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Major Q & A

Q1: Please tell us the situation of negotiations for service contracts in containership Asia-Europe trades.

A1: We hear that renewing is running late for some contracts in Asia-Europe trades since January. For our company, the policy is to make decisions while gaining a clear view of conditions, and full-scale negotiations have not started yet.

Q2: Does the integration of Containership Business have any impact on negotiations for next term’s service contracts?

A2: Official negotiations have not started, and there is no specific impact that is worth mentioning now.

[Dry Bulk]
Q1: Please tell us the situation about renewal of long-term contracts in Dry Bulk Business.

A1: Although the market finally got out of the bottom, the environment of long-term contract renewing is surely severe  associated with the prolonged slump in spot contract market. Under such circumstances, our company is currently working on cost reduction through effects of business structural reform including arrangement of short period charters and disposing of unprofitable vessels.

Q1: In the estimates for Financial Year 2016, you said expenses related to the integration of Containership Business are included in other one-off losses. What are they, specifically?

A1: They are expenses involved with our consultants and lawyers related to the business integration.

Q2: Please tell us the situation about business structural reform of affiliated companies.

A2: We are carrying out business structural reform continuously. I would like to refrain from explaining in detail.

Q3: Is business performance of Bulk Shipping Business in the 3rd quarter a black figure even excluding foreign exchange revaluation gain? Also, please tell us the distribution of foreign exchange revaluation gain.

A3: Yes, it is a black figure. About half is Bulk Shipping Business and the remaining half is mostly Containership Business.

Q4: Regarding the lawsuit against APL Logistics, how much was the amount of damage?

A4: Because it takes time to recover trust that was lost by spreading false information, the damage we sustained in our corporate value was large. For that reason, we decided to take legal action.

Q5: For turning the business performance into a black figure in the next term, if there are any known earnings improving factors, please let us know to the extent disclosable.

A5: One is to improve cost competitiveness by completing our business structural reform that we have been working on, and another is to maximize the merits of large vessels through the new alliance that we are going to join in the next term.

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