日本郵船（9101） – Notice of Dividend from Retained Earnings and Recording of Non-Operating Income in Non-Consolidated Financial Results

To whom it may concern: May 9, 2022 Company Name Nippon Yusen Kabushiki Kaisha Representative Contact Shuichiro Shimomura Hitoshi Nagasawa (Code No.: 9101 TSE Prime Market) General Manager, IR Group (TEL. +81 3-3284-5151) Notice of Dividend from Retained Earnings and Recording of Non-Operating Income in Non-Consolidated Financial Results for the Fiscal Year Ending March 31, 2022 Nippon Yusen Kabushiki Kaisha (hereafter “NYK Line”) informs that payment of dividends from retained earnings based on March 31, 2022 has been resolved at the Board of Directors meeting held on May 9, 2022. This will be proposed at the 135th Ordinary General Meeting of Shareholders scheduled on June 22, 2022. In addition, in the fourth quarter of the fiscal year ending March 31, 2022, non-operating income was recorded in the non-consolidated financial results. 1. Dividends from Retained Earnings （１）Dividend Fiscal year ending March 31, 2022 Dividend forecast (announced on February 3, 2022) Fiscal year ended March 31, 2021 Record date March 31, 2022 March 31, 2022 March 31, 2021 Dividend per share 1,250.00 yen 1,000.00 yen 180.00 yen Total dividend amount 211,935 million yen Effective date June 23, 2022 Dividend source Retained Earnings ― ― ― 30,520 million yen June 21, 2021 Retained Earnings （２）Reason NYK Line has designated the stable return of profits to shareholders as one of the most important management priorities, and generally targeting a dividend payout ratio of 25%, the profit distribution is decided after comprehensively taking into account the business forecast and other factors. At the same time, based on an ongoing minimum dividend that is not affected by the business results, an annual dividend of JPY 20.00 per share has been set as the minimum dividend for the time being. In addition to this basic policy, we considered a share buyback, but for the current fiscal year (year ending March 2022), we will only issue a dividend. The year-end dividend which was previously announced as JPY 1,000.00 per share was resolved as JPY 1,250.00 per share. As a result, a full-year dividend including the interim dividend of JPY 200.00 per share, will be JPY 1,450.00 per share. Above will be implemented subject to the resolution at the 135th Ordinary General Meeting of Shareholders scheduled on June 22, 2022. 2. Record of Non-Operating Income Following continuously strong performance in our consolidated subsidiary, Nippon Cargo Airlines Co., Ltd. (hereafter “NCA”) which operates air cargo transportation business, our loan to NCA has been evaluated by taking the improved financial position into account. As a result, a reversal of allowance for doubtful accounts of ¥61,444 million was recorded as non-operating income in the fourth quarter of the fiscal year ending March 31, 2022 in the non-consolidated financial results. on the consolidated financial results. This non-operating income is eliminated in the consolidated financial statements and therefore has no impact