Transcription
Management Planin Fiscal Year2021Rolling Planning10 th May, 20211
ContentsTheme for Management Plan in FY2021p.3-5Management Plan Review in FY2020p.6Management Plan in FY2021p.7-10Initiatives for Decarbonization and Sustainability Managementp. 11-14Business Planp. 15-18Strategies for specific businessesp. 19-23２2
Theme for Management plan in FY2021Connecting the Worldvia Oceans and TechnologyAs a professional maritime shipping group,we are stepping ahead into the future,leveraging technology to support missions that the times demand.33
Theme for Management Plan in FY2021Fulfilling the societal mission of themaritime shipping industryThe COVID-19 pandemic has brought big changesin global values and behaviors. As our pastchallenges such as our environmental initiativesand use of digital technologies grow more rapidly,we are stepping up our efforts. At the same time,the maritime shipping industry’s social missions aregetting more important as infrastructure supportingfor global logistics safely and securely.Realizing social sustainabilityAs the world economy shifts into recovery mode,we believe the movement of goods will continue toincrease gradually. Our aims are to enhance thevalue of our enterprise and work for the realizationof social sustainability by providing economic andsocietal value that moves us forward into the futurein new business areas, particularly those related tothe environment, and on the global stage,especially in the growth markets in Asia.写真は（仮）4
Theme for Management Plan in FY2021A company that all stakeholderswill continue to turn toRefining our skills as a professionalmaritime shipping companyOur customers’ business environment isalso undergoing vast changes. As thelevel of safe and secure service quality isalso rising, due to greater use of digitaltechnologies, we have been honing ourenvironmental technologies to help ourcustomers solve their problems. We aimto be the kind of company that allstakeholders will continue to turn to.Uncertainties about the future aregrowing, and as a professional maritimeshipping group we are striving to refine avariety of technologies, both in terms ofinfrastructure and services. This is howwe hope to make a positive contributionto creating a sustainable world throughour business. The "K"LINE Group is allworkingtogethertoaddressthischallenge, with our eyes set on the future.5
Management Plan Review in FY2020Aiming for sustained improvement in corporate value（Progress of Management Plan in FY2020） Firmly protecting our business in the short term Progress as planned Fleet Scale Optimization：Reduced by 25 vessels in FY2020 and made our fleetleaner and stronger. Refocus investments：Continued to refocus investments as planned Initiatives for Safety/Environment/Qualityand Growth Strategy Reduction of greenhouse gas emissionsExpand introduction of LNG- fueled vessels Expansion of LNG bunkeringbusinessExpand introduction of K IMSR&D for SeawingCCS Demonstration trials （*１）（*２）（*３） Secure liquidity on hand Formulated the revisededition of "K"LINEEnvironmental Vision 2050Continuation of safe vesseloperation and navigation Progress as plannedStably secured cash equivalent to more than three months’ turnover to prepare for anunforeseen business circumstances by COVID-19 pandemic Expand shareholder’s equity Progress as planned Progress well aboveexpectationsSignificant improvement in ONE earnings and completion of the sale of shares ofconsolidated subsidiary operating container terminals on the North America west coastaccelerate progress toward shareholder’s equity target of 150 billion yen by mid-2020s*１ The K-IMS system enables visualization of ship speed, output power, and fuel consumption in the crucial period just before and after docking. The system enables optimal operation by immediately and accurately distinguishing a deteriorationin performance and assisting in identifying the cause.*２ The Seawing system adds natural wind energy to power a ship with a kite mounted on the ship bow and expected to reduce emissions by more than 20%, about 5,200 tons of CO2 per vessel annually.（To be introduced after 2022 and planned more efficiency by using datum from K-IMS system ）*３ Carbon Capture and Storage (CCS) is a emission reduction process by capturing and storing carbon dioxide (CO2) emissions from the use of fossil fuels to prevent carbon dioxide (CO2) from being released into the atmosphere.This project conduct CCS demonstration trials at sea and named it”Carbon Capture on the Ocean”(CCOcean).6
Management Plan in FY2021MegatrendsEnvironment surroundingMaritime shippingGlobal trendsPreparing for major trends and changesin the world by 2025 and beyond To realize both social sustainability and business activity Using energy strategy and life-cycle assessment to acceleratemovement toward low-carbon or zero-carbon footprint Growing uncertainties about geopolitics, as exemplified byUS-China conflict Values are changing due to digital natives and contactavoidance behavior Generating added value through alliances that transcendbusiness categories and national boundaries Faster pace of change in business environment Reaffirming the importance of maritime shipping asinfrastructure“K”LINE Group’s CorrespondenceEvolving flexibly to dealwith the uncertainty of the futureAppearing both 「Opportunity」 and「Threats」 at the same time Responding to a changing customer business environment‣ Transitioning to low carbon / zero carbon, and our role in the energyvalue chain‣ Shifting focus overseas as growth in Japan market flattens‣ Automotive industry trends such as connected, autonomous,shared, electrified (CASE) Enhanced focus on safety and quality Supply chain changes and split economic bloc bygeopolitical factors Trends in environmental technologies, and possibilities forfresh demand for marine transport Low-carbon technologies / alternative fuels andreplacement of aged vessels Growth industry as a global infrastructure“K”LINE Group’s CorrespondenceCoping with change throughadvanced efforts and originality7
Management Plan in FY2021 Business StrategyForwarding to Growth in Corporate Value Compatibility with Sustainable Society Refining our Four-pillar BusinessDry Bulk, Energy Resource TransportCar Carrier, Logistics・Coastal and Short Sea Venturing into new business areasLeveraging our experience to venture intogrowth areas with trusted partners Fortifying our ability to provide clients with new ideas Renewable energy area (Offshore Support Vessel, etc.) Strengthen our business base in growth markets Foundation of JV company regarding offshore windpower generation in Japan Continuing to our fleet optimization in line with plans Prioritizing stable earnings and selectivity in investment, whilealso studying incorporation of growth areas with undertakinga business risk to some extent Demand for transport utilizing new energy (Ammonia,Hydrogen, CO2, etc.) Transportation by Small Scale LNG Carrier Further Improvement of safety and service qualitythrough better use of data LNG-related business such as LNG Bunkering Vessel Rigorous pursuit of efficiency in vessel allocation Providing new value using DX Accelerating businessdevelopment abroad, particularlyin Asia Developing a global business, especially in growthmarkets such as Asia Collaboration with global partners, leveraging our groupnetwork Using low carbon / zero carbon technologies Achieve Further Competitivenessin Containership business “K”LINE, as a shareholder, continue to support ONE asContainership Business is one of our importantbusiness. Continuing to expand a stronger financial base8
Management Plan in FY2021 Business Strategy8 theme engaging our entire company to support our business strategyStrive to boost corporate value by advancing business strategy,function strategy leveraging company-wide initiativesBusiness StrategySafety・Service QualityProviding safe, reliable, high-quality services our customerswill seek outEnvironment・TechnologyAdvancing our environmental technologies such as low carbon/zero carbonGovernanceMore thorough approach to governance and complianceGroupManagementSharing knowledge throughout the whole group, optimizingbusiness management and operationsHumanResourceDeploying in-house talent and outside knowledge to get theright resources in the right placesFinancialBaseStrengthening and stabilizing our financial baseDXOperationalefficiencyGenerating value through digital technologiesE n h a n c e C o r p o ra t e Va l u e8 core themeCompany-wide initiativesFunctional strategy spanningour entire organizationImproving operation efficiency through advances in company-wide BPR9
Management Plan in FY2021 Business StrategyAccelerating business development abroad, particularly in Asia"K"LINE Group’s Four-pillar Businessand Regional strategy in AsiaDry BulkEnergy ResourceTransportFurther strengtheningtransportinbothemerging markets andbetween third ngthening salesCar CarrierLogistics・Coastaland Short SeaResponding to EVgrowth, particularlyin ChinaBusinessdevelopmentrooted in the area Regional strategy in AsiaGroup major site Key points Energy policy and Environment-related business Expand overseas site EV growth and Changes in Automobile Logistics Collaboration with local partners Growth in population and purchasing power Generating synergies between"K"LINE Group Training Management personnelincrease demand for products logistics Demand trends for Iron and steel in India Strengthening trilateral trade10
Initiatives for Decarbonization and Sustainability ManagementRoad map for growth strategy based on sustainability vironmentNew TechnologyR&D2025Key Points on low-carbon/Zero-carbonMaking progress toward our goal of 50%improvement in CO2 emission by 2030, throughintroduction in LNG-fueled vessels, bunker-savingequipment, fine-tuning of operations, and use ofbigger-size vesselInitiative by Project Team reporting directly to CEOInitiatives Develop next-generation automation ship navigation systemR&D alternative fuel and fuel supply Promoted to formal internal committee（FY2021）Onboard work-style reformLaunch environmentallyfriendly flagshipsupporting 2050 targetsInitiatives for AutomationShip Navigation Delivery of LNG-Fueled Digital Flagship Car CarriersFueLNG(*）LNG Bunkering Vessel in Ise-BayExpand Kawasaki - Integrated Maritime SolutionsimplementationStart CO2-free hydrogen supply chain HySTRACut GHG emissionsby 50%Develop zeroemissions flagshipInitiatives to promote fullyAutomation Ship Navigation2050‘s Target of Environmental vision DecarbonizationPromote zero emissions minimizingenvironment impactExpand safety, environment, service-qualityinitiatives Implementation of SeawingConduct CCS demonstration trial Promoting trials and implementation of nextgeneration ship-to-shore communication systemsImproving ship-to-shore video communicationsBuilding and maintaining onboard cyber securityPromote ongoing R&D Projects at present 2050‘s TargetImprove CO2 emissionefficiency by 50% Role in readying new socialinfrastructure Adding value for customers Replacement of bunker fuel for ourfleet2030‘s Target of Environmental vision 2030’s Target *FueLNG is a joint venture between Keppel Offshore & Marine and Shell Eastern Petroleum (Pte) Ltd and works to build a world-class LNG bunkering network and encourage the adoption of LNG as a marine fuel.11
Initiatives for Decarbonization and Sustainability ManagementEnvironmental Promotion SystemNew organization for environmental management promotion with building and operatingDRIVE GREEN NETWORK（*1）Board of iesPresident & CEOManagement ConferenceCorporate SustainabilityIR Communication GroupEnvironment ManagementGroupCarbon-NeutralPromotion GroupGHG ReductionStrategy GroupFuel Strategy &Procurement GroupAdvanced vironmentalEMS (* ogyInnovationFuel INE Group are building and operatingDRIVE GREEN NETWORK (DGN), aframework to promote environmentalmanagement for the entire Group.We are using DGN to centrally control our environmentalmanagement initiatives (such as setting environmentalpolicies and targets and working to achieve them) throughinternal audits and the like. We aim to continuously pursueenvironmental protection activities by actively using thePDCA cycle while ensuring environmental complianceacross the entire Group.＊１The name “DRIVE GREEN NETWORK” reflects our desire of inheriting the spirit put into the construction ofthe DRIVE GREEN HIGHWAY, our environmentally-friendly next-generation flagship completed in 2016under the concept of “getting one step ahead for the future”. “K”LINE Group is promotingenvi ronmental measures based on "K" LINE Envi ronmental Vision 2050 that is the G roup’slong-term environment management visi on toward 2050.As an envi ronmental frontrunner, we will continue to aim for the realization of being a business that enables agreater number of people around the world to enjoy the advantage of marinetransportation characterized by a lower environmental load and higher efficiency.＊２ We have established an EMS based on ISO 14001(*ISO is the International Organization forStandardization) and operate it to make constant improvements by identifying environmental impactsand minimizing them. In February 2002, we obtained certification for our EMS from a third-partyorganization and started its operation. Since then, we have been striving to enhance ourenvironmental activities by confirming through reviews conducted annually and at the time ofrenewals to ensure that our EMS complies with the ISO 14001 standard, is conducted in line with thePDCA cycle, and is improved and corrected accordingly.・Corporate Sustainability Management CommitteeEnvironment/Technology CommitteeAlternative Fuel Project Committee12
Initiatives for Decarbonization and Sustainability ManagementEnvironment-related InvestmentEnvironment investment budget 100.0bln scale（From FY2021 for 5years in nvironmentalresponseequipmentAmounts 25.0blnOutlineInvestment and R&D for alternative fuelstechnologies, other new low carbon / zero carbontechnologies, improved fuel efficiency 10.0blnSOx Scrubber,Ballast Water Treatment System,Seawing（*１）,etc.New businesscontributing tolow carbon 10.0blnLNG Bunkering Vessels, Renewable Energy-relatedBusiness, etc.Vessels usingalternative fuels 50.0 70.0blnOne LNG-fueled Car Carrier delivered in FY2020.Now under considering further new orderOther Initiatives Promoting investment in low carbon by setting ICP(*2)on investmentEvaluate investment projects with to a benchmark economic value of 4,000 yen future revenue contributionper ton of CO2 emissions . Promoting investments that incorporate transition finance*1 The Seawing system adds natural wind energy to power a ship with a kite mounted on the ship bow and expected to reduce emissions by more than 20%, about 5,200 tons of CO2 per vessel annually.（To be introduced after 2022 and planned more efficiency by using datum from K-IMS system ）*2 Internal carbon pricing (ICP) means carbon pricing that is set and used inside the company.13
Initiatives for Decarbonization and Sustainability ManagementMaximize our organizational and individual strengths to be professionalTraining personnel and strengthening our organization HR strategy aims to help all our employees maximize their potential We strive to create an environment where each and every “K” LINE Group employee can maximizetheir capabilities and achieve strong results.‣ Promote personnel training based on each individual’s career plan‣ Strengthen development of each employee’s potential through seminars and OJT and develop professionalpersonnel of marine shipping‣ Build a diversified employee base capable of acting globally with strong specialist knowledge and consultingBetter work-life balance Create the workplace to be a place where people can enjoy their work Promote ongoing efforts to improve communication and engagement throughout the company. Creating a safe, secure workplace environment (better work-life balance, stronger support for bothwork and life events)Ongoing efforts to work style reform and increase operation efficiency Support for safety in navigation Improving the quality of our safety measures by promoting better ways of onboard working and strengthening ties betweenonboard and onshore operations Improving onboard work style reform, promoting redesign of our systems, simplification and greaterefficiency of operations, and a greater diversity and optimization of onboard periodStrengthening seafarer’s ability to ensure safety and quality, and improve non-technical skills Throughmore thorough training of qualified seamen,‣ Training specialist and better analysis of problems and near-misses, are linked to accident prevention, stronger expertise andtechnical skills through better onboard/onshore cooperation, etc.Promote a better environment for onboard operations by advancing digitization on our fleet(K-Smart Project)‣ Initiatives for setting up business Wi-Fi onboard ship, improvement of the onboard network environment andbetter ship-to-shore communications14
Business PlanMedium- and Long-term TargetsProfit level/Financial Indicators Mid-2020s FY2030 30bln 50blnEquity Capital 300blnor more 400blnor moreEquity Ratio30%or more40%or moreOrdinary IncomeROE（Return on Equity）10%or more15
Business PlanStabilize Financial BaseBillion yen％Equity Capital50040400400.0300Equity Ratio20030Ordinary IncomeBillion .10FY2019FY2020FY2021FY2021 ForecastsExpect to ordinary incomefor “K”LINE own businesseswill total 12.0 billion yen,and roughly 33.0 billion yenin containerships Business.Mid2020’sUntilFY20300Medium- and Longterm TargetsAs a medium- to long-termgoal, we aim to stablygenerate 30.0 billion yen inordinary 0Stabilize Financial BaseStrategic InvestmentFor the time being, ourpriority is to increasingshareholder’s equity andfurtherstabilizingourfinancial base and also toresume paying dividendssoon and stably.Commensurate with ourfinancial base, we aim toaccelerate investment instrategic growing area andalso review our businessportfolio.16
Business PlanStable Income Business and Market-Exposed BusinessStable Income Business：Gradual increase in stable profitsMarket-Exposed Business：Increase profit further through fleet scale optimizationContainerships Business ：Hire earnings and expenses regarding ONE will shrink as chartered vessels aregradually returned, while ONE’s business will transition to a market-exposedbusinessStable Income Business：（billion yen）Coal & Iron Ore Carriers, Thermal Coal Carriers, Tankers,LNG Carriers, Logistics, Short sea and Coastal, Drillship,FPSO120Market-Exposed Business：100Bulk Carriers, Car Carriers, Offshore Support Y2020FY2021Mid-2020’sFY203017
Business PlanInvestment PlanRefocusing investments in short-term Overall investment in the five years beginning in fiscal year 2021 will be about 250billion yen, within the scope of operating cash flow Looking ahead to after improving our financial base, we will consider investing in newgrowing areas.Investment PolicyInvestment cementReplacement Investmentmainly ize investment inEnergy resource, Environmentrelated area and Growing areaStrategicinvestment・R&D・DXR&D for New EnvironmentalTechnologiesInvestment for promoting DX55％ Investment based on longterm Contracts Expansion of Stable-IncomeBusiness Strengthen Profitability30％ Vessels using alternative fuels Environmental responseequipment New business contributing tolow carbon15％ Investment for R&D forenvironmental technologies R&D for zero-carbon Strengthen AI・Digitalization18
Strategies for specific businessesMarket environment, trends, overall impression of key businessesOutlook for FY2021Medium-term OutlookKey points for the medium to longterm Growth in demand for transportation will remain gradual.As uneconomical vessels due to safety or environmentalfactors will be retired, and speculative orders will berestrained, fostering improvement in the supply-demandbalance. Flattening growth of crude steel production in China Trend toward local production for local consumptionproducts and competition with electric furnaces Trends in environmental regulation and vessel fuels Increasing safety requirements for safety anddifferentiationPanamax andSmaller size Demand for transportation should also increase dueto economic recovery from the COVID-19 pandemicand robust Chinese imports of grain. Vessel supplydemand balance should improve, as vessel supplypressures should be limited. Demand for grain / minor bulk transportation, particularlyfor emerging countries, is likely to remain firm. Closelywatching for changes in demand for transport of coal,based on fossil fuel policies in various countries. Marketrecovery is likely to spark recovery in new shipbuildingorders, but aged vessels will continue to be retired. Falling demand for coal transport Demand for grain transport growing as populationincreases US-China economic confrontation Trade shrinks for advanced nations, grows for emergingnationsEnergy Resource TransportLNGCarrier As in typical years, spot/near-term charter ratemarket are likely to remain low until summer, butthen rise sharply beginning in the fall. Long-term contracts protect our company frommarket fluctuations. Expansion in Qatar is a major undertaking. After that getsunder way, FIDs* are anticipated for several other newprojects and will conduct bids for transportation byvessels LNG demand will grow in the medium to long term, andthe key point will be how it is positioned amid growingdemand for renewable energy and development of nextgeneration forms of energy.Tanker Oil production is down, putting downward pressureon cargo movement, making it likely demand forvessels will remain slack. however, ｗe expect to seesteady recovery in the second half of the fiscal year. As economies begin to recover from the COVID-19pandemic, and that recovery grows more vigorous,demand for oil is likely to rebound, and that shouldincrease demand for transport. Demand for crude oil is likely approaching a peak, asswitching to other forms of energy due to environmentalconsiderations and environment-friendly vessels will beused to transport crude oil.ThermalCoal Carrier Although renewable energy to increase, we expectincrease of thermal coal transport as an alternativeparticularly as little progress has been made towardrestarting nuclear power plants. Coal consumption continues, but is in a gradual declinedue to closures of inefficient electric power plants in aneffort to zero carbon, and the addition of more biomassto the fuel mix. Near-term developments leading to carbon-neutrality in2050. Thermoelectric power plants will remainnecessary as regulated power supply. Use of CCUS andother technologies will make CN thermoelectric plantspossible.OffshoreSupport Vessel Oil prices are recovering, but exploration is stagnantand market recovery will be limited. As oil prices recover, we think investment in developmentwill increase, causing a gradual increase in marketconditions. Impact on exploration development investment plan dueto global trends for zero-carbonProduct LogisticsCar Carrier Despite generating concerns of a negative impact onproduction due to lack of semiconductor, we expectto see a big recovery from the impact of COVID-19. In the market for motor vehicle sales, we are seeinggradual recovery in emerging countries and the sales willrecover to pre-pandemic levels by early 2023. Update our business model to reflect changes in theneeds of society and our customers, such as reducingenvironmental burdens, increased use of CASELogistics・Short Seaand Coastal・Terminal Compared with FY2020, we expect that demand forinternational logistics will increase. Coastal business will remain the same as FY2020.Domestic terminal business will experience recoveryin demand, and handling volumes will continue toincrease. Demand for international logistics will continue to recover. Full recovery in coastal business may not arrive untilfiscal year 2022 or later, but domestic terminal businesswill show the kind of robust growth they exhibited priorto the pandemic Exploring for new kinds of customers, and new needsfor cargo movements. Strengthening our comprehensive logistics services byleveraging our networks. Domestic Terminal businessaim to steadily maintain and increase revenues byworking with group companies to promote more rationaloperations through management of our groupcompanies and KLKG and cross-cutting businessmanagement and rationalization. While economic activity in various countries recover,it is difficult to predict when the pandemic and itseffects will be over. Containerships freight market isexpected to remain uncertain situation.・COVID-19 pandemic is expected to ease with the globalvaccination roll out. However, economic environment willchange as the global situation of COVID-19 changes. Our priority is to recover and normalize the situationfrom the excessive strain on the entire global supplychain resulting from COVID-19.Dry BulkCoal & IronOre As economic activity in various countries recovers,crude steel production should also recover, anddemand for transport should increase. Market conditions expected to be firm trends withvolatility.ContainershipsNotes:Growth, expansion, strong demand*Final Investment DecisionUncertainties about flattening, market stagnationDemand will subside, supply-demand balance grow worse, uncertain19
Strategies for specific businessesDry BulkEstablishing a competitive advantage by responding to increaseddiversity of transport trategyandChallenges FY2025 As the global economy recovers, spurringdemand for transportation amid limited newvessels delivery, we think the balance ofsupply and demand will improve, and drybulk market will rise. Growing demand for transportation, and thelimitation of supply pressures from newvessels delivery will combine to acceleratethe retirement of uneconomical vessels. Expecting to see ongoing improvement inthe balance of supply and demand. Asdemandfortransportationgrowsincreasingly diverse and complex, we arefocused on deploying our fleet efficiently andeconomically. Our domestic and overseaslocations are working together to fortify ourcustomer base and explore new salesopportunities Our emphasis on safe, environmentallyfriendly operations and DX approach help setus apart from our competitors and enhancethe efficiency of our operations. Strengthen our profitability not affected bymarket volatility by optimization of fleetscale/portfolio and continuing to aim forstable income and a growing customer base Contribution to lessening burdens on theenvironment through conversion to newkinds of fuel and reduction of greenhousegas emissions. Enhancing our competitiveness by traininghighly qualified personnel and strengtheninggroup synergies.20
Strategies for specific businessesEnergy Resource TransportEarning trust by ensuring high-quality of service and advancedenvironmental nStrategyandChallenges Depresseddemandforenergyrecovering from the pandemic Expansion of initiatives for zero-carbon FY2025now Progress is being made in efforts to switchfrom zero-carbon, but coal and oil still remainthe dominant sources of energy, alongsidethe relatively cleaner LNG. Specification of low carbonization required 2) to be strengthened） As demand for energy transport recovers,customers will be drawn to the high quality ofourtransportationservicesandenvironmental initiatives (prevention ofmarine pollution, Seawing, etc.), helping usto generate stable earnings from majorclients With our newly established carbon-neutralpromotion group, we are stepping up effortsto enter new business areas such asrenewable energy sources. Attract new customers through our reputationas a shipping company with advancedenvironmental initiatives such as developingnew technologies that will contribute to lowcarbon shipping specifications and safety ofoperations. Creating a firm foothold for entry to thefuture of carbon-neutral technologies, withnew businesses aimed at renewable energy,GHG reduction, transport of liquefiedhydrogen and liquefied ammonia, CCUS, etc.together with our existing businesses such asFPSO*１ EEDI (Energy Efficiency Design Index) is defined as the number of grams of CO2 emitted when carrying 1 ton of cargo for 1 mile, and DWT (deadweight tonnage) unique to the ship is used for the calculation.*２ EEXI（Energy Efficiency Existing Ship index）is the regulation of fuel consumption efficiency for existing vessels.21
Strategies for specific businessesProduct Logistics Car CarrierThe transition to carbon-neutral businesses will transform ourbusiness andChallengesFY2021 FY2025 The recent shortage of semiconductorchips is generating concerns about theimpact on production, but demand fortransportation has increased greatlysince last year. Securing higher profitability throughfleet scale optimization and routerationalization, etc. Creating a platform for sustainedearnings growth and revenue scaleexpansion by gradually reco
6 Management Plan Review in FY2020 Aiming for sustained improvement in corporate value （Progress of Management Plan in FY2020） Firmly protecting our business in the short term Progress as planned Initiatives for Safety/Environment/Quality and Growth Strategy Progress as planned Secure liquidity on hand Progress as planned Expand shareholder's equity Progress well .
