Nippon Yusen Kabushiki Kaisha · TSE:9101
Nippon Yusen Kabushiki Kaisha — Nippon Yusen Kabushik New — Q3 2023 Earnings Presentation
30 slides from Nippon Yusen Kabushiki Kaisha's earnings presentation, Feb 5, 2024
Slide 1: Financial Results for Q3 FY2023, and Forecast for Full-year FY2023
Financial Results for Q3 FY2023, and Forecast for Full-year FY2023 February 5, 2024 ©NYK Group. All rights reserved.
Slide 2: Contents
Contents 1. Overview of Financial Results p.3-8 for 3rd Quarter FY2023 2. Forecast for Full-year FY2023 p.9-15 Appendix p.16-20 Segment Overview (Attachment) Ocean Network Express Financial Results for FY2023 3rd Quarter ©NYK Group. All rights reserved. 2
Slide 3: Overview of Financial Results for Q3 FY2023 Results
1. Overview of Financial Results for Q3 FY2023 Results Q3 review (year-on-year comparison) Revenues: JPY1,789.2 billion (down JPY260.9 billion) ・Logistics – Handling volumes declined in both the air and ocean freight forwarding businesses, and freight rates also fell (down JPY169.5 billion) ・Air Car
Slide 4: Q3 Results by Segment: Liner Trade and Air Cargo
1. Overview of Financial Results for Q3 FY2023 Results By segment (Recurring profit / year-on-year comparison) Liner Trade: JPY45.3 billion (down JPY682.8 billion) Container shipping (Ocean Network Express) ・Markets fell on weak cargo demand by the impact of higher interest rates and inflation mainl
Slide 5: Q3 Results by Segment: Logistics and Bulk Shipping
1. Overview of Financial Results for Q3 FY2023 Results By segment (Recurring profit / year-on-year comparison) Logistics: JPY21.0 billion (down JPY29.1 billion) ・Air freight & Ocean freight Markets fell on weak cargo volumes, and both handling volumes and profit greatly declined compared to the same
Slide 6: Summary of Q3 Results
Summary of Q3 Results Q3 Results FY2022 FY2023 Year-on- year (Billions of yen) Q1 Q2 Q3 Q1-3 Q4 Full-Year Q1 Q2 Q3 Q1-3 Revenues 673.0 692.8 684.3 2,050.1 565.8 2,616.0 567.5 600.8 620.8 1,789.2 -260.9 Operating 89.1 74.1 86.0 249.4 46.9 296.3 47.1 51.6 45.4 144.2 -105.1 Profit Recurring 377.7 387.6
Slide 7: Q3 Comparison by Segment
Q3 Comparison by Segment Q3 Results Operating FY2022 FY2023 Year- Segment on-year (Billions of yen) Q1 Q2 Q3 Q1-3 Q4 Full-Year Q1 Q2 Q3 Q1-3 51.8 49.4 52.2 153.5 47.1 200.7 56.4 55.2 41.3 153.0 -0.5 Liner Trade 270.2 296.3 161.5 728.2 62.3 790.6 31.6 15.0 -1.3 45.3 -682.8 Liner & Logistics Air Cargo
Slide 8: Analysis of Change in Recurring Profit between FY2022 and FY2023
Analysis of Change in Recurring Profit between FY2022 and FY2023 Q3 Results Analysis by factor Analysis by business P/L Increase Results P/L Decrease （billion yen） Yen \142.86/$ Depreciation 6.7 Depreciated by ¥7.16 Lower $617.70/MT Bunker Oil 8.8 Decreased by $183.77/MT Prices Market Liner (incl. O
Slide 9: Forecast for Full-year FY2023
2. Forecast for Full-year FY2023 Forecast Full-year forecast (Comparison with the forecast announced at the Q2 results) Revenues: JPY2,340.0 billion (up JPY60.0 billion) ・Bulk Shipping: Up JPY38.0 billion ・Air Cargo Transportation: Up JPY31.0 billion Recurring profit: JPY245.0 billion (up JPY10.0 bi
Slide 10: Full-year Forecast by Segment: Liner Trade and Air Cargo
2. Forecast for Full-year FY2023 Forecast By segment (Recurring profit/loss compared with the forecast announced at the Q2 results) Liner Trade: JPY60.0 billion (up JPY3.0 billion) Container shipping (Ocean Network Express) ・Cargo traffic is gradually recovering, but it will likely take some time fo
Slide 11: Full-year Forecast by Segment: Logistics and Bulk Shipping
2. Forecast for Full-year FY2023 Forecast By segment (Recurring profit/loss compared with the forecast announced at the Q2 results) Logistics: JPY24.0 billion (up JPY0.5 billion) ・Air freight & Ocean freight Handling volumes are expected to decline compared to the previous forecast due to weak deman
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) 2H Year Prev. Full-year Q3 Full-Year Forecast (Billions of yen) Q1 Q2 Q3 Q4 Q1 Q2 Q4 (Result) 1,365.8 1,250.1 1,168.3 1,171.7 Revenues 2,616.0 2,340.0 -276.0 60.0 673.0 692.8 684.3 565.8 567
Slide 13: Forecast by Segment for FY2023
Forecast by Segment for FY2023 Forecast Operating FY2022 (Result) FY2023 (Forecast) Segment Year-on- Q1 Q2 1H Q3 year (Billions of yen) Q1 Q2 1H Q3 Q4 2H Full-year Q4 2H Full-year (Result) (Result) (Result) (Result) 51.8 49.4 101.2 52.2 47.1 99.4 200.7 56.4 55.2 111.7 41.3 38.9 80.3 192.0 -8.7 Liner
Slide 14: Forecast by Segment: Change from Previous Forecast
Forecast by Segment for FY2023 Forecast Operating Change from Previous Forecast Revised Forecast Prev. Forecast Segment 1H 1H Q3 (Billions of yen) 2H Full-year Q4 2H Full-year Full-year (Result) (Result) (Result) 111.7 79.3 191.0 111.7 41.3 38.9 80.3 192.0 1.0 Liner Trade 46.7 10.3 57.0 46.7 -1.3 14
Slide 15: Action to implement management with awareness of capital cost and stock price
Action to implement management with an awareness of capital cost and stock price assessment • Although market capitalization has steadily increased compared to before COVID-19, valuation by the Current stock market does not match the rapid increase in owned capital over the past two years • Insuffic
Slide 16: Appendix
Appendix ©NYK Group. All rights reserved. 16
Slide 17: Segment Overview: Air Cargo Transportation (NCA)
Segment-Overview: Liner & Logistics Segment 1．Air Cargo Transportation（NCA） FY2022(Result) FY2023(Forecast) Change from 1H 2H 1H(Result) 2H Prev. Full- Full- Forecast Q3 Q1 Q2 Q3 Q4 year Q1 Q2 Q4 year (Full-Year) (Result) Revenues 123.9 94.1 77.8 83.2 218.0 161.0 31.0 (Billions of yen) 62.5 61.3 54.
Slide 18: Segment Overview: Logistics
Segment-Overview: Liner & Logistics Segment 2．Logistics FY2021 FY2022 (Result) FY2023 (Forecast) Change from (Result) 1H 2H 1H(Result) 2H Prev. Full- Forecast Full-year Q3 Full-year Q1 Q2 Q3 Q4 Q1 Q2 Q4 year (Full-year) (Result) TEU 336 316 308 301 721 651 609 -6 Ocean (1,000TEUs) 167 169 164 152 15
Slide 19: 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 Q3 Q1 Q2 Q3 Q4 Full-Year Q4 Full-Year Full-year (Result) (Result) (Result) BDI 2,517 1,659 1,522 992 1,673 1,326 1,194 2,079 1,315 1,478 1,250 Dry Bul
Slide 20: 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) 2H Forecast Full-year Full-Year (Full-year) Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q4 (Result) 218 232 227 232 All Trade 450 460 -3 (10,000 Cars) 106 112 124 10
Slide 21: Ocean Network Express: Financial Results for FY2023 3rd Quarter
Financial Results for FY2023 3rd Quarter January 31, 2024
Slide 22: Index
Index 1. FY2023 3rd 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 3rd Quarter P.7 6. Reference (Fleet Structure, Service Structur
Slide 23: FY2023 3rd Quarter Results
1. FY2023 3rd Quarter Results Summary Sluggish consumption growth, a decrease in cargo movement during low season, and an influx of new ships contributed to the further softening of the supply and demand trend and low-level short-term freight rates in 3Q. The 3rd quarter concluded with a deficit of
Slide 24: Liftings, Utilization Rates, and Freight Index in Major Trades
2. Liftings, Utilization Rates, and Freight Index in Major Trades FY2022 FY2023 Liftings / Utilization by Trades 1Q 2Q 1H 3Q 4Q 2H Full Year 1Q 2Q 1H 3Q Results Results Results Results Results Results Results Results Results Results Results Asia - North America Lifting (1,000TEU) 577 578 1,155 449 4
Slide 25: FY2023 Full Year Forecast
3. FY2023 Full Year Forecast Summary Full-year results for FY2023 are expected to show a profit after tax of US$ 856 million, a decrease from the previous year due to the deterioration of the freight market caused by the softening of supply and demand. • Despite the positive trend in cargo movements
Slide 26: 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 October to December increased by 13.1% year-on-year thanks to the continued domestic consumption levels in the United States. Additionally, cargo movements from Asia to Europe increased
Slide 27: Initiatives for FY2023 3rd Quarter
５. Initiatives for FY2023 3rd 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 one of the top management priorities an
Slide 28: Reference: Fleet Structure, Service Structure & New Order
6. Reference（Fleet Structure, Service Structure & New Order) Fleet Structure Service Structure 1) As of end of Sep 2) As of end of Size 2023 Dec 2023 2)-1) （FY2023 3Q Structure of dominant and 20,000 TEU >= Capacity (TEU) 192,600 264,600 72,000 non-dominant space allocation） Vessels 9 12 3 10,500 TE
Slide 29: Change of Demand and Freight Index before/after COVID-19
7. Appendix Change of Demand and Freight index before/after COVID-19 Lifting Freight Index (FY2018 1Q=100) ©2023 Ocean Network Express Pte. Ltd. All Rights Reserved 9
Slide 30: 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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