The financial results briefing for the fiscal year ended March 31, 2020 did not include a question and answer session. Below is a summary of questions we received after the briefing and our answers.


【Countermeasures for the financial results in FY2020 (Correspondence to COVID-19)】

  (※Please refer to the slide “B-5” in the page 14 of the presentation material.)

Q1. You stated that “Shrinking our fleet scale and Reduction in fleet operational expenses through vessel allocation rationalization, suspension and laying up of vessels in correspondence with decline in cargo volume”. in the material. Specifically, what types of vessels will your measures focus on?

A1. Dry Bulk and Car Carrier Businesses will be the prime targets of our measures, as these businesses have been impacted the most by COVID-19. We will carefully monitor the situation and study various measures to reduce operational expenses, including operating vessels at slow steaming, reducing service frequency, temporarily suspension and laying up vessels, as well as disposal of aged vessels to reduce fleet size.


Q2. You stated that “Measure to Equity” and “Asset sales including real estate etc.” in the material. , Do you plan to sell real estate and other assets? Do you have any specific properties in mind? Additionally, in regard to “Securing sufficient liquidity on hand”, exactly what measures are you planning to take?

A2. Besides the real estate indicated in the briefing materials, we expect to sell vessels and overseas terminal businesses. Regarding liquidity on hand, we currently have cash equivalent to three months of revenues, and we believe this to be sufficient. At the same time, we are taking measures to expand this amount if necessary.


Q3. You said that "Overhauling our investment plan” in the material. By approximately how much do you expect to revise your investment?

A3. In terms of the size of overhauling, we will carefully analyze the changes to the post-COVID-19 business environment before making decisions. In general, we plan to utilize the business risk and return systems developed under the “Advanced Business Management” systemin the previous Medium-Term Management Plan. By putting these systems into practice and implementing them in each business area, we can rigorously control investment. We plan to focus investment into areas that maintain and expand profit rather than simply maintaining the size of the fleet.


【Disclosure both of New Medium-term Management Plan and Forecasts for fiscal year 2020】

Q1. Although your earnings forecasts for fiscal year 2020 are undecided, did you give any consideration to disclosure of forecasts at this time? When exactly do you plan on disclosing your earnings forecasts and the new Medium-Term Management Plan?

A1. Regarding the earnings forecasts, we believe it is necessary to disclose figures with a certain level of probability based on reasonable estimates and assumptions which carefully consider the impact of COVID-19. As we explained, there are currently a multitude of uncertainties which render it impossible to make reasonable forecasts. Under the circumstances, we decided that the disclosure of forecasts which lack probability and sufficient substantiation would risk presenting false information to shareholders and investors. We have therefore left the forecasts undecided at this time. We plan to carefully monitor the impact of COVID-19 and disclose fiscal year 2020 forecasts with or before the announcement of our first-quarter results scheduled for August.

In regard to the new Medium-Term Management Plan, we will also announce the plan after a careful analysis of the impact of COVID-19 and the changes in the business environment and external environment.



Q1. Will your projections for stable income business change significantly in fiscal year 2020?

A1. Regarding the stable income business, in fiscal year 2019, we strove to expand the number of vessels generating stable income, primarily in Dry Bulk, LNG Carrier, and Thermal Coal Carrier Businesses, by continuing to add new contracts. We expect these efforts to progress steadily in fiscal year 2020.