Iino Kaiun Kaisha : Supplementary Report for Financial Results of FY2025 3Q

Supplementary Report for Financial Results of FY2025 3Q

February 5, 2026

Prime Market of Tokyo Stock Exchange (Stock Code: 9119)

Table of Contents

FY2025 3Q Results P. 03

Financial Forecasts for FY2025 P. 07 Market Forecasts for FY2025 (Jan. to Mar. 2026) P. 10

Mid-term Management Plan (FY2023-2025) P. 16

（Numerical Financial Targets P.18 / Promote Action to Implement Management that is Conscious of Cost of Capital and Stock Price P.19 / Sustainability and Business Initiatives P.24）

Reference Information P. 26

（ Business Performance P.26 / Status of Facilities and Investment Plan P.30 / Existing Vessels and Orderbook P.33）

The Adventure to Our Sustainable Future 2

‌IINO Building (Left) Hibiya Fort Tower (Right)

Rotor Sail -Equipped Bulk Carrier "YODOHIME"

FY2025 3Q Results

Financial Highlights

FY2025 3Q Results : Net sales and profit decreased YoY due to

a softer shipping market.

FY2025 Full-year forecasts:

(Billion Yen) Compared to the previous

（Billion Yen）

Previous

(Feb. 5)

Net sales

Operating Ordinary Profit Profit

Net Income

forecast announced on October 31, 2025, the exchange rate remained at yen-depreciation levels against the USD, and the shipping market remained strong during the third quarter.

Moreover, in the fourth quarter, with an expected increase in equity-method gains from affiliates, we have revised our consolidated earnings forecast as outlined below.

Previous vs Revised

+0.8% +5.1% +18.4% +14.3%

Go to P.8 for details

Dividend forecast for FY2025:

Full-year dividend of 55 yen per share

(Yen/share)

Interim Year-end Total

For the fiscal year ending March 31, 2026, the Company has adopted a dividend policy based on a payout ratio of 40% of consolidated full-year results.

FY2024 Results 25

33

(Ordinary dividend: 28 yen) (Special dividend: 5 yen)

58

(Ordinary dividend: 53 yen) (Special dividend: 5 yen)

As performance for the fiscal year ending March 31, 2026 is expected to improve compared with the performance and dividend forecast announced most recently on October

FY2025 Forecast

(as of February 5)

24 31 55

31, 2025, we plan to increase the year-end dividend by ¥7 from the previous forecast to ¥31 per share. As a result, the annual dividend is expected to be ¥55 per share.

Difference ▲1 ▲2 ▲3

Go to P.22 for details

Financial Results by Consolidated and Segments

*1Compliant fuel oil (Very Low Sulfur Fuel Oil)

Operating Profit (FY2024 3Q vs FY2025 3Q)

（Billion Yen）

16

14

13.7

Chemical Tanker

12

Oil Tanker Medium and

Decreased

3.3 Billion Yen

▲2.8

10

Small Gas

Carrier

▲0.4 ▲0.3

Large Gas Carrier

▲0.3

0.6

0.2

Dry Bulk Carrier

Real Estate

Others

▲0.3

10.4

8

6

4

0

FY2024 1Q - 3Q

FY2025 1Q - 3Q

Oil Tanker ▲0.4

Profit decreased year-on-year due to a reduction in vessel operational days caused by dry-docking.

Chemical Tanker

▲2.8

Amid uncertainties in the global economy, including a slowdown in the Chinese economy, market conditions softened year-on-year.

Large Gas Carrier ▲0.3

Market conditions remained firm, and the completion of a newly built vessel contributed to earnings. However, profit decreased due to reduced utilization of a certain vessel that was sold at the end of the previous fiscal year.

Dry Bulk Carrier +0.2

Although market conditions, which had been strong from summer through autumn, softened toward the end of the year, they remained above the levels seen in the same period of the previous year.

Medium and Small Gas Carrier

Profit decreased due to overlapping maintenance repair work associated with dry-docking of multiple vessels.

2

▲0.3

Real Estate +0.6

Profit increased as office floors continued to operate smoothly, and stable earnings were maintained due to the absence of initial costs related to the acquisition of the second UK property that had been recorded in the same period of the previous fiscal year.

1 2 3 4 5 6 7 8 9

Other ▲0.3

Profit decreased year-on-year due to the appreciation of the Japanese yen and other factors.

The Adventure To Our Sustainable Future

‌Financial Forecasts for FY2025

‌Financial Forecasts for FY2025

Oil tankers, Dedicated carriers and Woodchip carriers comprise only medium- and long-term contracts that are not affected by market conditions.

Dedicated and Woodchip Carriers 0 %

0 %

31 %

14 %

62 %

Oil Tankers Chemical Tankers*7Large LPG Carriers

Panamax and Small Handy Dry Bulk Carriers

Ratio of Market Exposure (Spot*⁶) in Fleet

（As of Oct 31, 2025; updated at the time of 2Q and 4Q financial results）

*¹ Compliant fuel oil (Very Low Sulfur Fuel Oil)

*² The actual figures are based on the 1-year Time Charter Rate for Stainless Steel Chemical Tankers (Source: Clarksons Research). Beginning with this period, the reference data have been changed to 19,900 dwt ECO vessels, and past figures have also been retrospectively adjusted.

*3The actual result refers to the VLGC spot rate published by Clarksons Research. *4The actual result refers to the Pacific Round data from the Tramp Data Service. *5Exchange rate sensitivity excludes foreign exchange gains/losses

*⁶ Contract on a per-voyage basis. (not long-term) *7Not including time charter and other vessels

Operating Profit (FY2024 vs FY2025 Forecasts (As of February 5))

Breakdown of Operating Profit Changes

FY2024 vs FY2025 Forecasts

（Billion Yen）

Oil Tanker ▲0.2

Chemical Tanker ▲3.9

Large Gas Carrier ▲0.2

Profit decreased due to a reduction in vessel operational

（Billion Yen）

20.0

18.0

17.1

Chemical Tanker

16.0

14.0

Medium and

Decrease 4.7

billion yen

▲3.9

Oil

Tanker

▲0.2

Small Gas Large

12.0

Carrier

▲0.3

0.6 Others

Gas Carrier

▲0.2

0.1

Dry bulk Carrier

12.4

Real Estate

▲0.6

10.0

8.0

6.0

4.0

2.0

0.0

FY2024

FY2025(F)

days caused by dry-docking and an increase of vessel-related

expenses.

Profit decreased due to softer market conditions compared to the previous fiscal year, reduced vessel operational days following a sale of a vessel, and the downward revision of COA scheduled for renewal.

Although market conditions remained firm and a newly built ethane carrier entered service, profit decreased due to reduced utilization of a certain vessel that was sold in the previous fiscal year.

Dry Bulk Carrier +0.1

Benefiting from strong market conditions through the third quarter, profit increased compared with the previous fiscal year.

▲0.3

Medium and Small Gas Carrier

Real Estate +0.6

Profit decreased due to a decrease in operating days, primality caused by an increased number of vessels undergoing dry-docking and the redelivery of certain vessels.

Profit increased due to the absence of acquisition-related expenses for the second UK property, which had been recognized in the previous fiscal year, as well as improved earnings from domestic building operations, etc.

1 2 3 4 5 6 7 8 9

Other ▲0.6

Profit decreased due to the appreciation of the yen compared with the previous fiscal year.

The Adventure To Our Sustainable Future

‌Market Forecasts for FY2025 (Jan. to Mar. 2026)

Chemical Tanker Market Forecast for FY2025 (Jan. to Mar. 2026)

Chemical Tanker Spot Rate Index

Source: Clarksons

Although there are factors providing support for market conditions, they are expected to soften year on year due to the slowdown in the Chinese economy and the impact of U.S. tariffs.

• Deliveries of new chemical tankers remain limited, and the inflow of newly built vessels into the market continues to be constrained. As of the end of FY2025, the orderbook stands at approximately 2.8% of the existing fleet.

  ($/MT) for freight

  200

  Chemical Tanker Freight Rate

  ($/day)

  for TC Rate

  30,000

  160

  25,000

  20,000

  120

  15,000

  80

  10,000

  40

  【Left】15kmt Arabian Gulf / Main Ports in Far East

  【Left】15kmt Arabian Gulf / Rotterdam

  【Right】1yr TCRate 19,900 dwt Stainless -ECO*¹

  5,000

  0 0

  Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Jul-25 Jan-26

  *¹ From 3Q 2026, the reference data has been changed to the 19,900 dwt ECO vessel, and past data has also been revised retroactively.

• Ongoing instability in the Red Sea region has continued to necessitate diversion routes via the Cape of Good Hope. As a result, sailing distances have lengthened, which has become a supporting factor for market conditions.

• Although there are concerns over weaker demand in the competing product tanker market due to the slowdown in the Chinese economy, market conditions have remained resilient, supported in part by the tightening of sanctions, including those imposed on Russia. As a result, inflows into the chemical tanker market are expected to remain limited.

• Concerns remain over the impact of a prolonged slowdown in the

Chinese economy and U.S. tariff policies on the global economy.

(Compiled by the Company from various sources)

Chemical Tanker Market Data for FY2025 (Jan. to Mar. 2026)

https://

www.a

strisad

visor

y.com/

ja/ab

ut-2

Existing Vessels and Orderbook of Chemical Tanker and product Tanker (MR)

Existing Vessels

Orderbook

Type of Vessel

End of End of End of 2023 2024 2025

2026

(Jan. to Dec.)

Existing Vessels vs.

2027

2028~

Total

Total

Or ok

derbo

*Handy: 10-54,999DWT / Small: <10,000DWT

Source: Clarksons

(Compiled by the Company from various sources)

Chemical tanker supply/demand

10%

5%

0%

-5%

-10%

Chemical tanker supply

IMO-class fleet supply Demand（tonne mile）

-15%

2021 2022 2023 2024 2025 2026(F)

*IMO-Class fleet supply: Includes product tanker capable of carrying chemical products

*Chemical tanker supply: Vessels in the IMO-Class fleet carrying chemical products

(Million Tonnes) Seaborne Trade

400

Organics Inorganics*

Veg/Animal Oils & Fats Other Cargoes**

300

200

100

0

2021

2022

2023

2024

2025

2026(F)

* Three main inorganic chemicals only - phosphoric acid, sulphuric acid, caustic soda solution

** Estimate of trades in "other" cargoes e.g. lube oils, potable alcohols etc.

($/t)

100

Palm Oil* Freight Rate

70

Straits/WC India

East Malaysia-Mid China

40

10

Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Jul-25 Jan-26

*One of the cargoes carried by chemical tankers on the return voyage (backhaul) Middle East - Far East route

($/day)

50,000

MR tankers Freight Rate

40,000

Clean MR Avg. Earnings

Clean 47-48k 12month T/C Chem 19k STS 12month T/C

30,000

20,000

10,000

0

Jan-24

Jul-24

Jan-25

Jul-25

Jan-26

Large Gas (LPG) Carrier Market Forecast for FY2025 (Jan. to Mar. 2026)

(Compiled by the Company from various sources)

($/ton)

VLGC Spot Market

（Middle East - Far East）

150

100

50

0

Feb

Apr Jun Aug

2024 2025

Oct

2026

Dec

Owing to factors such as seasonal winter demand and the limited supply of newly built vessels in the fourth quarter, market conditions are expected to remain firm.

• From the second half of 2025, supported by a seasonal recovery in winter demand in China and India, exports from the United States to Asia were generally firm, and the VLGC market remained relatively resilient.

  LPG Seaborne Trade

  (Million tonnes)

  160

  (Growth rate)

  10%

  LPG % growth

  120

  8%

  6%

  80

  4%

  40

  2%

  0

  0%

  2021 2022 2023 2024 2025 2026(F)

• Heightened cargo movements in the United States also led to a tightening of vessel supply in the Middle East region, thereby supporting market conditions at elevated levels.

• While the large volume of new vessel deliveries in 2026 remains a concern, limited newbuild inflows in the fourth quarter of FY2025 are expected to keep fleet capacity tight, supporting continued firm market conditions.

  Dry Bulk Carrier Market Forecast for FY2025 (Jan. to Mar. 2026)

  Dry bulk carrier spot charter rate ($/day)

  Panamax

  (82,000DWT / Average of 4 trip charter routes)

  Handysize

  (38,000DWT / Average of 6 trip charter routes)

  25,000

  25,000

  20,000

  20,000

  15,000

  15,000

  10,000

  10,000

  5,000

  5,000

  0 0

  Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

  2024

  2025

  2026

  2024

  2025

  2026

  Due to factors such as China's agreement to import U.S.-origin grains, as well as the expected commencement of South American grain shipments in early spring, market conditions are projected to move into a recovery phase.

  (Compiled by the Company from various sources)

  • From summer through autumn, continued imports of South American grains by China, together with resilient coal demand, supported a gradual market recovery. However, toward the end of 2025, an easing of supply-demand conditions led to a downturn in market conditions.

    Dry Bulk Seaborne Trade

    (mil. MT)

    5,000

    Coal Iron ore Grain Minor bulks

    4,000

    3,000

    2,000

    1,000

    0

    2021

    2022

    2023

    2024

    2025

    2026(F)

  • On the supply side, amid the continued restrictions on navigation through the Red Sea, the increase in ton-mile demand resulting from detours via the Cape of Good Hope is expected to continue, providing underlying support for market conditions.

  • Against the backdrop of China's agreement to import U.S. grain and the anticipated start of South American grain shipments in early spring, market conditions are expected to move toward recovery.

The Domestic (Central Tokyo) Office Market Forecast for FY2025 (Jan. to Mar. 2026)

(Compiled by the Company from various sources)

Office Vacancy Rate

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Dec-23

Jun-24

Dec-24

Jun-25

Dec-25

Yen/Tsubo

¥35,000

Office Rents

Tokyo 5 District Chiyoda-Ku

Tokyo 5 District(New Building)

¥30,000

¥25,000

¥20,000

¥15,000

Dec-23

Jun-24

Dec-24

Jun-25

Dec-25

With vacancy rates continuing to decline and average rents on the rise, market conditions are expected to remain firm.

• The office leasing market in central Tokyo remains firm, with vacancy rates continuing to decline and average rents trending upward.

• Demand continues to be underpinned by corporate initiatives to enhance employee comfort and secure highly skilled talent, driving the need for higher-quality office space in terms of layout, location, and building grade. As a result, the shortage of available existing office space in central Tokyo has become increasingly pronounced.

  110

  Tokyo Central 5 District Real Estate Market Outlook

  15.0%

  90

  10.0%

  70

  5.0%

  Rent Index Vacant Rate

  50

  0.0%

  2022 2023 2024 2025(F) * 2026(F)

  Source: Japan Real Estate Institute

  *As this information is current as of May 2025, figures for 2025 are projections.

• On the supply side, a clear bifurcation in competitiveness among office buildings has emerged, driven by factors such as area, location, building age, and facilities. However, no new large-scale office developments are scheduled for completion in central Tokyo during the fourth quarter of FY2025, and market tightness is therefore expected to intensify further.

• Vacancy rates are expected to remain at extremely low levels, while average rents are forecast to continue their upward trend.

‌Mid-term Management Plan (FY2023-2025)

For more information for the Mid-term Management Plan "The Adventure to Our Sustainable Future" (URL)

Status of Achievement of Major Numerical Targets (KPIs)

（Billion Yen）

※a The figures for FY2020 and FY2023 intensity have been revised due to the third-party verification received in October,2024. Accordingly, the reduction rate for FY2021 through FY2023 have been retroactively revised. The figures for FY2024 reflect the results verified by the third-party assessment.

※b The figures for fFY2023 and FY2024 have been revised following third-party verification.

*¹ Operating Profit + Depreciation + Dividend Income and Equity in Earnings of Affiliates of main business investments *² Net Operating Prlofit After Adjusted Taxes÷ Invested capital *³ Serious accidents stipulated by the company (Vessels, Buildings and Information Systems)

*⁴ 2030 reduction targets cover Scope 1 and 2, and are based on intensity (freight ton-miles) for the shipping business and on total volume for the real estate business. Targets for 2050 include Scope 3. *⁵ All of the KPI values are for land-based positions at the Company without consolidation. Human capital strategies will be promoted throughout the IINO Group.

‌Status of Numerical Financial Targets (Details)

（Billion Yen）

*¹ Unit price of Very Low Sulfur Fuel Oil (in Singapore)

*² Operating Profit + Depreciation + Dividend Income and Equity in Earnings of Affiliates of main business investments

*³ Net Operating Profit After Adjusted Taxes ÷ Invested Capital

‌Promote Action to Implement Management that is Conscious of Cost of Capital and Stock Price

Policy

* A unique business model that combines the shipping industry, which is large market fluctuations,

with the real estate industry, which is relatively small market fluctuations

Based on the business portfolio policy based on IINO MODEL*, we will improve ROIC, which has been added as a new management indicator, by allocating management resources to growth and new businesses with emphasis on expanding earnings and further strengthening core businesses and stable and mature businesses. To pursue ROIC higher than WACC and increase EVA spread, which is the difference between WACC and EVA spread, to enhance profitability and achieve sustainable growth and increase corporate value, we will steadily and speedily advance the three-year mid-term management plan formulated in May 2023.

Analysis of Current Situation

• At the end of FY2024, ROIC and ROE stood at 7.5% and 13.2%, and at the end of FY2025, ROIC and ROE are projected to be 5~6% and 9~10%, which is higher than our perceived cost of capital.

• Driven by expectations for improved business performance, our share price has been rising, and the PBR is currently trading at around 1.07 times.

  Net sales ・ Operating profit ・ Ordinary profit ・ Net income

  
  
  

  (Billion Yen) (Billion Yen)

  ROE・ROIC・PBR*¹

  Operating profit(Right) Ordinary profit(Right) Net income(Right)

  Net sales(Left)
  
  

  160

  120

  80

  40

  0

  25

  20

  15

  10

  5

  0

  FY2021 FY2022 FY2023 FY2024 FY2025(F)

  	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025 Forecasts
  ROE	10％	14.6％	23.3％	16.3％ (9%)*²	13.2% (9~10%)*²	9~10% (9~10%)*²
  ROIC	4.3%	6.4%	11.2%	8.6% (4.5%)*²	7.5% (4~5%)*²	5~6% (4~5%)*²
  PBR	0.70	0.96	0.96	0.98	0.72	1.07 (as of Feb 4, 2026)

  *¹ PBR= Stock Price / Net assets per share *² Figures in parentheses for ROE and ROIC are planned values in the mid-term management plan.

  Policies and measures for improvement

  The reduction of WACC

  • Reduction in cost of shareholders' equity

    Strengthen IR/SR through interviews and other communication channels, enhance information disclosure, and drive ESG initiatives such as reducing greenhouse gas emission, improving corporate governance and others.

  • Financial Strategy

  Optimize capital structure through competitive capital procurement, aligning with the business environment and strategies. Prioritize capital efficiency and return excess capital to shareholders.

  • Business Portfolio Strategy

  During this mid-term plan, we have positioned the promotion of business portfolio management as a key management strategy, and plan to invest a total of 100 billion yen (of which 60 billion yen will be invested in environment-related). Evaluate each business from a medium- to long-term perspective based on the two axes of growth potential and return on invested capital (ROIC), and allocate management resources in a balanced manner.

  growth strategies

  Business expansion through

  Improve ROIC
  	Aim to maximize and stabilize earnings by developing new route, improving ability to gather cargoes, efficient vessel allocation, and improving vessel and building management quality, and in addition, promote initiatives with an awareness of synergies among businesses. Aim to enhance DX and human capital, improve productivity through operational improvements, etc.

  • Increase in revenue

  • Reduction of expenses

  Change in Dividend Policy

Investment Progress

• • The mid-term management plan (FY2023-FY2025) positions the promotion of business portfolio management as a key management strategy, and plans to invest a total of 100 billion yen. (60 billion yen is planned to be invested in environment-related project.)

  • While investment progress varies across business segments, we expect to achieve the ¥100 billion target set out in our mid-term management plan, including projects that have not yet received final approval.

    
    
    

    Progress Rate： 81％

    Main Initiatives ：

• Two Very Large Ethane Carriers ★

  Growth and New Businesses

• Ice Class VLGC ★

  Core Businesses

  Progress Rate： 111％

  Main Initiatives ：

  ・Two Chemical Tankers completed in FY2025

  ・Chemical tanker completed in FY2027

• LPG dual-fuel VLGC "OCEANUS AURORA"

• Norsepower Rotor Sails installed on

  VLGC "OCEANUS AURORA" ★

• Ammonia Carrier "GAS INNOVATOR" ★

• Invest in venture capital

Strategic Investment

10 billion yen

Large Gas Carriers

40 billion yen

Dry Bulk Carriers

Chemical Tankers

• Rotor Sail installed on Dedicated Coal

  Carrier "YODOHIME" ★

  ・Purchase of Secondhand Chemical Tanker etc.

• Akita Sarukawa Solar Power Plant Ploject ★ etc.

  Market growth Potential

  +

  Materiality relevance

  also taken into

  50 billion yen

  Low-profit and Low-

  growth Businesses

  Be conscious of synergies in each business

  20 billion yen

  Stable and Mature Businesses

  Oil Tankers

  Progress Rate： 140％

  Main Initiatives ：

• Large Methanol Dual-fuel Crude Oil Tanker ★

  account

  Real

  Estate

  Short-sea/ Domestic Gas Carriers

  • Domestic Gas Carrier delivered in FY2024

  • Wooden Office Building in Dallas ★

  • Redevelopment Project in Portland

    30 billion yen

    Return on invested capital (ROIC) rate

    • 111Strand in UK ★

    • Additional acquisition of an ownership interest in

Hibiya Fort Tower ★ etc.

★ environment-related investment

Cash Allocation (FY2023~FY2025)

• Based on the latest earnings forecast for fiscal year 2025, operating cash flow is expected to increase by ¥1.0 billion compared with the previous outlook, while cash inflows

  from investment recovery are projected to rise by ¥2.5 billion, primarily due to the disposal of vessels.

• Shareholder returns are expected to exceed the mid-term management plan by ¥5.5 billion, driven by upside in earnings, the payment of a special dividend, and the increase in the dividend payout ratio to 40%. (The year-end dividend for the fiscal year ending March 31, 2026 will be paid in fiscal 2026 and is therefore not included in total shareholder returns of ¥18.5 billion.)

• The additional investment capacity is positioned as financial flexibility to prepare for future growth investment opportunities. We will continue to review its use, taking into

account future investment conditions and developments.

Mid-term Management Plan (as of May 2023)

Previous Forecast (as of May 2025)

Latest Forecast (as of February 2025)

‌Shareholder Returns (Dividends)

We have decided on a dividend policy based on a payout ratio of 40% for the full-year business performance for the fiscal year ending March 2026, which is the final fiscal year of the current mid-term management plan. For the dividend per share for the fiscal year ending March 2026, based on the expected improvement in business performance and the basic policy described above, we have decided to increase the year-end dividend to 31 yen per share, an increase of 7 yen from the most recent forecast. As a result, the annual dividend is expected to be 55 yen per share, including the interim dividend.

30％

40％

Interim Dividend (Yen)

Year-end Dividend (Yen)

Payout Ratio (%)

Payout Ratio

50.0%

38

Including special

33

31

60 dividend of 5 yen

40.0%

31

40

24

25

30.0%

30.4%

27

20

0

FY2020 FY2021 FY2022 FY2023 FY2024 FY2025(F)

*¹ Actual figures before applying retrospective adjustments due to changes in accounting policy.

30.0%

20.0%

Dialogue with Investors

We aim to reduce the cost of shareholders' equity by strengthening IR & SR (dialogue with investors through interviews, holding financial results briefings, appropriate information disclosure, etc.) to ensure that our shareholders properly understand and evaluate our characteristics and situation.

Number of Interviews (Domestic / Overseas) Status of Feedback to Management

*¹ Approximately 20 additional investor meetings are planned to be held by the end of FY2025; of these, the President

is expected to attend 12 meetings, while Outside Directors are expected to participate in 11 meetings.

Main Themes of Dialogue and Issues of Interest to Shareholders

Enhance Disclosure/Promote Other Initiatives

★indicates main items that have been incorporated based on investor feedback.

Enhancement of Information Disclosure

• Promote Action to Implement Management that is Conscious of Cost of Capital and Stock Price

• Expansion of contents of the Supplementary Reports for financial results

  • Market Assumption of Chemical Tanker and Large Gas (LPG) Carrier★

  • Chemical Tanker Spot Rate Index

  • Investment Progress★

• Renewal of our website, including the IR section

  Other Initiatives

• Implementation of a Special Dividend and revision of the Dividend Payout Ratio

‌Sustainability and Business Topics

Business Infrastructure Strategy

Allocate Management Resources to

Growth Businesses

Expansion of Global Business

Promotion of Environmental Initiatives and Investments

Acceleration of DX

社会的価値の創

Formulation and Implementation of Plan to Realize a Decarbonized Society

Strengthening of Human Capital

造

Addressing Respect for Human Rights

Strengthening governance

Ship and building management quality improvement

Improve cost competitiveness

Achieved an "A-" Rating for the Fourth Consecutive Year in CDP 2025

We received an "A-" rating for the fourth consecutive year in the CDP 2025 Climate Change Questionnaire conducted by CDP (Carbon Disclosure Project), an international environmental non-profit organization. An "A-" rating represents the Leadership level and is the second-highest score, following the top rating of "A," recognizing companies with advanced initiatives and high-quality disclosure related to climate change.

This evaluation reflects the Group's leadership-level efforts to reduce greenhouse gas (GHG) emissions and advance the realization of a decarbonized society across both its shipping and real estate businesses. In addition, the Company also received an "A-" rating in CDP's 2025 Water Security Questionnaire.

Creating Social Value

Creating Economic Value

Initiatives and progress until January 2026

The Second VLEC for INEOS was delivered in January 2026

We are pleased to announce that the second of two dual-fuel Very Large Ethane Carriers (VLECs), named "IINO INEOS SUNNA" and to be chartered out to INEOS Europe AG on a long-term time charter contract, has been delivered by HD Hyundai Heavy Industries Co., Ltd.

Same as the first vessel, "IINO INEOS VESTÁ" which was delivered in September 2025, the Vessel is equipped with a dual-fuel main engine and has a significantly lower CO₂ emissions than conventional heavy fuel oil-powered vessels.

In our mid-term management plan, we have set a goal to achieve carbon neutrality by 2050.

In line with this vision, we are actively investing in alternative fuels. We will contribute to the realization of a sustainable society through the continued introduction of environmentally advanced vessels.

Sustainability / ESG and DX Promotion Initiatives

E S

Establishment of the IINO Group Sustainability Policy in March 2024

Responding to Climate Change

-Norsepower rotor sails (a wind propulsion system) have been installed on two vessels.

-Procurement of credits and acquisition of "Saitama Prefecture Forest CO₂ absorption certificate.

-Commencement of Operations at a Solar Power Plant (as a joint project with JAPEX).

-Received an A-minus rating in CDP2025.

Waste Reduction Initiatives

-Mineral water production equipment has been installed on 30 vessels.

-NS Toranomon Building receives "Minato City trash cutting excellent enterpriser aCity".

Preserving Biodiversity

-After the signing of the Saitama Prefecture Forestation Agreement in February 2023, tree-planting events were held every year.

-Participation in the Task Force on Nature-related Financial Disclosures (TNFD) Forum and registration for TNFD Adopter.

-Implemented disclosures aligned with the four pillars of the TNFD recommendations-Governance, Strategy, Risk and Impact Management, and Metrics and Targets.

Strengthening Governance

-Since June 2023, outside directors have accounted for 50.0% of the Board, and female directors have made up 25%.

-Continue to comply with TSE Prime Market standards.

-Additional to the existing executive compensation system. ⇒For details

1. Performance -linked remuneration based on the score assigned by the CDP score, an international NPO that supports environment disclosure.

2. Bonuses paid in consideration of the occurrence of major accidents.

Anti-Corruption Initiatives

-IINO Joined Maritime Anti-Corruption Network.

-In February 2024, IINO Group Competition Law Compliance Policy was established.

(Competition Law training was conducted in July 2024)

-In February 2024, established external whistleblower system.

Other Initiatives

-Publication of the status of dialogue with Investors (FY2024). ⇒ For details

-The progress of initiatives under "Promote Action to Implement Management that is Conscious of Cost

of Capital and Stock Price" has been disclosed on P.19-23 of the Supplementary Report for Financial Results FY2025 3Q.

Strengthening human capital

-Set KPIs for strengthening human capital in line with priority strategies of mid-term management plan.

-Conducted 3rd engagement survey for employees in December 2025. The attendance rate currently under calculation.

We will use the results of our analysis to identify internal needs and improve employee engagement.

Respect for human rights

-Conducted supplier survey in 2024. We will continue to conduct this regularly and approach any business partners deemed to be high-risk.

-Conducted awareness training for Group executives and employees in FY2025

which is listed as a KPI in the mid-term management plan. (Rate of acceptance in 2024: 100%/ KPI:100%)

Social Contribution Initiatives

-The lunchtime concert is held at the IINO Building once a month.

-In September 2023, established IINO Group Social Contribution Policy.

-Sponsored the Hibiya Gardening Show for three consecutive years.

Creating a Good Workplace

G

DX

-New dress code was applied. - Expanded floor space and renovated the head office.

-Received WELL Precertification under the WELL Building Standard .

Promotion of Maritime Innovation

-To maximize safe operations, voyage profitability, and reduce environmental impact, the Voyage Optimization system has been introduced on chemical tankers.

-Panel discussion on maritime innovation held at the "Plug and Play June Summit in Silicon Valley," an

event that brings together startups and investors.

2023-2025年度 2030年度

新中期経営計画期間

DX推進

・船舶・ビル管理の品質向上

・ESG推進サポート

・競争力強化のための事業変革 独 自の発想力を活かした変革を継続

・新たな価値創造のための協業

・プロセスイノベーション

・プロダクトイノベーション

Utilization of Generative AI

-To streamline operations and improve productivity, we held an internal study session on generative AI and promoted its company-wide use.

-We have begun creating business support tools using generative AI.

Development of Digital Infrastructure

-Starlink* installed and operational on 33 company-managed vessels.

*satellite internet that enables high-speed data communication between ship and land.

-AI security system 'AI Security asilla / asilla BIZ' introduced at IINO Building.

-The initial construction of a talent management system has been completed.

The system will integrate personnel information and be used to achieve higher-level HR

strategies.

‌Reference: Business Performance

Consolidated Net Sales and Profits / Operating Profit by Segment (By Fiscal Year)

141.3

141.9

138.0

127.0

23.4

104.1

21.8

20.9

20.0

19.1

19.7

17.117.4

18.4

12.5

14.8 14.4

12.4

9.4

7.5

(Billion Yen) 30

(Billion Yen)

Operating Profit Ordinary Profit Net Income Net Sales

150

(Billion Yen)

Oceangoing and Short-sea/Domestic Shipping

Real Estate

16.2

15.5

13.6

8.5

4.2

3.4

3.8

3.5

4.0

3.5

15

20 100

10

10 50

5

0 0 0

FY2021 FY2022* FY2023 FY2024 FY2025(F)

FY2021 FY2022* FY2023 FY2024 FY2025(F)

*Results are retrospectively adjusted due to changes in accounting policy

Operating Profit by Segment by Quarter

Shipping Business Real Estate Business

(Billion Yen)

Operating Profit 4-Quarter Moving Average

1.1 1.2

0.9

1.0 1.0 1.1 1.0

1.0 1.0 0.9

1.0

1.0

1.0 1.1 1.1

0.9

0.7

0.7 0.5

5.6

4.6

3.6

2.6

1.6

0.6

(0.4)

FY2021 FY2022* FY2023 FY2024 FY2025 FY2021 FY2022 FY2023 FY2024 FY2025

*Results are retrospectively adjusted due to changes in accounting policy

Consolidated Equity Ratio/ Share Price and Market Capitalization / Consolidated Cash Flow

(Billion Yen)

265.5

14.6%

Total Assets

Shareholders' Equity Ratio

47.5%

44.2%

36.9%

346.6

293.2

306.4

247.1

Shareholders' Equity ROE

41.6%

23.3%

45.0%

16.3%

13.2%

91.3

110.7

132.1

145.5

153.1

400

350

50%

(Billion yen)

300

250

200

150

100

50

0

Market Value

Share Price

1,418

1,226

1,004

997

154.4

826

133.5

(Billion Yen) 200

150

FY2021 FY2022 FY2023 FY2024 FY2025 3Q

2025

1H

2024

2023

2022

2021

Fiscal Year

Share Price(Yen)

1,500

1,000

100

50

0

End of FY2021 End of FY2022 End of FY2023 End of FY2024 FY2025 3Q

(as of Dec. 30)

500

0

* From FY2027 onwards, the application of the new lease accounting standards is expected to result in the inclusion of off-balance-sheet charter fees. If applied at the end of FY2023, the impact amount would be approximately 40 billion yen, with an equity ratio of about 40%. Please note that this figure is an estimate calculated by our company based on certain assumptions and may differ from the actual figures when the standard is formally applied.

※The Group secures sufficient funding instruments from commercial bank and it is expected the Group can raise necessary funds for business expansion, working capital and capital investment. In addition, the Group has concluded commitment line contracts including multiyear contracts of 18 billion yen in total and US$60 million in domestic bank to complement liquidity.

‌Reference:

Status of Facilities and Investment Plan