Medium-term Management Plan (Released on May 9th, 2022)
We have formulated and announced a new medium-term management plan on May 9th, 2022. In our new management plan, we have formulated a growth strategy with challenges in business areas around a low-carbon/decarbonized society as business opportunities, and we will manage resources based on the portfolio strategy for three businesses that will drive growth. As a shareholder of OCEAN NETWORK EXPRESS PTE. LTD. in containership business, which is an important business division of our group, we will further strengthen support for its sustainable growth and development,. Moreover, we will aim for an optimal capital structure and promote cash allocation based on balanced growth investment and shareholder returns. Through these initiatives, we aim to be a company that continues to be selected by all stakeholders, while reducing the environmental footprint and continuously enhancing corporate value toward realization of a sustainable society.
<Summary of New Mid-term Management Plan>
- After improvement of financial strength drastically, ”K”LINE arrived at a new phase
- Improving corporate value through the growth by contributing low-carbon/decarbonization focusing on shipping business
- Expecting ordinary income 140.0 billion yen in FY26 and Investment scale for 5 years will be 520.0 billion yen
- Improving profitability both in “K”LINE own businesses and Containership Business
- Management resources will be allocated to 3 businesses that drive growth based on portfolio strategy
- Containership is an important business segment for the “K” LINE Group and providing support and advice as a shareholder
- To be thorough valuation for each business, capital discipline, financial discipline and discipline of investment with awareness of capital costs
- Building the optimal capital structure and allocating cash focusing on growth investment and shareholder’s return
- 600yen/share for Year-end dividend in FY2021. The shareholder’s return in FY2022 is planning more than 100.0 billion yen as additional shareholder’s return plus 300yen/share.
- Assuming a total of 400.0-500.0 billion yen in shareholder returns by FY26 and considering Additional dividends/Share Buy-back expeditiously
‣ Selected to Climate A List for 2016 and to the Supplier Engagement Leader Board by CDP
‣ New interim COsub{2} reduction target under K” LINE Environmental Vision 2050 acquired “Science Based Target” (SBT) certification
‣ Japanese SOsub{X} Scrubber System of eco-flagship DRIVE GREEN HIGHWAY acquired first certification from Panama
‣ Group environment management system was established
‣ Bolster stakeholder engagement, vessel tours and volunteer activities to promote community engagement
‣ Devise supply chain guidelines
‣ Devise and launch a new personnel system aimed at working-style reforms.
‣ Offer diverse trainings to improve the know-how & skills and foster teamwork of maritime technical personnel via “K” Line Maritime Academy, etc.
Maintaining World-Leading in Safety in Navigation & Cargo Operations
‣ Keep the number of serious maritime accidents at zero
‣ Develop and introduce the K-IMS integrated vessel operation and performance management system
‣ Construct an energy management system
‣ Bolster safe navigation hardware via K-DNA guidelines for installing safety equipment
Initiatives toward corporate governance enhancement
‣ Adopted an Executive Officer System (2006)
‣ Established a single-year term system for board appointments (2009)
‣ Recruited outside directors to join our Board of Directors (2009)
‣ Improvement of functions of Board of Directors, Management Conference and Executive Officers’ Meeting
‣ Establishment of Nominating Advisory Committee & Remuneration Advisory Committee
‣ Preparation of corporate governance guidelines for Corporate Governance Code introduction
‣ Adoption of Unit Supervisory System
‣ Initiatives toward a constant improvement by implementing the assessment on board effectiveness
‣ Increased number of Outside Directors from 2 to 3
‣ Appointment of a female to managerial position
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Develop Next-generation Core Businesses①
Logistics Business
We will utilize our global network, built up through our involvement in the containership business, to strengthen and expand our presence in the forwarding business as a non-vessel operating common carrier (NVOCC), with “K” LINE LOGISTICS, LTD. as the core.
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Develop Next-generation Core Businesses②
Logistics Services for Completely Built-up Cars
Deploying our customer base in the car carrier business, we will increase our involvement in Logistics Services for Completely Built-up Cars, which includes customs clearance, installation of parts, painting, car washing, and other pre-delivery inspection (PDI) services.
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Develop Next-generation Core Businesses③
Development into energy value chain business
In addition to marine transportation of energy resources using LNG carriers, oil tankers, and the like, we will develop and expand our diversified energy value chain business, which includes operation of drillships and Floating Production Storage and Off-loading (FPSO) units.
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Develop Environmentally-Friendly Businesses
“K” LINE Environmental Vision 2050 was formulated.
While minimizing our impact on the environment, it is our responsibility to help enrich people’s lives as a key member of the shipping industry.
To fulfill this responsibility, we formulated “K” LINE Environmental Vision 2050, which identifies the direction we should take from multifaceted perspectives.
