Nippon Yusen Kabushiki Kaisha (9101) Investor update summary

Regulatory and industry context

• International shipping targets net-zero GHG emissions by 2050, with interim CO2 reduction goals of 20-30% by 2030 and 70-80% by 2040, and is subject to evolving global and regional regulations and emission pricing systems, though some adoption has been postponed.

• Regional regulations like EU ETS and FuelEU Maritime are advancing, but a globally consistent framework is seen as essential for effective decarbonization.

Ammonia as a next-generation marine fuel

• Ammonia is prioritized for its zero CO2 emissions, scalability, affordability, and strong public sector support, with projections it could account for 44% of marine fuel by 2050.

• Clean ammonia, including blue and e-ammonia, offers significant GHG reduction potential and is expected to become increasingly cost-competitive.

• Multiple fuel pathways are being pursued, including LNG, methanol, hydrogen, and especially ammonia, due to its carbon-free nature and scalability.

Strategic roadmap and value chain development

• The company aims to secure a significant share of the ammonia shipping market and is developing a full value chain from production to bunkering, leveraging LNG experience and expanding infrastructure and partnerships.

• Multiple alternative fuels will be used concurrently, with a primary shift to ammonia-fueled vessels by 2050, supported by R&D, early adoption, and operational experience.