[Company analysis] Nippon Yusen K.K. (日本郵船)

「Nippon Yusen K.K. (日本郵船)」is one of the three Japanese major shipping companies(「Nippon Yusen K.K.(日本郵船)」,「Kawasaki Kisen Kaisha, Ltd.(川崎汽船)」and「Mitsui O.S.K. Lines, Ltd.(商船三井)」). Together with「Mitsubishi Heavy Industries(三菱重工業)」, it is the origin of the Mitsubishi Group. Their English, "Nippon Yusen Kaisha" is internationally known as "NYK". By the way,「NYK」has a similar name to「Japan Post Holdings Co., Ltd.(日本郵政)」, but there is no direct connection. The number of consolidated employees is approximately 35,711.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Nippon Yusen K.K.
Company name (Japanese)	日本郵船
Date of establishment	September 29, 1885
Headquarters location	〒100-0005 東京都千代田区丸の内二丁目3番2号
Capital	144,319
Consolidated sales	1,829,300
Consolidated operating profit	11,085
Consolidated total assets	2,001,704
Consolidated capital	521,725
Capital adequacy ratio	26.1%
Consolidated number of employees	35,711

 

 

 

2. Summary and Features

 
First, the state-owned company「日本国郵便蒸気船会社(Nippon Yubin Jokisen Kaisha)」and「三菱商会(Mitsubishi Shokai)」conducted business integration and, the「郵便汽船三菱会社(Yubinkisen Mitsubishi Kaisha)」was established. After that, they compete with another state-owned company,「共同運輸会社(Kyodo Unyu Kaisha)」, which was Mitsui's affiliated company.  In order to prevent growth stagnation caused by price competition between both companies,「Nippon Yusen(日本郵船)」was established according to the government intervention.

 

Then, less than 10 years later, they open routes to most major cities in the world. Even today,「NYK」operates 383 vessels at more than 350 ports in Japan and abroad. It is one of the world's top class shipping companies, in terms of the number of operating vessels and consolidated net sales,「NYK」is no.1 in Japan. As for the net income, they are No.2 after「Mitsui O.S.K. Lines, Ltd.(商船三井)」.

In February 2006,「Maersk」merged with the Dutch shipping company「P&O Nedlloyd Container」, which has the third largest share in the world, and achieve the title of world's largest shipping company in consolidated sales. By this event,「NYK」became second only in the world. In fact,「Nippon Yusen」can be said to be a company that represents Japan's shipping industry and has a higher profile overseas than in Japan.

 

However, because the world shipping business itself is easily affected by the global economic situation. In order to secure stable profit,「NYK」decided to conduct business diversification strategy and reduce its shipping business to about 65% of total sales.  Their overland transportation is carried out through「Yusen Logistics Co., Ltd.(郵船物流)」and air transportation is carried out through「Nippon Cargo Airlines Co., Ltd.,(日本貨物航空)」, and now it is a comprehensive logistics company.

 

 

3. Major Business

 

■ Dedicated carrier business
They are currently implementing terminal-related businesses that develop container terminals and container terminals that mainly transport consumer goods.

■ Air transportation business
Through their subsidiary,「Nippon Cargo Airlines」, they carry out international air freight forwarding business in North America, Europe, and Asia that arrives and departs in Japan.

■ Logistics business
Utilizing the network that connects NYK's global bases, they provide comprehensive services that cover the entire logistics process, from warehousing and transportation to ocean and air forwarding.

■ Non-dedicated carrier business
They carry out non-scheduled vessels, automobile transportation, dry bulk transportation, energy transportation, etc.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		1,923,881	2,183,201	1,829,300
Consolidated operating profit		-18,078	27,824	11,085
Consolidated total assets		2,044,183	2,071,972	2,001,704
Consolidated net assets		591,936	588,255	521,725
Breakdown of sales	Dedicated carrier business	572,883	676,818	277,998
	Air transportation business	75,997	92,184	53,112
	Logistics business	457,935	508,005	523,621
	Non-dedicated carrier business	716,840	794,894	839,624
	Real estate business	8,147	6,814	6,405
	Others	92,078	104,483	128,537