Fiscal Highlights for the 1st Quarter, ended June 30, 2017（PDF:412 KB）

July 31, 2017

(Amounts rounded down to the nearest million yen)

1. Consolidated Financial Results for the Three Months Ended June 30, 2017 (April 1, 2017 to June 30, 2017)
2. Consolidated Operating Results (Percentage figures show year on year changes)

   Revenues		Operating profit		Recurring profit		Profit attributable to owners of parent
   million yen	%	million yen	%	million yen	%	million yen	%
   Three months ended June 30, 2017	521,721	10.8	3,572	-	10,279	-	5,398	-
   Three months ended June 30, 2016	470,759	-20.0	(10,963)	-	(9,924)	-	(12,788)	-

   (Note) Comprehensive income:

   Three Months ended June 30, 2017: ¥ -2,045 million (-%), Three Months ended June 30, 2016: ¥ -46,021 million (-%)

   Profit per share	Profit per share-fully diluted
   yen	yen
   Three months ended June 30, 2017	3.20	-
   Three months ended June 30, 2016	(7.54)	-

3. Consolidated Financial Position

4. Total assets	Equity	Shareholders' equity ratio
   million yen	million yen	%
   As of June 30, 2017	2,072,290	586,507	25.0
   As of March 31, 2017	2,044,183	591,936	25.6

   (Reference) Shareholders' equity: As of June 30, 2017: ¥518,910 million, As of March 31, 2017: ¥522,471 million

5. Dividends

   Date of record	Dividend per share
   	1st Quarter End	2ndQuarter End	3rd Quarter End	Year-end	Total
   	yen	yen	yen	yen	yen
   Year ended March 31, 2017	-	0.00	-	0.00	0.00
   Year ending March 31, 2018	-
   Year ending March 31, 2018 (Forecast)	0.00	-	-	-

   (Note) Revision of forecast for dividends in this quarter: No

   At present, the year-end dividend forecast has not yet been determined.

6. Consolidated Financial Results Forecast for the Year Ending March 31, 2018 (April 1, 2017 to March 31, 2018)

   (Percentage figures show year on year changes)

   Revenues		Operating profit		Recurring profit		Profit attributable to owners of parent		Profit per share
   million yen %		million yen %		million yen %		million yen %		yen
   Cumulative second quarter ending September 30, 2017	1,053,000	13.4	8,500	-	14,500	-	1,000	-	5.93
   Year ending March 31,2018	2,112,000	9.8	21,500	-	23,000	-	5,000	-	29.65

   (Note) Revision of forecast in this quarter: Yes

   NYK Line plans to conduct the reverse stock split at a ratio of 10 ordinary shares to one ordinary share effective from October 1, 2017. The Company is taking into account the impact of this reverse stock split on profit attributable to owners of parent per share in its forecast of consolidated financial results for the fiscal year ending March 31, 2018. For details, please refer to "Assumption for the forecast of consolidated financial results and other particular issues".

7. Notes

9. Changes of important subsidiaries in the period: None

   (Changes in specified subsidiaries involving change in consolidation scope)

   New: None Exclusion: None

10. Particular accounting methods used for preparation of quarterly consolidated financial statements: None

11. Changes in accounting policy, changes in accounting estimates, and restatements

12. Changes in accounting policy in accordance with changes in accounting standard: None

13. Changes other than No.1: None

14. Changes in accounting estimates: None

15. Restatements: None

16. As of June 30, 2017	1,700,550,988	As of March 31, 2017	1,700,550,988
    As of June 30, 2017	13,977,210	As of March 31, 2017	14,050,542
    Three months ended June 30, 2017	1,686,514,932	Three months ended June 30, 2016	1,695,873,223

17. Total issued shares (Ordinary shares)

18. Total issued shares (including treasury stock)

19. Number of treasury stock

20. Average number of shares (cumulative quarterly period)

21. (Note) From the second quarter of the previous fiscal year, NYK Line established a Board Incentive Plan Trust for remunerating directors and corporate officers. The Company's shares held in this trust are recorded under treasury stock and are excluded from calculations of the number of treasury stock shares at the end of the fiscal period and the average number of shares during the period under review.

    *Indication of quarterly review process implementation status

    This quarterly fiscal statement is exempt from the quarterly review process based upon the Financial Instruments and Exchange Act. As of the press release date, the quarterly review process is ongoing.

    *Assumption for the forecast of consolidated financial results and other particular issues (Forecast of Consolidated Financial Results Following a Reverse Stock Split)

    A resolution to conduct a reverse stock split was approved at the 130th Ordinary General Meeting of Shareholders held on June 21, 2017. Accordingly, NYK Line plans to conduct the reverse stock split at a ratio of 10 ordinary shares to one ordinary share effective from October 1, 2017. The forecast of consolidated financial results for the fiscal year ending March 31, 2018 calculated based on conditions prior to the reverse stock split is as follows.

    Forecast of consolidated financial results for the fiscal year ending March 31, 2018 Profit attributable to owners of parent per share

    Interim (cumulative total): ¥0.59 Full fiscal year: ¥2.96

    Foreign exchange rate: (for the second, third and fourth quarter) ¥110/US$, (full year) ¥110.37/US$ Bunker oil price: (for the second, third and fourth quarter) US$340/MT, (full year) US$336.68/MT

    The above forecast is based on currently available information and assumptions that NYK Line deems to be reasonable. NYK Line offers no assurance that the forecast will be realized. Actual results may differ from the forecast as a result of various factors. Refer to pages 2-7 of the attachment for assumptions and other matters related to the forecast.

    (Methods for obtaining supplementary materials and content of financial results disclosure)

    NYK Line is to hold a financial result presentation meeting for analysts and institutional investors. The on-demand audio presentation and presentation materials are available on the NYK website (http://www.nyk.com/english/release/IR_explanation.html ).

    UIndex of the Attachments

    1. Qualitative Information on Quarterly Results	……………	2
    (1) Review of Operating Results	……………	2
    (2) Explanation about Financial Position	……………	5
    (3) Explanation of Consolidated Earnings Forecast and Future Outlook	……………	6
    2. Consolidated Financial Statements	……………	8
    (1) Consolidated Balance Sheets	……………	8
    (2) Consolidated Statements of Income and Statements of Comprehensive Income	……………	10
    (3) Notes Regarding Consolidated Financial Statements (Notes Regarding Going Concern Assumption) (Notes in the Event of Significant Changes in Shareholders' Capital) (Additional Information) (Segment Information)	…………… …………… …………… …………… ……………	12 12 12 12 14
    3. Other Information	……………	15
    (1) Quarterly Operating Results	……….……	15
    (2) Foreign Exchange Rate Information	…………….	15
    (3) Balance of Interest-Bearing Debt	…………….	15

    1. Qualitative Information on Quarterly Results (1) Review of Operating Results

    In the first quarter of the fiscal year ending March 31, 2018 (April 1, 2017, to June 30, 2017), consolidated revenues amounted to ¥521.7 billion, up from ¥470.7 billion in the same period of the previous fiscal year. NYK Line posted operating profit of ¥3.5 billion compared with an operating loss of ¥10.9 billion in the first quarter of the previous fiscal year, and recurring profit of ¥10.2 billion, compared with a recurring loss of ¥9.9 billion. Likewise, profit attributable to owners of parent amounted to ¥5.3 billion, compared to a net loss of

    ¥12.7 billion in the same period of the previous fiscal year.

    Overview

    Conditions in the maritime shipping market were mixed during the first quarter under review. While shipping alliances were reorganized and total shipping capacity increased in the container shipping market, spot freight rates were mostly favorable on the back of brisk shipping traffic. Shipping traffic was also brisk in the dry bulk shipping market, however, excess tonnage was not eliminated as the scrapping of old ships was slow and new vessels were constructed. Consequently, the market recovery remained moderate. Among the Group's non-shipping businesses, the Logistics business faced a sluggish market due to persistently high cost prices, while the Air Cargo Transportation segment benefited from busy shipping traffic overall.

    Against that backdrop, results substantially improved and profits were posted during the first quarter of the current fiscal year. Consolidated revenues were up ¥50.9 billion, or 10.8%, compared with the same period of the previous fiscal year, while operating profit increased ¥14.5 billion, recurring profit increased ¥20.2 billion, and profit attributable to owners of parent jumped ¥18.1 billion year on year.

    Changes in the average exchange rate between the U.S. dollar and yen as well as the average bunker oil price during the first quarter of the current and previous fiscal years are shown in the following tables.

    Three months ended June 30, 2016	Three months ended June 30, 2017	Change
    Average exchange rate	¥111.12/US$	¥111.48/US$	Yen down ¥0.36/US$
    Average bunker oil prices	US$192.62/MT	US$326.72/MT	Price up US$134.10/MT