日本郵船（9101） – Consolidated Financial Results for Nine Months Ended December 31, 2021 (Japanese GAAP) (Unaudited)

Consolidated Financial Results for Nine Months Ended December 31, 2021 (Japanese GAAP) (Unaudited) February 3, 2022 Nippon Yusen Kabushiki Kaisha (NYK Line) Security Code: Listings: URL: Head Office: Representative: Contact: 9101 The First Section of Tokyo Stock Exchanges https://www.nyk.com/english/ Tokyo, Japan Hitoshi Nagasawa, President Shuichiro Shimomura, General Manager, IR Group Tel: +81-3-3284-5151 Submit scheduled date of Quarterly Financial Report February 10, 2022 Start scheduled date of paying Dividends Preparation of Supplementary Explanation Material: Yes Financial Results Presentation Held: – Yes (for Analysts and Institutional Investors) (Amounts rounded down to the nearest million yen) 1. Consolidated Financial Results for the Nine Months Ended December 31, 2021 (April 1, 2021 to December 31, 2021) (1) Consolidated Operating Results (Percentage figures show year on year changes) Revenues Operating profit Recurring profit million yen % million yen % million yen % million yen Nine months ended December 31, 2021 Nine months ended December 31, 2020 1,675,958 1,145,943 46.3 – 8.6 197,992 312.9 698,327 692,216 47,953 47.7 122,086 52,362 179.4 472.0 217.2 (Note) Comprehensive income: Nine Months ended December 31, 2021: ¥744,451 million (-%), Nine Months ended December 31, 2020: ¥49,155 million Profit attributable to owners of parent % – Profit per share Profit per share–fully diluted yen 4,097.91 310.11 yen – – Nine months ended December 31, 2021 Nine months ended December 31, 2020 (2) Consolidated Financial Position As of December 31, 2021 As of March 31, 2021 2. Dividends Total assets Equity million yen 2,723,315 2,125,480 million yen 1,347,791 667,411 Shareholders’ equity ratio % 48.0 29.4 (Reference) Shareholders’ equity: As of December 31, 2021: ¥1,306,279 million, As of March 31, 2021: ¥625,332 million Date of record 1st Quarter End 2nd Quarter End 3rd Quarter End Year-end Total Dividend per share Year ending March 31, 2021 Year ending March 31, 2022 Year ending March 31, 2022 (Forecast) (Note) Revision of forecast for dividends in this quarter: Yes yen – – yen 20.00 200.00 yen yen yen – – 180.00 200.00 1,000.00 1,200.00 (-%) 3. Consolidated Financial Results Forecast for the Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022) Revenues Operating Recurring profit profit (Percentage figures show year on year changes) Profit attributable to owners of parent Profit per share Year ending March 31,2022 2,200,000 36.8 265,000 270.4 930,000 331.9 930,000 568.0 5,505.46 million yen % million yen % million yen % million yen % yen (Note) Revision of forecast in this quarter: Yes 4. Notes (1) Changes of important subsidiaries in the period: None (Changes in specified subsidiaries involving change in consolidation scope) New: None Exclusion: None (2) Particular accounting methods used for preparation of quarterly consolidated financial statements: None (3) Changes in accounting policy, changes in accounting estimates, and restatements 1. Changes in accounting policy in accordance with changes in accounting standard: Yes 2. Changes other than No.1: 3. Changes in accounting estimates: 4. Restatements: None None None (4) Total issued shares (Ordinary shares) 1. Total issued shares (including treasury stock) As of December 31, 2021 170,055,098 As of March 31, 2021 170,055,098 2. Number of treasury stock 3. Average number of shares (cumulative quarterly period) As of December 31, 2021 Nine months ended December 31, 2021 1,119,028 As of March 31, 2021 Nine months ended December 31, 2020 168,919,491 1,195,544 168,851,889 *This financial report is not subject to the audit procedure. *Assumptions for the forecast of consolidated financial results and other particular issues Foreign exchange rates: (for the fourth quarter) ¥113.00/US$ (for full year) ¥111.48/US$ Bunker oil prices: (for fourth quarter) US$565.00/MT (for full year) US$519.53/MT *Bunker oil prices are on average basis for all the major fuel grades including VLSFO. The above forecast is based on currently available information and assumptions that NYK Line deems to be reasonable. NYK Line offers no assurance that the forecast will be realized. Actual results may differ from the forecast as a result of various factors. Refer to pages 2-7 of the attachment for assumptions and other matters related to the forecast. (Methods for obtaining supplementary materials and content of financial results disclosure) NYK Line is to hold a financial result presentation meeting for analysts and institutional investors. The on-demand audio presentation and presentation material are available on the NYK website. (https://www.nyk.com/english/ir/library/result/2021/) Index of the Attachments 1. Qualitative Information on Quarterly Results ················································································· 2 (1) Review of Operating Results ···································································································· 2 (2) Explanation about Financial Position ·························································································· 6 (3) Explanation of Consolidated Earnings Forecast and Future Outlook ················································· 6 2. Consolidated Financial Statements ····························································································· 8 (1) Consolidated Balance Sheet ···································································································· 8 (2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ················ 10 (3) Notes Regarding Consolidated Financial Statements ··································································· 12 (Notes Regarding Going Concern Assumption) ·········································································· 12 (Notes in the Event of Significant Changes in Shareholders’ Capital)··············································· 12 (Changes in Accounting Policies Due to Revisions of Accounting Standards) ···································· 12 (Segment Information) ·········································································································· 14 3. Other Information ·················································································································· 15 (1) Quarterly Operating Results ··································································································· 15 (2) Foreign Exchange Rate Information ························································································· 15 (3) Balance of Interest-Bearing Debt ····························································································· 15 1 1. Qualitative Information on Quarterly Results (1) Review of Operating Results Revenues Operating Profit Recurring Profit Profit attributable to owners of parent Nine months Nine months ended ended December December 31, 2020 31, 2021 1,145.9 1,675.9 47.9 122.0 52.3 197.9 698.3 692.2 （In billion yen） Change Percentage Change 530.0 150.0 576.2 46.3% 312.9% 472.0% 639.8 1,222.0% In the first nine months of the fiscal year ending March 31, 2022 (April 1, 2021 to December 31, 2021), consolidated revenues amounted to ¥1,675.9 billion (increased by ¥530.0 billion compared to the first nine months of the previous fiscal year), operating profit amounted to ¥197.9 billion (increased by ¥150.0 billion), recurring profit amounted to ¥698.3 billion (increased by ¥576.2 billion), profit attributable to owners of parent amounted to ¥692.2 billion (increased by ¥639.8 billion). Due to the strong performance of OCEAN NETWORK EXPRESS PTE. LTD. (ONE), our equity-method affiliate, equity in earnings of unconsolidated subsidiaries and affiliates of ¥513.8 billion in non-operating income was recorded. Within this amount, equity in earnings of affiliates from ONE was ¥491.3 billion. Changes in the average exchange rate between the U.S. dollar and yen as well as the average bunker oil price during the first nine months of the current and previous fiscal years are shown in the following tables. Nine months ended Nine months ended Dec 31, 2020 Dec 31, 2021 Average exchange rates ¥106.14/US$ ¥110.97/US$ Yen down ¥4.83/US$ Average bunker oil prices US$362.57/MT US$504.05/MT Change Price up US$141.48/MT Note: Exchange rates and bunker oil prices are our internal figures. 2 Business segment information for the nine months ended December 31, 2021 (April 1, 2021 to December Overview by Business Segment 31, 2021) is as follows. Nine Months Ended (in billion yen) Revenues Recurring profit Dec 31, Dec 31, Percentage Dec 31, Dec 31, 2020 2021 Change 2020 2021 Change Change Liner Trade 126.5 141.0 14.5 11.5 % 68.4 504.4 435.9 Air Cargo Transportation 87.8 141.6 53.7 61.2 % 24.6 56.4 31.7 Logistics 387.6 613.3 225.6 58.2 % 17.4 45.6 28.2 Bulk Shipping 493.3 724.6 231.2 46.9 % 14.1 93.9 79.8 Real Estate 5.1 3.3 -1.8 -35.3 % 2.0 1.6 -0.3 Other 90.9 118.2 27.3 30.1 % -1.4 -1.1 -0.2 iLner &Logstics itOhers Liner Trade In the container shipping division, at ONE, the robust cargo demand remained ongoing at mainly in the North America trade while the continued port congestion and inland congestion due to a shortage of drivers caused by COVID-19 led to little improvement in the overall supply chain disruptions, resulting in tighter supply-and-demand for shipping space. In the major trades, sailings were voided in the North America trade as turnaround times grew longer due to port congestion, resulting in lower liftings and higher utilization year on year. In the Europe trade, both liftings and utilization were higher compared to the same period last year. Freight rates were higher year on year in both trades, greatly contributing to profits. Within this situation, ONE continued to procure containers, add extra sailings and increase the vessel sailing speed to minimize schedule delays in order to maximize the space available aboard the vessels. As a result of the above, profit increased on higher revenue in the overall Liner Trade compared to the same period last year. Air Cargo Transportation In the Air Cargo Transportation segment, while international passenger flights continued to be suspended and cancelled due to the impact of COVID-19, cargo volumes mainly of automotive components and semiconductors remained strong. In addition, some ocean cargo continued to be shifted to air freight due to a shortage of space aboard containerships and port congestion. This caused both cargo volumes and freight to trend at high levels. 3 As a result of the above, profit greatly increased on higher revenue in the overall Air Cargo Transportation segment compared to the same period last year. Also, in the third quarter, Nippon Cargo Airlines Co., Ltd. (NCA) cancelled the lease agreements and took ownership of 7 Boeing 747-8F aircraft operated by the company. This will enable the aircraft to be used flexibly in response to the future changes in the business environment. As a result of this acquisition, an extraordinary loss of about ¥8.0 billion was recorded in the third quarter for the penalty incurred when cancelling the lease agreements. Logistics In the air freight forwarding business, the supply and demand balance tightened due to the decreased supply of space caused by the ongoing COVID-19 related suspension and cancellation of international passenger flights and the increased cargo volumes during the peak season in the third quarter. Within this situation, the ability to secure space through agile procurement activities led to higher handling volumes year on year and was the driver of overall business performance. In the ocean freight forwarding business, although it was difficult to secure space due to port congestion, handling volumes increased compared to the same period last year. Also, sales prices caught up with the soaring procurement prices, leading to improved profit levels, and overall business performance was In the logistics business, demand for mainly consumer goods was firm, and handling volumes increased strong. compared to the same period last year. In the coastal transportation business, handling volumes increased compared to the same period last year. As a result of the above, profit increased on higher revenue in the overall Logistics segment compared to the same period last year. Bulk Shipping In the car transportation division, there were concerns for finished-car handling volumes due to the shortage of automobile components caused by the impact of COVID-19 and the global semiconductor shortage, but along with acquiring alternative cargo through cooperation with affiliate companies and maintaining close communication with customers, the efforts to optimize vessel deployment plans and sailing schedules led to improved vessel utilization, and handling volumes increased compared to the same period last year. In the auto logistics segment, despite the impact of lower automobile production volumes mainly in China due to a shortage of semiconductors, each business unit worked to reduce costs and rationalize unprofitable businesses, and at the same time, activities directed at revising the business portfolio were carried out, including progress in the preparations for opening finished-car terminals in Turkey and Egypt. In the dry bulk division, during the peak season from July through September, shipments of iron ore from Brazil picked up after the wet season ended, while in China, multiple typhoons, heavy rain and the enactment of stricter border measures against COVID-19 led to increased vessel waiting times. Consequently, the Capesize market rose to the highest level in 11 years. After peaking in early October, the market started to decline as vessel waiting times in China dropped, but it still trended at greatly higher levels compared to the same period last year. In the Panamax segment, coal procurement increased when the price of natural gas exceeded that of coal in June and July. Imports of coal into China increased ahead 4 of peak electricity demand season, and the market peaked in October. Thereafter, the global congestion eased, and the market entered a correction phase. However, supported by strong coal shipments, the market trended at levels greatly exceeding the same period last year. Within this environment, along with fixing revenue through the use of futures contracts to minimize the impact of market fluctuations, efforts were made to stabilize revenue by securing long-term contracts and reduce costs through efficient operations. In the energy division, although OPEC Plus gradually ended the coordinated production cuts from May, the supply and demand balance did not improve, and the VLCC (Very Large Crude Carrier) and petrochemical tanker markets remained at historic lows. In the VLGC (Very Large LPG Carrier) market, from June, along with entering the weak demand season, the LPG export price from the United States rose, causing the price difference for LPG from the United States and Middle East to contract. As a result, shipments from the United States with relatively higher transportation costs due to the longer distance slackened, and the decline in overall ton-miles caused market levels to fall. Although the market soared from September as shipments increased ahead the peak winter demand and congestion occurred at the Panama Canal, it did not reach the strong levels seen in the same period last year. In the tanker market, although the ratio of vessels operated under short-term contracts affected by market volatility is limited, the market was extremely weaker than the same period last year and had a negative impact on earnings. In LNG carriers, the results were steady based on support from the long-term contracts that generate stable earnings. Also, in the offshore business, FPSO (Floating Production, Storage and Offloading) and As a result of the above, the overall Bulk Shipping segment recorded increased profit on higher revenue drill ships were steady. compared to the same period last year. Real Estate and Other Businesses In the real estate segment, profit decreased on lower revenue year on year following the partial transfer of shares of a subsidiary. Also, an extraordinary income of about ¥23.0 billion was recorded in the second quarter as a result of this share transfer. In the Other Business Services segment, bunker fuel sales greatly increased due mainly to higher oil prices which has led to the strong performance in this business. In addition, COVID-19 had a smaller impact on the technical service business, where some of the construction projects recovered and the sales of marine equipment supplies business improved. In the cruise business, only some of the cruises were operated due to the impact of COVID-19. As a result of the above, although revenue increased in the Other Business Services segment compared to the same period last year, a loss was recorded. 5 (2) Explanation of the Financial Position Status of Assets, Liabilities and Equity As of the end of the third quarter of the current consolidated accounting period, assets amounted to ¥2,723.3 billion, an increase of ¥597.8 billion compared to the end of the previous consolidated fiscal year due to an increase in notes and operating accounts receivable-trade and an increase in investment securities after recording the profit from ONE and other equity method affiliates. Interest bearing debt decreased by ¥83.6 billion to ¥867.4 billion due to a decrease in long-term loans payable, and total liabilities amounted to ¥1,375.5 billion, a decrease of ¥82.5 billion compared to the end of the previous consolidated fiscal year. Under consolidated equity, retained earnings increased by ¥634.7 billion and shareholders’ equity, which is the aggregate of shareholders’ capital and accumulated other comprehensive income, amounted to ¥1,306.2 billion. This amount combined with the non-controlling interests of ¥41.5 billion brought total equity to ¥1,347.7 billion. Based on this result, the debt-to-equity ratio (D/E ratio) came to 0.66, and the equity ratio was 48.0%. (3) Explanation of the Consolidated Earnings Forecast and Future Outlook ① Forecast of the Consolidated Financial Results In the container shipping division, at ONE, it is still unclear when the robust demand will peak and the supply chain will return to normal, but the current forecast incorporates the assumptions of seasonally slower demand after Chinese New Year and the impact of voiding voyages due to further sailing schedule delays caused by supply chain disruptions. At the overseas terminals, there are concerns handling volumes will decline due to vessel congestion mainly at the ports on the west coast of North America. On the other hand, handling volumes are expected to remain firm at the terminals in Japan. In the Air Cargo Transportation segment, although the market will enter the seasonal period of weaker demand, freight rates are expected to remain at favorable levels. It is still difficult to foresee how the restoration of international passenger flights will impact the market, but the trend of shifting some of the ocean cargo to air freight is expected to continue, resulting in a sustained tight supply and demand balance. In the Logistics segment, although handling volumes and profit levels are expected to decline in the air freight forwarding, ocean freight forwarding and logistics businesses due to seasonally slower demand, they are forecast to remain at firm levels. Also, in the logistics business, soaring personnel expenses in Europe and the United States are a concern, but efforts will be made to stabilize earnings through further progress in cutting costs and revising the service contracts, including price adjustments. In the car transportation division, although the impact of the semiconductor and automobile component shortages on transportation volumes is a concern, transportation volumes in the second half are expected to surpass those in the first half for a full-year total exceeding last year. In the dry bulk division, market levels are expected to settle down for all vessel segments in the fourth quarter, but supported by the strong results achieved through the third quarter, the full-year results are forecast to greatly exceed last year. In the energy division, although the VLCC market is expected to gradually recover in the fourth quarter, it is forecast to remain at weak levels. The VLGC market is expected to remain at levels exceeding those in the first half. Also, LNG carrier earnings are expected to remain steady based on support from stable medium to long-term contracts. 6 Based on the above, the forecast of the full-year consolidated financial results has been revised as follows. Revenues Operating Recurring Profit attributable to Profit Profit owners of parent (in billion yen) Previous Forecast (Nov 4, 2021) Revised Forecast Change 2,000.0 2,200.0 200.0 220.0 265.0 45.0 710.0 930.0 220.0 710.0 930.0 220.0 Percentage Change (%) 10.00% 20.45% 30.99% 30.99% Assumptions for the forecast of consolidated financial results: Foreign Exchange Rate (for the fourth quarter) ¥113.00/US$ (for the full year) ¥111.48/US$ Bunker Oil Price (for the fourth quarter) US$565.00/MT (for the full year) US$519.53/MT *Bunker oil price is on average basis for all the major fuel grades including VLSFO. ② Dividends for the Fiscal Year ending March 31, 2022 We have designated the stable return of profits to shareholders as one of the most important management priorities, and the distribution of profits is decided after comprehensively taking into account the business forecast and other factors and generally targeting a consolidated payout ratio of 25%. At the same time, based on an ongoing minimum dividend that is not affected by the business results, an annual dividend of JPY20 per share has been set as the minimum dividend for the time being. As the interim dividend for the current fiscal year (year ending March 31, 2022), we issued a dividend of JPY200 per share. For the year-end dividend, we have increased the dividend by JPY400 per share compared to the previous forecast and currently plan to issue a dividend of JPY1,000 per share, for a full-year dividend of JPY1,200 per share. The issue of future share buybacks remains subject to consideration and it is planned to resolve the matter of final shareholder returns for the profits earned in FY2021 at the Board of Directors meeting in May after confirming the actual financial results. 7 2. Consolidated Financial Statements (1) Consolidated Balance Sheet (Millions of yen) As of March 31, 2021 As of December 31, 2021 Assets Current assets Cash and deposits Notes and operating accounts receivable-trade Contract assets Short-term investment securities Inventories Deferred and prepaid expenses Other Allowance for doubtful accounts Total current assets Non-current assets Vessels, property, plant and equipment Vessels, net Buildings and structures, net Aircraft, net Machinery, equipment, and vehicles, net Furniture and fixtures, net Land Construction in progress Other, net Total vessels, property, plant, and equipment Intangible assets Leasehold right Software Goodwill Other Total intangible assets Investments and other assets Investment securities Long-term loans receivable Net defined benefit asset Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Deferred assets Total assets 107,369 234,909 － 144 37,619 56,438 104,108 (2,101) 538,488 534,378 109,198 35,838 26,040 5,303 86,912 44,704 5,314 847,689 4,912 5,768 10,190 3,408 24,279 578,892 21,393 60,339 6,110 53,393 (5,350) 714,779 1,586,748 243 2,125,480 101,538 321,993 21,758 96 47,667 31,261 85,664 (3,079) 606,902 536,690 98,534 105,534 26,856 5,356 70,975 63,307 4,945 912,200 4,898 5,860 8,989 3,570 23,319 1,037,441 29,278 59,780 5,939 53,542 (5,370) 1,180,611 2,116,131 282 2,723,315 8 As of March 31, 2021 As of December 31, 2021 (Millions of yen) 168,690 25,000 161,045 － 19,477 14,390 － 14,063 366 170 14,364 3 124,691 542,262 107,000 560,913 77,707 64,718 16,697 979 551 14,595 52,071 927 19,645 915,805 1,458,068 144,319 44,214 444,801 (3,381) 629,954 22,004 (29,187) (11,365) 13,927 (4,621) 42,078 667,411 2,125,480 Liabilities Current liabilities Notes and operating accounts payable – trade Current portion of bonds payable Short-term loans payable Commercial papers Leases liabilities Income taxes payable Contract liabilities Provision for bonuses Provision for directors’ bonuses Provision for stock payment Provision for losses related to contracts Provision for related to business restructuring Other Total current liabilities Non-current liabilities Bonds payable Long-term loans payable Leases liabilities Deferred tax liabilities Net defined benefit liability Provision for directors’ retirement benefits Provision for stock payment Provision for periodic dry docking of vessels Provision for losses related to contracts Provision for related to business restructuring Other Total non-current liabilities Total liabilities Equity Shareholders’ capital Common stock Capital surplus Retained earnings Treasury stock Total shareholders’ capital Accumulated other comprehensive income (loss) Unrealized gain (loss) on available-for-sale securities Deferred gain (loss) on hedges Foreign currency translation adjustments Remeasurements of defined benefit plans Total accumulated other comprehensive income (loss) Non-controlling interests Total equity Total liabilities and equity 9 203,587 30,000 158,094 25,000 18,932 19,932 38,837 10,569 316 1,093 1,839 3 90,310 598,516 97,000 462,424 76,019 65,227 16,204 791 － 15,564 28,152 658 14,964 777,007 1,375,524 144,319 44,200 1,079,557 (3,406) 1,264,671 24,939 (21,201) 25,975 11,894 41,607 41,511 1,347,791 2,723,315 (2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income (Consolidated Statement of Income) (Millions of yen) Nine months ended December 31, 2020 Nine months ended December 31, 2021 Revenues Cost and expenses Gross profit Selling, general and administrative expenses Operating profit Non-operating income Interest income Dividend income Equity in earnings of unconsolidated subsidiaries and affiliates Foreign exchange gains Other Total non-operating income Non-operating expenses Interest expenses Foreign exchange losses Derivative losses Other Total non-operating expenses Recurring profit Extraordinary income Gain on sales of non-current assets Gain on sale of shares of subsidiaries and associates Other Total extraordinary income Extraordinary losses Loss on sales of non-current assets Provision for losses related to contracts Loss on cancellation of leased aircrafts Other Total extraordinary losses Profit before income taxes Total income taxes Profit Profit attributable to non-controlling interests Profit attributable to owners of parent 1,145,943 981,146 164,796 116,842 47,953 1,769 4,816 79,637 － 5,397 91,620 12,596 2,498 1,261 1,130 17,487 122,086 9,662 96 3,870 13,630 442 53,663 － 16,788 70,894 64,822 9,084 55,737 3,375 52,362 1,675,958 1,345,293 330,665 132,672 197,992 1,511 5,590 513,893 4,999 3,274 529,269 9,456 － 16,696 2,781 28,933 698,327 13,274 29,216 2,075 44,565 44 － 8,048 6,611 14,704 728,188 29,947 698,240 6,024 692,216 10 (Consolidated Statement of Comprehensive Income) (Millions of yen) Nine months ended December 31, 2020 Nine months ended December 31, 2021 Profit Other comprehensive income Unrealized gain (loss) on available-for-sale securities Deferred gain (loss) on hedges Foreign currency translation adjustments Remeasurements of defined benefit plans Share of other comprehensive income of associates accounted for using equity method Total other comprehensive income Comprehensive income (Breakdown) Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests 55,737 4,148 186 3,121 (1,007) (13,031) (6,582) 49,155 45,602 3,552 698,240 2,970 3,862 910 (2,106) 40,573 46,210 744,451 738,445 6,005 11 (3) Notes Regarding Consolidated Financial Statements (Notes Regarding Going Concern Assumption) The second quarter of this fiscal year (April 1, 2021 – December 31, 2021) Not applicable Not applicable (Notes in the Event of Significant Changes in Shareholders’ Capital) The second quarter of this fiscal year (April 1, 2021 – December 31, 2021) (Changes in Accounting Policies Due to Revisions of Accounting Standards) (Adoption of the Accounting Standard for Revenue Recognition) The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29 issued on March 31, 2020; hereinafter referred to as “Revenue Recognition Accounting Standard”) has been adopted from the start of the first quarter of the current consolidated fiscal year, and when control of the promised goods or service transfers to the customer, the expected monetary compensation received in return is recognized as revenue. In accordance with the transitional arrangements set forth in the proviso of Article 84 of the Revenue Recognition Accounting Standard, retained earnings at the start of the first quarter of the current consolidated fiscal year has been adjusted to reflect the cumulative impact assuming the accounting standard is retroactively adopted prior to the start of the first quarter of the current consolidated fiscal year, and the new accounting policy has been applied from the relevant starting balances at the beginning of the accounting period. As a result, compared to the previous accounting policy, concerning the starting balances at the beginning of the first quarter of the current consolidated fiscal year, mainly notes and operating accounts receivable- trade increased by 33,600 million yen, contract assets increased by 9,622 million yen, notes and operating accounts payable- trade increased by 5,991 million yen, contract liabilities increased by 24,640 million yen, retained earnings increased by 6,467 million yen, deferred and prepaid expenses decreased by 35,147 million yen and other under current liabilities decreased by 30,521 million yen. Also, during the cumulative period through the end of the third quarter of the current consolidated fiscal year, revenue increased by 23,084 million yen, cost and expenses increased by 12,998 million yen, operating profit increased by 10,085 million yen and recurring profit and profit before income taxes each increased by 9,591 million yen. During the third quarter of the current consolidated fiscal year, notes and operating accounts receivable- trade increased by 48,155 million yen, contract assets increased by 12,371 million yen, notes and operating accounts payable- trade increased by 6,336 million yen, contract liabilities increased by 36,962 million yen, deferred and prepaid expenses decreased by 53,643 million yen and other under current liabilities decreased by 53,868 million yen. (Adoption of the Accounting Standard for Fair Value Measurement) The Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30 issued on July 4, 2019; hereinafter “Fair Value Accounting Standard”) has been applied from the start of the first quarter of the current consolidated fiscal year, and in accordance with the transitional arrangements set forth in Article 12 19 of the Fair Value Accounting Standard and Article 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10 issued on July 4, 2019), the new accounting policy set forth in the Fair Value Accounting Standard has been permanently adopted. As a result of this change, from the first quarter of the current consolidated fiscal year, the method used to determine the fair value of other short-term investment securities with a market value has been revised from the average market value during the one month prior to the final day of the accounting period to the market value on the final day of the accounting period. 13 (Segment Information) Ⅰ. Nine months ended December 31, 2020 (April 1, 2020 – December 31, 2020) Revenues and income or loss by reportable segment Bulk Shipping Logistics Real Estate Other Total Adjustment Consolidated (*1) Total (*2) Others (In million yen) Liner & Logistics Air Cargo Transportation Liner Trade 123,381 82,491 386,529 493,265 4,546 55,728 1,145,943 – 1,145,943 3,141 5,384 1,113 133 631 35,172 45,578 (45,578) – 126,523 87,875 387,643 493,398 5,178 90,900 1,191,521 (45,578) 1,145,943 68,489 24,685 17,487 14,149 2,051 (1,418) 125,445 (3,358) 122,086 1. Adjustments of segment income (loss) are internal exchanges or transfer to other amount among segments 49 million yen and other corporate expenses – 3,407 million yen. The general and administrative expenses and non-operating expenses which do not belong to any single segment are treated as other corporate expenses. 2. Segment income (loss) is adjusted on recurring profit on the quarterly consolidated statement of income. 3. On April 1, 2021, “Global Logistics” has been renamed to “Liner & Logistics”. Ⅱ. Nine months ended December 31, 2021 (April 1, 2021 – December 31, 2021) 1. Revenues and income or loss by reportable segment Bulk Shipping Logistics Real Estate Other Total Adjustment Consolidated (*1) Total (*2) Others (In million yen) Liner & Logistics Air Cargo Transportation Liner Trade 137,632 134,113 611,782 724,391 3,229 64,808 1,675,958 – 1,675,958 3,433 7,509 1,536 218 111 53,484 66,293 (66,293) – 141,065 141,623 613,319 724,609 3,340 118,293 1,742,252 (66,293) 1,675,958 504,447 56,411 45,692 93,956 1,684 (1,135) 701,056 (2,728) 698,327 1. Adjustments of segment income (loss) are internal exchanges or transfer to other amount among segments 45 million yen and other corporate expenses – 2,773 million yen. The general and administrative expenses and non-operating expenses which do not belong to any single segment are treated as other corporate expenses. 2. Segment income (loss) is adjusted on recurring profit on the quarterly consolidated statement of income. 3. On April 1, 2021, “Global Logistics” has been renamed to “Liner & Logistics”. 1. Notes Regarding Changes in Reportable Segments (Adoption of the Accounting Standard for Revenue Recognition) In accordance with the Changes in Accounting Policies stated above, the Revenue Recognition Accounting Standard has been adopted from the start of the first quarter of the current consolidated fiscal year, and because the accounting method for revenue recognition has been changed, the method used to measure profit or loss in each reportable segment has been similarly changed. As a result of these changes, the revenue to external customers through the third quarter of the current consolidated fiscal year increased by 30,091 million yen in the Bulk Shipping segment, and the segment income (loss) increased by 10,555 million yen in the Bulk Shipping segment. 14 Revenues (1) Revenues from customer (2) Inter-segment revenues Total Segment income (loss) (Notes) Revenues (1) Revenues from customer (2) Inter-segment revenues Total Segment income (loss) (Notes) 3. Other Information (1) Quarterly Operating Results Year ending March 31, 2022 Revenues Operating profit (loss) Recurring profit (loss) Profit (loss) attributable to owners of parent for the quarter Total assets Equity Year ended March 31, 2021 Revenues Operating profit (loss) Recurring profit (loss) Profit (loss) attributable to owners of parent for the quarter Total assets Equity Apr 1, 2021 – Jun 30, 2021 1Q 504,611 53,000 153,620 Jul 1, 2021 – Sep 30, 2021 2Q 546,769 64,932 243,626 Oct 1, 2021 – Dec 31, 2021 3Q 624,577 80,059 301,081 151,093 260,225 280,897 2,238,803 805,345 2,395,332 1,074,175 2,723,315 1,347,791 (In million yen) Jan 1, 2022 – Mar 31, 2022 4Q Apr 1, 2020 – Jun 30, 2020 1Q 361,170 8,947 16,591 Jul 1, 2020 – Sep 30, 2020 2Q 360,861 7,743 30,837 Oct 1, 2020 – Dec 31, 2020 3Q 423,911 31,262 74,657 (In million yen) Jan 1, 2021 – Mar 31, 2021 4Q 462,471 23,583 93,249 11,684 10,496 30,181 86,866 1,882,678 502,347 1,901,705 510,612 1,960,549 540,502 2,125,480 667,411 (Note) The above operating results (revenues, operating profit (loss), recurring profit (loss) and profit (loss) attributable to owners of parent) are based on the results for the first quarter and the cumulative results for the first six, nine and twelve months, and are computed by taking the difference between the two adjacent periods. (2) Foreign Exchange Rate Information Nine months ended December 31, 2020 Nine months ended December 31, 2021 Average exchange rate during the period Exchange rate at the end of the period ¥ 106.14/US$ ¥ 110.97/US$ ¥ 103.50/US$ ¥ 115.02/US$ Change Yen down ¥4.83/US$ Yen down ¥11.52/US$ Year ended March 31, 2021 ¥105.79/US$ ¥110.71/US$ (3) Balance of Interest-Bearing Debt Loans Corporate bonds Commercial papers Leases liabilities Total Year ended March 31, 2021 Nine months ended December 31, 2021 721,958 132,000 － 97,184 951,143 620,518 127,000 25,000 94,951 867,470 (In million yen) Change (101,439) (5,000) 25,000 (2,232) (83,672) 15