Top Message

We have announced our financial results for fiscal 2012, and I would like to explain the highlights.

Overview of Results

Reviewing the global economy in the fiscal year ended March 31, 2013, the U.S. economy returned to a growth path as advances in shale gas revolution rejuvenated the manufacturing sector and the housing and car markets showed signs of improvement. Despite this, cargo shipping volumes on U.S. routes failed to make a full recovery. In Europe, the economic slump persisted amid deep-rooted debt problems. In Asia, while China's rate of growth slowed down, it still exceeded that of more developed nations.

In this environment, our liner trade segment, which is heavily influenced by consumer trends in U.S. and Europe, was adversely affected by the deteriorating supply-demand imbalance. Thanks to our thorough rationalization measures, however, we succeeded in significantly narrowing the business's loss compared with the previous fiscal year. In our bulk carrier segment, market rates in both tanker division and dry bulk carrier division, which transports iron ore and coal, slumped due to deterioration in the supply-demand balance stemming from economic stagnation in developed countries and the slowdown in China. However, by implementing comprehensive cost reductions, we were able to minimize the extent of adverse impact in these divisions. Moreover, LNG transport division posted strong results as demand for alternative energies grew, and results in the car carrier division returned to levels seen prior to the Great East Japan Earthquake and Thai floods, which severely impacted the business in the previous fiscal year. Consequently, bulk carrier shipping segment rebounded to profitability from the previous year's loss.

As a result of the above factors, we were able to return to profit as we set target in the beginning of the year, and posted the following results.

Revenue

Recurring Profit

In consideration of these results, we plan to pay a year-end dividend of ¥2 per share. We recognize, however, that this profit level does not meet the expectations of our shareholders. We will therefore continue to suspend payment of bonuses to directors, as we did in the previous year.

Earnings Forecast for the Year Ending March 31, 2014

Fiscal 2013 is the final year of our medium-term management plan, “More Than Shipping 2013.” We plan to forge ahead with our growth strategy of capturing growing Asian demand and expanding “stable freight rate businesses” through long-term contracts. At the same time, in each area of business, we will continue our 3M elimination project begun in fiscal 2012 (eliminate muda: non-value adding activities; mura: unevenness in production or work activities; and muri: excessive burdens) as part of a concerted effort to further improve results.

Our current forecast for fiscal 2013 is as follows.

Dividends

Based on this forecast, we plan to pay an annual dividend of ¥4 per share, consisting of interim and year-end dividends of ¥2 per share.

I would like to reiterate my sincere thanks to shareholders and investors for their understanding, and I look forward to your continued support.