Financial Results for FY2023
April 30, 2024

1Index1.

FY2023 Full Year Results

P.3

2.

Liftings, Utilization Rates,

P.4

and Freight Index in Major Trades
3.

FY2024 Full Year Forecast

P.5

4.

ONE’s Response to Recent Changes in theP.6

Business Environment
5.

Initiatives for FY2023 4th Quarter

P.7

6.

Reference (Fleet Structure, Service Structure &P.8

New Order)
7.

Appendix: Change of Demand and Freight

P.9

index before/after COVID-19©2024 Ocean Network Express Pte. Ltd. All Rights Reserved

21. FY2023 Results
Outline
The short-term freight rate market continued to decline due to sluggish cargo movements and pressures from the supply side as new vesseldeliveries continued. However, freight rates rose due to geopolitical uncertainty surrounding the situation in the Middle East in 4Q. For the fullyear, net profit is US$ 974 million (YoY -US$ 14,024 million).
• While consumer spending remained strong in North America, lingering inflation was a drag in Europe, and cargo movements generally did not recoverin earnest.
• High tonnage supply continued due to the influx of new vessels. However, rerouting via the Cape of Good Hope (CoGH) as uncertainty surrounding thesituation in the Middle East continued, resulted in a reversal of the oversupply situation.
• As a result, market conditions continued to decline until the end of calendar year 2023, but short-term freight rates rose significantly in FY2023 4Q.

FY2023 results and PL analysis
FY2022 (Results)(Unit: Million US$)Year on YearFY2023 (Results)

Revenue
EBITDAEBIT
Profit/Loss

9,019
5,859
5,561
5,499

9,367
5,843
5,528
5,521

18,386
11,702
11,08911,0196,254
3,060
2,732
2,768

4,642
1,558
1,184
1,210

10,896
4,618
3,916
3,978

29,282
16,32015,005
14,997

3,765
770
385
513

3,549
436
31187

7,314
1,206
416
700

3,357
170-248
-83

3,864
668
223
356

Full
ChangeYear Change(%)
Results
7,221 14,536 -14,746-50%
838
2,044 -14,276-87%-24
392 -14,614-97%274
974 -14,024-94%

Bunker Price (US$/MT)
Bunker consumption (K MT)
Lifting (K TEU)

750
773
2,939

875
771
2,898

812
1,543
5,837

747
732
2,648643712
2,596

696
1,443
5,244

756
2,987
11,081

590
799
2,825

565
862
3,087

577
1,661
5,911

625
859
3,105

587
934
3,002

605
1,793
6,107

1Q
2Q
Results Results

1HResults

3Q
4Q
Results Results

2H
Full Year
1Q
2Q
1H
3Q
4Q
Results Results Results Results Results Results Results

FY2022 vs FY2023
Profit/Loss❑❑

Increase
Decrease❑❑❑❑© 2024 Ocean Network Express Pte. Ltd. All Rights Reserved.

2HResults

592
3,454
12,019- 164
467
938

-22%
16%
8%

Lifting ：Increased as cargo demand improved.
Operating Costs ：Increased in ship costs due to recovery of the charter market, which
had been sluggish since COVID-19, and increase in fuel and port costs due to morevoyages and port calls as result of resolved congestion.
Freight ：Significantly decreased year on year
Variable Costs：Improved, mainly due to lower container storage costs and container
rehandling costs resulting from resolved port congestion
Bunker Price： Slightly decreased due to lower oil prices
Overhead Costs： At the same level year on year3

2. Liftings, Utilization Rates,and Freight Index in Major Trades(Unit: 1,000TEU)
FY2022

Liftings / Utilization by Trades

FY2023
Full
Full
1Q
2Q
1H
3Q
4Q
2H
1Q
2Q
1H
3Q
4Q
2H
Year
Year
Results Results Results Results Results Results
Results Results Results Results Results ResultsResultsResults

Asia - North America
Eastbound
Asia - Europe
WestboundLifting
Utilization
Lifting
Utilization

577
100%
402
95%

578
91%
395
95%

1,155
95%
796
95%

449
80%
368
90%

468
90%
346
95%

916
85%
713
92%

2,072
90%
1,510
94%

578
82%
385
94%

706
95%
434
92%

1,284
89%
819
93%

653
94%
382
90%

616
97%
382
93%

1,269
96%
764
91%

2,553
92%
1,584
92%

Asia-North America
WestboundAsia-Europe
EastboundLifting
Utilization
Lifting
Utilization

278
48%
282
58%

276
51%
267
56%

554
49%
549
57%

297
49%
243
54%

294
55%
235
54%

591
52%
477
54%

1,145
51%
1,026
55%

291
44%
240
54%

295
40%
221
45%

586
42%
461
49%

327
46%
232
50%

295
49%
238
55%

621
48%
470
52%

1,208
45%
931
51%

(Unit: 100 = average freight rates as of 1Q FY2018)
FY2022

Freight Index by Trades
Asia - North America
Eastbound
Asia - EuropeWestbound

FY2023
Full
Full
1Q
2Q
1H
3Q
4Q
2H
1Q
2Q
1H
3Q
4Q
2H
Year
YearResults Results Results Results Results Results
Results Results Results Results Results Results
Results
Results

354

389

372

264

176

219

304

126

109

117

108

135

121

119

530

508

519

303

189

248

391

139

116

127

106

183

144

135

➢

Liftings, Utilization rates: The North America Eastbound liftings decreased as the cargo movement slowed down during Chinese New Year and as someeast coast services rerouted via the CoGH and turn time extended. On the other hand, the utilization rates increased compared to 3Q due to continuous
blank sailings. Both liftings and utilization rates improved significantly compared to the same period last year. Europe Westbound cargo volume was weak in
3Q due to a decline in cargo movements during the low season and blank sailings, while cargo volume remained steady in 4Q except for a drop due toChinese New Year, resulting in a ﬂat lifting level Q on Q. Coupled with the service disruption caused by the rerouting via the CoGH, the utilization rates haveincreased. Compared to the same period last year, where a noticeable drop in cargo volume after the pandemic was seen, cargo volume has recovered in4Q. Despite the increase in cargo volume, the utilization rates remained at a slight decline due to service disruptions via the CoGH reroute.

➢Freight Index : Rerouting via the CoGH has created a tighter supply and demand for ships, therefore short-term freight rates have risen sharply in Europeand North America in January. However, there has been a gradual downward trend since the Chinese New Year due to a slowdown in cargo movement andthe practise of rerouting via the CoGH becoming more established.

© 2024 Ocean Network Express Pte. Ltd. All Rights Reserved.

4

3. FY2024 Full Year ForecastOutline
As the current economic and geopolitical environment is expected to persist for the foreseeable future, full-year results for
FY2024 are expected to show a profit after tax of around US$1,000million, a slight increase from the previous year.
• While some recovery in cargo volume is expected mainly in the US, it is unlikely to be a full-fledged recovery due to geopoliticalinstability and ongoing inflation.
• With the increase in supply caused by the influx of the large number of new vessel deliveries, supply will continue to exceed cargodemand. Meanwhile, the routing via the Cape of Good Hope due to the uncertain situation in the Middle East is expected to have asignificant impact on the supply-demand balance during the first half of the fiscal year, leading to high demand for vessel capacity.
• Given these circumstances, the current supply-demand balance is expected to continue. ONE will continue to monitor the situation
carefully, focusing on maximizing profit by flexible tonnage deployment and efficient equipment control based on demand.

FY2024 Full Year Forecast(Unit: Million US$)FY2024 Forecasts
1H

2H

Revenue

8,500

8,500

EBITDA

1,600

EBIT
Profit/Loss

FY2023 Results

Full Year

Full Year

1H

2H

17,000

7,314

7,221

14,536

2,464

14.5%

1,100

2,700

1,206

838

2,044

656

24.3%

600

200

800

416- 24392

408

51.0%

800

200

1,000

700

27497426

2.6%© 2024 Ocean Network Express Pte. Ltd. All Rights Reserved.

Full Year

ChangeChange%54. ONE’s Response to Recent Changes in theBusiness Environment

Events➢ Cargo movements from Asia to North America during January to March increased by 20.5% year-on-year thanks to thecontinued domestic consumption levels in the United States. However, the large double-digit increase is mainly due to abacklash from the same period of the previous year. Additionally, cargo movements from Asia to Europe increased by
11.5% in January and February. Prolonged inflation has caused a stagnation in consumer spending, and a tightening ofmonetary policy led to downward pressure to the economy. As a result, it is expected that a full recovery in cargo
movements will take more time.
➢ The increase in supply caused by the influx of the large number of new vessel deliveries will continue. However, theuncertainty around the Middle East and the rerouting through the CoGH from the end of calendar year 2023 has resulted in
the tight supply-demand balance especially in January and February.
➢ The temporarily tight supply-demand balance for shipping tonnage has softened moderately due to a slowdown in cargo
movement after the Chinese New Year and a lull in the switch to the Cape of Good Hope route.
➢ Although traffic restrictions remain in place through the Panama Canal, congestion and waiting times are improving as therainy season approaches.

ONE’sresponse➢ Implemented flexible counter measures to minimize supply chain disruptions caused by the situation in the Red Sea.
➢ Continued to take flexible measures for the North America East Coast route, including the CoGH route, while monitoring
congestion at the Panama canal and the availability of its passage slot.
➢ Implemented flexible service adjustments in line with supply and demand.
➢ Optimization of ONE’s container distribution by efficient container repositioning.
➢ Increased special cargo shipments through the strengthening of special cargo sales.
➢ Established West Asia Regional Headquarters in Dubai, to enhance the presence of ONE within Indian Subcontinent,
Middle East, and East Africa market

Maximizing operational efficiencies through flexible deployment and the management of vessels and equipment.
©2024 Ocean Network Express Pte. Ltd. All Rights Reserved

6５. Initiatives for FY2023 4th Quarter
1.
Initiative

2.
3.

➢➢

Investment
Progress➢➢➢➢Environment➢

As a container shipping company that supports the supply chain, ONE will makeinvestments to continuously provide high-quality, safe global transportation services.
ONE has positioned green strategy as a top management priority and will continue toaddress industry challenges, including decarbonization.
ONE will continue to enhance digitalization, operational efficiency, and risk management tofurther increase industry-leading profitability and safety, to achieve sustainable growth.
Obtained Approval in Principle (AiP) for the 3,500TEU ammonia dual-fueled vessel, jointly
developed by ONE, Nihon Shipyard Co., Ltd and classification society DNV (Jan).
Launched Indian Ocean Mediterranean (IOM) service that connects India with the Mediterranean
region (Jan).
Revamped Adriatic Feeder Service(AIB)(Jan)Announced the launch of Asia Pacific 1 (AP1) service, a new route connecting Asia and the U.S.
West Coast (Feb).
Established West Asia Regional Headquarters to expand the presence of ONE within Indian
Subcontinent, Middle East, and East Africa market (Mar).
Announced the restructuring and establishment of feeder service in the Nordic and Baltic Sea(Mar).
Inauguration of European Union Allowance (EUA) trading with BNP, following the launch of theemissions trading scheme in the EU (Feb).

Digital➢Added Quick Booking function to eCommerce(Mar).

Others➢Hosted the third Container Shipping Summit in Nagasaki (Mar).

©2024 Ocean Network Express Pte. Ltd. All Rights Reserved

76. Reference（Fleet Structure, Service Structure &New Order)
Fleet StructureSize
20,000 TEU>=

10,500 TEU-

20,000 TEU

9,800 TEU-

10,500 TEU

7,800 TEU-

9,800 TEU

6,000 TEU-

7,800 TEU

5,200 TEU-

6,000 TEU

4,600 TEU-

5,200 TEU

4300 TEU-

4,600 TEU

3,500 TEU-

4,300 TEU

2,400 TEU

-3,500 TEU

1,300 TEU-

2,400 TEU

1,000 TEU

-1,300 TEU

0 TEU-1,000 TEU

Total

Service Structure1) As of end of 2) As of end ofDec 2023
Mar 2024
Capacity (TEU)
264,600
264,600
Vessels
1212
Capacity (TEU)
581,060
611,804
Vessels
4244
Capacity (TEU)
110,200
110,200
Vessels
1111
Capacity (TEU)
346,389
346,389
Vessels
3939
Capacity (TEU)
158,618
172,618
Vessels
2426
Capacity (TEU)
33,112
33,112
Vessels
66
Capacity (TEU)
78,06878,068Vessels
1616
Capacity (TEU)
62,60258,294
Vessels1413
Capacity (TEU)46,051
50,304
Vessels
1112
Capacity (TEU)
84,37084,370
Vessels
3131
Capacity (TEU)
18,544
20,494
Vessels
1112
Capacity (TEU)
16,088
13,962
Vessels
1513
Capacity (TEU)
00
Vessels00
Capacity (TEU)
1,799,702
1,844,215
Vessels2322352)-1)00
30,7442000
014,000200
00-4,308-1
4,253
1
00
1,950
1-2,126-2
00
44,513
3（FY2023 4Q Structure of dominant andnon-dominant space allocation）

Others23%

Intra-Asia
25%

Asia-North
America
31%

Asia-Europe
21%

Current Orders of New Vessels(Including Long-Term Chartered Vessels)
No. of Order Book (Vessels)

As of end ofDec 2023
45Delivered in
4Q FY2023
4©2024 Ocean Network Express Pte. Ltd. All Rights Reserved

New Order in
4Q FY2023
5

As of end ofMar 2024
468

7. Appendix Change of Demand and Freight index
before/after COVID-19Liftings©2024 Ocean Network Express Pte. Ltd. All Rights Reserved

Freight Index(FY2018 1Q=100)9