Nippon Yusen Kabushiki Kaisha · TSE:9101
Nippon Yusen Kabushiki Kaisha — Nippon Yusen Kabushik New — Q2 2024 Earnings Presentation
36 slides from Nippon Yusen Kabushiki Kaisha's earnings presentation, Nov 6, 2024
Slide 1: Financial Results for Q2 FY2024, and Forecast for Full-year FY2024
Financial Results for Q2 FY2024, and Forecast for Full-year FY2024 November 6, 2024 ©NYK Group. All rights reserved.
Slide 2: Contents
1. Overview of Financial Results Contents p.3-8 for 2nd Quarter FY2024 2. Forecast for Full-year FY2024 p.9-14 Progress of p.15-21 Medium-term Management Plan Appendix p.22-27 Segment Overview Fleet in Operation (Attachment) Ocean Network Express Financial Results for FY2024 2nd Quarter ©NYK Group.
Slide 3: Overview of the Q2 Results for FY2024
1. Overview of the Q2 Results for FY2024 Results H1 review (year-on-year comparison) Revenues: JPY1,316.8 billion (up JPY148.4 billion) • Dry Bulk – Revenue increased in line with a year-on-year increase in market levels for the Capesize and all the other vessel segments. (up JYP52.5 billion) • Logi
Slide 4: Recurring profit by segment (year-on-year comparison)
1. Overview of the Q2 Results for FY2024 Results Recurring profit by segment (year-on-year comparison) Liner Trade: JPY176.6 billion (up JPY129.9 billion) • The profit level of Container Shipping significantly increased year on year due to freight rates being higher than in the same period last year
Slide 5: Recurring profit by segment (year-on-year comparison)
1. Overview of the Q2 Results for FY2024 Results Recurring profit by segment (year-on-year comparison) Automotive: JPY61.6 billion (up JPY1.0 billion) • Although impacted by the port congestion, the conflict in the Middle East, and a rise in cargo handling costs, the Automotive Business maintained t
Slide 6: Summary of Q2 Results
Summary of Q2 Results Q2 Results FY2023 FY2024 Year-on- year (Billions of yen) Q1 Q2 1H Q3 Q4 2H Full-Year Q1 Q2 1H Revenues 567.5 600.8 1,168.3 620.8 598.0 1,218.9 2,387.2 651.7 665.1 1,316.8 148.4 Operating 47.1 51.6 98.7 45.4 30.4 75.8 174.6 65.8 49.7 115.6 16.8 Profit Recurring 89.4 69.8 159.2 4
Slide 7: Q2 Comparison by Segment
Q2 Comparison by Segment Q2 Results Operating FY2023 FY2024 Year- Segment on-year (Billions of yen) Q1 Q2 1H Q3 Q4 2H Full-Year Q1 Q2 1H 56.4 55.2 111.7 41.3 39.3 80.6 192.3 44.5 47.6 92.2 -19.5 Liner & Logistics Liner Trade 31.6 15.0 46.7 -1.3 22.5 21.1 67.8 53.7 122.9 176.6 129.9 Air Cargo 37.0 40
Slide 8: Analysis of Change in Recurring Profit between FY2023 and FY2024
Analysis of Change in Recurring Profit between FY2023 and FY2024 Q2 Results Analysis by factor Analysis by business P/L Increase Results P/L Decrease （billion yen） Yen \153.89/$ Depreciation 19.7 Depreciated by ¥13.96 Higher $631.85/MT Bunker Oil -0.6 Increased by $27.47/MT Prices Liner (incl. ONE)
Slide 9: Full-year Forecast for FY2024
2. Full-year Forecast for FY2024 Forecast Full-year forecast (Comparison with the forecast announced at the previous financial reporting) Revenues: JPY2,540.0 billion (down JPY30.0 billion) • Automotive: Down JPY23.0 billion Recurring profit: JPY410.0 billion yen (unchanged) • Liner Trade: Up JPY22.
Slide 10: Full-year Forecast: Recurring profit by segment
2. Full-year Forecast for FY2024 Forecast Recurring profit by segment (Comparison with the forecast announced at the previous financial reporting) Liner Trade: JPY205.0 billion (up JPY22.0 billion) • In Container Shipping, although we expect that the tight supply-demand balance will ease after peaki
Slide 11: Full-year Forecast: Recurring profit by segment
2. Full-year Forecast for FY2024 Forecast Recurring profit by segment (Comparison with the forecast announced at the previous financial reporting) Automotive: JPY110.0 billion (down JPY10.0 billion) • Although the profit level is expected to be lower than our previous forecast due to a slight declin
Slide 12: Summary of Forecast for FY2024
Summary of Forecast for FY2024 Forecast FY2023(Result) FY2024(Forecast) Change Year-on- from 1H 2H 1H(Result) Year Prev. Full-year 2H Full-Year Forecast (Billions of yen) Q1 Q2 Q3 Q4 Q1 Q2 1,168.3 1,218.9 1,316.8 Revenues 2,387.2 1,223.2 2,540.0 152.8 -30.0 567.5 600.8 620.8 598.0 651.7 665.1 98.7 7
Slide 13: Forecast by Segment for FY2024
Forecast by Segment for FY2024 Forecast Operating FY2023 (Result) FY2024 (Forecast) Segment Year-on- Q1 Q2 1H year (Billions of yen) Q1 Q2 1H 2H Full-year 2H Full-year (Result) (Result) (Result) 56.4 55.2 111.7 80.6 192.3 44.5 47.6 92.2 84.8 177.0 -15.3 Liner & Logistics Liner Trade 31.6 15.0 46.7 2
Slide 14: Forecast by Segment for FY2024 (vs previous forecast)
Forecast by Segment for FY2024 Forecast Operating 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) 91.0 88.0 179.0 92.2 84.8 177.0 1.2 -3.2 -2.0 Liner & Logistics Liner Trade 142.0 41.0 183.0 176.6 28.4 2
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: Key Financial Indicators
Key Financial Indicators FY2024 FY2023 Sep. 2024 FY2024 FY2026 (Previous (Result) (Result) (Forecast) (Forecast) *2 Forecast)*1 Recurring Profit 261.3 289.2 250.0 410.0 270.0 (billion yen) Interest-bearing Debt 913.8 728.8 866.5 743.0 (billion yen) - Shareholders' Equity 2,650.3 2,780.4 2,644.0 2,75
Slide 17: Business Investment Policy
Business Investment Policy We have earmarked a total of JPY1.3 trillion of investments up to FY2026 for investment targets leading to stable shareholder return in the future. As of September 30, 2024, approx. JPY850 billion worth of investment projects were authorized for launch during the period of
Slide 18: Cash Allocation
Cash Allocation The strategic cash allocation plan has been developed to concurrently achieve improvement in capital efficiency and sustainable growth. In addition to the JPY100 billion share repurchase program currently underway, we have decided to repurchase shares worth up to JPY30.0 billion. The
Slide 19: Shareholder Return Policy
Shareholder Return Policy Implement shareholder return mindful of improving capital efficiency over the period of the Medium-term Management Plan (MTMP) Strive to expand TSR (Total Shareholder Return) while balancing with growth investments FY2024 forecast FY2024 Policies announced in MTMP Beginning
Slide 20: Action to implement management with an awareness of capital cost and stock price
Action to implement management with an awareness of capital cost and stock price Policy • Promote the measures set forth in the Medium-term Management Plan Equity spread • Aim to sustainably increase ROE exceeding the shareholders’ equity cost (ROE – Cost of equity) by increasing capital efficiency,
Slide 21: Sustainable growth of current profit targeted in medium to long term
Sustainable growth of current profit targeted in medium to long term Steady progress in line with the sustainable growth targets announced in the Medium-term Management Plan current profit (billion yen) 500 1,000 400 300 200 100 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2026
Slide 22: Appendix
Appendix ©NYK Group. All rights reserved. 22
Slide 23: Segment Overview: Liner & Logistics - Air Cargo Transportation
Segment-Overview: Liner & Logistics Segment 1．Air Cargo Transportation（NCA） FY2023(Result) FY2024(Forecast) Change from Prev. 1H 2H Full- 1H(Result) 2H Full-year Forecast Q1 Q2 Q3 Q4 year Q1 Q2 (Full-year) Revenue 77.8 83.3 92.6 161.1 91.4 184.0 -2.5 (Billions of yen) 37 40.8 44.8 38.4 46.6 46.0 Rec
Slide 24: Segment Overview: Liner & Logistics - Logistics
Segment-Overview: Liner & Logistics Segment 2．Logistics FY2022 FY20223(Result) FY2024(Forecast) Change (Result) 1H 2H 1H(Result) from Prev. Forecast Full-year 2H Full-year Full-year Q1 Q2 Q3 Q4 Q1 Q2 (Full-year) TEU 308 301 316 651 609 320 636 -6 Ocean (1,000TEUs) 151 157 155 146 154 162 Export Year
Slide 25: Dry Bulker and Tanker - Market trend and forecast
Segment-Overview Segment 3．Dry Bulker and Tanker - Market trend and forecast Prev. FY2023 (Result) FY2024(Forecast) Forecast Q1 Q2 Q1 Q2 1H Q3 Q4 2H Full-Year 2H Full-Year Full-year (Result) (Result) BDI 1,326 1,194 1,260 2,079 1,833 1,956 1,608 1,849 1,869 1,673 1,766 1,817 Dry Bulk Carriers Cape 1
Slide 26: Segment Overview: Automotive Business
Segment-Overview Segment 4．Automotive Business FY2023 (Result) FY2024(Forecast) Change from Prev. 1H 2H 1H(Result) Forecast Full-year 2H Full-Year (Full-year) Q1 Q2 Q3 Q4 Q1 Q2 227 224 219 All Trade 451 221 441 -6 (10,000 Cars) 112 115 121 103 112 108 4% -3% -3% Year-on-year 0% -1% -2% -1% 5% 3% -3%
Slide 27: Fleet in Operation
Fleet in Operation Sep, 2023 Mar, 2024 Sep, 2024 (Result) (Results) (Results) Operating Owned Type of Vessel Total Total Chartered Total Segment (incl. co-owned) Vessels Vessels Vessels Kt (DWT) Vessels Kt (DWT) Vessels Kt (DWT) Liner & Liner Trade Container Ships 53 50 26 1,665 24 2,752 50 4,418 Lo
Slide 28: Ocean Network Express: Financial Results for FY2024 2nd Quarter
Financial Results for FY2024 2nd Quarter October 31, 2024
Slide 29: Index
Index 1. FY2024 2nd Quarter Results P.3 2. Liftings, Utilization, P.4 and Freight Index in Major Trades 3. FY2024 Full Year Forecast P.5 4. ONE’s Response to Recent Changes in the P.6 Business Environment 5. Reference (Fleet Structure, Service Structure & P.7 New Order) Appendix: Change of Demand an
Slide 30: ONE: FY2024 2nd Quarter Results
1. FY2024 2nd Quarter Results Outline Robust cargo movement continued based on strong consumer demand. In 2Q, ONE’s net profit was US$ 1,999 million, up 969% from the same quarter of the last year. • The Asia-North America and Asia-Europe trades have experienced strong demand, driven by consistent c
Slide 31: Liftings, Utilization and Freight Index in Major Trades
2. Liftings, Utilization and Freight Index in Major Trades (Unit: 1,000TEU) FY2023 FY2024 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 578 706 1,284 653 616 1,269 2,5
Slide 32: ONE: FY2024 Full Year Forecast
3. FY2024 Full Year Forecast Outline While the geopolitical uncertainty remains, continuous delivery of the new container vessels impact supply-demand situations. Although forecasting the full year of 2024 is still challenging, full-year results for FY2024 are expected to show a profit of US$3,095mi
Slide 33: 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 in July and August increased by 18% year-on-year. Robust domestic consumption continued in the United States, and strong cargo movement continued due to customers advancing shipments in antici
Slide 34: Reference (Fleet Structure, Service Structure & New Order)
5. Reference（Fleet Structure, Service Structure & New Order) Fleet Structure Service Structure 1) As of end of 2) As of end of （FY2024 2Q Structure of dominant and Size 2)-1) Jun 2024 Sep 2024 non-dominant space allocation） 20,000TEU >= Capacity (TEU) 264,600 264,600 0 Vessels 12 12 0 10,500TEU - 20
Slide 35: Appendix: Change of Demand and Freight Index
6. Appendix Change of Demand and Freight index Liftings Freight Index (TEU) (FY2018 1Q=100) © 2024 Ocean Network Express Pte. Ltd. All Rights Reserved. 8
Slide 36: 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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