Economic Indicators and Efforts for Sustainability
Business Strategies _ Ship Related I
Environment Surrounding Ship Owners
Amid large fluctuations in foreign exchange and interest rates as well as market conditions, investment
decisions remain difficult for ship owners due to soaring costs of producing new ships and ship management.
Ship Owners' Business Status
Favorable factors
Ongoing weaker yen, up more than ¥20 in six months
✓ Continuing low yen interest
Decrease in supply of small and mid- to small-sized bulkers
✓ Extension of cargo transport distance due to geopolitical
events
Concerns
Sharp increase in U.S. dollar interest
Continued high price of steel and materials
Decrease in demand of cargo transport due to global
economic slowdown
Sharp decline in container freight rate in last few months
Environmental regulations
IMO has adopted a goal of reducing total GHG emissions by 50% by 2050.
"Strategy on the reduction of GHG emissions" by IMO
2008
Base year of
emissions
2023
2030 Target
40% efficiency
improvement
2050 Target
50% reduction in
total emissions
Long-term Target up to 2100
GHG zero emissions
(Note) IMO: International
Maritime Organization
(Note) GHG: Greenhouse Gas
New regulations on energy efficiency targeting existing ships will start
in 2023 to achieve the 2030 target
Our Loan Policies in Line with Solutions in Preparation for Risks of Market Condition
Downturn
Emphasis on a portfolio not overly depending on short-term charters/charters related to market condition
and asset value of ships held
Proposing derivatives, etc., that prepare for risks of future fluctuation in foreign exchange and interest rates
Emphasis on long-term relationships and make judgements on customers' comprehensive ability in a
multilateral manner
Financial position,
operating balance
and market value
Comprehensive
ability
Solid relationships
Management
policy and future
prospects
Determine policies on investments and
loans by making judgements on
customers' comprehensive ability
Efforts to Support Decarbonization
in Ocean Transport
Loans for ships manufactured by Japanese
shipbuilding yards that have high fuel efficiency
Initiatives on loans for LNG dual-fuel ships
Loans for ships following the regulations on energy
efficiency starting 2025 in advance
Initiatives for Sustainability Linked Loans (March
2021) and Transition Loans (September 2021)
Efforts toward matching energy saving device
manufacturers with ship owners
Ratio of ships designed with environmental
initiative in mind in loan cases decided
EEDI Phase 3
38.1%
42.6%
19.3%
Dual-fuel Ships
(LNG, LPG and Methanol)
Conventional Ships
and Used Ships
*Within ship-related cases approved in the recent 6 months
Assets with quick turnover rate
Decarbonization in Ocean Transport and Asset Value of Ships
Relatively high environmental performance
Domestic ships on our loans are on average 5
years old and are mostly manufactured in
Japan, and have relatively high fuel efficiency
Loans for ships, in principle, have a maximum
period of 15 years after manufacture, and most
ships are sold by around 10 years old, resulting in a
quick renewal cycle for the assets
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