Annual Report 2012


>> P.10

CONSISTENTLYMAINTAINEDSINCEAPRIL2008ANDMOUNTANALL-OUT,GROUP-WIDEEFFORTTOACHIEVE“SYNERGYFORALLANDSUSTAINABLEGROWTH,”THEMAINTHEMEOFOUR“K”LINEVISION100MANAGEMENTPLANS.FIRSTOFALL,PLEASEDISCUSSINDETAILTHEPROSPECTSFORRETURNINGTOPROfiTABILITYINfiSCAL2012ONANORDINARYINCOMEBASIS,ONEOFTHETHREEKEYMISSIONS.ICONSIDERRETURNINGTOPROfiTABILITYINfiSCAL2012ONANORDINARYINCOMEBASISAMISSION,NOTANOBJECTIVE.TOTURNAPROfiTONANORDINARYINCOMEBASIS,THEMEMBERSOFTHE“K”LINEGROUPWILLWORKINUNISONTOIMPLEMENTEXHAUSTIVECOSTREDUCTIONSINCLUDINGREDUCEDFUELCONSUMPTIONBYMEANSOFSLOWSTEAMINGANDREDUCTIONSINGENERALANDADMINISTRATIVEANDOPERATINGEXPENSES.INTHECONTAINERSHIPBUSINESS,WEWILLSEEKTOIMPROVEEFFICIENCYANDPROFITABILITYBYSTREAMLININGTHEFLEETTHROUGHTHEREORGANIZATIONOFUNPROfiTABLESERVICEROUTESANDTHERETURNANDDISPOSALOFUNPROfiTABLEVESSELSANDALSOREDUCEOPERATINGEXPENSESPERTEUBYPUTTINGINTOOPERATIONfiVELARGE,ENERGY-EFfiCIENT8,600-TEUCONTAINERSHIPS.WEFORECASTTOTALPROfiTABILITYIMPROVEMENTOF¥28.0BILLIONFROMTHESEEXHAUSTIVECOSTREDUCTIONSANDTHERESULTSOFSTRUCTURALREFORMS:¥20.5BILLIONINTHECONTAINERSHIPBUSINESSAND¥7.5BILLIONINOTHERBUSINESSES.WEALSOFORECASTIMPROVEMENTOF¥33.0BILLIONDUETOFACTORSSUCHASRECOVERYINMARKETCONDITIONS,RECOVERYFROMTHEIMPACTOFNATURALDISASTERS,ANDTHESTARTOFOPERATIONOFNEWBUSINESSES,FORTOTALYEAR-ON-YEARPROfiTABILITYIMPROVEMENTOF¥61.0BILLION.NEXT,PLEASEDESCRIBESPECIfiCMEASURESTOESTABLISHASTABLEEARNINGSSTRUCTUREANDSTRENGTHENTHECOMPANY’SfiNANCIALSTANDING,THEOTHERTWOKEYMISSIONSINTHEMANAGEMENTPLAN.INMYVIEW,IMPROVINGPROfiTABILITYINTHECONTAINERSHIPBUSINESSANDEXPANDINGSTABLEEARNINGSTHATWILLGENERATESTABLEEARNINGSOVERSEVERALYEARSARETHETWINKEYSTOBUILDINGASTABLEEARNINGSSTRUCTURE.WEFORECASTTOTALPROfiTABILITYIMPROVEMENTINTHECONTAINERSHIPBUSINESSOF¥37.0BILLIONOVERTHETHREE-YEARPERIODBEGINNINGINfiSCAL2012FROMTHECONTINUOUS,STEADYIMPLEMENTATIONOFSTRUCTURALREFORMS.ANINTERVIEWWITHTHEPRESIDENTQUESTION3ANSWERQUESTION4ANSWER10ANNUALREPORT2012


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