Damage control amid the spread of COVID-19 and continuity of stable logistics services

「In the Product Logistics segment, the automobile carrier business expects the global automobile sales market to remain affected by shortages of semiconductors and automobile parts, as well as the situation in Russia and Ukraine. Nevertheless, the company will continue working to achieve a recovery in sales and cargo movements and a recovery in freight rates, while optimising fleet size and improving operating and vessel-allocation efficiency.」

「The Company will continue improving operating efficiency through fleet-size optimization, route-network restructuring and other efforts undertaken since the fiscal year ended March 2021, and expects to secure earnings in the fiscal year ending March 2022.」

「The Company will continue improving operating efficiency through fleet-size optimization and route-network restructuring efforts undertaken since fiscal 2020, and expects to secure earnings in fiscal 2021.」

「The global economy recorded the largest negative growth in the postwar period, exceeding that during the Lehman shock, as a result of the spread of COVID-19 and the associated restrictions on activity and calls for people to refrain from going out. In this business environment, the Company focused on damage control by formulating a management plan in August, optimizing fleet size centered on dry bulk carriers and car carriers, selectively investing, securing liquidity, and strengthening its equity base through asset sales, including overseas terminals.」

「The Group will give top priority to damage control for the current fiscal year's performance and steadily advance measures including reducing the fleet in line with lower cargo volumes, optimizing vessel deployment, reducing operating costs through vessel idling and lay-up, securing sufficient on-hand liquidity, and selling assets as a measure to strengthen equity capital.」

「The Group will give top priority to damage control for the current fiscal year's performance and steadily advance measures including reducing the fleet in line with lower cargo volumes, optimizing vessel deployment, reducing operating costs through vessel idling and lay-up, securing sufficient on-hand liquidity, and selling assets as a measure to strengthen equity capital.」

「The spread of COVID-19 caused a substantial decline in demand for maritime transportation as global sales stagnated and production at factories in various countries was suspended. Although the Group reduced costs through measures to adjust shipping capacity, including laying up vessels and temporarily reviewing services, revenue declined year on year and the Group recorded a loss.」

「To minimize the impact on performance in fiscal 2020, we will steadily implement the following measures. a Fleet reduction, optimization of vessel deployment, idling and lay-up to reduce operating costs in line with lower cargo volumes: As a response to a temporary decline in demand, we will reduce the fleet and thoroughly lower operating costs. b Securing sufficient on-hand liquidity: We are securing sufficient liquidity, including through the use of committed credit lines. c Strengthening the equity base: We will sell vessels, real estate and other assets to strengthen the equity base. d Comprehensive review of the investment plan: We will focus on future growth areas by leveraging our strengths.」