Management Plan"New Horizon 2010"
New Horizon 2010 Key Strategies
Revision of New Horizon 2010 (October 27, 2009)
Performance, Financial Indicators Targets
New Horizon 2010 Key Strategies
The NYK Group launched its medium-term management plan, New Horizon 2010, in April 2008. Through this three-year plan, we aim to achieve a global monohakobi (transportation) network that will continue to grow under three fundamental strategies based on growth, stability, and the environment. And to support these strategies, we will strengthen our corporate social responsibility (CSR) management. The entire NYK Group will work unceasingly to step up efforts toward the achievement of these goals.
![Seeking to maintain growth as a global monohakobi (transport) enterprise/NYK Group Value [Integrity, Innovation, Intensity]/[Growth:Deepen the scope of strategies for global logistics business./Expand natural resource and energy transport business./Extend business reach and strengthen capabilities in the BRIC nations and other high-growth regions.] [Stability:Enhance service menu to provide customized and comprehensive transport and logistics support./Secure stable earnings through long-term contracts./Maintain sound financial position and strive to strengthen fiscal management.] [Environment: Strengthen safety measures to maintain solid track record./Strive to set a global standard for the modern, environmentally progressive corporate group./Proactively invest in eco-friendly technologies.] [Strengthen Corporate Social Responsibility Management/Differentiate Through Eco-Friendliness, Safety Track Record and Technological Innovation]](img/fig_01.gif)
Revision of New Horizon 2010 (October 27, 2009)
In response to the challenging economic situation that has prevailed since the end of 2008, we launched in January 2009 a two-year emergency structural reform project called "Yosoro." The aim of this project is to implement a structural reform through the optimization of fleet size, achieve a thorough cost reduction, and implement a fundamental review of the revenue structure and the sales and marketing system. We will reform the group structure to enable it to accommodate abrupt changes in external circumstances so that we will be ready for a leap forward after an economic recovery.
On October 27, 2009, we announced the revision of our medium-term management plan, New Horizon 2010, to reflect the further promotion of the emergency structural reform project.
[1] Structure Reform Summary
We will restructure our business portfolio by being selective and concentrating on core competencies as we seek an ideal future mix of businesses.
![[Defensive Strategy/Strengthen operations and financial position/1) Downsize Core Containership Fleet and Change to a Light Asset Business/We aim to halve our core fleet size by fiscal 2015 through the demolition of aged vessels and other measures. We will pursue speedy and flexible actions in response to shifts in the economy and the surrounding market without insisting on the use of our own containership fleet./2) Fundamentally review air cargo business/We will review our expansion strategy, and maintain regular services using eight aircraft. Flexible operations will be utilized as much as possible as a pure air cargo freighter to develop the charter flight business. We will also strive to streamline regular flight services.] [Offensive Strategy/Growth strategies after economic recovery/3) Deepen the scope of global logistics business/4) Strengthen sea and land car transportation business/To proactively respond to export demand from developing countries such as China and India, we will strengthen our auto logistics businesses, including the car terminal business and the land transportation business, to differentiate ourselves from competitors./5) Expand natural resources and energy resources transportation business and pursue new business opportunities/The need for the transportation of natural resources and energy resources is growing as the world’s population expands. With an eye on this trend, we will further strengthen relationships with Japanese and overseas customers, centering on developing countries. We will also prepare for our entry into the offshore business, which is expected to continue to grow.](img/fig_02.gif)
[2] Thorough Cost Reduction
All NYK Group companies conduct thorough cost-reduction activities in each individual operation. For the containership business, the total amount of this cost reduction is expected to exceed our original target of 50 billion yen, and we are still seeking additional cost savings.
[3] Capital Expenditure Plan
New investment is carefully evaluated, and priority is placed on establishing a solid financial standing. Vessel procurement will be based on a well-balanced combination of owned, leased, and long-term chartered vessels.
Number of Vessels in Fleet and Fleet Expansion/Procurement Amounts (including leased and long-term chartered vessels) Plan as of October, 2009
Performance, Financial Indicators Targets
The marine transport industry faces a severe situation given the uncertain economic climate; however, transportation volumes are expected to increase over the long term in fast-growing China and other developing countries in Asia.
Performance Targets
Financial Indicators Targets
