Message from the President

I would like to express my sincere gratitude to all of our company’s shareholders and investors for your understanding and support of the NYK Group’s activities. I am pleased to have this opportunity to report as follows on the NYK Line’s full-year results for the fiscal year ending March 31, 2021.

Last year began with COVID-19 causing havoc around the world, and the future outlook was extremely uncertain. However, in the second half, consumption trends clearly shifted from services to goods, and there was a surge in consumer goods shipments from Asia to mainly Europe and America. As a result, Global Logistic Services (Liner Trade, Air Cargo Transportation and Logistics) was a strong driver of the results achieved as a group. Although an extraordinary loss was recorded for structural reforms in the dry bulk division, the full-year consolidated financial results were revenue of ¥1,608.4 billion, operating profit of ¥71.5 billion, recurring profit of ¥215.3 billion and profit attributable to owners of parent of ¥139.2 billion, greatly exceeding the figures announced in the initial forecast.

Based on these results, it is planned to issue a year-end dividend of ¥180 per share (for a full-year dividend of ¥200 per share including the interim dividend of ¥20 per share). Also, the current consolidated forecast for next year is revenue of ¥1,500 billion, operating profit of ¥66 billion, recurring profit of ¥140 billion and profit attributable to owners of parent of ¥140 billion. Regarding the dividend, based on our basic dividend policy, we plan to issue an annual dividend of ¥200 per share.

The impact of the COVID-19 pandemic on the NYK Group going forward continues to be uncertain. Under the basic philosophy of “Bringing value to life,” we have renewed our awareness of the NYK Group’s social mission to support global logistics and lifelines, and while securing the safety of all group employees working on land, sea and air, we will maintain business continuity, including measures for ensuring safe navigation and ongoing operations.

In accordance with our medium-term management plan “Staying ahead 2022 with Digitalization and Green,” we are working to improve profit and strengthen our ability to withstand market volatility by optimizing the portfolio and securing stable-freight-rate business. In relation to increasing efficiency and creating new value through “Digitalization and Green,” we received delivery of Japan’s first LNG-fueled pure car and truck carrier Sakura Leader in October last year, and the vessel has already entered service. Moreover, we are steadily conducting multiple projects directed at establishing a new business model for the themes of LNG fuel, hydrogen and ammonia, including the start of joint research and development into practical realization of an ammonia-fueled tugboat.

Also, in February of this year, based on the policy set forth in the medium-term management plan, we announced the NYK Group ESG Story that presents the specific initiatives to be implemented as a growth strategy with ESG positioned as a core pillar of management. Going forward, along with continuing to steadily advance the initiatives set forth in the medium-term management plan, we will work to deliver value to all stakeholders as a Sustainable Solution Provider directed at realizing a sustainable environment and society in the future.

Going forward, I ask all of the shareholders and investors for your continued understanding and support for the NYK Group.

Financial Results Overview

Please see the below chart and graph for our full-year financial results.

(Billion yen)

Full-Year Result
Full-Year Result
Revenues 1,668.3 1,608.4 -59.9
Operating Profit 38.6 71.5 32.8
Reccuring Profit 44.4 215.3 170.8
Profit attributable to owners of parent 31.1 139.2 108.0
Average Exchange Rate ¥109.13/US$ ¥105.79/US$ Yen up
Average Bunker Oil Price US$454.97/MT US$362.95/MT Price Down
  • *Figures are rounded down to the nearest 100 million yen.


Recurring Profit

Earnings Forecast for the Fiscal Year 2021

It is still unclear what impact the COVID-19 pandemic will have on the global economy and when the pandemic will come to an end. During the past year, the container shipping division was most affected by the pandemic, and although strong shipping demand and harbor congestion remain ongoing, due to the uncertainty surrounding when the situation will return to normal, forecasts are based on the assumption that situation will gradually move toward normalization from the second half of the first quarter onward. Although handling volumes at terminals in Japan are expected to increase, handling volumes at overseas terminals are expected to decline as the container demand on the North America trade settles down. In the Air Cargo Transportation segment, while a gradual return of international passenger flights to the market is anticipated, cargo volumes are expected to remain strong as the global economy recovers. In the Logistics segment, although a decrease in the handling volume is assumed, market levels are expected to trend higher than usual. In the ocean freight forwarding business, agile marketing will continue to be conducted based on the demand, and in the logistics business, efforts will be made to stabilize earnings through revisions to contract prices and cost reductions. In the car transportation division, although there are concerns about the impact on the number of vehicles transported due to insufficient semiconductor production, the cargo volume is expected to recover from the previous fiscal year. In the dry bulk division, the market has been strong at the start of the year, and it is expected to remain at elevated levels compared to last year throughout the year for all vessel segments. In the energy division, the VLCC (Very Large Crude Carriers) and VLGC (Very Large LPG Carriers) markets continue to be weak, but the results are expected to remain steady based on support from stable medium and long-term contracts in the LNG carrier and offshore businesses.
Based on the above forecast, profit is expected to be lower on decreased revenue next year, but business results are expected to remain at a favorable level.

(Billion yen)

Revenues 1,608.4 1,500.0 -108.4
Operating Profit 71.5 66.0 -5.5
Reccuring Profit 215.3 140.0 -75.3
Profit attributable to owners of parent 139.2 140.0 0.8
Average Exchange Rate ¥105.79/US$ ¥105.00/US$ Yen Up
Average Bunker Oil Price US$362.95/MT US$509.00/MT $146.05 Up
  • *Figures are rounded down to the nearest 100 million yen.


NYK Line has designated the stable return of profits to shareholders as one of the most important management priorities, and generally targeting a dividend payout ratio of 25%, the profit distribution is decided after comprehensively taking into account the business forecast and other factors. At the same time, based on an ongoing minimum dividend that is not affected by the business results, an annual dividend of ¥20 per share has been set as the minimum dividend for the time being. In accordance with this policy, for the current fiscal year (fiscal year ending March 31, 2021), it is planned to issue a year-end dividend of ¥180 per share for a full-year dividend of ¥200 per share including the interim dividend. Regarding next year (fiscal year ending March 31, 2022), based on this policy, it is currently planned to issue an interim dividend of ¥100 per share and a year-end dividend of ¥100 per share for a full-year dividend of ¥200 per share.

May 10, 2021
Hitoshi Nagasawa