NYK President Nagasawa delivered his New Year's greetings at a ceremony held on January 5 at the head office.

Good morning, everyone, and a Happy New Year!

The COVID-19 pandemic is still not over, but I am delighted to start the new year with all of you in the NYK Group worldwide.

First, let me explain the financial situation of the Group. As announced in November last year, we expect both consolidated recurring profit and net profit to exceed one trillion yen for the full year of fiscal 2022, breaking the previous year’s record high. Ocean Network Express Pte. Ltd. (ONE), Yusen Logistics Co., Ltd., Nippon Cargo Airlines Co., Ltd., and other businesses, such as bulk shipping, have secured significant revenue. This achievement is thanks to all Group staff’s daily efforts, and I want to express my respect and gratitude to all of you. Let’s continue to do our best to achieve the announced figures or even better.

Global trends in 2023 will differ from those of the past two years. The prolonged impact of COVID-19, soaring energy prices, inflation worldwide, and the following monetary squeeze triggered by the Russia-Ukraine conflict are causing concern about an economic recession. With consumer spending slumping in Europe and other parts of the world, ONE, a major driver of earnings, is facing a tidal wave in its business environment. I predict the NYK Group as a whole will face a challenging year.

However, you don’t need to be too pessimistic. We have long anticipated that the strong tailwind would not last long and prepared as many countermeasures as possible over the past two years. Specifically, we have implemented structural reforms in the dry bulk business, cost reductions in various areas, and other measures to dispel concerns about the future. The situation will change drastically, but if we continue to fulfill our roles, we can achieve positive results.

In March of this year, we will announce a new medium-term management plan that will begin from fiscal 2023, and the management team is in the final phase of discussions. The plan has two critical points. First, we must progress our ESG management further under the plan. As I have said repeatedly, society is demanding companies that promote ESG activities, and the NYK Group must meet people’s expectations and earn their trust, thereby enhancing its corporate value.

In terms of E (Environment), we need to upgrade our actions toward decarbonization. Last year, the Group’s GHG emissions unfortunately increased due to the various impacts of COVID-19. NYK has announced its target of net-zero emissions by 2050, so we must be aware of our responsibility to society and take every possible measure to achieve this goal. Let’s work together to promote decarbonization.
For S (Society), we conducted human rights projects and a group engagement survey for the first time at the end of last year. Based on the results, we aim to create a corporate culture in which NYK Group staff can improve themselves by expressing their opinions in vertical, horizontal, and diagonal relationships, as well as a work environment where each staff can work with vitality.
Regarding G (Governance), we will continue to develop a system for appropriate management decisions to enhance corporate value. We also take past scandals seriously and recognize that strengthening internal controls is essential.
The ESG matters I have just mentioned concern each of you. As we begin the new year, please take the opportunity to consider what you can do for ESG and what we should try as an organization.

The other point is capital policy, which overlaps with the first point, the promotion of ESG management. On the back of the Group’s dramatically improved financial position, we must consider which areas we will inject capital. We should use this excellent opportunity for aggressive investment to make the NYK Group more resilient now and in the future. For example, investments in renewal; the environment-related business; new business of offshore wind power; next-generation revenue sources, such as autonomous ship operation; the logistics industry, where further growth is expected; securing the quality and quantity of human resources; and offensive and defensive DX strategies. Furthermore, we need a robust capital policy emphasizing profit returns to our shareholders. We will demonstrate all this in the new medium-term management plan.

Finally, I hope each of you will play an active role on the big stage, the NYK Group, in 2023. I wish all who work on the front lines at sea, land, and air, and those who support you and your families, health, safety, and happiness. Thank you very much for your kind attention.