Kawasaki Kisen Kaisha, Ltd. · TSE:9107
Kawasaki Kisen Kaisha — Q3 FY2004 Earnings Presentation
24 slides from Kawasaki Kisen Kaisha's earnings presentation, Feb 14, 2005
Slide 1: Financial Highlights: Brief Report for 3rd Quarter FY2004
Financial Highlights Brief Report for 3rd Quarter FY2004 14 February 2005 Kawasaki Kisen Kaisha, Ltd. 1
Slide 2: A. Financial Highlights for 3Q 2004F
A. Financial Highlights for 3Q 2004F (unit:billion yen) 04F 1H 04F 3Q 04F 03F Comparison 04F 3Q Comparison (Result) (Result) (1Q-3Q) (1Q-3Q) (Ratio) (Prospect) (Ratio) (a) (b) (a)+(b) as of 12.Nov’04 Operating Consoli 413.6 208.4 622.0 537.8 +84.2(16%) 615.6 +6.4 (1.0%) Revenues Non 332.0 163.8 495.
Slide 3: B. Business Environment for 3Q 2004F
B. Business Environment for 3Q 2004F (April – December) (Global Economy) z U.S.: Increased capital investment and consumer spending, Upward trend of the economy z E.U.: Continued steady economic growth due to economic vitalization within the enlarged EU z Other Asia: Increased exports, Expanding dom
Slide 4: C-1. Division-wise Results 3Q 2004F (Container Business)
C-1. Trend of Division-wise Results 3Q 2004F (for Container Business) Container: Sharp increase in profit compared with 3Q 2003F (Loaded cargo volume: 1.71 (3Q’03F) >>>1.86 mil. TEU(3Q’04F)(+9%) z Positive cargo volume in Asia-North America/Europe trades mainly from China z Large increase in number
Slide 5: C-2. Division-wise Results 3Q 2004F (Bulker & Car Carrier)
C-2. Trend of Division-wise Results 3Q 2004F (for Bulker & Car Carrier Service) Bulker & Car Carrier : Sharp increase in profit compared with 3Q 2003F z Bulker : High market freight rate at every type of bilker after temporal slump in 1Q ’04H (Operating Tonnage : 101.19 (3Q’03F) >>> 106.18 mil.tons
Slide 6: C-3. Division-wise Results 3Q 2004F (Energy Transportation)
C-3. Trend of Division-wise Results 3Q 2004F (for Energy Transportation) Energy Transportation : Sharp increase in profit compared with 3Q 2003F z LNG Carrier : Stable progress in each project (Operating Tonnage : 4.15 (3Q’03F) >>> 3.97 mil.tons (3Q’04F) (-4%)) z Thermal Coal Carrier : Newly built v
Slide 7: C-4. Division-wise Results 3Q 2004F (Consolidated Subsidiaries)
C-4. Trend of Division-wise Results 3Q 2004F (for Consolidated Subsidiaries) • Short Sea/Coastal Shipping: Unchanged operating revenues and income • Air Forwarding: Increased operating revenues and income • Freight Forwarding/Harbor Transportation: Increased operating revenues and income with increa
Slide 8: D. Upward/Downward Profit Factors for 3Q 2004F
D. Outline of Upward/Downward Profit Factors for 3Q 2004F Ordinary Income* :3Q 2004F prospect**83.9, 3Q 2003F result 44.0 >>> 3Q 2004F result 85.8 billion yen comparison with expected 3Q 2004F**/3Q 2003F (unit: billion yen) z Fluctuation in exchange rate - -5.7 z Increase of Bunker Price - -3.1 z Ma
Slide 9: E. Prospects for FY2004
E. Prospects for FY2004 (unit:billion yen) 04F 04F 1H 04F 2H Revised FY2003 Comparison 04F 1H Comparison Results Prospects Prospects Results (Ratio) Results (Ratio) (a) Operating Consoli 413.6 409.4 823.0 724.7 +98.3(14%) 820.0 +3.0(0.4%) Revenues Non 332.0 322.0 654.0 585.0 +69.0(12%) 650.0 +4.0(0.
Slide 10: F. Division-wise prospects for FY2004
F. Trend of division-wise prospects for FY2004 < Container Business > z In the Asia-North America trade, enlarged capacity in PNW and additional loop in AW service make up for the influence of confusion in PSW service. z In the Asia-Europe route, despite winter slack season, favorable trend is maint
Slide 11: G. Upward/Downward Profit Factors for 2004F
G. Outline of Upward/Downward Profit Factors for 2004F Ordinary Income*: 2004F previous prospect** 105.0, 2003F result 62.6 >>> 2004F revised prospect 108.0 billion yen comparison with 2004F prospect/2003F result (unit: billion yen) z Fluctuation in exchange rate - -7.0 z Bunker Oil Price - -4.8 z M
Slide 12: H. Cash Flows, Investment, and Main Financial Indices
H. Cash Flows/The amount of investment, and main financial indices (unit:billion yen) FY2004 FY2004 [ Fleet delivered in 2004 ] FY2003 1H Prospects Results * Results On-Balance : C a s h F l o w s f r o m 78.6 45.4 84.0 Isuzugawa (Tanker) Operating Activities (25.6) (12.2) (24.5) ( D e p r e c i a t
Slide 13: I. Updated Status of K Line Vision2008 Fundamental Assignments
I. Updated Status of “K”Line Vision2008 Fundamental Assignments Positive efforts for addressing strategic domain/areas (Container/Logistic Business) • Establishment of agency and branch network in BRICS countries • “K” Line Air Service, Ltd. : Started a logistics company in the City of Shanghai, and
Slide 14: J. Cost Curtailing Campaign
J. Cost Curtailing Campaign Target for FY2004 : 5 Billion Yen (unit:billion yen) Cost saving items 1H'04 2H'04 Total Vessel cost reduction 0.5 0.4 0.9 Various cargo charges reduction 1.3 0.8 2.1 Service rationalization 0.3 0.8 1.1 Subsidiary company's various cost reduction 0.4 0.8 1.2 Administrativ
Slide 15: K. Vision 2008 Achievement Goals (Numerical Targets)
K. Vision 2008 Achievement Goals (Numerical Targets) Profit Transition Major management indices Operating Revenues Net/Ordinary Income （Unit：Billion Yen） (Unit : Billion Yen) （Unit：Billion Yen） 900 110 400 50% 800 Vision2008 100 350 45% 90 40% 700 KV-Plan 300 80 35% 600 New K-21 70 250 30% 500 60 20
Slide 16: Business Prospects for 2005F
Business Prospects for 2005F 16
Slide 17: Business Environment for 2005F
Business Environment for 2005F (Global Economy) • The U.S. & E.U. : Slowdown in the 1 st Half, recovery from mid-year • China : Continue measures to restrict economic growth, 8% growth rate • Other Asian countries: Slowdown to 5-6% economic growth rate (Our Business) ・Despite downward pressure such
Slide 18: 1. Containership Business
<Business Strategy: Containership> 1. Containership Business 【Trend in Cargo Movement】 [Prospect of container movement increase] Asia-N. America: January ’05 import restrictions on Shipping Route 2003 2004 2005 2006 apparel under the WTO lifted >>> Export from China/India to be increased Asia-N.Amer
Slide 19: 2. Coal & Iron Ore Carrier
<Business Strategy-Bulk Carrier> 2. Coal & Iron Ore Carrier [Business Environment] Seaborne Iron Ore Volume & Required Vessel Capacity • World crude steel production recorded 1.03 billion tons in Million tons Million DWT 650 100 ‘04. Within a few years it will hit 1.1 billion tons. (The production i
Slide 20: 3. General Bulk Carrier
<Business Strategy-Bulk Carrier> 3. General Bulk Carrier 260 Seaborne Grain volume & Required Vessel Capacity Million tons Million DWT 35 240 30 [Business environment] 220 200 z Positive cargo volume of major cargoes which 25 180 much affect bulk market, such as 160 20 soybeans/feed to Asia mainly C
Slide 21: 4. Car Carrier Business
<Business Strategy-Car Carrier> 4. Car Carrier Business [Strategy] [Global shipping capacity and cargo movement] Expand business scale along with diversification of （No of Vessel） （thousand cars） production sites and increase in marine transport of Vessel operated Cargo movement 600 12,000 complete
Slide 22: 5. LNG Carrier
<Business Strategy-Energy Transportation> 5. LNG Carrier Seaborne LNG volume/LNG Fleet Prospects (Number of Vessels) Million tons 300 [Business environment] 280 240 220 260 z Increasing global demands for LNG 240 200 centering on U.S. 220 180 200 160 z Increase in U.S. domestic gas production 180 14
Slide 23: 6. Thermal Coal Carrier
<Business Strategy-Energy Transportation> 6. Thermal Coal Carrier Thermal Coal Transportation 80 (Million Tons) 20% 70 18% 16% 60 [Business environment] 50 14% 12% z Coal-fired power plants expected to 40 10% remain as main electric power source. 30 8% The market size would reach the 20 6% 4% platea
Slide 24: 7. Tanker
<Business Strategy-Energy Transportation> 7. Tanker (Million weight tons) [Business environment] 250 International supply and demand of oil tankers 60 • Prospect of Demand for Crude Oil in the world 240 55 ’04 82.4 million barrel / day (YoY +3.3%) 230 50 220 ’05 83.9 million barrel / day (YoY +1.7%)
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