Iino Kaiun Kaisha : Transcript of the briefing and Q&A session on the presentation of financial results for FY2023 2Q
November 09, 2023
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November 10, 2023
IINO Kaiun Kaisha, Ltd.
Transcript of the briefing and Q&A session on the presentation
of financial results for FY2023 2Q
IINO Kaiun Kaisha, Ltd. (IINO Lines) is pleased to announce that we have distributed a transcript and Q&A session of the financial results briefing for the second quarter of FY2023 (ending March 31, 2024) held on Wednesday, November 1, 2023.
In FY2022, the situation in Ukraine changed the transport pattern, which led to an increase in demand for chemical products to Europe and higher freight rates towards the end of 2022. In particular, demand for CPP (naphtha, gasoline, jet fuel, kerosene) in Europe increased during the winter. This led to an increase in the product tanker market, which competes with chemical tankers, causing product tankers to leave the chemical tanker market and the chemical tanker market to increase. In addition, as energy prices rose, chemical plants in Europe were shut down and the flow of chemical products into Europe accelerated. In addition, the global trend towards decarbonization has led to a steady increase in long-distance transport, mainly biofuels, between Asia and Europe and between Asia and South America, tightening the supply/demandbalance for vessels in Asia. Market conditionsimproved rapidly in the second half of FY2022, resulting in an unprecedented increase in spot freight rates and a significant increase in revenues due to the effective allocation of vessels with our existing contracted cargoes. Market conditions are calm. Therefore, market conditions in the first half of the year were similar to the first half of FY2022 and this financial announcement shows similar figures. In addition, for the second half of fiscal 2023 and beyond, we have revised our full-year forecast based on the assumption that market conditions will remain at the level they were until the second quarter, although it will be difficult for market conditions to match the peak of last fiscal year due to the sluggish global economy, particularly in China and the US.
Q) You mentioned that the cost of utilities and repairs are rising in the real estate business,
but are you passing these cost increases on to tenants?
I will answer the question about utilities first. The largest portion of utilities is the electricity bill. While tenants pay for electricity in their own private areas, electricity in common areas of buildings owned by the Company, including the IINO Building, is covered by common area maintenance fees. As is customary, the building owner pays the electricity bill for the common areas. If there is a sudden increase in the electricity bill, we may discuss the matter with the tenant, but in principle we bear the increase. Repairs and maintenance costs are included in the management fee and made up a majority of the costs. Costs have increased due to the replacement of LED lighting in the IINO Building, which is more than 10 years old since its completion. As a result, the property business experienced a slight increase in costs and a decrease in income.
Q) I would like to know the occupancy rate of IINO Hall.
IINO Hall is divided into two sections: "IINO Hall" and "Conference room." Since the aftermath of the Covid-19, the occupancy rate has been gradually increasing due to an increase in entertainment and entertainment-related events. However, food and beverage party events remain sluggish and will take more time to recover to pre-Covid-19 levels.
I would like you to comment on takeover defense measures, considering your current thinking and the trends of other companies.
It has been a year since the last renewal; it is due to expire at the general meeting of shareholders in June 2025, and we will discuss whether to continue at the board of directors meetings and others, with an eye to the environment.
Iino Kaiun Kaisha Ltd. published this content on 10 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2023 13:56:40 UTC.
IINO KAIUN KAISHA, LTD. is a company primarily engaged in the shipping business. The Company operates through three business segments. The Overseas Shipping segment is engaged in the shipping, ship leasing, ship chartering and management, as well as ship brokerage business, the sale of ship equipment and the operation of ship agencies. The Coastal Shipping segment is engaged in the shipping, ship leasing, ship chartering and management. The Real Estate segment is engaged in the leasing and management of buildings, warehousing business and real estate related business.
IINO KAIUN KAISHA, LTD. 
