Improving Free Cash Flow by Narrowing Investment Projects and Monetising Businesses and Assets
First written in FY2019. 5 of 13 entries say "Advanced", first in FY2020. Latest entry: FY2026.
Mitsui O.S.K.Lines moved to the "Worse" side of this theme in 2026.
0 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「During the three years of Phase 1 (fiscal 2023 through fiscal 2025), we actively captured opportunities and executed ¥2.0 trillion in investment, including ¥1.6 trillion in stable-earnings businesses, by accumulating investments at a pace exceeding the initial plan. In Phase 2 (fiscal 2026 through fiscal 2030), while adjusting the pace of investment brought forward in Phase 1, we will continue growth investments, selectively using external funding when attractive investment opportunities arise.」
We shifted from front-loading investment in Phase 1 to a policy in Phase 2 of adjusting the pace of investment and continuing growth investments while emphasizing asset rotation and cash generation. - FY2026-H1AdvancedAnnual report
「Cash flow from investing activities was negative ¥514.2 billion (negative ¥142.4 billion in the same period of the previous year), mainly due to the acquisition of property, plant and equipment, principally vessels, and the acquisition of shares in subsidiaries and other entities involving changes in the scope of consolidation.」
Cash flow from investing activities increased from negative ¥142.4 billion in the same period of the previous year to negative ¥514.2 billion due to the acquisition of property, plant and equipment, including vessels, and shares in subsidiaries, including LBC. - FY2025RaisedAnnual report
「For the three years of Phase 1 (fiscal 2023 through fiscal 2025), we established a total investment plan of ¥1.34 trillion(*), and to date have identified investments totaling ¥1.875 trillion, exceeding this investment plan. Of this amount, ¥959 billion has been approved for environmental investments that will contribute to reducing GHG emissions by our company and worldwide.」
We identified cumulative investments of ¥1.875 trillion, exceeding the Phase 1 investment plan, and approved ¥959 billion in environmental investments. The investment scale expanded from the investment progress previously disclosed. - FY2024AdvancedAnnual report
「While maintaining a balance between market-sensitive and stable-earnings businesses, we have already approved more than ¥1.1 trillion in investment toward achieving our fiscal 2035 targets. Of this amount, ¥658 billion has been approved for environmental investments that will contribute to reducing GHG emissions by our company and worldwide.」
Against the Phase 1 investment plan of ¥1.2 trillion, more than ¥1.1 trillion has been approved, and an additional investment capacity of ¥140 billion was generated on the back of upside in operating cash flow. - FY2024-Q2AchievedAnnual report
「Based on this, the share transfer and other related transactions were completed on 2 November 2023.」
The transfer of ITI as a measure to monetize the business and assets was completed on 1 November and 2 November 2023 following the change in structure. - FY2024-Q1Change in ITI sale scope and completion dateAnnual report
「First share transfer: Transfer scope, etc. Agreement enabling the acquisition of 222 shares of ITI and a 34.5% interest in TraPac, LLC (ITI's wholly owned subsidiary and an operating company that operates container terminals at the Ports of Los Angeles and Oakland in California, United States; hereinafter, “TraPac”). Completion date: September 2023 (scheduled) / Second share transfer: Transfer scope: 778 shares of ITI. Completion date: September 2023 (scheduled)」
For the sale of ITI as a measure to monetize the business and assets, the transfer scope and ownership structure were changed, and the scheduled completion date was changed to September 2023. - FY2023RaisedAnnual report
「We expect total investment of ¥3.8 trillion over the 13 years from fiscal 2023 through fiscal 2035. In Phase 1 (fiscal 2023 through fiscal 2025), we expect total investment of ¥1.2 trillion(*), of which ¥650 billion will be allocated to environmental investments such as developing an alternative-fuel fleet and expanding low- and decarbonized-energy businesses.」
The focus on investment selection and asset monetization was expanded into a proactive investment plan of ¥3.8 trillion through fiscal 2035, ¥1.2 trillion in Phase 1 and ¥650 billion in environmental investments. - FY2023-Q3AdvancedAnnual report
「Consideration for the transfer to Transferee 2 Approximately US$212.5 million / Date of the second share transfer (date of change in consolidated subsidiary) March 2023 (scheduled)」
Regarding the monetization of the business and assets through the transfer of ITI shares, the consideration of approximately US$212.5 million for the transfer to ONE or a designated corporation and the scheduled completion date of March 2023 were disclosed. - FY2023-Q2AdvancedAnnual report
「For the first transfer of these shares to Transferee 1, the consideration is expected to be approximately US$950 million (approximately ¥136.4 billion).」
The plan to monetize the business and assets was made specific through the decision to transfer all shares of ITI, the holding company for the container terminal business. The consideration for the first transfer is approximately US$950 million, and the second transfer is scheduled to be completed in February 2023. - FY2022ReframedAnnual report
「We expect total investment of ¥1.9 trillion over the six years from fiscal 2022 through fiscal 2027, including ¥1.6 trillion in new investments. Of this amount, we expect to invest ¥1.0 trillion(*) from fiscal 2022 through fiscal 2024.」
The focus shifted from securing free cash flow and selecting investments to proactive investment following improvements in financial strength, and the investment plan was reorganized as ¥1.9 trillion over six years and ¥1.0 trillion from fiscal 2022 through fiscal 2024. - FY2021AchievedAnnual report
「Considering an increase in the new investment cash flow allocation while securing ¥100 billion in free cash flow as planned」
We proceeded with the selection of investment projects and monetization of businesses and assets, securing the ¥100 billion in free cash flow set out in the Rolling Plan 2020 as planned. - FY2020AdvancedAnnual report
「We will seek to secure funds by returning laid-up and short-term chartered vessels, in principle freezing new investments, and disposing of assets.」
The policy of selecting investment projects and monetizing business assets was translated into specific measures under COVID-19: in principle freezing new investments, laying up and returning vessels, and disposing of assets. - FY2019First statedAnnual report
「With a balance between investment and financial discipline in mind, we will narrow our investment projects, promote the monetization of businesses and assets, and seek to improve free cash flow.」
We newly specified the selection of investment projects and monetization of businesses and assets as means of balancing investment efficiency and financial discipline.