Nabtesco (6268) investor relations material

Business overview and technological evolution

• Established a leading position in marine control systems, evolving from pneumatic to digital and autonomous navigation technologies since 1950.

• Operates a global network with R&D, production, and after-sales service centered at the Seishin Plant in Japan, and additional bases in China, South Korea, Europe, India, and Singapore.

• Holds about 40% global market share in remote control systems for main engines on large vessels, with core products including remote control systems, hydraulic valves, and electronic governors.

• Business model leverages in-house development, inspection, certification, and MRO to create entry barriers and stable, high-margin revenue.

• Fiscal 2026 sales are projected to reach a record 31.2 billion yen, driven by strong new shipbuilding and after-sales service growth.

Market environment and trends

• Global new shipbuilding demand is forecast to grow at a 2.4% annual rate, reaching about 110 million gross tons by 2050, with a shift toward alternative fuels like ammonia, hydrogen, and methanol.

• Japan, China, and South Korea are prioritizing decarbonization, autonomous navigation, and expanding shipbuilding capacity through national policies and public investment.

• Industry faces challenges from stricter environmental regulations, crew shortages, and the need for fleet renewal, all driving demand for advanced marine equipment and automation.

Growth strategy and future developments

• Growth strategy focuses on increasing unit price per vessel through advanced, high-value products for alternative fuel ships and expanding business scope into autonomous operation solutions.

• Alternative fuel shift is expected to boost both demand and unit prices, with new products tailored for ammonia, hydrogen, and methanol compatibility.

• Autonomous operation initiatives include participation in the MEGURI 2040 project, joint development with partners, and commercialization of AI-optimized navigation tools and retrofittable control systems.

• The Telegraph Nexus integrates AI navigation with main engine control, enabling semi-automated operation, fuel efficiency, and GHG reduction, and can be retrofitted to existing vessels.

• Sustained growth is underpinned by high market share, entry barriers, expanding newbuild demand, and recurring MRO and digital service revenues.