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 fiscal 2022, the first year of the Medium-Term Management Plan, profit attributable to owners of parent was at a record-high level for two consecutive periods, attributable to its own businesses which solidly accumulated profit and the containership business that enjoyed continuously buoyant market conditions mainly in the first half of the fiscal year. Although the disruption of supply chains around the world has stabilized, the prolonged Russian invasion of Ukraine, growing concerns about the US-China conflict, rising interest rates as a measure against inflation, surging resource prices and other new risks have impacted the global economy.
While the containership market is undergoing a normalization process, the Group will maintain the increase in its profitability by continuing to designate marine transportation as its core business and by focusing its management resources on its own businesses, mainly coal and iron ore carriers, car carriers and LNG carriers, areas where the Group can utilize its strengths and knowledge. Moreover, the Group will ensure that it is able to meet new transportation demand by promoting environment-responsive initiatives through partnerships with customers and by pursuing growth opportunities. Achieving ordinary income of 140 billion yen by fiscal 2026 is included in the revenue targets in the Medium-Term Management Plan, and the Group will strive to achieve this target ahead of schedule and endeavor to further reinforce its efforts.
The Group plans to invest 630 billion yen during the term of the Medium-Term Management Plan, concentrate approximately 80% of investments in the three businesses that will be growth drivers and invest 375 billion yen, approximately 60% of total investments, in environmental areas, such as alternative fuel ships, new businesses that contribute to the achievement of a carbon-free society, and environmentally friendly equipment. By responding to customers’ needs related to low-carbon and no-carbon initiatives and strictly observing its investment policy, the Group will aim to achieve sustained growth and increase its corporate value by balancing the growth of operating revenue and the mitigation of environmental burdens.
Regarding its capital policy in fiscal 2022, the Group acquired and retired approximately 89.5 billion yen of treasury shares, the largest-scale buyback in the Group’s history, and distributed annual dividends of 400 yen per share (100 yen interim dividend and 300 yen year-end dividend after the stock split). With the improvement of cash flow from operating activities, shareholder returns were also raised the lowest limit of 500 billion yen or more during the term of the Medium-Term Management Plan. Basic dividends for fiscal 2023 and thereafter will be 120 yen per share, and a dividend of 80 yen per share will be added to make the total dividend in fiscal 2023 200 yen per share. Moreover, additional shareholder returns on the order of 110 billion yen are planned to be implemented after 2023, in addition to basic dividends. Always with an awareness of the optimal capital structure, the Group will flexibly implement shareholder returns based on cash allocations while maintaining a sound financial position through investments necessary for increasing corporate value.
Finally, we wish to express our deep appreciation to our stakeholders for your continued support and encouragement.