Iino Kaiun Kaisha : Supplementary Report for Financial Results of FY2023

May 7, 2024

IINO Kaiun Kaisha, Ltd.

Supplementary Report for Financial Results of FY2023

IINO Kaiun Kaisha Ltd. (IINO Lines) today announced financial results for FY2023. In addition to the summarized consolidated financial report, we have been releasing a supplemental financial report that provides more detailed information not only on financial results and forecasts, but also ESG initiatives, shipping and real estate market conditions, and other information in an easy-to-understand slide format. Contents are provided on the following pages.

Page.	Table of Contents	Main contents
P03-05	Corporate and Business Overview	Corporate Overview / Business Overview New!
P06-09	FY2023 Results	Financial Highlights / Consolidated and Segment Summary / Operating Profit Breakdown (YoY)
		Financial Forecasts, Sensitivity of Exchange Rate, Spot Contracts Ratio / Operating Profit
P10-12	Financial Forecast for FY2024
		Breakdown (Actual vs. Forecast)
		Market Outlook for ChemicalTankers, Large Gas (LPG) Carriers, Dry Bulk Carriers and Domestic
P13-18	Market Forecasts for FY2024
		Office Leasing(Central Tokyo)
		Status of Achievement of Major Numerical Targets (KPIs) New! / Numerical Financial Targets /
	Mid-term Management Plan
P19-25		Shareholder Return Policy / Sustainability and Business Topics / Initiatives for ESG and DX
	(FY2023-FY2025)
		Promotion
P26-29	Business Performance	Performance of Revenue and Profit / Equity Ratio, Stock Price and Consolidated Cash Flow
P30-32	Facility Status/ Investment Plan	Buildings for Lease / Tonnage in Operation / Investment Plan
		Market Trends (Chemical Tankers, Bunker Prices, Palm Oil, Large Gas (LPG) Carriers, Dry Bulk
P33-38	Shipping Market
		Carriers), Seaborne Trade Forecast and Existing Vessels and Orderbook
		Rent and Vacancy Rate Trends including Vacancy Rate of the Company's owned Buildings and
P39-40	Real Estate Market
		Market Outlook

<_today27_s disclosure="">＞

Other financial results publications are available in the IR library on the company's website.

https://www.iino.co.jp/kaiun/english/ir/ir_library.html

Glossary (Shipping Industry)

Glossary of terms used to explain contract forms specific to the shipping industry and other words that are difficult to understand

Market Data (Shipping Market) released on April 15

Graphs for chemical tankers, large gas (LPG) carriers and dry bulk carriers, which are affected by market conditions, are updated monthly

(other oil tankers, large gas (LNG) carriers, and dedicated carriers are composed only of medium- and long-term contracts, which are not

affected by market conditions)

We will continue to strive to provide our stakeholders with easy-to-understand information. If you have any questions or comments, please do not hesitate to contact us.

End

(Contact : Stakeholder Relations Department / Phone: [phone] /Inquiry Form)

IINO KAIUN KAISHA, LTD.

Tokyo Stock Exchange Prime Market (Stock Code: 9119)

Supplementary Report for Financial Results of FY2023

Table of Contents

P. 03Corporate and Business Overview

P. 06FY2023 Results

P. 10Financial Forecasts for FY2024

P. 13Market Forecast for FY2024

P. 19Mid-term Management Plan (FY2023-2025)

P. 26Reference Information

-Business Performance P.26/ Status of Facilities & Investment Plan P.30-Shipping Market P.33/ Real Estate Market P.39

The Adventure to Our Sustainable Future

2

Corporate and

Business Overview

3

Corporate Overview - Basic Information About IINO

1. Established
2. Capital
3. Business
4. Stock Exchange Listings
5. Percentage of ownership by shareholder category

(As of March 31, 2024)

July 1899

13,091,775 thousand yen

Oceangoing Shipping business, Domestic / Short-sea Shipping business, Real Estate business

Tokyo (Prime Market)		1.8%
			15.5%			20.6%
		Individuals and others
		Financial institutions	22.7%
		Other corporations
		Foreign investors

Financial instruments dealers	39.5%

Corporate Philosophy

Corporate Philosophy：IINO PURPOSE

IINO PURPOSE and the Wishes We Serve

What we transport by ships is more than just goods. We also carry people's wishes entrusted to us.

By safely delivering these cargoes and the wishes they encapsulate, we bring peace of mind and build a brighter future to people's lives.

What we offer in buildings is more than just space.

We create secure and comfortable environments where people come together and new wishes are born.

By facilitating such sharing of wishes, a more creative future unfolds before us.

We remain steadfast in our commitment to safety, and through always putting safety first, we will

continue to connect the wishes of people around the world, building an abundant future.

6. Office Locations	Head Office:		Tokyo
	Representative Offices:	Shanghai
	Overseas Subsidiaries:	Singapore, Dubai, London, Houston
	Ship Management:	Busan, Manila
7. Employees	194 persons as non-consolidated (140 on shore, 54 at sea)
(As of March 31, 2024)	677 persons as consolidated
Assets（Balance sheet Management）
Total assets： 293.23 billion yen	Maintain the ratio of non-current assets in the Shipping
Business to Real Estate Business at 1 to 1.
					(Billion yen)
Net assets ： 132.13 billion yen
Net assets per share：1,248.25 yen
	（As of March 31, 2024）	FY2022	FY2023

Formulated "Management Policy : IINO COMMITMENT" and "Code of Conduct : IINO STYLE" based on Corporate Philosophy.

History（Start Year of Each Business ）

1929

1960

1963

1970

1985

1993

1997

2020

Oil Tanker：Delivery of "TAKATORI MARU No.1"

LNG oceangoing tanker：Participated in the Qatar LNG Project

Domestic LPG carrier：Delivery of "TOHO MARU"		Overseas	Real Estate: Acquisition of
		"BRACTON	HOUSE" in London, UK.

LPG oceangoing tanker： Delivery of " TOYOSU MARU"

Photo studios: Hiroo Studio began operations

Dry bulk carrier：Delivery of "ZENKOREN MARU NO.5"

Chemical tanker：Concluded Contracts of affreightment with SABIC

Real Estate：Completion of the former IINO Building (with IINO Hall )

The history of IINO LINES can be traced back to 1899, when the founder Torakichi Iino began transporting coal by barge at Maizuru Port, Kyoto. Despite the curtailment of the business during the Second World War and as a result of the major consolidation of Japan's shipping industry in 1964, the IINO Group has contributed to people's lives, industry, and society through two distinct businesses: the Shipping Business and the Real Estate Business.

The Adventure to Our Sustainable Future

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Business overview - IINO MODEL (business model for both shipping and real estate)

Corporate Philosophy：IINO PURPOSE

"Connecting Wishes. Building a Brighter Future. Always Safety First."

Doing Business to Realize Our Corporate Philosophy

The company's core businesses are Shipping business (Oceangoing and domestic and Short-sea) and Real Estate. IINO's business model (IINO MODEL) is based on the two pillars of Shipping, which grows in tandem with the

expansion of the global economy but is subject to high market volatility, and the Real Estate business, which is relatively little change in market fluctuations and secures stable revenues.

* Revenue /Operating profit composition are figures as of FY2023 Number of vessels/buildings, etc. are figures as of March 31, 2024

Shipping

Oceangoing

• Chemical tanker

Percentage of net sales 83.3%

Operating profit ratio 79.4％

Number of vessels：36

Strengths : Top share in Middle East-Far East trade Main forms of contract：Spot, COA, Medium- and Long- term Contract

Real Estate Percentage of net sales 9.4% Operating profit ratio 18.4％

Office Leasing Business

• Tokyo（central）

Number of buildings ：6

Strengths：High-spec building in good location

A type of ship that combines medium- and long-term contracts with contracts* that are affected by market in the short term.

*Spot contracts, etc.

Only medium- and long-term contracts

• Dry bulk carrier

Number of vessels：22

Strengths : Balanced fleet including dedicated vessels Main forms of contract： Spot, COA, Medium- and Long- term Contract

• Large gas carrier Number of vessels：9

			(Large LPG:7, Large LNG:1, Medium and small ammonia:1)
			Strengths: Long-term relationships of trust with
			domestic and foreign charterers
			Main forms of contract：Medium-andLong-term Contract
◼ Oil tanker	(One VLGC has a market-linked contract)
			Number of vessels ：4
			Strengths：Safe operation based on many years of
			crude oil transportation
			Main forms of contract：Medium-andLong-term contract

Domestic and Short-sea	Percentage of net sales 7.3%
◼ Small gas carrier	Operating profit ratio 2.1％

Synergy

Mainly medium- and long-term contracts

*Real estate related businesses have spot contracts but no significant impact on financial results.

• Overseas(UK・USA）

Number of buildings ： 2 in UK, 2 in the US

(under construction)

Strengths：Developed based on knowledge cultivated in domestic office business

Real Estate Related Businesses

• Hall business

Hall：500 seats

Conference Center：1 main room/ 4 smaller rooms

Strengths : Quality service tailored to customer needs

• Photo studio

Number of studios ：2

Strengths ：Leading commercial photography studios for a quarter of a century.

Number of vessels ：25

Strengths： Stable earnings from medium- to long- term contracts

Main forms of contract：Medium-andLong-term contract

The environment is conducive to the creation of cross-functional interactions, and synergies are expected to be generated.

The company is pursuing its strategy with an awareness of improving capital profitability and creating synergies among its businesses.

The Adventure to Our Sustainable Future

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FY2023 Results

6

Financial Highlights

FY2023 Results: Decrease in net sales and net income except for ordinary profit YoY, but at the levels following the highest profits in the previous fiscal year

(Billion Yen)

FY2024 Full-year forecasts:

Although there are downside risks due to the impact of the Red Sea detour on ship allocation plans and tensions in the Middle East, strong market conditions are expected to continue for chemical tankers, while the market for large LPG carriers is expected to soften from the conditions seen in FY 2023.

In the real estate business, stable earnings are expected to be secured as office floor occupancy rate is expected to remain strong.

(Billion Yen)

Net Sales	Operating	Ordinary	Net
Profit	Profit	Income

FY2022*

141.3

20.0

20.9

23.4

	Net sales	Operating	Ordinary	Net Income
		Profit	Profit
1H	69.0	78.0	69.0	76.0
2H	136.0	15.4	14.5	14.1
FY2023 Results	▲1.4%	▲19.2%	▲33.5%	▲28.6%
VS FY2024 Forecast

Go to P11 for details

FY2023

138.0

19.1

21.8

19.8

Year on Year

▲2.4%

▲4.8%

+4.5％

▲15.5%

Dividend forecast for FY2024: Full-year dividend of 40 yen per share

			(Yen/share)
	Interim	Year-end	Total
FY2023 Results	25	31	56
FY2024 Forecast	20	20	40

For FY2023, the year-end dividend was raised by 4 yen from the announcement on 1/31, to an annual total dividend of 56 yen. Based on the current full-year earnings forecast and the Company's basic policy of continuing to pay dividends based on a payout ratio of 30%, the Company plans to pay an annual dividend of 40 yen.

*Results are retrospectively adjusted due to changes in accounting policy

(For details, please refer to page 18 of the Consolidated Financial Results For the Fiscal Year Ended March 31, 2024)

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Difference

▲5

▲11

▲16

Go to P22for details

Financial Results by Consolidated and Segments

Consolidated Financial Results

（Billion Yen）

Financial Results by Segments	（Billion Yen）

	FY2023	FY2022
Net Sales	138.0	141.3
Operating Profit	19.1	20.0
Ordinary Profit	21.8	20.9
Net Income	19.7	23.4
Exchange Rate (/$)	¥143.82	¥135.07
Bunker Price	$620	$802
(/MT)*
* Compliant fuel oil (Very Low Sulfur Fuel Oil)

Year on Year

Difference %

▲ 3.4	▲2.4%
▲ 1.0	▲4.8%

• 0.9 +4.5%

• 3.6 ▲15.5%

+8.75 -

• 182 -

	FY2023
Net Sales	138.0
Oceangoing Shipping	114.9
Short-sea / Domestic	10.1
Shipping
Real Estate	13.0
Operating Profit	19.1
Oceangoing Shipping	15.1
Short-sea / Domestic	0.4
Shipping
Real Estate	3.5

FY2022

141.3

118.0

10.5

12.9

20.0

15.6

0.6

3.8

Year on Year

Difference %

• 3.4 ▲2.4%
• 3.0 ▲2.6%
• 0.4 ▲3.7%
  0.0 +0.3%
• 1.0 ▲4.8%
• 0.5 ▲3.1%
• 0.2 ▲31.4%
• 0.3 ▲7.5%

The Adventure to Our Sustainable Future

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8

Operating Profit (FY2022 vs. FY2023)

Breakdown of Operating Profit Changes YoY	(Billion Yen)

(Billion Yen)

Oil Tanker

0.0

Chemical Tanker	▲1.1

Large Gas Carrier

+1.3

Dry Bulk Carrier	▲1.9

Real Estate

▲0.3

Other+1.0

Profits remained flat despite a decrease in operation caused by the sale of a vessel implemented in the previous fiscal year.

In addition to stable contracts of affreightment, we have secured profits exceeding initial expectations by proactively

taking in spot cargos, however, profits declined from the previous year.

We secured stable earnings mainly from existing medium- to long-term contracts. In addition, a market-linked vessel enjoyed favorable market conditions.

Although we secured profitability that exceeded initial forecasts and made efforts to efficiently allocate and operate vessels, profits declined due to market conditions.

Office floors continued to operate smoothly and maintained stable earnings, but repair and maintenance costs increased. In addition, we recorded an impairment loss of 2.1 billion yen on the real estate property we own in UK as an extraordinary loss.

Profit increased due to the impact of yen's depreciation and other factors.

Dry Bulk Carrier

				1
Chemical				Billion
Tanker	Oil Tanker	Yen
	Other
			Real Estate
				Large Gas
				Carrier

FY2022

FY2023

The Adventure to Our Sustainable Future	9