Announcement of New Mid-term Management Plan:
“The Adventure to Our Sustainable Future”

May 9, 2023

IINO Kaiun Kaisha, Ltd. (“the Company”) hereby announces that at its Board of Directors meeting held today, it has resolved the three-year mid-term management plan, "The Adventure to Our Sustainable Future" (“the plan”), starting in April 2023.

In the previous mid-term management plan, "Be Unique and Innovative.: The Next Stage - Towards 2030" (April 2020 - March 2023, "the previous plan"), announced in May 2020, we set our goals towards 2030 (IINO VISION for 2030) “Aiming to be an independent global company that continues to evolve with creative ideas in response to the demands of the times.” In addition to improving economic value by further promoting global business and further solidifying stable earnings, we also focused on creating shared value that the Group understands, through proactive sustainability initiatives. In the midst of the global pandemic of the COVID-19 and the invasion of Ukraine by Russia, a sudden risk that could be described as a historical turning point, we achieved the highest profit for the second consecutive year, due to the steady implementation of priority strategies set forth in the previous plan, as well as soaring market conditions in the shipping business due to disruptions and changes in maritime logistics.

The name of the plan reflects our desire to make the necessary preparations, boldly embrace challenges, and embark on an adventure towards a sustainable future for all stakeholders, despite the frantic pace of changes in the external environment and the difficulty of predicting what lies ahead. The plan’s main themes are portfolio management and the challenge of achieving carbon neutrality, and we will work even more vigorously to create shared value that we tackled in the previous plan, having inherited the IINO VISION for 2030 as a long-term target. As a key strategy, we will press ahead with numerous measures to achieve sustainable growth through business portfolio management based on the IINO MODEL*1, and at the same time, address the materiality, the key sustainability issues in our business. More specifically, in leveraging the sound financial base we have established from the accumulation of profit, we will efficiently allocate a total of roughly ¥100.0 billion over three years—which is more than double the amount in the previous plan—for investment mainly in growth and new businesses that have high growth potential and are closely related to the materiality issues. In doing so, we will aim to build an optimal business portfolio with which we can generate sustainable growth. In addition, we will add Return on Invested Capital (ROIC*2) to the list of management benchmarks that we regard most important and will seek to enhance economic value by propelling a strategy geared towards capital efficiency improvements and the creation of synergies between businesses. And on the topic of addressing issues of the materiality, we have formulated a roadmap to achieve the plan’s overarching goal of carbon neutrality by 2050, into which we will incorporate heteronomous technological innovation. But without relying on it too much, we will contribute to decarbonization with viable greenhouse gas reduction measures and steadily respond to the demands of society to bolster human capital and take action to respect human rights. As for the DX measures that we kicked off in the previous plan with the establishment of a task force and the development of a digital platform, we will set up a new dedicated department to further accelerate initiatives based on our experience and track record in solving issues together with start-ups.

*1 The Company’s unique business model with two business pillars; Shipping, which is subject to high market volatility, and Real Estate, which is subject to relatively less volatile changes in market conditions.
*2 ROIC = Earnings before interest after taxes ÷ Invested capital

In line with the formulation of the plan, the Company has reorganized its “Corporate philosophy system”. In the shipping industry, there are drastic changes in the logistics patterns due to the increasing geopolitical risks and the new Cold War, and in the real estate industry, the pandemic of COVID-19 has triggered the spread of new work styles such as remote work, and we recognized the need to rethink the significance of I INO Group's existence and the value we provide to society. In addition, in order to promote human capital management, including respect for individual diversity, we held discussions with relevant parties within the group, using responses to a questionnaire from executives and employees as a reference, the Company established a new corporate philosophy system that can be shared by the entire IINO Group.

In conjunction with the formulation of the new Mid-term management plan, we have reorganized our philosophy system and established the following

The forecasts of business performance and other forward-looking statements given in these materials reflect the Company’s best judgment based on the information available at the time of preparation. These outlooks are subject to various potential and underlying risks and uncertainties. Actual results may vary materially from forecasts due to changes in various factors.

For more information for The Adventure to Our Sustainable Future