1.Qualitative Information on Quarterly Results

(1) Review of Operating Results

In the first three months of the fiscal year ending March 31, 2026 (April 1, 2025 to June 30, 2025), the company reported revenues, operating profit, recurring profit, and profit attributable to owners of parent of ¥600.9 billion (decreased by ¥50.7 billion from the first three months of the previous fiscal year), ¥37.7 billion (decreased by ¥28.0 billion), ¥59.7 billion (decreased by ¥66.0 billion), ¥52.0 billion (decreased by ¥58.1 billion), respectively. Non-operating income includes equity in earnings of unconsolidated subsidiaries and affiliates of ¥23.7 billion, of which ¥4.5 billion was earned by OCEAN NETWORK EXPRESS PTE. LTD. (ONE), an equity-method affiliate of the Company.

Changes in the average exchange rate between the U.S. dollar and yen as well as the average bunker oil price during the first three months of the current and previous fiscal years are shown in the following tables.

Overview by Business Segment

Business segment information for the three months ended June 30, 2025 (April 1, 2025 to June 30, 2025) is as follows.

Liner Trade Business

Container Shipping Division: Amid a continued increase in shipping capacity following the delivery of new vessels, the division experienced a sharp decline and subsequent surge in the transport demand originating from China, affected primarily by tariff polices in the U.S. and China; market levels fluctuated significantly while freight rates were lower throughout the quarter year on year. At ONE, the profit level was lower year on year due to a year-on-year decrease in freight rates.

Terminal Division: At the terminals in Japan, the handling volumes increased year on year.

As a result of the above, the Liner Trade Business overall decreased revenues and profits year on year.

Air Cargo Transportation Business

Freight rate and handling volumes from Asia to North America decreased year on year due to U.S. tariff policies and other factors.

As a result of the above, the Air Cargo Transportation Business decreased both revenues and profits year on year.

Logistics Business

Air Freight Forwarding Business: Although the handling volumes were flat year on year, the profit level was higher year on year due to lower purchasing prices.

Ocean Freight Forwarding Business: Although the handling volumes increased year on year, the profit level declined year on year due to higher costs caused by inflation.

Contract Logistics Business: The profit level declined year on year as a result of a decrease in the handling volumes of major customers in U.S. due to the uncertain economic outlook caused by the impact of the U.S. tariff policy and other factors.

As a result of the above, the Logistics Business overall decreased both revenues and profits year on year.

Automotive Business
In the marine transport business, with the continued strong transport demand, the number of vehicles transported remained at the same level year over year. On the other hand, the business was affected by a decrease in revenues due to the stronger yen against the U.S. dollar compared to the last year and higher costs such as cargo handling costs due to inflation.

The auto logistics business experienced a decrease in the number of vehicles handled and a rise in cost due to inflation.

As a result of the above, the Automotive Business overall decreased both revenues and profits year on year.

Dry Bulk Business

The Capesize market declined compared to the strong year-ago period. The Panamax size and smaller market declined year on year despite strong soybean shipments from Brazil.

The Dry Bulk Business overall was affected by foreign exchange fluctuations in addition to a decline in the market conditions.
As stated above, the Dry Bulk Business overall significantly decreased both revenues and profits compared to the strong performance of the same period of the previous fiscal year.

Energy Business

VLCC (Very Large Crude Carrier): Market levels increased year on year, reflecting unstable movements including temporary spike due to the worsening situation in Iran and Israel, despite a decline from mid- May due to a softening supply-and-demand conditions.

VLGC (Very Large Gas Carrier): Market levels temporarily fell sharply in April due to concerns about a decline in transportation demand caused by the U.S. tariff policy and other factors. While the market subsequently showed a recovery trend due to the deferral of the application of tariffs and other factors, it declined year on year.

Petrochemical tanker: Market levels declined year on year due to a slowdown in cargo movements resulting from a decrease in demand for petroleum products caused by an economic slowdown and other factors.

LNG carrier: The results were steady on support from the long-term contracts that generate stable earnings.

Offshore business: FPSO (Floating, Production, Storage and Offloading) recorded a one-off profit as a new project launching operation. Shuttle tankers operated steadily.

As a result of the above, the Energy Business overall increased both revenues and profits year on year.

Other Business

Vessel & Technical Service Business: The bunker fuel sales business remained weak due to lower bunker oil prices and a decrease in sales volume.

Cruise Business: Asuka II successfully operated a round-the-world cruise. On the other hand, expenses in preparation for the launch of Asuka III operations were recorded.

As a result of the above, the Other Business overall decreased both revenues and profits year on year.

(2)Explanation of the Financial Position Status of Assets, Liabilities and Equity

As of the end of the first quarter of the current fiscal year, total assets amounted to ¥4,311.5 billion, a decrease of ¥8.7 billion from the end of the previous fiscal year due to factors including a decrease in investment securities. Total liabilities amounted to ¥1,470.1 billion, an increase of ¥119.8 billion from the end of the previous fiscal year due to factors including a ¥122.1 billion increase in interest bearing debt to ¥860.6 billion caused mainly by an inecrease in long-term loans payable. In equity section, retained earnings decreased by ¥162.0 billion and shareholders’ equity, which is the aggregate of shareholders’ capital and accumulated other comprehensive income, amounted to ¥2,785.2 billion. This amount combined with the non-controlling interests of ¥56.1 billion brought total equity to ¥2,841.4 billion. Based on this result, the debt-to-equity ratio (D/E ratio) came to 0.31, and the equity ratio was 64.6%.

(3)Explanation of the Consolidated Earnings Forecast and Future Outlook

① Forecast of the Consolidated Financial Results Liner Trade Business

Container Shipping Division: Due to the impact of the U.S. tariff policy and other factors, the rise of short- term freight rates from the second quarter onward is not included, which was in the initial forecast. The full-year profit level is expected to be lower than the initial forecast.

Air Cargo Transportation Business

Effective on August 1, 2025, the share exchange between Nippon Cargo Airlines Co, Ltd. and ANA Holdings Inc. was completed. The Air Cargo Transportation Business will not be included in the earnings forecast for the second quarter of the year ending March 31, 2026 and thereafter.

Logistics Business

Air Freight Forwarding Business / Ocean Freight Forwarding Business: Although the handling volumes will be slightly adjusted due to the impact of the U.S. tariff policy and other factors, the business is expected to remain firm.

Contract Logistics Business: The full-year profit level is expected to be lower than the initial forecast due to the impact of the U.S. tariff policy and other factors.

Automotive Business

Although the impact of the U.S. tariff policy and other factors are expected to be felt going forward, we expect the full-year profit level to exceed our initial forecast due to the strong first quarter.

Dry Bulk Business

Although the market levels for the second quarter onward are expected to be generally at the same level as the initial forecast, the full-year profit level is expected to be lower than the initial forecast due to a decline the profitability for some vessel types relative to the initial projections, increased costs, and the impact of foreign exchange fluctuations in the first quarter.

Energy Business

VLCC / VLGC: The market levels are expected to remain generally in line with our initial forecast.

LNG carrier: The business is expected to remain firm, backed by stable earnings from medium- to long- term contracts.

Based on the above factors, the business forecast for the cumulative period through the second quarter of the consolidated fiscal year and the full year have been revised as follows.

Dividends for the Fiscal Year ending March 31, 2026

The Company regards the stable return of profits to shareholders as one of the most important management priorities, and determines profit distribution based on a targeted consolidated dividend payout ratio of 40% and the minimum annual dividend of ¥200 per share, by comprehensively considering the outlook for business performance and other factors. In addition, the Company will make decisions on the implementation of flexible additional shareholder returns, including the acquisition of own stock, after considering investment opportunities and the business environment.

The current outlook of tariff policies of various countries and their effect on the global economy, and future trends in cargo movements remain uncertain. In this business environment, the Company currently plans no change to its initial forecast for both the interim and year-end dividends for the current fiscal year; we plan to pay an interim dividend of ¥115 per share and a year-end dividend of ¥120 per share, for an annual dividend of ¥235 per share.

In addition, the Company has decided to acquire its own shares for a total maximum acquisition amount of ¥150 billion, total maximum number of shares to be acquired of 48 million shares, and share acquisition period from May 9, 2025 to April 30, 2026. As of the end of July, the Company has completed the acquisition of 7,921,200 shares. The Company plans to retire the acquired shares in principle. All

dividends for the current fiscal year are based on the number of shares excluding the number of shares of treasury stock acquired by the end of July 2025.

(Important Subsequent Events)
(Share exchange of the subsidiary)

On August 1, 2025, the Company conducted a share exchange, transferring all the shares it held in consolidated subsidiary NIPPON CARGO AIRLINES CO., LTD., which had been resolved at the Board of Directors meeting held on July 10, 2023.

Overview of business divestiture

1.Name of the successor company

Wholly owning parent company in the share exchange: ANA HOLDINGS INC. (hereinafter ”ANAHD”)

2.Details of the business that was divested

Wholly owned subsidiary in the share exchange: NIPPON CARGO AIRLINES CO., LTD. (hereinafter “NCA”)
Description of business: Air Cargo Transportation Business
Main transactions with the Company: Funding through loans (balance of loans payable to the Company: 77,075 million yen as of June 30, 2025)

3.Main reason for the business divestiture

Since the establishment of NCA, the Company has been involved in its management as a major shareholder. However, the continuous introduction of equipment to expand the operation and maintenance system, as well as the ongoing training of personnel engaged in operations and maintenance, require considerable costs. In the highly volatile air cargo transportation business, the Company had faced challenges in expanding the business scale to a level that matches these costs. In recent years, NCA has continued to provide value to society through its air cargo transportation business such as by continuing to provide services under the mission of “not stopping logistics even during the COVID-19 pandemic.” However, from the Company’s long-term perspective of achieving further growth and enhancing corporate value, including responding appropriately to environmental considerations, the Company believes that transferring the business to ANAHD, which operates in the same industry and has provided personnel support for strengthening maintenance systems, is the best strategy. Therefore, the Company decided to conduct a share exchange with ANAHD to transfer all of the Company’s shares in NCA to them.

4.Effective date of the business divestiture (effective date of the share exchange) August 1, 2025 (deemed date of transfer, July 1, 2025)

5.Other matters pertaining to the outline of the transaction (including the legal form thereof)

A business divestiture via share exchange in which ANAHD became the wholly owning parent company and NCA became the wholly owned subsidiary

(1) Method of the share exchange

A share exchange in which the consideration received was shares of the successor company

(3)Basis for calculating share exchange ratio

To ensure fairness and appropriateness in the calculation of the share exchange ratio used in this share exchange, the Company selected EY Strategy and Consulting Co., Ltd. (hereinafter referred to as “EY”) as an independent third-party valuation institution, separate from the Company, NCA, and ANAHD. The Company and ANAHD, using the calculation results of the share exchange ratio submitted by each of the respective third-party valuation institutions as a reference, comprehensively considered factors such as both parties’ financial conditions, asset conditions, and future prospects. After thorough discussions and examinations between the two parties regarding the share exchange ratio, both parties concluded that the share exchange ratio falls within the range of EY’s calculation results and is at a fair and appropriate level. Therefore, both parties proceeded with the share exchange based on this share exchange ratio.

(4)Consideration received

11,024 million yen (share price of the common stock of ANAHD on the effective date of the share exchange was 2,808 yen)

(5)Ownership ratio after share exchange

As all of the issued shares of NCA were transferred through the share exchange, the ownership ratio after the share exchange is 0%. As a result, NCA is no longer a consolidated subsidiary of the Company.

6.Overview of accounting treatment performed

(1)Amount of transfer profit or loss
-7,057 million yen (loss on share exchange)

(3)Accounting treatment

Difference between the consolidated book value of the transferred shares and the consideration received will be recorded in Extraordinary losses.

7.Name of the reportable segment in which the divested businesses were included Air Cargo Transportation Business

8.Approximate amounts of profits and losses related to the divested business recorded in the consolidated statement of income for the first quarter of the current fiscal year
Revenues 39,616 million yen * Operating profit 999 million yen

(Business Combination through Share Acquisition)
The Company decided to acquire the entire share capital of Movianto International B.V. (“Movianto”) at the Board of Directors meeting held on July 7, 2025. Based on the decision, our consolidated subsidiary Yusen Logistics (Europe) B.V. (“YLEU”) concluded a Put Option Agreement with Walden Group International Holding B.V. (“Walden”), the sole shareholder of Movianto, on July 16, 2025. Following the exercise of the put option by Walden, YLEU executed a Share Purchase Agreement with Walden on August 1, 2025.

1.Outline of Business Combination

(1)Name and business of the acquiree
Name of the acquiree ：Movianto International B.V.
Description of business：Temperature controlled transportation and warehousing services specialized for pharmaceuticals

(2)Main reasons for the business combination
Yusen Logistics Group has positioned healthcare logistics as a key growth area and has been strengthening its capabilities in medical and pharmaceutical logistics globally through its group companies. With the Walden healthcare operations joining the Yusen Logistics Group through this acquisition, not only will the scale of the healthcare logistics business in Europe dramatically increase, but the combination of its expertise and Yusen Logistics Group’s global network will also enable the provision of higher value-added services to a broader market.

NYK has positioned logistics as a core business segment in its medium-term management plan announced in March 2023. This transaction follows our acquisition of an e-commerce logistics platform company in the UK in February 2024 and an auto parts logistics company in the Netherlands in April 2024, further enhancing our service offerings and significantly strengthening our business foundation.

2.Number of Shares to Acquire, Purchase Price, and Shareholding Ratio After Acquisition Purchase price : Approx. EUR 1.25 billion (Approx. 213.437billion yen)
Shareholding Ratio: 100%
※Exchange rate: 1 EUR = 170.75 JPY

Full Report

Source: Nippon Yusen Kabushiki Kaisha