Annual Report 2012


>> P.14

REVISIONOFTHEMEDIUM-TERMMANAGEMENTPLAN●THREEMISSIONSANDFIVEACTIONPLANSTOACHIEVETARGETSACTIVITIESTOPROMOTEENVIRONMENTALPROTECTIONSTABLEANDSAFESHIPOPERATIONADMINISTRATIONSTRUCTURETHEfiVEBASICPRIORITIESBORDERLESSMANAGEMENTTHROUGHTHEBESTANDSTRONGESTORGANIZATIONSTRATEGICINVESTMENTANDPROPERALLOCATIONOFMANAGEMENTRESOURCESIMPROVEMENTOFCORPORATEVALUEANDCOMPLETERISKMANAGEMENT“K”LINEVISION100(MAINTHEME:SYNERGYFORALLANDSUSTAINABLEGROWTH)GENERATEORDINARYINCOMEINFY2012IMPLEMENTSWEEPINGCOSTREDUCTIONSANDREPORTORDINARYINCOMEINFY2012BUILDASTABLEEARNINGSSTRUCTUREMAKESTRUCTURALREFORMINTHECONTAINERSHIPBUSINESSREINFORCEfiNANCIALSTANDINGEXPANDSTABLEEARNINGSINTHEDRYBULKBUSINESSANDCARCARRIERBUSINESSGENERATESTABLEEARNINGSINTHEENERGYRESOURCETRANSPORTBUSINESSANDNEWBUSINESSESSTRENGTHENfiNANCIALSTANDINGTHROUGHLIMITSONINVESTMENTCURRENTTHREEMISSIONSFIVEACTIONPLANSSINCEESTABLISHINGOURMEDIUM-TERMMANAGEMENTPLAN,“K”LINEVISION100INAPRIL2008,THEREHAVEBEENDRASTICCHANGESINTHEBUSINESSENVIRONMENT,REQUIRINGUSTOMAKEPERIODICREVIEWS.HOWEVER,WESTILLPOSTEDANETLOSSFORfiSCAL2011DUETOSTAGNATIONOFFREIGHTRATESINCONTAINERSHIP,DRYBULKANDTANKERBUSINESSESASARESULTOFTHEDELIVERYOFANEXCESSIVENUMBEROFNEWBUILDINGS,CONTINUATIONOFHIGHAPPRECIATIONOFTHEYEN,SOARINGFUELOILPRICESANDADVERSEINflUENCEFROMNATURALDISASTERSSUCHASTHEGREATEASTJAPANEARTHQUAKEANDTHEDESTRUCTIVEflOODINGINTHAILAND.INORDERTOOVERCOMESUCHASEVEREBUSINESSENVIRONMENT,ANDAFTERREVIEWINGOUREXISTINGPLAN,WELAUNCHEDANEWMEDIUM-TERMMANAGEMENTPLAN,“K”LINEVISION100:BRIDGETOTHEFUTURE.THROUGHTHISNEWMANAGEMENTPLAN,WEWILLWORKONRESTRUCTURINGOURCONTAINERSHIPBUSINESSANDBUILDINGASTABLEEARNINGSBASEFORBOTHDRYBULKANDCARCARRIERBUSINESSESINORDERTOSECURECONSTANTORDINARYPROfiTEVENWHENMARKETISSLUGGISH.THEfiNANCIALSTRUCTURESHALLBEFURTHERSTRENGTHENEDBYCAPPINGINVESTMENTCASHflOWANDREDUCINGINTEREST-BEARINGDEBT.“K”LINEHASSETFORTHTHREEKEYMISSIONSINTHENEWMEDIUM-TERMMANAGEMENTPLAN:RETURNINGTOPROfiTABILITYINFY2012,BUILDINGASTABLEEARNINGSSTRUCTUREANDSTRENGTHENINGOURfiNANCIALSTANDING.WEWILLACCOMPLISHTHESEMISSIONSTHROUGHfiVEACTIONPLANS.“K”LINEVISION100–BRIDGETOTHEFUTURE–STRUCTURALREFORMFORBUILDINGASTABLEEARNINGSBASE“K”LINEVISION100OBJECTIVESINBRIDGETOTHEFUTURE12345●BACKGROUNDTOREVISIONOFTHEMEDIUM-TERMMANAGEMENTPLAN14ANNUALREPORT2012


<< | < | > | >>