Mitsui O.S.K. Lines New

Thank you very much for your participation. From now on, we will hold Shosen Mitsui Co., Ltd.' 's first quarter-finance presentation in 2021. I will introduce today's participants. Today's main speaker is Ume Mura, CFO of Shikko.

Ume Mura, thank you for having me.

Hi, I'm Nakanishi, the Director of Corporate Communication, who is in charge of the board. Today, I will participate with two people. Thank you for your cooperation. Today's progress is, first of all, from Uemura, the calculation and explanation materials are blue, but according to the calculation and explanation materials of our company, the first half-year calculation guide, and then I will continue to explain the performance forecast for the second half-year. After that, we will move on to the質疑応答, and it is scheduled to end at 15.15 as promised. Regarding the question and answer, I will explain it from about 20 minutes to 25 minutes in the first half. After that, I will give you some time, so please enter your questions from the chat. I will inform you again later about how to enter. Yes, then, I will explain it from Umemura.

I would like to start with Ume Mura. As you can see in the slide, the first quarter of the market was a business loss of 9.93 billion yen and a net profit of 1.04 billion yen. This is a significant increase compared to the previous year, which was greatly affected by the COVID-19 pandemic. I will explain later about the forecast for the long-term business. In the container store business, there is a large uptrend due to more than expected entry and transport traffic. In addition to this, the dry bulk trend is also very good, and this uptrend also reflects that we will adjust the information to 3.5 billion yen from the 2,200 billion that were opened on June 21st based on net profit. The net profit was 3,000 tons in 2007, which is 2.2 billion yen. It was the highest profit in the past, but if you look at the net profit, it is expected to be the highest profit. First of all, I would like to explain the account details of the first quarter. The slide on the account data is on the third page and on the fifth page. Please take a look. As for the sales value, it will be increased by 3.74 billion yen per year. In addition to the official price of the drive bulk line, the entry price of the car line, which fell considerably due to the new corona effect last year, has returned, and the sales value has been increased by that. Next, business losses. This is a new one from April to show the power of our company to make money, and it is a combination of business losses and investment-based investment losses. This is also a large-scale increase in annual revenue. Specifically, it was a achievement of 9.93 billion yen. The net profit loss is also a large-scale increase, and it is 1042 billion yen. Eh? Well, the biggest increase so far has been the container line. The increase in Ocean Network Express was very large. As I said in the other car lines, the number of transport units has been greatly improved and the loss has been improved, and the drive bulk has also been very good. It will be the main reason for the increase in loss. Then, I would like to briefly explain each segment. Please take a look at the 4th and 5th pages of the slide. The dry bulk demand is the same as the previous year, which was affected by the new corona, and it is 6.1 billion yen, so the net profit is 6.5 billion yen. Compared to the previous year, the cost-effectiveness of all lines has improved. First of all, the steel raw material line, Cape-sized Valka, is based on China's high-tech steel demand, high-tech import and transport demand. As a result of increasing demand at a high level, it has increased significantly in the previous year. To be specific, I would like to tell you how good the forecast was. The effect of the first half of the year is the forecast for March to May, but if you look at the average in these three months, the total amount of solar power was $5,000 in the previous year, but this year it is $27,000, which is a very large increase. Next is Shosen Mitsui Dry Bark. Shosen Mitsui Dry Bark was established by Shosen Mitsui and Shosen Mitsui Kin-kai in April of this year by combining Shosen Mitsui and Futeiki Senbu, Mokuzaitipu Senbu, and Shosen Mitsui Kin-kai. In terms of the Chinese type of bark that is operated here, there is a lot of transportation demand from North America and South America to China, and it is increasing. However, in the case of the medium-sized volcano, as I have explained many times in the past, we are greatly reducing the exposure to the climate. In other words, the impact of the climate change is very limited compared to the Cape-sized volcano, but the impact of the high climate is the same as that of the Cape-sized volcano. Wood chips. Here, too, the transportation of wood chips has been improved mainly for China, and we have secured the black market. The other is the open Hatch line operated by Gearbalk, an application company. Here, too, the used cargo is paper pulp. This is paper pulp for China from South America, but this import has been improved, It's been a while, but it's been a while. It's been a while, but it's been a while. It's been a while, but it's been a while. It's been a while, but it's been a while. It's been a while, but it's been a while. It's been a while, but it's been a while. It's been a while, but it's been a while. Minus 4 billion yen. Specifically, this year, it was a profit of 4.3 billion yen. I would like to explain the transportation line that I just mentioned. Last year, due to the decline in crude oil science, there was a huge increase in supply and demand. As a result, VLCC's supply and demand was higher than $100,000 last year. There has been a lot of demand for oil, but this year, due to the global economic activity caused by the COVID-19 pandemic, the demand for oil has also decreased, and the amount of sun-drying of the VLCC at our feet is now at a negative level. When it comes to oil and gas, most of them are covered by long-term contracts, but the impact of SPOT is inevitable, and the oil and gas lines have been in business for the past year. Other transport lines, specifically the LPG and methanol lines, are subject to long-term contracts, so we are definitely raising profits. On the other hand, oil products and products that carry chemicals, such as chemical lines and product lines, are in decline, and the loss has decreased compared to the previous year. Next is the product transportation business. As I have said before, this is the largest part of Uzo Station. We are making a profit of 9.34 billion yen per year. The net profit is 9.1 billion yen. The biggest part is the recovery of the container line business. The container line business is divided into O&E companies and other high-end logistics businesses. I would like to explain about the ONE first, so please take a look at the material of Mazenda Color, page 3. The results of the first quarter have improved significantly in the previous year, and we have achieved a black market value of 25.59 million dollars. Regarding the market environment, as I mentioned in the first要点, The number of containers in the world increased by about 20% in the previous year. There was a large amount of cargo transportation demand. In addition, this has caused a lot of trouble to everyone, but there is a confusion throughout the supply chain. Specifically, the confusion between supply and inland transportation continues. Here, there are restrictions on supply. This also encourages the current market environment. As a result, there has been a significant increase, mainly in the short-term market. As a result, it has become a large-scale increase. For more details on the increase, please take a look at the waterfall chart at the bottom of page 3. As you can see, the increase is due to the increase in the number of workers. The increase in the number of workers is due to the increase in the number of long-term workers, but the lower half is due to the increase in the number of short-term workers, spot workers, and spot workers. On the other hand, in order to avoid confusion and confusion in the schedule, transportation costs and transportation costs tend to increase. As I said, the confusion in the supply chain due to the COVID-19 pandemic has caused a lot of inconvenience to our customers, but we are taking various measures to minimize the impact. I have written it on page 5 of the slide. In North America, the port of the West Coast is a port, and that railway transport is also in the port in Australia, and the situation continues to be chaotic. However, since the beginning of the year, it has been the most chaotic. It's Los Angeles, Los Angeles in North America, and Long Beach. Eh? Eh? Eh? Eh? Eh? Eh? Eh? Eh? I would like you to go back to page 6 of the blue slide. The public security logistics business has recovered its handling capacity compared to the same year and the same period, which has been affected by the new coronavirus. Eh, eh, eh, eh, eh, eh, eh, eh, eh, eh. 12 seats. This is about 10% of the total number of seats in the car, but we are adjusting the seats by changing the seats and scrapping them. Well, there is also this result, isn't it? This period is slightly affected by the lack of semiconductors, but when it comes to the car line of the car, the foot is in a slightly tight situation. This result. The automobile line business has greatly improved profits in the first quarter, and we are moving to the black market. It is a ferry internal railway line business. This is a cargo transport. This is very low, and we are securing a transport volume that exceeds the previous year's same period, but it is the passenger side. This is quite the case. The price of fuel oil has also been rising, and the price of this station has been decreasing year-on-year. Next, I will explain the related business. This is mainly a real estate business, but the real estate business is a big building. we are ensuring a very stable profit. We are ensuring a stable profit for some of the raw materials that will be replaced. On the other hand, when it comes to customer service, the impact of COVID-19's spread of infection is quite large. Cruise ships are also in a situation where they are struggling to cancel quite a few things. I have explained so far about the budget for the first quarter. Next, I would like to explain the net profit forecast for 2021. Please see the slide on the 7th and 9th pages. The sales volume is expected to be 1.1 trillion yen. At the end of April, it will be 1.6 trillion yen. At the time of the meeting in June, it was estimated to be 1.8 billion yen, but the dry bulk is an official business. In addition, the premise of the exchange rate has been changed from 105 yen to 110 yen, which is 1.105 to 110 yen. This is also the reason for the increase. The business loss is 33.5 billion yen, and the net profit is 3.5 billion yen. we have made major information corrections. The main reason for the information correction is that this was also mentioned in the first quarter, but the impact of the container line is still very large, and the overbill here is the largest. In addition, the transportation demand of the dry bulk line is still very high, and there is also an overbill in the market, so Well, these are the main reasons for the correction of information. Well, I will explain each segment. Please take a look at the 8th page of the document, the next page and the 9th page middle section. This is a driver line business. From the performance forecast announced on April 30, we corrected the information by 1.2 billion yen, I'm looking forward to it. It's a cable-sized bar, but the demand for steel raw materials for China is very strong, and it's a strong situation. Well, I have to pay a little attention to this, but on the other hand, it's a supply country, isn't it? Brazil, Australia, and I'm looking forward to the It can't be honest yoga. Hey. Hey. Hey. Hey. Hey. Hey. Hey. In October and December, the information was adjusted from $18,000 to $25,000. The results of April and June, and the forecast for January and March were also adjusted. With all of this, the benefits of the iron ore fuel line are also medium-term. There is also a fairly stable profit, so I'm looking forward to it. Well, if there is no anxiety factor, one is that the influence of the new corona will have an impact on the world economy in the future. Also, I think that the trend of China's industrial production is a little bit back, but I think that it won't fall that much. That's how we see it now. Next is Shosen Mitsui Dry Valkyrie. For this, especially for the medium-sized valkyries, it is expected that the import of large-scale grain will be difficult, and that it will be more profitable than expected. As I mentioned in the first quarter, the demand for China is recovering considerably, so it is expected that You don't. It. Energy.

Energy. Energy. Energy.

Energy. Energy. Energy. It is a 23 billion yen business transport. The entire segment is a long-term contract. We have secured stable profit as a base, but as I said earlier, the transportation line is closed, so it reflects it. It is a thing that has been modified. According to each shipyard, as I said earlier, we are expecting to see a slow recovery of the oil demand due to the extension of the cross-border production and the impact of the COVID-19 pandemic. For the first half of the year, the economic activity will recover due to the progress of vaccination. There is a little movement now, but there is a reduction in the number of cases. Furthermore, there is a possibility that there will be an increase in the number of cases in the northern hemisphere, and the number of cases will usually expand, so I think that the short-term demand will be improved slowly. However, compared to the previous year, it is expected that it will still be the same as last year, especially in the first half of the year. As I explained in the first quarter, the other ships are also supported by long-term contracts for methanol LPG. On the other hand, the oil and chemical lines have been affected by the market as well as the oil and gas lines, and we are waiting to see the results. The LNG line will be open for business. As for this year's LNG line, one LNG line and one LNG fuel supply line, a total of two lines, will run. The number of new lines is limited, but there were five new lines in the previous year. If we combine these, we will be able to build up a fairly stable profit. For the marine business, FSRU will be introduced into a long-term contract. This is just after the end of the Turkish contract, and now we are remodeling the ship to include it in the contract with Hong Kong. This means that FSRE will be less profitable than it was last year. On the other hand, FPSO has a very stable profit, If you look at the total number of overseas businesses, it seems that it is a loss like the previous period. Next, it will be a product delivery business. The container line business is. The business policy forecast has been greatly corrected this time as well. Specifically, we predicted a net profit of 2,940 billion yen. As I mentioned earlier, as you can see, the container line is moving at a very high speed, and the運賃指標 is also at a very high speed. As you can see on the slide, as stated on page 6 of the document, we have estimated a profit of about $6 billion. As for the company, we have estimated a profit of about $6 billion, with 31% of the revenue from the export of this $6 billion as the net profit of the company. As for Shimoki, Due to the influence of the COVID-19 pandemic, the economic environment has also changed significantly, so as an O&E company, there is no sign of a decline in sales. On the other hand, as a company, the current movement and operating standard are expected to continue until October of the Chinese national system, specifically October. However, after that, the traffic jam in the port and inland transport will be resolved, and the demand for Christmas-themed transport will drop. It is seen that the demand for transport will also calm down a little, and we are making these numbers with the assumption that the driver's license will gradually become difficult in the winter. In addition to the container line business, the high-end logistics business, as I said in the first quarter, is in good condition for recovery of the handling amount, and we are looking forward to a full-year loss that exceeds the basic budget. The entry of the automobile line has some concerns about the impact of the shortage of semiconductors, The ideal number is mainly for North America. Especially in the previous year, as I said earlier, we are also selecting, and we are working hard to increase the operational efficiency, so I think that this year's black market will be enough. This is also explained in the first quarter, but when it comes to cargo transport, it is very strict. The problem is the passenger side, but with the progress of vaccination, the passenger business is also in the process of recovering to some extent. However, if you look at the total number of passengers, I'm sorry, I'm looking forward to improving the cost-effectiveness even at the end of the year. Well, if you look at the entire product delivery, it is estimated to be a large increase of 24.3 billion yen from the beginning of the year, and the total sales revenue is estimated to be 29.8 billion yen. Regarding the related business, as I explained in the first quarter, regarding the customer service business, we see that the progress of vaccine vaccination is not as bad as we thought, but when we look at the entire related business, we see that the net profit of 2.6 billion yen compared to what we expected in April is 8 billion yen. Finally, I would like to explain a little about the disbursement. The business performance forecast has been greatly improved, so the estimated amount of disbursement in the medium term is 70 to 300 yen, which was announced on April 30. The final disbursement is 80 to 250 yen. The total cost was 150 yen to 550 yen. We have reviewed each of them. As for the success of the disbursement, we have maintained the 20% policy that we have explained so far. That's all I have to say.

Thank you very much.

Next, before I move on to the質疑応答, I would like to add three slides of reference materials from my perspective. This is the first reference slide. This is a summary of the main initiatives that we have picked up as a result of the progress of our efforts in this year. The ones in black and white are business ideas, vision, and action violations on April 1st. This is a big direction. Including the environmental vision in June, we have shown a big direction in black and white. In addition, regarding the specific efforts since May, I would like to refer to the environment-related ones as green, the social-related ones as pink, and the blue ones as governance-related ones, so please refer to them. If you click on the URL on the right of the individual project that you are interested in, it will be linked to our homepage. Thank you for your cooperation. Next, I would like to talk about reference materials No. 2 and No. 3, which are pages 13 and 14. The reference materials No. 2 and the reference materials No. 3 related to the Morishasu-Oki accident that occurred last summer. It will be a crisis-related situation, but we are updating it as an effort to contribute to the environment and society. That's all for the supplementary materials.