Thank you for your continued support.
I am Yutaka Akutagawa, Senior Managing Representative Executive Officer and CFO.
In announcing our financial results for Fiscal Year 2025, we reviewed the achievements and challenges of the current Medium-term Management Plan, which concludes in Fiscal Year 2026, and disclosed the key priorities toward the next Medium-term Management Plan, which will commence in Fiscal Year 2027. Under the current Medium-term Management Plan, we have pursued a capital policy centered on enhancing our earning power, while maintaining an awareness of optimal capital structure and cash allocation. Using operating cash flow generated by “K” Lineʼs own businesses and dividends received from OCEAN NETWORK EXPRESS (ONE) as funding sources, we are simultaneously advancing investments for future growth and shareholder returns.
At the same time, we recognize that improving capital efficiency is an important management priority if we are to consistently achieve our target return on equity (ROE) over 10%. We also take seriously the fact that our price-to-book ratio (PBR) has remained below 1.0 in recent years. To earn a higher valuation from the market, we believe that further efforts to enhance corporate value are required.
Based on this understanding, we will continue to regard achieving and maintaining a PBR above 1.0 as an important management objective. In the next Medium-term Management Plan, we have positioned profit growth and improvements in capital efficiency as the two key pillars for achieving an ROE of 15% or more over the medium to long term. As part of this effort, with regard to the consolidated equity ratio, including off-balance-sheet charter hire obligations, we will initially target a level of around 50% in the short term as we work toward optimizing our capital structure. As a concrete measure, in May 2026 we announced a share buyback with an upper limit of 130 billion yen. Going forward, we will continue to pursue disciplined growth investments while striving to balance capital efficiency and financial soundness, and will proactively and flexibly enhance shareholder returns.
We will also continue to engage in constructive dialogue with shareholders, investors, and other stakeholders as we work toward the sustainable enhancement of corporate value.
As of July 2026
Yutaka Akutagawa
