NUTC BAC PANEL. May

Transcription

1 NUTC BAC PANEL May

2 Containership Industry Environment Where we are today Years of overbuilding and reduced trade growth have resulted in chronic global overcapacity Rates are not renumerative with most carriers continuing to lose money Intense focus on cost-cutting, which can impact service quality Culminated in Hanjin bankruptcy last year seventh largest carrier in the world Some modest improvements in rates this year, but not enough to restore financial health -2-

3 Environment of Container Shipping Business - Cargo Demand and Tonnage Supply Over the last several years, cargo demand growth has slowed while the supply of tonnage has steadily increased due to a large number of newly delivered vessels. This has deteriorated the supply and demand balance in the industry % 9.7% 5.0% % 9.6% 9.7% 5.8% 5.1% 0.0% 6.1% 5.5% % 4.4% 5.9% 2.1% 4.1% 3.8% 3.0% % -5.0% Source: Drewry(Container Forecaster), 2Q 2016 Alphaliner, (Foreast) % % 8.6% 2017 (Foreast) 10.0% Container cargo movement Tonnage growth rate 14.6% 2016 (Foreast) 15.0% 13.0% 16.4% 14.1% 15.0% 12.0% %

4 Environment of Container Shipping Business - Market: Change in freight level(ccfi) Freight levels tend to fluctuate in relation to the supply and demand balance, among other industrial factors. In the past two years, freight levels have slumped in contrast to the historical market trends. China/USWC(West Coast) China/Europe China/USEC (East Coast) (point) 1,900 1,700 1,500 1,300 1, 出典 China (Export) Containerized Freight Index -4-

5 Containership Industry Environment Industry Responses Vessel Sharing Alliances for scale THE Alliance includes MOL, K-Line, NYK Ocean Alliance 2M Mergers/Acquisitions (Since 2016) Hapag Lloyd/UASC Cosco/China Shipping CMA CGM/APL Maersk/Hamburg Sud Pending 3 Japanese Lines -5-

6 Integrating Business All three companies are diversified global logistics enterprises. The newly established JV will integrate the container shipping activities and container terminal business worldwide excluding Japan. Containerships Bulkships Bulk Shipping Business Containerships Offshore Energy E&P Support and Heavy Lifter Business Ferries & Coastal RoRo Ships Air Cargo Transportation Associated Businesses Logistics Other Others Global Logistics Liner Trade Bulk Shipping Others Real Estate Note1: Segmentation information from each IR report Note2: Logistics business in Containerships of K LINE and MOL is not to be integrated. -6- Other

7 Size of Integrating Business JV (Sum) Sales (B JPY) Fleet TEU (K) , ,382 # of fleets # of serving countries # of services Note 1: Sales are as of Mar., 2016, TEU s are as of Oct., 2016, # of fleets are as of Sep., 2016 Note 2: Sales figures are not equal to sales of integrating business because displayed figures are sales of segment which integrating business belong Source: Alphaliner, IR report -7-

8 Environment of Container Shipping Business -Evolution of the competitive landscape (Expanded gap of fleet scale through industry M&A) M&A activities globally have recently been increased at a rapid pace. Unit: 000 TEU 2,680 1, % 4% 13 YML 14 NYK 15 UASC 16 KL 17 PIL 18 HMM 12 APL MOL 5 EMC OOCL 4 HL HJS 5% HSD 5% CSCL COSCO 958 9% 3 CMACGM 2 MSC 14% 1 MSK 16% 2-3 Mil TEU Class 3,172 2, Mil TEU Class 2,172 and UASC case is still under discussion Source: Alphaliner HMM 12 PIL 5% YML *1 7% 9 OOCL +UASC 5 HL (+CSCL) 4 COSCO 7% HSUD 8% Under 1 Mil TEU Class 7 EMC 11% companies 14% 1,382 6 Total of 3 16% Sum 1,555 1,477 (+APL) 3,500 3,000 2,500 2,000 1,500 1, CMACGM *1HL 3,053 2 MSC Fleet Scale October ,500 3,000 2,500 2,000 1,500 1, MSK Fleet Scale September 2015 Note) The sum figure is as of October 2016 excluding the order book of approx. 360,000 TEU

9 The Aim of the Joint-Venture Operational Efficiency Economy of Scale Competitiveness (Profitability) Best Practice Larger Business Size Synergy of Creation of more synergy and Achievement of economy Approx. 110 B JPY/yea enhancement of operational of scale by bringing three efficiency by integration of companies business each company s best practice Profit stabilization by accomplishment of synergy of approx. 110 B JPY/year By strengthening the global organization and enhancing the liner network, we will be able to provide higher quality services and unlock new value in order to exceed our clients expectations

10 JV Schedule Following schedule is planned. Establishment of JV (Planned) July 1st, 2017 Service Start (Planned) April 1st,