NYK Group Sets New Medium-Term Management Plan "New Horizon 2010"
March 27, 2008
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.
Three Key Strategies- Deepen the scope of strategies for global logistics services.
- Expand energy and natural resource transport.
- Extend business reach in growth regions, especially the BRIC* countries.
Stability
- Reinforce customer-oriented services.
- Stabilize profits by securing long-term contracts.
- Maintain a sound financial position and work to further strengthen this standing.
- Ensure safety.
- Score far ahead of other companies as an environmentally progressive corporate group
- Aggressively invest in the development of environment-friendly technologies.
| Years ended/ending March 31 | 2008 (Estimate) |
2009 (Plan) |
2010 (Plan) |
2011 (Plan) |
2014 (Target) |
| Revenues | 2,580 | 2,700 | 2,900 | 3,200 | Revenues should exceed ¥3.6 trillion and ordinary income should top ¥260 billion. |
| Ordinary income | 200 | 210 | 220 | 220 | |
| Net income | 120 | 140 | 145 | 145 |
*Exchange rate based on US$=115 yen for FY2007, and US$=100 yen for FY2008 - FY2010.
*Bunker oil prices based on US$402/MT for FY2007, and US$500/MT for FY2008 - FY2010.
Ships in fleet, ships and investments to be added (including leasing and long-term charter contracts)
| 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 as of March 31, 2008 | Newly acquired vessels (Procurement total) |
Anticipated size of fleet as of March 31, 2011 | Newly acquired vessels (Procurement total) |
Anticipated size of fleet as of March 31, 2014 | |
| Mainly bulk carriers and LNG carriers | 371 | 110 (¥520 billion) |
492 | 132 (¥740 billion) |
630 | 150-200 (¥1,100- 1,200 billion) |
750-800 |
| Car carriers | 98 | 24 (¥120 billion) |
113 | 39 (¥250 billion) |
150 | 20-30 (¥140 -200 billion) |
160-170 |
| Mainly liners | 177 | 41 (¥260 billion) |
201 | 47 (¥380 billion) |
220 | 30-40 (¥300 -400 billion) |
240-250 |
| Total | 646 | 175 (¥900 billion) |
806 | 218 (¥1,370 billion) |
1,000 | 200-270 (¥1,540 -1,800 billion) |
1,150-1,220 |
As mentioned above, the 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.
For details, please refer to the following website.(update on March 28, 2008)
URL:http://www.nyk.com/english/ir/manage/plan/index.htm