Nippon Yusen Kabushiki Kaisha : Fact Book 2023

FACT BOOK Ⅰ 2023

Segment Business Data May 2023

Ticker Code

9101

1 Contents

Businesses	Business	Corporate
and Strategy	Segment Data	Information

Businesses and Strategy

Business

Segment

Data

Corporate

Information

Corporate Culture of the NYK Group	2
Medium-Term Management Plan	3
The NYK Group ESG Story	5
Fleet in Operation	6
Performance Highlights	7
Financial Highlights／	8
Revenues and Recurring Profit by Industry Segment
Container Shipping Division	9
Air Cargo Transportation Business	11
Logistics Business	13
Automotive Business Division	14
Dry Bulk Business Division	15
Energy Business Division (Tankers)	18
Energy Business Division (LNG Fleets)	20
Investor Information	21

NYK Fact Book Ⅰ 2023

Notes: The outlook figures written on this material are based on the information currently available to us.

Please note that it may fluctuate due to economic conditions, foreign exchange rates, and market conditions.

2 Corporate Culture of the NYK Group

Basic Philosophy

For developing Medium-Term Management Plan,

we reorganized positioning of our corporate Mission, Vision, and Value (MVV) and management strategy

Businesses	Business	Corporate
and Strategy	Segment Data	Information

NYK Group Values

NYK Group Values represent our DNA, inherited over 130 years of history.

They remain aligned with gemba and society and guide us toward the achievement of our "NYK Group Mission Statement."

Integrity

The NYK Group's basic philosophy, "Bringing value to life," expresses the purpose and reason for the Group's existence- i.e., the value the Group brings to all living things and the environment while realizing prosperous lives and daily fulfillment for people around the world.

Value in items is created when they are with the people who need them and are in the necessary places. In the future, the Group will play a central role in contributing to a sustainable society and environment, in addition to delivering the essential items and services to the people that need them and to the desired places.

Based on this basic philosophy, the Group is working every day toward its goal of co-creating sustainable value with all of its stakeholders while flexibly adapting its business models to changes in this current era and in society.

Formulated in 2018, our basic philosophy inherits the mission and spirit that have been passed down through the generations since the Company's founding. This philosophy has permeated throughout the Group and down to its roots as words that express the true ambitions of all our employees.

NYK Fact Book Ⅰ 2023

Innovation Intensity

Integrity

Be respectful and considerate to your customers and colleagues.

Stay warm, cordial, courteous, and caring.

Innovation

Continually think of new ideas for improvement, even when conditions appear satisfactory.

Remain open to betterment.

Intensity

Carry through with and accomplish your tasks. Never give up.

Overcome challenges. Remain Motivated.

3	Medium-Term Management Plan	（			）	Businesses	Business	Corporate
		Four-year-plan implemented from fiscal 2023	and Strategy	Segment Data	Information
		NYK Group's target state				Opportunities and Risks for our business
						and Direction of individual businesses

Business opportunities

Business risks

Business direction

Beyond the scope	Steady growth	Challenge and
of comprehensive	based on two
co-creation
logistics	pillars

Transcendence	Two pillars	Co-creation	Vision
Evolve beyond	Create value and	Achieve evolution and
and based on	growth towards the	growth by taking on
our traditional	future with both	challenges and co-
shipping	core and new	creating, both a long-

Liner & Logistics

Continuation of long- term shipping volume growth

Potential revenue improvement based on advancement of the business model

Upscaling based on M&A

	Capture
	economic growth
Changes in container	in emerging
shipping market	countries
Continuity of container
shipping alliances	Pursue
Heavier taxation on
growth in
GHG emitted by vessels	developing
	markets

business	businesses	standing aspect of our
		corporate culture

Execute strategies based on the target state for 2050

We strive to contribute to society and achieve sustainable growth

Bulk Shipping

• Dry bulk
• Energy
• Automotive business

Differentiation based on being at the forefront of vessel low/decarbonization

Increase in demand for new fuel transport

Increase in transport of food/minor bulk in the dry bulk market

Decrease in global demand for iron ore, coal, and oil

Decrease in new car sales in developed countries

Heavier taxation on GHG emitted by vessels

Ensure advantage through low- carbon and decarbonization initiatives

Respond

to

changing

market

demands

• We go beyond the scope of a comprehensive global logistics enterprise to co-create value required for the future by advancing our core

business and growing new ones	"

New business opportunities

Establishment of renewable energy value chain

Changes in fleet value chain due to decarbonization/ automatic piloting

New business opportunity creation and competitive advantage through diverse talent

Develop a new market created

Technology/product through

developmentdecarbonization uncertainties

Lack of required expert
talent	Enter a
Stagnant	rapidly
growing
decarbonization trend
market

NYK Fact Book Ⅰ 2023

4	Medium-Term Management Plan	（	）	Businesses	Business	Corporate
		Four-year-plan implemented from fiscal 2023	and Strategy	Segment Data	Information

In developing the new medium-term management plan, apply backcasting to envision the 2050 state

Basic Strategy

Key strategy with core business advancement and new business development as the two pillars

Support strategy with CX (talent, organizational restructuring, group management transformation), DX, and EX

Financial plan outlook

Management targets

FY2022 (Results)	FY2023 (Forecast)	FY2026 (Forecast)

Financial targets	Non-financial targets

Recurring Profit	JPY 1,109.7 Bn	JPY 200.0 Bn	JPY 270.0 Bn
Others	-	-	JPY 150.0 Bn
ONE (Our estimate)	-	-	JPY 120.0 Bn
Current Profit attributable	JPY 1,012.5 Bn	JPY 200.0 Bn	JPY 240.0 Bn
to owners of parent
Shareholders' Equity Ratio	66%	67%	57%
After changing to on-	55%	57%	49%
balance sheet *1
ROIC *2	35.7%	6.7%	6.5%

Over

6.5%

JPY200

~300 billion

8-10%

ROIC (Return on invested capital) Strive to improve our enterprise value by fundamentally increasing business profitability

For this medium-term plan period (FY23~FY26), focus also on current profits and ROE as KPIs

Current net profit

Target as of FY26

ROE (Return on Equity) Target as of FY26

Focus on efficiency relative to shareholders' equity

0

accident

Over

30%

30%

Number of major accidents: sea, land, and air

Number of major accidents based on our standard

GHG reduction by vessels

FY30 target (vs. FY21)

Share of women managers

CY30 target

(onshore positions for NYK non-consolidated)

ROE *3

48.3%

8.0%

10.2%

(*1) Our estimation of charter fee liabilities：About JPY 700 Bn each in FY22, 23, and 26

(*2) (Operating income after tax ＋ Extraordinary profit & loss after tax ＋ Equity in earnings of affiliates ＋ Dividend income) ÷ (Invested capital)

(*3) (Current net profit ) ÷ (Equity)

(*4) Above outlook does not include the JPY 200Bn share buyback scheduled for FY22-23 as its detail is still under consideration

Click link to see our medium-term management plan, published in March 2023

NYK Fact Book Ⅰ 2023