Using the strengths it has built up in nearly 100 years of history, the “K” LINE Group is working to create new value over the next century as well, by providing core logistics and trading infrastructure that are indispensable and help enrich the lives of people around the world.

Medium-Term Management Plan: Revival for Greater Strides

The “K” LINE Group aims to rebuild its management foundation in order to address significantly changing business conditions in the shipping industry and enable sustainable growth. To this end, as part of our long-term business policy, we formulated a Medium-Term Management Plan, entitled “Revival for Greater Strides,” covering the three-year period from fiscal 2017 through fiscal 2019. Under the plan, we have set and advanced three priority initiatives: (1) Rebuilding portfolio strategy, (2) Emphasizing advancement of management and function-specific strategies, and (3) Pursuing ESG initiatives.

Target Key Performance Indicators

Medium-Term Management Plan Targets (FY2017-FY2019)

▶ Return to profit for three years from FY2017
▶ Achieve 6% ROA (ordinary income) in stable business, and expand the business scale
 → Increase ordinary income of stable business to over ¥30 billion in FY2019 from ¥25 billion in FY2016
▶ Ratio of Shareholders’ equity
– Targeting mid 20%’s
▶ Dividend policy
– Our priority is to stabilize our business base and improve financial structure.
We are aiming to resume dividend payment at an early stage.

Long-Term Targets (mid-2020s)

▶ Achieve ROA (ordinary income) of 6%, ROE of double digits
– Foster both growing fields and stable-income foundation via advanced management
▶ Shareholders’ equity of ¥400 billion
– Verify benefits from containership business merger, plan to reset
▶ Dividend policy – Return to a stable dividend policy

1. Rebuilding Portfolio Strategy



2. Emphasizing Advancement of Management and Function-specific Strategies

(1) Advancement of Management (Started from FY2017)

▶ Strengthen total volume and quality of business risk-return management

▶ Introduce business assessment with a greater focus on capital costs
▶ Implement corporate value improvement initiatives via PDCA cycle

(2) Function-specific Strategies

▶ Strengthen customer relationship management (CRM)

 ‣Return to our customer-first approach concentrating on the strengths of the “K” LINE Group
▶ Pursue high-quality services via technological and business model innovation

 ‣Establish an advanced technology group, combine with CRM, to concentrate on providing high-quality services

▶ Attract and retain human resources, nurture diversity

 ‣Attract and retain professional and diverse human resources to support next-generation core businesses

 ‣Retain and foster human resources to create new services and markets via technological and business model innovation

3. Pursuing ESG Initiatives


‣ 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.

Safety Navigation & Cargo Operation (Society)

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

Corporate Governance System Enhancement

Initiatives toward corporate governance enhancement

1st stage(~2015)

Governance Reform as a Part of Management Reforms

‣ 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)

2nd stage(2015~2016)

Review Governance System

‣ 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

3rd stage(2016~)

Clarification of Executive Responsibilities and Strengthening Monitoring System of the Board

‣ 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

Corporate Governance Structure

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.


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.


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.



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.