Annual Report 2010(PDF/2905)

ANNUAL REPORT 2010
For the fiscal year ended March 31, 2010
Shinwa Kaiun Group

Profile
Spanning the Oceans of the World with Safe,
Environmentally Sound Transport
Since its establishment over 40 years ago, Shinwa Kaiun has been engaging in worldwide logistics.
We have endeavored to develop finely tuned services in response to ever-changing needs of customers,
thereby accumulating optimal transport expertise towards realizing our ultimate fundamental objective of
providing “Reliable Worldwide Shipping.”
With high priority on safe navigation and conservation of the global environment, Shinwa Kaiun will
continue to chart new directions into the future.
Iron Ore
and
Coking Coal
Transport Service
Oil/Gas
Transport
Service
Our
Core Businesses
Coal/Bulk
Transport
Service
Near Sea
Service
Tramp
Chartering
Service
Contents
Profile
Consolidated Financial Highlights
To Our Stakeholders
About the Merger with Nippon Steel Shipping Co., Ltd. (October 1, 2010)
Our Major Vessels and Plan for Future Development
Sectoral Overview
Management Structure
Corporate Social Responsibility
Management’s Discussion and Analysis
Consolidated Financial Statements (Summary)
History
Corporate Data
1
2
3
4
5
7
9
10
11
13
16
17
Disclaimer Regarding
Forward-Looking Statements
This annual report contains forward-looking statements related to
management’s expectations about future business conditions. Actual
business conditions may differ significantly from management’s expectations
and accordingly affect the Company’s sales and profitability. Actual results
may differ as a result of factors over which the Company has no control,
including unexpected changes in competitive and economic conditions,
government regulations, technology and other factors.
On the cover: The 51,241dwt CHAVIN QUEEN is a Handy bulk carrier that joined the SHINWA fleet in November 2009.
1
Shinwa Kaiun Group Annual Report 2010

Consolidated Financial Highlights
Millions of yen
Years ended March 31, 2010 and 2009 2010 2009
For the year:
Revenues ¥ 95,106 ¥ 132,799
Operating income 4,796 13,168
Ordinary income 4,053 12,498
Income before income taxes 1,438 10,924
Net income 1,215 6,689
Per share data (yen):
Net assets per share 284.59 262.98
Net income per share 7.50 41.31
At year-end:
Total assets 114,370 107,009
Net assets 47,938 44,225
Revenues
Operating Income
and Net Income
Total Assets
and Return on Assets
Net Assets
and Return on Equity
Millions of yen
Millions of yen
Millions of yen
Millions of yen
Operating income
Net income
Total assets
Return on assets (%)
Net assets
Return on equity (%)
150,000
25,000
120,000
20
50,000
75
120,000
20,000
90,000
15
40,000
60
90,000
15,000
30,000
45
60,000
10
60,000
10,000
20,000
30
30,000
5,000
30,000
5
10,000
15
0
0
0 0
0
06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10
0
Shinwa Kaiun Group Annual Report 2010 2

To Our Stakeholders
I assumed the post of President/President Executive
Officer as of April 1, 2010. I am pleased to report
business results for the fiscal year ended March 31,
2010 (FY 2010).
At the beginning of 2009, we set up the
Emergency Countermeasure Committee headed by
the former president, with the aim of preventing the
company from falling into deficit. We bolstered the
financial balance sheet through measures such as the
early return of high-cost chartered vessels. At the
same time, we reviewed our fleet scale, investment
and manpower plans, reduced costs and improved
the management and operational efficiency. We
addressed the issue of internal controls, since safe
navigation is our utmost priority.
We were able to upwardly revise our initial
full-year forecast for consolidated ordinary income
due to a considerable contribution from the
unexpectedly robust dry bulk market, particularly
in the capesize bulk carriers, which was supported
by iron ore imports by China, together with our
efforts to improve ship deployment efficiency.
However, in light of the uncertainty clouding the
outlook for our business environment, we have
decided that our best strategy for building a more
solid business foundation is to further reinforce
the competitiveness of our fleet by implementing
the early return of high-cost chartered vessels.
Consequently, we reported early cancellation
fees on charter contracts and so forth as an
extraordinary loss, and income before income taxes
dropped to a low level.
Carefully considering an appropriate return of
profits to shareholders, the Company’s financial
standing, and other factors, we have decided to pay
a year-end dividend of two yen per share for FY
2010.
On October 1, the Company decided to merge
with Nippon Steel Shipping Co., Ltd., with the
Company being the surviving company. The new
corporate name is NS United Kaiun Kaisha, Ltd.
While our comprehensive strength is supported by
our client base with long-term contractual
relationships and our broad business portfolio,
which includes natural resources and energy
transportation, the strength of Nippon Steel
Shipping is based on its high expertise in the
transportation of raw materials and fuel for the iron
production industry, as the industrial carrier for
Nippon Steel Corporation. By combining the
respective strengths of both companies, we aim to
further increase our corporate value while
responding in a timely fashion to future changes in
the business environment.
I will assume the position of Representative
Director/Vice President Executive Officer of NS
United Kaiun Kaisha, Ltd.
Your continued support for Shinwa Kaiun and
the Shinwa Group is highly appreciated.
June 25, 2010
Hiroshi Sugiura, President
3
Shinwa Kaiun Group Annual Report 2010

About the Merger with Nippon Steel Shipping Co., Ltd. (October 1, 2010)
Basic concept of the merger
(a) Increased competitiveness due to the combination and expansion of the Companies’ fleets.
(b) Expansion of ability to deliver fleets.
(c) Further accumulation of technological skills.
(d) Improvement in profitability and efficiency and cost reduction.
(e) Securement of reliable source of ship crew.
Outline of the merger and change of the corporate name
Summary of the parties to the merger (as of March 31, 2010)
Company name Shinwa Kaiun Kaisha, Ltd. Nippon Steel Shipping Co., Ltd.
Business
Marine transportation business and Marine transportation business
other businesses related or incidental thereto
Date of incorporation April 1, 1950 February 6, 1948
Registered address 8-1 Otemachi 1-chome, Chiyoda-ku, Tokyo 3-2 Kasumigaseki 3-chome, Chiyoda-ku, Tokyo
Name and position of
representative
President, Representative Director
Hiroshi Sugiura
President, Representative Director
Keiichiro Shimakawa
Paid-in capital 8,100 million yen 2,227 million yen
Number of issued shares 162,000,000 shares 44,557,750 shares
Net assets (consolidated) 47,938 million yen 16,548 million yen
Total assets (consolidated) 114,370 million yen
33,342 million yen
Fiscal year-end March 31 March 31
Number of employees 591 (consolidated) 82 (consolidated)
Post-merger position
Corporate name
Business
Registered address
Name and position of
representative
Capital
Number of issued shares
Net assets (consolidated)
NS United Kaiun Kaisha, Ltd.
Marine transportation business and other businesses related or incidental thereto
21st and 22nd Floors, Otemachi 1st Square West Tower, 5-1 Otemachi 1-Chome, Chiyoda-ku, Tokyo
President, Representative Director/President, Executive Officer
Keiichiro Shimakawa (Scheduled)
Representative Director/Vice President, Executive Officer
Hiroshi Sugiura (Scheduled)
10,300 million yen
230,764,400 shares
Has not yet been determined
Total assets (consolidated) Has not yet been determined
Fiscal year-end March 31
Main shareholders and
their shareholdings
(scheduled)
Note: Please refer to page 17 for new company executives.
Nippon Steel Corporation 34.00%
Nippon Yusen Kabushiki Kaisha (NYK LINE) 18.74%
Tokio Marine & Nichido Fire Insurance Co., Ltd. 4.34%
Sompo Japan Insurance Inc. 3.62%
Mizuho Corporate Bank, Ltd. 3.25%
Mitsui Sumitomo Insurance Company, Limited 2.54%
Japan Trustee Services Bank, Ltd. (Trust account) 2.52%
Mitsubishi Heavy Industries, Ltd. 2.34%
Hsin Chien Marine Co., Ltd. 2.19%
The Master Trust Bank of Japan, Ltd. (Trust account) 1.05%
Shinwa Kaiun Group Annual Report 2010 4

Our Major Vessels and Plan for Future Development
New Vessels
Bulk Carrier:
ATLANTIC DIANA
Length:
169.37 M
Breadth:
27.20 M
Summer Full-Load Draft: 9.82 M
Deadweight:
28,419 KT
Full-Load Speed: 14.0 KNOT
Log/Bulk Carrier:
TAMAKI PRINCESS
Length:
103.64 M
Breadth:
18.80 M
Summer Full-Load Draft: 9.065 M
Deadweight:
10,024 KT
Full-Load Speed: 12.5 KNOT
FY2011 Shinwa Kaiun Group Fleet Development Plan
(Including the long-term [5 years or longer] chartered fleet)
Vessel name / type DWT (K/T) Delivery (scheduled)
Overseas vessel SAKURA WAVE / Bulk carrier 88,299 April 16, 2010
Domestic vessel FUYO-MARU NO.6 / Cement carrier 5,445 April 22, 2010
Overseas vessel DIAMOND WIND / Bulk carrier 76,000 June 4, 2010
Domestic vessel Fly ash carrier 4,750 June 2010
Overseas vessel Bulk carrier 88,000 June 2010
Overseas vessel Bulk carrier 33,000 July 2010
Overseas vessel Bulk carrier 83,000 July 2010
Overseas vessel Bulk carrier 33,000 September 2010
Overseas vessel Bulk carrier 51,000 January 2011
5
Shinwa Kaiun Group Annual Report 2010

Major Vessels
Bulk Carrier: YUGAWASAN
Deadweight: 302,481 KT
Very Large Ore Carrier: SHINWA-MARU
Deadweight: 297,541 KT
Bulk Carrier: KEFALONIA
Deadweight: 28,742 KT
Bulk Carrier: CRYSTAL WIND
Deadweight: 76,523 KT
FY2010 Shinwa Kaiun Group Fleet Development Achievements
(Including the long-term [5 years or longer] chartered fleet)
✽ Non-newbuilding
Vessel name / type DWT (K/T) Delivery
Overseas vessel CARIBBEAN ORCHID / Chemical tanker 19,998 April 7, 2009
Domestic vessel YASUTAKA/ Cement carrier 2,219 April 22, 2009
Overseas vessel ATLANTIC DIANA / Bulk carrier 28,419 May 11, 2009
Overseas vessel TAMAKI PRINCESS / Log/Bulk carrier 10,024 May 14, 2009
Domestic vessel FUKURYU-MARU / Steel products carrier 1,650 May 29, 2009
Domestic vessel KEISHO-MARU / Log/Bulk carrier 1,830 July 19, 2009
Overseas vessel CHAVIN QUEEN / Bulk carrier 51,241 November 4, 2009
Overseas vessel KM KEELUNG / Bulk carrier 82,100 February 24, 2010
Overseas vessel E.R. BAVARIA / Bulk carrier 178,838 February 24, 2010
Overseas vessel MARITSA / Bulk carrier ✽ 76,015 March 1, 2010
Overseas vessel E.R. BRANDENBURG / Bulk carrier 178,991 March 3, 2010
Domestic vessel YUKAI-MARU / Bulk carrier ✽ 6,000 March 31, 2010
Domestic vessel SHUTTLE ACE / Car carrier ✽ 5,271 March 31, 2010
Shinwa Kaiun Group Annual Report 2010 6

Sectoral Overview
Eighty-plus percent of the consolidated revenue of the
Shinwa Kaiun Group is from overseas shipping
services, while the coastal shipping services, driven by
our consolidated subsidiaries Shinwa Naiko Kaiun
Kaisha, Ltd. and Shinwa Chemical Tanker Co., Ltd.,
accounts for a little under 20%. The overseas shipping
services comprise Shinwa Kaiun and SHINWA
(SINGAPORE) PTE. LTD., which serve as shipping
operators, Shinwa Marine Corp., which assumes
shipping administration, and overseas owner subsidiaries.
As for businesses other than shipping services, the
Company operates Shinwa Business Management
Kaisha, Ltd., which is engaged in property management
services and entrusted with the administrative and
accounting business of Group members, Shinwa
Systems Co., Ltd., which is engaged in information
systems development and maintenance, and Shinwa
Engineering Services Co., Ltd., which is engaged in
onshore equipment maintenance services.
Operational reviews for overseas shipping
services, coastal shipping services, and other services
for the consolidated fiscal year under review are as
follows.
Overseas Shipping Services
The charter market for Capesize bulk carriers
(170,000-DWT class) was affected by sluggish cargo
movements at the beginning of the fiscal year, due to
production adjustment by steelmakers stemming
from the rapid economic recession following the
Lehman shock. However, average charter rates for
main four routes reached a level surpassing 40,000
U.S. dollars per day because of the recovery of iron
ore imports by China in the second half of the fiscal
year, as well as the recovery of crude steel production
in Japan and Europe, resulting in a gradual increase
in cargo movement and the tightening of supply and
demand for vessels.
In the Panamax bulk carrier (70,000-DWT class)
market, charter rates for the Pacific round service
remained sluggish, at around 10,000 U.S. dollars per
day at the beginning of the fiscal year, because of a
decline in transportation demand for Japan.
However, rates rose to approximately 30,000 U.S.
dollars per day toward the end of the fiscal year
because cargo movements of coal and grain bound
mainly for China and India were increasingly brisk
after summer, and because supply and demand for
vessels tightened, due partly to prolonged ship
congestion in Australia.
In the Handy bulk carrier (30,000-DWT class)
market, charter rates for the Pacific round service
remained sluggish, at approximately 8,000 U.S.
dollars per day in the first half of the fiscal year.
However, cargo movements increased as the world
economy gradually recovered, and the market continued
to show moderate growth. Furthermore, as demand
for vessels notably increased after winter, charter rates
reached a level surpassing approximately 20,000 U.S.
dollars per day at the end of the fiscal year.
While the transport of our main outward cargo,
steel products from Japan to North America, slowed
down, we worked to improve ship-deployment
efficiency through booking combination cargo to
Central and South America, and achieved success.
We maintained stable profits through long-term
contracts for nonferrous ore from the west coast of
South America, one of our main homeward cargos.
In grain transport from the Gulf Coast of the U.S. to
the west coast of South America, we worked to
improve profits through efficient deployment of our
fleet, while benefitting from a market rise.
In near-sea trade using small-sized carriers
(5,000- to 10,000-DWT class), the transport of steel
products bound for China and Southeast Asia
remained at a much higher level than expected, while
demand for the transport of raw materials bound for
Japan was extremely sluggish.
In the field of VLCCs (300,000-DWT-class
tankers), VLGCs (80,000-cubic-meter liquefied gas
7
Shinwa Kaiun Group Annual Report 2010

carriers) and MR product tankers (medium-range oil
product tankers), the balance of supply and demand
significantly deteriorated due to the global economic
crunch following the Lehman shock. Despite a
pickup trend from the fourth quarter, the transport
of crude oil, LPG, and oil products as a whole
remained at a historically low level.
Regarding the chemical tanker business
conducted by SHINWA (SINGAPORE) PTE.
LTD., the delivery of a new vessel in April 2009
brought the number of vessels in the fleet to four, all
of which have operated smoothly. In near-sea dry
bulk activities, despite the impact of the market crash
in the previous fiscal year, we endeavored to reduce
charter rates and improve efficiency in ship
deployment by returning ships with high charter
rates and shifting to short- and medium-term
affreightment contracts.
In this business environment, although our
overseas shipping service was confronted with
negative factors affecting earnings results, including a
settlement loss from fuel oil futures contracts signed
in the previous year, we took measures under the
initiative of the Emergency Countermeasure
Committee, launched in the previous year and
headed by the former president, aimed at returning
high-cost ships early and concluding new
affreightment contracts. While we were able to earn
stable profits through ship deployment to existing
medium- and long-term affreightment contracts on a
timely basis, we were also able to earn higher
revenues than our initial target as a result of flexible
adjustment of our managed ships’ tonnage and
improved efficiency in ship deployment.
Coastal Shipping Services
production cuts by steel makers, but increased in the
second half along with the production of coke, due
to steel makers’ production recovery. The transport
volume of cement remained at a low level because of
sluggish domestic demand.
In respect to Shinwa Chemical Tanker Co., Ltd.,
with regard to the demand for LPG, a declining
trend continued for both industrial and consumer
use due to a downturn in demand. The transport of
petrochemicals and black oil (heavy oil, etc.) fell
short of expectations, affected by a sluggish transport
volume in the first half of the fiscal year. Although
LNG demand for industrial use was sluggish due to
the economic recession, overall transport volume
remained firm, thanks to brisk consumer demand for
LNG as clean energy.
In this business climate we focused on cost
reduction, in conjunction with efficient ship
deployment and operation, in the coastal shipping
sector. As a result, we were able to earn higher
revenues overall than our initial target.
Other Services
Other services are provided by Shinwa Kaiun Group
companies, such as Shinwa Marine Corp., which is
engaged in ship management services; Shinwa
Business Management Kaisha, Ltd., engaged in
property management services and entrusted with
the administrative and accounting business of Group
members; Shinwa Systems Co., Ltd., which conducts
information systems development and maintenance;
and Shinwa Engineering Services Co., Ltd., which is
engaged in onshore equipment maintenance services.
The Group’s business results roughly matched our
initial forecast.
In respect to Shinwa Naiko Kaiun Kaisha, Ltd., the
transport volume of steel products dropped sharply
in the first half of the fiscal year due to significant
Shinwa Kaiun Group Annual Report 2010 8

Management Structure
Shinwa Kaiun has adopted the auditor governance
model. However, the Company has been
maintaining and enhancing its management
efficiency by forming a board of directors consisting
of directors being well acquainted with the
Company’s businesses. Three of the four corporate
auditors are external corporate auditors, and each
auditor attends meetings held by various
committees, including the Compliance Committee,
in addition to meetings of the board of directors
and executive officers, in order to monitor the
status of management and business execution.
Moreover, the Internal Audit Office under the
direct control of the president monitors the status
of business execution in order to enhance the
effectiveness of corporate governance in
collaboration with the corporate auditors.
The Company has also established a code of conduct
in order to implement its corporate philosophy in
specific terms. In addition, the Company has
established a compliance committee chaired by the
director in charge of general affairs to ensure that all
directors and employees comply with laws, internal
regulations and ethical standards in their execution
of their duties.
Organization Chart Including the Management System of Internal Controls As of June 25, 2010
General Shareholders’ Meeting
Elections
Board of Directors
Basic policy for the internal controls system
(Resolutions)
Supervision
Operational audit Elections
Elections
Audit of accounts
Exchange of opinions
Board of Corporate Auditors
Independent
Public
Accountants
Audit of accounts
Board of Executive Committee
President Executive Officer
Executive Officers
Co-operation
Co-operation
Supervision
Supervision
Each Executive Officer
GL Committee (Note)
Various Committees
Report
CSR Committee
Compliance Committee
Safety and Health Committee
Investor Relations Committee
Ship Safety and Environmental Committee
Disaster Prevention and
Countermeasures Committee
CAPSS Execution Committee
Budget Execution Committee
General Systems Planning Committee
Project Team
Assistance;
coordinator
Supervision
Suggestions/recommendations
Internal Audit
Attorneys
Supervision
Executives and employees of
company divisions
Overseas offices
Ships
Internal Audit Office
Subsidiaries
Assistance in
monitoring system
operations
Executive Officer in
charge of internal controls
and corporate ethics
Assistance
Assistance
Promoting
committee
of internal
controls
(Internal Control Secretariat)
Note: Composed of the Company’s group leaders
9
Shinwa Kaiun Group Annual Report 2010

Corporate Social Responsibility
Prevention of Global Warming
Global warming is said to be caused by greenhouse gases such as CO2. Vessels need to burn fossil fuel such as
fuel oil to run, and these emit CO2-containing exhaust fumes. At present, the only effective way to reduce this
CO2 gas is to reduce fuel consumption. We are taking the following measures to reduce fuel consumption:
• Use of energy-saving equipment and
devices.
• Improving propulsion performance by
hull cleaning/propeller polishing.
• Speed reduction and best-route planning
in accordance with changing situations.
• Minimizing fuel consumption per
transported unit with efficient shipping
schedules and increased cargo loads.
Before propeller polishing
After propeller polishing
Before hull cleaning
After hull cleaning
Installation of Lubricant (M/E Cylinder Oil) Saving Equipment
The vessels owned by Shinwa Kaiun that have cross-head engines are being converted from mechanical to
electronically controlled lubricators to reduce the amount of lubrication and lower cylinder oil consumption.
Cross-head engines use two types of lubricant: cylinder oil in the cylinder liner and system oil in the
crankcase. The system oil undergoes a circulation cycle so that it can be reused. The cylinder oil, however,
cannot be reused because it is burned up inside the cylinders, and
The structure of a cross-head engine this oil must be fed in constantly for the engine to continue
Exhaust valve
operating.
Exhaust
Lubrication ports There used to be mechanical lubricators attached directly to
Lubricator
the engine. These would feed oil at a fixed frequency (once every
one or two revolutions of the engine). Now, however,
Piston
electronically controlled lubricators have made it possible to feed
Air supply
oil accurately and in a way that is appropriate to the main
Piston rod engine’s current operational status. Reducing the wasteful
Cross-head feeding of oil makes it possible to reduce the amount of
lubrication and lower the consumption of cylinder oil. Shinwa
Crankshaft Kaiun is actively engaged in fitting electronically controlled
lubricators.
Shinwa Kaiun Group Annual Report 2010 10

Management’s Discussion and Analysis
Outline of Operating Results
■ Overall Operations
During the fiscal year under review, as a result of
the successful financial measures which various
countries took in response to the unprecedented
recession triggered by the financial crisis in 2008, in
general the world economy emerged from the worst
phase of the crisis, and the pickup trend increased.
Looking at a regional breakdown, the U.S.
economy staged a moderate recovery as seen in the
improvement in capital investment and personal
consumption, although the U.S. indexes related to
housing and employment remained severe. In
Europe, economies gradually picked up with the
improved business sentiment. However, the
unemployment rates remained high, and the pace of
recovery became sluggish due to the fiscal crises in
Greece and Spain. In China, major economic
indicators remained firm, and large-scale stimulus
measures helped to facilitate a rapid recovery led
by domestic demand. In Japan, although
employment and capital investment failed to fully
recover, the pickup trend increased with
production activities and exports showing signs of
recovery as well as gradual improvement in the
corporate earnings environment.
In overseas shipping, the dry bulk market
experienced large fluctuations in Capesize bulk
carriers during the fiscal year, while small- and
medium-sized bulk carriers remained firm in general.
The tanker market remained sluggish as a whole,
reaching a record low level at the beginning of the
fiscal year. The coastal shipping market remained at
a low level in general due to significant decline in
the transport volume of steel-related products, etc.
in the first half of the fiscal year.
Fuel oil prices remained at a low level in the
first quarter due to the decline in crude oil prices
resulting from the global financial turmoil and
world economic downturn, but then stayed at a
high level with an increase in crude oil prices. As a
result, the average purchase price of fuel oil in the
fiscal year under review declined to about 421 U.S.
dollars per ton, down about 137 U.S. dollars from
the previous year.
The average exchange rate of the Japanese yen
against the U.S. dollar was 93.25 yen in the fiscal
year, which is a 1.75 yen appreciation from the
Consolidated Sales by Sector
Trends in U.S. Dollar-Yen
Exchange Rate
(inter-office rate)
Trends in Prices of Fuel Oil
(bonded fuel oil of Japan)
Coastal
Shipping
18%
Other
1%
Yen FY2009 FY2010
115
110
US$/ton FY2009 FY2010
800
700
105
600
100
500
95
400
Overseas
Shipping
81%
90
300
85
200
(Month) 4 5 6 7 8 9 10 11 12 1 2 3
(Month) 4 5 6 7
8 9 10 11 12 1 2 3
11
Shinwa Kaiun Group Annual Report 2010

initial estimate at the beginning of the fiscal year,
and a 7.50 yen appreciation from the previous year.
As for the coastal shipping sector, in the midst
of economic recession following 2009, exports
started to make a partial recovery from September
despite some weakness, inventory adjustment in the
automobile and electronics industries advanced,
and production cuts eased. Accordingly, the
transport of steel products and electric powerrelated
transport remained strong.
Within this business environment, in the
consolidated fiscal year under review, the Company
posted consolidated revenues of 95,106 million yen
(down 28.4% from the previous year), operating
income of 4,796 million yen (down 63.6%), and
ordinary income of 4,053 million yen (down
67.6%). Net income was 1,215 million yen (down
81.8%) as a result of recording an extraordinary loss
of 2,937 million yen due to cancellations of charter
contracts. These cancellations were attributable to
the early return of vessels, implemented as a way to
strengthen our fleet’s competitiveness.
■ Forecast for the Next Fiscal Year
In the next fiscal year, the world economy is
anticipated to continue recovering gradually, and
the overseas shipping market is expected to remain
firm, reflecting strong transportation demand for
iron ore, coal, and other materials in emerging
countries including China and India. However,
concerns remain about appreciation of the yen,
which is the variable factor for earnings results in
the overseas shipping service, and about a further
rise in fuel oil prices. Moreover, there is concern
that the shipping market will deteriorate as a result
of loosening supply and demand for vessels, due to
the large number of completions of new vessels.
These concerns make prospects unpredictable.
In this business environment, for the next
consolidated fiscal year, we expect 110,000 million
yen ✽ in consolidated revenue for the whole year,
operating income of 7,000 million yen ✽ , ordinary
income of 6,000 million yen ✽ , and net income of
3,500 million yen ✽ . The above projections assume an
exchange rate of 90 yen to the U.S. dollar and an internal
bunker C fuel oil price of 540 U.S. dollars per ton.
✽ The effect from the merger with the Nippon Steel Shipping Co., Ltd. is
excluded from the amount.
Trends in Time Charter Rates (Charter period: one year)
Capesize Bulk Carriers
Panamax Bulk Carriers
Handy Bulk Carriers
US$/day FY2009 FY2010
180,000
150,000
120,000
90,000
60,000
30,000
US$/day FY2009 FY2010
90,000
75,000
60,000
45,000
30,000
15,000
US$/day FY2009 FY2010
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
0
0
(Month)
4 5 6
7
8 9 10 11 12 1 2 3
(Month) 4 5 6 7 8 9 10 11 12 1 2 3
(Month) 4 5 6 7
8 9 10 11 12 1 2 3
Shinwa Kaiun Group Annual Report 2010 12

Consolidated Financial Statements (Summary)
Consolidated Balance Sheet
Millions of yen
As of March 31, 2010 and 2009 2010 2009
ASSETS
Current assets ¥ 32,095 ¥ 30,725
Fixed assets 82,275 76,284
Tangible fixed assets 75,012 70,108
Intangible fixed assets 412 429
Investments and other assets 6,851 5,747
Total assets 114,370 107,009
LIABILITIES
Current liabilities 23,813 20,858
Long-term liabilities 42,619 41,926
Total liabilities 66,432 62,784
NET ASSETS
Shareholders’ equity
Common stock 8,100 8,100
Capital surplus 20 20
Retained earnings 42,990 41,775
Treasury stock, at cost (25) (24)
Total shareholders’ equity 51,085 49,871
Valuation and translation adjustments
Unrealized gains (losses) on securities 204 (434)
Gains (losses) on deffered hedge (2,639) (3,869)
Foreign currency translation adjustments (2,569) (2,986)
Total valuation and translation adjustments (5,004) (7,289)
Minority interests 1,857 1,643
Total net assets 47,938 44,225
Total liabilities and net assets ¥ 114,370 ¥ 107,009
13
Shinwa Kaiun Group Annual Report 2010

Consolidated Statement of Income
Millions of yen
For the Years Ended March 31 2010 2009
Revenues ¥ 95,106 ¥ 132,799
Operating expenses 85,404 114,655
Gross profit 9,702 18,144
General and administrative expenses 4,906 4,976
Operating income 4,796 13,168
Non-operating income 369 676
Non-operating expenses 1,112 1,346
Ordinary income 4,053 12,498
Extraordinary profits 322 879
Extraordinary losses 2,937 2,453
Income before income taxes 1,438 10,924
Income taxes—current 607 4,355
Income taxes—deferred (590) (232)
Minority interests 206 112
Net income ¥ 1,215 ¥ 6,689
Consolidated Statement of Cash Flows
Millions of yen
For the Years Ended March 31 2010 2009
Cash flow from operating activities ¥ 9,427 ¥ 8,360
Cash flow from investing activities (11,374) (10,006)
Cash flow from financing activities 2,850 5,445
Effect of exchange rate changes on cash and cash equivalents (48) (138)
Net increase in cash and cash equivalents 855 3,661
Cash and cash equivalents at the beginning of the year 10,213 6,552
Cash and cash equivalents at year-end ¥ 11,068 ¥ 10,213
Shinwa Kaiun Group Annual Report 2010 14

Consolidated Financial Statements (Summary)
Consolidated Statement of Shareholders’ Equity
Millions of yen
Shareholders’ equity
For the Years Ended March 31
Common
stock
Capital
surplus
Retained
earnings
Treasury
stock,
at cost
Total
shareholders’
equity
Balance at March 31, 2009 8,100 20 41,775 (24) 49,871
Changes of items during the term
Dividends from retained earnings — —
Net income 1,215 1,215
Acquisition of treasury stock (1) (1)
Net changes of items other than
shareholders’ equity
Total changes of items during the term — — 1,215 (1) 1,214
Balance at March 31, 2010 8,100 20 42,990 (25) 51,085
Millions of yen
For the Years Ended March 31
Unrealized
gains (losses)
on securities
Valuation and translation adjustments
Gains (losses)
on deferred
hedge
Foreign currency
translation
adjustments
Total valuation
and translation
adjustments
Minority
interests
Total
net assets
Balance at March 31, 2009 (434) (3,869) (2,986) (7,289) 1,643 44,225
Changes of items during the term
Dividends from retained earnings —
Net income 1,215
Acquisition of treasury stock (1)
Net changes of items other than
shareholders’ equity
638 1,230 417 2,285 214 2,499
Total changes of items during the term 638 1,230 417 2,285 214 3,713
Balance at March 31, 2010 204 (2,639) (2,569) (5,004) 1,857 47,938
15
Shinwa Kaiun Group Annual Report 2010

History
Apr. 1950
Dec. 1957
Feb. 1962
May 1964
Sep. 1969
Jan. 1970
Jun. 1974
May 1975
Mar. 1976
Apr. 1977
Feb. 1981
Apr. 1992
Jul. 1993
Sep. 1994
Jan. 1995
Jun. 1996
Feb. 1998
Nov. 1999
Jul. 2001
Jul. 2004
Aug. 2005
Oct. 2006
Apr. 2007
Mar. 2008
Mar. 2010
Established Nittetsu Steamship Co. (2-2 Marunouchi, Chiyoda-ku, Tokyo, Japan); separated from shipping
department of former Nippon Steel Corp.
Opened a liaison office in London
Merged with Toho Kaiun Kaisha and changed the registered name to SHINWA KAIUN KAISHA, LTD.
(1-3 Kyobashi, Chuo-ku, Tokyo, Japan)
Became a part of Nippon Yusen Kabushiki Kaisha group due to the Marine Transportation Restructuring Act
Opened a New York liaison office
Established Shinwa (U.K.) Ltd., a subsidiary
Established Shinwa Naiko Kaiun Kaisha, Ltd.; separated from coastal shipping section
Established Shinwa (U.S.A.) Inc., a subsidiary
Established P.T. Pakarti Tata in Jakarta
Opened liaison office in Melbourne (Relocated to Sydney in April 1993)
Moved the head office to 2-2-2 Uchisaiwaicho, Chiyoda-ku, Tokyo, Japan
Opened a liaison office in Singapore
Opened a liaison office in Beijing
Moved the head office to 1-5-7 Kameido, Koto-ku, Tokyo, Japan
Opened a liaison office in Hong Kong
Established Shinwa Shipping (H.K.) Co., Ltd., a subsidiary
Merged with Shinsei Kaiun Kaisha, Ltd.
Established Dajin Shipping Pte. Ltd., a subsidiary in Singapore
Dissolved P.T. Pakarti Tata in Jakarta
Opened a liaison office in Shanghai
Moved the head office to 1-8-1 Otemachi, Chiyoda-ku, Tokyo, Japan
Closed Beijing Representative Office
Absorbed Dajin Shipping Pte. Ltd. as a wholly-owned subsidiary and changed its name to Shinwa
(Singapore) Pte. Ltd. in order to enter the chemical carrier business
In order to further strengthen business relationships, Nippon Steel Corporation increased holdings of shares
in Shinwa Kaiun Kaisha, Ltd. and became an “Other related company” of Shinwa Kaiun Kaisha, Ltd.
(“Other related company” refers to a company of which Shinwa Kaiun Kaisha, Ltd. is an affiliate)
In order to further strengthen business relationship with Nippon Coke & Engineering Co., Ltd. (a group
company of Nippon Steel Corporation), Shinwa Naiko Kaiun Kaisha Co., Ltd. made Muromachi Shipping
Company, Limited (a wholly-owned subsidiary of Nippon Coke & Engineering) its subsidiary by acquiring
all of the company’s shares.
Shinwa Kaiun Group Annual Report 2010 16

Corporate Data
Outline of the Company
(As of March 31, 2010)
Registered Name
SHINWA KAIUN KAISHA, LTD.
Established
April 1, 1950
Capital
8.1 billion yen
Number of Employees
591 (Consolidated)
165 (Non-consolidated)
Head Office
KDDI Otemachi Bldg., 8-1, Otemachi 1-chome,
Chiyoda-ku, Tokyo 100-8108, Japan
Number of Employees
200
150
100
50
0
Fleet Scale
800
600
400
200
0
154 154 162 165
07 08 09
543 568
07 08 09
10
624 654
Ten thousands ton
10
Directors, Corporate Auditors and
Executive Officers
(As of June 25, 2010)
Directors, Corporate Auditors and Executive Officers
(post-merger)
(As of October 1, 2010)
Representative Director and Chairman
Takahiko Kakei
President/
President Executive Officer
Hiroshi Sugiura
Directors/
Managing Executive Officers
Kenji Oyama
Kimio Ohama
Yoshiro Kishi
Outside Corporate Auditors
Teruhiko Sano
Hidetoshi Kikutake
Shigeru Shimizu
Corporate Auditor
Yasushi Horie
Managing Executive Officers
Naofumi Wakao
Kazumi Takagi
Executive Officers
Yoshio Sakamoto
Takashi Matsumoto
Hironobu Sato
Akihiko Kawai
Yoshio Kawamura
Toyohiko Yokomizo
Yasukazu Sakata
Chairman
Takahiko Kakei
President/President Executive Officer
Keiichiro Shimakawa
Representative Director/
Vice-President Executive Officer
Hiroshi Sugiura
Directors/Managing Executive Officers
Osamu Nagano
Kenji Oyama
Yoshiro Kishi
Masaaki Ando
Outside Director
Tooru Obata
Outside Corporate Auditors
Teruhiko Sano
Hidetoshi Kikutake
Shigeru Shimizu
Corporate Auditor
Yasushi Horie
Managing Executive
Officers
Naofumi Wakao
Kazumi Takagi
Toyohiko Yokomizo
Executive Officers
Yoshio Sakamoto
Takashi Matsumoto
Hironobu Sato
Akihiko Kawai
Yoshio Kawamura
Yasukazu Sakata
Hiroshi Sanda
Tai Sugawara
17
Shinwa Kaiun Group Annual Report 2010

Principal Overseas Subsidiaries
SHINWA (U.K.) LTD.
7th Floor, 76 Shoe Lane, London, EC4A 3JB
UNITED KINGDOM
TEL: +44-20-7716-0055
FAX: +44-20-7716-0056
E-mail: shinwa@shinwauk.com
SHINWA (U.S.A.) INC.
4th Floor, 300 Harmon Meadow Blvd., Secaucus,
New Jersey 07094, U.S.A.
TEL: +1-201-348-2101
FAX: +1-201-319-0305
E-mail: susa@shinwausa.com
SHINWA SHIPPING (H.K.) CO., LTD.
Room 1002, Ocean Centre, Harbour City,
5 Canton Road, Kowloon, HONG KONG
TEL: +852-2110-1228
FAX: +852-2370-9781
E-mail: akiyama@shinwaship.com.hk
kwchan@shinwaship.com.hk
TLX: 48827 HKSSC HX
SHINWA (SINGAPORE) PTE. LTD.
138 Robinson Road #19-04/05,
The Corporate Office, SINGAPORE 068906
TEL: +65-6323-6716
FAX: +65-6323-6718
E-mail: bulk@shinwa.com.sg
tank@shinwa.com.sg
SHINWA KAIUN KAISHA, LTD. SHANGHAI OFFICE
RM 1103, Ruijin Building 205,
Mao Ming Nan Lu, Shanghai 200020, CHINA
TEL: +86-21-6415-3557
FAX: +86-21-6415-3667
E-mail: watanabe@shinwaship-sh.com.cn
Stock Information
(As of March 31, 2010)
Total Number of Authorized Shares
Shares of Common Stock Issued
Number of Shareholders
Principal Shareholders
Share Price Chart (unit: yen)
800
600
400
200
0
Number of shares
held (thousands)
600,000,000
162,000,000
10,337
Percentage of
shares held (%)
Nippon Yusen Kabushiki Kaisha (NYK LINE) 43,247 26.71
Nippon Steel Corporation 24,300 15.01
Tokio Marine & Nichido Fire Insurance Co., Ltd. 8,024 4.96
Japan Trustee Services Bank, Ltd. (Trust account) 5,806 3.59
Mitsubishi Heavy Industries, Ltd. 5,400 3.34
Mitsui Sumitomo Insurance Co., Ltd. 5,140 3.17
SOMPO JAPAN INSURANCE INC. 5,073 3.13
Mizuho Corporate Bank, Ltd. 4,052 2.50
The Master Trust Bank of Japan, Ltd. (Trust account) 2,419 1.49
The Bank of Tokyo-Mitsubishi UFJ, Ltd. 2,250 1.39
Stock Price (the candle)
high high
close open
open close
low low
open price < close price open price > close price
4
2008 5 6 7 8 9 101112 2009 1 2 3 4 5 6 7 8 9 101112 2010
1 2 3
4 5
(Year/month)
Shinwa Kaiun Group Annual Report 2010 18

KDDI Otemachi Bldg., 8-1, Otemachi 1-chome,
Chiyoda-ku, Tokyo 100-8108, Japan
TEL: +81-3-5290-6400 FAX: +81-3-5290-6230
E-mail: LEGAL@shinwaship.co.jp
Company Website
We are posting the latest news and other IR information on our web site.
www.shinwaship.co.jp/english/index.html