23.03.08NYK to Transfer NCA to ANAHD

Nippon Yusen Kaisha (NYK) signed a memorandum of understanding (MoU) with ANA Holding (ANAHD) to transfer the entire shares of Nippon Cargo Airlines (NCA), a consolidated subsidiary of NYK, to ANAHD. Subject to obtaining clearance under applicable competition laws and other conditions, the date of acquisition of NCA's shares will be Oct. 1 or a date to be separately agreed by NYK and ANAHD.

Capitalized at \10 billion (US$73.45 million), NCA was established in 1978 with the participation of several companies as an airline specializing in international cargo. NYK has been involved in the management of NCA as a major shareholder since its establishment, and in 2010, it acquired all of the entire shares. However, the continuous introduction of new aircraft to expand operations and maintenance system and the continuous training of personnel engaged in operations and maintenance require considerable expenditures. In the highly volatile business environment of airfreight transportation, NCA has been facing challenges in expanding its business scale at a level that is commensurate with such costs.

ANAHD had expressed a strong desire to add NCA, the only Japanese airline dedicated exclusively to air cargo transportation, to its business portfolio and integrated and reorganized with the cargo business of the ANA group in the future.

In fiscal 2021, NCA earned an operating profit of \74.478 billion ($547.17 million), an ordinary profit of \74.54 billion ($547.52 million) and a net profit of \61.32 billion ($450.42 million). At the end of the year, it had a net worth of minus \58.787 billion ($431.75 million).