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  4. 1. Diversified and Balanced Portfolio

Top 5 Reasons to Invest in NYK

1. Diversified and Balanced Portfolio

a) Balance between shipping and non-shipping

Although we are a shipping company, we also have fairly large non-shipping business activities in the logistics, aircargo transportation, and real estate sectors. In fact, these account for more than 30 percent of the NYK Group's total turnover. Our shipping and non-shipping businesses complement each other and thus contribute to stabilizing the Group's profit.

b) Less reliance on the liner business

The liner business is said to be unstable, a business in which profitability fluctuates violently in accordance with supply and demand. Our reliance on the liner business is relatively small compared to our Japanese peers.

(Figures are Group turnover in JPY, billions)

c) Globally Diversified

Although we are based in Japan, our reliance on the Japanese market is fairly limited (approximately 30 percent of the Group's turnover). This means our performance is not biased by a single country's economic situation (namely Japan's), but instead risk is evenly dispersed globally.

※For cross-regional transportation, revenue is divided evenly between the two regions.

d) Growth of businesses having stable freight rates

Over the past few years, we have emphasized building a portfolio of businesses having stable freight rates, i.e., businesses that can generate stable profits even in a volatile shipping market. In the coming five years, we will amplify our growth strategy by concentrating our investments into LNG, offshore, and auto transportation segments, where we see much opportunity for stable profitability.

We announce that it will withdraw its earnings and financial targets of fiscal 2018 from its medium-term management plan “More than Shipping 2018 -Stage 2 leveraged by Creative Solutions-” launched in 2014 to cover the 5 years from fiscal 2014 onward.
Key strategies of the medium-term management plan remain unchanged and will be further pursued.

Business with Stable Freight Rates :
LNG, Offshore, Automobile Transport, Logistics, Bulk Shipping (excluding short-term COA, Spot), Terminals, etc.