Our company announced its new three-year midterm management plan MOL ADVANCE (FY2007-FY2009) on March 22, and I am pleased to explain the direction our company will take in the next three years.

Main Theme: Growth with Enhanced Quality - Becoming the Biggest and Best

The most important task for MOL ADVANCE is "ensuring safe operation." As you know, our customers and other stakeholders suffered considerable stress and inconvenience as a result of four serious marine accidents involving our vessels since April 2006. All Group MOL management and employees take this matter very seriously, and we have gone back to basics to devote our full efforts to ensuring safe operation, which is the very foundation of the MOL Group's corporate activities.

A concrete measure for increasing transportation quality: The Safe Operation Support Center opens

Specifically, we are taking steps to thoroughly reinforce the safety of ocean transport in terms of both hardware and software, with an investment of ¥35 billion over three years. We also aim at establishing the world's highest level of transport quality by comprehensive principles of on-site ship management instead of indirect management. We will accomplish this with the vessel-main ship management system.

In addition to "growth," which through the previous plan, MOL STEP, focused on our scale of operations, we now want to emphasize providing the world's highest level of service quality, while ensuring safe operation as our top priority. That's what we mean by MOL ADVANCE's main theme, "Growth with Enhanced Quality."

Achieve growth that outpaces market expansion

Each area of the world economy shows simultaneous, ongoing high growth. Even long-term forecasts call for stable economic growth in advanced nations, and developing countries typified by BRICs economies will continue to grow at a higher level than advanced nations. That means both developing countries and advanced nations that have reaped the benefits of today's international division of labor and globalization will advance in a scenario of "multi-polar economic growth" in spite of various risks. Demand for international ocean shipping has shown rapid growth thanks to increased trade in industrial products, and this still underlies expansionary trends, combined with increased demand for bulk transport backed by higher demand for raw materials and energy in developing countries. We firmly believe the shipping industry will further expand in step with the world economy.

We expect ocean cargo trade to grow by an annual average of more than 5%. The MOL Group aims at sustainable growth exceeding the rate of market expansion, and plans to expand the fleet from about 800 vessels at the end of FY2006 to 1,000 in FY2009 (including spot-chartered ships and those owned by joint ventures).

Sustainable Profit Growth at High Level

We exceeded 170 billion yen in consolidated ordinary income for three consecutive years during the MOL STEP period. We have set our sights on more than ¥200 billion throughout the three years of MOL ADVANCE, as the next stage. The financial targets for the third year, FY2009, are consolidated revenue of ¥2.06 trillion, ordinary income of ¥220 billion, and net income of ¥143 billion. Other financial indices are an ordinary profit margin of 10%, gearing ratio less than 1:1, shareholders' equity ratio (net worth/total assets) more than 40%, and ROA over 7%.

To achieve these financial goals, we will concentrate heavily on allocating our management resources in ocean shipping, which is our Group's core business and an area where we expect significant growth. However, for sustainable growth associated with quality enhancements, we can't just expand the fleet blindly as the market grows. We also need to carefully develop the optimum balance of businesses that generate stable profits and those that can reap the benefits of favorable markets, and conduct timely facility investment that boosts cost competitiveness. What's more, it is important to control facility investment within an allowable risk range, while always monitoring the overall risks facing our Group business.

And we will proactively allocate management resources to growing sectors in logistics and ocean shipping-related businesses.

Strategies to Achieve Our Goals - Promotion of the 3Gs - Growth, Global, and Group

I've talked about the importance of 3G since I was inaugurated as president, but it means Global (overseas deployment) and Group (group management) sustain Growth.

For example, the percentage of container cargo trade from/to Japan has declined to around 10% today by the advancement of international specialization in manufacturing. Even in energy resource transport, trade with developing countries including China shows a huge increase. To achieve the goals set forth in MOL ADVANCE, pioneering and winning business in growing overseas markets will be critical. For that, we will follow the Liner Division, which has already advanced with globalization, and establish sales and marketing activities for other segments using overseas resources, aiming to become a truly global company.

Speaking of Group companies, as a result of increase in profitability through MOL next and MOL STEP, the contributions of their business performance have become much more important. We will restructure corporate organizations with a focus on growth, after we have completed downsizing of our business with rationalization and cost reduction, and seek new synergistic effects.

As the World's Leading Ocean Shipping Company

We have introduced our new Group logo mark at the same time as the launch of MOL ADVANCE.

This new Group logo uses the three letters - M (em), O (o), L (el) that have long been used for the abbreviation of our name, and the deep blue symbolizes the ocean, the main stage for the MOL Group's activities. The Group logo was newly formulated to establish our brand identity as a corporate group and appeal to customers with a unified image.

By sharing this logo mark, I believe we will unify everyone who works within the MOL Group and enhance our comprehensive strength. I hope to promote an image of an excellent and resilient organization that leads the world shipping industry.

Finally, thanks to all of you for your cooperation over the years. We expect even greater success in the future and look forward your continued support.