To our shareholders and investors
Throughout fiscal 2018, global trade showed stable growth despite various concerns related to protectionist policies, including the trade dispute between the United States and China. In addition, the marine transport market performed comparatively well. However, toward the end of fiscal 2018, cargo movements started to slow down and the marine transport market began to weaken. In April 2018, operations commenced at Ocean Network Express Pte. Ltd. (ONE), our integrated containership business venture. Unfortunately, due to teething problems during the first year of operations at ONE, the company posted a large deficit. With that said, MOL was still able to secure a net overall profit thanks to the steady accumulation of profits from medium- to long-term contracts in the Dry Bulker Business, Energy Transport Business, and other businesses, as well as from relatively steady market conditions. As a result, MOL realized ordinary profit and profit attributable to owners of parent that were very close to its initial forecasts.
Before fiscal 2019, we held discussions at Board of Directors’ meetings—which included our outside officers—regarding the formulation of our management plan, “Rolling Plan 2019.” Through these discussions, while acknowledging the issues facing the marine transport industry amid changes in political, economic, and social trends around the world, we developed a thorough understanding of stakeholder needs and of fields in which we have room to grow. We also determined that we will carry out intensive investment in fields where we are strong to further enhance our competitive edge. Our vision for the Company in 10 years is to become a “collective business entity with No.1 competitiveness in respective fields.” With this in mind, we have adopted three core strategies with the aim of realizing this vision: Invest resources in fields where MOL has strengths, mainly in the Offshore Business; provide “stress-free services” that are truly convenient for customers; and develop the Environment and Emission-Free businesses into core businesses.
We have positioned the Offshore Business as a field where we can leverage our strengths. In the Offshore Business, there is a genuine need for energy, primarily in emerging markets. The business is also an area in which we can draw on the expertise and technologies that we have cultivated in the Energy Transport Business. Additionally, we will aggressively invest management resources in other areas in order to better ensure future growth. These areas include LNG carriers, where we expect to develop high-value-added projects based on our track record in operating ice-breaking vessels and supervising shipbuilding in China; chemical tankers, where we aim to realize comprehensive chemical logistics businesses; and ferries, where we can leverage the modal shift occurring against the backdrop of truck driver shortages and heightened environmental awareness. Also, to help conserve the global environment and the oceans and thoroughly address environmental issues, such as global warming, we established the Environmental Management Committee, which serves as the control tower for our environmental strategies. Together with the Environment and Emission-Free businesses, which we are promoting as a means to fulfill our social responsibilities as a company, we will push forward with our environmental strategies.
Since its establishment, MOL has anticipated the needs of its customers and future demand. MOL has also repeatedly taken on challenges and transformed itself. By doing so, MOL has contributed to industries and enriched the lives of people around the world as a multi-modal transport group. Going forward, we will continue to promote highly transparent management and rigorously carry out safe operations, leveraging the strengths of each division as we do so. We will also work to improve corporate value and realize sustainable growth by becoming a “collective business entity with No.1 competitiveness in respective field.” In these ways, MOL will move forward with its business activities under the aim of becoming a corporate group that is continuously chosen by its stakeholders.
We look forward to your continued understanding and support as we endeavor to realize our ambitions.
April 26, 2019
Junichiro Ikeda
President, Chief Executive Officer
Mitsui O.S.K. Lines, Ltd.
