Medium-Term Management Plan

The outline of the Management Plan is the followings.

 

<Theme for Management plan in FY2021>

Connecting the World via Oceans and Technology

～As a professional maritime shipping group, we are stepping ahead into the future, leveraging technology to support missions that the times demand.～

•  Fulfilling the societal mission of the maritime shipping industry

• Realizing social sustainability

• A company that all stakeholders will continue to turn to

• Refining our skills as a professional maritime shipping company

 

＜Management Plan in FY2021　Business Strategy＞

Forwarding to Growth in Corporate Value ～Compatibility with Sustainable Society

◆ Refining our Four-pillar Business - Dry Bulk, Energy Resource Transport, Car Carrier, Logistics・Coastal and Short Sea

     ・Fortifying our ability to provide clients with new ideas

・Strengthen our business base in growth markets

・Continuing to our fleet optimization in line with plans

・Prioritizing stable earnings and selectivity in investment, while also studying incorporation of growth areas with undertaking a business risk to some extent

・Further Improvement of safety and service quality through better use of data

・Rigorous pursuit of efficiency in vessel allocation

◆ Venturing into new business areas - Leveraging our experience to venture into growth areas with trusted partners

    ・Renewable energy area (Offshore Support Vessel, etc.)

・Foundation of JV company regarding offshore wind power generation in Japan

・Demand for transport utilizing new energy (Ammonia, Hydrogen, CO2, etc.)

・Transportation by Small Scale LNG Carrier

・LNG-related business such as LNG Bunkering Vessel

・Using low carbon / zero carbon technologies

・Providing new value using DX

◆ Accelerating business　development abroad, particularly in Asia

　 ・Developing a global business, especially in growth markets such as Asia

    ・Collaboration with global partners, leveraging our group network

◆ Achieve Further Competitiveness in Containership business

    ・“K”LINE, as a shareholder, continue to support ONE as Containership Business is one of our important business.

◆ Continuing to expand a stronger financial base

 

<Medium- and Long-term Targets>

	～ Mid 2020's	～FY2030
Ordinary Income	￥30bln	￥50bln
Equity Capital	￥300bln or more	￥400bln or more
Equity Ratio	30% or more	40% or more
ROE (Return on Equity)	10% or more

 

<Stabilize Financial Base>

◆ FY2021 Forecasts

    ・Expect to  ordinary income for “K”LINE own businesses will total 12.0 billion yen, and roughly 33.0 billion yen in containerships Business.

◆ Medium- and Long-term Targets

　・As a medium- to long-term goal, we aim to stably generate 30.0 billion yen in ordinary income.

◆ Stabilize Financial Base

    ・For the time being, our priority is to increasing shareholder’s equity and further stabilizing our financial base and also to resume paying dividends soon and stably.

◆ Strategic Investment

   ・Commensurate with our financial base, we aim to accelerate investment in strategic growing area and  also review our business portfolio.

 

＜Investment Plan＞

◆ Refocusing investments in short-term

    ・Overall investment in the five years beginning in fiscal year 2021 will be about 250 billion yen, within the scope of operating cash flow

    ・Looking ahead to after improving our financial base, we will consider investing in new growing areas.

◆ Investment Policy

 

Investment Portfolio	Existing Business	Replacement	Replacement Investment mainly Stable-Income Business	55%	•Investment based on long-term Contracts •Expansion of Stable-Income Business •Strengthen Profitability
	Strategic Growing Area	Growing Area Environment	Prioritize investment in Energy resource, Environment-related area and Growing area	30%	•Vessels using alternative fuels •Environmental response equipment •New business contributing to low carbon
		Strategic investment ・R&D ・DX	R&D for New Environmental Technologies Investment for promoting DX	15%	•Investment for R&D for environmental technologies •R&D for zero-carbon •Strengthen AI・Digitalization