Kawasaki Kisen Kaisha, Ltd. · TSE:9107
Kawasaki Kisen Kaisha — FY2005 Earnings Presentation
19 slides from Kawasaki Kisen Kaisha's earnings presentation, May 12, 2006
Slide 1: Financial Highlights Brief Report for Yearly FY2005
Financial Highlights Brief Report for Yearly FY2005 (1 April 2005 - 31 March 2006) 12 May 2006 Kawasaki Kisen Kaisha, Ltd.
Slide 2: A. Financial Highlights for FY2005
A. Financial Highlights for FY2005
Slide 3: A-1. Financial Results for FY2005
A-1. Financial Results for FY2005 (unit: billion yen) *2005F prospects are as of 11 November 2005 upon announcement of 1H 2005FY financial close. * *Ordinary income is income before income taxes and extra-ordinary items.
Slide 4: A-2. Key Points for FY 2005 results
A-2. Key Points for FY 2005 results <Comparison with FY 2005 prospects> • Generally as expected • Profit declining due to fuel oil price hike and freight rate fall in some containership trades <Comparison with FY 2004 results> Revenue rise, Ordinary Income* down, Net Income rise • Positive cargo mov
Slide 5: A-3. Variation Factors for 2005FY
A-3. Variation Factors for 2005FY Ordinary Income*: ‘05FY Prospect** 91.0,’04FY Result 107.2 => ’05FY Result 88.6 billion yen (unit: billion yen) Comparison with Comparison with ‘05FY prospect ‘04FY result (YoY) Fluctuation in Exchange Rate 0.1 6.8 Bunker Oil Price - 0.5 - 25.4 Market Volatility - 2
Slide 6: A-4. Major Financial Indices & Vessel Investment
A-4. Major Financial Indices & Vessel Investment FY2005 New ship Pre-owned total (unit:billion yen) Containership 5 4000TEU 3 - 3 5500TEU 2 - 2 Bulk Carriers 21 Capesize 8 1 9 Panamax 3 - 3 Handymax 5 - 5 Small Handy 1 - 1 Chip/Pulp - - - Corona 2 1 3 PCTC 12 Vessel 800 - 2 2 investment 2000 2 - 2 4
Slide 7: A-5. Division-wise Results 2005FY (Container Business)
A-5. Outline of Division-wise Results 2005FY (for Container Business) (YoY comparison : Revenues increase / profits decrease. Operating revenues - 451.4, Ordinary Income - 30.5 billion yen) z Business expansion - 5 new buildings delivered : 4000 TEU type x3, 5500TEU type x2 - Enhancement in Pacific
Slide 8: A-5. Division-wise Results 2005FY (Bulk Carriers)
A-5. Outline of Division-wise Results 2005FY (for Bulk Carriers) z Business expansion with delivery of 17 new ships* (Operating Tonnage : 153 mil. Ton, +2.9% (YoY) *Cape size x 8 , Panamax x 3, Handymax x 5, Small handy x 1 z Profitability declining due to market downturn. Bulk Carrier 2004 FY 2005
Slide 9: A-5. Division-wise Results 2005FY (Car Carriers)
A-5. Outline of Division-wise Results 2005FY (for Car Carriers) z Business expansion with delivery of 8 new ships (6500-unit x 2, 5000-unit x 3, 4300-unit x 1, 2000-unit x2) z Loaded volume increase : 2.55 million => 2.71 million units (YoY +6%), Off-shore trades (Trans-Atlantic, Thailand/Australia
Slide 10: A-5. Division-wise Results 2005FY (Energy Transportation)
A-5. Outline of Division-wise Results 2005FY (for Energy Transportation) - LNG Carrier : Stable progress in each project (total 30 vessels) 4 new ships delivered (for Ras Gas II x3, Snøhvit x1) - Thermal Coal Carrier : 16 vessels of our basic fleet in stable operation, Port congestion reducing, Effi
Slide 11: B. Prospects for FY2006
[IN KLINE B. Prospects for FY 2006
Slide 12: B-1. Prospects for FY2006
B-1. Prospects for FY2006 (unit: billion yen) 06F1H 06F Yearly FY2005 YoY YoY Prospects Prospects (results) Comparison Comparison (%) O p e r a t i n g Consoli 505.0 1,010.0 940.8 +69.2 +7.4% R e v e n u e s Non 405.0 810.0 742.6 +67.4 +9.1% Operating income Consoli 31.0 61.0 88.0 - 27.0 - 30.7% Non
Slide 13: B-2. Key Points for FY2006 prospects
B-2. Key Points for FY2006 prospects Ordinary Income*: ’05FY Result 88.6, ’06FY Prospects, “K”Line Vision 2008+ 75.0 =>63.0 bil.yen (unit: billion yen) Comparison with Comparison with ‘05FY result (YoY) “K”Line Vision 2008 + Fluctuation in Exchange Rate - 0.5 2.0 Bunker Oil Price - 17.4 - 13.5 Marke
Slide 14: B-3. Division-wise prospects
B-3. Division-wise prospects (Containership) Revenues increase / profits decrease - Stable cargo volume, Supply-demand balance continuously tight - Freight rate softened in previous year seems to hit the bottom - Business expansion/Cost Curtailing < Bunker price hike/Market downturn => Profitability
Slide 15: C. "K" LINE Vision 2008+
[IN KLINE C. “K” LINE Vision 2008*
Slide 16: C-1. "K" LINE Vision2008+ assignments
C-1. “K” LINE Vision2008+ assignments (Sustainable growth and establishment of a stable profitability structure) • Measures to support systematic expansion of business scale - Fleet upgrading plan achieving maximum investment efficiency - Ship operation administration structure supporting safety in
Slide 17: C-2. Fleet upgrading plan
C-2. “K” LINE Vision2008+ Fleet upgrading plan achieving maximum investment efficiency FY2006 New ship Pre-owned total Establishment fleet of 500 ships : adding 192 ships Containership 6 with 800 bln yen investment 5500TEU 3 - 3 8000TEU 3 - 3 Bulk Carriers 30 Capesize 9 2 11 Start of 2004-5F 2006F 2
Slide 18: C-3. Cost Structure Reform
C-3. “K” LINE Vision2008+ Cost Structure Reform Plans for FY 2006 (unit:billion yen) • Replacing high-cost chartered ships with 05FY 06FY newbuildings Cost saving items Results Prospects Operating Cost reduction 1.7 4.6 • Various measures to reduce docking costs Cargo handling charges reduction 1.3
Slide 19: C-4. Major Financial Indices
C-4. “K” LINE Vision2008+ Major Financial Indices Shareholder’s Equity FY2004 FY2005 FY2006 R e i n f o r c e m e n t Results Results Prospects Cash Flows from 450 140% 89.4 72.3 68.0 O p e r a t i n g A c t iv i t i e s 400 (Depreciation) (24.6) (28.6) (33.0) 120% Cash Flows from 350 -34.4 -83.3 -1