Through its corporate principle “K: Trust from all over the world”, the “K” LINE Group aims for the realization of both social and economic value, sustained growth, and increased corporate value by supporting the infrastructure of the global community as a partner trusted by all its stakeholders.
In FY2023 (from April 1, 2023 through March 31, 2024), amid growing geopolitical risks such as the situation in the Middle East, interest rate hikes to control inflation, and concerns about economic fragmentation caused by rising tensions between the U.S. and China and other regions, the dry bulk business was affected by weakening market conditions. Despite this, the car carrier business remained robust due to the recovery in demand for transportation, resulting in improvement in operating income. However, with the tonnage supply-demand balance loosening in the containership business as a result of the delivery of newly built vessels, profitability declined and profit attributable to owners of the parent came to ¥104.7 billion.
The 5-year medium-term management plan, which started in FY2022, is making solid progress, mainly attributable to its own businesses. Ordinary income of ¥135.7 billion was recorded in FY2023, the second year of the plan, putting us well on track to achieve the target of ¥140.0 billion in FY2026, the final year of the plan, and we have raised the final year target to ¥160.0 billion. Beyond that, we are aiming for at least ¥250.0 billion by FY2030. Regarding investments, we will steadily increase profit by implementing a disciplined investment plan that focuses on “businesses that play a role of driving growth” (coal/iron ore, car carriers, and LNG carriers) and businesses that contribute to the low-carbon and decarbonization of the Company and society.
In terms of capital policy, the Company will make flexible and proactive return of profits to shareholders in order to further enhance corporate value by increasing capital efficiency and maintaining financial soundness with an awareness of the optimal capital structure and cash allocation. Under our shareholder return policy, the Company purchased and canceled its treasury stock of approximately ¥56.2 billion in FY2023, and paid a dividend of ¥250 per share (an interim dividend of ¥100 per share and a year-end dividend of ¥150 per share; based on the number of shares prior to the share split implemented on April 1, 2024). In addition, during the period of the medium-term management plan, after carrying out the investments necessary to increase corporate value, while also taking into account operating cash flow surplus, we have set forth a plan to increase total shareholder returns for the period of the medium-term management plan by ¥200.0 billion from the previous level to a minimum of ¥700.0 billion. We have raised our investment plan from the previous 630 billion yen to 740 billion yen, to carry out investments in line with customers’ needs while maintaining investment discipline, focusing on the three core businesses driving growth. In terms of shareholder returns, we have set our annual dividend forecast for fiscal 2024 at 85 yen, which is a basic dividend of 40 yen per share plus an additional dividend of 45 yen, and announced and implemented a share buy-back of up to 100 billion yen and 39,556,000 shares on May 7 as a responsive return delivery.
In FY2024, we will continue to steadily implement our medium-term management plan, strive to achieve sustainable growth, and maximize corporate value for the purpose of further enhancing shareholder value.
We wish to express our deep appreciation to our stakeholders for your continued support and encouragement..
