Ladies and Gentlemen, thank you very much for joining us today when you are very busy.

Before explaining our financial results, I would like to convey my greetings.


September 6th this year, we were visited by Japan Fair Trade Commission investigation team
on suspicion of violation of Act on Prohibition of Private Monopolization
and Maintenance of Fair Trade in terms of transportation of cars and
wheeled construction machinery.
We have taken this situation solemnly and are extending every possible cooperation
in this investigation.
Furthermore, we will again raise awareness of the importance of compliance
among every director and employee of the Company in their daily operations.


To our shareholders and investors who joined today, and all of our stakeholders,
we apologize for any concern you may have.

Now I will explain our 1st Half (April-September) Fiscal Year 2012 financial status and
our revised estimate for full-year (April 2012-March 2013) financial position for Fiscal 2012.

A-1. Financial Results for 2nd Quarter Fiscal Year 2012

Talking about entire 1st Half results,
I suppose they might have gone against market’s expectations in a good way.
We could achieve better results than what you had expected at each of Operating Income
or Ordinary Income.


Operating Revenues slightly declined from our last estimation as of July,
which please regard is within the range of usual fluctuation,
as freight rate is often moved being linked to fuel oil price.  

Then, Operating Income for 2nd Quarter was plus 8.1 billion yen;
Ordinary Income 1.9 billion yen; and Net Income was, regrettably, negative of 0.4 billion yen.
As for 1st Half, as mentioned in this slide, Operating Income 12.1 billion yen,
Ordinary Income 9.1 billion yen, and Net Income negative of 1.1 billion yen.


The reasons why these actual results of Operating and Ordinary Income exceeded
our previous estimations released as of July, as I cannot say drastically exceeded,
were cost saving efforts and effective operations, etc.


As for Net Income, because security market stayed further stagnant during the 2nd Quarter,
about 2 billion yen was written down additionally from securities we owned,
which regrettably could not be absorbed,
it resulted in minus 0.4 billion yen for 2nd Quarter, and minus 1.1 billion yen for 1st Half.

Segment-wise results are as mentioned in the table below.


Containership Business, which has been a total of containership division
and logistic division from this fiscal year,
from this 1st Quarter financial results, earned 3.2 billion yen
of Ordinary Income for 2nd Quarter, and 3.8 billion yen for accumulated 1st Half. 
In the Bulk Shipping Business, during 2nd Quarter,
although Dry Bulk market fell down significantly we managed to stay profitable
and achieved 1.9 billion yen profit.
This sector also includes Car Carrier Business, Tanker Business, and LNG Business,
and as a total, maintained black figure of 7.9 billion yen for the 1st Half.


Indicated below Offshore Energy E&P Support & Heavy Lifter Business,
which includes Offshore Support vessels and Heavy Lifters,
came to post deficit of 2.6 billion yen for 1st Half,
mainly due to Heavy Lifter market being in downturn.


As a total of all business segments was, as I mentioned before,
1.9 billion yen for 2nd Quarter, and 9.1 billion yen for 1st Half.             

I will not dare to comment about market situation in year-on-year comparison
which would be almost meaningless.
Exchange rate between U.S. dollar and yen was continuously higher compared with
the same term last year by 0.51 yen per U.S. dollar, which was counted as 0.2 billion yen
of negative factor to our Ordinary Income.
Fuel oil price was also higher by 29 U.S. dollars per metric ton and 1.9 billion of
negative impact.
Those downside effects were absorbed with our effort. 

A-2. Key Points for 1st Half Fiscal Year 2012

Regarding these Key Points for 1st Half, as I suppose I have already explained to you sufficiently,
I will skip this slide and move to full-year forecasts including 2nd Half estimations
that you all are most interested in.

A-3. Estimate for Full Fiscal Year 2012

Our 2nd Half forecasts are, to our regret, this time going against your expectations
on the downside. We have revised downward considerably.
Operating Income for the 2nd Half is estimated at 3.9 billion yen,
and Ordinary Income 0.9 billion yen, and Net Income 3.1 billion yen.


Regarding assumptions for these estimations, as our administers or directors
who are in charge of each business. will report market conditions for each business later,
overall this 2nd Half is planned based on much severer assumptions comparing to 1st Half.
Exchange rate is 80 yen per U.S. dollar and fuel oil price is 670 dollars per metric ton,
which are the assumptions for those forecasts I touched before.  


Finally, a total of 1st Half and 2nd Half is;
Operating Revenues of 1 trillion 130 billion yen;
Operating Income plus 16.0 billion yen;
Ordinary Income plus 10.0 billion yen;
and Net Income 2.0 billion yen, which are our full-year plan.


Segment-wise plan for this full year is as indicated in the table at the bottom of this slide.


For containership and logistics businesses 2nd Half Ordinary Income is 0.2 billion yen
in the table, which shows our intention we will manage to avoid making loss
for this fiscal year.


Then, for Bulk Shipping Business profit level is expected to decline sharply
compared with 7.9 billion yen of 1st Half
Ordinary Income to 2.1 billion yen for 2nd Half.


Please understand this is mainly because it becomes apparent from this 2nd Half
that the effect from downturn market for dry bulk carriers damage against our profit level.
Of course, we cannot leave it as it is and we have decided countermeasures for that,
about which our Vice President, Mr. Saeki will give some further explanation later.


As for ‘Offshore E&P Support and Heavy Lifter Business’,
we have no outstanding material to tell you so far,
but we are planning further cost saving and efficient operation to keep loss amount
around present level.


These are our expectations for through-out this fiscal year.

A-4. Key Points for Full Fiscal Year 2012

Next slide A-4 shows Key Points for this full year plan
where we have summed up various factors I have talked  until now.


For full year basis, in comparison with the previous estimate publicized at the end of July,
our Ordinary Income is planned down by 12.0 billion yen.
Primary factor for the decline is, after all, caused by market volatility,
which amounted 23.8 billion yen of negative impact.
This is mainly from the expectations of slow-down in dry bulk market
and softened containership market, plus various factors we have pointed out previously.
Accumulated all these factors, we cannot help but revise downward by 23.8 billion yen
from the previous prediction.
However there are also positive factors such as lower bunker oil price,
unexpectedly positive containership loading volume, or further cost saving, etc.
Summed up all these negative and positive factors, our Ordinary Income is forecasted
to decrease by 12.0 billion yen from the previous estimate.
Here we show the key points for the decrease.

A-5. Progress of Cost Saving Plan

Our yearly cost saving targets set as of April totaling of all company segments was 28.0 billion yen,
and until now, when the half of a year has passed, we have achieved 56% progress.


B. Division-wise Trends

The remaining part of this report is business-wise trends.
Now, as we do not have so much time, I will touch on each slide just a little,
and later in Q&A session, you can ask about details
to our administers or directors who are in charge of each business.

B-1. Division-wise Trends - Containership Business

I will first talk about slide B-1, Containership Business.
You can find the results of 1st Quarter, 2nd Quarter,
and 1st Half indicated at the right end of this table. 
I already explained 1st Half financial results.


Talking about utilization rate mentioned in the bottom of this table,
for Asia-North America trades, the average during 1st Half was 96%,
almost full throughout the term.
For Asia-Europe trades, although it was 95% during 1st Quarter,
it slowed down to 88% 2nd Quarter.
The average through 1st Half was 92%.


However, as to Asia-Europe trade, in terms of profitability,
for both 1st Quarter and 2nd Quarter we achieved black figure.
Our concern is, from now, 3rd Quarter, how much freight rate once fell down
in summer can be restored. 

B-2. Division-wise Trends - Dry Bulk Business

Next, Dry Bulk Business, as I touched before, looking at the table in this slide,
during this 1st Quarter, average market rate for Cape-size was 6,000 U.S. dollars per day
for 1st Quarter and 4,800 U.S. dollars for 2nd Quarter,
which means historically low level continued.


On the other hand, market rate for Panamax or Handy-max was still rather firm
and for entire Dry Bulk Business we secured profit for this 1st Half.


However, profit and loss for this business is posted in voyage completion basis.
In short, market downturn affects the next quarter results. 


So, from 3rd Quarter, we will have to count negative impact from the Cape-size market
fallen down drastically. Furthermore,  the number of our Cape-size fleet is somewhat increasing
because we are compelled to receive some newly built vessels as scheduled from this 2nd Half
to next year which we had once made our receipt delayed.


What it should mean is that Cape-size vessels to expose market are starting to grow
from this 3rd Quarter. For this 3rd Quarter, we might be driven to make some loss
from our Cape-size fleet.


To make matters even worse, markets for the other vessel-types than Cape-size, Panamax ,
Handy-max, or Small-handy are expected to stay much lower tone for this 2nd Half.
The profitability for these bulkers, what is called middle-to small size
among general bulkers, except for bigger type, has come to be standing out.
Not profitability, but loss.
Those are present Dry Bulk Business situation.

B-3. Division-wise Trends    -Car Carrier Business-

With regards to Car Carrier Business, loading results were indicated in this table.
1st Half results were almost as we expected. The question is how it will become in 2nd Half.
In 2nd Half, export to Europe has started to decrease drastically,
and our volume toward Europe during the term will have to decrease.


On the other hand, although I am not saying it is the reverse side,
there remain many strong areas, like Middle East, or Australia,
which cannot fully cover the decrease for Europe.
So, we can still expect moderate transport demand overall for this 2nd Half,
and we are not worried about this business seriously.

B-4. Division-wise Trends    -LNG Carriers and Oil Tankers-

Finally let me explain about LNG Carriers and Oil Tankers in Bulk Shipping Business.
Regarding crude oil transportation, as I told many times,
we see the market much pessimistically, and it has to continue for the time being.


The U.S. is reducing crude oil import. China, even if they could increase import,
they will carry with their own controlling vessels.
So, because the market is not in the condition we are seeking for
we began to shrink our fleet for crude oil.
So as far as our VLCC fleet, they have earned some profit with long-term contracts.
We are also operating the other types of tankers, such as AFRA-max or product tankers.
The number of those vessels are very small and we suppose you can regard impact of those
is almost negligible. 


LNG Carriers, as you may know, it is regarded as the favorite of energy transport in future.
We are eagerly aiming to obtain some new businesses coming out in future. 

― Current Assets (Reference with ‘Financial Highlights’) -

Those are about the outline of our financial condition as of the end of 2nd Quarter.
But now I would like to add one comment.
Looking at 2nd Quarter Financial Highlights in your hands, in the Current Assets,
you can find items of ‘Cash and deposits’, and ‘Marketable securities’.
‘Marketable securities’ is Japanese Government Bonds.
A total of these two categories is amounted 152.0 billion yen,
which means we have built up considerable liquidity,
which was partly raised from capital market and also from our positive free cash flow.
So at present we have no problem with cash.
I will conclude my explanation now.


 (Supplementary comments for Containership Business
  from our Senior Managing Executive Officer, Mr. Murakami)


<Referring to slide A-1>

You maybe ask about this certainly, I will comment about year-on-year comparison. 
For Fiscal 2011 1st Half Ordinary Income for Containership Business is
minus 17.5 billion yen including logistics business.
For Fiscal 12, it is plus 3.8 billion yen.
Regarding the improvement of 21.0 billion yen,
half is from freight rate up, and half is from cost saving effect.


Thank you.