NYK Line | Investor Relations | Management Plan "New Horizon 2010"

New Horizon 2010 Medium-term NYK Group management plan running from fiscal 2008 to fiscal 2010 (April 1, 2008 to March 31, 2011)

The NYK Group announced on March 27 its new medium-term management plan, "New Horizon 2010," which will consolidate strategies from the previous plan to enhance growth, increase stability and further protect the environment.

The new plan, which will run from April 2008 to March 2011, replaces "New Horizon 2007," which ran from April 2005 to March 2008. Under "New Horizon 2007," the NYK Group strengthened its corporate power as a comprehensive logistics company by focusing on three key strategies: 1) Expand shipping segment, 2) Evolve into a logistics integrator, and 3) Enhance our corporate fundamentals. In this last fiscal year for the plan, the NYK Group forecasts that it will reap the biggest profits of any year in its history. Under "New Horizon 2007," it expanded transportation businesses covering the sea, land, and air and recorded about 60% growth by increasing revenue from roughly 1.6 trillion yen to 2.6 trillion yen. Under "New Horizon 2010," it will build on this work, while also pursuing the three strategies outlined below, and in so doing will continue to evolve into a global monohakobi (transport) company that achieves regular increases in revenue and profits.

As the global logistics market continues to grow, the NYK Group will expand its fleet of ships with the aim of having 1,000 vessels in service by the end of the 2010 fiscal year. It will also proactively invest in other sectors such as logistics and air freight business.

Number of Vessels in Fleet and Fleet Expansion/Procurement Amounts

(including leased and long-term chartered vessels)

	March 2005	April 2005 - March 2008		April 2008 - March 2011		April 2011 - March 2014
	Actual size of fleet as of March 31, 2005	Newly acquired vessels Procurement total	Anticipated size of fleet on March 31, 2008	Newly acquired vessels Procurement total	Anticipated size of fleet on March 31, 2011	Newly acquired vessels Procurement total	Anticipated size of fleet on March 31, 2014
Mainly bulk carriers and LNG carriers	371ships	110ships ¥520 billion	492ships	132ships ¥740 billion	630ships	150-200ships ¥1,100-¥1,200 billion	750- 800ships
Car carriers	98ships	24ships ¥120 billion	113ships	39ships ¥250 billion	150ships	20-30ships ¥140-¥200 billion	160- 170ships
Mainly liners	177ships	41ships ¥260 billion	201ships	47ships ¥380 billion	220ships	30-40ships ¥300-¥400 billion	240- 250ships
Total	646ships	175ships ¥900 billion	806ships	218ships ¥1,370 billion	1,000ships	200-270ships ¥1,540-¥1,800 billion	1,150- 1,220ships

Nonfleet Investment (Logistics, Air Cargo Transportation, Other)

April 2005 - March 2008		April 2008 - March 2011
¥290 billion		¥290 billion

The procurement of ships will be achieved through a well-balanced combination of vessel ownership, leasing and long-term chartering.

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Performance Targets

The NYK Group will target consolidated revenues of more than 3.0 trillion yen and income before extraordinary items of more than 220.0 billion yen. It expects to achieve these goals by strengthening customer services and stabilizing profits through the acquisition of long-term contracts.

(Billions of yen)

Years ended
/
ending March31

2008
(Result)

2009
(Planned)

2010
(Planned)

2013
(Planned)

2014
(Target)

Revenues

2,585

2,700

2,900

3,200

Revenues should exceed ¥3.6 trillion
and ordinary
income should top ¥260 billion.

Ordinary income

199

210

220

Net income

114

140

145

Assumed forecasting variables *2008 is results.
Exchange rates (yen to U.S. dollar)	¥115.29	¥100
Bunker oil price (per metric ton)	$402.77	$500

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Special Environment Project: NYK Cool Earth Project

Starts in April 2008

NYK Group expects to achieve growth and stability as a genuine global company. At the same time, it will strive to score far ahead of other companies as an environmentally progressive corporate group by making environmental issues a central plank in its management focus.

To that end, this April NYK president Koji Miyahara has set in motion the NYK Cool Earth Project, which will involve the entire NYK Group in the development of environmentally-friendly technology and other schemes that promote environmental sustainability.

NYK will earmark ¥70 billion over six years to this project, with a focus on the development of innovative, environment-oriented equipment and technologies that curb greenhouse gas emissions.

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