On October 2nd, Nippon Yusen held a ceremony at its head office in Tokyo to commemorate its 141st anniversary, where President Takaya Soga addressed the group's employees.
President Takaya Soga giving a greeting.
President Soga stated that as the current medium-term plan, which began in fiscal year 2023, enters its final year, the company's capital policy has brought its expanded equity capital closer to an appropriate level and directed cash flow towards additional shareholder returns and growth investments, resulting in "progressing almost exactly as planned."
In terms of business operations, the company has strengthened the competitiveness of each business through M&A and business integration, including the establishment of NYK Energy Ocean in the energy sector by inheriting approximately 8% of the business and assets of ENEOS Ocean, the establishment of NYK Bulkship Partners in the dry bulk sector, the complete acquisition of SAGA Welco and a tender offer for NS United Shipping, and the acquisition of Movianto, a European healthcare logistics company, by Yusen Logistics in the logistics sector.
Regarding the new medium-term plan, the plan is to verify the hypotheses made when the current plan was formulated, review the areas that have not progressed as expected, and then set new hypotheses.
President Soga stated, "While the current medium-term plan had optimizing the balance sheet as one of its main pillars, the new medium-term plan will start from a point where the optimization has been largely achieved, so the approach to capital policy will naturally change." He also indicated that the new medium-term plan will reflect the returns on growth investments, which have been difficult to show in numbers until now, as well as the aspirations of employees around the world for their growth.
Furthermore, he stated the company's policy: "We will focus even more on our technological capabilities, which are the source of the NYK Group's competitiveness, and use this to differentiate ourselves."
Under its current medium-term plan, the company has also been working on new business and technology development, including digital transformation (DX) utilizing AI, environmentally related businesses such as offshore wind power and ammonia-fueled ships, development and demonstration of autonomous ships, and concepts for offshore rocket launch and recovery platforms and offshore data centers. Based on these technologies, the Japan Post Group will continue to take on challenges facing Japan, such as labor shortages.
Finally, an explanation regarding the relocation to Yokohama City. The current second-generation Yusen Building in Marunouchi is scheduled to be demolished in 2027, and construction of the third-generation Yusen Building will begin. The relocation to the new Yokohama Building will begin in the spring of 2027.
President Soga acknowledged the increased commuting time and the burden of dropping off and picking up children from daycare, and explained that the company would work with the labor union to consider and implement several measures to alleviate these burdens. He concluded by saying, "The great upheavals of the times and changes in the business environment will continue, but let's overcome this era together, staying optimistic, bold, and flexible, leaving no one behind."
NYK Line/New LNG carrier for China CNOOC Group named "GREENERGY RIVER"
