Consolidated Financial Results
for the Fiscal Year Ended March 31, 2019
[Japanese GAAP]May 9, 2019
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 27, 2019
Scheduled date of commencing dividend payments: June 28, 2019
Scheduled date of filing annual securities report: June 27, 2019
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, 2019 (April 1, 2018 to March 31, 2019)(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, 2019
42,6042.0
4,927 (11.9)
4,378
(2.5)
2,049
13.2
March 31, 2018
41,768
11.7
5,591
(4.7)
4,491
(1.3)
1,810
56.2
(Note) Comprehensive income: Fiscal year ended March 31, 2019: ¥3,502 million [0.1%]
Fiscal year ended March 31, 2018: ¥3,498 million [99.8%]
Operating
Basic earnings
Diluted earnings
Ordinary income
Return on equity
income to net
per shareper share
to total assets
sales
Fiscal year ended
Yen
Yen
%
%
%
March 31, 2019
62.61
–
12.8
2.7
11.6
March 31, 2018
55.29
–
12.4
3.0
13.4
(Reference) Equity in earnings (losses) of affiliates: Fiscal year ended March 31, 2019: ¥690 million
Fiscal year ended March 31, 2018: ¥672 million(2) Consolidated Financial Position
Total assets

Net assets

Million yen

As of March 31, 2019
166,629
As of March 31, 2018
153,511(Reference) Equity: As of March 31, 2019: ¥16,855 million
As of March 31, 2018: ¥15,265 million

Equity ratio

Net assets per share

Million yen%

Yen

39,08936,20310.1
9.9

514.87466.32(3) Consolidated Cash Flows
Cash flows fromoperating activities

Fiscal year ended
March 31, 2019
March 31, 2018

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Million yen

Million yen

Million yen

Million yen

13,975
14,441(25,894)(16,591)

9,653
6,677

16,22318,743

2. Dividends
Annual dividends
1st
2nd
3rd
Year-endquarter-end quarter-end quarter-end
Fiscal year ended
March 31, 2018
March 31, 2019
Fiscal year ending
March 31, 2020
(Forecast)

Total

Total
dividends

Payoutratio(consolidated)

Dividends
to netassets(consolidated)

Yen

Yen

Yen

Yen

Yen Million yen

%

%

–
–

–
–

–
–

5.00
5.00

5.00
5.00

9.0
8.0

1.1
1.0

–

–

–

–

–

179
179

–

(Note) Dividend forecast for fiscal year ending March 31, 2020 is not available at this point.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2020 (April 1, 2019 to March
31, 2020)(% indicates changes from the previous corresponding period.)
Profit attributable to
Basic earnings
Net sales
Operating income
Ordinary income
owners of parent
per shareFirst half
Full year

Million yen%

Million yen%

21,00043,400

4.5
1.9

2,000
4,500

3.6
(8.7)

Million yen%

Million yen%

Yen

1,500 (29.2)
3,100 (29.2)

500
1,400

(47.4)(31.7)

15.27
42.77

* 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, 2019: 36,000,000 shares
March 31, 2018: 36,000,000 shares2) Total number of treasury shares at the end of the period:
March 31, 2019: 3,263,245 shares
March 31, 2018: 3,263,245 shares
3) Average number of shares during the period:
Fiscal Year ended March 31, 2019: 32,736,755 sharesFiscal Year ended March 31, 2018: 32,736,755 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2019 (April 1, 2018 to March 31,
2019)(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, 2019
10,969
8.2
671
3.9
1,014
58.7
689
57.4
March 31, 201810,136
24.6
646
28.3
639 (17.6)
437 (16.2)
Basic earnings per share
Fiscal year ended
March 31, 2019
March 31, 2018
(2) Non-consolidated Financial Position
Total assets
Million yen

Diluted earnings per share
Yen

Yen

19.15
12.17

–
–

Net assets
Million yen

22,285
As of March 31, 201922,763As of March 31, 2018
(Reference) Equity: As of March 31, 2019: ¥6,515 million
As of March 31, 2018: ¥6,087 million

6,515
6,087

Equity ratio

Net assets per share
%

Yen

29.2
26.7

181.04169.14* 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 4 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 ........................................................................................................................................... 4
2. Basic Stance Concerning Choice of Accounting Standards ........................................................................... 4
3. Consolidated Financial Statements and Primary Notes .................................................................................. 5(1) Consolidated Balance Sheets ..................................................................................................................... 5(2) Consolidated Statements of Income and Comprehensive Income ............................................................. 7(3) Consolidated Statements of Changes in Net Assets ................................................................................... 9(4) Consolidated Statements of Cash Flows .................................................................................................. 11(5) Notes to the Consolidated Financial Statements ...................................................................................... 13(Notes on Going Concern Assumption) .............................................................................................. 13(Additional Information) ..................................................................................................................... 13(Segment Information) ........................................................................................................................ 13(Per Share Information) ....................................................................................................................... 15(Significant Subsequent Events) ......................................................................................................... 15

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, uncertainty increased in the global economy as trade friction between
the U.S. and China intensified in the second half of the year, but expansion continued in developed countries
centered on the U.S., and the global economic growth rate was around 3.7%.
The U.S. economy continued at a growth rate of around 3%, as personal consumption and capital
investment remained firm, supported by increased government spending and tax cuts. The European economy
is seeing continued moderate expansion, exceeding its potential growth rate. The Chinese economy continues tobe sluggish due in part to a slowdown in capital investment resulting from the impact of debt reduction.
The Japanese economy remained firm due to continued recovery in the global economy centered on the U.S.,
a continued favorable employment environment, and steady personal consumption despite downward pressure
from factors such as earthquakes, heavy rainfall, and other natural disasters.
In the fiscal year under review, the foreign exchange rate began at a level below ¥110, but subsequently
trended toward yen depreciation, and was generally in the range of ¥110 to ¥113 to the U.S. dollar. While theU.S. economy remained favorable and the Federal Reserve Board (FRB) increasing interest rates caused the
U.S. dollar to rise, the stabilization of long-term interest rates in the U.S. helped to control the dollar’sappreciation.
<International shipping business>
VLCC (Very Large Crude Carrier) market at the beginning of the year remained weak, continuing from theprevious year, and fell to a record low by around May, but rapid recovery was seen in the winter as seasonal
demand increased in addition to progress being made in the scrapping of old vessels in the first half of the year.
Product tanker market was still in a state of oversupply, but they are expected to gradually rise on the back ofincreased demand from developing countries, etc., for petroleum products.
In the bulk carrier market, the situation varied depending on the size. Large vessels recovered rapidly frombelow the mark of US$10,000 at the beginning of the year to well above US$20,000 in summer, but remained
below US$10,000 from February 2019. On the other hand, for small and medium-sized vessels, a stable rise
was seen compared to large vessels due to an improvement of the supply and demand environment.
Car carrier market, although steady demand remained for transportation to the U.S., Europe and Asia at thesame level as the previous fiscal year, except for a temporary decline in April, stayed at a low level overall dueto the imbalance in supply and demand.
In the container ship market, while strong global shipments was seen and the overall situation remained
generally stable, concern has increased in regard to the continued delivery of large vessels into the market
impacting the future of supply and demand for vessels and the slowdown of cargo transportation due to theimpact of economic friction between the U.S. and China.
Under these conditions, net sales in the international shipping business for the fiscal year under review were¥29,932 million (an increase of 4.0% 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 three vessels,
comprised of one tanker, one container ship, and one car carrier in the fiscal year under review. However,segment profit in the international shipping business was ¥3,341 million (a decrease of 13.8% year on year) due
to an increase in docking expenses, etc.
<Hotel-related business>
In the hotel-related business, firm performance was recorded in the accommodation division, but some
hotels were affected by the Hokkaido Eastern Iburi Earthquake that occurred in September 2018, andperformance slightly fell below that of the previous year. Net sales in the hotel-related business were ¥12,144
million (a decrease of 2.6% year on year), and segment profit in the hotel-related business was ¥1,315 million2

(a decrease of 5.3% year on year).
<Real estate leasing business>
Net sales in the real estate leasing business were ¥527 million (a decrease of 0.8% year on year), remaining
at the level of the previous year, and segment profit in the real estate leasing business was ¥270 million (adecrease of 17.4% year on year) due to an increase in repair expenses for the Company’s buildings.
As a result, for the fiscal year under review, net sales were ¥42,604 million (an increase of 2.0% year onyear), operating income was ¥4,927 million (a decrease of 11.9% year on year), ordinary income was ¥4,378
million (a decrease of 2.5% year on year) in part due to recording ¥416 million of foreign exchange losses, andprofit attributable to owners of parent amounted to ¥2,049 million (an increase of 13.2% 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 ¥13,117 million from the end of previous fiscal
year to ¥166,629 million. This is mainly attributable to an increase in vessels due to the launch of newly-built ships
and an increase in investment securities.
Liabilities increased by ¥10,231 million from end of previous fiscal year to ¥127,540 million. This is mainly
attributable to an increase in loans payable due to the purchase of vessels. Furthermore, net assets increased by¥2,885 million from the end of previous fiscal year to ¥39,089 million. This is mainly attributable to increases inretained earnings and non-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 decreased by ¥2,519 million from theend of previous fiscal year to ¥16,223 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 decreased by ¥465 million
from the previous fiscal year to ¥13,975 million. This is mainly attributable to ¥4,434 million of profit before
income taxes which was adjusted with ¥10,515 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 ¥9,302 million
from the previous fiscal year to ¥25,894 million. This is mainly attributable to the payment of ¥22,802 million of
expenses for new shipbuilding.
(Cash flows from financing activities)
Net cash provided by financing activities as of the end of the fiscal year under review increased by ¥2,976
million from the previous fiscal year to ¥9,653 million. This is mainly attributable to the difference of ¥14,055
million between the sum of proceeds from long-term loans payable and proceeds from issuance of bonds of¥31,829 million, and repayments of long-term loans payable and redemption of bonds of ¥17,773 million.

3(4) Future Outlook
Looking ahead to the future global economy, it is expected to continue to grow at a moderate pace, while
continued vigilance is required concerning downward risks for both developed and emerging countries. The U.S.
economy is expected to continue expanding with growing personal consumption backed by improvement in
employment and wages, but uncertainty remains in regard to situations such as the possibility of prolonged trade
friction between the U.S. and China and slowdown accompanying the expiration of fiscal stimulus measures. The
European economy is expected to continue to grow steadily through recovery in exports, but still vigilance isrequired in regard to the risk of political turmoil such as to trends in negotiations on the UK’s exit from theEuropean Union. The Chinese economy is likely to see a downward trend in exports due to the strengthening of
U.S. sanctions, and the growth rate is expected to continue to decline due to the impact of trade friction. The
Japanese economy is expected to see a continued trend of firm performance and expansion of personal
consumption due to improvements in employment, despite concern over the impact of the consumption tax
increasing. Due to the concern over the yen’s rapid appreciation trend triggered by the increased risk of slowdown
in the global economy and external factors, careful attention continues to be required.
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 operation of vessels delivered in the fiscal year under review
will increase and one new vessel will begin operating in the next fiscal year, net sales are expected to be ¥30,500
million and segment profit in the business is expected to be ¥2,800 million due in part to estimates calling for astronger yen for the average foreign exchange rate in addition to an increase in docking expenses compared to thecurrent 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, net sales and segment profit in the business are expected to be ¥12,400 million and¥1,400 million, respectively, unchanged from the fiscal year under review. In order to secure the employment of
personnel, the Company will actively accept foreign employees and continue to provide a better working
environment by giving thought to reforms in working styles.
In the real estate leasing business, the Company will 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 ¥43,400 million (an increaseof 1.9% compared with the current fiscal year), consolidated operating income of ¥4,500 million (a decrease of
8.7% compared with the current fiscal year), consolidated ordinary income of ¥3,100 million (a decrease of 29.2%
compared with the current fiscal year), and profit attributable to owners of parent of ¥1,400 million (a decrease of
31.7% compared with the current fiscal year). Furthermore, the Company projects the foreign exchange rate fornext year to shift toward ¥105 to the U.S. dollar.

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.

4

3. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(Thousand yen)
As of March 31, 2018
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

5

As of March 31, 201918,769,596
838,358
28,253746,169
2,426,713
22,809,090

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

93,521,014
12,501,130
8,430,474
2,198,625
576,809117,228,055

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

87,52887,52885,74485,744

10,513,094
833,220
1,006,323
1,034,348
13,386,986
130,702,570
153,511,660

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

(Thousand yen)
As of March 31, 2018
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

6

As of March 31, 2019

1,451,677
1,172,000
28,278,036
2,275,872
905,757
385,254
45,3683,071,080
37,585,047

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

3,236,500
67,174,489
2,562,758
370,796
1,043,086

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

238,771
1,526,327
1,765,099
340,992
1,047,202
2,182,548
79,723,473
117,308,520

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

1,800,000
21,128
10,736,493(675,520)
11,882,102

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

625,473(321,616)
1,906,276
1,173,573
3,383,706
20,937,331
36,203,140
153,511,660

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

(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
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Other
Total extraordinary income
Extraordinary loss
Impairment loss
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, 2018
41,768,196
32,396,286
9,371,909
3,780,706
5,591,203

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

64,141
56,532―
672,412359,282
1,152,368

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

1,713,815
223,758
314,440
2,252,014
4,491,557

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

55,67055,67037,26037,2604,454,296
606,738(331,309)
275,428
4,178,868
2,368,712
1,810,155――
4,434,069
609,846(92,972)
516,874
3,917,194
1,867,591
2,049,603

7

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, 2018
4,178,868

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

20,956(61,297)(450,808)(136,524)
136,889(266,792)(189,477)(147,789)(680,626)
3,498,241(414,216)
3,502,977

1,531,394

1,769,406

1,966,846

1,733,570

8

(3) Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31, 2018
(Thousand yen)
Shareholders’ equity
Capital stock Capital surplus
Balance at beginning of current
period1,800,000

21,128Retainedearnings

Treasury shares
ሺ675,520)

9,106,279

Total shareholders’equity10,251,887

Changes of items during period
Dividends of surplus
Profit 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)

1,810,155

1,810,155――

1,630,214―

1,630,214

1,800,000

21,128

10,736,493(675,520)

11,882,102

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
assets595,362(315,500)

1,906,276

1,476,328

3,662,467

19,071,564

32,985,919

Changes of items during period
Dividends of surplus
Profit attributable to ownersof parent
Net changes of items otherthan shareholders’ equity(179,941)
1,810,155
30,110

ሺ6,115)―(302,755)(278,760)

1,865,766

1,587,005

Total changes of items during
period30,110

ሺ6,115)―(302,755)(278,760)

1,865,766

3,217,220

Balance at end of current period

625,473

ሺ321,616)

1,906,276

1,173,573

3,383,706

20,937,331

36,203,140

9

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
ሺ675,520)

10,736,493

Total shareholders’equity11,882,102

Changes of items during period
Dividends of surplus
Profit 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

ሺ321,616)

1,906,276

1,173,573

3,383,706

20,937,331

36,203,140

Changes of items during periodሺ179,941)

Dividends of surplus
Profit attributable to ownersof parent
Net changes of items otherthan shareholders’ equity

2,049,603(112,333)

ሺ8,280)―(159,582)(280,196)

1,296,490

1,016,294

Total changes of items during
period(112,333)

ሺ8,280)―ሺ159,582)

ሺ280,196)

1,296,490

2,885,956

Balance at end of current period

513,140

ሺ329,896)

1,906,276

1,013,991

3,103,510

22,233,821

39,089,096

10

(4) Consolidated Statements of Cash Flows(Thousand yen)
For the fiscal year
ended March 31, 2018
Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Impairment loss
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

11

For the fiscal year
ended March 31, 2019

4,454,296
9,786,768
37,260(120,673)

4,434,069
10,515,360―(191,722)

109,886

18,135

1,713,815
264,542(46,227)(55,839)(672,412)

1,901,672(390,637)(40,212)(41,134)(690,368)(32,369)(3,277)33,982

11,709545,337

487,456(60,793)
2,335

139,160
26,975(42,193)(4,459)329,111(94,545)483,212
16,635,494
207,807(1,798,143)(603,938)
14,441,220

92,729(391,868)
540,612
16,414,199
167,583(1,964,928)(641,578)
13,975,276(24,020,715)
7,615,437(26,000)
41,000(905)(22,802,255)
1,761(248,040)
26,000(3,074,837)

21,93019,992(222,838)―
623(16,591,467)(120,000)
333,060(30,102)(25,894,421)

(Thousand yen)
For the fiscal year
ended March 31, 2018
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

3,261,105
23,506,367(18,219,092)
682,448(1,200,000)(180,238)(749,080)(449,282)
25,078
6,677,306(236,400)
4,290,658
14,452,937
18,743,596

12

For the fiscal year
ended March 31, 2019(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

(5) Notes to the Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.

(Additional Information)
Partial Amendments to Accounting Standard for Tax Effect Accounting, etc. (Accounting Standards Board ofJapan Statement No. 28; February 16, 2018) have been applied from the beginning of the fiscal year underreview. Accordingly, deferred tax assets are presented under investments and other assets, and deferred tax
liabilities are presented under noncurrent liabilities.
(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.

13

3. Information on net sales, profit (loss), assets, liabilities and other items by reportable segment
For the fiscal year ended March 31, 2018
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

Total

28,770,348—
28,770,348
3,874,258
126,978,443
99,309,272

12,466,322—
12,466,322
1,389,661
19,328,168
15,188,971

531,524—
531,524
327,282
7,205,048
2,810,276

41,768,196—
41,768,196
5,591,203
153,511,660
117,308,520

—
—
—
—
—
—

41,768,196—
41,768,196
5,591,203
153,511,660
117,308,520

8,843,670

842,876

100,221

9,786,768—

9,786,768

25,573,930

332,011

125,309

26,031,251—

26,031,251

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

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)

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

Total

Adjustment

Total

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.

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.

14

[Information concerning impairment loss on noncurrent assets by reportable segment]
For the fiscal year ended March 31, 2018
International
shipping businessImpairment loss

37,260

Reportable segment
Hotel-related
business—

Real estate leasing
business—(Thousand yen)

Corporate andelimination

Total
—

37,260For the fiscal year ended March 31, 2019
Impairment loss did not occur.
(Per Share Information)
For the fiscal year
ended March 31, 2018

For the fiscal year
ended March 31, 2019

Net assets per share¥466.32¥514.87
Basic earnings per share¥55.29¥62.61(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, 2018
ended March 31, 2019
Basic earnings per share
Profit attributable to owners of parent
1,810,155
2,049,603(Thousand yen)Amount not attributable to commonshareholders (Thousand yen)——

1,810,155

2,049,603

32,73632,736

3. The basis for the calculation of net assets per share is as follows.
For the fiscal year
ended March 31, 2018

For the fiscal year
ended March 31, 2019

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)

Total net assets (Thousand yen)

36,203,140

39,089,096

Deductible amount from total net assets(Thousand yen)

20,937,331

22,233,821[Non-controlling interests (Thousand yen)][20,937,331][22,233,821]

15,265,809

16,855,275

32,73632,736

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)
There is no relevant information.

15