MOL is currently working to increase the visibility of safe operation processes in order to become a company that customers are confident in and to safely transport the cargo entrusted to us. Specifically, we have introduced objective numerical indicators for measuring safety levels and have set numerical targets based on them. Efforts are currently underway to achieve the targets.

• Four zeroes (an unblemished record in terms of serious marine incidents, oil pollution, fatal accidents, and cargo damage)
• LTIF(*1) (Lost Time Injury Frequency) :under 0.25
• Operational stoppage time(*2) :24 hours/ship or below
• Operational stoppage accident rate(*3): 1.0/ship or below

• (*1)Number of work-related accidents per hour per one million people. Average for all industries (2009) was 1.62; for marine shipping industry, 1.38; for shipbuilding and repair, 1.27. (Source: 2009 Survey on Industrial Accidents issued by the Ministry of Health, Labour and Welfare)
• (*2)Expresses the amount of ship operational stoppage time due to an accident per ship per year.
• (*3)Expresses the number of accidents that result in ship operational stoppage per ship per year.

Our performance in these areas in fiscal 2010 was as follows.

• 1: Did not achieve. An iron ore carrier collided and sank in waters to the east of China's Shandong Peninsula in May 2010. Also, there were two fatal work-related accidents on charter vessels.
• 2-4: Achieved as follows

We will continue to promote greater use of information technology at ship management companies and on board ships and work to integrate ship management systems within the MOL Group. These efforts are geared to raising the efficiency of safe operation management processes between ships and ship management companies and to effectively sharing information on safe operation within the group.

Pirates are not just a cinematic phenomenon. In 2010 alone there were 219 incidents of piracy and 48 ship hijackings in the Gulf of Aden-the entrance of an important shipping lane that connects the Indian Ocean with the Mediterranean Sea through the Red Sea and Suez Canal-and the surrounding waters off the coast of Somalia. Two Japanese navy escort vessels, patrol planes and other measures initiated in March 2009 to protect the shipping lane in the Gulf of Aden have reduced the number of incidents in the area by nearly half. However, pirates using merchant ships and fishing vessels that they have hijacked are becoming more active in a wide area offshore of Somalia, all the way to the Arabian Sea and Indian Ocean, so the risk of an attack continues to increase.

MOL is working to strengthen ship security against the threats of piracy and terrorism and to improve risk management functions on land. The best solution is avoiding navigating through dangerous waters to the fullest extent possible. But in pirate-infested waters we increased the number of people on watch for 24-hour visual monitoring and also strengthened radar-based monitoring activities. We strive to avoid crises by detecting and discovering piracy at an early stage, making accurate predictions and assessments, initiating avoidance maneuvers quickly, and issuing rescue calls to MOL's Safety Operation Supporting Center and other related institutions. However, in March 2011, an MOL-operated oil tanker was attacked by pirates in the Indian Ocean, although the ship was not hijacked. In response, we are reinforcing our crisis management systems with facilities-related measures that include equipment and communication devices for preventing pirate boardings and additional education and training for seafarers.
Under the "GEAR UP! MOL" plan, we are also actively involved in environmental protection measures through safe ship operation and in acquiring and training human resources to foster the kind of sensibility and capability needed to break the chain of errors.

In response to recent serious marine incidents, we have created a training video based on investigations of the causes and distributed it to the relevant departments and implemented measures to prevent recurrence,
including crewmember training at Safety Conference and other venues.
In addition, operational safety workshops for office staff were initiated at the head office in November 2010 to widely disseminate information within the company on measures for reinforcing safe operations, case studies of incidents and measures based on them. The sessions will be held every quarter on an ongoing
basis.
In June 2011, we produced a video entitled "Forging Ahead to Become The World Leader in Safe Operation" that introduces MOL measures to reinforce safe operation. The video is being distributed not only to company departments and MOL-operated ships but also to customers and other relevant outside parties in an effort to raise awareness within the company and promote greater visibility for safe operation measures.