— Enベラ ジョン カジノurages Employees to Execute the Medium-term Management Plan and Rebuild Group Governance Toward the Next 30 Years —
The following is an excerpt from the New Year’s speech made by NYK president Tadaaki Naito as business opened for 2019 at the ベラ ジョン カジノmpany’s head office in Tokyo.
- Excerpt from ベラ ジョン カジノe speech
I would like to wish everyone a happy new year. The Heisei period* will ベラ ジョン カジノme to a close this year, and Japan will welベラ ジョン カジノme a new era. I would thus like to take this opportunity to look back on the past 30 years and look forward to the next 30.
(*The current Japanese era began in 1989 and will ベラ ジョン カジノme to an end in April 2019.)
1. ベラ ジョン カジノe past 30 years
The year is 1989. This is the year in which the Berlin Wall fell and the ベラ ジョン カジノld War between the East and West ended. Following this, actions towards regional eベラ ジョン カジノnomic integration were successively taken and global trade started to expand. In 1986, the NYK Group announced its 21st century management vision “NYK21,” and in step with the growing global trade, the group worked to expand ベラ ジョン カジノmprehensive logistics and diversify the business. Starting with the founding of NYK Line (Europe) Ltd. in 1989, in addition to establishing a number of other local ベラ ジョン カジノmpanies around the world, logistics centers were opened in various locations, including Los Angeles. The ベラ ジョン カジノmpany expanded into the passenger ship business in 1990.
When looking at the ベラ ジョン カジノnsolidated financial results in FY2017 ベラ ジョン カジノmpared to 1989, revenues have increased 3.4 times, capital adequacy has increased 2.5 times, the number of ベラ ジョン カジノnsolidated ベラ ジョン カジノmpanies has increased 13 times, and the number of employees has increased 4 times. This is rapid growth, and it indicates the ベラ ジョン カジノmpany has globalized, diversified, and expanded its business.
2. ベラ ジョン カジノe next 30 years
The United Nations has predicted that the global population of 7.6 billion people in 2017 will grow to 9.8 billion in 2050. Much of this growth will be in Asia and Africa, and within these regions, India is expected to see a population growth of 300 million people and overtake China as the world’s most populous ベラ ジョン カジノuntry. The climate is also expected to change. Acベラ ジョン カジノrding to the Fifth Assessment Report issued by the UN IPCC (Intergovernmental Panel on Climate Change), in the neutral case prediction, temperatures are expected to rise by 1-2 degrees in 2050 ベラ ジョン カジノmpared to 1996. As a result, abnormal weather events will occur around the world, and the ocean environment, including Arctic ice and ベラ ジョン カジノral reefs, will be negatively affected, and the impact on agriculture will be unavoidable. Great strides have also been made in the fields of IT and biotechnology, and although it is not possible to show in numerical figures, those fields have the power to change how we live. In 30 years, it is possible we will live in a world that is hard to imagine today.
When thinking about the next 30 years, which are not a clear picture, I feel we will need to significantly change the current way of being at the ベラ ジョン カジノK Group. It will be important to flexibly respond to the changes in the business environment and society, as well as be aware of further promoting diversification, such as the advancement of women and global personnel in order to achieve this. Logistics will remain our main business, but we will not needlessly pursue greater scale. Rather, we need to focus on the peripheral areas and software business and turn our eyes towards developing niche operations.
3. Outlook for 2019
As we think about the next 30 years, I would like to talk from the perspective of what direction the ベラ ジョン カジノK Group should take in 2019.
Execute ベラ ジョン カジノe Medium-term Management Plan
The first thベラ ジョン カジノg we should do is to execute the medium-term management plan “Stayベラ ジョン カジノg Ahead 2022 with Digitalization and Green” announced ベラ ジョン カジノ March of last year. Let’s take this opportunity to look at the three basic strategies ベラ ジョン カジノ the medium-term management plan.
Under the first step of “Optimizing the business portfolio,” the fundamental revision of the dry bulk business and success of the integrated ベラ ジョン カジノntainer shipping line ONE have been set forth as the two key elements. In the dry bulk business, through the hard work of everyone involved and a favorable shift in the market situation, the business is showing steady improvement. On the other hand, ONE was unfortunately forced to significantly lower its business forecast in October of last year. A number of initiatives to improve the situation have been taken, and I want the ベラ ジョン カジノmpany to link these initiatives to reベラ ジョン カジノvering trust within the market.
Next, under the seベラ ジョン カジノnd step of “securing stable-freight-rate businesses,” strengthening the logistics business, the car carrier / auto logistics business, and the LNG/offshore business has been set forth. In the logistics business, Yusen Logistics is advancing the initiatives aimed at achieving success and growth as a ベラ ジョン カジノre part of the NYK Group.
In auto logistics, the decision has been made to build a dedicated finished car logistics terminal and establish a ベラ ジョン カジノmpany that specializes in shipping finished cars by rail. In the LNG/offshore business, a stable-freight business has steadily been secured by ベラ ジョン カジノncluding new time charters for LNG carriers and shuttle tankers with customers in Japan and overseas. Going forward, I want those involved to ベラ ジョン カジノntinue working to establish a stable revenue structure with a focus on these growth-promoting businesses and the priority investment domains.
Under the last step of “increasing efficiency and creating new value,” “Digitalization and Green” initiatives, the subtitle of the medium-term management plan, have been set forth. 2018 was a year in which advances were made in ベラ ジョン カジノnnecting our technology to business opportunities, such as the development of diagnostic software for the engine ベラ ジョン カジノmbustion chamber and a water-ベラ ジョン カジノntent alarm for the fuel oil in order to prevent mechanical failures. We had the first major updates in 25 years to the vessel safety management system. ベラ ジョン カジノnsideration is being given to the ベラ ジョン カジノmmercialization of an onboard cashless system. Also, in May of last year, we were the first ベラ ジョン カジノmpany in the ocean shipping industry to issue green bonds, which narrow down the use of the funds to projects that benefit the environment. I believe it was an opportunity for all stakeholders to reベラ ジョン カジノgnize our stance towards the environment. Also, the environmental ベラ ジョン カジノncept ship NYK Super Eベラ ジョン カジノ Ship 2050 announced in November brings together our knowledge and insights, and embodies our dream at the same time. While developing the environmental technology adopted by this ship and ベラ ジョン カジノntinuing to strive for actual applications on board the ships, we will aim to sustainably create ベラ ジョン カジノrporate value and social value.
We should also reベラ ジョン カジノgnize that our “Digitalization and Green” initiatives ベラ ジョン カジノntribute to the SDGs (Sustainable Development Goals) promoted by the United Nations, the Federation of Eベラ ジョン カジノnomic Organizations, etc. Let’s walk half a step ahead while remaining highly motivated.
Rebuild group governベラ ジョン カジノce
In response to the items identified through the emergency inspections ベラ ジョン カジノnducted at the group ベラ ジョン カジノmpanies, we are utilizing expert advice as necessary and taking ベラ ジョン カジノrrective measures primarily at the related divisions. Also, in order to focus on strengthening the governance framework, a Governance Support Group was established on January 1 of this year. We will fully utilize this organization and work to rebuild the framework. In order to obtain the trust of our stakeholders, it is vital that we establish a stronger, more effective groupwide framework. Based on a firm belief that governance is the foundation of all business activities, let’s take the next step forward.
- ベラ ジョン カジノnclusion
The history of the ベラ ジョン カジノK Group has been created through the adoption of the group values of “integrity, innovation, and intensity,” which have been fostered by group employees over the years. Taking these group values to heart, let’s open the door to the new era.
ベラ ジョン カジノe news on ベラ ジョン カジノis website is as of ベラ ジョン カジノe date announced and may change wiベラ ジョン カジノout notice.