Consolidated Financial Results
for the Fiscal Year Ended March 31, 2018
[Japanese GAAP]May 15, 2018
Company name: Meiji Shipping Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 9115
URL: http://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 28, 2018
Scheduled date of commencing dividend payments: June 29, 2018
Scheduled date of filing annual securities report: June 28, 2018
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, 2018 (April 1, 2017 to March 31, 2018)(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, 2018
41,768
11.7
5,591
(4.7)
4,491
(1.3)
1,810
56.2
March 31, 2017
37,404
5.5
5,865
32.1
4,551
7.4
1,159
9.0
(Note) Comprehensive income: Fiscal year ended March 31, 2018: ¥3,498 million [99.8%]
Fiscal year ended March 31, 2017: ¥1,751 million [(44.0) %]Operating
Basic earnings
Diluted earnings
Ordinary income
income to net
Return on equity
per shareper share
to total assets
sales
Fiscal year ended
Yen
Yen
%
%
%
March 31, 2018
55.29
–
12.4
3.0
13.4
March 31, 2017
35.35
–
8.6
3.2
15.7
(Reference) Equity in earnings (losses) of affiliates: Fiscal year ended March 31, 2018: ¥672 million
Fiscal year ended March 31, 2017: ¥351 million(2) Consolidated Financial Position
Total assets

Net assets

Million yen

As of March 31, 2018
153,511
As of March 31, 2017
141,413(Reference) Equity: As of March 31, 2018: ¥15,265 million
As of March 31, 2017: ¥13,914 million

Equity ratio

Net assets per share

Million yen%

Yen

36,20332,9859.9
9.8

466.32425.04(3) Consolidated Cash Flows
Cash flows fromoperating activities

Fiscal year ended
March 31, 2018
March 31, 2017

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Million yen

Million yen

Million yen

Million yen

14,441
12,098(16,591)(2,000)6,677(8,904)

18,743
14,452

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, 2017
–
–
–
5.00
5.00
179
March 31, 2018
–
–
–
5.00
5.00
179
Fiscal year ending
March 31, 2019
–
–
–
–
–
(Forecast)(Note) Dividend forecast for fiscal year ending March 31, 2019 is not available at this point.

Dividends
to netassets(consolidated)

%

%

14.1
9.0

1.2
1.1

–

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2019 (April 1, 2018 to March
31, 2019)(% indicates changes from the previous corresponding period.)
Profit attributable to
Basic earnings
Net sales
Operating income
Ordinary income
owners of parent
per share
Million yen

First half
Full year%

19,500 (0.3)
41,600 (0.4)

Million yen%

Million yen

1,600 (33.6)
4,100 (26.7)%

Million yen%

Yen

700 (63.8)
2,500 (44.3)

200
1,200

(68.8)(33.7)

6.11
36.66* 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, 2018: 36,000,000 shares
March 31, 2017: 36,000,000 shares2) Total number of treasury shares at the end of the period:
March 31, 2018: 3,263,245 shares
March 31, 2017: 3,263,245 shares
3) Average number of shares during the period:
Fiscal Year ended March 31, 2018: 32,736,755 sharesFiscal Year ended March 31, 2017: 32,788,884 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2018 (April 1, 2017 to March 31,
2018)(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, 201810,136
24.6
646
28.3
639 (17.6)
437 (16.2)
March 31, 2017
8,132
0.3
503
24.2
775
28.7
522
27.5
Basic earnings per share
Fiscal year ended
March 31, 2018
March 31, 2017
(2) Non-consolidated Financial Position
Total assets
Million yen

Diluted earnings per share
Yen

Yen

12.17
14.51

–
–

Net assets
Million yen

22,763As of March 31, 201823,188
As of March 31, 2017
(Reference) Equity: As of March 31, 2018: ¥6,087 million
As of March 31, 2017: ¥5,781 million

6,087
5,781

Equity ratio

Net assets per share
%

Yen

26.7
24.9

169.14160.65* 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 3 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(5) Dividend Policy and Payments for This Period and Next Period ....................................................................... 5
2. Basic Stance Concerning Choice of Accounting Standards ........................................................................... 5
3. Consolidated Financial Statements and Primary Notes .................................................................................. 6(1) Consolidated Balance Sheets ..................................................................................................................... 6(2) Consolidated Statements of Income and Comprehensive Income ............................................................. 8(3) Consolidated Statements of Changes in Net Assets ................................................................................. 10(4) Consolidated Statements of Cash Flows .................................................................................................. 12(5) Notes to the Consolidated Financial Statements ...................................................................................... 14(Notes on Going Concern Assumption) .............................................................................................. 14(Segment Information) ........................................................................................................................ 14(Per Share Information) ....................................................................................................................... 16(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 recovery of the global economy gained strength led by developed
nations, recording a 3.7% worldwide economic growth rate, while significant political events took place suchas general elections in major European countries and the National Congress of the Communist Party of China.
However, uncertain factors remained, including the tensioning situation in North Korea and geopolitical risk in
the Middle East. In addition, economies in resource-exporting countries also improved with increased andstable prices in resources amid a global economy led by developed nations.
Meanwhile, looking at the Japanese economy, the real economic growth rate was 1.5%, which was higher
than the rate in the previous year owing to the recovery in the global economy and heightened growth inexports. Although the Nikkei Stock Average significantly rose toward the end of 2017 and improvements wereseen in the employment and income environment, namely a rise in the unemployment rate, the lower stock
price in a global scale at the beginning of 2018 caused a move toward risk aversion, resulting in yen’s
appreciation and shift to adjustment phase in domestic stock market.
<International shipping business>
Under these circumstances, the foreign exchange rate remained in the ¥110 range in 2017 in general, but
trended toward yen appreciation at the beginning of 2018, which progressed to the ¥104 range in March. In
addition, bunker prices fell below US$300.00 per metric ton before increasing to US$380.00 by the end of theyear in line with the increase in crude oil prices.
In the large tanker market, the charter hire rate began low at around US$28,000. Although import volume by
China and transport distance grew as expected, an increase in shipping capacity outweighed positive factors indemand, and the charter hire rate remained at low levels of around US$27,000 despite the anticipation forhigher rates going forward. Meanwhile, a total of 20 old vessels were scrapped during the first three months of
2018, which is already far more than the number of vessels scrapped in 2017, providing a prospect toward
positive effects on the recovery of the market.
In the bulk carrier market, the situation improved significantly from the previous year, when the lowest
historic levels were recognized, contrarily recording the highest rate since 2014 for all types of bulk carriers,
including the mark of US$30,000 for charter hire rates for a capesize carrier during the demand season between
October and December. Although the market situation continued to be relatively strong even after entering
2018 and there is a sense of prospect for the future, the market is expected to continue to be volatile.
In the car carrier market, cargo volume increased slightly and shipping capacity also grew to a moderate
degree. While tall and heavy freight, plants, and trains, etc., to resource-exporting countries such as those in the
Middle East and Africa remained sluggish, finished car transportation to the U.S. and Europe was favorable.
The short-time charter market, which appeared to have been oversupplied, is on a recovery trend in line with adecrease in completion of new shipbuilding.
Under these conditions, net sales in the international shipping business for the fiscal year under review were¥28,770 million (an increase of 19.6% year on year). This is mainly attributable to the new operation of fivevessels, comprised of one container ship, two tankers and two car carriers. However, segment profit in theinternational shipping business was ¥3,874 million (a decrease of 4.2% year on year) in part due to an increasein docking expenses. In addition, the Company reported ¥37 million of impairment loss in extraordinary losses
from the sale of one vessel owned by the Company’s subsidiary.
<Hotel-related business>
In the hotel-related business, each hotel recorded firm performance in the accommodation division. In thebanquet division, general banquets remained at the level of the previous fiscal year while wedding banquets
declined compared to the previous fiscal year. As a result, net sales in the hotel-related business were ¥12,466
2million (a decrease of 2.9% year on year), and segment profit in the hotel-related business was ¥1,389 million(a decrease of 8.0% year on year), reflecting increases in facility renewal investment and repairs, etc.
<Real estate leasing business>
Net sales in the real estate leasing business were ¥531 million (an increase of 2.2% year on year), andsegment profit in the real estate leasing business was ¥327 million (an increase of 5.1% year on year).
As a result, for the fiscal year under review, net sales were ¥41,768 million (an increase of 11.7% year onyear), operating income was ¥5,591 million (a decrease of 4.7% year on year), and ordinary income was ¥4,491
million (a decrease of 1.3% year on year). Furthermore, impairment loss of ¥37 million was recorded in
extraordinary losses, and profit attributable to owners of parent amounted to ¥1,810 million (an increase of
56.2% 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 ¥12,098 million from the end of previous fiscal
year to ¥153,511 million. This is mainly attributable to an increase in vessels due to the launch of newly-built ships
and an increase in cash and deposits.
Liabilities increased by ¥8,880 million from end of previous fiscal year to ¥117,308 million. This is mainly
attributable to an increase in loans payable due to the purchase of vessels. Furthermore, net assets increased by¥3,217 million from the end of previous fiscal year to ¥36,203 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 increased by ¥4,290 million from theend of previous fiscal year to ¥18,743 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 ¥2,342
million from the previous fiscal year to ¥14,441 million. This is mainly attributable to ¥4,454 million of profit
before income taxes which was adjusted with ¥9,786 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 ¥14,591 million
from the previous fiscal year to ¥16,591 million. This is mainly attributable to the payment of ¥24,020 million of
expenses for new shipbuilding, etc., and proceeds of ¥7,615 million from sales of vessels.
(Cash flows from financing activities)
Net cash provided by financing activities as of the end of the fiscal year under review was ¥6,677 million(¥8,904 million of cash outflow for the previous fiscal year). This is mainly attributable to the difference of ¥4,769
million between the sum of proceeds from long-term loans payable and the issuance of bonds of ¥24,188 million,
and repayments of long-term loans payable and redemption of bonds of ¥19,419 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 risk due to commitment to protectionist policies andheightened geopolitical tension, etc. The U.S. economy is expected to perform steadily with strengthened capital
investment and personal consumption backed by improvement in employment and wages, and the implementationof individual and corporate income tax reductions as well. However, there are concerns regarding continued
uncertainty over the feasibility of Trump administration’s policies. The European economy is expected to continue
to expand steadily with lowered risk of political turmoil relating to negotiations on the UK’s exit from theEuropean Union, while political and financial risks still remain. The Chinese economy is expected to slow
moderately as issues of real estate prices and excess debt still remain despite possible favorable effects of a robust
global economy on its exports.
The Japanese economy is expected to continue to grow, with the anticipated economic effects of the 2020 Tokyo
Olympic Games on the tourism industry, etc. Although the global economy is steadily growing in general, carefulattention is required due to the concern over rapid yen’s appreciation trend triggered by a sudden external factor.
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 launched in the fiscal year under review
will increase and two new vessels will begin operating in the next fiscal year, net sales are expected to be ¥28,600
million, unchanged from the fiscal year under review, owning to estimates calling for a stronger yen for the
average foreign exchange rate. Meanwhile, segment profit in the business is expected to be ¥2,500 million due
mainly to an increase in docking expenses compared to the current fiscal year, owing to a rise in the number ofvessels docked. From the next period onward, the Company plans to continue controlling budgets for shipping
expenses thoroughly, focusing on docking expenses as a countermeasure against yen appreciation, and endeavor toensure a stable profit structure based on time charter party over the medium-to long-term. Moreover, in April 2018,
the Company started operation of a training center for seafarers in the Philippines, which is one of the seafarer
recruitment and training bases of the Company. Going forward, for safe vessel operation, active initiatives will betaken to ensure the acquisition of high quality seafarers and the enhancement of their education.
In the hotel-related business, net sales and segment profit in the business are expected to be ¥12,500 million and¥1,350 million, respectively, unchanged from the fiscal year under review. While the situations in the wedding
banquet division is expected to remain at the level of the previous fiscal year, we will strive to further promotesales activities in the relatively robust accommodation division, with the aim to compensate for the banquet
division. In Addition, proactive recruitment activities will be implemented by assigning dedicated persons toactively hire personnel regardless of whether they are new graduates or mid-career job seekers.
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 ¥250 million.
As a result of the above, the Company expects full-year consolidated net sales of ¥41,600 million (a decrease of
0.4% compared with the current fiscal year), consolidated operating income of ¥4,100 million (a decrease of
26.7% compared with the current fiscal year), consolidated ordinary income of ¥2,500 million (a decrease of
44.3% compared with the current fiscal year), and profit attributable to owners of parent of ¥1,200 million (adecrease of 33.7% compared with the current fiscal year). Furthermore, the Company projects an average foreignexchange rate for next year of ¥105 per U.S. dollar.

4(5) Dividend Policy and Payments for This Period and Next Period
The Group’s basic policy is to pay a stable dividend that corresponds to business performance on an ongoingbasis while strengthening the management structure in order to enhance corporate value and withstand changes in
the management environment and shipping market conditions, and build appropriate internal reserves in
preparation for future business development.
Taking into consideration such factors as business performance for the fiscal year under review, the year-end
cash dividend for the fiscal year ended March 31, 2018 was ¥5.0 per share.
Furthermore, the year-end cash dividend for the fiscal year ending March 31, 2019 is not determined at thepresent time owing to the uncertainty of forecasts regarding the future business environment.

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.

5

3. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(Thousand yen)
As of March 31, 2017
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise and finished goods
Raw materials and supplies
Deferred tax assets
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

6

As of March 31, 2018

14,493,937
883,433
26,359750,397
59,0532,330,723
18,543,904

18,769,596
838,358
28,253746,169
56,012
2,426,713
22,865,102

83,973,213
12,964,810
8,407,970
4,178,752
646,863
110,171,611

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

106,410
106,41087,52887,5289,996,847
629,746
897,119
1,067,870
12,591,583
122,869,605
141,413,509

10,513,094
833,220
950,311
1,034,348
13,330,974
130,646,558
153,511,660

(Thousand yen)
As of March 31, 2017
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
Deferred tax liabilities
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

7

As of March 31, 2018

1,122,565
1,151,000
19,627,932
187,242
1,531,793
338,611
39,683―
2,946,699
26,945,528

1,451,677
1,172,000
28,278,036
2,275,872
905,757
385,254
45,368144
3,071,080
37,585,191

3,757,500
68,149,816
2,829,116
512,279
1,043,086

3,236,500
67,174,489
2,562,758
370,651
1,043,086

271,141
1,066,082
1,337,223
307,010
965,991
2,580,036
81,482,061
108,427,590

238,771
1,526,327
1,765,099
340,992
1,047,202
2,182,548
79,723,328
117,308,520

1,800,000
21,1289,106,279(675,520)
10,251,887

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

595,362(315,500)
1,906,276
1,476,328
3,662,467
19,071,564
32,985,919
141,413,509

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

(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
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 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, 2017
37,404,264
27,880,069
9,524,195
3,659,182
5,865,012

For the fiscal year
ended March 31, 2018
41,768,196
32,396,286
9,371,909
3,780,706
5,591,203

41,357
57,958351,401
278,047
728,764

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

1,580,078
56,279405,671
2,042,030
4,551,747

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

1,564,966
1,564,966
2,986,780
560,715
361,509922,224
2,064,556
905,395
1,159,160

37,26037,2604,454,296
606,738(331,309)
275,428
4,178,868
2,368,712
1,810,1558

Consolidated Statements of Comprehensive Income(Thousand yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
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, 2017
2,064,556

For the fiscal year
ended March 31, 2018
4,178,868

232,869
57,114
17,392(490,101)

20,956(61,297)―(450,808)(130,602)

9(189,477)(313,326)
1,751,229(680,626)
3,498,241

1,134,828

1,531,394

616,400

1,966,846

(3) Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31, 2017
(Thousand yen)
Shareholders’ equity
Capital stock Capital surplus
Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

1,800,000

21,128Retainedearnings

Treasury shares

8,055,392(587,044)

71,6661,800,000

21,128

8,127,059

Total shareholders’equity9,289,477
71,666(587,044)

9,361,144

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

Profit attributable to ownersof parent

1,159,160

1,159,160

Purchase of treasury shares
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period(88,476)(88,476)––

979,219(88,476)

890,743

1,800,000

21,1289,106,279(675,520)

10,251,887

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
assets387,617(432,063)

1,899,893

1,831,352

3,686,799

19,108,243

32,084,520––

71,666

3,686,799

19,108,243

32,156,187

387,617(432,063)

1,899,893

1,831,352

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

Profit attributable to ownersof parent

1,159,160

Purchase of treasury shares(88,476)

Net changes of items otherthan shareholders’ equity

207,745

116,563

6,383(355,023)(24,332)(36,679)(61,011)

Total changes of items during
period207,745

116,563

6,383(355,023)(24,332)(36,679)

829,732

Balance at end of current period

595,362(315,500)

1,906,276

1,476,328

3,662,467

19,071,564

32,985,919

10

For the fiscal year ended March 31, 2018
(Thousand yen)
Shareholders’ equity
Capital stock Capital surplus
Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

1,800,000

1,800,000

21,12821,128Retainedearnings

Treasury shares

Total shareholders’equity10,251,887―(675,520)

9,106,279(675,520)

10,251,887

9,106,279―

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

Profit attributable to ownersof parent

1,810,155

1,810,155

Purchase of treasury shares
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period

―

―

–

–

1,630,214―

1,630,214

1,800,000

21,128

10,736,493(675,520)

11,882,102

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

595,362595,362

Changes of items during period

Deferred
gains or losses
on hedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets(315,500)

1,906,276

1,476,328

3,662,467

19,071,564

32,985,919

―

―

―

(315,500)

1,906,276

3,662,467

19,071,564

32,985,919

1,476,328(179,941)

Dividends of surplus
Profit attributable to ownersof parent

1,810,155

Purchase of treasury shares―

Net changes of items otherthan shareholders’ equity

30,110Total changes of items during
period30,110

Balance at end of current period

625,473(6,115)―(302,755)(278,760)

1,865,766

1,587,005―

3,217,220

1,906,276(278,760)

1,865,766(321,616)(302,755)

20,937,331

36,203,140(6,115)11

1,173,573

3,383,706

(4) Consolidated Statements of Cash Flows(Thousand yen)
For the fiscal year
ended March 31, 2017
Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Impairment loss
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
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
Net decrease (increase) in short-term investment
securities
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

2,986,780
9,199,955
1,564,966(19,445)
5,085(99,316)
1,310
1,580,078
25,990(13,634)
162,817(351,401)(13,325)

4,454,296
9,786,768
37,260――(120,673)
109,886

1,713,815
264,542(46,227)(55,839)(672,412)(32,369)

37,40333,982419,999545,337(122,461)(36,962)(37,081)(60,793)
2,335(47,324)(411,235)(679,690)
14,152,509
255,624(1,677,777)(632,126)
12,098,229

329,111(94,545)483,212
16,635,494
207,807(1,798,143)(603,938)
14,441,220

5,715

―

(1,403,381)–(41,000)
341,000(195,801)(24,020,715)
7,615,437(26,000)
41,000(905)

188,942(560,694)
36,636(371,553)(2,000,136)

12

For the fiscal year
ended March 31, 2018

(42,193)

21,930(222,838)―
623(16,591,467)

(Thousand yen)
For the fiscal year
ended March 31, 2017
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
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(756,490)
6,535,267(13,994,363)
1,068,518(1,226,000)(179,122)(5,080)(22)(79,158)(267,735)(8,904,186)(38,535)
1,155,371
13,297,566
14,452,937

13

For the fiscal year
ended March 31, 2018
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

(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.

14

3. Information on net sales, profit (loss), assets, liabilities and other items by reportable segment
For the fiscal year ended March 31, 2017
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

24,048,776—
24,048,776
4,043,413
114,397,870
87,999,430

12,835,584—
12,835,584
1,510,097
19,981,750
15,525,245

519,904—
519,904
311,502
7,033,889
4,902,914

37,404,264—
37,404,264
5,865,012
141,413,509
108,427,590

—
—
—
—
—
—

37,404,264—
37,404,264
5,865,012
141,413,509
108,427,590

8,246,397

855,413

98,143

9,199,955—

9,199,955

3,848,937

523,858

17,292

4,390,087—

4,390,087

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

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)

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

Total

Adjustment

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.

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.

15

[Information concerning impairment loss on noncurrent assets by reportable segment]
For the fiscal year ended March 31, 2017
International
shipping businessImpairment loss

1,564,966

Reportable segment
Hotel-related
business—

Real estate leasing
business—(Thousand yen)

Corporate andelimination

Total
—

For the fiscal year ended March 31, 2018
International
shipping businessImpairment loss

37,260

Reportable segment
Hotel-related
business—

1,564,966(Thousand yen)
Real estate leasing
business—

Corporate andelimination

Total
—

37,260(Per Share Information)
For the fiscal year
ended March 31, 2017

For the fiscal year
ended March 31, 2018

Net assets per share¥425.04¥466.32
Basic earnings per share¥35.35¥55.29(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, 2017
ended March 31, 2018
Basic earnings per share
Profit attributable to owners of parent
1,159,160
1,810,155(Thousand yen)Amount not attributable to commonshareholders (Thousand yen)——

1,159,160

1,810,155

32,78832,736

3. The basis for the calculation of net assets per share is as follows.
For the fiscal year
ended March 31, 2017

For the fiscal year
ended March 31, 2018

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)

32,985,919

36,203,140

Deductible amount from total net assets(Thousand yen)

19,071,564

20,937,331[Non-controlling interests (Thousand yen)][19,071,564][20,937,331]

13,914,355

15,265,809

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)16

(Significant Subsequent Events)
There is no relevant information.

17