Management Plan (Released on May 10th, 2021)

We disclosed our Management Plan on May 10th, 2021 as a Rolloing Planning.

Presentation

Management Plan

Explanation by narration

Management Plan

Major Q&A

Q&A

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, LogisticsCoastal 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