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Financial results for FY2018 Q3
Financial SummaryNov. 13, 2018
NIKKISO CO., LTD.Securities code: 6376
Disclaimer
This material contains forward-looking statements about future business performance. These statements by definition involve risks and uncertainties and are not intended to guarantee future performance. Actual results in the future may differ from the
estimates presented in the material herein due to changes in the business environment and other factors.
Copyright © 2018 NIKKISO CO., LTD. All rights reserved. 2
Financial results for FY2018 Q3
News Topic
Growing LNG demand in China and other Asian countries is driving up inquiries about
cryogenic pumps
Decided to construct test facilities at the Miyazaki Plant to increase production capacity
✓ Performance test facilities to be constructed at the Miyazaki Plant, slated to go on line in 2020
✓ Will enable us to offer performance testing using LNG or LPG at facilities in Las Vegas, U.S. or
Miyazaki, Japan and respond quickly to the needs of customers in China and other parts of Asia
✓ Total amount to be invested in the test facilities is approx. 4 billion yen
Cryogenic pump test facilities (Las Vegas USA)
Aerospace factory
Cryogenic pump factory
Land reserved for
future expansion
AdministrationCascade building
Composit building
Test
facilities
◆ Aerospace factory completed in October 2018
(Administrative building and cascade building completed at the end
of September; composite building to be completed in December)
◆ Cryogenic pump performance test facilities to be completed in 2020
Copyright © 2018 NIKKISO CO., LTD. All rights reserved. 3
Financial results for FY2018 Q3
Consolidated Performance
Millions of JPY
FY2017 Q3
Jan.2017 – Sep. 2017
FY2018 Q3
Jan. 2018 – Sep. 2018
YoY comparison
Change Change rate
Orders 99,016 122,745 +23,728 +24.0%
Revenue 97,199 115,437 +18,237 +18.8%
Operating profit 4,972 6,308 +1,335 +26.9%
Operating margin 5.1% 5.5%
Profit before tax 4,311 6,175 +1,863 +43.2%
Pretax profit margin 4.4% 5.3%
Profit for the yearattributable to owners of the company
2,535 4,296 +1,760 +69.5%
Profit marginattributable to owners of the company
2.6% 3.7%
Average foreign exchange rate
Against the US dollar (Yen) 111.89 109.60 △2.29 -
Against the euro (Yen) 124.58 130.87 +6.29 -
Copyright © 2018 NIKKISO CO., LTD. All rights reserved.
FY2017 Q3
Jan.2017 – Sep. 2017
FY2018 Q3
Jan. 2018 – Sep. 2018 Change Remarks
Gross profit 33,573 40,437 +6,863
- Selling, general and administrative expenses △30,482 △34,536 △4,053 Increase due to joining of CI Group
- Other income 2,020 493 △1,527Absence of proceeds from sale of assets
owned, etc.
- Other expenses △138 △85 +53
Operating profit 4,972 6,308 +1,335
- Financial income 397 524 +126
- Financial costs △1,180 △829 +351Increase in interest expenses(△194)
Decrease in foreign exchange loss due to
the depreciation of the yen(+584)
- Share of profit of associates and joint ventures accounted for using the equity method
121 171 +50
Profit before tax 4,311 6,175 +1,863
Exchange rate for the conversion of the performance of overseas subsidiaries
- Against the US dollar (Yen) 111.89 109.60 △2.29
- Against the euro (Yen) 124.58 130.87 +6.294
Financial results for FY2018 Q3
Breakdown of Profit/Loss
Millions of JPY
Copyright © 2018 NIKKISO CO., LTD. All rights reserved.
FY2017 Q3
Jan.2017 – Sep. 2017
FY2018 Q3
Jan. 2018 – Sep. 2018
YoY comparison
Change Change rate
Industrial Business
Orders 58,818 79,997 +21,178 +36.0%
Revenue 57,600 72,703 +15,103 +26.2%
Operating profit 4,288 5,6827.8%
+1,393 +32.5%
Operating margin 7.4%
Industrial DivisionOrders 39,724 58,634 +18,910 +47.6%
Revenue 39,272 53,337 +14,064 +35.8%
Precision Equipment
Division
Orders 7,604 9,368 +1,763 +23.2%
Revenue 6,868 7,343 +475 +6.9%
Aerospace DivisionOrders 11,378 11,912 +533 +4.7%
Revenue 11,348 11,929 +580 +5.1%
Medical Business
Orders 40,197 42,747 +2,549 +6.3%
Revenue 39,599 42,734 +3,134 +7.9%
Operating profit 2,580 3,2337.6%
+653 +25.3%
Operating margin 6.5%
Corporate expenses, etc. Operating profit △1,896 △2,607 △711 -
5
Financial results for FY2018 Q3
Performance by Business Segment
Millions of JPY
Copyright © 2018 NIKKISO CO., LTD. All rights reserved. 6
Financial results for FY2018 Q3
Industrial Division
FY2017 Q3Jan.2017 – Sep. 2017
FY2018 Q3Jan. 2018 – Sep. 2018 YoY comparison
Change Change rate
Orders 39,724 58,634 +18,910 +47.6%
Revenue 39,272 53,337 +14,064 +35.8%
1. Overview
2. Consolidated performance 3. Revenue Composition ratio by Product
Millions of JPY
✓ The booming cryogenic pump business kept the Industrial Division’s overall performance up, leading to higher
revenue and profit.
✓ We are seeing orders climb at LEWA and the Cryogenic Industries (CI) Group against the backdrop of a moderate
capital expenditure recovery in the oil industry as well as an expanding natural gas market fueled by the increasing use of natural gas for ships, etc.
✓ We decided to build cryogenic pump performance test facilities at the Miyazaki Plant in anticipation of further
LNG market growth mainly in Asia.
往復動ポンプ
キャンドモータポンプ
クライオジェニックポンプ
その他
Geveke
CI グループ
Reciprocating pump
Canned motor pump
Cryogenics pump
CI Group
Others
40%
7%19%
7%
23%
4%
FY2018
Q3
Copyright © 2018 NIKKISO CO., LTD. All rights reserved.
2017 YTD 2018 YTD
7
195 194 204
220 236 232
51
105
151
200
58
132
197 211
148
189
217 217 224
219
46
107
170
236
46
94
153
217
1727 30 31 28
21
3 918
28
1 411 17
98 103 91 95
107 120 125
119
101
84
106
133 138
-200
-150
-100
-50
0
50
100
150
0
50
100
150
200
250
300
350
11 12 13 14 15 16 Q1 Q2 Q3 Q4 Q12 Q23 Q34 Q45 18計画
受注高(左軸) 売上収益(左軸) EBITDA(左軸) 受注残高(右軸)
18(Forecast)Q1 Q4Q3Q2
Orders (Left axis) Revenue (Left axis) EBITDA (Left axis) Orders backlog (Right axis)Millions of €
Financial results for FY2018 Q3
Performance trend of LEWA
Copyright © 2018 NIKKISO CO., LTD. All rights reserved.
310 13 18
0 2
2030
10
20
30
41
12
30
43
45
18
35
48
65
15
34
50
73
49 11 14
15
1116
0
50
100
0
50
100
150
FY2017 Q1 FY2017 Q2 FY2017 Q3 FY2017 Q4 FY2018 Q1 FY2018 Q2 FY2018 Q3 FY2018 Q4(計
画)
百万
ACD 売上収益(左軸) Cryoquip 売上収益(左軸) Cosmodyne 売上収益(左軸) EBITDA(右軸)
8
31
65
124
28
67
148
92
113
Financial results for FY2018 Q3
Performance trend of Cryogenic Industries Group
Revenue (Left axis) Revenue (Left axis) Revenue (Left axis) (Right axis)
Millions of $
FY2018 Q4 (Forecast)
FY2017 ※unaudited FY2018
Copyright © 2018 NIKKISO CO., LTD. All rights reserved. 9
Financial results for FY2018 Q3
Precision Equipment Division
水質調整システム
ファインセラミック
その他
粉体計測
1. Overview
Millions of JPY
✓ Increasing automotive applications spurred investments in the electronic component manufacturing industry. This significantly boosted orders for our new warm isostatic laminator, and we are currently bolstering our production and supply capability.
✓ In the power plant business, inquiries about water-conditioning systems for the Southeast Asian market were on the rise, and we are currently making marketing efforts to secure orders.
2. Consolidated performance 3. Revenue Composition ratio by Product
FY2017 Q3Jan.2017 – Sep. 2017
FY2018 Q3Jan. 2018 – Sep. 2018 YoY comparison
Change Change rate
Orders 7,604 9,368 +1,763 +23.2%
Revenue 6,868 7,343 +475 +6.9%
Water conditioning system
Precision equipment
Fine ceramics
Others
28%
43%
23%
6%
FY2018
Q3
Copyright © 2018 NIKKISO CO., LTD. All rights reserved.
FY2017 Q3Jan.2017 – Sep. 2017
FY2018 Q3Jan. 2018 – Sep. 2018 YoY comparison
Change Change rate
Orders 11,378 11,912 +533 +4.7%
Revenue 11,348 11,929 +580 +5.1%
10
Financial results for FY2018 Q3
Aerospace Division
1. Overview
2. Consolidated performance 3. Revenue Composition ratio by Product
Millions of JPY
✓ The shipment volume increased year on year as cascade demand gradually picked up.Revenue increased year on year as shipments of items produced at the first plant in Hanoi, Vietnam remained steady.
✓ Operating profit remained at last year’s level as expenses incurred in advance for the Miyazaki Plant were offset by cost cuts made through in-house production of some parts and getting production of engine parts into full gear at the Higashimurayama Plant and thus stabilizing shipments.
カスケード
翼部品
その他
エンジン部品
ナセル部品
Cascade
Nacelle parts
Wing parts
Jet engine parts
Others
44%
15%
25%
12%
4%
FY2018
Q3
Copyright © 2018 NIKKISO CO., LTD. All rights reserved.
FY2017 Q3Jan.2017 – Sep. 2017
FY2018 Q3Jan. 2018 – Sep. 2018 YoY comparison
Change Change rate
Orders 40,197 42,747 +2,549 +6.3%
Revenue 39,599 42,734 +3,134 +7.9%
11
(Japan) Dialysis machines
(Overseas) Dialysis machines
(Japan) Disposable
(Overseas) Disposable
Maintenance
CRRT
Others
Financial results for FY2018 Q3
Medical Division
2. Consolidated performance 3. Revenue Composition ratio by Product
1. Overview
Millions of JPY
✓ The hemodialysis business saw overall sales of blood tubing lines and other disposables increase as demand for dialysis machines stayed on track for recovery in the domestic market. In the overseas market, sales of knock-down kits for Chinese market kept revenue and profit up for the entire hemodialysis business.
✓ In the CRRT business, one-time expenses incurred for reorganizing R&D, etc. as well as underperforming business locations in Europe and elsewhere put a damper on operating profit despite an increase in revenue due to successful measures such as the reorganization of the Chinese sales force.
14%
13%
31%
3%
11%
9%
19%
FY2018
Q3
Copyright © 2018 NIKKISO CO., LTD. All rights reserved.
Financial forecast for FY2018
Consolidated Performance
12
Millions of JPYFY2017
Actual record
FY2018
Performance forecast
YoY comparison
Change Change rate
Orders 140,412 162,000 +21,587 +15.4%
Revenue 140,912 162,000 +21,087 +15.0%
Operating profit 8,718 10,000 +1,281 +14.7%
Operating margin 6.2% 6.2%
Profit before tax 8,310 9,000 +689 +8.3%
Pretax profit margin 5.9% 5.6%
attributable to owners of the company
Profit for the year 5,182 5,900 +717 +13.8%
Profit margin attributable to owners of the company
3.7% 3.6%
Average/Forecast
Against the US dollar (Yen)Against the euro (Yen)
112.16
126.70
108.00
132.00
△4.16
+5.30
-
-
Forex sensitivity for FY2018 (When
yen was depreciated by 1 yen)
US dollar (Yen)
Euro (Yen)
Revenue +460 million yen Operating profit +80 million yen
Revenue +390 million yen Operating profit +50 million yen
Performance forecast for FY2018 ending December remains unchanged
Copyright © 2018 NIKKISO CO., LTD. All rights reserved.
FY2017
Actual recordFY2018
Performance forecast
YoY comparison
Change Change rate
Industrial Business
Orders 85,406 101,900 +16,493 +19.3%
Revenue 85,228 101,800 +16,571 +19.4%
Operating profit 7,539 7,900 +360 +4.8%
Operating margin 8.8% 7.8%
Industrial DivisionOrders 58,827 72,300 +13,472 +22.9%
Revenue 59,715 71,700 +11,984 +20.1%
Precision Equipment
Division
Orders 10,731 11,100 +368 +3.4%
Revenue 9,843 11,600 +1,756 +17.8%
Aerospace DivisionOrders 15,712 17,000 +1,287 +8.2%
Revenue 15,550 17,000 +1,449 +9.3%
Medical Business
Orders 55,005 60,100 +5,094 +9.3%
Revenue 55,684 60,200 +4,515 +8.1%
Operating profit 3,950 5,800 +1,849 +46.8%
Operating margin 7.1% 9.6%
Corporate expenses, etc. Operating profit △2,771 △3,700 △928 -
Financial forecast for FY2018
Performance by Business Segment
13
Millions of JPY
Appendix
Copyright © 2018 NIKKISO CO., LTD. All rights reserved. 15
+474
Orders Analysis (vs FY2017 Q3)
Millions of JPY
< Medical >< Aerospace >< Industrial and Precision
Equipment >
+19,820
Simple
increase
FY2018 Q3(Jan.2017-Sep.2018)
Orders
122,745Impact of FX
Simple
increase Impact of FX
✓ Increase in LEWA due to improved
market conditions
✓ Joining of CI group, improved market conditions
✓ Increase in new warm isostatic laminators
✓ Increase in products from
Vietnam Hanoi First Plant and
Higashimurayama Plant
+824 +780 ▲246+2,067 +481Impact of FX
Simple
increase
FY2017 Q3(Jan.2017-Sep.2018)
Orders
99,016
✓ Recovery of demand for
hemodialysis equipment and
growth of disposables sales in
domestic market
✓ Strong performance of
overseas hemodialysis
business
✓ Sales growth of CRRT business
in the mainstay Chinese
market
Copyright © 2018 NIKKISO CO., LTD. All rights reserved. 16
Analysis (vs FY2017 Q3)Revenue
Millions of JPY
< Medical >< Aerospace >< Industrial and Precision
Equipment >FY2018 Q3
(Jan.2018-Sep.2018)
Revenue
115,437
+769
Simple
increaseImpact of FX
Simple
increase Impact of FX
+826 ▲246
Simple
increase Impact of FX
+431+2,703
+13,753
✓ Strong performance in the
cryogenic pump business
✓ Joining of CI group
✓ Recovery of demand for
hemodialysis equipment and
growth of disposables sales
in domestic market
✓ Strong performance of
overseas hemodialysis
business
✓ Sales growth of CRRT
business in the mainstay
Chinese market
FY2017 Q3(Jan.2017-Sep.2018)
Revenue
97,199
✓ Shipment growth from Vietnam
Hanoi First Plant and
Higashimurayama Plant
Copyright © 2018 NIKKISO CO., LTD. All rights reserved.
<Industrial and Precision
Equipment >
< Aerospace > < Medical >
17
+29
Simple
increase Impact of FX
Simple
increase Impact of FX
+163 ▲142
Simple
increaseImpact of FX
+99+553
+1,343
Increase in
corporate
expenses, etc.
▲711
✓ Strong performance in
the cryogenic pump
business
✓ Cost reductions through in-
house parts manufacture
✓ Shipment growth of Jet
engine parts
✓ Growth of hemodialysis
businesses✓ Absence of
proceeds from sale
of assets owned
Operating profit Analysis (vs FY2017 Q3)
Millions of JPY
FY2017 Q3(Jan.2017-Sep.2018)
Operating profit
4,972
FY2018 Q3(Jan.2018-Sep.2018)
Operating profit
6,308
Copyright © 2018 NIKKISO CO., LTD. All rights reserved. 18
As of end of December 2017 As of end of September 2018
AmountComposition
ratio AmountComposition
ratio Change
Total assets 244,692 100.0% 252,120 100.0% +7,428
Current assets 119,103 48.7% 123,204 48.9% +4,100
Cash and cash equivalents 34,095 13.9% 32,541 12.9% △1,553
Trade and other receivables 50,434 20.6% 48,165 19.1% △2,268
Inventories 30,363 12.4% 37,147 14.7% +6,784
Non-current assets 125,588 51.3% 128,916 51.1% +3,327
Property, plant and equipment 38,454 15.7% 42,722 16.9% +4,268
Goodwill and Intangible assets 67,792 27.7% 66,080 26.2% △1,712
Total assets 167,905 68.6% 173,263 68.7% +5,358
Trade and other payables 22,624 9.2% 26,402 10.5% +3,778
Bonds and borrowings 122,528 50.1% 120,262 47.7% △2,266
Total equity 76,787 31.4% 78,857 31.3% +2,069
Consolidated Statement of Financial Position
Millions of JPY
Copyright © 2018 NIKKISO CO., LTD. All rights reserved.
Japan
37%
Asia
25%
North
America
17%
Europe
18%
Others
3%
18%
35%19%
25%
3%
FY2018
Q3
日本
アジア
北米
欧州
その他69%
15%
1% 12%3%
19
FY2018
Q3
Overseas
revenue ratio
63%
FY2018
Q3
16%
8%
2%
FY2018
Q3
Revenue Composit ion Rat io by Region
Nikkiso group total Revenue trend by overseas region
MedicalAerospaceIndustrial and Precision
Equipment
(9months)JGAPP IFRS
Asia North America
Europe Other
Overseas revenue ratio (right axis)
Millions of JPY
Japan
Asia
North America
Europe
Other
Copyright © 2018 NIKKISO CO., LTD. All rights reserved.
Breakdown of forex sensitivity
20
FY2018
Performance forecast
Against the US dollar Against the euro
RevenueOperating
profitRevenue
Operating
profit
Industrial Division/
Precision Equipment
Division+210 +30 +280 +20
Aerospace Division +200 +80 +0 +0
Medical Division +50 △30 +110 +20
Total +460 +80 +390 +50
Average/Forecast (Yen) 108.00 132.00
※When yen was depreciated by 1 yen
Millions of JPY
Copyright © 2018 NIKKISO CO., LTD. All rights reserved.
FY2016- IFRS -
FY2017- IFRS -
Earnings per share (Basic) 66.08 yen 71.82 yen
Return on equity (ROE) 7.2% 7.3%
Return on asset (ROA) 3.8% 3.9%
Operating margin 6.2% 6.2%
Equity ratio 37.4% 30.7%
Debt/equity ratio 1.05 times 1.63 times
FY2016- IFRS -
FY20172017
- IFRS -
Capital expenditure 7,635 7,508
Research and development expenditure 1,679 2,435
Depreciation and amortization 4,766 5,246
Financial data IFRS
21
Millions of JPY
Company Information
Copyright © 2018 NIKKISO CO., LTD. All rights reserved. 23
Consolidated Net Sales
130.0
140.9
8.18.7
0
1,500
16/12 17/12
Net Sales by SegmentTrend in Net Sales /Operating Income
( billion yen )Industrial business60%
Medical business40%
Industrial Division
42%Medical Division
40%
Aerospace Division
11%
FY2017
Precision Equipment Division
7%
72.3
78.0 83.1
90.1
103.6
121.5
129.2
110.2
132.8
4.7
5.6 5.3
6.5
7.4
9.4
6.1
3.8
4.8
0
1,500
09/3 10/3 11/3 12/3 13/3 14/3 15/3 15/12 16/12
Net sales Operating income
JGAAP IFRS
Copyright © 2018 NIKKISO CO., LTD. All rights reserved. 24
Footsteps of the NIKKISO Group
History
69 71 74 75 83 87 95 01 09 1053 54 56 60 61 67
Medical Division
1285
Aerospace Division
00
Industrial Division
13 14
Completes construction of Higashimurayama Plant.
Listing on the second section of the Tokyo Stock Exchange.
Listing on the first section of the Tokyo Stock Exchange.
Completes construction of Shizuoka Plant.
Completes construction ofKanazawa Plant.
Acquires the LEWA Group of Germany.
Establishes a joint venture with the China-based Weigaofor the manufacture and maintenance of dialysis machine
Accepts transfer of a German Fresenius Medical Care’s dialyzer and peritoneal dialysis product selling in Japan.
Decides to transfer the production function from Shizuoka Plant to Kanazawa Plant as part of the anti-disaster measure.
Acquires Geveke B.V. of the Netherland
Acquires CRRT business of Baxter International Inc.
Acquires Cryogenic pump business of Atlas Copco.
Company is established for the purpose of import and sales of reciprocating metering pumps.
Develops a water conditioning system for power plants and begins production and sales of systems.
Introduces Japan’s first leak-free canned motor pump technology and begins production and sales of pumps.
Begins import and sales of artificial dialysis machines for the first time in Japan.
Completes Japan’s first hemodialysis machine and begins production and sales of machines.
Begins production and sales of dialyzers for hemodialysis.
Begins production and sales of cascades made of carbon fiber reinforced plastic as components for commercial aircraft.
Begins manufacturing and sales of cryogenic pumps.
Begins production of blood tubing lines for hemodialysis in Vietnam.
Obtains a license for the technology to manufacture Microtrac particle size analyzers from Honeywell Inc. of the U.S.
17
Acquires the Cryogenic Industries Group of U.S.A.
15
Copyright © 2018 NIKKISO CO., LTD. All rights reserved. 25
Industrial Division
LNG -Global Strategy-
Transport Consumption
Gas stationGas fuel
vehicle/LNG train
Tanker
LNG fuel shipBunkering
Small liquefaction
plant
Regasification plant
Adding core technologies of the CI Group contributes to covering a wide range of the LNG value chain. Building cryogenic product lines, including the industrial gas field.
PlantHomesPower plant
Offshore gas field
Gas field
Liquefaction plant
Floating offshore natural gas
liquefaction facility
LNG conveyance
Floating LNG storage
regasification facility
LNG receiving base
C C
N Nikkiso C CI group
Peak shaving
N N C N C
Production
C
Production Liquefaction Conveyance Receipt Storage/Distribution
Power source usage
Nikkiso Group’s area of coverage
CI Group’s area of coverage
Fuel supply device for LNG fuel ship
LNG peak shaving plant
✓ Highly efficient and stable fluid control technology for ultra-low temperatures
✓ Heat exchange process in gasification and liquefaction✓ Highly efficient small and medium-scale process/plant
technology
CI Group’s core technologies
Electricityusage
Heat source usage
Copyright © 2018 NIKKISO CO., LTD. All rights reserved. 26
Overview of Cryogenic Industries group
Business Segment Business area/Products Market demand Growth strategy
ACD
✓ Supplying pumps and related equipment
used for manufacturing industrial gases
as well as transporting, storing, and
distributing LNG
・Cryogenic pumps
(Centrifugal Pump/
Reciprocating pumps)
・Turbo Expanders
✓ Growing demand for turbo expanders for
industrial gas industries in Taiwan,
China, etc. (semiconductor, medical,
etc.)
✓ Increasing LNG-fueled ships due to
stricter environmental regulations for
vessels
✓ Increasing use of liquefied gases (LNG,
hydrogen, etc.) aimed at promoting next-
generation energy
✓ Use the Nikkiso Group’s global
production and sales network
✓ Provide after-sales services, ACD’s
forte, across the globe
✓ Expand the product lineup for LNG-
fueled ships
✓ Work with Nikkiso Cryo, Inc. (based in
Las Vegas), which has an advantage in
FSRU
Cryoquip
✓ Supplying vaporizers for industrial gas
and LNG gasification
・Vaporizers
(Ambient, Electric, Water
Bath, Water Pot, Shell and
Tube, etc.)
✓ Growing demand due to the shift from
coal-fired thermal power plants to LNG-
fueled plants
✓ Growing demand for industrial gas
vaporizers in Taiwan, China, etc.
✓ Increasing LNG receiving terminals and
FSRUs
✓ Increasing LNG-fueled ships due to
stricter environmental regulations for
vessels slated to go into effect in 2020
✓ Use the Nikkiso Group’s global
production and sales network
✓ Leverage Nikkiso’s track record to
launch vaporizers for receiving terminals
and FSRUs
✓ Strengthen products and sales targeting
LNG-fueled ships
Cosmodyne✓ Providing plant engineering solutions for
air separation, gas generation, and
liquefaction of natural gas
・Small LNG plants
・Air Separation Plants
✓ Growing demand for peak shaving
plants
✓ Growing demand for virtual pipelines
✓ Strengthen sales of small liquefaction
and regasification plants in Asia and
Central America
✓ Tap into replacement demand for peak
shaving plants in the U.S.
Peak shaving plant: a facility that stores energy to be used during periods of peak demandVirtual pipeline: a gas transport network that distributes gas, via LNG trailers and other means of transportation, to locations not equipped with pipelines
FSRU:floating storage and regasification unit
Copyright © 2018 NIKKISO CO., LTD. All rights reserved. 27
(For Reference) LNG-related Markets
●Increasing LNG-fueled ships
Fuel gas supply system(FGSS)
✓ The number of LNG-fueled ships is expected to increase in anticipation of the implementation of SOx emissions
regulations slated for 2020 and CO2 emissions regulations slated for 2025.
✓ The number of LNG-fueled ships will reach 500 by 2020, with 121 ships currently in operation, or 247 ships if you
include those for which orders have been placed.
Source: DNV GL
2020: Limit on SOx emissions from exhaust - To 0.5% or lower
from 3.5% or lower
2020: CO2 emissions regulations for new shipbuilding - To 20% reduction from 10%
2025: To 30% reduction from 20%
Regulations for preventing air pollution Regulations for curbing global warming
New fuel gas
supply system