Medium-Term Management Plan “Value for our Next Century – Action for Future -”

「Ordinary income for FY2026, the final year of the current medium-term plan, is expected to be ¥135 billion (+¥35 billion from the May 2026 forecast).」

「Under the next medium-term plan, we will pursue profit growth and improved capital efficiency in tandem, with “growth strategy for the in-house businesses”, “resolving issues in the containership business” and “capital policy” identified as key issues toward achieving ROE of at least 15% over the longer term.」

「Management indicators Latest fiscal 2026 forecast (target) ROE 5% (at least 10%) ROIC 5% (6.0–7.0%) Earnings Ordinary profit of ¥100.0 billion (¥160.0 billion)」

「Ordinary profit: ¥160.0 billion ・Ordinary profit during the medium-term management plan period is progressing steadily toward ¥140.0 billion, and the fiscal 2026 target has been raised to ¥160.0 billion. ・Taking into account upside in operating cash flow, shareholder returns are planned at ¥700.0 billion or more, an increase of ¥200.0 billion from the amount announced in May 2023.」

「ROE: at least 10%; ROIC: 6.0–7.0%; earnings: ordinary profit of ¥140.0 billion. Earnings are progressing steadily toward the ¥140.0 billion target, taking into account the targets based on management indicators, and, in light of growth achieved, initiatives are being pursued with a view to reaching the medium-term management plan target of ¥140.0 billion in ordinary profit ahead of schedule.」

「Our group announced a 5-year medium-term management plan covering fiscal 2022 through fiscal 2026. To quantitatively manage initiatives to increase corporate value, we established the following management indicators and targets: ROE of at least 10%; earnings target of ordinary profit of ¥140.0 billion in fiscal 2026, balancing the earnings power of the in-house businesses and containership business; and a shareholder returns policy totaling approximately ¥400.0 billion to ¥500.0 billion during the medium-term management plan period.」

「To respond flexibly to these changes in the business environment and achieve sustainable growth, our group formulated a medium- to long-term management policy. In addition to establishing 5 new business strategies, including “refining the 4 pillars of our in-house businesses” and “venturing into new business domains”, we aim to increase corporate value and remain a company of choice for all stakeholders by strengthening our sustainability management initiatives.」

「In the third quarter, ONE’s performance was expected to improve further, while strong cargo demand in the containership business was expected to remain firm, leading to an anticipated improvement in our group’s earnings. Accordingly, the fiscal 2020 forecast was changed to ordinary profit of ¥50.0 billion and net income attributable to owners of the parent of ¥65.0 billion. We will continue pursuing the medium- to long-term targets announced in the first quarter, namely ordinary profit of ¥25.0 billion and equity exceeding ¥150.0 billion in the mid-2020s, and ordinary profit of ¥30.0 billion and equity of ¥250.0 billion in 2030. However, in light of earnings improving faster than initially expected, we will also consider reviewing the medium- to long-term targets from the following consolidated fiscal year onward.」

「For fiscal 2020, the forecast was changed to break-even ordinary profit or loss and net income attributable to owners of the parent of ¥20.0 billion, reflecting gains on the sale of assets and other factors.」

「Amid the impact of the spread of COVID-19, our group established the issues to be addressed and basic policies for preparing for medium- to long-term changes in the business environment during the first quarter. For fiscal 2020, we forecast an ordinary loss of ¥28.0 billion, while net income attributable to owners of the parent is expected to break even due to gains on the sale of assets and other factors. For fiscal 2021, we forecast ordinary profit and net income attributable to owners of the parent of ¥10.0 billion each. As medium- to long-term targets, we aim for ordinary profit of ¥25.0 billion and equity exceeding ¥150.0 billion in the mid-2020s, and ordinary profit of ¥30.0 billion and equity of ¥250.0 billion in 2030.」

「In fiscal 2020, we will continue addressing the key issues. At the same time, taking into account the uncertainty surrounding the impact of the novel coronavirus disease (COVID-19) on our group’s business environment, we will focus on damage control, maintain safe operations, prioritize the safety of our vessels’ crew members and all group officers and employees, and implement measures to continue providing stable logistics services as social infrastructure. In addition, with minimizing the impact on earnings as our top priority, we will proceed cautiously with formulating a new medium-term management plan beginning in fiscal 2020, while assessing the transformation of the business environment resulting from COVID-19.」

「In April 2017, our group formulated the medium-term management plan “『飛躍への再生』Value for our Next Century”, identifying “a shift in portfolio strategy”, “upgrading management control and strengthening functional strategies”, and “ESG initiatives” as its 3 key issues, which the entire group is addressing.」

「To respond to major changes in the business environment surrounding the shipping industry and rebuild the management foundation needed to achieve sustainable growth, our group formulated a long-term management policy and a 3-year medium-term management plan covering fiscal 2017 through fiscal 2019, when it will celebrate its 100th anniversary, titled “『飛躍への再生』Value for our Next Century”.」

「To respond to these changes in the business environment and achieve sustainable growth, our group formulated a long-term management policy and a 3-year medium-term management plan through fiscal 2019, when it will celebrate its 100th anniversary, titled “『飛躍への再生』Value for our Next Century”.」

「In March 2015, our group announced a medium-term management plan targeting the fiscal year ending March 2020. However, in light of structural changes in the business environment, including concerns over low demand growth amid increasing uncertainty resulting from the rapidly intensifying slowdown in global economic growth, particularly in China and emerging markets, since the latter half of last year, as well as heightened geopolitical risks such as the refugee issue in Europe, and continued pressure from vessel oversupply, we revised the plan in April 2016 and formulated a new medium-term management plan, “Value for our Next Century – Action for Future -”.」