more than shipping 2013
TRANSCRIPT
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March 31, 2011
More Than Shipping 2013- Grow with Asia, Expand across the Globe -
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1
Table of Contents
More Than Shipping 1: General Cargo P.18
More Than Shipping 2: Automobiles P.19
More Than Shipping 3: Energy / Natural Resources 1 P.20
Fleet in Operation P.13
Investment Plan P.14
More Than Shipping 2013 Grow with Asia, Expand across the Globe (Summary) P.2
More Than Shipping 2013 Grow with Asia, Expand across the Globe P.12
More Than Shipping 4: Energy / Natural Resources 2 P.21
Detailed Financial Targets P.22
Supplementary Material P.26
Business Environment P.5
Review of Previous Mid-Term Management Plan P.9
Financial Targets P.15
More Than Shipping: Strategic Pillars of New Mid-Term Management Plan P.17
Financial Targets: Breakdown by Region and Business Segment P.16
Note: FY2010 financial forecasts and assumptions included in this presentation are based on fiscal year-end projections as of FY2010Q3.
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More Than Shipping 2013- Grow with Asia, Expand across the Globe - (Summary)
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3
More Than Shipping 2013: Summary
Capture the Growth in Asia by
Combining Traditional Shipping with Value Added Strategies
More Than Shipping = Combine TraditionalShipping with Value Added Strategies
Growth in Asia
High Value AddedBusiness with
Stable Freight Rates
StrategicInvestments
More ThanShipping
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More Than Shipping 2013: Background
Background of More Than Shipping 2013
Business Environment (Trend)
Significant Increasein Cargo Volume
Growing demand in emerging market including China(= increase in exports for natural resource-rich countries)
3
Increase in population4
US and European overconsumption (= excessiveexporting by export-driven countries)
2
Production shift to emerging markets (= globalization)1
Continuationof TrendPre-Lehman Shock Phenomenon#
Vessel Size:Specialization and
Capacity Expansion
Shift towardsLong-Term
(Stable) Contracts,Minimize Volatility
CharacteristicsVessel Type
Characteristics differ from other vessel types
(consumer goods, Short -Term contracts) Specialization/Capacity expansion
lowering of volatility
Containerships
Extreme high freight rates between 03~08 due tohigher than expected demand from China
Normally, market exposure would be 10~30% Originally Low Volatility
Capesize
Currently 2 Anomalies Exist:
Capesize vessels:Strategy focused on Long-Term stabilitywas correct. However, fleet managementwas not implemented effectively.
Value added strategies come up withthe first choice for customers
Our Stance
Customers create cargo movement.(Ship Operator cannot control the demand)
We are majorly Ship Operator.(Ship Operator > Ship Owner)
Owning assets ensure high quality and stableservices.
Containerships:Fleet portfolio (burdened by owned andLong-Term chartered vessels)
SHOULD LEAD TO
Car Carrier, LNG Carrier, VLCC, Capesize, Containership
Specialized and Capacity Expanded Vessel Types
Less flexibility
Review
More Than Shipping 2013
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Business Environment
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6
70
95
120
145
170
195
220
2001 2003 2005 2007 2009 2011 2013 2015
CAGR: 1.6%
2,000
2,500
3,000
3,500
4,000
4,500
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Oil
Natural Gas
8,000
10,000
12,000
14,000
16,000
18,000
0,000
2000 2002 2004 2006 2008 2010 2012 2014 2016
0500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2000 2002 2004 2006 2008 2010 2012 2014 2016
FY2010 volume:87% of pre-LehmanShock levels
CAGR: 8% CAGR: 5% CAGR: 0.6%
CAGR: 2.7% CAGR: 2.2%
CAGR: 5.0% CAGR: 2.6%CAGR: 7%CAGR: 11.5%
Business Environment:Shipping Volumes and Energy Demand (Volume)
Shipping volumes are on the rise
(TEU, millions)
(vehicles, 1,000) (tons (oil converted), millions)
(tons, millions)
Source: IEA, NYK Research Estimates
Source: Drewry Source: Clarkson, NYK Research Estimates
Source: NYK Research Estimates
Iron Ore
Coal
Grains
Minor Bulk
General Cargo: Global Container Volume Natural Resources: Drybulk Volume
Automobiles: Global Passenger Car Shipments Energy: Oil and Natural Gas Consumption
FY2010 volume:105% of pre-LehmanShock levels
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7
1.97
2.92
4.42
2010
2.50
3.30
5.10
20132005 2016
Ex Japan 4.67 5.50
Ex Korea 2.41 3.30
Ex Asia(Thai, China, India)
0.82 2.90
CAGR
(00-07)
CAGR
(08-20)
Oil 1.6% 0.6%
Natural Gas 2.7% 2.2%
3.9%
0.8%
CAGR
(99-09)
CAGR
(09-29)
Asia ->
N. America6.6%
Asia ->
Europe6.5%
63%
986
619
134
20102005 2015
Japan 132 135
China 275 777
Global 653 1,218
Percentage
from China42% 64%
LNG Demand Projected to IncreaseStrong Growth Projected
in Deepwater Oil Production
Intra-Asia Volumes to Increase
Chinese Dependence on the Rise
Asian Out-Bound Volumes to Grow Significant Growth Projected in Asia
Source: Clarkson, NYK Research Estimates
Source: Drewry, NYK Research Estimates Source: Boeing
Source: IEA, NYK Research EstimatesSource: EnergyFiles
Source: FOURIN, NYK Research Estimates
(TEU, millions)
(tons, millions) (barrels, millions)
(vehicles, million)
Business Environment:Shipping Volumes and Energy Demand (Changes)
Key Growth Drivers: Asia and LNG/deepwater oil production
(CAGR, %)
General Cargo: Container Volumes Cars: Export Volumes by RegionGeneral Cargo: Air Cargo Volumes
Energy: Global Demand Energy: Deepwater Oil ProductionNatural Resources: Iron Ore Shipping Volumes
50
19
21
2010
63
24
26
20132005 2016
Asia ->
N. America18 32
Asia ->
Europe14 29
Intra-Asia 32 79
(CAGR, %)
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8
Business Environment: Market Condition
8
Bulkship (Capesize) Market
Source: The Baltic Exchange
-1 0
-5
0
510
15
20
25
2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0
0
2,000
4,000
6,000
8,000
10 0
12 0
14 0
16 0
18 0
20 0
22 0
2 0 00 2 0 01 2 0 02 2 0 03 2 0 04 2 0 05 2 0 06 2 0 07 2 0 08 2 0 09 2 0 10
Correlation between Bulkship Supply/Demand and Market Condition
Note: Supply/Demand gap is the difference between supply
and demand figures in the graph on the left
Source: Fearnleys, Clarkson, NYK Research
Note: Supply and demand are both indexed to 100 atthe base year (2000)
Supply/Demand Gap
BDIDemandSupply
Bulkship Supply/Demand Balance Bulkship Supply/Demand Gap
and Market Conditions
(Supply/
Demand Gap) (BDI)
Pricing is determined by global shipping supply/demand balance
11,793
663
201,136
3,9950
2,000
4,000
6,000
8,000
10,000
12,000
1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009
BDI
0
40,000
80,000
120,000
160,000
200,000
240,000
US$ per day
BDI 4T/C (Monthly Average)
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Review of Previous Mid-Term Management Plan
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10
Achieved financial targets and effectively executed strategic initiatives
Review of Previous Mid-Term Management PlanNew Horizon 2010
DefensiveStrategy
Move toward light-asset businessmodel for containership fleet
Fundamentally review air cargobusiness
Implement drastic cost reductionmeasures
Strategic Outline
OffensiveStrategy
Expand natural resources, energytransportation business and pursue
new business opportunities
Further Advance the global logisticsbusiness
Strengthen all automobile transportsupply chain business
Reduced owned and long-term chartered fleets
Centralized liner management in Singapore
Lowered operational break-even point through drastic cost reductions
Expanded chartering and leasing business
Achieved cost reductions exceeding JPY 100 billion
Achievements
Obtained long-term contracts in emerging markets including China
Expanded business in the Atlantic Region through NYK Bulkship Atlantic
Invested in Knutsen Offshore Tankers ASA, worlds No. 2 shuttle tanker company
Integrated NYK Logistics and Yusen Air & Sea Services
Made strategic investments in auto logistics in China and Thailand
1. Financial Targets
2. NYKs Strategy after New Horizon 2010 Revision
120
-30
Results(FY2010 Forecast)
Recurring Profit
+8040FY2010
+3-33FY2009
DifferencesPlanned
(as of October 2009)
(JPY, billions)
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14.9%
85.1%
7.5%
92.5%
99.2%
0.8%
0
50
100
150
200
250
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Air Cargo TransportationExpansion of chartering and leasing business
Focus on minimizing impact of market volatility
Containership and Forwarding BusinessTransition to light-asset business modelExpand forwarding business
Maintain Long-Term Contract Ratio
Operating Fleet
Size (vessels)
Long-Term
Contract Ratio
Capesize 105 80%
Panamax 84 55%Woodchip 50 80%
VLCC 35 85%
LNG 63 100%
Note: Operating fleet size as of March 2011 / Ratio of contracts that exceed 3 years.
LNG vessel numbers include ships under joint ownership.
Revenues by business
FY2016
Volume from Owned andLong-Term Chartered Vessels
# of vessels(owned and LT chartered)
# of vessels (operating fleet)
Volume from Short-Term Chartered Vessels
Volume from Forwarding
(# of Vessels) (Lifting Volume, millions)
FY2010
Review of Previous Mid-Term Management Plan (Yosoro Project)
Bulk & Energy Transportation
Regular flight Chartering & Leasing
FY2008
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13
Consolidated
Non-Consolidated Major vessels held under equity method affiliates
More Than Shipping 2013: Fleet in Operation
FY2010Forecast
115
92
OperatingVessels
30
147
820
104
50
84
105
93(83)
FY2013Estimate
120
95
OperatingVessels
30
180
920+
105
60
100
120
110(80)
FY2016Estimate
130
100
OperatingVessels
35
200
960+
105
60
110
110
110(63)
Shuttle Tankers (KNOT*)
LNG Carriers (under joint ownership)
24
33
25
35
30
45
Expand operational fleet with a focus on car carriers,small/mid-size bulkers and LNG/off-shore business segments
Car Carrier
Others
Vessel Types (Dry Bulk by Vessel Size)
LNG Carrier
Handysize (incl. Boxshape Vessel)
Total
Tanker
Woodchip Carriers
Post-Panamax / Panamax
Capesize
Containerships(# of vessels owned and LT charter)
* KNOT: Knutsen NYK Offshore Tankers
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14
Investment Plan
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Major scheduled investments
by an equity-method affiliate not included above:
Shuttle Tanker (KNOT) investment = 50 billion+
Other non-
shipping
businesses
Other shipping
Logistics
Containership
LNG, Offshore
Business
Tanker
Small to Mid-
size Bulkers
Large-size
Bulkers
(Capesize)
Car Carrier
1,300
500
1,800
Total
Note: Consolidated subsidiaries only (excluding investment by equity-method affiliates)
Total investment amount is indicated at time of completion
Figures include only chartered/leased vessels of over 5 years
Breakdown (FY2011 FY2016 Completion)Investment Plan (FY2011 FY2016 Completion)
Total
Non-
Shipping
Shipping
Other Non-ShippingInvestments
Logistics
Other shipping
Liquid
Dry
Car Carrier
Containership
LNG, OffshoreBusiness
Tanker
Small/Mid-sizeBulk Carriers
Large-size BulkCarriers
1,800+500+1,300
19011080
3200320
470100370
702050
26020060
1600160
31301
27040230
0
AdditionalInvestments
2929
TotalCurrent
InvestmentPlan
(JPY, billions)
(1) (2) (1) + (2)(JPY, billions)
AdditionalInvestments
CurrentInvestment
Plan
Focus of strategic investments will be on car carriers,small/mid-size bulkers and LNG/off-shore business segments
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15
Financial Targets
Segments:
Logistics Air Cargo Terminal Other Liner Bulk Shipping
Revenues (by Segment) Recurring Profit (by Segment)
Segments:
Logistics Air Cargo Terminal Other Liner Bulk Shipping
FY2013 Target: JPY2,300 billion in revenues and JPY130 billion in recurring profit
0
500
1,000
1,500
2,000
2,500
3,000
FY2010
(Forecast)
FY2013
(Estimate)
FY2016
(Target)
0
20
40
60
80
100
120
140
160
180
FY2010
(Forecast)
FY2013
(Estimate)
FY2016
(Target)
(JPY, billions)(JPY, billions)
120130
170
1,930
2,300
2,700
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Financial Targets:Breakdown by Region and Business Segment
16
Expand franchise in Asia and stable freight rate business
Revenues Breakdown (by Region) Recurring Profit Breakdown (by Segment)(JPY, billions)(JPY, billions)
FY2010
1,930
FY2013
2,300
FY2016
2,700
* Bold Figures: Percentage Contribution from Asia(including China and excluding Japan)
-100
-50
0
50
100
150
200
Other BusinessesBusiness with stable freight rates
CAGR
10%
Note: Business with stable freight rates businesses that NYK can leverage competitivestrengths including Logistics, Bulk Shipping (excluding short-term COA, Spot), etc.
Calculation: Revenues breakdown based on origin and destination. However, sales for drybulkand energy transportation business segments are attributed solely to destination.
CAGR
10%
FY2009
-30.4
FY2010
120.0
FY2016
170.0
FY2013
130.0
16%
2%
31%
13%
1%
3%
16%
14%
15%
36%
13%
1%3%2%
40%
13%2%15%3%
1%
15%
19%16%
12%
Regional Breakdown:
Asia (excl. China)
China
Europe
N. America
S. America
Oceania Japan
Africa
28% 30% 34%
45.0
75.0
30.0
100.0
40.0
130.0
36.0
-66.4
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1717
More Than Shipping:Strategic Pillars of New Mid-Term Management Plan
StrategicInvestments
More Than Shipping(Combine Traditional Shipping with
Value Added Strategies)
GeneralCargo
Cargo
Automobiles
Energy /NaturalResources
Asia
Target Regions
Asia
Asia (including Australia)Northern Europe
(North Sea, etc.)
South America (Brazil, etc.)
AsiaPacific Region
South America (Brazil, etc.)
Logistics
Car CarriersAuto LogisticsCar Terminals
LNGOffshore Business
Small/Mid-SizeBulkers
1) Leverage Logistics Capabilities
Effectively capture Asias growingtransportation needs
2) Utilize Auto Logistics Capabilities
Actively respond to all auto transportsupply chain needs in Asia
3) Employ Technological Capabilities
Secure highly advanced energy
transportation business
4) Leverage Global Network
Proactively expand overseas naturalresources and energy transport business
More Than Shipping: Expand beyond traditional shipping
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Container/Direct Pickup:
Ocean Forwarding:
Air Forwarding:
Contract Logistics:
NYK
Yusen Logistics
Yusen Logistics(strength of ex-YAS)
Yusen Logistics
(strength of ex-NYKLogistics)
Differentiating Factor
More Than Shipping 1: General Cargo
Operational Focus: Ocean ForwardingBecome one of the worlds leading competitors by FY2013
500,000 ton
1,000,000 TEU
FY2013Estimate
1.4x
2.3x
vs. FY2010
360,000 ton
440,000 TEU
FY2010Forecast
Type
Ocean
Air
CustomersContainers/
Direct Pickups
Contract Logistics(Warehouse/Delivery/
Customs Clearance)
NYK Group Business Strategy
Customers:Growing demand for one-stop shop
capabilities
Customer Usage of Forwarders (%):Growing trend
PresentShippingCompanies
Use of forwarders
More Than Shipping
Sales Strategy Focusing on Contract Logistics
Yusen Logistics (as of September 2010)
Employees: Approx. 16,600 # of Locations: 412
Warehouse Area: 2,130,000 m2 Presence in: 36 countries
0
50
100
150
200
250
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
0
1
2
3
4
5
6
7
Container business is growing.
However, approach is changing:
1. Expansion of forwarding
2. Diversification of shipping
space procurement
Volume from Forwarding
Volume from Short-termChartered Vessels
Volume from Owned andLong-Term Chartered Vessels
Target Region: AsiaCross-Regional Expansion of Successful Business Models in
Thailand/Malaysia
100
150
200
250
300
FY2010 FY2013 FY2016
Logistics: Revenues in Asia (JPY billion)
Schenker
NYK
DHL
Thailand
NYK
Schenker
DHL
MalaysiaSize
No.1
No.2
No.3
Logistics Operators in Thailand/Malaysia
Legend:
InternallyDevelop
Cross-TrainedEmployees
Business environmentfor Containers
Ocean Forwarding
Air Forwarding
Comprehensively capture customers transportation needs across
the entire or part of their supply chain over the long-term
More Than Shipping: Capitalize on contract logistics
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More Than Shipping 2: Automobiles
1. Hub & Spoke
Production Hub Ports Markets
SingaporeEurope
Middle East
Handling Volume:800,000 (2010)
Asian Hub & Spoke
2. Full-Service Transportation Capabilities
Production Automobile Terminals / PDI in Asia
China(Dalian, Tianjin, Shanghai, Guangzhou)
Thailand
Malaysia
Philippines
Indonesia
India
Local Dealer Local Plant
MarketsScale of NYK Inland Transport Operations
SAL* Shipment Volume: 80,000 (2010)
Production Hub Ports Markets
AsiaEurope
European Hub & Spoke
Gioia Tauro(Italy)
Zeebrugge /Antwerp
(Belgium)
Handling Volume:120,000 (2010)
Handling Volume:1,230,000 (2010)
MediterraneanNorth Africa
Nordic,UK,
EuropeanContinent
UECC*** ShipmentVolume: 1,120,000 (2010)
- Save T.T.**- Higher
Frequency- LowerInventory
160,000
75
ThailandChina Asia(Others)
# of Car Carrier Trucks 700 190
Inland Auto TransportVolumes
800,000 160,000
Handling Volume: 1,700,000 (2010)
Handling Volume: 160,000 (2010)
Handling Volume: 300,000 (2010)
JapanUS/Europe
JapanAsia
US/Europe
More Than Shipping: Hub & spoke and automobile transportation
JapanThailand
IndiaChina
MalaysiaIndonesia
Australia
**T.T Transit Time
***UECC: Intra-Europe focused shipping subsidiary of NYK Group*SAL: Intra-Asia focused shipping subsidiary of NYK Group
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Strategic Investment(i.e. Shuttle Tanker)
Retain and develop outstanding seafarers
to further strengthen NYK Groups technology, safety and trust
Shipping industrylacks competent
seafarers
NYK-TDG Maritime Academy in the Philippines Established in 2007 ahead of our competitors
Highly competent graduates onboard NYK vessels
Core personnel provided to ensure safe operation
More Than Shipping 3: Energy / Natural Resources 1
NYK Group Technology(i.e. DPS Bow Loading System)
DPS (Dynamic Positioning System):
System capable of retrieving accurate positioning
data using GPS and maintaining the vessel at the
programmed location.
System utilized on NYKs deepwater drilling
vessel Chikyu
Bow Loading System:
System is designed to allow loading at the bow of
two vessels in tandem.
Variable Pitch Propeller:
Propellers with angle-adjustable blades
Azimuth Thruster:Propellers attached to a pod that
can rotate 360 degrees horizontally
DPS Bow Loading System
More Than Shipping: NYK Groups technology, safety and trust
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More Than Shipping: Establish presence close to our customers
Singapore
Jakarta
NYK Bulkship Asia
Tanker (MR/AFRAMAX)Dry Bulk Businesswithin Intra-Asia region(Total 50 vessels)
NYK Bulkship AtlanticNYK Bulkship AtlanticDry Bulk Business in Atlantic Region(50 vessels)
Antwerp New York
Houston
Rio de Janeiro
Seoul
NYK Bulkship KoreaKorea Dry BulkBusiness(10 vessels)
Beijing
Shanghai
Guangzhou
Hong Kong
NYK Bulkship ChinaChina Dry Bulk Business
Norway
TATA NYK Shipping
India Dry Bulk Businessincluding Tata Group Cargo(20 vessels)
SAGA ShiphodingBoxshape Ship Business (30 vessels)
London
NYK LNG AtlanticLNG Business in Atlantic Region(10 vessels)
Knutsen NYK Offshore TankersShuttle Tanker Business (30 vessels)
NYK CooI AB StockholmNYK Reefers Ltd.Reefer Business (30 vessels)
Stockholm
Stolt NYK Asia Pacific ServiceChemical Tanker Business(5 vessels)
Mumbai Kolkata
Global Network of Natural Resources and Energy Transportation Business
Business Segments
: Dry & Liquid: Dry: Liquid
Figures inparentheses are
FY2016 operatingvessel numbers
Tokyo
NYK Line Tokyo
More Than Shipping 4: Energy / Natural Resources 2
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Detailed Financial Targets
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Financial Targets (Earnings and Financial Targets)
Revenues
Operating Income
Recurring Profit
Net Income
FY2011Estimate
2,000
90
80
50
FY2012Estimate
2,100
110
100
75
FY2013Estimate
2,300
140
130
95
FY2016Target
2,700
180
170
125
(JPY, billions)
FY2010Forecast
1,930
130
120
76
11%
25%
Depreciation and Amortization
Operating Cash Flow
Investing Cash Flow
ROE
Payout Ratio
100
170
-160
110 120 130
130 180 200
-200 -230 -200
7% 10% 12%
Target: 25% consolidated payout ratio
23
Achieve average ROE of 10% (FY11-13) and payout stable dividends
Interest-bearing Debt
Shareholders Equity
D/E Ratio
Shareholders Equity Ratio
980
670
1.46x
31%
970 1,030 1,030
700 760 830
1.39x 1.36x 1.24x
32% 32% 32%
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2424
Financial Targets (Segment Breakdown)
(JPY,billions)
FY2010Forecast
FY2011Estimate
FY2012Estimate
FY2013Estimate
FY2016Target
Revenues 800 820 870 930 1,040
RecurringProfit
59.0 42.0 53.0 73.0 100.0
GlobalLogistics
Total
(JPY,billions)
FY2010Forecast
FY2011Estimate
FY2012Estimate
FY2013Estimate
FY2016Target
Revenues 1,065 1,135 1,210 1,325 1,670
RecurringProfit
59.5 34.5 42.5 52.5 65.5
(JPY,billions)
FY2010Forecast
FY2011Estimate
FY2012Estimate
FY2013Estimate
FY2016Target
Revenues 207.4 220 220 220 220
RecurringProfit
1.5 3.5 4.5 4.5 4.5
(JPY,billions)
FY2010Forecast
FY2011Estimate
FY2012Estimate
FY2013Estimate
FY2016Target
Revenues 463 500 530 560 670
RecurringProfit
36.5 9.5 12.0 17.5 17.5
(JPY,billions)
FY2010Forecast
FY2011Estimate
FY2012Estimate
FY2013Estimate
FY2016Target
Revenues 120 150 150 150 150
RecurringProfit
7.0 8.0 8.5 9.0 9.0
(JPY,billions)
FY2010Forecast
FY2011Estimate
FY2012Estimate
FY2013Estimate
FY2016Target
Revenues 87.5 85 100 105 120
RecurringProfit
7.5 5.0 8.0 8.0 9.0
(JPY,billions)
FY2010Forecast
FY2011Estimate
FY2012Estimate
FY2013Estimate
FY2016Target
Revenues 394.5 400 430 510 730
RecurringProfit
8.5 12.0 14.0 18.0 30.0
Liner Trade
Terminal and
HarborTransport
Air CargoTransportation
Logistics
Bulk ShippingTotal
OtherTotal
Logistics and bulk shipping are the key growth drivers
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25
Mid-Term Management Plan Market Assumptions
Yen/$Currency Exchange Rate
Per $1/MT increase in bunker priceSensitivity againstRecurring Profit
Per JPY1 Appreciation to US$
MarketConditions
Container(FreightRates)
Asia -> North America*
Asia -> Europe*
Container(TransportVolume)
Asia -> North America (1,000TEU)
Asia -> Europe (1,000TEU)
Bulk andEnergyCarrier
Capesize (4TC)
Panamax (Pac)
Handymax (Pac)
Handy (Pac)
VLCC
Car Carrier Transport Volume (1,000 vehicles)
Air Cargo YIELD*
Capable Weight (1,000 ton)
Fuel Oil Bunker Fuel
MOPS (Jet Fuel)
8585858586
- 200 million- 200 million- 200 million- 200 million- 200 million
FY2010 FY2011 FY2012 FY2013 FY2016103 105 105 105 105
100 90 90 90 90
650 710 720 750 890
510 520 550 600 740
$27,054 $25,000 $25,000 $30,000 $30,000
$18,709 $20,000 $20,000 $20,000 $20,000
$16,468 $16,000 $16,000 $16,000 $16,000
$13,517 $13,000 $13,000 $12,000 $12,000
$31,222 $35,000 $40,000 $50,000 $50,000
3,070 3,080 3,350 3,530 3,920
88 90 91 91 91
410 370 380 380 410
$491 $650 $650 $650 $650
$94 $100 $100 $100 $100
- 1.8 billion - 1.6 billion - 1.7 billion - 1.9 billion - 2.0 billion
25* Figures are indexed, FY2008Q1 = 100
Shipping industry is expected to remain relatively weak for the near term,but the market is projected to recover steadily in the medium to long-term
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Supplementary Material
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Cost Reduction Initiatives
Further Expense Reduction:
Fuel Expense JPY6 billion/yearLiner Related etc.
30101010
TotalFY2013FY2012FY2011
Expense Reduction:
Fuel Expense (excl. Liner) JPY10 billionLiner Related JPY13 billion etc.
Major cost reduction initiatives including slow-steaming andlowering of Containership fixed costs will be completed during FY2010
28
FY2010 Forecast
Continuing to implement cost reduction initiatives
(JPY, billions)
(JPY, billions)
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Environmental Initiatives (Maximizing Fuel Economy)
Introduction of Air-Lubrication System:Initiative Aligned with Long-Term Vision
Hardware: Proactive Technology DevelopmentAligned with Long-Term Vision
1. Real-time information sharing between vesseland on-shore operations(actively communicate weather, operational schedule,operational status [position, vessel speed, fuel, etc.])
2. Optimize vessel operations to maximize fueleconomy
Software: Ongoing Challenge to Improve SafetyStandards and Maximize Fuel Economy
Broadbandization
A) Advance monitoring mechanisms of vessel operations
(NYK emissions)
B) Link Weather Routing and Ship's information
Management System (SIMS) to support optimal route
selection and vessel operations
Goal: Closely monitor vessel
operations, such as operatingschedule, fuel economy, positionand weather information
Increase communicationbetween vessel andon-shore operations
Weather Routing SIMS
NYK emissions
Technology
Timeline2008 2010 2015 2020 2030
Gigacell
Energy saving hull
appendage development /
installation
Application of air-
lubrication system to
heavy load ships
Discussions on
energy savingdevelopments
Energy
saving fandevelopment
Twin-screwvessel
Lower windpressure
resistance
Lower frictionresistance
Largersecondary
battery capacity
Lightweightbody
Non-ballast watership (NOBS)
SystemExperimentation Stage
Early Test/ApplicationStage
NYK SuperEco Ship 2030
ElementTechnology Test
Vessel shape
Lower friction
Propulsion system
Control
Ship power saving
- Development of optimalvessel shape
- Propulsion efficiencyimprovement
- Introduction of energysaving equipment
Air-lubrication systemair recovery
Application of air-lubrication
system to coal ships
Twin-screw BCdevelopment
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Operations
Vessels
Goal: Achieve 10% improvement in fuel efficiency by FY2015 from FY2010 levels