I am Kazuya Hamazaki, Chief Financial Officer of Mitsui O.S.K. Lines. Let me start with a general overview. In the first quarter of fiscal year 2026, we achieved ordinary profit of JPY 52.1 billion, income before income taxes of JPY 68.0 billion, and net income of JPY 61.0 billion. The Dry Bulk business, Energy business, and Chemical Logistics business produced solid performances, supporting our overall performance. As a result, our financial base remained strong. Total assets exceeded JPY 6.2 trillion, and shareholders' equity exceeded JPY 2.97 trillion. Our shareholders' equity ratio was 48%. Even taking estimated lease obligations of JPY 900 billion into account, we maintain a shareholders' equity ratio of 42%. We also made steady progress on the investment plan set out in our corporate management plan, BLUE ACTION 2035. For the accumulation of long-term stable profit, we have signed new long-term charter contracts for LNG carriers and ammonia carriers, and reached a final investment decision on investment in an offshore floating LNG liquefaction facility in the U.S. In addition, among the new vessels ordered during Phase 1, a total of 12 vessels, including two LNG carriers, one ethane carrier, and one VLCC, all of which will be deployed under long-term charter contracts, were delivered during the first quarter of fiscal year 2026 and will contribute to future cash generation. In our full-year outlook for fiscal year 2026, in light of the first quarter's results, we forecast ordinary profit of JPY 225.0 billion, which represents an upward revision of JPY 80.0 billion from our previous forecast, income before income taxes of JPY 280.0 billion, and net income of JPY 240.0 billion, which represents an upward revision of JPY 70.0 billion. Core operating cash flow, which is an indicator of our earning power, is expected to increase by JPY 60.0 billion from our previous forecast to JPY 360.0 billion. In our initial forecast, we anticipated that soaring fuel costs and trade restrictions in the Persian Gulf would have a negative impact of about JPY 24.0 billion. However, market conditions were better than expected due to factors including growth in ton-miles driven by alternative trading. The businesses that contributed significantly to this upward revision are the containerships business among market-driven business and dry bulkers, crude oil tankers, LPG and ammonia carriers, and chemical tankers businesses among hybrid business. Taking recent exchange rates into consideration, we changed our exchange rate assumption to JPY 155 to the USD. We had also assumed that the restrictions on navigation around the Strait of Hormuz would mostly be normalized from July, but we have changed this assumption in light of recent developments. Our latest forecast is based on the assumption of a partial reopening in October 2026 and the lifting of restrictions on passage from January next year. As in our previous forecast, our estimates are based on the assumption that the restrictions on passage through the Red Sea will continue until the end of the fiscal year. Under our shareholder return policy for Phase 2, we are following a progressive dividend policy introduced to improve the predictability of returns and plan to pay a full-year dividend of JPY 205 per share, as previously announced. In addition, regarding upsides in profit and taking into account the current share price level, we will consider and implement flexible share buybacks according to earnings progress and a total payout ratio of around 40%, with a view to improving capital efficiency and enhancing shareholder returns. Our Chief Communication Officer, Sanae Sonoda, will now give a more detailed overview of the financial results based on the financial results presentation materials. For details of our business performance in the first quarter of fiscal year 2026, please refer to page four and page five in the briefing materials. Ordinary profit was JPY 52.1 billion, income before income taxes was JPY 68.0 billion, and net income was JPY 61.0 billion. The Dry Bulk business, Energy business, and Chemical Logistics business performed strongly, contributing to our performance. I will now explain year-on-year comparison for each segment. The Dry Bulk business posted ordinary profit of JPY 10.7 billion, an increase of JPY 14.1 billion from the same period of the previous year, largely due to the contribution of Capesize bulkers. I will explain market conditions for each type of vessel. In the Capesize bulker market, iron ore shipments from Western Australia and Brazil and bauxite shipments from West Africa remained steady. Vessel supply was also tight, reflecting slow steaming in response to high fuel costs. As a result, Capesize bulker market rates remained firm and profit increased year-on-year. Market rates for Panamax and smaller bulkers increased from the end of April and remained firm, supported by movements of cargo such as coal, grain, and steel products. In the open hatch bulkers market, demand for the transportation of pulp, which is the main cargo, as well as project cargo remained firm. Profitability also increased due to improvement in fleet deployment efficiency. The Energy business posted ordinary profit of JPY 15.0 billion, a decrease of JPY 6.9 billion from the same period of the previous year. In the crude oil tankers, LPG and ammonia carrier businesses, alternative sourcing from North America increased due to the closure of the Strait of Hormuz. This led to an increase in ton-miles and a tightening of the vessel supply and demand balance, keeping market rates high. The LNG and ethane carrier and gas infrastructure businesses contributed to stable profits, partly due to the delivery of new vessels during the period. However, profit declined year-on-year in the absence of one-off profit recorded in the previous fiscal year. The offshore business achieved a year-on-year profit increase due to the stable profit contribution of 11 FPSOs and the strong performance of MODEC, Inc, which is an equity method affiliate. The Chemical Logistics business posted ordinary profit of JPY 8.4 billion, an increase of JPY 1.3 billion from the same period a year earlier. The methanol tanker and product tanker businesses saw profit contribution from long-term charter contracts and an increase in cargoes from the U.S. due to heightened tensions in the Middle East. This led to an increase in ton-miles and a tightening vessel supply and demand balance, keeping market rates firm. In the chemical tankers business, profit increased due to recognition of profit and loss for the six-month period from January to June 2026 as a result of alignment of the fiscal period. Additionally, cargoes from the U.S. increased as alternative trades due to heightened tensions in the Middle East, causing tightening of the vessel supply and demand balance and keeping market rates firm. The tank terminal business saw stable profit from long-term charter contracts, as well as growth in demand for the transportation of petroleum products and chemicals from the U.S. in response to rising Middle East tensions. As a result, terminal charges increased and the business performed strongly. The Product Transport business reported ordinary profit of JPY 7.0 billion, a decrease of JPY 23.7 billion, reflecting restrictions on Middle East shipping routes and higher fuel costs. Containerships business. Freight rates increased from May under the impact of port congestion and growing shipping demand in anticipation of a change in US tariff measures. However, operating costs also increased due to higher fuel prices and ONE posted profit after tax of $31 million. The containerships business as a whole, including ONE's equity method income, the business of chartering out vessels to ONE and domestic container terminal operations, reported ordinary profit of JPY 5.2 billion, a decrease of JPY 2.1 billion year-on-year. In the car carriers business, shipping demand for completed cars remained firm. However, ordinary profit decreased year-on-year due to a suspension of fleet deployment bound for the Persian Gulf, declined fleet deployment efficiency due to port congestion, as well as higher fuel costs. The Wellbeing and Lifestyle business achieved ordinary profit of JPY 1.9 billion, an increase of JPY 1.3 billion year-on-year, mainly due to the contribution of the real property business. The real property business achieved higher profit year-on-year, due to the contribution of newly acquired overseas properties and higher rents at domestic properties. The ferries and coastal ro-ro ships business posted a year-on-year profit decrease, reflecting reduced services due to inclement weather and higher fuel costs. The cruise business was impacted by preparatory expenditures for the launch of MITSUI OCEAN SAKURA, MOL Cruises' second ship. In the Associated businesses, the tugboat business and the trading business contributed to earnings, resulting in a year-on-year increase in profit. This concludes the summary of the financial results for the first quarter. Next, I would like to explain our fiscal year 2026 full- year forecast. Please look at page seven and page eight of the presentation materials. Our year-end exchange rates assumption is JPY 155 to the USD, and we assume that the Strait of Hormuz will partially reopen in October 2026, and restrictions on passage will be lifted in January next year. We also assume that passage through the Red Sea will continue to be restricted until the end of the fiscal year. Based on these assumptions, we forecast ordinary income for the full year of JPY 225.0 billion, which represents an upward revision of JPY 80.0 billion from our previous forecast. Income before income taxes of JPY 280.0 billion and net income of JPY 240.0 billion, which represents an upward revision of JPY 70.0 billion. I will now explain the forecast for each segment. The Dry Bulk business is projected to post ordinary profit of JPY 25.0 billion, which represents an upward revision of JPY 14.0 billion from the previous forecast on expectation that Capesize bulkers will benefit from favorable market conditions following a strategic increase in market exposure. The Capesize bulker market rates are predicted to remain firm due to steady iron ore shipments from Western Australia and Brazil, and strong bauxite and iron ore shipments from West Africa, as well as limited new vessel supply. The market for Panamax and smaller size bulkers is also expected to see firm movements of cargo such as coal, grain, and steel products. For open-hatch bulkers, profit was revised upward from the previous forecast on expectations of firm cargo movements of pulp, which is the main cargo, and project cargo. The Energy business is expected to record ordinary profit of JPY 55.0 billion, which represents an upward revision of JPY 15.0 billion from the previous forecast. Crude oil tankers and LPG and ammonia carriers will likely benefit from favorable market rates as continued alternative sourcing mainly from North America and South America due to the instability in the Middle East, leading to continued growth in ton-miles and continued tightening of the vessel supply and demand balance. Fixed term contracts renewed during the period were also renewed on favorable terms, and this will also contribute to performance. In the offshore business, we expect long-term stable profit from the FPSO business and a contribution from bonuses for high FPSO utilization rates. Contracts for cargo transfer vessels have also been renewed on more favorable terms than expected, so profitability is now expected to exceed our previous forecast. In the LNG and ethane carrier business and the gas infrastructure business, we anticipate the effect of entry into service of new vessels and a stable profit contribution from existing long-term charter contracts. In the Chemical Logistics business, we forecast ordinary profit of JPY 21.0 billion, which represents an upward revision of JPY 13.0 billion from our previous forecast due to the contribution of chemical tankers. Methanol tankers and product tankers are expected to perform solidly due to long-term charter contracts. Chemical tankers will likely make a larger profit contribution than the previous forecast on expectation of growth in ton-miles, driven by alternative sourcing from the U.S., and firm shipment demand for chemical products from the Middle East after the reopening of the Strait of Hormuz. In the tank terminal business, although goodwill amortization expenses associated with acquisition will continue, storage demand is expected to remain firm and a stable profit contribution from long-term charter contracts is anticipated. In the Product Transport business, we forecast ordinary profit of JPY 108.0 billion, which represents an upward revision of JPY 26.0 billion from our previous forecast due to increases in freight rates driven by strong cargo demand in the containership's business during the first half. ONE has raised its previous forecast for profit after tax by $600 million-$900 million. ONE raised its forecast for the first half by $800 million on expectation of increases in freight rates driven by strong cargo demand. However, ONE lowered its forecast for the second half by $200 million after factoring in the risk of fuel costs remaining high. Our full- year forecast for the containership's business, combining ONE's forecast with our forecast for the business of chartering out our containerships to ONE and our domestic port terminal operations, is JPY 58.0 billion, which represents an upward revision of JPY 28.0 billion from our previous forecast. In the Car Carrier business, shipping demand for completed cars will likely remain firm. However, we revised our previous forecast downward after factoring in increased waiting and deterioration in fleet deployment efficiency due to port congestion in North America and Africa. The Wellbeing and Lifestyle business is expected to record an ordinary profit of JPY 3.0 billion, which represents a downward revision of JPY 1.0 billion from the previous forecast. Daibiru Corporation, which operates the real property business, is expected to achieve profit exceeding our previous forecast, reflecting expected higher rents from the renewal of office leasing contracts and reduction in certain expenses. In the ferries and coastal ro-ro ships business, the passenger transportation business is performing strongly, but we have partially factored in the impact of cancellations due to the weather and the impact of higher fuel costs. The cruise business is in a transition period, switching from a one ship fleet operation to a two ship fleet operation. Profit will likely decline compared to the previous forecast because it is taking time for the marketing and sales promotion activities to be reflected on higher passenger numbers. The tugboat business and the trading business are expected to generate steady profit, outperforming the previous forecast. Finally, I will explain the dividend forecast. Starting from this fiscal year, we are following a progressive dividend policy introduced to improve the predictability of returns, and we plan to pay a full- year dividend of JPY 205 per share, as previously announced. We are planning an interim dividend of JPY 100 per share and a year-end dividend of JPY 105 per share. As explained by CFO Hamazaki, depending on earnings progress, we will consider and implement additional returns with a total payout ratio of around 40%. This concludes my explanation of the fiscal year 2026 forecast. To the future with our ocean planet, Mitsui O.S.K.
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