more than shipping 2013

8/4/2019 More Than Shipping 2013

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March 31, 2011

More Than Shipping 2013- Grow with Asia, Expand across the Globe -


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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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44

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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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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11

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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More Than Shipping 2013- Grow with Asia, Expand across the Globe -


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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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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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20

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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21

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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23

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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2727

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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28

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

28

Operations

Vessels

Goal: Achieve 10% improvement in fuel efficiency by FY2015 from FY2010 levels

more than shipping 2013

Documents