Nyk Group Brochure

NYK BRINGING VALUE TO LIFE

Through safe and dependable monohakobi (transportation), we contribute to the betterment of societies throughout the world as a comprehensive global logistics enterprise offering ocean, land and air transportation, together with associated services.

MONOHAKOBI

OUR BACKGROUND NYK, (Nippon Yusen Kaisha), was established in 1885 and started operations from 1st October that year. From the outset, NYK was Japan's largest shipping company, and by 1896 NYK was operating a fortnightly liner service to/from Europe.

By 1904, NYK's total fleet comprised of 76 ships. Between 1915 and 1919 NYK began liner services on the westbound around-the- world, New York, New Zealand, east coast of South America, Mediterranean and Europe (Hamburg and Liverpool) trades. In 1929 the distinctive twin red stripes on a white background became the official funnel marking for NYK vessels. NYK commenced liner services to Gulf of Mexico ports in Latin America as well as Scandinavia, Madras and eastbound around-theword trades between 1934 and 1937. The outbreak of the Second World War led to the Japanese government requisitioning most of the NYK fleet and by the end of hostilities only 1 ocean going vessel remained. But by 1964, following the merger of NYK and Mitsubishi Shipping Co, the NYK Group fleet was some 87 vessels.

In 1971 NYK introduced a fully containerised service as a Trio Consortium Member, between North Europe and the Far East, with NYK’s M.V Kamakura Maru sailing from Japan to inaugurate the service. In 1991 NYK established its Logistics Management Division based in London with representative offices throughout Europe. The division is responsible for the development of land based logistics activities within Europe. The areas of activity covered include dealing with customs formalities, warehousing, distribution, plus the wide variety of ancillary services required by businesses operating in the European market. In parallel with these developments on the liner and logistics sides of the business, NYK in Europe has, over the last twenty years, much expanded its activities in the operation of car carriers, bulk carriers, tankers and reefer carriers.

For the shipping parts of NYK’s business in Europe, the replacement of third party agents by wholly owned NYK agency organisations within Europe began in 1994, starting in the UK, followed quickly by Benelux, Germany, and certain countries in Scandinavia. More recently, NYK has established its own agency companies in France, Italy and Russia. In 2007 NYK’s Liner, RORO and Logistics companies in Europe merged to form NYK Group Europe Ltd. Looking to the future, NYK plans to continue its stable investment policy built upon these historically sound foundations.

3

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

OUR COMMITMENT TO SUSTAINABILITY NYK’s medium term management plan, New Horizon 2010, is built upon the 3 key pillars of Growth, Stability and Environment. NYK continues to pioneer advanced technology and embrace world leading environmental standards

Managing our environmental impact ISO14001 is the international specification for an environmental management system. NYK is implementing this certification throughout the Group as a means to monitor operational controls and achieve our environmental targets. The NYK Cool Earth Project, launched in April 2008, directs innovation and operations control to reduce CO2 emissions across the Group. The targets set are achievable thanks to NYK’s pioneering innovation in environmental technology. Recent examples include solar generation of ship power. Ensuring safe operations NYK’s Safety & Environment Management Committee ensure ship

safety & formulate environmental protection programmes. NAV9000 is NYK’s own safety management system which enforces safety standards higher for our vessels than current industry legislation. Investing in society NYK is committed to being a responsible Corporate Citizen. Through initiatives of staff volunteering, financial support and collaboration, NYK has built relationships with environmental, educational and charity organisations that reflect the Group values. European examples include a two year project with a University to develop marine-themed teaching resources for schoolchildren and support for IMARES, a marine research centre analysing the effects of marine litter in the North Sea.

For the last three years NYK has been included as one of the Global 100 Most Sustainable Corporations in the World. The Global 100 is an annual research and ratings project conducted jointly by Innovest Strategic Value Advisors Inc. and Corporate Knights Inc. Other similar memberships include the Dow Jones Sustainability World Index, and the FTSE4Good Global Index. Whilst this recognition is encouraging, as a globally responsible transportation company NYK will strive to constantly improve our environmental impact.

5

Whether you’re a manufacturer, a third party logistics provider, a freight forwarder, or a private individual shipping your personal goods overseas, NYK can cover every aspect of your transportation needs.

A GLOBAL LEADER

OUR INTERNATIONAL ROLL-ON ROLL-OFF FLEET NYK’s worldwide fleet of purpose-built RORO vessels meets the needs of the high and heavy plant machinery and car industries. We have built a trusted and reliable customer service dedicated to long term business relationships across every key automotive production region in the world. As our customers’ global markets continue to evolve; NYK ensures its services match these needs. As part of NYK’s commitment to our customers, NYK also offers a host of value added services, including delivery to dealers, loading, pre-delivery inspection, vehicle storage, trucking, brokerage and customs clearance. NYK provides services that meet the needs of all our customers by offering transportation for all types of vehicles from cars, plant equipment and agricultural equipment to specialist cargo such as boilers, transformers and yachts. We can also accommodate and load certain static cargos onto our versatile vessels. Decks and ramps are engineered with strength to handle heavy duty vehicles. They are capable of carrying cargo up to 200 tonnes in weight and the main deck heights on our Leader class vessels exceed 6.2 metres.

NYK moves around 3 million cars worldwide each year, and the advanced design of NYK’s RORO vessels enables the loading process to proceed like clockwork. The new generation of NYK RORO vessels is highly flexible and allows us to carry up to 6,500 standard cars per voyage. On many vessels 100% of deck space is suitable for cars over the standard height, and as we place great emphasis on the care of our customers’ products, damage prevention is always a high priority. Our technical teams continually monitor and improve handling procedures in ports as well as on board our vessels.

NYK provides efficient integrated solutions for Completely Built Up (CBU) logistics, combining ocean transportation with PreDelivery Inspection (PDI) processing and final dealer delivery. We provide a single window for handling the entire outbound automotive industry supply chain, from vehicle collection at the point of manufacture, to final car delivery at the dealers. NYK’s automotive logistics supply chain covers full global procurement.

7

Through the use of our extensive skill and expertise and by considering each business site to be of the utmost importance, we always work to create new value so that our customers will consider us a trusted and reliable partner.

TOGETHER WITH OUR CUSTOMERS

OUR OCEAN LINER NETWORK NYK operates over 100 container ships worldwide offering services linking Europe to Asia, North America, Latin America, Australia and Africa. In addition it operates Transpacific services as well as services that operate within Asia and most other parts of the world.

Utilising this large scale transportation network, the NYK Group has continued to expand its shipping capacity, and the number of ports of call, in order to further increase the comprehensive strength of the NYK Group. When we work, we want to be near our customer and near our customer’s business – being “on site” or “Gemba”. With over 35 offices across Europe, our sales teams combine their local expertise with the backing of a globally dedicated carrier. NYK continues to invest in leading Information Technology creating an integrated worldwide transport management system, offering complete end to end shipment visibility and enabling more accurate and real-time

sharing of information. This, coupled with a streamlined business process, is geared towards providing an exemplary and satisfying experience for our customers. NYK offers an extensive range of eCommerce tools to exchange shipment data and which further streamline and improve customer service. Our software supports the total shipment process and a suite of customer definable products are available via www.nykline.com. These provide visibility within the process and the ability to closely monitor and manage your own supply chain. The combination of technology and knowledgeable, dedicated and readily available staff affords a top quality customer service product.

NYK’s dedication to improving its services continues with our commitment to safety. NYK has adopted industry leading navigation standards across our global fleet to ensure the safe and dependable delivery of our customers’ cargo. Additionally, as a globally dedicated transportation provider, the NYK Group offers not just a port to port shipment, but fully integrated supply chain management for container movements across the world. NYK prides itself on being a quality carrier. For over 120 years we have safely delivered our customers’ cargo around the world. We’re looking forward to the next 120.

9

NYK PROVIDES COMPLETE SOLUTIONS FOR MARINE, LAND, AND AIR TRANSPORT

Our skill set and substantial resources portfolio underpin our ability to provide supply chain solutions that are responsive to customer needs and adaptable in the face of change.

OUR LOGISTICS SERVICES NYK offers warehousing, distribution and supply chain management services on an international basis. We work with manufacturers and retailers across a wide range of market sectors, providing solutions which range from stand alone national distribution operations to global supply chains. Every supply chain profile has unique characteristics that need to be considered when putting together a robust and cost effective solution. We pride ourselves on our fresh approach and expertise in developing practical solutions, which are well executed by skilled people. A dedicated team with the best mix of people for the job – logistics analysts, industry specialists and experienced operators will take the project from initial data analysis through solution design, planning and resourcing, in close liaison with the client at every step. Structured project management ensures smooth implementations delivered on time. NYK provides innovative supply chain solutions resulting in better performance and cost saving for customers. NYK solutions are tailored according to the individual requirements of each client, with access to information systems, warehousing and multi-modal transport options, both in-house and across a

portfolio of strategic partners. We are building upon our established infrastructure, rolling out networks to serve supplier bases in emerging markets to mirror clients’ changing sourcing patterns. We pride ourselves on our high levels of integration into our customers’ processes as the Lead Logistics Partner for many types of company, but with specialist experience in the pharmaceutical, retail, automotive and consumer electronics sectors. Ongoing continuous improvement programmes provide a clear focus and incentive for cost reduction and service improvement initiatives. As such, NYK is investing in information systems as the key enabler for flexibility, control and communication across today's lengthy and complex supply chains. We manage cross-border and crosscontinent product flows, providing timesensitive deliveries on an international basis. Global tracking gives visibility, enabling control of the most complex supply chains. Solutions may involve

complex inter-country movements between production sites, managing products with extreme demand peaks and providing solutions to inbound and internal supply chains in a lean manufacturing or assembly context. Using our global reach we can ensure timely flows of raw materials, components and finished products, regardless of where they are sourced, as they move through the supply chain.

11

HEADING FOR NEW HORIZONS

As a global enterprise that has the utmost respect for diversity in the work place and the spirit of challenge, we emphasise the development of employee talents so that all staff members can take pride in their work and eventually fulfil their dreams.

OUR BRIDGES ACROSS THE SKY NCA was established in 1978 in Japan, pioneering the industry of international cargo aviation. It has operated flights from Europe to Japan and Asia for more than 20 years. Safety has always been our top priority, and at NCA we ensure that safe operations are always practised. We can proudly state that in over 30 years of operations there has never been a major accident within NCA. We believe that customer satisfaction is important. We continually strive to enhance the performance of our transportation, both the standard of our flight operations and our freight service levels. Additionally, we believe that we have a duty to minimize our effect on the environment. As such, we operate not only the most ecologically friendly fleet, but we are continuing to make the environment an integrated part of our daily business. We have the first ECO hangar in Narita, which provides an ECO friendly environment for our aircraft maintenance, and also in our training centre we operate an ECO friendly simulator.

NCA operates an extended network from Europe to Asia, with Japan as the first destination. As well as this, we also operate flights to and from Asia and Japan from the USA. We operate a fleet of B747’s-400’s, and are the lead customer for the new B747-8’s, with fourteen on order. Our modern fleet (average age around 2 years in 2009) achieves practically 100% on time performance. This together with individual aircraft payload capabilities of 110 tonnes and nose-door loading facility ensures NCA's premium service and typifies the dedication to quality, common throughout the whole NYK Group.

13

We aim to enhance our corporate value by being financially responsible and by conducting business activities in an open, honest and transparent fashion.

OUR CORE VALUES

Integrity

Innovation

Intensity

Be respectful and considerate to your customers and colleagues. Stay warm, cordial, courteous and caring.

Continually think of new ideas for improvement, even when conditions appear satisfactory. Remain open to betterment.

Carry through with and accomplish your tasks. Never give up. Overcome challenges. Remain motivated.

PLEASE CONTACT US

Global Head Office NIPPON YUSEN KAISHA 3-2 Marunouchi 2-Chome Chiyoda-ku, Tokyo 100 Japan Tel: +81 3 3284 5151 Fax: +81 3 3284 6361 European & UK Head Office NYK GROUP EUROPE LTD CityPoint, 1 Ropemaker Street London EC2Y 9NY Tel: +44 (0)20 7090 2000 Fax: +44 (0)20 7090 2100

04/2009