(4) Consolidated Statements of Cash Flows(Thousand yen)
For the fiscal year
ended March 31, 2020
Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Impairment loss
Gain on bargain purchase
Loss (gain) on step acquisitions
Loss (gain) on sales of investment securities
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
Gain on forgiveness of debts
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
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Other
Net cash provided by (used in) investing activities

13

For the fiscal year
ended March 31, 2021

3,760,294
11,165,946
1,449,012―――
92,424(208,459)

2,420,080
12,763,733
1,528,856(582,552)
455,097
62,57810,800(128,687)(1,044,130)(1,058,635)

2,140,746(95,809)(191,973)(20,314)―(344,728)

1,923,239(427,004)(101,730)(91,129)(206,830)(517,241)―(19,271)(596)

18,804

293,880(431,546)

18,56956,802(216,470)(27,239)1,624(85,596)

181,352(631,155)
264,170
16,887,656
453,891(2,221,544)(643,009)
14,476,993

259,207(88,913)(752,771)
14,706,775
932,509(1,973,899)(520,761)
13,144,624(21,475,386)
3,206,564(91,724)
248,040(132,854)(49,943,396)
6,670,299(88,100)
91,724(22,992)

15,721

112,035(1,165,743)
1,105,957(205)
58,731―

2,526,394(79,731)(18,369,155)

25,820(40,569,686)

(Thousand yen)
For the fiscal year
ended March 31, 2020
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
Redemption of bonds
Cash dividends paid
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Dividends paid to non-controlling interests
Purchase of treasury shares
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

14

For the fiscal year
ended March 31, 2021

(236,195)
30,794,188(21,639,355)(1,095,500)(179,108)

300,364
56,858,890(23,466,077)(948,000)(179,376)―(348,192)(245,080)―(210,948)
7,460
7,195,459(26,496)
3,276,801
16,223,675
19,500,477(347,508)(9)(2,309,750)(85,828)
29,474,511(520,759)
1,528,690
19,500,477
21,029,167

(5) Notes to the Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.
(Changes in Accounting Policies)
From the fiscal year under review, the Company will change its accounting treatment in the case of shares
held indirectly through closely related entities, as stipulated by Paragraph 14 of “ Practical Guidelines on
Accounting Standards for Capital Consolidation Procedures for Indirectly Held Shares” (Accounting PracticeCommittee Statement No. 7 (Supplemental), final amendment: November 28, 2014), with a view to conducting
more rational accounting treatment and in accordance with changes to the Company’s accounting system.
Under previous accounting treatment, the parent company’s equity within the profit and comprehensive incomeof the Company’s consolidated subsidiaries held by the Company’s equity method affiliates, stated in Consolidated
Statements of Income and Comprehensive Income, was recorded as profit attributable to non-controlling interestsand comprehensive income attributable to non-controlling interests. At the same time, this was duplicated andrecorded as equity in earnings losses of affiliates and share of other comprehensive income of entities accounted
for using equity method. However, under this change in the method of accounting treatment, this duplicatedamount has been offset, then recorded. Similarly, with the Consolidated Balance Sheets as well, investment
securities and liabilities from application of equity method, as well as the non-controlling interests that had
previously been duplicated then posted, have through this accounting treatment change been offset and reported.
These changes to accounting policies are retroactively applied, and the retroactive application covers thebalance sheet amounts for the previous fiscal year. As a result, for the previous fiscal year ordinary income, profit
before income taxes, profit, and profit attributable to non-controlling interests declined by ¥445,187 thousand, andcomprehensive income and comprehensive income attributable to non-controlling interests declined by ¥410,863
thousand. There was no impact on profit attributable to owners of parent, comprehensive income attributable toowners of parent and basic earnings per share.
Furthermore, the Consolidated Balance Sheets of the previous fiscal year is also stated as having been
retroactively applied. As a result, on the Consolidated Balance Sheets of the previous fiscal year, investment
securities and the amount of total assets declined by ¥5,193, 852 thousand, liabilities from application of equity
method declined by ¥550,752 thousand, and non-controlling interests and the amount of net assets declined by¥4,643,099 thousand. There was no impact on retained earnings, accumulated other comprehensive income andbasic earnings per share.
Moreover, the Consolidated Statements of Changes in Net Assets of the previous year is also stated as having
been retroactively applied. As a result, by reflecting the cumulative effects, the balances at beginning of current
period of non-controlling interests and total net assets of the Consolidated Statements of Changes in Net Assets ofthe previous fiscal year each declined by ¥4,232,235 thousand, while for net changes of items other thanshareholders’ equity and total changes of items during period, there was a decline of ¥410,863 thousand,respectively, and the balances at end of current period of non-controlling interests and total net assets declined by¥4,643,099 thousand, respectively. There was no impact on shareholder’s equity and accumulated othercomprehensive income.
(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.
15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 stated in “Significant
Matters for Basis of Preparation of Consolidated Financial Statements.” As stated on page 15 in “Changes in
Accounting Policies,” the Company has changed its accounting policies in the current fiscal year. Thesechanges in accounting policies have been retroactively applied, and segment assets and segment liabilities
for the previous fiscal year state respective amounts after the retroactive application.
3. Information on net sales, profit (loss), assets, liabilities and other items by reportable segment
For the fiscal year ended March 31, 2020

(Thousand yen)International
shipping
business
Net sales
Net sales to outside customers
Inter-segment net sales ortransfers
Total
Segment profit
Segment assets
Segment liabilities
Other items
Depreciation and amortization
Increase in property, plant andequipment and intangible fixed
assets(Note)

Reportable segment
Real estate
Hotel-related
leasingbusinessbusiness

Adjustment

Total

31,451,261

11,918,970

511,052

43,881,284―

43,881,284

―

―

―

―

―

―

31,451,261
3,872,476
144,098,226
116,951,355

11,918,970
1,266,543
19,350,053
14,216,391

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

43,881,284
5,444,852
170,593,971
133,933,030

―
―
―
―

43,881,284
5,444,852
170,593,971
133,933,030

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.

For the fiscal year ended March 31, 2021

(Thousand yen)International
shipping
business
Net sales
Net sales to outside customers
Inter-segment net sales ortransfers
Total
Segment profit (loss)
Segment assets
Segment liabilities
Other items
Depreciation and amortization
Increase in property, plant andequipment and intangible fixed
assets(Note)

Total

Reportable segment
Real estate
Hotel-related
leasingbusinessbusiness

Adjustment

Total

Total

34,506,059

5,141,387

505,639

40,153,086―

40,153,086

―

―

―

―

―

―

34,506,059
3,540,611
178,890,629
148,437,582

5,141,387(1,753,111)
18,741,417
15,735,107

505,639
294,310
7,467,663
2,187,022

40,153,086
2,081,810
205,099,710
166,359,712

―
―
―
―

40,153,086
2,081,810
205,099,710
166,359,712

11,902,547

768,003

93,182

12,763,733―

12,763,733

56,259,826

594,528

46,40456,900,760―

56,900,760

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

16

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[Information concerning impairment loss on noncurrent assets by reportable segment]
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―

Corporate andelimination

Total
―

For the fiscal year ended March 31, 2021
International
shipping businessImpairment loss

1,528,856

Reportable segment
Hotel-related
business―

1,449,012(Thousand yen)
Real estate leasing
business―

Corporate andelimination

Total
―

1,528,856[Information on gain on bargain purchase by reportable segment]
For the fiscal year ended March 31, 2020
There is no relevant information.
For the fiscal year ended March 31, 2021
A gain on bargain purchase has been recorded in the “international shipping business” segment due to theinclusion within the scope of consolidation of TRINITY BULK, S.A., which had been an equity method
affiliate, owing to the acquisition of additional stock. Furthermore, the amounts of gain on bargain purchaserecorded due to this event was ¥582,552 thousand.

17

(Per Share Information)
For the fiscal year
ended March 31, 2020
Net assets per share

For the fiscal year
ended March 31, 2021

¥539.33¥569.20

Basic earnings per share¥52.53¥37.95(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, 2020
ended March 31, 2021
Basic earnings per share
Profit attributable to owners of parent
1,719,805
1,246,576(Thousand yen)Amount not attributable to commonshareholders (Thousand yen)
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)――

1,719,805

1,246,576

32,73632,847

3. The basis for the calculation of net assets per share is as follows. As stated on page 15 in “Changes in
Accounting Policies,” the Company has changed its accounting policies from the current fiscal year. With
the application of these changes in accounting policies, total net assets and non-controlling interests for theprevious fiscal year are presented in amounts after the retroactive application.
For the fiscal year
For the fiscal year
ended March 31, 2020
ended March 31, 2021
Total net assets (Thousand yen)

36,660,940

38,739,997

Deductible amount from total net assets(Thousand yen)

19,005,182

19,667,062[Non-controlling interests (Thousand yen)][19,005,182][19,667,062]

17,655,758

19,072,935

32,73633,508

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 subsidiaries (based in The
Netherlands, 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 ¥30 million under extraordinary income in the following
consolidated fiscal year, and projects an impact of approximately ¥10 million in profit attributable to owners ofparent.

18