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What specific business activities is MOL involved in? |
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centered on ocean shipping. MOL plays a central part of the Group, owning and operating the world's largest merchant fleet. Our ships meet a wide range of international ocean transport needs, with containerships (also called liners), which transport consumer goods such as electrical appliances and apparel; pure car and truck carriers that transport motor vehicles; specialized and tramp carriers (also called dry bulk carriers or bulkers) that transport iron ore, The MOL Group operates global multimodal transport services, or as we like to say, "total logistics," coals, grain, wood chips for paper manufacturing, and other raw materials; tankers that transport crude oil and refined petroleum products; and LNG carriers that transport liquefied natural gas, a clean-burning, environmentally friendly energy source. In Japan, MOL also offers domestic intermodal shipping services through the nation's largest ferry network with Shosen Mitsui Ferry Co., Ltd., The Diamond Ferry Co., Ltd. and other ferry companies. We also offer a range of luxury cruise services through Mitsui O.S.K. Passenger, Co., Ltd.
The MOL Group also has a global network to collect and deliver air and overland cargo and provide warehousing services under the MOL Logistics brand. The MOL Group literally offers every service required to keep cargo moving around the world and maintain the growth of the global economy.
For further information, please click:
Dry Bulkers / Tankers / LNG Carriers / Car Carriers / Containerships /
Logistics / Ferry & Domestic Transport / Associated Businesses / Others /
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What are MOL's management strategies and future vision? |
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MOL Group announced a new Midterm management plan (fiscal year 2007-2009) called "MOL ADVANCE = Mitsui O.S.K. Lines' Action and Direction at the Vanguard of Creating Excellence," which will concentrate on "Growth with enhanced quality" in March 2007.
MOL is now working hard to achieve the goals, including fleet development for growth over the next three years (fiscal year 2010 - 2012).
For further details, please click here.
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How do external factors such as exchange rates and bunker prices affect MOL's business result? |
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Freight rates for logistics services in general, and ocean shipping in particular, are very susceptible to economic conditions around the world, because they are determined by free, open competition in a single worldwide market. We take various steps to minimize these risks, such as concluding long-term contracts that ensure stable revenue, and building specialized ships that meet customer needs. However, we still face risks from declining trade volume, freight rate markets, exchange rates, bunker prices, and so on. The impacts of such risks can be quantified using the following formula for exchange rates and bunker prices.
Most freight rates - the income we receive from ocean shipping - are denominated in U.S. dollars, so we are heavily influenced by the dollar-yen exchange rate. The magnitude of such influence will be calculated using the foreign currency ratio in operating revenue/expense. This sensitivity is about 0.1 billion yen for the 4th quarter of FY2009, in accordance with the announcement of our revised forecast of the FY2009 financial results on January 29, 2010.
Now let's consider the bunker price - the fuel for our ships. We use about 7 million tons of bunker each year, and about 70% of the cost is borne by clients under contracts. So about 2 million tons are influenced by changes in the market price. This sensitivity is 0.05 billion yen for the 4th quarter of FY2009, in accordance with the announcement of our revised forecast of the FY2009 financial result on January 29, 2010.
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How does MOL differ from other shipping companies? |
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Major Japanese shipping companies, including MOL, developed in an era characterized by a high demand of natural resources and a dependence on exports of processed and manufactured goods from Japanese industries. So, as we explained in Question 1, we transport a wide range of cargo. On the other hand, many overseas shipping companies are highly specialized to transport specific cargoes, offering only containership service, for example. This creates an advantage for a major Japanese shipping company like MOL, since we can provide any type of shipping service with our world-class fleet. In addition to these advantages, MOL has one of the largest merchant fleets in the world and holds a major market share in the transport of raw materials such as iron ore and coal and energy resources such as crude oil and liquefied natural gas (LNG). These areas also account for a significant portion of our total revenue. Specifically, we are involved in about 25% of the world's LNG transport business, and have earned a global reputation for safety and reliability in this field. In addition, MOL is the world's No. 1 transporter of iron ore and coking coal. Seaborne trade of these commodities is increasing rapidly thanks to various factors including growth in the Chinese economy.
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Please explain the current status of MOL's corporate governance. |
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MOL's approach has focused on creative, aggressive redesigning of the company, with the goal of improving value to the shareholders and the overall value of the company. We implemented a drastic management restructuring in June 2000, to strengthen the corporate governance, streamline management, and accelerate decision-making.
The details are as follows:
- Greatly reduced the number of directors from 28 to 12
- Appointed outside directors: Among 12, two are from outside the company (three as of June 2002)
- Abolished the Managing Directors Meeting, established the Executive Committee and introduced an Executive Officers Assignment Plan to oversee operations.
- Introduced a stock option system.
In June 2002, to clarify management responsibilities, the company amended the rules of the Board of Directors, clarified the each role between the Board of Directors (Strategy) and the Executive Committee (Execution), and transferred increasing authority to Executive Officers.
For further information, please click here.
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How much does MOL pay out in dividends? |
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MOL pays a dividend to the shareholders who are registered on the list as of March 31, according to resolutions to be passed at the annual general shareholders' meeting.
For FY2009 (ending March 31, 2009), we plan an annual dividend of 3yen per share.
For further information, please click here.
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Please explain MOL's approach to corporate social resposibility. |
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MOL recognizes that corporate social responsibility (CSR) is key to sustainable growth, and was among the first companies to promote more effective corporate governance, a strengthened compliance system, safer navigation, and environmental protection. In June 2004, MOL established the CSR and Environment Committee as well as the CSR and Environment Office in the Corporate Planning Division to develop a more effective groupwide approach to CSR. And in a significant step toward addressing the concerns of a wider range of stakeholders, MOL is the first Japanese shipping company to participate in the United Nations Global Compact, and it continues to strengthen activities aimed at contributing to society.
The company is listed in the world's authoritative social responsibility investment (SRI) indexes, the Dow Jones Stability Indexes and FTSE4 Good Global Index, reflecting the investment community's high regard for our efforts.
For further information, please click here.
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How does MOL deal with compliance issues? |
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The MOL Group Corporate Principles say "We will strive to maximize corporate value by always being creative, continually pursuing higher operating efficiency, and promoting an open and visible management style that is guided by the highest ethical and social standards." To achieve this, the company established compliance regulations and formed the Compliance Committee, to ensure strict compliance.
For further information, please click here.
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How does MOL deal with environmental issues? |
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MOL advocates protecting the environment by maintaining strict standards for safe operation and navigation, as stated in the MOL Group Corporate Principles. The MOL Group has taken an integrated approach to environmental issues, publishing the Environmental Policy Statement, and introducing the Environmental Management System. These measures have been highly evaluated, for example, by our acquisition of ISO14001 certification.
For further information, please click here.
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Please explain MOL Group companies. |
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For further information on MOL Group companies,
Please click here.
Link to web site of major MOL Group companies including cruise ships, ferry, logistics, etc.
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