Financial Highlights: Fiscal Year 2021 Ended March 31, 2022

Financial Highlights: Fiscal Year 2021 Ended March 31, 2022

1. Consolidated Financial Highlights ( from April 1, 2021 to March 31, 2022 )

(All financial information has been prepared in accordance with accounting principles generally accepted in Japan)

(1) Operating Results

(¥Million)

FY2021	FY2020
Revenues	1,269,310	991,426
Operating profit (loss)	55,005	(5,303)
Ordinary profit	721,779	133,604
Profit attributable to owners of parent	708,819	90,052

(¥)

Net income per share	1,970.16	250.99
Diluted net income per share	1,960.97	250.22
Return to shareholders' equity	76.5%	16.5%
Rate of ordinary income on assets	30.2%	6.4%
Operating profit ratio	4.3%	(0.5%)

* The Company split its common share on the basis of one (1) share into three (3) shares effective April 1, 2022.

Accordingly, net income per share and diluted net income per share is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year ended March 31, 2021.

(2) Financial Position

(¥Million)

FY2021	FY2020
Total assets	2,686,701	2,095,559
Total net assets	1,334,866	699,150
Shareholders' equity / Total assets	47.4%	27.6%

(¥)

Shareholders' equity per share

3,532.32

1,610.04

* Shareholders' Equity is defined as follows.

Shareholders' Equity = Total Net Assets - ( Share option + Non-controlling interests )

* The Company split its common share on the basis of one (1) share into three (3) shares effective April 1, 2022.

Accordingly, Shareholders' equity per share is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year ended March 31, 2021.

2. Dividends

Dividend per share ( ¥ )	Total dividends paid (¥Million)	Dividend pay-out ratio	Dividend ratio to shareholders' equity
Q1	Q2	Q3	Year - end	Total
FY2020	―	15.00	―	135.00	150.00	17,943	19.9%	3.3%
FY2021	―	300.00	―	900.00	1,200.00	144,240	20.3%	15.6%
FY2022 (Outlook)	―	200.00	―	150.00	350.00	25.2%

* The Company split its common share on the basis of one (1) share into three (3) shares effective April 1, 2022.

Accordingly, the dividends per share for the fiscal year ended March 31, 2021 and the fiscal year ended March 31, 2022 represent the actual amount of dividends before the stock split. The dividend per share for the fiscal year ended March 31, 2023 (Outlook) represents the amount with impacts from the stock split taken into consideration.

3. Forecast for the Fiscal Year Ending March 31, 2023

(¥Million)

FY2022
Revenues	1,353,000
Operating profit	46,000
Ordinary profit	525,000
Profit attributable to owners of parent	500,000

(¥)

Net income per share

1,389.63

* The Company split its common share on the basis of one (1) share into three (3) shares effective April 1, 2022.

Accordingly, net income per share in Forecast for the Fiscal Year Ending March 31, 2023 represents the amount with impacts from the stock split taken into consideration.

(Reference)

Non-Consolidated Financial Highlights ( from April 1, 2021 to March 31, 2022 )

(All financial information has been prepared in accordance with accounting principles generally accepted in Japan)

(1) Operational Results

(¥Million)

FY2021	FY2020
Revenues	765,214	585,630
Operating profit (loss)	33,376	(13,267)
Ordinary profit	260,240	23,457
Net income	270,004	(9,196)

(¥)

Net income per share	750.46	(25.56)
Diluted net income per share	746.96	―

* Net income per share and diluted net income per share is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year ended March 31, 2021.

(2) Financial Position

(¥Million)

FY2021	FY2020
Total assets	1,231,491	1,009,922
Total net assets	419,739	194,574
Shareholders' equity / Total assets	34.0%	19.1%

(¥)

Shareholders' equity per share

1,161.06

538.43

* Shareholders' equity per share is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year ended March 31, 2021.

4. Business Performance

(1) Analysis of Operating Results

(¥ Billion)

FY2020 From April 1, 2020 to March 31, 2021	FY2021 From April 1, 2021 to March 31, 2022	Year-on-year comparison / Variance
Revenue	991.4	1,269.3	277.8 / 28.0%
Operating profit	(5.3)	55.0	60.3 / - %
Ordinary profit	133.6	721.7	588.1 / 440.2%
Profit attributable to owners of parent	90.0	708.8	618.7 / 687.1%
Exchange rate	¥105.95/US$	¥111.52/US$	¥5.57/US$
Bunker price*	US$355/MT	US$585/MT	US$230/MT
*Average price for all the major fuel grades

We recorded revenue of ¥1,269.3 billion, an operating profit of ¥55.0 billion, an ordinary profit of ¥721.7 billion and profit attributable to owners of parent of ¥708.8 billion. We recorded ¥657.3 billion of equity in net earnings of affiliated companies in non-operating income, mainly due to considerably improved earnings at OCEAN NETWORK EXPRESS PTE. LTD. (ONE), an equity method affiliate. The amount of equity in net earnings of affiliated companies we recorded which is attributable to ONE is ¥635.7 billion.

The following is a summary of business conditions including revenue and ordinary profit/loss per business segment.

Upper: Segment Revenue, Lower: Segment Ordinary Profit

(¥ Billion)

FY2020 From April 1, 2020 to March 31, 2021	FY2021 From April 1, 2021 to March 31, 2022	Year-on-year comparison / Variance
Dry Bulk Business	222.1	360.9	138.7 / 62.4%
(4.2)	43.2	47.5 / -%
Energy and Offshore Business	287.5	303.1	15.5 / 5.4%
29.7	19.8	(9.9) / (33.3%)
Product Transport Business	396.4	516.6	120.2 / 30.3%
102.6	662.9	560.3 / 545.9%
cccccccccccc	Containerships	220.5	277.3	56.7 / 25.7%
117.1	653.2	536.1 / 457.7%
Associated Businesses	98.1	108.1	9.9 / 10.1%
9.4	7.4	(1.9) / (20.9%)
Others	22.5	24.2	1.7 / 7.5%
2.6	2.7	0.0 / 1.9%

Note: Revenue includes internal sales or transfers among segment

(A) Dry Bulk Business

In the dry bulk market, charter rates remained at a high level until early autumn, reflecting tight vessel supply due to firm demand for the transport of steel raw materials, grains, coal and other commodities, and congestion largely attributable to border control measures in response to COVID-19 and typhoons in China. The Capesize market subsequently entered an adjustment phase and was somewhat lackluster from the beginning of the year onwards due to a slowdown in shipments from Brazil during the rainy season. Meanwhile, the Panamax bulker market maintained a firm tone throughout the year due to transport demand for coal in winter and other cargoes such as South American grains, despite the impact of Indonesia's coal export ban at the beginning of the year and the upheaval caused by the Russia-Ukraine crisis.

Under such market conditions, the dry bulk business as a whole posted a significant year-on-year improvement in profit, bolstered by improvement in profitability through more efficient vessel allocation at MOL Drybulk Ltd., which was established in April 2021.

(B) Energy and Offshore Business

In the very large crude oil carrier (VLCC) market, rates remained sluggish throughout the year, with no tightening of the vessel supply-demand gap amid slow growth in cargo movements due to prolonged coordinated output cuts by OPEC and a lack of progress on the scrapping of obsolete vessels. The product tanker market also continued to face difficult conditions as a result of the decline in export cargo movements, amid a slow recovery in demand as seen for VLCCs.

Under these market conditions, while the tanker division as a whole endeavored to stably fulfill long-term contracts and reduce costs, it suffered a decline in profit compared with the previous fiscal year when charter rates were strong.

The LNG carrier division generated stable profit mainly through existing long-term charter contracts in addition to profit from the delivery of a new LNG carrier and an LNG-bunkering vessel posting a year-on-year increase in profit. In the offshore business, one unit each was delivered in the FPSO business and in the FSRU business. In addition to the newly delivered units, operations in existing projects were steady and maintained the profit level year on year.

(C) Product Transport Business

In the containerships business, ONE continued to see robust demand for container cargo movements, especially on Asia-North America and Asia-Europe routes, throughout the year. In addition, supply chain disruptions persisted, particularly in ports and inland transport logistics in North America. As a result, spot freight rates far exceeded levels seen a year earlier. Increased profit in the Terminals & Logistics business reflecting the recovery of handling volume also contributed to segment profit and, as a result, the Containerships business posted substantial year-on-year profit growth.

Transportation volume of completed cars increased substantially from the previous year when it was affected by the COVID-19 pandemic, thanks to a recovery in global auto sales, significantly improving profitability year on year. While there was some impact of production cuts caused by semiconductor shortages, we have endeavored to minimize the effect by flexible and agile tonnage and route adjustments.

The passenger business was sluggish, failing to recover to pre-pandemic levels, with prolonged periods under a state of emergency and quasi-state of emergency throughout the year. The logistics business remained on a recovery path, buoyed by stay-at-home consumption. However, the Ferries and Coastal RoRo Ships business overall saw a year-on-year deterioration in profit, reflecting rising bunker prices.

(D) Associated Businesses

In the real estate business, profit declined slightly year on year, due to a fall in revenues associated with the reconstruction of some buildings held by DAIBIRU CORPORATION, the core company in the Group's real estate business, but performed steadily in general. The cruise ship business was forced to suspend services for prolonged periods due to the resurgence of COVID-19, resulting in a decline in profit, as was the case in the previous fiscal year. The tugboat business faced different conditions at every company and every port, but overall profit was mostly unchanged year on year. Performance of other associated businesses such as the trading business remained generally balanced, but the Associated Businesses segment, on the whole, reported a year-on- year decline in profit.

(E) Others

Other businesses, which are mainly cost centers, including ship operations, ship management, ship chartering, and financing posted an ordinary profit flat year on year.