Financial Results for FY14/3 2nd Quarter

and Forecast for FY14/3

October 2013

Contents

1)

Results for FY14/3 2nd Quarter

p.2-4

2)

Revised Forecast for FY14/3

p.5-7

3)

Overview of Each Industrial Segment

p.8-12

4)

Financial Position

p.13

5)

Fleet in Operation

p.14

Summary of FY14/3 2nd Quarter Results

FY13/3

FY14/3

(billion yen)

1Q
Revenues

2Q

1H

3Q

4Q

2H

Fullyear

1Q

2Q

477.5 466.4 944.0 462.4 490.6 953.0 1,897.1 528.4 560.6

1H

Yearon-year

1,089.1

145.0

Operating Income

6.8

11.0

17.8

-2.1

1.6

-0.4

17.4

6.7

13.2

19.9

2.0

Recurring Profit

4.8

8.2

13.0

2.2

2.4

4.6

17.7

11.4

14.1

25.6

12.5

Net Income

-1.3

-2.8

-4.1

7.3

15.7

23.0

18.8

8.5

11.9

20.5

24.6

98.03

18.30

$716.78 $660.62 $688.70 $668.97 $646.71 $657.84 $673.27 $643.46 $613.87 $628.66

-$60.04

Exchange Rate
Bunker Oil Price

80.77 78.69 79.73 79.79 90.07 84.93

82.33

97.72 98.34

- FY14/3 1H : Operating income and recurring profit increased due to yen depreciation
and lower bunker price. Improved valuation and gain from sale of investment securities led
to net profit.

Comparison of Financial Results between

FY13/3 2nd and FY14/3 2nd by Industrial Segments
Industrial
Segments
(billion yen)
Liner
Global
Logistics

Air Cargo
Logistics
Total

Bulk
Shipping

Bulk Shipping
Cruises

Others

Real Estate
Other
Elimination/
Unallocation
Consolidated

FY13/3

FY14/3
Fullyear

1Q

2Q

1H

Year-onyear

1Q

2Q

1H

3Q

4Q

2H

137.8
-0.8
20.3
-0.7
87.8
1.2
246.0
-0.3

137.9
3.4
19.1
-1.6
90.9
1.8
248.0
3.5

275.8
2.6
39.4
-2.4
178.8
3.0
494.1
3.2

126.1
-2.3
19.6
-0.8
93.2
1.6
238.9
-1.5

134.0
-1.9
18.7
-1.6
94.7
0.0
247.5
-3.4

260.2
-4.2
38.4
-2.4
187.9
1.7
486.5
-4.9

536.0
-1.6
77.8
-4.8
366.8
4.7
980.7
-1.7

148.5
-0.6
20.1
-2.4
104.7
0.5
273.3
-2.4

155.8
-0.2
21.8
-2.3
107.0
2.4
284.7
-0.1

304.3
-0.8
42.0
-4.8
211.7
3.0
558.1
-2.6

28.5
-3.4
2.5
-2.4
32.9
0.0
63.9
-5.9

208.6
5.1

196.1
3.6

404.8
8.7

201.8
3.8

217.8
5.1

419.7
9.0

824.5
17.7

230.4
13.2

246.6
11.6

477.1
24.9

72.3
16.1

8.6
-1.2
2.5
1.0
43.8
0.1
-32.1
0.0
477.5
4.8

9.3
0.0
2.5
1.0
41.0
0.0
-30.7
0.0
466.4
8.2

17.9
-1.1
5.1
2.0
84.8
0.1
-62.8
0.0
944.0
13.0

7.7
-1.6
2.6
0.9
41.5
0.6
-30.3
0.0
462.4
2.2

9.3
-0.8
2.6
0.9
47.2
0.7
-34.0
0.0
490.6
2.4

17.0
35.0
-2.5
-3.7
5.3
10.4
1.8
3.9
88.8 173.6
1.3
1.4
-64.4 -127.2
0.0
0.0
953.0 1,897.1
4.6
17.7

10.8
-0.5
2.4
0.9
45.9
0.3
-34.6
0.0
528.4
11.4

13.2
24.0
1.7
1.1
2.5
4.9
0.9
1.9
47.5
93.4
0.0
0.2
-34.0
-68.6
0.0
0.0
560.6 1,089.1
14.1
25.6

6.0
2.3
-0.1
-0.1
8.6
0.1
-5.8
0.0
145.0
12.5

* UpperRevenues

LowerRecurring Profit

*From FY14/3, previous Terminal and Harbor Transport is merged with Liner segment. One consolidated subsidiary
which used to be included in Liner is now categorized into Bulk Shipping. Figures in this material are all restated
accordingly.

Analysis of Change in Recurring Profit

between FY13/3 2Q and FY14/3 2Q
(billion yen)

Yen Depreciation
Lower Bunker Oil Price
Market Effects etc
Cost Reduction
New Consolidation

12.8

98.03/$, Depreciated by 18.30

5.1

$628.66/MT, Decreased by $60.04

-18.7
13.2

Liner 9.1

0.4
-0.3

Others
Total

12.5

Revised Forecast for FY14/3

FY13/3(Result)
1H

(billion yen)

1Q

2H
2Q

944.0
477.5 466.4
17.8
Operating Income
6.8
11.0
13.0
Recurring Profit
4.8
8.2
-4.1
Net Income
-1.3
-2.8
Revenues

Exchange Rate

80.77

78.69

3Q

4Q

FY14/3 (Forecast)
Fullyear

1H(Result)
2H
1Q

2Q

Fullyear

Change
Year-on- from
previous
year
forecast
(Full year)

953.0
1,897.1
462.4 490.6
-0.4
17.4
-2.1
1.6
4.6
17.7
2.2
2.4
23.0
18.8
7.3
15.7

1,089.1
1,101.8 2,191.0
528.4 560.6
19.9
22.0
42.0
6.7
13.2
25.6
24.4
50.0
11.4
14.1
20.5
9.5
30.0
8.5
11.9

293.8
15%
24.5
141%
32.2
182%
11.1
59%

79.79

97.72

15.19

90.07

82.33

98.34

97.00

97.52

52.5
2%
-4.5
-10%
0.0
0%
0.0
0%

Bunker Oil Price $716.78 $660.62 $668.97 $646.71 $673.27 $643.46 $613.87 $630.00 $629.33 -$43.94

- Sensitivity against recurring profit (Full-year)

Exchange rate : 97.52/$
1.4 billion increase per 1/$ depreciation
Bunker oil price : $629.33/MT
170 million increase per $1/MT decrease
- Cash dividend : 2/share for interim
2/share for year-end (Forecast)

Comparison between FY13/3 Results

and FY14/3 Revised Forecast by Industrial Segments

(billion yen)

FY14/3(Forecast)

FY13/3(Result)

Industrial
Segment

1H

2H

Fullyear

1Q

2Q

1H
(Result)

304.3
-0.8
42.0
-4.8
211.7
3.0
558.1
-2.6
477.1
24.9

2H

Fullyear

Yearonyear

1Q

2Q

137.8
-0.8
20.3
-0.7
87.8
1.2
246.0
-0.3
208.6
5.1

137.9
3.4
19.1
-1.6
90.9
1.8
248.0
3.5
196.1
3.6

275.8
2.6
39.4
-2.4
178.8
3.0
494.1
3.2
404.8
8.7

260.2
-4.2
38.4
-2.4
187.9
1.7
486.5
-4.9
419.7
9.0

536.0
-1.6
77.8
-4.8
366.8
4.7
980.7
-1.7
824.5
17.7

148.5
-0.6
20.1
-2.4
104.7
0.5
273.3
-2.4
230.4
13.2

155.8
-0.2
21.8
-2.3
107.0
2.4
284.7
-0.1
246.6
11.6

310.6 615.0
-4.1
-5.0
50.0
92.0
-2.2
-7.0
221.7 433.5
4.5
7.5
582.3 1,140.5
-1.8
-4.5
487.2 964.5
26.1
51.0

78.9
-3.3
14.1
-2.1
66.6
2.7
159.7
-2.7
139.9
33.2

8.6
-1.2
2.5
1.0
43.8
0.1
-32.1
0.0
477.5
4.8

9.3
0.0
2.5
1.0
41.0
0.0
-30.7
0.0
466.4
8.2

17.9
-1.1
5.1
2.0
84.8
0.1
-62.8
0.0
944.0
13.0

17.0
35.0
-2.5
-3.7
5.3
10.4
1.8
3.9
88.8 173.6
1.3
1.4
-64.4 -127.2
0.0
0.0
953.0 1,897.1
4.6
17.7

10.8
-0.5
2.4
0.9
45.9
0.3
-34.6
0.0
528.4
11.4

13.2
24.0
20.4
44.5
1.7
1.1
-0.6
0.5
2.5
4.9
5.0
10.0
0.9
1.9
1.6
3.5
47.5
93.4
91.5 185.0
0.0
0.2
-0.3
0.0
-34.0 -68.6 -84.8 -153.5
0.0
0.0
-0.5
-0.5
560.6 1,089.1 1,101.8 2,191.0
14.1
25.6
24.4
50.0

9.4
4.2
-0.4
-0.4
11.3
-1.4
-26.2
-0.5
293.8
32.2

- Bulk Shipping : Expect improvement versus FY13/3 due to further reduction of operating costs through
slow-steaming, and steady earnings from LNG carriers and car carriers.

Liner
Global
Logistics

Air Cargo
Logistics
Total

Bulk
Shipping

Bulk Shipping
Cruises

Others

Real Estate
Other
Elimination/
Unallocation
Consolidated

* (Upper) Revenues

(Lower) Recurring Profit

Comparison between FY14/3 Previous Forecast

and Revised Forecast by Industrial Segments
Industrial
Segment
(billion yen)
Liner
Global
Logistics

Air Cargo
Logistics
Total

Bulk
Shipping

Bulk Shipping
Cruises

Others

Real Estate
Other
Elimination/
Unallocation
Consolidated

* (Upper) Revenues

Previous Forecast
1H

2H

311.0
0.0
41.5
-5.0
215.5
2.5
568.0
-2.5
462.0
23.5

Fullyear

Revised Forecast
Fullyear

Change
1H

2H

Fullyear

1H

2H

317.5
628.5
2.5
2.5
50.5
92.0
0.0
-5.0
226.5
442.0
5.0
7.5
594.5 1,162.5
7.5
5.0

304.3
-0.8
42.0
-4.8
211.7
3.0
558.1
-2.6

310.6
615.0
-4.1
-5.0
50.0
92.0
-2.2
-7.0
221.7
433.5
4.5
7.5
582.3 1,140.5
-1.8
-4.5

-6.6
-0.8
0.5
0.1
-3.7
0.5
-9.8
-0.1

-6.8
-6.6
-0.5
-2.2
-4.8
-0.4
-12.2
-9.3

-13.5
-7.5
0.0
-2.0
-8.5
0.0
-22.0
-9.5

437.0
17.5

899.0
41.0

477.1
24.9

487.2
26.1

964.5
51.0

15.1
1.4

50.2
8.6

65.4
10.0

23.0
21.5
44.5
1.0
0.0
1.0
5.0
5.0
10.0
2.0
1.5
3.5
88.5
90.5
179.0
0.0
-0.5
-0.5
-76.0
-80.5 -156.5
0.0
0.0
0.0
1,070.5 1,068.0 2,138.5
24.0
26.0
50.0

24.0
1.1
4.9
1.9
93.4
0.2
-68.6
0.0
1,089.1
25.6

20.4
44.5
-0.6
0.5
5.0
10.0
1.6
3.5
91.5
185.0
-0.3
0.0
-84.8 -153.5
-0.5
-0.5
1,101.8 2,191.0
24.4
50.0

1.0
0.1
0.0
0.0
4.9
0.3
7.3
0.0
18.6
1.6

-1.0
-0.6
0.0
0.1
1.0
0.2
-4.3
-0.5
33.8
-1.6

0.0
-0.5
0.0
0.0
6.0
0.5
3.0
-0.5
52.5
0.0

(Lower) Recurring Profit.

- Liner : Revised our forecast downward mainly due to lower freight rate projection compared to previous forecast.

Overview of Each Industrial Segment 1)

1. Liner Container:
Container Lifting, Slot(1,000TEU)
FY13/3(Result)

Asia

Lifting

North America

Slot
Utilizaion

AsiaEurope

Lifting
Slot
Utilizaion

1Q

2Q

3Q

4Q

166
195
85%
133
142
94%

171
198
86%
138
150
92%

147
186
79%
123
135
91%

140
180
78%
114
130
88%

Fullyear

1Q

AsiaEurope

2Q

(Result) (Result)

624 154 179

759 199 204
82% 77% 88%
508 124 135
557 143 144
91% 87% 93%

Trend of Container Freight Rate(Index, FY09/3 1Q=100)

FY13/3(Result)

AsiaNorth America

3Q

4Q

Fullyear

Change
from
previous
forecast

168
198
85%
126
136
93%

160
188
85%
124
134
92%

662
789
84%
509
558
91%

-2
-10
1%
-0
-14
2%

FY14/3(Forecast)

1Q

2Q

3Q

4Q

Fullyear

104
86

107
84

103
76

102
74

104
80

3Q

4Q

Fullyear

Change
from
previous
forecast

94
70

95
72

96
71

-5
-4

FY14/3(Forecast)
1Q

2Q

(Result) (Result)

100
69

96
73

- Lifting: Expect increase in cargo volume on both Transpacific and Asia-Europe routes, compared to FY13/3.
- Freight Rates: Adjusted downward on projection for both Transpacific and Asia-Europe routes.

Overview of Each Industrial Segment 2)

2. Air Cargo Transportation (NCA)
FY13/3(Result)
1H
1Q

2H
2Q

39.4
20.3
19.1
-2.4
Recurring
billion yen
-0.7
-1.6
Profit
206
Capable 1,000 ton
100
106
Weight
1,236
Volume Mil.ton
kilo
(RTK)
606
630
1,769
Capacity Mil.ton
kilo
(ATK)
857
912
84
FY09/3
YIELD 1Q=100
88
81
$124
US$
MOPS per bbl
$122 $127

Revenues

billion yen

3Q

4Q

38.4
19.6
18.7
-2.4
-0.8
-1.6
191
99
92
1,160
610
550
1,678
890
788
89
88
89
$128
$127 $129

FY14/3(Forecast)
Fullyear

77.8
-4.8
397
2,396
3,447
86
$126

1H (Result)
1Q
2Q
41.9
20.1
21.8
-4.7
-2.4
-2.3
201
98
103
1,216
596
620
1,761
868
893
90
90
89
$120
$116 $124

2H

Fullyear

Change
from
previous
forecast

50.0

92.0

0.0

-2.2

-7.0

-2.0

227

428

1,331

2,547

-30

1,824

3,585

-49

93

91

-3

$125

$122

-$4

- FY14/3 1H Recurring profit deteriorated due to prolonged slow cargo movement particularly out of
Japan.

Overview of Each Industrial Segment 3)

3. Logistics Segment
FY14/3 Forecast

FY13/3(Result)
(billion yen)

2H

1H
1Q

2Q

178.8

3Q

4Q

1H (Result)
2H
1Q

2Q

221.7 433.5

366.8
87.8

90.9

93.2

94.7

3.0
4.5

4.7
1.2

1.8

1.6

-8.5

104.7 107.0

1.7

3.0

Fullyear

211.7

187.9

Revenues
Recurring
Profit

Fullyear

Change
from
previous
forecast

0.0

0.5

7.5

0.0

2.4

- Air forwarding handling volume decreased globally. Ocean forwarding handling volume
increased and profitability improved. Logistics business was quite stable in South Asia.
- Focus on further cost competitiveness through restructuring.

10

Overview of Each Industrial Segment 4)

4. Bulk Shipping 1) Market trend and forecast:
FY14/3 (Forecast

FY13/3 (Result)

B DI
Cape (4TC)

1Q

2Q

3Q

4Q

Fullyear

1Q

2Q

(Result)

(Result)

1,024

846

953

796

905

888

3Q

4Q

Fullyear

Previous
forecast

1,292 1,637 1,169 1,247 1,070

5,986 4,836 12,631 6,025 7,370 6,255 19,148 25,000 13,000 15,851 10,564

Dry Bulk
Panamax (Pac)
Carrier

8,150 6,144 6,573 6,900 6,942 7,264 8,612 11,000 8,000 8,719 7,691

Handymax (Pac)

8,415 7,905 7,512 6,712 7,636 7,709 8,146 10,000 9,000 8,714 8,302

Handy (Pac)

7,950 6,823 6,240 6,312 6,831 6,620 6,884 8,000 7,500 7,251 7,280

VLCC

33,665 4,577 17,942 9,257 16,360 12,542 12,571 18,000 18,000 15,278 18,386

Tanker

* Spot charterage by vessel type 4TC = average of 4 routes, Pac = Pacific-round, Currency Unit = US$ / day

- 2Q Dry Bulk Carrier market level improved particularly in Capesize bulker.

11

Overview of Each Industrial Segment 5)

4Bulk Shipping 2) Car Carrier
Car Transportation Result/Forecast(1,000Cars)

FY13/3(Result)
1H
1Q
All Trade
(1,000cars)

2H
2Q

1,720

3Q

4Q

FY14/3 (Forecast)
Fullyear

1H (Result)
1Q

2Q

1,820

1,730

2H
3Q

4Q

1,840

3,460
860

860

26%

900

830

880

11%

940

6%

920

43% 12% 17% 6%

3%

9%

3,660

60

6%

2%

920

6%

18%

Change

Fullyear

Change
from
previous
forecast

2% 11%

- FY14/3 : Foresees steady cargo volume supported by robust car sales in North America.

12

Financial Position
FY12/3 FY13/3 FY13/9
(Result) (Result) (Result)
Interest-bearing debt

billion yen

Shareholders' equity

billion yen

1,067.1 1,292.1 1,315.7

FY14/3
(Forecast)

FY14/3
(Previous
Forecast)

1,290.0 1,200.0

579.3

650.4

707.1

710.0

670.0

Shareholders' equity ratio

27%

27%

28%

28%

28%

DER

1.84

1.99

1.86

1.82

1.79

ROE

3%

4%

4%

29.8

93.9

52.2

105.0

105.0

-45.0

-100.0

Cash flow from operating activities

billion yen

Cash flow from investing activities

billion yen

-139.4

-135.5

-8.0

(Depreciation and amortization)

billion yen

(100.8)

(97.5)

(52.5)

(95.0) (100.0)
13

Fleet in Operation
FY13/3 (Result)
Industrial
Segment

Type of vessel

Owned (incl.
co-owned)
Vessels

Liner

Bulk
Shipping

Cruises
Total

FY13/9 (Result)
Owned (incl.
co-owned)

Total

Chartered

Vessels
Vessels
(1000Kt)
(1000Kt)
(1000Kt)

Vessels

Total

Chartered

Vessels
Vessels
(1000Kt)
(1000Kt)
(1000Kt)

Container ships
(incl. semi-container ships)

24

1,268

72

3,804

96

5,072

24

1,268

75

4,055

99

5,323

Bulk carriers (capesize)

37

7,041

89

15,707

126

22,748

35

6,557

86

16,444

121

23,000

Bulk carriers (panamax)

44

3,831

58

4,824

102

8,655

46

4,007

62

5,218

108

9,226

Bulk carriers (handysize)

64

2,701

97

4,298

161

7,000

65

2,830

105

4,893

170

7,723

Wood chip carriers

452

42

2,226

51

2,678

353

41

2,185

48

2,537

Car carriers

32

539

88

1,630

120

2,169

30

505

90

1,645

120

2,150

Tankers

54

9,186

28

3,415

82

12,601

53

8,904

28

3,595

81

12,499

LNG carriers

25

1,858

228

28

2,086

26

1,944

228

29

2,172

Multi-purpose carriers

14

285

33

478

47

763

15

303

34

507

49

810

Others

11

109

17

232

28

342

11

109

14

194

25

304

Cruise ships

13

22

13

22

316

27,283

528

36,851

844

64,135

314

26,794

539

38,972

853

65,766

-Co-owned ships's dwt is including not only NYK Group companies' ownership but also other non-affiliated
companies' ownership.
-The number of owned LNG Carriers including equity method affiliates are 66 as of FY13/3, 67 as of FY13/9.

-Capesize: Over 120,000DWT

-Panamax: 60,000-119,999DWT
-Handysize: Under 60,000DWT

14