NS United Kaiun Kaisha : Consolidated Financial Results for the FY ended March 2023

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

April 28, 2023

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

Company name:	NS UNITED KAIUN KAISHA, LTD.
Listing:	Tokyo Stock Exchange (TSE) Prime Market
Securities code:	9110	URL: https://www.nsuship.co.jp
Representative:	Kazuo Tanimizu, President and Representative Director
Inquiries:	Katsutoshi Kobayashi, Group Leader, Finance and Accounting Group	Phone: [phone]

Scheduled date of annual general meeting of shareholders:	June 28, 2023
Scheduled date to commence dividend payments:	June 29, 2023
Scheduled date to file annual securities report:	June 28, 2023
Preparation of supplementary material on financial results:	Yes
Holding of financial results briefing:	No
	(Amounts are rounded to the nearest million yen.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(1) Consolidated Operating Results

(Million yen) (Percentages indicate year-on-year changes.)

	Revenues	Operating Income	Ordinary Income	Profit Attributable to
	Owners of Parent
Fiscal year ended March 31, 2023	250,825	28.0%	32,487	21.6%	33,444	25.7%	27,603	17.0%
Fiscal year ended March 31, 2022	195,941	41.5%	26,711	296.5%	26,606	380.9%	23,582	284.6%
(Reference) Comprehensive Income
For the fiscal year ended March 31, 2023: 27,702 million yen (10.0%)
For the fiscal year ended March 31, 2022: 25,190 million yen (269.1%)

(Yen)

Net Income per

Diluted Net

Return on

Return on

Ratio of

Ordinary

Operating

Income per

Share

Equity

Income to Total

Income to

Share

Assets

Revenues

Fiscal year ended March 31, 2023

1,171.29

-

21.6%

12.1%

13.0%

Fiscal year ended March 31, 2022

1,000.67

-

22.0%

9.8%

13.6%

(Reference)

Share of Profit of Entities Accounted for Using Equity Method

For the fiscal year ended March 31, 2023: 12 million yen

For the fiscal year ended March 31, 2022: 5 million yen

(2) Consolidated Financial Position

(Million yen)

Total Assets

Net Assets

Equity Ratio

Net Assets per Share

As of March 31, 2023

275,784

137,405

49.8%

5,830.65

As of March 31, 2022

274,871

118,189

43.0%

5,015.17

(Reference)

Equity

As of March 31, 2023: 137,405 million yen

As of March 31, 2022: 118,189 million yen

(3) Consolidated Cash Flows

				(Million yen)
	Cash Flows from	Cash Flows from	Cash Flows from	Cash and Cash
	Equivalents at End of
	Operating Activities	Investing Activities	Financing Activities
				Period
Fiscal year ended March 31, 2023	42,930	(1,958)	(32,392)	40,264
Fiscal year ended March 31, 2022	32,881	139	(29,915)	31,215

2. Cash Dividends

										(Yen)
				Annual Dividends per Share		Total Cash		Ratio of
			1st	2nd	3rd		For Full	Dividends	Payout Ratio	Dividends to
			Year-end	(Total)	(Consolidated)	Net Assets
			Quarter	Quarter	Quarter	Year
				(Million yen)		(Consolidated)
	Fiscal year ended	-	95.00	-	190.00	285.00	6,716	28.5%	6.3%
	March 31, 2022
	Fiscal year ended	-	170.00	-	195.00	365.00	8,602	31.2%	6.7%
	March 31, 2023
	Fiscal year ending
	March 31, 2024	-	65.00	-	-	-		-
	(Forecast)
(Note)	The	Company's Articles of	Incorporation	stipulate that the second	quarter-end and the fiscal year-end are dividend
		record dates. At present, the forecast amount of year-end dividend and the amount of annual dividends for the
		fiscal year ending March 31, 2024 have yet to be determined.

3. Forecast of Consolidated Financial Results for Fiscal Year Ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

									(Million yen)
						(Percentages indicate year-on-year changes.)
	Revenues	Operating Income	Ordinary Income	Profit Attributable	Net Income per
	to Owners of Parent	Share
First half	89,000	(32.0)%	7,400	(64.2)%	6,500	(73.1)%	4,900	(74.8)%	207.93
For full year	179,000	(28.6)%	14,700	(54.8)%	13,200	(60.5)%	11,000	(60.1)%	466.77

Notes:
(1)	Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in None
	change in scope of consolidation):

1. Changes in accounting policies, changes in accounting estimates, and restatement

1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

ii.	Changes in accounting policies due to other reasons:	None
iii.	Changes in accounting estimates:	None
iv.	Restatement:	None

1. Number of issued shares (common shares)
   i. Total number of issued shares at the end of the period (including treasury shares)

As of March 31, 2023:	23,970,679 shares
As of March 31, 2022:	23,970,679 shares

1. Number of treasury shares at the end of the period

As of March 31, 2023:

404,688 shares

As of March 31, 2022:

404,351 shares

1. Average number of shares outstanding during the period: Fiscal year ended March 31, 2023: 23,566,186 shares Fiscal year ended March 31, 2022: 23,566,487 shares

[Reference] Overview of Non-consolidated Financial Results

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

(1) Non-consolidated Operating Results

										(Million yen)
								(Percentages indicate year-on-year changes.)
		Revenues		Operating Income	Ordinary Income	Net Income
Fiscal year ended March 31, 2023	224,381	30.0%	31,335	37.2%	40,145	30.3%	32,390	18.0%
Fiscal year ended March 31, 2022	172,556	46.2%	22,834	395.4%	30,807	314.0%	27,461	519.0%
		Net Income per	Diluted Net
		Income per
		Share (Yen)
		Share (Yen)
Fiscal year ended March 31, 2023		1,374.44			-
Fiscal year ended March 31, 2022		1,165.25			-
(2) Non-consolidated Financial Position								(Million yen)
		Total Assets		Net Assets	Equity Ratio	Net Assets per Share
As of March 31, 2023			175,900		126,387		71.9%		5,363.12
As of March 31, 2022			159,114		102,636		64.5%		4,355.22
(Reference) Equity

As of March 31, 2023: 126,387 million yen

As of March 31, 2022: 102,636 million yen

• Financial results reports are outside the scope of audit by certified public accountants or an audit corporation.
• Proper use of financial results forecast and other special matters
  The forward-looking statements including the financial results forecast contained herein are based on information currently available to the Company, as well as certain assumptions deemed reasonable by the Company. As such, the Company does not intend to guarantee the achievement of the forecast. In addition, actual results may differ significantly from the forecast due to various factors. For preconditions for the financial results forecast and precautions when using the financial results forecast, please see "Overview of Operating Results, etc." on page 2 of the attachments.
  (Supplementary material on financial results)
  The supplementary material on financial results will be posted on the Company's website on Friday, April 28, 2023.

Table of Contents - Attachments
1. Overview of Operating Results, etc. ...............................................................................................................2
(1)	Overview of Operating Results for the Fiscal Year under Review	2
(2)	Overview of Financial Position for the Fiscal Year under Review	3
(3)	Basic Policy on Profit Distribution and Dividends for the Fiscal Year under Review
and for the Next Fiscal Year	4
2. Status of the Group	4
3. Basic Policy on Selection of Accounting Standards	7
4. Consolidated Financial Statements and Principal Notes	8
(1)	Consolidated Balance Sheets	8
(2)	Consolidated Statements of Income and Comprehensive Income	10
	Consolidated Statements of Income	10
	Consolidated Statements of Comprehensive Income	11
(3)	Consolidated Statements of Changes in Net Assets	12
(4)	Consolidated Statements of Cash Flows	14
(5)	Notes to Consolidated Financial Statements	15
	(Going Concern Assumption)	15
	(Segment Information)	15
	(Per Share Information)	18
	(Significant Subsequent Events)	18

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1. Overview of Operating Results, etc.

1. Overview of Operating Results for the Fiscal Year under Review

1. Overview of the fiscal year under review

(Million yen)

	Previous fiscal year	Fiscal year under review	Amount Change
	(from April 1, 2021	(from April 1, 2022
	(Percentage change)
	to March 31, 2022)	to March 31, 2023)
Revenues	195,941	250,825	54,885	(28.0%)
Operating Income	26,711	32,487	5,776	(21.6%)
Ordinary Income	26,606	33,444	6,837	(25.7%)
Profit Attributable to	23,582	27,603	4,020	(17.0%)
Owners of Parent
Exchange rate	111.50	134.67	23.17	(20.8%)
(￥/US$)
(12 month average)
Bunker price*
(US$/MT)	500	655	155	(31.0%)
(12 month average)

*Average price for all the major fuel grades including Very Low Sulfur Fuel Oil

Consolidated financial results for the fiscal year ended March 31, 2023 were as follows: revenues of 250,825 million yen (up 28.0% year on year), operating income of 32,487 million yen (up 21.6% year on year), ordinary income of 33,444 million yen (up 25.7% year on year), and profit attributable to owners of parent of 27,603 million yen (up 17.0% year on year).

During the fiscal year under review, the tempo of the global economy slowed owing to China's zero-COVID policy as well as increasing uncertainty due to inflation caused by high resource prices worldwide and a shift toward tighter monetary policy by various countries in response to the inflation. In these circumstances, the Company was able to achieve record profit for the second consecutive year, supported by stable earnings from long-term contracts and the progressive depreciation of the yen during the fiscal year under review.

In the international shipping business, although the dry bulk market was robust in the first half of the fiscal year under review, the market trended downward for all vessel types in the second half of the fiscal year under review, as the shipping tonnage supply-demand balance eased against the backdrop of the stagnant Chinese economy because of the zero-COVID policy and the elimination of demurrage, reflecting the relaxation of quarantine control concerning COVID-19 at ports. The cape-size bulk carrier (180,000 dwt) market was robust at the beginning of the fiscal year under review, reflecting expectations of a recovery of the global economy, with the average daily charter rate for the five major routes reaching the upper 30,000-dollar range by late May. However, the market softened from the summer onward because cargo movements became stagnant. Furthermore, even at the beginning of 2023 and thereafter when China's zero-COVID policy was lifted, the market remained sluggish because of a delay in shipments, coinciding with the rainy season in Brazil, where much iron ore is loaded. The market for Panamax and medium and small bulk carriers (20,000- 80,000 dwt) was robust in the first half of the fiscal year under review, reflecting increased ton-miles due to diversified patterns of coal transportation to Europe against the backdrop of the Russo-Ukrainian conflict and India's increased coal imports. However, the market softened in the second half, reflecting the easing of the shipping tonnage supply-demand balance caused by delays in grain shipments due to bad weather in South America, in addition to a decline in demand for coal and grains due to the slowdown of the Chinese economy. On the other hand, the market for VLGCs (large LPG carriers) remained firm, as an increase in LPG exports from the United States tightened the shipping tonnage supply- demand balance.

In the coastal shipping business, regarding steel-related cargo, whereas the shipping volume of steel products fell short of the initial targets because of a slowdown in automobile production due to prolonged semiconductor shortages, the

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