Nippon Yusen Kabushiki Kaisha : Fiscal Highlights for the 1st Quarter, ended June 30, 2023

Consolidated Financial Results for Three Months Ended June 30, 2023 (Japanese GAAP) (Unaudited)

August 3, 2023

Nippon Yusen Kabushiki Kaisha (NYK Line)

Security 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]

Submit scheduled date of Quarterly Financial Report	August 10, 2023
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 Three Months Ended June 30, 2023 (April 1, 2023 to June 30, 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	%
Three months ended June 30, 2023	567,515	-15.7	47,103	-47.2	89,403	-76.3	73,490	-78.6
Three months ended June 30, 2022	673,050	33.4	89,174	68.3	377,726	145.9	343,377	127.3

(Note) Comprehensive income:

Three Months ended June 30, 2023: ¥201,059 million (-58.6%), Three Months ended June 30, 2022: ¥485,696 million (194.9%)

	Profit per share	Profit per share-fully diluted
	yen	yen
Three months ended June 30, 2023	144.62	-
Three months ended June 30, 2022	677.22	-

(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 ratio
	million yen	million yen	%
As of June 30, 2023	3,950,363	2,637,096	65.6
As of March 31, 2023	3,776,797	2,524,993	65.6

(Reference) Shareholders' equity: As of June 30, 2023: ¥2,590,915 million, As of March 31, 2023: ¥2,478,641 million

2. Dividends

			Dividend per share
Date of record	1st Quarter End	2nd Quarter End		3rd Quarter End	Year-end	Total
	yen	yen		yen	yen	yen
Year ended March 31, 2023	-	1,050.00		-	170.00	-
Year ending March 31, 2024	-
Year ending March 31, 2024		60.00		-	70.00	130.00
(Forecast)

(Note) Revision of forecast for dividends in this quarter: Yes

(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 "-".When taking into account the stock split, the interim dividend issued in the fiscal year ending March 31, 2023 was ¥350.00 for a full-year dividend of ¥520.00 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	1,150,000	-15.8	87,000	-46.7	132,500	-82.7	120,000	-83.0	236.14
ending September 30, 2023
Year ending March 31,2024	2,170,000	-17.1	146,000	-50.7	220,000	-80.2	220,000	-78.3	432.92
(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

1. Particular accounting methods used for preparation of quarterly consolidated financial statements: None
2. Changes in accounting policy, changes in accounting estimates, and restatements
   1. Changes in accounting policy in accordance with changes in accounting standard: None

2.	Changes other than No.1:			None
3.	Changes in accounting estimates:		None
4.	Restatements:			None
(4) Total issued shares (Ordinary shares)
1.	Total issued shares
As of June 30, 2023	510,165,294	As of March 31, 2023	510,165,294
(including treasury stock)
2.	Number of treasury stock	As of June 30, 2023	1,994,289	As of March 31, 2023	1,991,890
3.	Average number of shares
Three months ended	508,172,141	Three months ended	507,037,478
(cumulative quarterly period)	June 30, 2023	June 30, 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.

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

*Assumptions for the forecast of consolidated financial results and other particular issues Foreign exchange rate:

(for the second) ¥135.00/US$

(for third and fourth quarter) ¥130.00/US$ (for full year) ¥132.70/US$

Bunker oil price:

(for the second third and fourth quarter) US$615.50/MT (for full year) US$614.43/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 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/2023/)

Index of the Attachments

1. Qualitative Information on Quarterly Results ……………………………………………………………	2
(1) Review of Operating Results ………………………………………………………………………………	2
(2) Explanation of the Financial Position ……………………………………………………………………	5
(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

(Segment Information) …………………………………………………………………………………… 12

(Important Subsequent Event) …………………………………………………………………………… 13

3. Other Information …………………………………………………………………………………………… 15

(1) Quarterly Operating Results ……………………………………………………………………………… 15

(2) Foreign Exchange Rate Information ……………………………………………………………………… 15

(3) Balance of Interest-Bearing Debt ………………………………………………………………………… 15

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1. Qualitative Information on Quarterly Results

(1) Review of Operating Results

(In billion yen)

	Three months	Three months		Percentage
	ended June 30,	ended June 30,	Change
	Change
	2022	2023
Revenues	673.0	567.5	-105.5	-15.7%
Operating Profit	89.1	47.1	-42.0	-47.2%
Recurring Profit	377.7	89.4	-288.3	-76.3%
Profit attributable to owners	343.3	73.4	-269.8	-78.6%
of parent

In the first three months of the fiscal year ending March 31, 2024 (April 1, 2023 to June 30, 2023), consolidated revenues amounted to ¥567.5 billion (decreased by ¥105.5 billion compared to the first three months of the previous fiscal year), operating profit amounted to ¥47.1 billion (decreased by ¥42.0 billion), recurring profit amounted to ¥89.4 billion (decreased by ¥288.3 billion), profit attributable to owners of parent amounted to ¥73.4 billion (decreased by ¥269.8 billion).

Equity in earnings of unconsolidated subsidiaries and affiliates of ¥37.3 billion in non-operating income was recorded. Within this amount, equity in earnings of affiliates from OCEAN NETWORK EXPRESS PTE. LTD. (ONE), our equity-method affiliate, was ¥26.6 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 three months of the current and previous fiscal years are shown in the following tables.

	Three months ended	Three months ended	Change
	Jun 30, 2022	Jun 30, 2023
Average exchange rates	¥126.49/US$	¥135.81/US$	Yen down ¥9.32/US$
Average bunker oil prices	US$789.48/MT	US$611.22/MT	Price down US$178.26/MT

Note: Exchange rates and bunker oil prices are our internal figures.

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