Mitsui O.S.K. Lines (9104) Status update summary

Phase 1 achievements and Phase 2 priorities

• Phase 1 achieved key financial and non-financial KPIs, with profit targets met for three consecutive years; investment totaled JPY 2.0tn versus JPY 1.2tn planned, including JPY 1.6tn in stable-earnings businesses, and portfolio mix reached 37/63 versus 40/60 planned.

• Phase 1 advanced decarbonization, overseas organization expansion and talent diversification through M&A.

• Phase 2 (FY2026–2030) shifts from transformation and expansion to value realization, earnings delivery and investment returns, with a more measured investment pace and stronger shareholder returns.

• Priorities are enhancing earning power, balancing growth investment with financial soundness and shareholder returns, and strengthening sustainability, governance, human capital, digitalization and AI.

Financial targets and cash generation

• Pre-tax profit targets are JPY 420bn for 2030, raised from JPY 340bn, and JPY 500bn for 2035, raised from JPY 400bn; FY2030 targets include ROA of 5.5% and ROE above 10%.

• FY2030 core operating cash flow is targeted at JPY 420bn; base operating cash flow is planned to rise ~JPY 110bn from FY2026 to FY2030, excluding one-off items such as ONE special dividends, and by JPY 120bn versus 2025.

• Non-containership pre-tax profit is targeted to grow from JPY 204bn in 2025 to JPY 260bn by 2030; FY2030 assets are targeted at JPY 7.7tn, up JPY 1tn from JPY 6.7tn in 2026.

• Net gearing is targeted at 1.0–1.1x, with gradual improvement in financial discipline; the equity ratio was ~40% at end-2025 and is expected to increase.

• The profit plan assumes Strait of Hormuz instability settles by end-April; developments will be monitored and the plan updated as needed at the earnings announcement.

Capital allocation and shareholder returns

• Progressive dividends start at JPY 205 per share from FY2026; flexible buybacks target a 40% total payout ratio, with dividends linked to sustainable growth in stable earnings.

• Phase 2 prioritizes core operating cash flow and asset replacement over the Phase 1 investment-first approach, avoiding reliance on new external funding while retaining financing as an option for attractive opportunities.

• Disciplined growth investment and asset recycling are priorities, including environmentally friendly vessels and infrastructure; vessel sales are a key source of asset-switching proceeds.

• Five-year real estate asset recycling is planned at JPY 230bn, with regular reviews of asset decisions to improve capital efficiency and ROA.