Kawasaki Kisen Kaisha, Ltd. · TSE:9107
Kawasaki Kisen Kaisha — Q3 FY2003 Earnings Presentation
30 slides from Kawasaki Kisen Kaisha's earnings presentation, Feb 16, 2004
Slide 1: Financial Highlights: Brief Report for 3rd Quarter FY2003
Financial Highlights Brief Report for 3rd Quarter FY2003 16 February 2004 Kawasaki Kisen Kaisha,Ltd. 1
Slide 2: Financial Highlights for 3Q 2003F
1-1. Financial Highlights for 3Q 2003F (Consolidated/Non-consolidated basis) (unit: billion yen) 03F 1H 03F 3Q Accumulated 02F Comparison (Result) (Result) (A)+(B) (1Q-3Q) (ratio) (A) (B) Operating Consoli 362.1 175.7 537.8 473.2 +13.7% Revenues Non 295.0 141.4 436.4 373.4 +16.9% Operating Consoli 3
Slide 3: Business Environment for 3Q 2003F
1-2. Business Environment for 3Q 2003F (Global Economy) -U.S.: Earlier end of the Iraq War, Stock price recovery, Positive tendency in the economy -E.U.: Rather weak economic tendency, but cargo movement positive -Japan : Slight picking up from the bottom -Other Asia: Limited effect from SARS, Rapid
Slide 4: Division-wise Results 3Q 2003F (Container Business)
1-3. Trend of Division-wise Results 3Q 2003F (for Container Business) Container: In line with prospect* (Loaded cargo volume: 1.55(3Q’02F)>>>1.71mil. TEU(3Q’03F)(+11%)) -Favorable cargo volume in Asia-North America/Europe trades mainly from China -Positive container movements in every trade of Asia-
Slide 5: K Line Container Loading Volume Comparison
1-4. “K”Line Container Loading Volume Comparison (Unit;1000TEU) E/W Bound 2002F 1H 02F 3Q 02F(1Q-3Q) 02F Yearly 03F 1H 03F 3Q 03F(1Q-3Q) (ratio) Asia/N.America E/Bound 238 110 348 462 261 120 381 9.5% W/Bound 104 58 162 220 109 57 166 2.4% 342 168 510 682 370 177 547 7.2% Asia/Europe* E/Bound 147 75
Slide 6: Trend of Average Container Freight (Asia-North America Trade)
1-5. Trend of Average Container Freight (Asia-North America Trade) (Data: CONTAINERIZATION INTERNATIONAL) US$/TEU E.bound W.Bound 2400 2200 2000 1800 1600 1400 1200 1000 800 600 93-4th 94-4th 95-4th 96-4th 97-4th 98-4th 99-4th 00-4th 01-4th 02-4th 94-2nd 95-2nd 96-2nd 97-2nd 98-2nd 99-2nd 00-2nd 01-
Slide 7: Trend of Average Container Freight (Asia-Europe Trade)
1-6. Trend of Average Container freight (Asia-Europe Trade) (Data: Containerization International) W.bound US$/TEU E.Bound 1700 1500 1300 1100 900 700 500 03-1st 93-4th 94-4th 95-4th 96-4th 97-4th 98-4th 99-4th 00-4th 01-4th 02-4th 94-2nd 95-2nd 96-2nd 97-2nd 98-2nd 99-2nd 00-2nd 01-2nd 02-2nd 03-2n
Slide 8: Division-wise Results 3Q 2003F (Bulker & Car Carrier Service)
1-7. Trend of Division-wise Results 3Q 2003F (for Bulker & Car Carrier Service) Bulker & Car Carrier： 3Q result exceeded prospect* Bulker ：Market freight level is high Remarkable increase in tonnage of every type of bulker, from ‘Cape-size’, ‘Panamax’ to ‘small handy’ Efficient ship deployment (Oper
Slide 9: Crude Steel Output & Iron Ore Import
1-8. Crude Steel Output & Iron Ore Import (mil ion ton) Crude Steel production (mil ion ton) Iron Ore import 250 250 200 200 150 150 100 100 50 50 0 0 99F 00F 01F 02F 03F 99F 00F 01F 02F 03F Japan China EU Japn China EU 9
Slide 10: Bulker Market
1-9. Bulker Market PANAMAX US GULF/ JAPAN GRAIN ($/KT) 60 56 03F 52 48 44 40 36 32 02F 28 24 20 16 12 01F 8 4 0 APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR 10
Slide 11: Transition of Cars/Trucks Transported by PCTC
1-10. Transition of Cars/Trucks Transported by PCTC 180 162 156 156 19 160 147 151 20 19 140 28 17 23 46 万台(ten thousand units) 120 35 37 18 17 33 100 33 26 29 32 25 27 80 60 34 33 24 24 23 22 40 48 52 51 53 52 20 43 0 9 8 FY 9 9 FY 0 0 FY 0 1 FY 0 2 FY 0 3 FY 日本・極東/北米（Japan・FE/North America） 日本・極東/
Slide 12: Division-wise Results 3Q 2003F (Energy Transportation)
1-11. Trend of Division-wise Results 3Q 2003F (for Energy Transportation) Energy Transportation：much improvement -LNG Carrier: The already contracted projects went on so well. (Operating Tonnage : 4.15(3Q’02F) >>> 4.15 mil.tons(3Q’03F) (flat)) -Thermal Coal Carrier: Increase of cargo volume with new
Slide 13: K Line's Loaded Result of Thermal Coal for Domestic Power Plants
1-12. Transition of “K”Line’s Loaded Result of Thermal Coal for Domestic Power Plants (unit:ten thousands tons) 1800 1600 1400 1200 1066 1000 894 794 800 623 600 455 459 400 285 200 0 1996 1997 1998 1999 2000 2001 2002 2003 K" Line Lifting Increase ratio of overall cargo movement in Japan(1996 resul
Slide 14: Tanker Market
1-13. Tanker Market Tanker Market(VLCC Arabian Gulf / Japan) (WS) 180 03F 160 140 120 02Ｆ 100 80 60 01F 40 20 0 APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR 14
Slide 15: Division-wise Results 3Q 2003F (Consolidated Subsidiaries)
1-14. Trend of Division-wise Results 3Q 2003F (for Consolidated Subsidiaries) • Short Sea/Coastal Shipping: Efficient ship deployment Increase of cargo volume • Services Incidental to Transportation: Stable with increased container volume 15
Slide 16: Prospect for 2003F
2-1. Prospect for 2003F (Consolidated/Non-consolidated basis) (unit: billion yen) 03F 3Q 03F 4Q FY2003 FY2003 FY2003 FY2002 Compari Results Prospects Revised Revised Previous Results -son prospects prospects (a) (a) prospects**(b) (c) (a)-(c) Operating Consoli 537.8 169.2 707.0 707.0 700.0 632.7 +74
Slide 17: Trend of Division-wise Prospects for Fiscal 2003
2-2. Trend of Division-wise Prospects for Fiscal 2003 -Unfavorable Factors for all divisions： hike in bunker-oil price, More rise in value of Yen against U.S. Dollar -Containership: Efficient vessel operation along with demand, Further cost reduction by service reorganization,etc, Cargo volume and r
Slide 18: Breakdown on Cash Flows, Investment
2-3. Breakdown on Cash Flows, Investment Result in Result in Prospect 2001 2002 2003(Yearly) Investment 31.4 26.8 59.4 Vessel 23.8 7.0 40.3 Others 7.6 19.8 19.1 (Non-consolidated) 12.0 4.5 14.0 Operating Cash Flow 33.1 32.9 67.0 (Depreciation) （33.3） （29.5） （24.5） Investment Cash Flow -18.5 -23.7 -4
Slide 19: Summary of KV-PLAN
Summary of KV-PLAN 1. Numerical Targets 2. Fundamental Assignments 19
Slide 20: Updated Status of KV-Plan
1-1. Updated Status of KV-Plan (unit: billion yen) Result Prospect KV-Plan KV-Plan for 2002F for 2003F for 2004F achievment ratio Exchange Rate /US$ ¥122 ¥114 ¥130 +¥16 Bunker Price /MT $162 $170 $130 +$40 Non- Revenues 499.8 570.0 500.0 114% Consolidated Operating Income 19.8 50.0 27.0 185% Ordinar
Slide 21: Transition of Consolidated Income
1-2. Transition of Consolidated Income (Billion Yen) 70 65.0 60 56.0 50 40.0 40 36.0 35.0 29.3 29.0 30 26.8 23.7 19.0 20.0 20 10.4 10.4 10 4.2 1.9 0 00F 01F 02F 03F 04F KV-Plan Final Operating Income Ordinary Income* Net Income Target * Ordinary income is income before income taxes and extra-ordinar
Slide 22: Transition of KV-Plan Numerical Targets on Consolidated basis
1-3. Transition of “KV-Plan” Numerical Targets on Consolidated basis (Unit:Billion Yen) 2 0 0 1 F 2 0 0 2 F 22 00 00 33 FF K V - P l a n KV-Plan R e s u l t s R e s u l t s PP rr oo ss pp ee cc tt ss Final targets Achievement ratio O p e r ati n g R evenue 571.0 632.7 707.0 707.0 650.0 +57.0 Ordinar
Slide 23: Transition of Interest Bearing Liability
1-4. Transition of Interest Bearing Liability (Consolidated basis) 45.6 Billion 45.6 Billion Yen Yen is is expected expected toto (Billion yen) decrease decrease during during in in first first two two years years 450 ““KV Plan”” KV--Plan 400 90.0% 84.2% 82.8% 81.1% 81.5% 80.0% 350 77.4% 70.4% 300 4
Slide 24: Prospects on CS-300 Cost Curtailment Plan
1-5. Prospects on ‘CS-300’ Cost Curtailment Plan (Total cost reduction target in 3 years of “KV-Plan”:30 Billion Yen) (unit:Billion Yen) Cost saving items FY2002 FY2003 Total Vessel cost reduction 6.5 2.4 8.9 Service rationalization(fixed cost reduction per box) 5.8 1.0 6.8 Various cargo charges red
Slide 25: Achievement evaluation of KV-Plan Fundamental Assignments
2. Achievement evaluation of KV-Plan Fundamental Assignments ＜Fundamental Assignments＞ 1. Further strengthening of Company’s overall financial aspects through cost reductions and profitable use of IT, etc. 2. Enhancement of those aspects of globalization that are firmly based on regional communities
Slide 26: Fundamental Assignment No.1: Strengthening Overall Financial Aspects
2-1. <Fundamental assignment No.1 of KV-Plan> Further strengthening of Company’s overall financial aspects through cost reductions and profitable use of IT, etc. • Cost reduction and strengthening of Company’s overall financial aspects are as aforesaid • To promote BPR(Business Process Reengineering
Slide 27: Fundamental Assignment No.2: Globalization
2-2. <Fundamental assignment No.2 of KV-Plan> Enhancement of those aspects of globalization that are firmly based on regional communities and are consistent with the pursuit of business synergy among different business sectors. • Establishment of “K” Line(Japan)Ltd.as”K”Line’s general agent in Japan
Slide 28: Fundamental Assignment No.3: Logistics Business
2-3. <Fundamental assignment No.3 of KV-Plan> Redoubling efforts for implementing logistics business ・ Capital rebinding of domestic logistic companies to KBHS ・ Establishment of “K” Line Total Logistics, LLP(KLTL), in U.S.A.(Jun,2002) to strengthen SCM mainly in N.America. ・ New service logo for “K
Slide 29: Fundamental Assignment No.4: Technical Innovation, Safety, Environment
2-4. <Fundamental assignment No.4 of KV-Plan> Pursuit of technical innovations in marine transport, perfection of safety in navigation/ cargo operations and contributing to environmental preservation. ・Participation in joint development project of Compressed Natural Gas marine transport in associati
Slide 30: Fundamental Assignment No.5: Corporate Governance
2-5. <Fundamental assignment No.5 of KV-Plan> Strengthening of corporate governance aiming at more transparency and greater effectiveness in management. • Establishment of Compliance Committee (Apr,2003) • Introduction of stock option • Execute repurchase own shares • Management participation is pro
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