 |
 |
| June, 2010 |
| We have a long-term vision of making the MOL Group an excellent and resilient organization that leads the world shipping industry. As MOL's new president, following my appointment in June 2010, I am determined that we will realize this long-term vision. In doing so, we will establish the MOL Group as the first name out of people's mouths when talking about world shipping and earn the recognition of customers, shareholders and other stakeholders. I also want MOL to remain a group that employees and seafarers are proud to work for. |
 |
| Even Stronger Core Competencies-Safe Operation and Corporate Governance |
| Strengthening our core competencies is imperative for realizing these ambitions. Above all else, our first priority as a marine transport firm is to ensure a safe operation system. Safe operation for a shipping company means the safe and reliable transportation of customer cargo, as well as protecting the seas and oceans where we ply our trade. Under "MOL ADVANCE," our midterm management plan from fiscal 2007 to fiscal 2009, we put the highest priority on establishing a safe operation system. Moving forward, by making sure our safe operation system is clearly visible to all we aim to become the shipping company of choice, recognized objectively by customers and other stakeholders for having safe operations. A prime example of a visible part of our safe operation system is the Safety Operation Supporting Center (SOSC). A first-of-a-kind facility in the marine transport industry, this center keeps track of the position and movement of every vessel we operate around the globe, as well as the latest information on weather and marine conditions, on large TV monitors. Under our new three-year midterm management plan, "GEAR UP! MOL," which we launched from fiscal 2010, we have set some clear numerical targets for safe operations. One is to achieve an unblemished record in terms of serious marine incidents, oil pollution, fatal accidents, and cargo damage. We call these the "4 zeroes." |
| A strong financial position is another MOL core competence, and underpinning this is our corporate governance system, which balances both aggressive and protective approaches. After the so-called Lehman Shock, many marine transport companies experienced financial instability. From the perspective of customers, it is difficult to enter into long-term contracts of 10 or 20 years with financially unstable companies. In fiscal 2009, MOL was able to ride out the financial and economic crisis, remaining profitable when many of the world's major shipping companies fell into the red. There were two reasons for this achievement. One is our balanced fleet portfolio which we have built through timely upfront investments. The other was that we minimized losses by setting in motion a fleet downsizing strategy that we had prepared for a crisis. Moving forward, by strengthening business intelligence and upgrading control of total risk, we will ensure that our corporate governance system continues to function effectively and serve us well. This will support our efforts to decisively and accurately develop our businesses to earn the ongoing support of customers and respond to growing transportation demand in line with one of our corporate principles of staying ahead of customers' needs and the demands of the times. |
|
| A Company That Grows With Society-Contributing to the Environment and Society |
| For the marine transport industry, which is trying to keep up with increasing transportation demand associated with global economic growth, particularly in emerging nations, it may seem paradoxical to address global warming and other environmental problems. However, the mission of a marine transport company is to also seek optimal ways of addressing this paradox. In fact, I believe this holds the key to being the shipping company of choice. MOL is strongly committed to addressing environmental issues as one of the world's leading marine transport companies. |
| In September 2009, we announced the launch of the Senpaku ISHIN project-"Senpaku" and "ISHIN" are Japanese words meaning vessel and complete revitalization or reform, respectively. This project makes a clear statement about our environmental stance. We have announced futuristic concepts for car carriers, ferries, and iron ore carriers that have a lower environmental footprint. The project emphasizes innovativeness and achievability. Up to now, MOL has developed and adopted many innovative environmental technologies that were ahead of their time. The Senpaku ISHIN project seeks to realize vessels that emit much lower levels of CO2 in the near future, in the next five years, for instance, by taking these proven technologies and refining them even further. Development of environmental technologies is booming in the shipbuilding and ship machinery industries today, and I'm convinced that Senpaku ISHIN has given further impetus to this trend. We are determined to make steady progress in field-testing core technologies in concept vessels and employing them in actual commercial vessels as we steer shipbuilders and ship machinery manufacturers who supply our vessels in our direction. |
| In terms of social service activities, we will step up activities to contribute to the achievement of the United Nations' Millennium Development Goals, protect biodiversity and the natural environment, and contribute to communities in which MOL conducts business activities. That's because as a company whose growth hinges on development of the global economy and society and whose business activities place a certain burden on the environment, we feel these are activities are important to ensure sustainable growth. |
|
| A Company Employees and Seafarers Are Proud to Work For |
| It is important to remember that it is people who will actually move MOL in the direction I have outlined above. But do we have the organizations, systems and corporate culture to encourage and motivate employees and seafarers to work in the same direction? The answer to this question will have a major bearing on our corporate value. That's why our latest midterm management plan sets numerical targets with respect to the occupational health and safety of seafarers and work-life balance of land-based employees. We will work toward achieving these targets and at the same time upgrade and strengthen our systems so that employees and seafarers can realize their potential with a greater sense of reward. |
| One of the themes of the midterm management plan is to accelerate business development in growing markets. Legal compliance in the MOL Group's global network is of course imperative to respond to the increase in our international business activities in line with this theme. But beyond that, we will work vigorously to instill and execute the principles of the United Nations Global Compact to raise awareness of human rights and social ethics. |
|
| There is a famous line in a series of novels by U.S. author Raymond Chandler-"If I wasn't hard, I wouldn't be alive. If I could't ever be gentle, I wouldn't deserve to be alive." I feel the same way about companies. A company must ensure it is strong and generates profits. Besides that, however, a company has no reason to exist if it doesn't fulfill its social responsibilities and give back to society by creating value. This doesn't mean that companies should do the latter only after first achieving the former. Rather, it clearly means that companies that are aware of their social responsibilities and fulfill them, will grow stronger as a result and become companies of choice. |
| MOL will work to be a "hard" but "gentle" company. In this way, I believe we can raise our corporate value for customers, shareholders, employees and all other stakeholders and growth consistently and synergistically with society. |
|
