Nippon Yusen Kabushiki Kaisha · TSE:9101
Nippon Yusen Kabushiki Kaisha — Nippon Yusen Kabushik New — Q2 2023 Earnings Presentation
33 slides from Nippon Yusen Kabushiki Kaisha's earnings presentation, Nov 6, 2023
Slide 1: Financial Results for Q2 FY2023, and FY2023 Full-year Forecast
Financial Results for Q2 FY2023, and FY2023 Full-year Forecast November 6, 2023 ©NYK Group. All rights reserved.
Slide 2: Contents
Contents 1. Overview of Q2 Results for FY2023 p.3-8 2. Forecast for FY2023 p.9-14 Progress of p.15-17 Medium-term Management Plan Appendix p.18-23 Segment Overview Fleet in Operation (Attachment) Ocean Network Express Financial Results for FY2023 2nd Quarter ©NYK Group. All rights reserved. 2
Slide 3: Overview of the Q2 Results for FY2023
1. Overview of the Q2 Results for FY2023 Results 1H review (year-on-year) Revenues: JPY1,168.3 billion (down JPY197.5 billion) ・Logistics – Handling volumes declined in both the air and ocean freight forwarding businesses, and freight rates fell (down JPY135.7 billion) ・Air Cargo Transportation – Si
Slide 4: Overview of Q2 Results by segment: Liner Trade, Air Cargo
1. Overview of the Q2 Results for FY2023 Results By segment (Recurring profit / year-on-year comparison) Liner Trade: JPY 46.7 billion (down JPY519.9 billion) Container shipping (Ocean Network Express) ・Cargo demand fell due to the impact of increased inventories in North America and higher interest
Slide 5: Overview of Q2 Results by segment: Logistics, Bulk Shipping
1. Overview of the Q2 Results for FY2023 Results By segment (Recurring profit / year-on-year comparison) Logistics: JPY13.7 billion (down JPY23.4 billion) ・Air freight & Ocean freight Markets fell on weak cargo volumes, and both handling volumes and profit greatly declined compared to the same perio
Slide 6: Summary of Q2 Results
Summary of Q2 Results Q2 Results FY2022 FY2023 Year-on- year (Billions of yen) Q1 Q2 1H Q3 Q4 2H Full-Year Q1 Q2 1H Revenue 673.0 692.8 1,365.8 684.3 565.8 1,250.1 2,616.0 567.5 600.8 1,168.3 -197.5 Operating 89.1 74.1 163.3 86.0 46.9 133.0 296.3 47.1 51.6 98.7 -64.5 Profit Recurring 377.7 387.6 765
Slide 7: Q2 Comparison by Segment
Q2 Comparison by Segment Q2 Results Industrial FY2022 FY2023 Year- Segment on-year (Billions of yen) Q1 Q2 1H Q3 Q4 2H Full-Year Q1 Q2 1H 51.8 49.4 101.2 52.2 47.1 99.4 200.7 56.4 55.2 111.7 10.4 Liner Trade 270.2 296.3 566.6 161.5 62.3 223.9 790.6 31.6 15.0 46.7 -519.9 Liner & Logistics Air Cargo 6
Slide 8: Analysis of Change in Recurring Profit between FY2022 and FY2023
Analysis of Change in Recurring Profit between FY2022 and FY2023 Q2 Results Analysis by factor Analysis by business P/L Increase Results P/L Decrease （billion yen） Yen \139.93/$ Depreciation 6.9 Depreciated by ¥8.37 Lower $604.38/MT Bunker Oil 4.2 Decreased by $235.57/MT Prices Market Liner (incl. O
Slide 9: Full-year forecast for FY2023
2. Full-year forecast for FY2023 Forecast Full-year forecast (Comparison with the forecast announced at the previous full-year results) Revenues: JPY2,280.0 billion (up JPY110.0 billion) ・Bulk Shipping: Up JPY57.5 billion ・Air Cargo Transportation: Up JPY54.5 billion Recurring profit: JPY235.0 billi
Slide 10: Full-year forecast by segment: Liner Trade, Air Cargo
2. Full-year forecast for FY2023 Forecast By segment (Recurring profit / loss compared with the forecast announced at the Q1 results) Liner Trade: JPY57.0 billion (down JPY10.0 billion) Container shipping (Ocean Network Express) • Although cargo traffic is expected to gradually recover in 2H, it wil
Slide 11: Full-year forecast by segment: Logistics, Bulk Shipping
2. Full-year forecast for FY2023 Forecast By segment (Recurring profit / loss compared with the forecast announced at the Q1 results) Logistics: JPY23.5 billion (up JPY0.5 billion) ・Air freight & Ocean freight: Handling volumes and freight rate levels are expected to decline due to the impact of fal
Slide 12: Summary of Forecast for FY2023
Summary of Forecast for FY2023 Forecast FY2022(Result) FY2023(Forecast) Change Year-on- from 1H 2H 1H(Result) Full- Year Prev. 2H Full-Year year Forecast (Billions of yen) Q1 Q2 Q3 Q4 Q1 Q2 1,365.8 1,250.1 1,168.3 Revenue 2,616.0 1,111.7 2,280.0 -336.0 110.0 673.0 692.8 684.3 565.8 567.5 600.8 163.3
Slide 13: Forecast by Segment for FY2023
Forecast by Segment for FY2023 Forecast Industrial FY2022 (Result) FY2023 (Forecast) Segment Year-on- Q1 Q2 1H year (Billions of yen) Q1 Q2 1H 2H Full-year 2H Full-year (Result) (Result) (Result) 51.8 49.4 101.2 99.4 200.7 56.4 55.2 111.7 79.3 191.0 -9.7 Liner Trade 270.2 296.3 566.6 223.9 790.6 31.
Slide 14: Forecast by Segment for FY2023 (change from previous forecast)
Forecast by Segment for FY2023 Forecast Industrial Previous Forecast Revised Forecast Change from Prev. Forecast Segment 1H (Billions of yen) 1H 2H Full-year 2H Full-year 1H 2H Full-year (Result) 104.5 76.0 180.5 111.7 79.3 191.0 7.2 3.3 10.5 Liner Trade 39.0 28.0 67.0 46.7 10.3 57.0 7.7 -17.7 -10.0
Slide 15: Progress of the Medium-Term Management Plan (FY2023-2026)
Progress of the Medium-Term Management Plan (FY2023-2026) ©NYK Group. All rights reserved. 15
Slide 16: Progress of the Medium-Term Management Plan (FY2023-2026)
Progress of the Medium-Term Management Plan (FY2023-2026) Core business advancement and Financial policy New business development (key strategy) (Improve capital efficiency and achieve sustainable growth) With the function strategy for supporting these Air Cargo Transportation Business Shareholder r
Slide 17: Financial Position
Financial Position FY2023 FY2023 FY2022 Sep. 2023 FY2026 (Previous (Revised (Result) (Result) (Forecast) *2 Forecast)*1 Forecast) Recurring Profit 1,109.7 159.2 200.0 235.0 270.0 (billion yen) Interest-bearing Debt 694.0 725.1 711.0 846.0 (billion yen) - Shareholders' Equity 2,478.6 2,647.1 2,520.0
Slide 18: Appendix
Appendix ©NYK Group. All rights reserved. 18
Slide 19: Segment Overview: Liner & Logistics - Air Cargo Transportation (NCA)
Segment-Overview: Liner & Logistics Segment 1．Air Cargo Transportation（NCA） FY2022(Result) FY2023(Forecast) 1H 2H Full- 1H(Result) Full- 2H Q1 Q2 Q3 Q4 year Q1 Q2 year Revenue 123.9 94.1 77.8 218.0 52.2 130.0 (Billions of yen) 62.5 61.3 54.4 39.7 37.0 40.8 Recurring Profit 43.9 17.6 0.3 61.5 0.2 0.5
Slide 20: Segment Overview: Liner & Logistics - Logistics
Segment-Overview: Liner & Logistics Segment 2．Logistics FY2021 FY2022 (Result) FY2023 (Forecast) Change from (Result) 1H 2H 1H(Result) Prev. Full- Forecast Full-year 2H Full-year Q1 Q2 Q3 Q4 Q1 Q2 year (Full-year) TEU 336 316 308 721 651 307 615 -21 Ocean (1,000TEUs) 167 169 164 152 151 157 Export Y
Slide 21: Bulk Shipping - Market trend and forecast
Segment-Overview: Bulk Shipping Business Segment 3．Bulk Shipping – １）Market trend and forecast Prev. FY2022 (Result) FY2023 (Forecast) Forecast Q1 Q2 Q1 Q2 Q3 Q4 Full-Year 2H Full-Year Full-year (Result) (Result) BDI 2,517 1,659 1,522 992 1,673 1,326 1,194 1,240 1,250 1,367 Dry Bulk Carriers Cape 21
Slide 22: Bulk Shipping - Automotive Business
Segment-Overview: Bulk Shipping Business Segment 3．Bulk Shipping – ２）Automotive Business FY2022 (Result) FY2023 (Forecast) Change from Prev. 1H 2H 1H(Result) Forecast Full-year 2H Full-Year (Full-year) Q1 Q2 Q3 Q4 Q1 Q2 All Trade 218 232 227 450 235 463 1 (10,000 Cars) 106 112 124 108 112 115 Year-o
Slide 23: Fleet in Operation
Fleet in Operation Sep, 2022 Mar, 2023 Sep, 2023 (Result) (Results) (Results) Industrial Type of Vessel Owned Segment Total Total Chartered Total (incl. co-owned) Vessels Vessels Vessels Kt (DWT) Vessels Kt (DWT) Vessels Kt (DWT) Liner & Liner Trade Container Ships 55 54 26 1,665 27 2,938 53 4,604 L
Slide 24: Ocean Network Express: Financial Results for FY2023 2nd Quarter
Financial Results for FY2023 2nd Quarter October 31, 2023 24
Slide 25: Index
Index 1. FY2023 2nd Quarter Results P.3 2. Liftings, Utilization Rates, P.4 and Freight Index in Major Trades 3. FY2023 Full Year Forecast P.5 4. ONE’s Response to Recent Changes in the P.6 Business Environment 5. Initiatives for FY2023 2nd Quarter P.7 6. Reference (Fleet Structure, Service P.8 Stru
Slide 26: FY2023 2nd Quarter Results
1. FY2023 2nd Quarter Results Outline Despite the start of the peak season, there was no strong recovery in cargo movement. The supply-demand balance softened due to an increase of newly built vessels, and short-term freight rate levels did not sustain their upward trend. The profit after tax for FY
Slide 27: Liftings, Utilization Rates, and Freight Index in Major Trades
2. Liftings, Utilization Rates, and Freight Index in Major Trades (Unit:1,000TEU) FY2022 FY2023 Liftings / Utilization by Trades 1Q 2Q 1H 3Q 4Q 2H Full Year 1Q 2Q 1H Results Results Results Results Results Results Results Results Results Results Asia - North America Lifting 577 578 1,155 449 468 916
Slide 28: FY2023 Full Year Forecast
3. FY2023 Full Year Forecast Outline Full-year results for FY2023 are expected to show a profit after tax of US＄ 851million, a decrease from the previous year, due to the deterioration of freight market caused by declining demand. (-US$ 14,146 million) • Although it takes some time to see a solid re
Slide 29: ONE's Response to Recent Changes in the Business Environment
4. ONE’s Response to Recent Changes in the Business Environment ⮚ Cargo movements from Asia to North America during July-September fell by 7.5% year-on-year. Cargo movement temporarily picked up in the peak season, but the speed of inventory adjustment was slow and sales of general consumer goods st
Slide 30: Initiatives for FY2023 2nd Quarter
５. Initiatives for FY2023 2nd Quarter 1. As a container shipping company that supports the supply chain, ONE will make investments to continuously provide high-quality, safe global transportation services. Initiative 2. ONE has positioned green strategy as its top management priority and will contin
Slide 31: Reference (Fleet Structure, Service Structure & New Order)
6. Reference（Fleet Structure, Service Structure & New Order) Fleet Structure Service Structure （FY2023 Q2 Structure of dominant and non-dominant space） 22% 35% Others Asia-North America Intra-Asia 20% Asia-Europe 23% Current Orders of New Vessels(Including Long-Term Chartered Vessels) ©2023 Ocean Ne
Slide 32: Appendix: Change of Demand and Freight index before/after COVID-19
7. Appendix Change of Demand and Freight index before/after COVID-19 ©2023 Ocean Network Express Pte. Ltd. All Rights Reserved 9
Slide 33: Legal Disclaimer
Legal Disclaimer The above statements and any others in this document that refer to future plans, earning forecasts, strategy, policy and expectations are “forward-looking statements”, which are made based on the information currently available and certain assumptions. Words such as, without limitat
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