Focused Investment in Logistics, Terminals and Real Estate

「LBC operates 7 terminals in Europe, a hub of the chemical industry, including Antwerp and Rotterdam, and in the US Gulf Coast region, including Houston, Freeport and Baton Rouge, and is one of the world’s largest tank terminal operators for handling liquid chemicals. It has tanks with total capacity of approximately 3 million cubic meters, quay facilities, and facilities for transferring cargo to pipelines, rail and trucks. Through storage services at ports of departure and arrival, it supports the supply chains of customers such as chemical manufacturers and energy companies.」

「Phase 2においては財務健全性をより重視する方針のもと、基礎営業CFの積み上げに加え、これまで以上にアセット入替を促進し、新規の外部資金調達を可能な限り抑制する計画です。」

「Through this acquisition, we acquired onshore storage capabilities at tank terminals. Together with the tank container business in which we have already invested, this will establish a “chemical total logistics service” structure covering ocean transportation, onshore storage and inland transportation, with the aim of becoming a global leader in chemical logistics.」

「In fiscal 2023, profit before income taxes and other adjustments was ¥295.4 billion, substantially exceeding in the first year the ¥240 billion target set for fiscal 2025, the final year of Phase 1 of “BLUE ACTION 2035.”」

「Transformation into a portfolio capable of remaining profitable even during a shipping downturn / Balancing accumulated growth investment with returns that meet shareholder expectations (ROE of 9–10%) / Pre-tax profit: ¥400 billion / Total assets: ¥7.5 trillion / Asset mix of market-sensitive businesses to stable-earnings businesses = 40:60」

「Although profits declined year on year because of the redevelopment of some office buildings owned by ダイビル(株), the core company of the Group’s real estate business, stable profits were secured.」

「As the importance of the real estate business increased following the conversion of ダイビル株式会社 into a wholly owned subsidiary, we changed the presentation method so that the real estate business, previously included in “Related Businesses,” is presented separately as a reportable segment.」

「“Raise the earnings level of non-shipping businesses (offshore, offshore wind power generation, logistics and real estate) from approximately ¥14 billion in fiscal 2021 to ¥60–80 billion in fiscal 2035.” / Of this amount, approximately ¥100 billion will be invested in new real estate projects over 3 years.」

「Focused investment in the offshore business: investment of ¥43 billion decided, including additional contributions to existing businesses (included in the ¥90 billion referred to above)」

「Within the offshore business as a whole, we will shift our focus toward FSRUs and LNG-powered vessels, while also concentrating on LNG transportation and handling, areas in which we have particular strengths.」

「We will designate as priority areas for management resources businesses expected to grow by leveraging our expertise and technology, primarily in the offshore business and LNG shipping business, particularly high-value-added fields, and seek to expand and strengthen them.」

「In the shipping business, we will make effective and focused allocations of management resources to business fields expected to generate stable profits. In shipping-related divisions such as logistics, ferry and offshore businesses, we aim to expand and strengthen business fields with growth potential.」

「While making the shipping division the foundation of our business, we will allocate management resources on a priority basis to shipping-related divisions such as logistics and terminals, as well as to the real estate business.」