The 129th NYK Group Interim Report Fiscal 2015

Transcription

1 INFORMATION The documents following this cover sheet exist solely to provide English translations of selected information contained in the original Japanese text of the documents provided to shareholders as of September 30, 2015.

2 The 129th NYK Group Interim Report Fiscal 2015 From April 1, 2015 to September 30, 2015 More Than Shipping 2018 Nippon Yusen Kabushiki Kaisha

3 Greetings from the President I would like to express my sincere gratitude to our shareholders for your understanding and support for NYK Group s corporate activities. With the arrival of the documents for the interim period, I would like to share a few words. The financial results of the NYK Group for the current consolidated interim period were consolidated revenues of 1,198.2 billion, operating income of 38.6 billion, recurring profit of 42.7 billion, and net income attributable to owners of the parent company of 54.7 billion, marking year-on-year increases in revenues, income and profit. We will pay an interim dividend of 4.00 per share. As our forecast of consolidated financial results for the whole fiscal year, we forecast recurring profit of 80.0 billion and net income attributable to owners of the parent company of 47.0 billion. Based on this results forecast, we are planning year-end dividends of 3.00 per share. NYK started its business on October 1, 1885 and celebrated its 130th anniversary this year. The history of the NYK Group since its establishment has not always been smooth sailing. As a result of the devastation in World War II, we were forced to start again almost from scratch after the war. Thereafter, we also experienced numerous major changes that forced the shipping industry to implement structural reform, such as the shipping slump resulting from the oil shock and yen appreciation, and diversification and globalization of trade stemming from the end of the Cold War. We overcame such difficulties whenever they arose. This history of challenge is a result of repeated persistent efforts and creativity to ensure as much competitive advantage as possible, within the global shipping industry. Feeling pride in this tradition which has existed since our establishment, I intend to pass this tradition on to the next generation seamlessly. The essence of the Group s medium-term management plan More Than Shipping 2018 Stage 2 Leveraged by Creative Solutions, which has entered its second year, also is to create competitive advantage of the next generation with our own hands and to properly cultivate such advantage. To that end, we will continue to push forward with our strategy to pursue shipping plus alpha with a view to further improving corporate value by entering new fields such as offshore business, LNG fuel transport and automobile logistics. An oversupply of vessels is surfacing especially in the dry bulk market due to large orders for ships worldwide. Also, as a result of progress in trends such as building larger ships for various types of vessels, cost competition is significantly intensifying. As such, the business environment surrounding the NYK Group cannot be taken optimistically. We intend to steadily enhance our resilience toward market conditions by reviewing the composition of the fleet by utilizing short-term charters and scrapping aged vessels, and at the same time further improve the efficiency of operations and reduce costs across the entire Group in order to secure stable profits also in business fields that are susceptible to market fluctuations. In the future, we will continue to make every effort to achieve the targets of the medium-term management plan we are currently engaged in, for the purpose of further improving revenue. With regard to the fair trading issues concerning ocean shipping services for cars and trucks from previous fiscal years, we deeply apologize for causing concerns to our shareholders. Going forward, NYK will further strengthen and expand various measures for complying with laws and regulations, such as holding regular meetings of a Committee for ensuring adherence to antitrust law and carrying out risk assessments of antitrust laws in all our businesses. We will thus devote every effort to prevent recurrence and ensure thorough compliance to laws and regulations, as we conduct business fairly. We do appreciate our shareholders further understanding and support. November 2015 Tadaaki Naito President 1

4 Notes: 1. The forecast incorporates certain assumptions the Company regarded as rational expectations at the time this report was announced. Actual results could differ materially from those projected figures. 2. Fractions of amounts and the numbers of shares in this report are rounded down. 3. ( ) indicates minus. 4. Accounting Standard for Business Combinations (Accounting Standard Board of Japan Statement No. 21, September 13, 2013), etc., is applied and interim net income was changed to interim net income attributable to owners of the parent company. 2

5 Segment results (April 1, 2015 to September 30, 2015) (1) Global Logistics Liner Trade Current The 128th (In 100 millions of yen) The 127th The 126th Revenues 3,782 3,440 3,043 2,758 Recurring profit (loss) (8) 26 Air Cargo Transportation Current The 128th (In 100 millions of yen) The 127th The 126th Revenues Recurring profit (loss) 9 (33) (48) (24) Logistics Current The 128th (In 100 millions of yen) The 127th The 126th Revenues 2,495 2,265 2,117 1,788 Recurring profit (2) Bulk Shipping Current The 128th (In 100 millions of yen) The 127th The 126th Revenues 4,831 4,979 4,771 4,048 Recurring profit

6 (3) Others Real Estate Current The 128th (In 100 millions of yen) The 127th The 126th Revenues Recurring profit Other Current The 128th Revenues 765 1,153 Recurring profit (loss) 0 24 (In 100 millions of yen) The 127th The 126th Cruises 240 Cruises 179 Other 934 Other 848 Cruises 11 Cruises (11) Other 2 Other 1 Notes: 1. Business segment results show figures before elimination of internal transactions between segments. 2. In accordance with the transfer of the entire equity interest in CRYSTAL CRUISES, LLC, one of the main consolidated subsidiaries that constituted Cruises segment in the current, Cruises segment is included in Other. Any changes from this review are not reflected in the above stated segment results for the 126th and 127th s. 3. From the 128th fiscal year, the general and administrative expenses which are not attributable to specific segments, are treated as other corporate expenses and are not included above. 4

7 Consolidated Results in Interim Period Ended on September 30, 2015 Business overview of the consolidated group business The NYK Group recorded a year-on-year increase in revenues, income and profit in its consolidated interim financial results for the fiscal year ending March 31, 2016, with revenues of 1,198.2 billion, operating income of 38.6 billion, recurring profit of 42.7 billion, resulting in interim net income attributable to owners of the parent company of 54.7 billion. The full-year consolidated results are forecasted to be revenues of 2,370.0 billion, operating income of 75.0 billion, recurring profit of 80.0 billion and net income attributable to owners of the parent company of 47.0 billion. Summary of Consolidated Balance Sheets Assets Current As of September 30, 2015 (In millions of yen) Previous fiscal year As of March 31, 2015 Current assets 804, ,496 Cash and deposits 236, ,900 Notes and operating accounts receivable-trade 266, ,518 Other 302, ,300 Allowance for doubtful accounts (2,287) (2,222) Non-current assets 1,693,491 1,726,837 Vessels, property, plant and equipment 1,153,408 1,190,460 Vessels, net 892, ,245 Buildings and structures, net 79,298 79,650 Aircraft, net 21,188 21,621 Land 74,414 67,162 Other 85,518 84,781 Intangible assets 46,311 48,787 Investments and other assets 493, ,589 Investment securities 358, ,665 Other 137, ,387 Allowance for doubtful accounts (2,670) (2,462) Deferred assets Total Assets 2,497,933 2,569,828 5

8 Liabilities Current As of September 30, 2015 (In millions of yen) Previous fiscal year As of March 31, 2015 Current liabilities 481, ,858 Notes and operating accounts payable-trade 209, ,470 Short-term loans payable 103,945 99,566 Advance received 40,424 78,102 Other 127, ,718 Non-current liabilities 1,103,782 1,152,047 Bonds payable 195, ,445 Long-term loans payable 751, ,832 Other 156, ,769 Total Liabilities 1,584,965 1,688,905 Equity Shareholders capital 811, ,957 Common stock 144, ,319 Capital surplus 155, ,616 Retained earnings 513, ,092 Treasury stock (2,086) (2,070) Accumulated other comprehensive income (loss) 29,571 45,353 Unrealized gain (loss) on available-for-sale securities 42,630 54,665 Deferred gain (loss) on hedges (43,226) (41,857) Foreign currency translation adjustments 23,964 27,196 Remeasurements of defined benefit plans 6,202 5,348 Non-controlling interests 71,892 70,611 Total equity 912, ,923 Total Liabilities and Equity 2,497,933 2,569,828 For detailed financial information, please see the Investor Relations page on the Company's website: 6

9 Summary of Consolidated Statements of Income (In millions of yen) Current From April 1, 2015 to September 30, 2015 Previous From April 1, 2014 to September 30, 2014 Revenues 1,198,297 1,179,098 Cost and expenses 1,053,027 1,050,023 Gross profit 145, ,075 Selling, general and administrative expenses 106, ,178 Operating income 38,623 27,896 Non-operating income 16,125 20,699 Non-operating expenses 12,037 11,857 Recurring profit 42,711 36,738 Extraordinary income 38,325 7,461 Extraordinary loss 2,577 13,747 Interim income before income taxes 78,459 30,451 Income taxes 19,127 8,658 Interim profit 59,331 21,793 Interim net income attributable to non-controlling interests 4,562 1,790 Interim net income attributable to owners of the parent company 54,768 20,002 7

10 Summary of Consolidated Statements of Cash Flows Net cash provided by (used in) operating activities Net cash provided by (used in) investing activities Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Increase (decrease) in cash and cash equivalents resulting from change of scope of consolidation Increase in cash and cash equivalents resulting from merger with non-consolidated subsidiaries Increase (decrease) in beginning balance of cash and cash equivalents resulting from change in fiscal period of consolidated subsidiaries Cash and cash equivalents at end of half year Current From April 1, 2015 to September 30, 2015 (In millions of yen) Previous From April 1, 2014 to September 30, ,843 46,403 (23,944) (34,411) (41,522) (72,623) (3,649) 2,348 1,726 (58,282) 327, , , ,847 8

11 Current State (As of September 30, 2015) Current State of the Company (1) Trade Name Nippon Yusen Kabushiki Kaisha (2) Head Office 3-2, Marunouchi 2-chome, Chiyoda-ku, Tokyo Tel: (main switchboard) (3) Establishment September 29, 1885 (Date of commencement: October 1, 1885) (4) Paid-in Capital 144,319,833,730 yen (5) Stock Listings Tokyo (1st section) and Nagoya (1st section) (6) Number of employees of NYK 33,624 (Note: NYK and consolidated subsidiaries only) Group Number of employees of NYK 1,173 (land: 902, sea: 271) (including 69 temporary seconded employees to the Company and excluding those to other companies and dispatched workers) (7) Number of vessels operated 795 (63,583,290 dwt) by NYK Group (8) Independent Auditor Deloitte Touche Tohmatsu LLC 9

12 Directors, Audit & Supervisory Board Members and s Chairman, Chairman Yasumi Kudo President, President Tadaaki Naito Representative Director, Executive Vice-President Naoya Tazawa Representative Director, Senior Managing Kenji Mizushima Representative Director, Senior Managing Hitoshi Nagasawa Representative Director, Senior Managing Koichi Chikaraishi Director, Senior Managing Masahiro Samitsu Director, Managing Hidetoshi Maruyama Director, Managing Yoshiyuki Yoshida Director, Hitoshi Oshika Director, Kazuo Ogasawara Outside Director (Part-time, Independent Director) Yukio Okamoto Outside Director (Part-time, Independent Director) Yuri Okina Audit & Supervisory Board Member (Full-time) Hiroshi Sugiura Audit & Supervisory Board Member (Full-time) Yoko Wasaki Outside Audit & Supervisory Board Member (Part-time, Independent Auditor) Mitsuoki Kikuchi Outside Audit & Supervisory Board Member (Part-time, Independent Auditor) Toshio Mita Senior Managing Koichi Akamine Senior Managing Yasuo Tanaka Managing Fukashi Sakamoto Managing Takashi Abe Takuji Nakai Yuji Isoda Kenichi Miki Eiichi Takahashi Noriaki Tajima Hiroyuki Okamoto Svein Steimler Jeremy Nixon Tomoyuki Koyama Keiji Tsuchiya Hiroki Harada Noriko Miyamoto Toshiyuki Kimura Akira Kono Takaya Soga Kobune Goto Note: Mr. Toshiyuki Kimura concurrently serves as Director, Managing Executive Officer of the Company s consolidated subsidiary, YUSEN LOGISTICS CO., LTD. 10

13 Current State of Shares (1) Total number of shares authorized to be issued 2,983,550,000 shares (2) Number of shares issued 1,695,954,303 shares (excluding treasury stock 4,596,685 shares) (3) Number of shareholders 127,717 persons (increased by 2,594 from the preceding term) (4) Major shareholders (Top 10) Name Number of shares held (in thousands) THE MASTER TRUST BANK OF JAPAN, LTD. (Trust Account) 99,890 JAPAN TRUSTEE SERVICES BANK, LTD. (Trust Account) 95,343 MITSUBISHI HEAVY INDUSTRIES, LTD. 41,038 MEIJI YASUDA LIFE INSURANCE CO. 34,473 STATE STREET BANK AND TRUST COMPANY ,069 TOKIO MARINE & NICHIDO FIRE INSURANCE CO., LTD. 28,945 THE BANK OF NEW YORK MELLON SA/NV 10 23,662 STATE STREET BANK WEST CLIENT-TREATY ,893 CHASE MANHATTAN BANK GTS CLIENTS ACCOUNT ESCROW 22,167 MELLON BANK, N.A. AS AGENT FOR ITS CLIENT MELLON OMNIBUS US PENSION (5) Shareholder composition (Breakdown of issued shares by type of shareholders) Foreign Investors 38.3% Financial Institution 30.3% Individuals and Others 21.2% Other Japanese Corporations 7.7% Securities Firms 2.2% Treasury Stock 0.3% 20,637 (6) Treasury stock Shares held as of the end of the preceding term Common Stock 4,549,422 shares Shares purchased in the current Less-than-One-Unit Share Purchased Shares disposed in the current Less-than-One-Unit Shares Sold Shares lapsed in the current Common Stock Total price of acquisition Common Stock Total price of disposition 49,843 shares 17,261,520 yen 2,580 shares 854,984 yen None Shares held as of the end of the Common Stock 4,596,685 shares 11