| Company name: |
Iino Kaiun Kaisha, Ltd. |
| Headquarters Address: |
2-1-1 Uchisaiwai-cho, Chiyoda-ku, Tokyo |
| Company code: |
9119 |
| Stock exchange(s): |
Tokyo, Osaka, Nagoya first sections, Fukuoka, Sapporo |
| Contact: |
Yutaka Tagawa, Group Leader,Stakeholder Relations Management Group |
| Tel |
03-3506-3060 |
|
Medium-Term Management Plan "IINO's Value Creation to 2007" (IVC07)
(regarding Iino's value creation plan for 2007) |
| Heretofore, the Company has pursued the goals as outlined in its "New IINO Renovation 21" (New IR21) that covered the period from April 1, 2001 to March 31, 2004. With the completion of this three year plan and after reviewing the results, the Company has created a new IVC07 plan, the outline of which is given below. |
| The basic framework of IV07 is as follows. |
| (1) |
IVC07 Framework |
| Name |
"IINO's Value Creation to 2007"(Iino value creation plan for 2007) |
| Short Name |
IVC07 |
| Motto |
~Pursuit of Corporate Value Creation~"Accelerating Change with Originality and Passion" |
| Objectives |
1. |
Reinforce sales/marketing. (improve customer satisfaction, strengthened overseas marine transport operations, etc.) |
| 2. |
Enhance and achieve stability in earnings capability and financial position |
| 3. |
Enhance corporate governance. |
| 4. |
Strengthen manpower training and organizational efficiency. |
| 5. |
Promote safety and environmental measures, compliance and IR activities. |
| 6. |
. Strengthen Group companies. |
|
| (2) |
) Major financial indicators following completion of NEW IR21 and new projections under the new IVC07 management plan. |
Unit: Billions of Yen
| |
FY2003
(Actual) |
IVC07 (Projected) |
| FY2004 |
FY2005 |
FY2006 |
| Total Sales |
58.3 |
57.0 |
59.7 |
61.5 |
| Operating Profit |
5.9 |
6.4 |
6.8 |
6.9 |
| Ordinary Profit |
3.6 |
4.5 |
5.0 |
5.1 |
| Net Income |
2.3 |
2.7 |
3.0 |
3.1 |
| ROE |
7.8% |
8.3% |
8.6% |
8.4% |
|
Note: ROE is based on after-tax net income. |
The profitability of the Company's marine transportation business is affected by shipping rates, exchange rates and fuel costs. Under the new 3-Year IVC07 Plan, the Company's assumptions for these variable factors are as follows.
| |
FY2004 |
FY2005 |
FY2006 |
| Major SPOT Shipping Rates |
VLCC (large oil tankers) |
WS90 (second half) |
WS85 |
WS75 |
| P.MAX(70~80 thousand DWT cargo ships) |
US$27,500/day |
US$20,000/day |
US$17,000/day |
| Exchange Rates |
US$ = 105yen |
| Fuel Costs |
C Heavy Oil (Singapore/180CST) |
US$171/MT |
US$151/MT |
|
<Reference> Parent-only operating profits by segment following completion of NEW IR21 and projections under the new IVC07 management plan. |
Unit: Billions of Yen
| |
FY2003 (Actual) |
IVC07 (Projected) |
| FY2004 |
FY2005 |
FY2006 |
| Marine Transportation Business |
2.2 |
2.9 |
2.7 |
2.7 |
| Real Estate Business |
2.1 |
1.7 |
2.3 |
2.4 |
| Total Operating Profit |
4.3 |
4.6 |
5.0 |
5.1 |
|
Should a major investment opportunity occur during the IVC07 Plan, or if a major change in the shipping rates and other economic conditions are likely to have a major impact on the above projections, the Company will review its projections and appropriately disclose these results. |
