Nippon Yusen Kabushiki Kaisha : Fiscal 2022 Financial Highlights

Consolidated Financial Results for the Year Ended March 31, 2023 (Japanese GAAP) (Unaudited)

May 9, 2023

Nippon Yusen Kabushiki Kaisha (NYK Line)

Securities Code:	9101
Listings:	Prime Market of Tokyo Stock Exchanges
URL:	https://www.nyk.com/english/
Head Office:	Tokyo, Japan
Representative:	Takaya Soga, President
Contact:	Yasuaki Okada, General Manager, IR Group
	Tel: [phone]

Ordinary General Meeting of Shareholders	June 21, 2023
Start scheduled date of paying Dividends	June 22, 2023
Submit scheduled date of Financial Report	June 21, 2023
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 Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)

1. Consolidated Operating Results

(Percentage figures show year on year changes)

	Revenues		Operating profit	Recurring profit	Profit attributable to
		owners of parent
	million yen	%	million yen	%	million yen	%	million yen	%
Year ended March 31, 2023	2,616,066	14.7	296,350	10.2	1,109,790	10.6	1,012,523	0.3
Year ended March 31, 2022	2,280,775	41.8	268,939	275.9	1,003,154	365.9	1,009,105	624.8

(Note) Comprehensive income:

Year ended March 31, 2023: ¥1,168,452 million (1.1%), Year ended March 31, 2022: ¥1,156,080 million (548.7%)

		Profit per		Profit per share	Recurring	Operating
	Profit per		ratio in
	share-fully		profit/	profit/
	share		shareholders'
	diluted		total assets	revenues
			equity
	yen		yen	%	%	%
Year ended March 31, 2023	1,993.71		-	48.3	32.4	11.3
Year ended March 31, 2022	1,991.25		-	86.0	38.5	11.8

(Reference) Equity in earnings of unconsolidated subsidiaries and affiliates:

Year ended March 31, 2023: ¥811,957 million, Year ended March 31, 2022: ¥742,645 million

(Note) A 3-for-1 common stock split was conducted with an effective date of October 1, 2022. "Profit per share" and "Profit per share-fully diluted" have been calculated assuming the stock split was conducted at the beginning of the prior consolidated fiscal year.

(2) Consolidated Financial Position

	Total assets	Equity	Shareholders'	Equity
	equity ratio	per share
	million yen	million yen	%	yen
Year ended March 31, 2023	3,776,797	2,524,993	65.6	4,877.55
Year ended March 31, 2022	3,080,023	1,759,073	55.6	3,381.43

(Reference) Shareholders' equity :

Year ended March 31, 2023: ¥2,478,641 million, Year ended March 31, 2022: ¥1,713,713 million

(Note) A 3-for-1 common stock split was conducted with an effective date of October 1, 2022. "Equity per share" have been calculated assuming the stock split was conducted at the beginning of the prior consolidated fiscal year.

(3) Cash Flow

	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at end
	operating activities	investing activities	financing activities
	of period
	million yen	million yen	million yen	million yen
Year ended March 31, 2023	824,853	(252,964)	(581,203)	196,231
Year ended March 31, 2022	507,762	(148,571)	(237,535)	226,694

2. Dividends

		Dividend per share		Total dividends	Payout ratio	Dividends/
						Equity
Date of record	1st	2nd	3rd	Year-end	Full year	paid (Full year)	(Consolidated)
Quarter	Quarter	Quarter	(Consolidated)
	yen	yen	yen	yen	yen	million yen	%	%
Year ended March 31, 2022	-	200.00	-	1,250.00	1,450.00	245,845	24.3	20.9
Year ended March 31, 2023	-	1,050.00	-	170.00	-	264,489	26.1	12.6
Year ending March 31, 2024	-	60.00	-	60.00	120.00		30.5
(Forecast)

(Note)

A 3-for-1 common stock split was conducted with an effective date of October 1, 2022. The (forecast) year-end dividend per share for the fiscal year ending March 31, 2023 indicated above is based on the number of shares after the stock split, and the full-year dividend is stated as "-". Based on the number of shares prior to the stock split, the (forecast) year-end dividend for the fiscal year March 31, 2023 would be ¥510.00 for a full-year dividend of ¥1,560.00 per share.

3. Consolidated Financial Results Forecast for the Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024) (Percentage figures show year on year changes)

				Operating	Recurring		Profit		Profit per
		Revenues		attributable to
		profit		profit		share
						owners of parent
		million yen	%	million yen	%	million yen	%	million yen	%	yen
Cumulative second quarter	1,210,000	-11.4	75,500	-53.8	112,500	-85.3	115,000	-83.7	226.56
ending September 30, 2023
Year ending March 31, 2024	2,300,000	-12.1	128,000	-56.8	200,000	-82.0	200,000	-80.2	393.81
4. Notes
(1) Changes of important subsidiaries in the period: None
(Changes in specified subsidiaries involving change in consolidation scope)
New: None	Exclusion: None

1. 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:			None
3.	Changes in accounting estimates:		None
4.	Restatements:			None
(3) Total issued shares (Ordinary shares)
1.	Total issued shares
As of March 31, 2023	510,165,294	As of March 31, 2022	510,165,294
(including treasury stock)
2.	Number of treasury stock	As of March 31, 2023	1,991,890	As of March 31, 2022	3,363,537
3.	Average number of shares	Year ended	507,858,260	Year ended	506,769,013
March 31, 2023	March 31, 2022

A 3-for-1 common stock split was conducted with an effective date of October 1, 2022. "Total issued shares", "Number of treasury stock" and "Average number of shares" have been calculated assuming the stock split was conducted at the beginning of the prior consolidated fiscal year.

(Reference)

Non-consolidated Financial Results for the Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)

(1) Operating Results

(Percentage figures show year on year changes)

	Revenues	Operating profit	Recurring Profit	Profit
	million yen	%	million yen	%		million yen	%	million yen	%
Year ended March 31, 2023	983,554	26.5	87,031	11.2		628,651	44.8	600,344	23.0
Year ended March 31, 2022	777,239	38.4	78,249	-		434,140	377.3	488,220	-
	Profit		Profit per
	per share	share-fully diluted
		yen		yen
Year ended March 31, 2023		1,182.09		-
Year ended March 31, 2022		963.39		-

(Note) A 3-for-1 common stock split was conducted with an effective date of October 1, 2022. "Profit per share" and "Profit per share-fully diluted" have been calculated assuming the stock split was conducted at the beginning of the previous fiscal year.

(2) Financial Position

	Total assets	Equity	Shareholders'	Equity
	equity ratio	per share
	million yen	million yen	%	yen
Year ended March 31, 2023	1,726,420	884,221	51.2	1,739.97
Year ended March 31, 2022	1,592,888	678,184	42.6	1,338.15

(Reference) Shareholders' equity:

Year ended March 31, 2023: ¥884,221 million, Year ended March 31, 2022: ¥678,184 million

(Note) A 3-for-1 common stock split was conducted with an effective date of October 1, 2022. "Equity per share" have been calculated assuming the stock split was conducted at the beginning of the previous fiscal year.

*This financial report is not subject to the audit procedure.

*Assumption for the forecast of consolidated financial results for the year ending March 31, 2024 Foreign exchange rate: (full year) ¥130.00/US$

Bunker oil price: (full year) US$660.00/MT

*Bunker oil price is 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 the forecast will be realized. Actual results may differ from the forecast as a result of various factors.

Refer to page 2-7 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/2022/)

Index of the Attachments

1. Review of Operating Results and Financial Position ……………………………………………………	2
(1) Review of Operating Results ………………………………………………………………………………	2
(2) Review of Change in Financial Position …………………………………………………………………	5
(3) Cash Flows …………………………………………………………………………………………………	5
(4) Consolidated Earnings Outlook ……………………………………………………………………………	6
(5) Basic Policy Concerning Dividends and Planned Dividend Payments ………………………………	7
2. Basic Approach to Selection of Accounting Standards …………………………………………………	7
3. Consolidated Financial Statements ………………………………………………………………………	8
(1) Consolidated Balance Sheet ………………………………………………………………………………	8
(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ……	10

(3) Consolidated Statement of Changes in Equity ………………………………………………………… 12

(4) Consolidated Statement of Cash Flows ………………………………………………………………… 14

(5) Explanatory Notes to Consolidated Financial Statements …………………………………………… 16

(Notes Regarding Going Concern Assumption) ………………………………………………………… 16

(Changes in Accounting Policies Due to Revisions of Accounting Standards) ……………………… 16

(Segment and Other Information) ………………………………………………………………………… 17

(Information per Share) …………………………………………………………………………………… 21

(Important Subsequent Event) …………………………………………………………………………… 21

4. Other Information …………………………………………………………………………………………… 22

(1) Quarterly Operating Results ……………………………………………………………………………… 22

(2) Change in Number of NYK Fleet ………………………………………………………………………… 23

(3) Fleet in Operation as of Fiscal Year-End ………………………………………………………………… 24

(4) Vessels under Construction as of Fiscal Year-End …………………………………………………… 25

(5) Aircraft in Operation as of Fiscal Year-End ……………………………………………………………… 25

(6) Balance of Interest-Bearing Debt as of Fiscal Year-End ……………………………………………… 25

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1. Review of Operating Results and Financial Position

(1) Review of Operating Results

1) Operating Results for the Fiscal Year 2022

Financial results for the consolidated fiscal accounting year are as follows:

								(In billion yen)
		Year Ended	Year Ended	Change	Percentage
		March 31, 2022	March 31, 2023	Change
Revenues	2,280.7	2,616.0		335.2	14.7%
Cost and expenses	1,827.3	2,105.9		278.5	15.2%
Selling, general and	184.4	213.7		29.3	15.9%
administrative expenses
Operating Profit	268.9	296.3		27.4	10.2%
Recurring Profit	1,003.1	1,109.7		106.6	10.6%
Profit attributable to owners of	1,009.1	1,012.5		3.4	0.3%
parent
Average exchange rates		¥112.06/US$		¥135.07/US$		Yen down ¥23.01/US$
Exchange rates at the end		¥122.39/US$		¥133.53/US$		Yen down ¥11.14/US$
of period
Average bunker oil prices		US$531.19/MT		US$760.72/MT		Price up US$229.53/MT

Overview

For the current consolidated fiscal year, revenues amounted to ¥2,616.0 billion, operating profit amounted to ¥296.3 billion, recurring profit amounted to ¥1,109.7 billion and profit attributable to owners of parent amounted to ¥1,012.5 billion. Equity in earnings of unconsolidated subsidiaries and affiliates of ¥811.9 billion was recorded as non-operating income. Within this amount, the amount of equity in earnings of affiliates from OCEAN NETWORK EXPRESS PTE. LTD. (ONE) was ¥770.3 billion for the current fiscal year.

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