Fiscal Highlights for the 2nd Quarter, ended September 30, 2017（PDF:741 KB）

October 31, 2017

(Amounts rounded down to the nearest million yen)

1. Consolidated Financial Results for the Six Months Ended September 30, 2017 (April 1, 2017 to September 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	%
   Six months ended September 30, 2017	1,064,279	14.6	12,741	-	22,012	-	6,291	-
   Six months ended September 30, 2016	928,582	-22.5	(22,472)	-	(23,616)	-	(231,812)	-

   (Note) Comprehensive income:

   Six Months ended September 30, 2017: ¥3,418 million (-%), Six Months ended September 30, 2016: ¥-272,001 million (-%)

   Profit per share	Profit per share-fully diluted
   yen	yen
   Six months ended September 30, 2017	37.30	-
   Six months ended September 30, 2016	(1,369.08)	-

   (Note) On October 1, 2017, NYK Line conducted a reverse stock split at a ratio of 10 ordinary shares to one ordinary share. Profit attributable to owners of parent per share has been calculated based on the scenario that the reverse stock split had been effective from the beginning of the previous fiscal year.

3. Consolidated Financial Position

4. Total assets	Equity	Shareholders' equity ratio
   million yen	million yen	%
   As of September 30, 2017	2,076,510	587,209	25.2
   As of March 31, 2017	2,044,183	591,936	25.6

   (Reference) Shareholders' equity: As of September 30, 2017: ¥522,533 million, As of March 31, 2017: ¥522,471 million

5. Dividends

   Date of record	Dividend per share
   	1st Quarter End	2nd Quarter 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	-	0.00
   Year ending March 31, 2018 (Forecast)	-	-	-

   (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
   Year ending March 31,2018	2,153,000	11.9	33,000	-	35,000	-	11,000	-	65.22

   (Note) Revision of forecast in this quarter: Yes

   NYK Line has conducted 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 September 30, 2017	170,055,098	As of March 31, 2017	170,055,098
    As of September 30, 2017	1,390,782	As of March 31, 2017	1,405,053
    Six months ended September 30, 2017	168,657,256	Six months ended September 30, 2016	169,320,320

17. Total issued shares (Ordinary shares)

18. Total issued shares (including treasury stock)

19. Number of treasury stock

20. Average number of shares

21. (cumulative quarterly period)

    (Note): On October 1, 2017, NYK Line conducted a reverse stock split at a ratio of 10 ordinary shares to one ordinary share. The total number of issued shares as of March 31, the number of treasury stock as of March 31, and the average number of shares as of September 30 have been calculated based on the scenario that the reverse stock split had been effective from the beginning of the previous fiscal year.

    *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 issue (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 has conducted 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

    Full fiscal year: ¥6.52

    Foreign exchange rate: (for the third and fourth quarter) ¥110/US$, (full year) ¥110.60/US$ Bunker oil prices: (for the third and fourth quarter) US$350/MT, (full year) US$335.76/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	……………	6
    (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) Consolidated Statements of Cash Flows	……………	12
    (4) Notes Regarding Consolidated Financial Statements (Notes Regarding Going Concern Assumption) (Notes in the Event of Significant Changes in Shareholders' Capital) (Additional Information) (Segment Information) (Important Subsequent Event)	…………… …………… …………… …………… …………… ……………	14 14 14 14 15 16
    3. Other Information	……………	17
    (1) Quarterly Operating Results	……………	17
    (2) Foreign Exchange Rate Information	……………	17
    (3) Balance of Interest-Bearing Debt	……………	17

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

    In the first half of the fiscal year ending March 31, 2018 (April 1, 2017, to September 30, 2017), consolidated revenues amounted to ¥1,064.2 billion, up from ¥928.5 billion in the same period of the previous fiscal year. NYK Line posted an operating profit of ¥12.7 billion compared with operating loss of ¥22.4 billion, and a recurring profit of ¥22.0 billion compared with recurring loss of ¥23.6 billion in the first half of the previous fiscal year. Likewise, profit attributable to owners of parent amounting to ¥6.2 billion, compared to a net loss of ¥231.8 billion in the same period of the previous fiscal year.

    Overview

    Conditions in the maritime shipping market were positive overall during the first half of the fiscal year under review. In the container shipping market, while the supply of tonnage remained at similarly high levels as the previous fiscal year, spot freight rates stayed mostly favorable on the back of brisk shipping traffic. In the dry bulk shipping market, although excess tonnage has yet to be fully cancelled out, market conditions improved owing to steady shipping traffic and the impact of increased imports of iron ore to China. 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 half of the current fiscal year. Consolidated revenues were up ¥135.6 billion, or 14.6%, compared with the same period of the previous fiscal year, while operating profit increased ¥35.2 billion, recurring profit increased ¥45.6 billion, and profit attributable to owners of parent jumped ¥238.1 billion year on year.

    In addition, the average exchange rate and average bunker oil prices changed in the second quarter of the current fiscal year, as follows.

    Six months ended September 30, 2016	Six months ended September 30, 2017	Change
    Average exchange rate	¥107.31/US$	¥111.20/US$	Yen down ¥3.89/US$
    Average bunker oil prices	US$215.67/MT	US$321.52/MT	Price up US$105.85/MT