The Propeller Club, Port of Basel Jeremy Nixon Managing Director NYK Group Europe Ltd 10 th March 2009

NYK Group – Liner History History of NYK Group

NYK Group History 1885 Nippon Yusen Kaisha (NYK), NYK begins trading 1 st October with 58 steamships st Asia-Europe liner service 1945 Fleet of 37 vessels remain, only 1 ocean going 1968 HAKONE MARU, 1st fully containerised vessel 1969 TOYOTA MARU No. 5 – NYK’s 1st car vessel 1970 JINTSU MARU – NYK’s 1st pure car carrier (PCC) 2005 New medium-term management plan, "New Horizon 2007," released

NYK Group Europe History The Trio Service is inaugurated on schedule - NYK's m.v. "Kamakura Maru" sails from Japan in December Following the Trio Consortium, the 'Mediterranean Far East Consortium' (or Med Club) is established to containerise this trade, comprising Lloyd Triestino, Messagerie Maritime, Chargeurs Reunie, NYK and MOL. The Med Club serves from Barcelona, Marseilles, Genoa and Trieste to/from Singapore Taiwan, Hong Kong, Japan and South Korea First Intra-European trade begins - the North West Europe-Portugal service Creation of NYK Own agencies within Europe, starting with UK, quickly followed by Benelux and Germany and later some Scandinavian countries. 1990's - Emergence of the MegaCarrier competitors. Introduction of the FEFC new tariff NT NYK's Liner, RORO and Logistics companies in Europe merge to form NYK Group Europe Ltd.

The Change And The Challenge NYK’s History of growing and changing as a shipping line １９６８ Container Ship １９６２ Tanker １９６０ Ore Bulk Carrier １９７４ PCC １９８３ LNG Carrier １９９０ Resumption in Cruise 1960 Withdrawal from Passenger Ship Service “Cargo Liner Company” to “All Round Marine Transportation Company” Rebuilding after wartime damage Hakone Maru – California Service After WW II ships 2005 – 650 ships 2010 – 880 ships

NYK Group Worldwide service network 51,000 employees 240 owned offices 120+ years of service 320 logistics centres 1.9million m 2 warehousing Global supply chain management Integrated business units for all modes of transport: Air, Land & Sea Group revenue $23.9Bn Group revenue $27Bn (forecast) Group assets $18.1Bn NYK Group Website –

NYK Group Mission Statement Through safe and dependable monohakobi (transport), we contribute to the betterment of societies throughout the world as a comprehensive global-logistics enterprise offering ocean, land, and air transportation. Together with Our Customers Through the use of our extensive skill and expertise and by considering each business site to be of utmost importance, we always work to create new value so that our customers will consider us a trusted and reliable partner. Together with Our Shareholders and Investors We aim to enhance our corporate value by being financially responsible and by conducting business activities in an open, honest, and transparent fashion. Together with Society As a good corporate citizen, we positively take on the tough issues that challenge our society, such as concerns involving the preservation of our natural environment, as we work for the betterment of the world that we inhabit. Together with All Staff Members in the NYK Group As a global enterprise that has the utmost respect for diversity in the workplace and the spirit of challenge, we emphasize the development of employee talents so that all staff members can take pride in their work and eventually fulfill their dreams.

Liner (Container)No.84.2% share (Top 5 carriers make up 45% of global vessel fleet) – (No.1 Carrier = 15 %) Ro/Ro (Car Carrier)No.117.3% share (Top 5 carriers make up 85% of global vessel fleet) – (No.2 Carrier = %) BulkNo.312% share (Top 5 carriers make 69% of Global vessel dwt – (No.1 Carrier = 25 %) TankerNo.310% share (Top 5 carriers make 63% of Global vessel dwt - (No.1 Carrier = 20 %) LNGNo.57.2% share (Top 5 carriers make 73% of Global vessel cbm - (No.1 Carrier = 38 %) Cruise World’s best large-ship Cruise Line (Condé Nast Traveler magazine ) (Travel + Leisure Magazine ) (Highest rating – Berlitz Ocean Cruising & Cruise ships 2004) NYK Global Ranking

NYK Group Portfolio Group Revenue $18.61 Bn $23.29 Bn $27 Bn (forecast)

NYK Global Liner service network

About NYK Liner NYK Liner Services Global Coverage with a Global office network – 144 offices Door to Door capability Premium service/reliability focus Member of the Grand Alliance – one of the worlds largest shipping networks. Grand Alliance founded in 1998 NYK Fleet of 155 container ships Key partnerships with OOCL, Hapag Lloyd and MISC ‘TSK’ intra Asia brand Investment in own terminals Global System – OSCAR introduced in 2006.

Environmental Policy ISO Accreditation. Global 100 Most Sustainable Corporations. FTSE 4 Good Index. Dow Jones Sustainability World Index. Clean Cargo Working Group. Winners of Green Apple Award in 2006 and Supported by the Environment Agency.

Management - NYK Cool Earth Project Started in April 2008 Investment in environmental technology and sustainability

Innovation - Solar Power (Auriga Leader) NYK and Nippon Oil Joint Project World-first Energy Output: 40 kilowatts Aims: Test Purposes The system will be connected to a 440V electrical network with the aim of utilizing the solar power generation system for ship propulsion in the future. Launched December 19th 2008

Asia/Europe Market Size : 16.8 m teu in 2008 Unbalanced : w/b 12.2m teu (73%), e/b 4.6m teu (27%) Regional Split : N.EUR (66%), MED/BS (34%) > Negative trade growth !!! (Q1 market is 20% to 30% down) Weekly Loop Services : 60 in Q2/08 has fallen to 47 in Q1/09 ! (NYK has moved from 10 to 8 sailings p/w)

Global Liner Health Check Over 10% of world fleet is idle and growing rapidly ! Jan 5 th 09 : 210 vessels; 550,000 teu Mar 2 nd 09 : 453 vessels; 1,350,000 teu Global container fleet : 12.2m (1 st Feb) -> 13.8m (+13.4% p/a) Global container demand : ‘+3% p/a in 2009’ (highly optimistic) Ceased Trading : Senator Line, New Econ Line, Great Ocean Line Collective industry loss of $32 Bn in 2009 ?

Thank you!