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First of all, I would like to express my sincere gratitude to our shareholders and investors for your continued support of the NYK Group.

General outline of the results for the nine months ended December 31, 2009

Please see the below charts for a summary of our consolidated business results for the third quarter ended December 31, 2009.

Revenue

Recurring Profit

Revenue

Recurring Profit

In the fiscal third quarter (October 1 — December 31, 2009), shipping operators' business environment recovered to a degree amid signs that the global economic downturn was bottoming out. Overall the financial results for fiscal third quarter ended in the black, due to positive contributions from efforts to restore container freight rates, container and car transport volumes that exceeded the fiscal second quarter's, and a moderate upturn in the dry bulk market. However, comparing to the year-ago third quarter, overall revenue was down 27.6%, operating income was down 86.4%, recurring profit was down 89.5%, and net income was down 85.9%, all significant declines.

Gist of business environment by business category (FY2009 3Q)

I would like to briefly outline the business environment by dividing our business into two categories: (1) the shipping division, consisting of the liner segment (mainly containerships) and bulk shipping segment (including bulk and specialized carriers, and tankers), (2) nonshipping divisions (the logistics segment, terminal and harbor transport segment, cruise segment, the air cargo transportation segment (NCA), real estate segment, and other segment).

1. Shipping Division (Liner Segment and Bulk Shipping Segment)
   In the liner segment (mainly containership), the supply-demand balance improved further with transport volumes retreating only minimally during the low-demand winter season and continued efforts we undertook to consolidate our fleet. However, transport volume and freight rates were less than the year-ago third quarter, and as a result, liner trade segment overall underperformed significantly. In the car carrier division of the bulk shipping segment, transport volumes turned up slightly, but car transport volume was down to around 70% of last fiscal year's third-quarter level. In the dry bulk carrier division, as emerging economies in Asia continued to grow and developed economies recovered, volumes of transportation increased and freight rates in the dry bulk market remained firm. Consequently, the dry bulk carrier division's profit was up versus the year-ago third quarter. The tanker division resulted in lower profit versus the year-ago third quarter, because large stockpiles of crude oil and petroleum products in developed countries resulted in subdued transport volumes.
2. Nonshipping Divisions (Logistics Segment, Terminal and Harbor Transport Segment, Cruise Segment, Air Cargo Transportation (NCA), Real Estate Segment and Other Segment)
   Regarding NYK Logistics in the logistics segment, although handling volumes increased in tandem with economic recovery in Asia, it was unable to make up for the slump in the Americas and Europe. Regarding Yusen Air & Sea Service Co., Ltd., revenue and profit were both lower versus the year-ago third quarter, mainly due to lower margins caused by an increase in airfreight rates that pushed up input costs. In terminal and harbor transport segment, handling volumes at container terminals both in Japan and overseas declined due to the global slump in container cargo transport. The cruises segment underperformed the year-ago third quarter because seat-load factor declined due to the U.S. economic slump. In air cargo transportation segment, Nippon Cargo Airlines Co., Ltd. capitalized on recovering demand by expanding not only regular flights but its charter business also, and succeeded in reducing its loss versus the year-ago third quarter. The real estate business achieved results on par with the year-ago third quarter by virtue of maintaining high occupancy rates at major office buildings. In other services, the trading business underperformed year-ago results in the wake of market slumps.

Prospects for Fiscal Year 2009

Please see the below chart for performance prospect for fiscal year ending March 31, 2010.

Freight rates in the dry bulk market are firm, and we expect air cargo transportation segment to reduce the size of the segment's losses. In the liner trade, we expect expenses to increase due to rising bunker oil prices. In the cruise segment, we expect harsh times to persist because of delayed economic recovery in Europe and the U.S. We will continue streamlining our operations and rationalizing fleet sizes, and we have revised our full-year consolidated earnings forecast as detailed above.

Dividend forecast

For the fiscal year ending March 31, 2010, we maintained an interim dividend and year-end dividend of ¥2 per share each, resulting in a total annual dividend of ¥4 yen per share.

Your continuing support would be highly appreciated.