Maintaining 3 Years' Worth of Order Backlog at All Times

「The order backlog at the end of the first quarter of the current consolidated fiscal year was 51 vessels and ¥477,663 million, up 13.7% year on year.」

「We completed 4 large bulk carriers and 17 handy-size bulk carriers and other vessels, and received orders for 10 large bulk carriers and 5 handy-size bulk carriers, bringing the order backlog at the end of the consolidated fiscal year to ¥422,073 million, up 7.1% year on year.」

「As a result of receiving orders for 10 large bulk carriers and 5 handy-size bulk carriers, the order backlog at the end of the consolidated fiscal year stood at ¥422,073 million, up 7.1% year on year.」

「We completed 1 large bulk carrier and 8 handy-size bulk carriers and other vessels, and received orders for 5 large bulk carriers and 5 handy-size bulk carriers, bringing the order backlog at the end of the interim consolidated fiscal period to ¥432,742 million, up 17.4% year on year.」

「We received orders for 2 VLGCs, 10 large bulk carriers and 10 handy-size bulk carriers, bringing the order backlog at the end of the consolidated fiscal year to ¥394,070 million, up 26.8% year on year.」

「During the first six months of the current interim consolidated fiscal period, we completed 1 large LPG/ammonia carrier (VLGC) compatible with LPG fuel and 14 handy-size bulk carriers. We received orders for 2 VLGCs and 11 handy-size and large bulk carriers, bringing the order backlog at the end of the interim consolidated fiscal period to ¥368,529 million, up 32.7% year on year.」

「During the consolidated fiscal year, we completed a total of 12 vessels, including 1 large LPG/ammonia carrier (VLGC) compatible with LPG fuel, 1 large coal carrier compatible with LNG fuel and 6 large bulk carriers. We received orders for a total of 25 vessels, including large bulk carriers, bringing the order backlog at the end of the consolidated fiscal year to ¥310,858 million, up 31.6% year on year.」

「During the first nine months of the current consolidated fiscal year, we completed a total of 8 vessels, including 1 large LPG/ammonia carrier (VLGC) compatible with LPG fuel and 1 large coal carrier powered by LNG. We received orders for a total of 17 vessels, including large bulk carriers, bringing the order backlog at the end of the third quarter of the current consolidated fiscal year to ¥288,665 million, up 27.3% year on year.」

「During the first six months of the current consolidated fiscal year, we completed a total of 4 vessels, including 1 large LPG/ammonia carrier (VLGC) compatible with LPG fuel and designed with consideration for the global environment, and 2 large bulk carriers. We received orders for a total of 12 vessels, including 2 large bulk carriers, bringing the order backlog at the end of the second quarter of the current consolidated fiscal year to ¥277,763 million, up 24.7% year on year.」

「The order backlog at the end of the first quarter of the current consolidated fiscal year was ¥251,441 million, up 29.7% year on year.」

「During the consolidated fiscal year, we completed a total of 15 vessels, including 9 large bulk carriers, and received orders for a total of 28 vessels, including 2 large bulk carriers powered primarily by LNG, which has a low environmental impact. The order backlog at the end of the consolidated fiscal year was ¥236,162 million, up 53.2% year on year.」

「During the nine-month consolidated period under review, the Group completed 11 vessels in total, including 6 large bulk carriers, and won orders for 22 vessels in total, including 2 large bulk carriers powered primarily by low-environmental-impact LNG. The order backlog at the end of the nine-month consolidated accounting period was ¥226,717 million, up 93.5% year on year.」

「During the six-month consolidated period under review, the Group completed 8 vessels in total, including 4 large bulk carriers, and won orders for 19 vessels in total, including 2 large bulk carriers powered primarily by low-environmental-impact LNG. The order backlog at the end of the six-month consolidated accounting period was ¥222,699 million, up 92.8% year on year.」

「During the three-month consolidated period under review, the Group completed 4 vessels in total, including 2 large bulk carriers, and won orders for 11 vessels in total, including 1 large bulk carrier powered primarily by low-environmental-impact LNG. As a result, the order backlog at the end of the three-month consolidated accounting period was ¥193,916 million, up 102.6% year on year.」

「The Group and its consolidated subsidiary Hakodate Dock Co., Ltd. reduced operating volumes to the minimum necessary level in line with the order-taking environment, as they had in the previous fiscal year. In addition, the suspension of the newbuilding business at consolidated subsidiary Sasebo Heavy Industries Co., Ltd., with final delivery scheduled for January 2022, further reduced operating volume. As a result, revenue was ¥21,026 million, down 17.0% year on year.」

「Regarding orders, Sasebo Heavy Industries Co., Ltd. froze new orders for newbuildings, while the Group and Hakodate Dock Co., Ltd. revised their operating plans downward by avoiding low-priced orders as much as possible. As a result, orders were limited to 5 large bulk carriers, 1 medium-sized bulk carrier and 2 handy-size bulk carriers, and the order backlog was ¥107,331 million, down 22.7% year on year.」

「During the six-month consolidated period under review, the Group completed 10 vessels in total, including 2 large bulk carriers and 5 medium-sized bulk carriers and 2 handy-size bulk carriers. Despite challenging sales conditions with no clear end to the COVID-19 pandemic, it won orders for 2 large bulk carriers, and the order backlog was ¥116,075 million, down 23.3% year on year.」

「During the three-month consolidated period under review, the Group completed 7 vessels in total, comprising 2 large bulk carriers, 4 medium-sized bulk carriers and 1 handy-size bulk carrier. Although it conducted vigorous sales activities amid a depressed shipping market, partly due to the impact of COVID-19, orders were limited to 1 large bulk carrier and the order backlog was ¥117,050 million, down 33.4% year on year.」

「During the six-month consolidated period under review, the Group completed 13 vessels in total, comprising 2 VLCCs, 2 very large ore carriers (VLOCs), 4 medium-sized tankers, 2 medium-sized bulk carriers and 3 handy-size bulk carriers, and won orders for 4 vessels in total, comprising 3 medium-sized bulk carriers and 1 handy-size bulk carrier. As a result, the order backlog was ¥151,338 million, down 28.5% year on year.」

「Regarding orders, the Group curbed order-taking activities in part to assess the change in market conditions in the newbuilding market, which had remained depressed for an extended period. There were no new contracted vessels, and the order backlog was ¥175,800 million, down 16.5% year on year.」

「In terms of orders, the Group won orders for 15 vessels in total, comprising 1 VLCC, 2 large bulk carriers, 8 medium-sized bulk carriers and 4 handy-size bulk carriers. As a result, the order backlog at the end of the consolidated fiscal year was ¥210,485 million, down 15.7% year on year.」

「The Group expects that a full recovery in newbuilding demand will take some time. It will flexibly review its operating plan, continue strategic product development and order-taking activities across the Group, and seek to secure a certain volume of order backlog.」

「The Group expects the challenging business environment to continue for some time, will review its operating plan, and will continue strategic product development and order-taking activities across the Group in order to secure a certain level of order backlog.」

「Although newbuilding prices are trending moderately higher, the challenging business environment is expected to continue. The Group will continue strategic product development and order-taking activities and seek to secure a stable order backlog sufficient to maintain its current operating rate.」

「Under these circumstances, the Group will maintain its current operating rate and secure an order backlog by continuing strategic and proactive product development and order-taking activities across the Group.」

「During the nine-month consolidated period under review, the Group completed 14 vessels in total, comprising 1 large ore carrier, 1 large bulk carrier, 4 medium-sized tankers, 4 medium-sized bulk carriers and 4 handy-size bulk carriers, and won orders for 12 vessels in total, comprising 1 large bulk carrier, 1 medium-sized tanker, 8 medium-sized bulk carriers and 2 handy-size bulk carriers. The order backlog was ¥252,570 million, down 12.8% year on year, while orders for the medium-sized bulk carriers in which Sasebo Heavy Industries Co., Ltd. specializes increased.」

「During the six-month consolidated period under review, the Group completed 12 vessels in total, comprising 1 large ore carrier, 4 medium-sized tankers, 3 medium-sized bulk carriers and 4 handy-size bulk carriers, and won orders for 10 vessels in total, comprising 1 medium-sized tanker, 7 medium-sized bulk carriers and 2 handy-size bulk carriers. As a result, the order backlog was ¥254,309 million, down 10.1% year on year.」

「Amid a record-level, severe order-taking environment, the Group conducted proactive sales activities based on its medium- to long-term strategy, won orders for 9 vessels, mainly newly developed vessels such as very large crude carriers (VLCCs), received provisional commitments for 6 vessels, and secured an order backlog equivalent to 3 years.」

「The order-taking environment is expected to remain challenging, but the Group will further strengthen its product mix of multiple vessel types, including bulk carriers, tankers and LPG carriers, to respond promptly and accurately to market changes and prevail in intense competition for survival, and will seek to secure approximately 3 years of work on hand in principle by developing new vessel types competitive in both performance and cost and tailored to customer needs.」

「Because this places a substantial burden on the design and development divisions, an appropriate lead time is required. In principle, the Group will secure approximately 3 years of work on hand and prevail in the intense competition for survival.」

「The Group will seek to improve profitability through higher productivity and cost reductions in its newbuilding business, accelerate the development of new products and competitive products reflecting customer needs, maintain work on hand equivalent to 3 years at all times, and prevail in increasingly fierce international competition for survival.」

「Under these circumstances, the Group will make every effort to develop new vessel types that incorporate market needs in order to achieve its order-taking policy of "always maintaining an order backlog equivalent to 3 years."」