The Propeller Club, Port of Basel

Jeremy NixonManaging Director

NYK Group Europe Ltd 10th March 2009

NYK Group – Liner History

History of NYK Group

NYK Group History

• 1885 Nippon Yusen Kaisha (NYK), NYK begins trading 1st October with 58 steamships

• 1896 1st Asia-Europe liner service

• 1945 Fleet of 37 vessels remain, only 1 ocean going

• 1968 HAKONE MARU, 1st fully containerised vessel

• 1969 TOYOTA MARU No. 5 – NYK’s 1st car vessel

• 1970 JINTSU MARU – NYK’s 1st pure car carrier (PCC)

• 2005 New medium-term management plan, "New Horizon 2007," released

NYK Group Europe History

• 1971 - The Trio Service is inaugurated on schedule - NYK's m.v. "Kamakura Maru" sails from Japan in December.

• 1972 - Following the Trio Consortium, the 'Mediterranean Far East Consortium' (or Med Club) is established to containerise this trade, comprising Lloyd Triestino, Messagerie Maritime, Chargeurs Reunie, NYK and MOL. The Med Club serves from Barcelona, Marseilles, Genoa and Trieste to/from Singapore Taiwan, Hong Kong, Japan and South Korea.

• 1990 - First Intra-European trade begins - the North West Europe-Portugal service.

• 1994 - Creation of NYK Own agencies within Europe, starting with UK, quickly followed by Benelux and Germany and later some Scandinavian countries.

• 1990's - Emergence of the MegaCarrier competitors. Introduction of the FEFC new tariff NT 90.

• 2007 - NYK's Liner, RORO and Logistics companies in Europe merge to form NYK Group Europe Ltd.

The Change And The Challenge NYK’s History of growing and changing as a shipping line

１９６８Container Ship

１９６２Tanker

１９６０Ore Bulk Carrier

１９７４PCC

１９８３LNG Carrier

１９９０Resumption in

Cruise

1960 Withdrawal from

Passenger Ship Service

“Cargo Liner Company” to “All Round Marine Transportation Company”

Rebuilding after wartime damage

Hakone Maru – California Service

After WW II

1945 - 37 ships

2005 – 650 ships

2010 – 880 ships

NYK GroupWorldwide service network51,000 employees240 owned offices120+ years of service320 logistics centres

1.9million m2 warehousing

Global supply chain managementIntegrated business units for all modes of transport: Air, Land & Sea2007-08 Group revenue $23.9Bn2008-09 Group revenue $27Bn (forecast)Group assets $18.1BnNYK Group Website – www.nyk.com

NYK Group Mission StatementThrough safe and dependable monohakobi (transport), we contribute to the betterment of societies throughout the world as a comprehensive global-logistics enterprise offering ocean, land, and air transportation.

Together with Our CustomersThrough the use of our extensive skill and expertise and by considering each business site to be of utmost importance, we always work to create new value so that our customers will consider us a trusted and reliable partner.

Together with Our Shareholders and InvestorsWe aim to enhance our corporate value by being financially responsible and by conducting business activities in an open, honest, and transparent fashion.

Together with SocietyAs a good corporate citizen, we positively take on the tough issues that challenge our society, such as concerns involving the preservation of our natural environment, as we work for the betterment of the world that we inhabit.

Together with All Staff Members in the NYK GroupAs a global enterprise that has the utmost respect for diversity in the workplace and the spirit of challenge, we emphasize the development of employee talents so that all staff members can take pride in their work and eventually fulfill their dreams.

Liner (Container) No.8 4.2% share(Top 5 carriers make up 45% of global vessel fleet) – (No.1 Carrier = 15 %)

Ro/Ro (Car Carrier) No.1 17.3% share (Top 5 carriers make up 85% of global vessel fleet) – (No.2 Carrier = 14.10 %)

Bulk No.3 12% share (Top 5 carriers make 69% of Global vessel dwt – (No.1 Carrier = 25 %)

Tanker No.3 10% share (Top 5 carriers make 63% of Global vessel dwt - (No.1 Carrier = 20 %)

LNG No.5 7.2% share (Top 5 carriers make 73% of Global vessel cbm - (No.1 Carrier = 38 %)

Cruise World’s best large-ship Cruise Line

(Condé Nast Traveler magazine 1996 - 2005)(Travel + Leisure Magazine 1996 - 2006)(Highest rating – Berlitz Ocean Cruising & Cruise ships 2004)

NYK Global Ranking

NYK Group Portfolio

Group Revenue

• 2006-07 - $18.61 Bn• 2007-08 - $23.29 Bn• 2008-09 - $27 Bn (forecast)

www.nykline.com

NYK Global Liner service network

About NYK Liner

NYK Liner Services

• Global Coverage with a Global office network – 144 offices

• Door to Door capability• Premium service/reliability focus• Member of the Grand Alliance – one of the

worlds largest shipping networks.• Grand Alliance founded in 1998• NYK Fleet of 155 container ships• Key partnerships with OOCL, Hapag Lloyd

and MISC• ‘TSK’ intra Asia brand • Investment in own terminals• Global System – OSCAR introduced in

2006.

Environmental Policy

• ISO 14001 Accreditation.• Global 100 Most Sustainable Corporations.• FTSE 4 Good Index.• Dow Jones Sustainability World Index.• Clean Cargo Working Group.• Winners of Green Apple Award in 2006 and

2007. Supported by the Environment Agency.

Management - NYK Cool Earth Project

• Started in April 2008• Investment in environmental technology and sustainability

Innovation - Solar Power (Auriga Leader)

• NYK and Nippon Oil Joint Project

• World-first

• Energy Output: 40 kilowatts

• Aims: Test Purposes

The system will be connected to a 440V electrical network with the aim of utilizing the solar power generation system for ship propulsion in the future.

• Launched December 19th 2008

Asia/Europe

• Market Size : 16.8 m teu in 2008• Unbalanced : w/b 12.2m teu (73%), e/b 4.6m teu (27%)• Regional Split : N.EUR (66%), MED/BS (34%)• 2009 -> Negative trade growth !!! (Q1 market is 20% to 30% down)• Weekly Loop Services : 60 in Q2/08 has fallen to 47 in Q1/09 !• (NYK has moved from 10 to 8 sailings p/w)

Global Liner Health Check

• Over 10% of world fleet is idle and growing rapidly !• Jan 5th 09 : 210 vessels; 550,000 teu• Mar 2nd 09 : 453 vessels; 1,350,000 teu • Global container fleet : 12.2m (1st Feb) -> 13.8m (+13.4% p/a)• Global container demand : ‘+3% p/a in 2009’ (highly optimistic)• Ceased Trading : Senator Line, New Econ Line, Great Ocean Line• Collective industry loss of $32 Bn in 2009 ?

Thank you!