NS United Kaiun Kaisha : Supplementary Material for the FY ended March 2023

Translation only

FY2022

(Ending March 31, 2023)

April 28, 2023

Financial Highlights

Contents

１．Highlights of Results in FY2022	・・・・・・・p.２
２．Overview of Results in FY2022	・・・・・・・p.３
３．Forecasts for FY2023	・・・・・・・p.４
４．Market Forecast for FY2023	・・・・・・・・p.６
５．Activities	・・・・・・・p.７
(For Reference) Operating Fleet Composition	・・・・・・・p.８
Financial Outlook	・・・・・・・p.９

April 28, 2023: Financial Highlights	1

1. Highlights of Results in FY2022

Operating income (Units: 100 million yen)

207

																			154
																113					118
41	47	56	39	38			42	38		48	42		41		50
			35
	26	24	29
								18
1H	2H	1H	2H	1H	2H	1H	2H	1H	2H	1H	2H	1H	2H	1H	2H		1H		2H	1H	2H
2013	2014	2015	2016	2017	2018	2019	2020	2021		2022

Review of Full-Year Performance

First Half Results Favorable conditions in the small - and medium-sized vessel market and a greater-than- expected depreciation of the yen provided a boost to earnings.

• While the dry bulk market was largely volatile for large ships (capesize), the market for small and medium-sized vessels remained firm due to the longer shipping distances, which contributed to the stability of supply and demand. In addition, the dollar-yen exchange rate experienced a significant depreciation of the yen, which significantly boosted earnings.

Second Half Results Stable earnings were secured based on medium- to long-term transportation contracts in preparation for the market softening phase.

• The dry bulk market conditions were soft due to seasonal factors and the reduction of demurrage following the easing of quarantine systems at ports, but the transportation contracts concluded under high market conditions supported earnings.
• While there were concerns about an economic slowdown against the backdrop of the US-China trade conflict and inflation caused by high resource prices, China's lifting of the zero corona policy resulted in a recovery trend from February.

• We achieved the highest profit for the second consecutive period, and ROE exceeded 20% for the second consecutive period.

Dividend distribution for the full year is estimated at 365 yen per share. (285 yen for the previous full year)

April 28, 2023: Financial Highlights	2

2. Overview of Results in FY2022

International shipping Although the dry bulk market has been on a downward trend since the summer due to concerns over inflation associated with a soaring global resource prices and an increase in the supply of ships due to the relaxation of the port quarantine system, it has remained firm compared to previous years. Operating income increased year on year to 30.1 billion yen due to stable earnings under medium- and long-term contracts and the depreciation of the yen that progressed during the period.

Coastal shipping Although the transportation volume of electricity-related cargo declined from the previous fiscal year due to a decline in the operating rate of thermal power plants, the transportation volume of steel raw materials and cement- related cargo remained strong. Operating income increased year on year to 2.4 billion yen, supported by demand for spot transportation.

As a result, operating income increased by approximately 5.8 billion yen, ordinary income increased by approximately 6.8 billion yen, and net income increased by approximately 4 billion yen over the same period of the previous fiscal year.

(Consolidated)			FY2021								FY2022
[100 mil. yen]		1Q	2Q	1H	3Q	4Q	2H	Full year		1Q	2Q	1H	3Q	4Q	2H	Full year
Revenues	428	469	897	547		515	1,062	1,959	623	685	1,308	660	540	1,200	2,508
Operating Income	47	66	113	88		66	154	267	112	95	207	93	25	118	325
International Shipping
45	62	107	83		59	142	249	113	91	204	83	14	97	301
Coastal Shipping	2	4	6	5		7	12	18		▲ 1	4	3	10	11	22	24
Ordinary Income	41	63	105	91		70	161	266	131	110	241	73	21	93	334
Profit Attributable to	36	52	87	71		78	149	236	105	89	194	59	22	82	276
Owners of Parent

Changes Y-o-Y

• 549
• 58
• 51
• 7
• 68
• 40

April 28, 2023: Financial Highlights	3

3. Forecasts for FY2023

Business Environment While the recovery of the Chinese economy is expected to lead to an increase in maritime cargo movements, the easing of the port quarantine system and the consequent reduction in the number of demurrage vessels are expected to continue to depress the shipping market. And solid demand for marine transportation, particularly for steel raw materials, is expected, but it is necessary to keep a close eye on the impact on the supply-demand balance of the expansion of further deceleration voyages in consideration of environmental measures in addition to the reduction of demurrage. (Please refer to Section 4. Market Forecast for FY2023). With regard to exchange rates, changes in monetary policy are cited as a risk factor in both Japan and the United States, but we assume that the dollar-yen exchange rate will average 130 yen during the period.

Dividend forecast The interim dividend for FY2023 will be 65 yen.The year-end dividend is yet to be determined, but the total annual dividend, including the interim dividend, is expected to be approximately 30% of the consolidated full-year results based on our company's dividend policy. We will promptly announce as soon as we are able to disclose the year-end dividend forecast after assessing future risk factors.

		(Consolidated)		FY2022
			1H	2H	Full Year
		[100 mil. yen]	(Result)	(Result)	(Result)
		Revenues	1,308	1,200	2,508
		Operating Income	207	118	325
		Ordinary Income	241	93	334
		Profit Attributable to	194	82	276
		Owners of Parent
				FY2022
			1H	2H	Full Year
		Ex. Rate	¥130.83	¥138.50	¥134.67
		Bunker Price	$705	$605	$655
		（Average of all oil types）
		Marke Capesize	$17,520	$11,932	$14,726
		Panamax	$21,743	$13,612	$17,677
April 28, 2023: Financial Highlights		Small Handy	$22,995	$12,279	$17,637

FY2023

1H	2H	Full Year
(Forecast)	(Forecast)	(Forecast)
890	900	1,790
74	73	147
65	67	132
49	61	110
	FY2023
1H	2H	Full Year
（Forecast）	（Forecast）	（Forecast）
¥130.00	¥130.00	¥130.00
$587	$587	$587
$18,000	$18,000	$18,000
$15,000	$14,250	$14,625
$13,000	$12,000	$12,500

Changes

Y-o-Y

• 718
• 178
• 202
• 166

4