Management Plan (Released on August 5th, 2020)

We disclosed our Management Plan on August 5th, 2020 and the outline of the plan is the followings.

 

Positioning of Management Plan

  • This plan begins in FY2020 and maps “K” Line Group’s direction through the mid-2020s or even beyond

  • The plan assumes that the business environment surrounding “K” Line will change dramatically, including factors related to the novel coronavirus (COVID-19) crisis; the plan, therefore, includes specific business policies and initiatives to cope with current challenges, as well as financial forecasts, for the first two years of the plan (FY2020 and FY2021)

  • For FY2022 and beyond, financial targets have been set for mid-2020s and the end of the 2020s

 

Forwarding to Growth in Corporate Value （Business Policy in FY2020 and FY2021）

  • Firmly protecting our business in the short term - Pursuing business scale rather than fleet scale -

    ・Rationalize fleet size

    ・Refocus investments

  • Firmly addressing priorities

　　・Expand and accelerate safety, environment, and quality initiatives

　　・Strengthen technical and sales capabilities to drive growth strategies

  • Secure liquidity on hand and expand capital base

　　・Secure liquidity: Equal to more than three months’ revenues, including commitment line

　　・Expand capital base: Sell and dispose of vessels and other assets

  • Set detailed strategies and thoroughly implement progress management

 

FY2020 & FY2021 Ordinary Income/Loss and Shareholders’ Equity Forecasts; Medium- and Long-term Targets

  • FY2020 ordinary loss of 28.0 billion yen forecast, while net income expected to break even after asset sales, among others
  • FY2021 ordinary income and net income expected to improve to 10.0 billion yen level
  • Mid-2020s medium-term target of ordinary income of 25.0 billion yen
  • Mid-2020s medium-term target of more than 150.0 billion yen in shareholders’ equity through steady improvement

　　　ー Shareholders’ equity ratio target of 20%

  • FY2030 targets: ordinary income of 30.0 billion, shareholders’ equity of 250.0 billion yen

　　　－ Shareholders’ equity ratio of 30%