Iino Building, 1-1,
Uchisaiwaicho 2-chome,
Chiyoda-ku, Tokyo 100-8540, Japan
Phone: (+81) 3-3595-5000 (Switchboard)
Fax: (+81) 3-3595-5001 https://www.kline.co.jp/en/
"K" LINE REPORT
2021
Printed in Japan
CONTENTS
Overview of "K" LINE
- Corporate Principle and Vision
- The "K" LINE Spirit
4 "K" LINE by the Numbers
The "K" LINE Group's Value Creation
6 Message from the CEO
- Management Plan: Improving Corporate Value
- Financial and ESG Highlights
- Message from the CFO
- Special Feature: Providing New Value
24 Roundtable Discussion with Employees
Pursuit of Innovation to Reduce the Environmental Impact and Improve Safety in Navigation
28 Decarbonization Initiatives and Exploration of Growth Markets
30 Improvement of Safety, Environmental Performance, and Quality with Digital Technologies
Foundation for Value Creation
- Management Strategies and ESG/CSR Management
- Safety in Navigation and Cargo Operations
- Climate Change Scenario Analyses
- Strategies for the "K" LINE Environmental Vision 2050
- Basic Human Resource Management Policies
- Corporate Governance
Establishing Sustainable Growth and Raising
Corporate Value
- Realizing Responsible Corporate Behavior
- Compliance
- Risk Management
At the Vanguard of Value Creation
56 At a Glance
58 Business Overview 58 Dry Bulk
60 Energy Resource Transport
60 Tanker Business /
Fuel Strategy & Procurement Business
62 Electricity Business / Offshore Business
64 LNG Carrier Business / Carbon-Neutral Promotion Business
66 Product Logistics
66 Car Carrier Business
68 Logistics and Port Business
70 Short Sea and Coastal Business
71 Containership Business
Financial Section / Corporate Data
- 11-YearFinancial and ESG Data
- Financial Analysis
- Consolidated Financial Statements
- Notes to Consolidated Financial Statements
- Independent Auditor's Report
- Organization
- Global Network
- Major Subsidiaries and Affiliates
- Outline of the Company / Stock Information
About This Report
Editorial Policy
The "K" LINE Group is an integrated logistics company that owns and operates various fleets tailored to worldwide marine transportation needs. We also engage in land transportation and warehousing businesses. The "K" LINE Group has defined the Value ("K" LINE Value) as a symbol of its corporate value. In this "K" LINE REPORT, we explain Value to a wide range of stakeholders, providing both financial and non-financial informa- tion. For more details on each of these initiatives, please visit our website (www.kline.co.jp/en/).
Reporting Period
Fiscal 2020 (April 1, 2020-March 31, 2021)
Note: The report also includes some developments after April 2021.
Scope of Reporting
In principle, this report covers the activities and data of Kawasaki Kisen Kaisha, Ltd. and its subsidiaries and affiliates, except where otherwise noted.
Guidelines Referred to
- International Integrated Reporting Framework
- ISO 26000
- Environmental Reporting Guidelines 2018, The Ministry of the Environment of Japan
- Guidance for Integrated Corporate Disclosure and Company-Investor Dialogue for Collaborative Value Creation, The Ministry of Economy, Trade and Industry of Japan
Forward-Looking Statements
The Company's plans, strategies and future financial results indicated in this report reflect the judgment made by its management based on information currently available and include risk and uncertainty factors. Consequently, the actual financial results may be different from the Company's forecasts due to changes in the business environment, among other factors.
Corporate Principle and Vision
In shipping business, which serves as key logistics infrastructure supporting worldwide economic activity, the "K" LINE Group earns the trust of customers through the provision of safe, reliable marine transportation and logistics services. As an integrated logistics company grown from shipping business,
our corporate principle is to help enrich the lives of people. Under this principle, we will make further improvements
to Value, which represents our unique value as a group.
Corporate Principle
: trust from all over the world
As an integrated logistics company grown from shipping business,
the "K" LINE Group contributes to society so that people live well and prosperously.
We always recognize this principle in our operations.
Vision
Our aim is to become an important infrastructure for global society, and to be the best partner with
customers by providing the high-quality logistics services based on customer-first policy.
Values the "K" LINE Group prizes
Providing reliable and | A fair way of business | Relentless efforts to | Respecting humanity |
excellent services | achieve innovation | Corporate culture that respects | |
Fostering trust from society | |||
Contributing to society | Generating new values | individuality and diversity | |
LINE "K" of Overview
"K" LINE REPORT 2021 | 1 |
Independence and Autonomy,
Broad-Mindedness,
and an Enterprising Spirit
Since its establishment in 1919, "K" LINE has embraced the "K" LINE spirit- independence and autonomy, broad-mindedness, and an enterprising spirit-as a core component of its corporate culture. This spirit has continued to be our driving force as we seek to adapt to the changing times and overcome adversity.
The "K" LINE spirit manifests itself even today in our efforts to implement flexible ideas that are unbound by existing frameworks and create new value.
Looking ahead, we will continue to evolve the "K" LINE spirit as we pursue ongoing growth while responding to the changes in the expectations of the global society and in customer needs.
SPIRIT
Top: CENTURY HIGHWAY GREEN LNG-fueled car carrier
Bottom left: Stock boat under construction preceding "K" LINE's establishment (1918)
Bottom middle: Seafarers at work on a ship
LINE "K" of Overview
2 | "K" LINE REPORT 2021 | 3 |
"K" LINE by the Numbers
Segment | |||||||
Dry Bulk | Energy Resource Transport | Product Logistics | |||||
Business | |||||||
Dry bulk carrier | Thermal coal carrier | LNG carrier | Oil tanker | Offshore support vessel | Car carrier | Short sea and coastal vessel | Containership |
The "K" LINE Group develops its operations based on its four business pillars: dry bulk, energy resource transport, car carriers, and logistics and short sea and coastal vessels. In addition, we invest in containerships, and we have developed a prominent position in the shipping industry as a comprehensive logistics conglomerate centered on shipping. With 47 bases across the globe and diverse human resources on ships around the world, we provide safe and high-quality marine transportation and logistics services to help enrich the lives of people as described in our corporate principle.
Fiscal 2020 Consolidated | |||||||||||
Operating Revenues | |||||||||||
¥625.5 billion | 29.1% | 12.4% | 54.3% | 4.2% | |||||||
Dry Bulk | Energy | Product Logistics | Others | ||||||||
Resource | |||||||||||
Transport | |||||||||||
Number of Vessels | 1 | Drillship | |||||||||
1 | Floating production storage and offloading system | ||||||||||
in Operation | 1 LNG bunkering vessel | ||||||||||
(As of March 31, 2020) | 442 | 181 | 27 | 44 | 16 | 6 | 79 | 43 | 43 | ||
Dry bulk carriers | Thermal coal | LNG carriers | Oil | Offshore support Car carriers | Short sea and | Containerships | |||||
carriers | tankers | vessels | coastal vessels | ||||||||
LINE "K" of Overview
Dry Bulk Carrier | LNG Carrier | |||||
Fleet Scale | Number of Vessels in Operation | |||||
No. 6 in the World*1 | No. 5 in the World*2 | |||||
*1 | Source: Clarksons (As of July 2021). Includes owned vessels and a part of chartered vessels | |||||
*2 | Compiled by "K" LINE based on each company's disclosure documents (As of July 2021) | |||||
*3 | Compiled by "K" LINE based on Hesnes Shipping "AS Year Report" (As of May 2021) | |||||
*4 | Source: Alphaliner (As of June 2021) |
Car Carrier | Containership | |||
Number of Vessels in Operation | Fleet Scale of | |||
Ocean Network Express | ||||
No. 5 in the World*3 | ||||
No. 6 in the World*4 |
For more information on business operations, please refer to Business Overview on pages P58-71
4 | "K" LINE REPORT 2021 | 5 |
Message from the CEO
"K" LINE will continue to fulfill its social mission as a shipping company while providing new value to achieve ongoing improvements
in corporate value.
Yukikazu Myochin
President & CEO
Commitment Represented by
the Fiscal 2021 Management Plan Theme
The COVID-19 pandemic triggered a temporary period of stagnancy in economic activity, while drawing attention to a number of issues that had not previously been apparent. Concurrently, the pandemic stimulated changes in peo- ple's behavioral patterns, such as teleworking, while sparking an increase in concern about reducing our environmental impact. These trends have created a drive for industries to transform themselves in order to achieve decarbonized operations.
"K" LINE's mission is to fulfill its role as a shipping company-that is, ensuring that logistics channels remain fluid-and to continue providing an indispensable piece of social infrastructure that supports people's lives. The COVID-19 pandemic clearly showed the importance of safe and economically sound operation of vessels and of the need to achieve our targets for reductions in our environmental impact. At the same time, the pandemic presented a need to further build upon our expertise in providing safe, high-quality, and eco-friendly services and the engineering and digital technologies that underpin this insight. "K" LINE must also continue to achieve sustainable growth with stable earnings by supplying reliable services while utilizing its expertise and experience to grow together with society and the global environment. This is the commitment represented in the fiscal 2021 management plan's theme of "Connecting the World via Oceans and Technology."
The "K" LINE Spirit Shows True Potential in the Face of Adversity
"K" LINE boasts a long history spanning more than 100 years. Our ability to survive for this long period is a result of our continuous efforts to adapt to the volatile market environment by capitalizing on our strength in sales, acting with a sincere attitude, and offering sales proposals that meet customers' needs. The "K" LINE spirit has been our guiding principle throughout this process. To further reinforce our strength in sales, it will be important for all employees to remain receptive to changes in customer trends in order to respond flexibly on an organizational level.
If we turn to the automotive industry, for example, we will see the acceleration of initiatives for adopting alternative energy sources and contributing to the realization of a decarbonized society. These initiatives take forms such as the transition to electric vehicles and other so-called connected, autonomous, shared, and electric (CASE) technologies.*1 In addition, customers are increasingly expected to reduce greenhouse gas emissions in ways that extend to the direct and indirect emissions from business activities while pursuing reductions in greenhouse gas emissions across supply chains and the lifecycles of their products. For this reason, it is vitally important for "K" LINE to provide safe and reliable transportation, which is at the core of our services, as well as to offer solutions to address customers' decarbonization needs. If we do not, customers might not recognize us as a reliable business partner.
One step forward in this regard was building CENTURY HIGHWAY GREEN, "K" LINE's first LNG-fueled vessel. Completed in March 2021, this car carrier represents a completely new undertaking for "K" LINE and is an amalgamation of the latest technological advancements. In addition to contributing to reductions in greenhouse gas emissions and other environmental impacts, CENTURY HIGHWAY GREEN employs the latest digital technologies and onboard internet infrastructure. Moreover, its construction was funded using climate transition loans*2 designed for financing initiatives for decarbonizing operations (see pages 24-27).
We are already in the process of pursuing new innovations after CENTURY HIGHWAY GREEN. Specifically, we are currently planning to build an LNG-fueledCape-size bulk carrier. Our first LNG-fueled bulk carrier, this will be equipped with the Seawing automated kite system for utilizing wind power, a unique and innovative provision for decarbonization.
These initiatives are all prime examples of the "K" LINE spirit (independence and autonomy, broad-mindedness, and enterprising spirit). In the current highly uncertain business environment, we aim to become a company that transforms adversity into opportunities and perceptively senses changes in order to contribute to the future.
*1 This term refers to technologies expected to transform the automotive industry going forward.
*2 This is a financing program designed to contribute to the transition to a carbon-neutral society by providing efficient funding to the initiatives of companies that are working toward decarbonization.
Creation Value Group's LINE "K" The
6 | "K" LINE REPORT 2021 | 7 | |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
K Line - Kawasaki Kisen Kaisha Ltd. published this content on 22 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 November 2021 08:29:07 UTC.