MOL REPORT 2021
Year ended March 31, 2021
Our Mission amid a Rapidly Changing
Business Environment
With its unwavering mission, the MOL Group has resiliently survived by nimbly
altering its business domains and business models in tune with changes in
the external business environment. The 2020s seems to be another time of
considerable change for us.
A New Growth Stage
for the MOL Group
Credit: Panama Canal Authority
Credit: Dunkerque LNG―HappyDay
MOL REPORT 2021
1
The Past 20 Years and the Future of MOL
Fiscal 1999
Fiscal 2003
MOL and Navix Line merge,
establish new Mitsui O.S.K.
Lines, Ltd.
Start of aggressive fleet
expansion, centered on
dry bulkers
Fiscal 2007
Record-high profit
Fiscal 2011
First net loss
since merger
Fiscal 2012
Large-scale business
structural reforms
Fiscal 2013
Shift in emphasis to
the accumulation of
highly stable profits
Fiscal 2015
Another round of
large-scale business
structural reforms
MOL Group’s Performance* /
Fleet Scale
Ordinary profit (billions of yen) (left)
Profit attributable to owners of parent
(billions of yen) (left)
Fleet size (vessels) (right)
* Figures for fiscal 2021 onward are forecasts as of
April 30, 2021.
2,000
Fiscal 2017
Rolling plan introduced
Establishment of inte-
grated containership
business company
Fiscal 2021
Establishment of new corporate
mission and group vision
Announcement of
Rolling Plan 2021
Announcement of MOL Group
Environmental Vision 2.1
1,500
1,000
500
Emerging countries’ boom
Prolonged stagnation in marine transport market
00
05
10
15
20
23
27
0
(Fiscal year)
400
300
200
100
0
-200
MOL 1.0
2000s
Unprecedented marine transport
boom supported by explosive growth
in emerging economies
MOL aggressively expanded its fleet, centered
on dry bulkers, at the right time as emerging
economies grew strongly, and leapt into
position as one of the world’s largest marine
transport companies.
2010s
MOL 2.0
End of the marine transport boom and
an era of excessive ship tonnage
Amid a prolonged market slump caused by
excessive ship tonnage after the global financial
crisis, MOL undertook two large-scale business
structural reforms and decided to focus investment
on long-term business stability. MOL also reorga-
nized its weak containership business. As a result
of these initiatives, the Company managed to estab-
lish a much more robust corporate structure that
has less susceptibility to market fluctuations.
MOL 3.03.0
2020s
Rules of the game are changing drastically with the
rise in sustainability needs and digital transformation (DX)
To meet the emerging needs of customers and society, such as decarbonization,
we aim to evolve into a sea-based social infrastructure group from
a marine transport company.
2
3
MITSUI O.S.K. LINES MOL REPORT 2021 We formulated a new corporate mission and group vision in April 2021
Contents
as a new era opens for the MOL Group.
MOL Group Corporate Mission
From the blue oceans, we sustain people’s lives
and ensure a prosperous future.
MOL Group Vision
We will develop a variety of social infrastructure businesses in
addition to traditional shipping businesses, and will meet the
evolving social needs including environmental conservation,
with innovative technology and services.
MOL group aims to be a strong and resilient corporate group that provides
new value to all stakeholders and grows globally.
MOL Group Values
Challenge
Honesty
Innovate through insight
Do the right thing
Accountability Commit to acting with a sense of ownership
Reliability
Teamwork
Safety
Gain the trust of stakeholders
Build a strong team
Pursue the world’s highest level of safety culture
Our Vision, Our Value
06 A Message from the CEO
12 Value-Creation Model
14 The Outcomes of Value Creation
For Our Sustainable Growth
16 A Review of Our Management Plans
18 Rolling Plan 2021
22 Business Overview
24 Overview of Operations by Business Segment
32 Special Feature: Creating New Businesses Unbound by
Existing Frameworks
—MOL Incubation Bridge—
34 A Message from the CFO
36
A Message from the Chief Environment and
Sustainability Officer (CESO)
38 Overview of MOL’s Sustainability Issues (Materiality)
40 Value-Added Transport Services
44 Marine and Global Environmental Conservation
48
Innovation for Development in Marine Technology
52 Human Resource Cultivation and Community Development
56 A Message from the Chairman
58 Messages from the Chairs of the Advisory Committees
62
Board of Directors, Audit & Supervisory Board Members,
and Executive Officers
65 Corporate Governance
70 Risk Management
74 Compliance
75 Social Responsibility
Data Section
76 Financial and Non-Financial Highlights
78
The MOL Group’s Global Network /
History of the MOL Group
79
Information Disclosure and External Recognition
80 Glossary
81 Shareholder Information
Scope of the Report
The MOL Group, comprising Mitsui O.S.K. Lines, Ltd., 363 consoli-
dated subsidiaries, 110 equity-method affiliates, and other affiliated
companies (If the subject of activities or data are limited, it is
indicated by notes in the report.)
* Throughout this report, “the Company” refers to Mitsui O.S.K. Lines, Ltd.
Forward-Looking Statements
This report contains forward-looking statements concerning MOL’s
future plans, strategies, and performance. These statements
represent assumptions and beliefs based on information currently
available* and are not historical facts. Furthermore, forward-
looking statements are subject to a number of risks and uncertain-
ties that include, but are not limited to, economic conditions,
worldwide competition in the shipping industry, customer demand,
foreign currency exchange rates, price of bunker, tax laws, and
other regulations. MOL therefore cautions readers that actual
results may differ materially from these predictions.
* As of the end August 2021, unless otherwise specified
Referenced Guidelines
• “International Integrated Reporting
Framework,” International Integrated
Reporting Council (IIRC)
• “Guidance for Collaborative Value Creation,”
Ministry of Economy, Trade and Industry
Index for Reverse Lookup of Topics in the Guidance
for Collaborative Value Creation
1. Values
P4, P6–11, P36–37, P42
2. Business Model
P6–13, P22–33, P78
3. Sustainability and Growth
P6–11, P16–55, P74–75
4. Strategy
P6–11, P16–31, P34–55
5. Growth (Performance) and
Key Performance Indicators (KPIs)
P14–15, P16, P19, P34–35, P76–77
6. Governance
P56–73
Ship on the Cover
This ship will be MOL’s second LNG bunker vessel, with an
18,600 cubic meter tank capacity, when it is completed and
named in October 2021 (built by Hudong-Zhonghua Shipbuilding
(Group) Co., Ltd. in China). After completion, the vessel will
supply environmentally friendly LNG fuel to larger ships.
GAS AGILITY (top right photo on page 1), the first LNG bunker
vessel that is currently operating, has been noted as a project
eligible for support by the Connecting Europe Facility (CEF),
which was set up by the European Union to promote key
infrastructure upgrades.
4
5
Underlined words in this report are
explained in the Glossary on page 80.
Co-financed by the Connecting Europe
Facility of the European Union
MITSUI O.S.K. LINES MOL REPORT 2021 A Message from the CEO
Takeshi Hashimoto
President & CEO
Business Environment
We are facing a time when we must redefine our social mission as well as
our business model and portfolio.
I was appointed as MOL’s CEO in April 2021, and I feel that
I have assumed this position in a very important period of
change for the Company.
In the past, we grew in step with the development of
Japan’s economy. In particular, since Japan’s period of high
economic growth, the MOL Group has transported a large
volume of imports and exports related to manufacturing—
which was the core of Japan’s industry—as well as the
energy needed to support society. Consequently, contribut-
ing to the country’s economic development led directly to
the Group’s growth. However, our growth model reached
a turning point as Japan’s society matured and Japanese
companies gradually shifted the focus of their businesses
away from manufacturing. Since emerging countries, with
China at the forefront, entered a phase of conspicuous
economic growth in the 2000s, we have been under pres-
sure to reassemble our businesses and free ourselves from
an approach centered on Japan’s economy.
The maturing of the marine transport industry as a whole
is another trend we cannot ignore. In recent years, Asian
countries have further increased their presence in highly
commoditized industries due to the countries’ large capaci-
ties and cost competitiveness. The COVID-19 pandemic has
made this trend even more obvious. The marine transport
industry is also likely to see companies from China and
Southeast Asia become even more prominent by utilizing
their overwhelming price competitiveness. Indeed, signs of
this heightened presence are already appearing in various
forms. Therefore, continuing long-term growth through
simple marine transport alone is becoming increasingly
difficult for MOL.
In addition, one of the most influential factors for our
business at present is the major global trend toward the
creation of a sustainable society. The United Nations (UN)
Sustainable Development Goals (SDGs) are a representative
example of this trend, which has become more pronounced
6
6
MITSUI O.S.K. LINES
MITSUI O.S.K. LINES
MOL REPORT 2021
7
7
Our Vision, Our ValueTransforming from a marine transport company to a sea-based social infrastructure group.We will create a new MOL Group that has the capabilities to prevail in the 2020s.MITSUI O.S.K. LINES MOL REPORT 2021
A Message from the CEO
in recent years. Such environmental issues as climate
change are becoming especially unavoidable as society’s
expectations increase with each passing day.
With our business environment undergoing these signifi-
cant, multifaceted changes, the time has come for us to
adjust our social mission and the vision for our business
and set out on a different path. For this reason, in April 2021
we revised the MOL Group Corporate Mission, the MOL
Group Vision, and the MOL Group Values. (For details,
please see page 4.) The new mission, vision, and values
state that we will contribute to the long-term prosperity of
society in fields where we have strengths through value
creation in a wide range of social infrastructure businesses
that are not limited to marine transport and which expand
globally. Efforts to this end will in turn enable our own
sustained growth.
seize major business opportunities—for example, by provid-
ing transport services that have a low environmental
impact, by developing infrastructure projects that enable
the use of LNG and the reduction of greenhouse gas (GHG)
emissions through the use of FSRUs and LNG-to-
Powerships, or by focusing on renewable energy-related
business fields, such as offshore wind power farms. As well
as having great social significance in terms of reducing the
environmental impact of emerging economies, the afore-
mentioned businesses can expect to enjoy solid demand for
their services. Moreover, such initiatives have a high degree
of synergy with our expertise, experience, and know-how.
For this reason, I intend to grow our environment-related
businesses considerably going forward.
MOL’s Future Direction
Profit Growth and Our Business Portfolio
Based on an “Environmental Strategy × Regional Strategy” approach,
we will achieve further differentiation and growth.
I am keen to build a business portfolio that generates stable profits
regardless of market conditions.
because of their relatively high growth potential as well
as the business networks that we have built over the past
several decades. We will extend our formerly Japanese
economy-centered growth model so that it encompasses
the entire Asian economy. Asian companies’ expansion of
their businesses into the Americas, Europe, and Africa will
create business opportunities for us. To capture these
opportunities, we must promote personnel who can
manage businesses anywhere in the world as well as local
personnel who are thoroughly familiar with the countries
where we operate and have such personnel take charge of
the strategies for each region.
Next, let me turn to our environmental strategy. As I
mentioned earlier, efforts to address issues such as climate
change have become a global trend. Consequently, emerg-
ing countries, which will need huge amounts of energy to
develop their industries, face the dilemma of how to balance
economic growth and environmental protection. If MOL can
help resolve this dilemma, the Company will be able to
In realizing the MOL Group Vision, I believe that establishing
clear differentiation in relation to competitors will be a key
factor. This belief is based on past bitter experience. In the
2000s, China’s entry into the World Trade Organization
(WTO) generated enormous demand for marine transport.
By expanding its fleet, MOL captured this burgeoning
demand at the right time. As a result, we posted our
highest-ever profits up to that point. In the 2010s, however,
the Group as a whole experienced long-lasting difficulties
due to a global oversupply of vessels in the aftermath of the
boom. Consequently, MOL recorded large net losses several
times. With the benefit of hindsight, although we were able
to expand faster than our competitors, I feel we did not
manage to create the “something” that would have given us
a decisive edge over them in terms of cost competitiveness
or transport quality. As a result, during the global recession
triggered by the collapse of Lehman Brothers, issues began
to emerge in businesses that had been unable to establish
competitive advantages within their sectors. We must learn
the lessons of this experience and step up efforts to rigor-
ously improve the overall service quality that we provide in
terms of safety, transport quality, and environmental per-
formance. In this way, we will acquire and retain customers
who are willing to pay a certain premium and continue using
our services. With these customers as a base, we can then
develop our business even further.
In view of the need for clear differentiation, MOL’s Rolling
Plan 2021 incorporates an “Environmental Strategy ×
Regional Strategy” approach, summarizing the areas on
which the Company should focus its efforts. (For details,
please see page 18.)
First, allow me to explain the regional strategy. Now that
the model of growing in step with Japan’s economy is no
longer sufficient, we must tap into the growth of the global
economy. Looking ahead to the next 20 to 30 years, I believe
the countries and regions that we can realistically target
and compete in are China, India, and Southeast Asia
To grow profits stably, the Group must constantly review
its business portfolio. Our core marine transport business
has to go through extreme peaks and troughs in its perfor-
mance due to the volatility of economic and market
conditions. This characteristic of the business makes
management based on long-term perspectives, continuous
investment, and stable human resource development chal-
lenging. To overcome such problems, I am keen to trans-
form MOL into a company that generates stable profits
irrespective of whether the market is favorable or unfavor-
able. To date, MOL has taken various measures to
strengthen its market resilience, such as diversification
in businesses that deploy multiple types of vessels with
different market cycles as well as the accumulation of
medium- to long-term contracts and the reduction of
market exposure. In the years ahead, we will increase our
resilience further by developing a well-balanced business
portfolio that combines marine transport and businesses
in non-marine transport fields. Without a doubt, marine
transport will remain our mainstay business. However, to
break away from its inherent dependence on market cycles,
we will diversify into new business fields where we can
utilize the strengths and networks that we have cultivated
through marine transport.
What, then, are MOL’s strengths? I believe they are the
personnel we have developed worldwide and our opera-
tional competence in handling vessels and cargo. In addi-
tion, we have knowledge related to onshore logistics that
we have accumulated through operations at terminals and
ports. As we can draw on these strengths, I feel such fields
as offshore businesses, port and terminal businesses, and
warehousing businesses are highly compatible and can
create significant synergies with our existing business.
Further inland, moreover, real estate is an area where we
can utilize our knowledge and experience of each country
and the relationships we have built with local companies
over many years. By increasing the weight of such busi-
nesses in our portfolio and lowering our dependence on the
traditional marine transport business, we will make our
business structure more resilient so that as a whole we are
able to generate stable profits.
In fact, our results to date give us a blueprint for our
future direction. In fiscal 2020, ended March 31, 2021, the
containership business was the main earner. Meanwhile,
the energy and offshore businesses, which largely com-
prise sources of stable profits, generated about ¥30.0
billion in profits. Adding to this approximately ¥10.0 billion
in profits from the real estate business, which is another
source of stable profits, brings the total to around ¥40.0
billion. By making further investments to expand busi-
nesses in non-marine transport fields like the offshore
and real estate businesses, I am confident that we can
grow the figure to between ¥50.0 billion and ¥70.0 billion.
If the Group can build a portfolio in which these non-
marine transport-centered businesses earn about half of
its profits and traditional marine transport businesses,
such as dry bulkers, containerships, and car carriers, earn
the other half, the Group as a whole will be able to gener-
ate at least ¥100.0 billion in profits even in an unfavorable
business environment. Of course, when market conditions
are favorable, as are they now, we expect to realize even
larger profits.
At the same time, we must reexamine our current busi-
nesses. While we will be able to grow some businesses
rapidly on our own, for certain businesses forming alliances
with other companies or deciding to withdraw may be the
best courses of action. By constantly reexamining our busi-
nesses with respect to the growth potential of industry
sectors, our positions in sectors, and cash flows and by
persevering with the necessary reorganizations, we will
strengthen our overall corporate strength.
8
9
Our Vision, Our ValueMITSUI O.S.K. LINES MOL REPORT 2021
A Message from the CEO
Fiscal 2020 Summary and Fiscal 2021 Priority Measures
Although we achieved favorable business results in fiscal 2020,
there is still room for improvement.
In fiscal 2020, we achieved ordinary profit of ¥133.6 billion,
exceeding our medium- to long-term target, which is to
realize ordinary profit of between ¥80.0 billion and ¥100.0
billion. The main reason for this result was the exception-
ally good performance of Ocean Network Express Pte. Ltd.
(ONE). This was extremely meaningful as it demonstrated
that the grand project undertaken by three Japanese ship-
ping companies to create a single company specializing in
containerships is now on track. I am happy to report that
ONE is continuing to experience favorable conditions, but
I do not believe that these conditions are sustainable in the
long term as they are based on many irregular factors, such
as a rapid increase in “stay-at-home demand” due to the
COVID-19 pandemic as well as a contraction in actual
vessel supply resulting from port disruptions. Careful verifi-
cation is required, but given profit margins in the container-
ship industry during normal times, I estimate the average
level of profits that MOL can secure from ONE on a sustain-
able basis in the future will be between ¥20.0 billion and
¥30.0 billion. This means we will need to stably generate
profits of between ¥70.0 billion and ¥80.0 billion, apart from
the contribution from ONE, to realize our target of ordinary
profit that consistently surpasses ¥100.0 billion. To this end,
we will continue to accumulate profits in energy transport-
related and offshore businesses while steadily taking steps
to improve profits in traditional marine transport business
fields, such as dry bulkers, car carriers, and tankers. If we
can improve profits in each of these fields by ¥5.0 billion or
¥10.0 billion, we will achieve our medium- to long-term
target of lifting ordinary profit above ¥100.0 billion.
Therefore, in fiscal 2021 we will focus efforts on improv-
ing the profits of the dry bulk and car carrier businesses,
which struggled in fiscal 2020. The key to the success of
these efforts will lie in breaking away from an overdepen-
dence on Japan-based businesses and building business
structures that can also earn overseas. This strategy also
overlaps with our regional strategy. Looking ahead to the
post-COVID-19 global economy, the major rebound in
demand is likely to be in emerging countries, such as India,
rather than in Japan. Due to its extremely high demand for
energy, India is expected to increase imports of crude oil,
LNG, and LPG for some time to come. Moreover, given its
growing presence as a global production base, the country
has ample potential for growth in exports of industrial
products, especially automobiles. In traditional marine
transport business fields, such as car carriers, we will
heighten earning power by maximizing our capture of the
trade flows resulting from such trends.
Also, we will continue strengthening our management
base. We still have such problems as duplication of work
among different organizations and slow decision-making.
To realize timely, accurate decision-making, we will
streamline our organization. The goal is to increase the
speed and transparency of information sharing, expedite
the discussion of important matters that need decisions
and action, and arrive at conclusions swiftly. Additionally,
continuing on from our efforts in fiscal 2020, we will use
cross-divisional project teams to advance businesses,
particularly in growth regions.
Approach to Sustainability
We will devote ourselves to making both the
Group and society sustainable.
In explaining our sustainability initiatives, I would first like
to touch on the accident in 2020 in which the WAKASHIO,
a vessel chartered by MOL, ran aground off Mauritius and
spilled oil. Once again, I would like to apologize for the
great inconvenience that the accident caused the residents
of Mauritius and for the significant effect the accident
had on the environment. The MOL Group has long been
committed to safe operation as an important management
requirement. Nonetheless, this accident has highlighted
our failure to manage the entire supply chain including
chartered vessels. The problem was that our safety man-
agement tended to concentrate on our owned or managed
vessels and too much may have been entrusted to ship-
owners in terms of the management of chartered vessels,
which account for more than half of our fleet. Going for-
ward, we must raise our level of safety management so
that we can confidently assure customers and other stake-
holders that the vessels engaged in the provision of our
services meet certain high safety standards. With this
in mind, we are in the process of rebuilding systems
to ensure that all officers and employees have a strong
interest in and commitment to the management of vessel
safety. To prevent reoccurrence of such an accident, we
have implemented measures to improve operation, includ-
ing the renewal of safety standards for chartered vessels
and the revamping of internal capabilities. Also, we have
incorporated safety stipulations into our guidelines on
employee conduct by revising the MOL Group Values, and
we have added safety KPIs to criteria for calculating remu-
neration for directors and executive officers. I will continue
emphasizing to all Group employees that we must never
allow such an accident to happen again. With respect to
the people of Mauritius, we will continue our involvement
in the restoration of the natural environment and support
for the local community by creating opportunities for dia-
logue with the government and local people, dispatching
personnel on an ongoing basis, operating a fund, and so
forth. We will conduct wide-ranging exchanges of opinions
with stakeholders from a long-term perspective and
continue to fulfill our social responsibilities.
For the sustainability of the MOL Group and society,
climate change and other environmental issues are
among the most important issues to be addressed.
Reduction of negative environmental effects—such as the
carbon dioxide (CO2), sulfur oxide (SOx), and nitrogen oxide
(NOx) emitted in providing marine transport services—is
an extremely important task not only for the differentiation
of MOL’s businesses but also for the Company itself as
a social entity. In June 2021, we announced MOL Group
Environmental Vision 2.1, which sets targets that are more
ambitious than ever and a specific road map for their
achievement. Based on this vision, we will further acceler-
ate our environmental initiatives and invest actively.
(For details, please see page 44.)
My Roles and Aspirations
I want MOL to be viewed as an excellent company in
every respect. That is my goal.
the long run, looking five, 10, or 15 years ahead. As we
advance unflaggingly toward the realization of this goal,
I would like to ask our shareholders and other stakeholders
for their continued support and understanding.
As we go through a process of transformation, I believe
that one of my roles is to set out our overall direction.
Another of my roles involves putting forward hypotheses
that stimulate in-house discussion and thereby lead to
better decisions. Fortunately, I have had opportunities to
work with an array of customers and business partners in
many different countries, including Qatar and Oman in the
Middle East, China, India, and Russia and more recently
Brazil and Turkey. Although I have on occasion experi-
enced difficulties and made mistakes, I have gained quite
a broad range of experience as a result. By drawing on
this experience and insight, increasing the transparency
of our discussions, and mobilizing in-house resources
and collective wisdom, I will lead the Company in the
right direction.
Through these efforts, my aim is to make MOL a corpo-
rate group that stakeholders view as excellent and highly
trustworthy. Both in Japan and worldwide, I want MOL to
establish a favorable reputation not just for service quality
but for all aspects of operations, including corporate
robustness and profitability, the high quality of the
Company’s personnel, management philosophy with
respect to what the Company stands for and what it aims
to achieve, technological capabilities, and social trust.
Rather than just having an ideal level of profits in mind,
I am thinking of creating a corporate group that we our-
selves and others recognize as an excellent company in
10
11
Our Vision, Our ValueMITSUI O.S.K. LINES MOL REPORT 2021 Value-Creation Model
Input
Our Activities
Output
Outcome
Resources Supporting MOL Group
Business Domains
MOL’s Number of Voyages (Fiscal 2020)
1
Financial Value (Fiscal 2020)
Manufactured Capital
A wide array of around
800 vessels
Sales and ship management
offices in 41 countries and
regions
Intellectual Capital
Deep understanding of ship
operations and cargo handling,
advanced maritime skills
Broad knowledge of ships backed
by extensive experience
Strong attitude to innovate the
marine transport business and
a wide range of expertise as
its base
Project management capabilities
for discovering needs and
commercializing ideas
Human Capital
Highly diverse land-based
personnel and crew members
numbering around 14,000
Human capital who share the
“MOL CHARTS” spirit
Social and Relationship Capital
A history and track record
extending across more than
130 years
Customer networks and partner-
ships in Japan and overseas
A presence in maritime affairs
clusters around the world
Natural Capital
A natural environment that
sustains business continuity
Financial Capital
A financial base that underpins
reliable performance of long-
term contracts extending over
20 years
Stable cash flow generated from
a diverse portfolio of vessel types
and businesses
A variety of social infrastructure
businesses, centered on
marine transport
Offshore Businesses
About 3,000 voyages
(excluding time charter-out voyages)
MOL’s Track Record in Transport
(Fiscal 2020)
Marine Transport
Business
Port & Logistics Business
Real Estate Business
& Other
P22
Implementation of Rolling Plan
Environmental
Strategies
×
Regional
Strategies
Portfolio
Strategies
Business
Strategies
P18
Initiatives on Sustainability Issues
Value-Added Transport Services
Marine and Global Environmental Conservation
Innovation for Development in Marine Technology
Human Resource Cultivation and Community Development
Governance and Compliance to Support Businesses
P38
Annual container
transport volume
12 million TEU
About 7.7% of
global marine transport volume
(Source: Japan Maritime Center)
Annual LNG transport volume
69 million MT
About 19.1% of
global marine transport volume
(Source: Wood Mackenzie)
Annual iron ore
transport volume
66 million MT
About 4.4% of
global marine transport volume
(Source: Clarksons)
Annual automobile
transport volume
2.7 million vehicles
Reinvestment and the
accumulation of knowledge
Contributing to solving social
issues while creating value
through business activities
Revenues
¥991.4 billion
Ordinary profit
¥133.6 billion
ROE
16.5%
Total dividends paid
¥17.9 billion
2
Social Value (Fiscal 2020)
CO2 emissions
9,665 thousand tons
(Scope 1)
LTIF
0.34
(average across all industries (2020) 1.95)
Environment-related
investments
¥64.4 billion
For details, please refer to
“The Outcomes of Value
Creation” on page 14.
12
MOL REPORT 2021
13
Our Vision, Our ValueMITSUI O.S.K. LINES MOL REPORT 2021 Fiscal 2020
Ordinary Profit
(¥ billion)
2,000
The Outcomes of Value Creation
Financial Value
Revenues / Ordinary Profit
Gearing Ratio / Net Gearing Ratio / Equity Ratio
Profit (Loss) Attributable to Owners of Parent per Share /
Cash Dividends per Share / Dividend Payout Ratio
Cash Flows
ROA / ROE
Credit Ratings
End of fiscal 2020
Fiscal 2020
¥133.6 billion
Equity Ratio
27.6%
Cash Dividends per Share ¥150.00
Fiscal 2020
Free Cash Flow
¥44.2 billion
Fiscal 2020
As of September 17, 2021
16.5%
JCR
A–
1,500
1,000
500
0
133.6
991.4
17/3
18/3
19/3
20/3
21/3
(¥ billion)
(Times)
200
150
100
50
0
2.50
2.00
1.50
1.00
0.50
0
(%)
50
1.78
40
1.63
30
(¥)
800
400
0
–400
752
19.9
150
(%)
50
25
0
17/3
18/3
19/3
20/3
21/3
(¥ billion)
200
100
0
–100
–200
Includes investment in establishment of ONE
98.8
44.2
–54.6
17/3
18/3
19/3
20/3
21/3
27.6
17/3
18/3
19/3
20/3
21/3
20
10
0
Revenues (left)
Ordinary profit (right)
Gearing ratio (left)
Net gearing ratio (left)
Equity ratio (right)
Revenues declined ¥163.9 billion due to a sharp drop
in completed car transport volume and a fall in the dry
bulker market caused by the COVID-19 pandemic.
Ordinary profit increased ¥78.5 billion, reflecting strong
profit growth at equity-method affiliate Ocean Network
Express Pte. Ltd. (ONE), which operates containerships,
in addition to stable profit generation centered on the
energy and offshore business.
In fiscal 2020, shareholders’ equity expanded ¥64.4
billion year on year as a result of growth in retained
earnings thanks to robust overall performance of the
Company. Interest-bearing debt was reduced by ¥69.6
billion compared with a year earlier as borrowings were
repaid. As a result, the gearing ratio improved 0.36
point to 1.78 times. The net gearing ratio improved 0.31
point to 1.63 times, and the equity ratio also improved
3.1 percentage points to 27.6%, underscoring improve-
ment in the financial position.
Profit (loss) attributable to owners of parent per share (left)
Cash dividends per share applicable to the year (left)
Dividend payout ratio (right)
Reflecting robust growth in consolidated ordinary profit
on contributions from ONE, profit attributable to owners
of parent increased by ¥57.4 billion to ¥90.0 billion, even
after the booking of extraordinary losses, which included
business restructuring charges for product tankers and
car carriers incurred to lift earnings from the next fiscal
year onward. In accordance with the policy for a consoli-
dated dividend payout ratio of 20%, the Company
distributed an interim dividend of ¥15 per share and a
year-end dividend of ¥135 per share, for a total of ¥150
per share, representing an increase from the ¥65 per
share paid in fiscal 2019.
Social Value
Cash flows from operating activities
Cash flows from investing activities
Free cash flow
ROA (Based on ordinary profit)
ROE
In fiscal 2020, in light of the COVID-19 pandemic, the
Company carefully selected projects to invest in and
focused in fields where it excels. As we also turned
some assets and businesses into cash, cash flows from
investing activities was –¥54.6 billion, a decline of ¥52.5
billion from the previous fiscal year. Cash flows from
operating activities amounted to ¥98.8 billion, on a par
with the previous fiscal year. As a result, the Company
achieved ¥42.2 billion in the first year of its free cash
flow target of ¥100.0 billion over three years.
Return on assets (ROA) increased 3.8 percentage points
year on year to 6.4%, owing to strong growth in ordinary
profit and a decrease in total assets. Return on equity
(ROE) also improved strongly, by 10.2 percentage points
to 16.5%, due to growth in profit attributable to owners
of parent.
ROE
(%)
20
10
0
–10
16.5
6.4
JCR
R&I
17/3
18/3
19/3
20/3
21/3
Type of rating
Rating
Short-term debt rating
(Commercial paper)
J–1
Long-term senior debt
(issuer) rating
A–
(Stable)
Long-term debt rating
A–
Issuer rating
BBB+
(Stable)
Short-term debt rating
(Commercial paper)
a–2
Long-term debt rating
BBB+
Moody’s
Corporate family rating
Ba3
(Stable)
Environment-related investment is likely to continue
over the long term on the path to net zero emissions.
We aim to enhance our credit ratings by properly
disclosing and explaining information externally, while
prioritizing efforts to improve our financial position as
a management issue in order to secure and maintain
more favorable conditions for capital procurement
than competitors.
Continuous Days of Achieving 4ZEROES
LTIF*1
(Lost Time Injury Frequency)
Average Downtime*2 /
Downtime Frequency Rate*3
Number of Environmental and
Emission-Free Business-Related Ships
GHG Emissions*4
Number and Percentage of
Women in Managerial Positions*5
As of August 31, 2021
Fiscal 2020
LTIF
Fiscal 2020
0.34
Downtime
Frequency Rate
1.07 per ship
End of fiscal 2024
Expected Number of Ships
(only those already contracted)
Fiscal 2020
CO2 Emissions
(Scope 1)
27
9,665 thousand tons
End of fiscal 2020
Percentage of Women in Land-Based
Managerial Positions (Team Leader class)
14.1%
(Hours per ship per year)
(Number of accidents per ship per year)
(Number of ships)
(Thousand tons)
(People)
(%)
Zero serious
marine incidents
403 days
Zero
oil pollution
403 days
Zero fatal
accidents
7 days
Zero serious
cargo damage
975 days
2.0
1.6
1.2
0.8
0.4
0
Average among all industries in 2020 (1.95)
Average among marine transport industry in 2020 (1.62)
MOL’s target from fiscal 2020 (0.5 or below)
MOL’s target from fiscal 2015 to
fiscal 2019 (0.7 or below)
MOL’s LTIF track record
40
30
20
10
0
MOL’s target for average
downtime per ship
(24 hours or less)
MOL’s target for downtime frequency rate
(1.00 or below)
17/3
18/3
19/3
20/3
21/3
17/3
18/3
19/3
20/3
21/3
Source of reference values: Overview of Results of the
2020 Survey on Industrial Accidents, Ministry of Health,
Labour and Welfare
Average downtime (left)
Downtime frequency rate (right)
2.0
1.5
1.0
0.5
0
After experiencing a series of major maritime incidents
in 2006, MOL took various initiatives to establish the
world’s safest fleet. In fiscal 2010, MOL introduced the
4ZEROES as an objective indicator to measure the
outcome of our efforts, which counts the number of
continuous days of zero accidents in the four categories
indicated above. These counters are displayed at the top
of our internal website and shared with all employees,
both land-based and sea-based, to increase their
awareness of safe operations.
Aiming to further improve safety quality, MOL made its
internal LTIF targets tougher by lowering it from 0.7 or
below to 0.5 or below in fiscal 2020 and achieved this
new target the same year. This number is substantially
lower than the figures gathered by the Ministry of Health,
Labour and Welfare on the average across all industries
(1.95 in 2020) and the average for the marine transport
industry (1.62 in 2020).
Some operating ships reported main engine problems
caused by the use of bunker oil that complied with
tighter regulations for sulfur content that came into
effect in January 2020. Owing in part to these problems,
the downtime frequency rate in fiscal 2020 was 1.07
per ship, slightly exceeding our target of 1.00 or less.
However, average downtime was 21.17 hours per ship,
achieving our target.
In line with our environmental strategy in the rolling
plan, MOL is concentrating on low-carbon and decarbon-
ization businesses. We expect to begin reaping the fruits
of the seeds we have sown over the past years. By the
end of fiscal 2024, we anticipate having 27 environmental
and emission-free business-related ships, which include
ships related to LNG supply, alternative fuels, and
renewable energy. We will continue to invest heavily
in this area, including some projects currently in the
marketing phase.
Our CO2 emissions in Scope 1 have declined steadily
although reasons are partly because of the transfer of
our containership business to ONE in fiscal 2018, and the
decrease in fuel consumed in fiscal 2020 due to fewer
voyages made during the COVID-19 pandemic. As stated
in MOL Group Environmental Vision 2.1, the MOL Group
aims to achieve net zero emissions by 2050, and will
continue efforts to reduce GHG emissions.
*1 The number of work-related accidents per one million hours worked. This includes any workplace illness or injury that prevents a worker from resuming normal duties or light duties.
*2 The amount of downtime due to mechanical malfunction or accident per ship per year
*3 The number of mechanical malfunctions or accidents that result in downtime per ship per year
*4 Figures cover the Company and its consolidated subsidiaries.Emissions at ONE,
which began operations in fiscal 2018, are not included. (The emissions of ONE have been
retroactively deducted from the FY2018 and FY2019 figures to unify the scope of calculation.)
*5 Unconsolidated basis excluding loaned employees, contract employees, part-timers, etc., but including expatriate employees
14
15
39
12
7
10
10
27
1
7
9
10
48
21
7
10
10
27
25/3
(Expected)
20,000
15,000
10,000
5,000
0
18,203
17,774
12,199
11,137
9,665
17/3
18/3
19/3
20/3
21/3
50
40
30
20
10
0
25
20
15
10
5
0
28
14.1
6.9
4.5
21/3
22/3
(Expected)
23/3
(Expected)
24/3
(Expected)
25/3
(Expected)
26/3
(Expected)
50
40
30
20
10
0
20
7
5
8
4
22/3
(Expected)
12
5
3
4
21/3
24/3
(Expected)
23/3
(Expected)
Ships related to LNG supply
Ships related to alternative fuels
Ships related to renewable energy
Currently marketing
Number of women in land-based and sea-based managerial
positions (left)
Percentage of women in land-based and sea-based managerial
positions (right)
Percentage of women in land-based managerial positions (right)
Percentage of women in land-based managerial positions
(Team Leader class) (right)
We believe empowering women will lead to greater
corporate value and diversity in society. By the end of
fiscal 2025, MOL targets (1) at least 7.0% of women in
land-based and sea-based managerial positions, (2) at
least 10% of women in land-based managerial positions,
and (3) at least 20% of women in land-based managerial
positions (Team Leader class). In land-based managerial
positions, we expect to steadily increase the percentage
of women, reflecting the increase in the number of
women hired for career-track positions since the 2000s.
Our Vision, Our ValueMITSUI O.S.K. LINES MOL REPORT 2021
A Review of Our Management Plans
Until the Introduction of Rolling Plans
A Review of Rolling Plan 2020
In the 2010s, the shipping industry slumped amid softening
The introduction of rolling plans was based on two funda-
global growth and an oversupply of vessels. As we had achieved
mental ideas. First, we wanted to set out a 10-Year Vision and
great success with dry bulkers, car carriers, and in other areas
think about the plans by backcasting. Second, we decided to
of the traditional marine transport business in the 2000s,
revise plans annually rather than use three-year medium-term
we were slow to adjust our way of thinking when conditions
management plans so that we could make detailed adjust-
changed in the 2010s. However, in the process of struggling
ments to our trajectory in response to the external environ-
through simultaneous downturns for the three major vessel
ment. We began this new approach with Rolling Plan 2017,
types—dry bulkers, tankers, and containerships—and imple-
which set out three main elements of our vision: “stress-free
menting two painful business structural reforms in fiscal 2012
services,” “promotion of environmental strategies and develop-
and fiscal 2015, we gradually acquired a strong sense of crisis
ment of the emission-free business into a core business,” and
based on the realization that in volatile times we could not
“Become a Group of Business Units with No. 1 Competitiveness
continue to generate sufficient returns from conventional
in Respective Areas.” Every year since then, we have revised
marine transport alone. We gave a more concrete form to
the plan in accordance with the latest conditions and with our
this sense of crisis by launching a rolling plan in fiscal 2017.
sights set on the 10-Year Vision for 2027. Currently, we are
tackling the measures under Rolling Plan 2021.
An Outline of Rolling Plan 2020
Recognizing the difficulty in obtaining appropriate and stable returns with conventional marine
transport alone, we strove to ascertain the expected future changes in the business environment and
formulate a strategy by working back from our 10-Year Vision.
Become a Group of Business Units with No. 1
Competitiveness in Respective Areas
Fiscal 2020 Measures
Measures and strategies
Rolling Plan 2020 goals
Fiscal 2020 achievements
Analysis of the
pandemic’s effect
Conduct mega-trend forecasts
At meetings of the senior management team, conducted thorough discussions, which
were based on analysis data produced by nine experts in respective fields who were
selected from in-house divisions, and reflected the conclusions in a business plan
(disclosed in June 2020, updated in December 2020)
Defensive measures
Reduce market exposure
Decided to reduce fleet by 17 vessels, mainly car carriers
Offensive measures
Implement growth strategies or
structural reforms based on the
characteristics of each business
Portfolio strategies
Select new investments carefully and secure
total free cash flow of ¥100.0 billion between
fiscal 2020 and fiscal 2022
Bulk carriers, wood chip carriers, short sea ships, and multipurpose cargo ships:
Decided to launch a specialized company to strengthen competitiveness
Car carriers: Sought efficiency by integrating vessel operations with those of Nissan
Motor Car Carrier
MOL Chemical Tankers: Merged with Nordic Tankers (acquired in fiscal 2018), includ-
ing merging of operations
Decided on approximately ¥90.0 billion in new investments while advancing liquidation
of assets and businesses
Achieved ¥44.2 billion in free cash flow at the end of the first of three fiscal years
during which we aim to realize cumulative free cash flow of ¥100.0 billion
Focus investments on offshore businesses
Decided on investment of ¥43.0 billion, including additional contributions to existing
businesses (included in the aforementioned ¥90.0 billion)
Business strategies
Enhance customer satisfaction through digital
technologies and environmental measures
Increased the number of customers using the “Lighthouse” service (see page 21)
Launched an LNG bunkering vessel business
Environmental
strategies
Promote environmental and
emission-free businesses
Continued focusing investment on LNG-related businesses and wind power
generation-related businesses
Revised MOL Group Environmental Vision 2.0
Enhancement of
organizational strength
Advance projects through
cross-organizational collaboration and
improve productivity Groupwide
Launched 16 cross-divisional project teams
Rationalized administrative work in corporate divisions
Integrated Group companies
Mega-Trend Forecasts
Forecast announced in June 2020
(used as a premise for Rolling Plan 2020)
Revised forecast announced in December 2020
(used as a premise for Rolling Plan 2021)
Cargo
2020
2021
2022
Recovery of cargo
movements to
2019 level
Cargo
2020
2021
2022
2023
Recovery of cargo movements
to 2019 level (words in
parentheses indicate the
change compared with the
previous forecast)
Assumed GDP
growth*2
-5.0%
3.0%
2.0% —
Assumed GDP
growth*2
-3.5%
3.0%
2.5%
2.5% —
Portfolio Strategies
Business Strategies
Environmental Strategies
Iron ore
-4.2%
2.4%
3.2% 2022
Iron ore
2.1%
-1.8%
-1.6%
-1.3%
Concentrated investment of management
resources in the business fields where
MOL has strengths, which will mainly be
offshore businesses
Provision of “stress-free services,”
which MOL will offer from the
customer’s perspective
Promotion of environmental
strategies and development of the
emission-free business into a
core business
Achievements since Beginning the Rolling Plans
• Rebuilding the containership business through its integration into Ocean Network Express Pte. Ltd. (ONE) (started operations in April 2018) and
accumulating long-term contracts for LNG carriers and offshore businesses, which are priority investment fields
• Expanding environmental and emission-free businesses, including the launch of an LNG bunkering vessel business and the LNG-to-Powership
business and a decision to install Wind Challenger hard sails on vessels
• Curbing the increase in interest-bearing debt and achieving positive free cash flow
• Securing ordinary profit of ¥133.6 billion and profit attributable to owners of parent of ¥90.0 billion in fiscal 2020 despite the COVID-19 pandemic and
reaching the projected medium-term profit levels set when the rolling plan began
FY2017
FY2018
FY2019
Ordinary profit
ROE (%)
Free cash flow
Net gearing ratio (Times)
31.4
-8.7
-2.4
1.82
Interest-bearing debt
1,118.0
*1 Includes investment in establishment of ONE
38.5
5.2
-143.0*1
1.88
1,105.8
55.0
6.3
-6.5
1.94
(¥ billion)
FY2020
133.6
16.5
44.2
1.63
1,096.6
1,026.9
Concern over decline
from 2021 onward
2024 or later
(deteriorated)
Coking coal*3
-3.6%
-1.0%
1.0% 2023 or later
Coking coal*3
-13.9%
7.1%
0.1%
0.3%
Grain
-0.1%
4.9%
4.2% 2020
Grain
5.1%
3.2%
1.4%
1.7% 2020 (improved)
Crude oil
-7.6%
4.3%
0.8% 2023 or later
Crude oil
-8.0%
2.6%
5.3%
1.8% 2023 (improved)
LNG
-1.5%
4.3%
4.3% 2021
LNG
2.2%
3.8%
3.7%
3.6% 2020 (improved)
Steaming coal*3
-6.3%
2.7%
-0.8% 2023 or later
Steaming coal*3
-11.1%
2.5%
0.0%
0.3%
Will not recover
(deteriorated)
Automobiles
-25.0~
-35.2%
10.4%
6.8% 2023 or later
Automobiles
-23.0%
11.8%
7.7%
4.3% 2023 (improved)
Containers
-25.0%
18.2%
12.2%
2022 (concern over
possible delay)
Containers
-2.0%
0.5%
2.5%
2.5% 2022 (improved)
*2 Figures for 2020 are those reported by the International Monetary Fund (IMF).
*3 Coking coal is a raw material for steelmaking, and steaming coal is primarily a
Figures for 2021 onward are the Company’s forecast figures.
power generation fuel.
Cargo Movement Outlook in Light of the December 2020 Forecast
Dry bulk transport
Energy transport
Product transport
• China’s crude steel production and iron ore
imports have been increasing but will turn
downward in 2021.
• Unaffected by the pandemic, grain cargo volume will
continue to increase.
• Demand for crude oil transport decreased signifi-
cantly due to the rapid decline in oil demand in
2020. From 2021 onward, however, transport
volume will increase in step with the recovery
in crude oil demand.
• As the consumer sector accounts for a large
percentage of natural gas demand, it remained
firm even during the pandemic. Therefore, the
pandemic’s effect on LNG cargo movements will
be negligible.
• Steaming coal demand decreased sharply in 2020.
Steaming coal cargo movements will gradually
decline in the medium to long term as decarbon-
ization accelerates.
• The decline in automobile transport has been less
marked than expected, and overall cargo volume will
recover to the 2019 level in 2023.
• In container transport, the downward rigidity of cargo
movements was stronger than anticipated. In 2020,
cargo movements only decreased 2.0% year on year.
Container transport will generally see cargo move-
ments return to normal levels in line with the eco-
nomic growth from 2021 onward.
16
17
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021 Rolling Plan 2021
An Overview of Rolling Plan 2021
In fiscal 2020, despite the COVID-19 pandemic, we achieved a
Group Corporate Mission, for the first time in approximately 20
significant increase in profits, mainly due to a strong perfor-
years. We announced the mission together with the MOL Group
mance by the containership business. As a result, we were able
Vision on April 1, 2021. Formulated to realize this mission and
to lay the foundations for the next phase of our growth. Looking
vision, Rolling Plan 2021 sets out environmental strategies and
over the global situation, meanwhile, the rapid acceleration of
regional strategies, which we are focusing efforts on imple-
decarbonization and other signs of growing environmental
menting. Also, to clarify the targets that we are aiming for in
awareness have become more conspicuous.
our next phase, we have revised profit and financial targets for
Viewing recent events as heralding the beginning of a new
fiscal 2027.
stage for us, we revised our corporate philosophy, the MOL
The Relationship between Rolling Plan 2021 and the MOL Group Corporate Mission, Vision, and Values
Why MOL exists
What MOL values
Mission
= Purpose
What MOL will do
What MOL will achieve
Management Plan Rolling Plan 2021
We will invest approximately ¥200.0 billion
in the low-carbon and decarbonization fields over the
three years from fiscal 2021 to fiscal 2023.
Vision
= Target profile
Profit and Financial Targets for Fiscal 2027 (As of April 30, 2021)
FY2020 (Results)
FY2021 (Forecast)
FY2022 (Forecast)
FY2023 (Forecast)
FY2027 (Targets)
(¥ billion)
Profit targets
Ordinary profit
ROE (%)
Cash flows
Cash flows from
operating activities (1)
Cash flows from investing
activities (2)
Of which, investment
Asset disposal and
liquidation
Free cash flow ((1) + (2))
Financial target (Fiscal year-end)
Net gearing ratio (Times)
133.6
16.5
98.8
-54.6
―
―
44.2
1.63
100.0
15
80.0
10
90.0
10
FY2021–2023 cumulative total
350.0
-250.0
-450.0
200.0
100.0
―
―
1.25
130.0
10–12
FY2021–2026
cumulative total
800.0
-600.0
-1,000.0
400.0
200.0
1.00
• The fiscal 2027 profit targets are ordinary profit of ¥130.0 billion and stable ROE of between 10.0% and 12.0%.
• The fiscal 2027 financial target is a net gearing ratio of 1.0 time. Over the three years from fiscal 2021 to fiscal 2023, we plan to generate free cash
flow of ¥100.0 billion, and to improve our financial position by lowering the net gearing ratio.
• As soon as we achieve a certain degree of improvement in our financial position,*1 we will review our dividend payout ratio, without waiting for the
coming of fiscal 2027.*2
*1 We will use such indicators as the net gearing ratio and the equity ratio.
*2 We will decide the dividend payout ratio level in light of overall trends among companies listed on the Tokyo Stock Exchange.
New MOL Group
Corporate Mission
From the blue oceans,
we sustain people’s lives
and ensure a
prosperous future.
Values and
Code of Conduct
MOL CHARTS LOGO GUIDELINE
（Vol.1 2021.00.00）
C:100 M:85
C:100 M:70
C:85 M:60
Challenge
C:72 M:83
C:65 M:75
C:60 M:69
Honesty
C:30 M:72
C:26 M:60
C:17 M:41 Y:100
C:10 M:30 Y:100
C:8 M:25 Y:83
C:100 Y:40
C:80 Y:25
C:62 Y:20
C:100 M:36
C:100 M:15
C:22 M:50
Accountability
C:78 M:12
Reliability
K:90
最小サイズ
Teamwork
左右幅 25 以下のサイズでロゴマークを使用しないでください。
Safety (added)
25mm
Environmental
Strategies
×
Regional
Strategies
Business
Strategies
Portfolio
Strategies
Become a
Group
of Business Units
with No. 1
Competitiveness
in Respective
Areas
Enhancement of organizational strength
Work-style reform
Increasing corporate value
Increasing corporate value
Sustainability Issues (Materiality)
• Value-Added Transport Services
• Marine and Global Environmental Conservation
• Innovation for Development in Marine Technology
• Human Resource Cultivation and Community Development
• Governance and Compliance to Support Businesses
New MOL Group Vision
(= 10-Year Vision)
We will develop a variety of
social infrastructure
businesses in addition to
traditional shipping
businesses, and will meet
the evolving social needs
including environmental
conservation, with innovative
technology and services.
MOL group aims to be a
strong and resilient
corporate group that
provides new value to
all stakeholders and
grows globally.
Profit Targets
(¥ billion)
133.6
Medium-term target
for profit levels
130.0
100.0
90.0
80.0
160
140
120
100
80
60
40
20
0
-20
(1)
(2)
FY2020
(Results)
FY2021
(Forecast)
FY2022
(Forecast)
FY2023
(Forecast)
FY2027
(Target)
100円/$
Dry Bulk Business Unit
105円/$
105.95円/$
ドル円
（実績）
為替前提
Product Transport Business Unit
Others and adjustments (corporate and eliminations)
Energy and Offshore Business Unit
100円/$
100円/$
Associated businesses
Total ordinary profit
(1) In fiscal 2020, the Product Transport Business Unit saw a tempo-
rary increase in profits due to the exceptionally firm market
conditions experienced by the containership business. We are
assuming that container freight rates will normalize from around
the second half of fiscal 2021.
(2) Meanwhile, thanks to the steady accumulation of highly stable profits,
mainly by the Energy and Offshore Business Unit, ordinary profit
of between ¥80.0 billion and ¥100.0 billion is expected to be
consistently achieved from fiscal 2021 through fiscal 2023. This is
the medium-term target for profit levels that we have set since
the introduction of rolling plans.
Financial Target (Cash Flow Forecast)
(¥ billion)
200
150
198.3*3
(3) As with the three fiscal years beginning from
fiscal 2020, securing a total of ¥100.0 billion in
free cash flow in the three fiscal years beginning
from fiscal 2021
(4) Investing a total of ¥450.0 billion, of which
roughly ¥200.0 billion earmarked for investment
in the low-carbon and decarbonization fields
98.3 100.8
100
107.2
100.7
98.8
55.2
54.6
50
0
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
Cash flows from operating activities
Net cash used in investing activities
*3 Includes investment in establishment of ONE
(3) As with fiscal 2020 through fiscal 2022, over the three years from
fiscal 2021 to fiscal 2023 we will give priority to improving our
financial position and create ¥100.0 billion in free cash flow.
(4) At the same time as steadily accumulating cash flows from
operating activities, we will proceed with the liquidation of assets
and businesses. In this way, between fiscal 2021 and fiscal 2023
we plan to secure free cash flow while investing a total of ¥450.0
billion. Of this amount, we will invest roughly ¥200.0 billion in the
low-carbon and decarbonization fields.
18
19
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021 Rolling Plan 2021
• Upgrade MOL Group Environmental Vision 2.0 to 2.1 and
accelerate decarbonization initiatives
Environmental
Strategies
• Invest approximately ¥200.0 billion in the low-carbon and decarbonization
fields over the three years from fiscal 2021 to fiscal 2023
• Strengthen the environmental perspectives in business and portfolio strategies
• Advance regional strategies focused on Asia
• Implement initiatives to realize “stress-free services” that
anticipate customer needs
Business
Strategies
Upgrading MOL Group Environmental Vision 2.0
In response to the growing needs of society and the progress of our initiatives to address environmental issues, we upgraded
For details, please see “Marine and Global Environmental Conservation” on page 44.
Advancing Regional Strategies
Regional strategies are the core of our business strategies. In multifaceted ways, we will seek projects with the potential to align with
our overall strategy. Focusing on Asia and without being limited to the transport field, the MOL Group will take advantage of its collec-
MOL Group Environmental Vision 2.0 to 2.1, which sets higher quantitative targets.
tive strength to acquire large-scale projects.
MOL Group Environmental Vision 2.0
(announced in June 2020)
Medium- to long-term targets
1. Deploy commercial Net Zero GHG
Emissions deep sea vessels by 2030
2. Reduce total annual GHG emissions
from ships by 50% in 2050 (compared
to that of 2008)
3. Achieve Net Zero GHG Emissions
within this century, pursuing earlier
Brought forward the target year for beginning
the operation of Net Zero GHG Emissions deep
sea vessels
Set new medium-term targets for reducing
GHG emissions intensity
Brought forward the target year for achieving
Net Zero GHG Emissions to 2050
Established a Net Zero GHG Emissions target that
includes supply chain emissions
MOL Group Environmental Vision 2.1
(announced in June 2021)
Medium- to long-term targets
1. Deploy commercial Net Zero
GHG Emissions deep sea vessels in
the 2020s
2. Achieve an approximately 45.0%
reduction in the GHG emissions
intensity of transport by 2035 (com-
pared to that of 2019)
3. Achieve Net Zero GHG Emissions for
the entire Group by 2050
Investing in the Low-Carbon and Decarbonization Fields
Investment
(¥ billion)
Estimated return on
investment
(contribution to ordinary profit
in fiscal 2027)
Total investment in the low-carbon and
decarbonization fields
(1) Reducing the GHG emissions
of MOL’s operating vessels
(2) Developing low-carbon and
decarbonization businesses
205.0
91.0
114.0
21.0
—
—
Strengthening the Environmental Perspective in Business and Portfolio Strategies
Business Strategies
Roll out services that visualize environmental impacts and their reduction
• Anticipate customer needs by disclosing carbon footprints and establishing systems and data to enable
such disclosure
• Help reduce GHG emissions by improving the efficiency of vessel operations and visualize such improvements
Head Office
sales divisions
Collaborate /
Coordinate
Chief country /
regional
representatives
Overseas sales
divisions
Realize new businesses by strengthening cooperation
among divisions and bases in Japan and overseas
Discover projects that promise to
align with our overall strategy
Instill the One MOL concept further
Enhance internal resources
Expand fields where we collaborate with external partners
Acquire
large-scale
projects without
being limited to
transport
Accelerate decision-making by introducing the
“lead sprints” system
Our sales divisions are generally organized by vessel type. This
In this way, by laterally expanding the contact points we have
organizational structure is well suited to securing expertise and
established in specific fields, we aim to gain opportunities
maintaining relationships with customers in each industry.
beyond the transport field. As well as catering to the transport
Particularly when we develop businesses overseas, however,
needs of customers in their other businesses, we will seek
the weakness of a vertically split organization sometimes
opportunities in businesses related to ports, warehousing, and
become apparent. To compensate for this weakness, we have
real estate. To move such activities forward, we have estab-
assigned chief country / regional representatives to 25 countries
lished support capabilities, including sales support provided by
and regions.
the Corporate Marketing Division, which is located at the Head
In emerging countries, conglomerates or national policy-based
Office, and the “lead sprints” system in which the CEO has
companies rooted in the region often have huge power and are
involvement in projects from their initial stages and determines
engaged in diverse businesses. If a cargo transport project is
projects’ overall strategic focus.
acquired from a business affiliated with such a company, the Head
Given the likelihood of Asia remaining the driver of global
Office sales division specializing in the cargo or field will coordi-
economic growth over the long term, our cultural affinity with
nate with overseas bases to manage the project. At the same time
the region, and the relationships and business foundations we
and without being limited to existing transactions, the chief coun-
have built up over a corporate history of more than 130 years,
try / regional representative—who is assigned to a particular
we have assigned approximately half of our chief country /
country or overseas region but does not belong to an in-house
regional representatives to Asia with the aim of focusing on
division—will continue to submit business proposals to the vari-
the region.
ous divisions of such companies.
Implementing Initiatives to Realize “Stress-Free Services” That Anticipate Customer Needs
• Coordinate LNG-related sales (LNG carriers, FSRUs, LNG-to-Powerships, etc.)
• Transition to one-stop sales capabilities for the dry bulk business
(MOL Drybulk Ltd.)
• Increase customer convenience through DX (promote sales of “Lighthouse,” etc.)
“Lighthouse”
A platform enabling the integrated management of various marine
transport-related information that was
previously provided separately
Portfolio Strategies
Expand businesses with reduced environmental impacts and low-carbon businesses
• Capture increasing LNG demand (LNG carriers, FSRUs, and LNG-to-Powerships)
• Participate in offshore wind power generation projects
Portfolio
Strategies
• Review and reshuffle business portfolio continually
• Reevaluate the existing marine transport business from the viewpoint of
contribution to cash flows
20
21
For Our Sustainable GrowthExamples of initiatives to reduce the GHG emissions of MOL’s operating vessels• Promotion of LNG-fueled vessels• Installing Wind Challenger hard sails• Adoption of clean alternative fuels: — Biodiesel, ammonia, hydrogen, synthetic methane, etc.Examples of the development of low-carbon and decarbonization projects• LNG-related projects in emerging countries• Projects related to the offshore wind power generation business• Supply, storage, and transport of clean alternative fuelsInvest approximately ¥200.0 billion in the low-carbon and decarbonization fields over the three years from fiscal 2021 to fiscal 2023Introduction of internal carbon pricing (ICP)*Introduction of ICP in the first half of fiscal 2021 to promote in-house decarboniza-tion projects and prepare for the implementation of mandatory carbon pricing* Carbon prices that are independently established and used in-house with the aim of promot-ing low-carbon investment and initiativesMain changesMITSUI O.S.K. LINES MOL REPORT 2021
Business Overview
Business Segment Breakdown
Mitsui O.S.K. Lines, Ltd.
Consolidated subsidiary
Equity-method affiliate
Business segment
Vessel type, etc.
Main business entity
Approximate breakdown
of contract periods*1
Iron ore and coal carriers
Mitsui O.S.K. Lines
MOL Cape (Singapore)
Short term
Long term
Small- and medium-sized bulkers
*2
Dry Bulk Business Unit
P24
Wood chip carriers
MOL Drybulk
Short sea ships and
multipurpose cargo ships
Open-hatch carriers
Gearbulk Holding (Switzerland)
Crude oil tankers
Mitsui O.S.K. Lines
Phoenix Tankers (Singapore)
LPG tankers
Phoenix Tankers (Singapore)
Tankers
Methanol tankers
Mitsui O.S.K. Lines
Energy and Offshore
Business Unit
P26
Product tankers
Mitsui O.S.K. Lines
Phoenix Tankers (Singapore)
Chemical tankers
MOL Chemical Tankers (Singapore)
LNG carriers
Offshore businesses
Mitsui O.S.K. Lines
Joint ventures
Steaming coal carriers
Mitsui O.S.K. Lines
Product Transport
Business Unit
P28
Car carriers
Mitsui O.S.K. Lines
Nissan Motor Car Carrier,
Euro Marine Logistics (Belgium)
Containerships
Ocean Network Express (Singapore)
Terminals and logistics
Utoc, MOL Logistics
Ferries and coastal RoRo ships
MOL Ferry, Ferry Sunflower
Associated
Businesses and Others
Real estate
P30
Maritime affairs
Daibiru
Mitsui O.S.K. Passenger Lines, M.O. Tourist, tugboat companies,
MOL Techno-Trade
*1 Contracts with periods of two years or more are classified as “long term.” However, contracts in which freight rates are linked to short-term market conditions are not
classified as “long term.” Other contracts are classified as “short term.”
*2 Since cargo contracts for small- and medium-sized bulkers are mainly short term, we strategically curtail the effect of market conditions by also procuring vessels with
short-term charter periods in line with the cargo contracts.
Highlights
Fiscal 2020 Revenues by Business Segment
Began operations in April 2021
following integration of the Group’s
dry bulk resources; improving
customer services and expanding
business opportunities through
one-stop services
Providing services through the G2
Ocean operating fleet pool, which
enjoys the advantage of having
the world’s largest open-hatch
carrier fleet and network
Diverse lineup of tankers; also
focusing on transport of clean
alternative energy fuels, such as
methanol and ammonia
The world’s largest LNG carrier fleet;
currently expanding LNG-related
offshore businesses based on our
expertise and experience
Integration of the containership
businesses of three Japanese ship-
ping companies, began operations in
fiscal 2018; got on a stable trajectory
in the third year of operations, and
currently growing profits
A stable source of profits that
complements the highly volatile
marine transport business
Associated Businesses, Others
10%
Associated Businesses
8%
Others
2%
¥991.4 billion
Product Transport
Business Unit
40%
Car carriers
14%
Containerships*3*4
22%
Ferries and
coastal RoRo ships
4%
Dry Bulk
Business Unit
22%
Dry bulkers
22%
Energy and
Offshore
Business Unit
28%
Tankers
16%
LNG carriers and
offshore
businesses*4
8%
Steaming
coal carriers
4%
*3 Includes terminals and logistics businesses
*4 ONE, which is responsible for containership businesses, and joint ventures, which are the principal entities
engaged in LNG carriers and offshore businesses, are equity-method affiliates and therefore have not been
included in the consolidated revenues above.
Fiscal 2020 Fleet Breakdown by Vessel Type
Ferries and coastal RoRo ships
2% (15 vessels)
Cruise ships, others
0% (3 vessels)
Containerships
8% (60 vessels)
Car carriers
12% (95 vessels)
Others
4% (33 vessels)
Steaming coal carriers
5% (44 vessels)
809
vessels
Dry bulkers
33% (268 vessels)
Tankers
22% (180 vessels)
LNG carriers and
offshore businesses
14% (111 vessels)
133.6
5.4
Divisions Supporting Business Advancement
Ordinary Profit (Loss) by Business Segment
(¥ billion)
Safety Operations Headquarters
Environment & Sustainability
Strategy Division
Technology Innovation Unit
P40
P44
P48
160
120
80
40
0
-40
31.4
2017
8.7
13.6
15.4
-6.3
38.5
2018
7.7
21.1
21.9
-12.2
55.0
10.8
6.7
25.4
12.0
2019
2020
102.6
29.7
-4.2
(FY)
22
23
Dry Bulk Business Unit
Energy and Offshore Business Unit
Product Transport Business Unit
Associated Businesses, Others, and adjustments
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021
Overview of Operations by Business Segment
With the completion of structural reforms and
the establishment of MOL Drybulk, we are now
ready for a turnaround.
For the Dry Bulk Business Unit, fiscal 2020 was the bottom year of a
medium-term growth cycle. The impact of the COVID-19 pandemic was
significant in the fields of iron ore and coal carriers and specialized
bulkers (open-hatch carrier business which is handled by equity-
method affiliate Gearbulk Holding AG, and wood chip carriers), which
saw short-term decreases in transport demand. Particularly in the first
half of the fiscal year, these vessel types struggled amid slumping
market conditions. However, thanks to a pickup in demand centered on
China, since the beginning of 2021, market conditions have recovered
significantly to surpass the break-even points of both vessel types. In
addition, small- and medium-sized bulkers—in relation to which we
have been reducing market exposure for some time—were largely
unaffected by the pandemic. This stability demonstrates the benefits of
the strategy we have been implementing to increase the market resil-
ience of this vessel type.
As I mentioned, we faced difficulties during a certain period of fiscal
2020, but we were also able to take forward-looking measures. One
notable example was establishing MOL Drybulk Ltd. In fiscal 2020, we
decided to launch the company, which commenced operations in April
2021. MOL Drybulk integrated the wood chip carrier business (previously
managed by the former Wood Chip Carrier Division), the small- and
medium-sized bulk carrier business (previously managed by the former
Bulk Carrier Division), and the short sea ships and multipurpose cargo
ships business (previously managed by the former Mitsui O.S.K. Kinkai,
Ltd). By bringing together various large and small dry bulk carriers and
highly specialized human resources, the Company aims to further
improve customer service and transport quality, thereby enhancing
the competitiveness of the dry bulk business.
In addition, with regard to the open-hatch carrier business, for which
an allowance for doubtful accounts was recorded at the end of fiscal
2020, we have completed structural reforms focused on streamlining
vessel costs, and have been able to take a step forward toward the
establishment of a business constitution that will allow stable opera-
tions to continue.
Admittedly, compared with other business segments, the Dry Bulk
Business Unit was in some respects trending toward balanced contrac-
tion due to multiple structural reforms. However, given the business
foundations we have established and the market’s ongoing recovery
from the downturn caused by the pandemic, I believe that we are now
ready for a turnaround. Each of the businesses that the business unit is
engaged in still has significant growth potential. As the global economy
develops and the population grows, the size of the market is expected to
continue growing in tandem with GDP growth. We can achieve competi-
tive advantages through continuous investment in fuel-efficient vessels
and the practical applications of technologies that reduce environmental
impact, such as Wind Challenger and LNG-fueled vessels, ahead of
other companies.
Based on the aforementioned view of the market environment, the
Dry Bulk Business Unit will make a concerted effort to get back on a
growth trajectory by taking advantage of the benefits of the structural
reforms implemented up until fiscal 2020. From a longer-term perspec-
tive, we will place particular emphasis on expanding our overseas
customer base by conducting aggressive sales efforts that are backed
by appropriate portfolio strategies. At the same time, we will develop an
asset-light business model to steadily accumulate cash flows. Through
dry bulk transport—essential for the development of the global econ-
omy—the Dry Bulk Business Unit will contribute to society and increase
the MOL Group’s corporate value.
Toshiaki Tanaka
Director, Senior Managing
Executive Officer
Director General of
Dry Bulk Business Unit
Dry Bulk Business Unit
Fleet Breakdown by Vessel Type
Short sea ships and
multipurpose
cargo ships
48 vessels
Wood chip
carriers
38 vessels
268
vessels
(As of March 31, 2021)
Capesize bulker
81 vessels
Small- and
medium-sized
bulkers
101 vessels
Panamax
23 vessels
Handymax
49 vessels
Handysize
29 vessels
Revenues and Ordinary Profit (Loss)
(¥ billion)
(¥ billion)
21.9
291.1
277.1
12.0
222.0
450
300
150
0
2018
2019
2020
Revenues (left)
Ordinary profit (loss) (right)
–4.2
30
20
10
0
–10
(FY)
Market Environment Analysis
Opportunity
Risk
Increase in cargo movement over the medium to long term due to
global economic growth and an increasing population
Stagnation of the global economy and cargo movements due to the
reemergence of COVID-19 or rising trade protectionism
Growth in customer demand for environmental impact reduction
A decline in transport demand due to changes in the
domestic industrial structure
Expansion of business opportunities in emerging countries, such as
India, Southeast Asian countries, and South American countries
A decrease in demand for certain dry bulk cargoes due to
growing environmental awareness
Business Unit Strategy
Consolidate resources
and strengthen
competitiveness through
the newly established
MOL Drybulk
Expand the overseas
customer base with a
focus on Asia
Advance environmental
strategies, such as
increasing biomass fuel
transport and
introducing LNG-fueled
vessels
Improve customer
convenience through
digitalization
Strengthen sales
capabilities by
developing high-
value-added vessels and
training specialists
Fiscal 2020 Initiatives
Fiscal 2020 business results: A stable contribution to profits from the
medium- to long-term contracts of the iron ore and coal carrier busi-
ness did not fully absorb the impact of a lackluster spot market as a
whole, which was due to the pandemic, and the recognition of an allow-
ance for doubtful accounts of approximately ¥6.0 billion in relation to
loans to equity-method affiliate Gearbulk Holding. As a result, the
business unit recorded an ordinary loss of ¥4.2 billion, a decrease
of ¥16.3 billion from the ordinary profit of the previous fiscal year.
Iron ore and coal carrier business: We devised and proposed
environmental solutions, including LNG-fueled vessels and wind-
powered vessels.
Bulk carrier and wood chip carrier business: It was decided to integrate
the Group’s bulk carrier (small- and medium-sized bulkers) and wood
chip carrier business and short sea ship and multipurpose cargo ship
business to establish MOL Drybulk as a provider of one-stop services
(began operations on April 1, 2021).
Open-hatch carrier business: We established the basis for further
progress in streamlining the vessel costs of equity-method affiliate
Gearbulk Holding.
Fiscal 2021 Priority Measures
Iron ore and coal carrier business:
• Enhancement of environmental strategies and transport quality—By
introducing LNG-fueled ships, the Company will promote the reduction
of CO2 emissions in Scope 1. At the same time, we will incorporate into
our service menu the knowledge gained from such in-house initiatives,
and propose solutions to our customers that help lower their Scope 3
CO2 emissions.
• We will acquire short- to medium-term contracts in overseas growth
markets (as an addition to medium- to long-term contracts that are
mainly with Japanese companies).
MOL Drybulk:
• We will promote marketing strategies aimed at supporting the
decarbonization efforts of customers, including expansion of biomass
fuel transport.
• We will advance sales activities for Panamax bulkers across divisions
and improve profitability; increase overseas sales activities for
multipurpose cargo ships, with a focus on Southeast Asia; and expand
wood chip carrier-related sales activities targeting China’s market.
• In India, which is seeing significant growth in demand for dry bulk
transport, we will increase sales efforts and strengthen cost
com petitiveness. As for Europe and the United States, we will
provide high-value-added services that meet the needs of highly
environment-conscious customers.
24
25
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021
Overview of Operations by Business Segment
Kenta Matsuzaka
Director, Senior Managing
Executive Officer
Director General of Energy
and Offshore Business Unit
Energy and Offshore
Business Unit
Fleet Breakdown by Vessel Type
Steaming coal carriers
44 vessels
Coastal ships
(excluding coastal RoRo ships)
28 vessels
SEP vessels
5 vessels
368
vessels
(As of March 31, 2021)
Offshore
businesses
13 vessels
FPSOs
6 vessels
LNG-to-Powerships
1 vessels
FSRUs
3 vessels
Subsea support vessels
3 vessels
Tankers
180 vessels
Crude oil tankers
40 vessels
LPG tankers
9 vessels
Product tankers
22 vessels
Methanol tankers
20 vessels
Chemical tankers
89 vessels
LNG carriers
(including LNG bunkering vessels
and ethane carriers)
98 vessels
Revenues*1 and Ordinary Profit
(¥ billion)
(¥ billion)
289.3
25.4
29.7
278.8
400
300
280.9
21.1
200
100
0
2018
2019
2020
40
30
20
10
0
(FY)
Revenues (left)
Ordinary profit (right)
*1 Joint ventures, which are the principal entities engaged in LNG carriers and
offshore businesses, are equity-method affiliates and therefore have not been
included in the consolidated revenues above.
26
Ahead of the global shift in energy use, the busi-
ness unit will lead a “Green Ocean Shift” of MOL.
In fiscal 2020, the Energy and Offshore Business Unit performed well,
growing profits year on year despite the complex business environment
that arose as the COVID-19 pandemic increased market volatility and
significantly affected crew member rotation and docking arrangements.
In the first half of the fiscal year, the Tanker Division saw the market rise
steeply due to higher demand for offshore storage that accompanied a
drop in crude oil prices. Amid a favorable market, through the acquisi-
tion of comparatively long contracts with periods of about a year, the
division ensured the profitability of vessels without cargo contracts
matching their respective procurement periods and was able to curb the
impact of a subsequent deterioration in the market. Also, vessels such
as LNG carriers, which are primarily engaged in long-term, stable
businesses, performed steadily and produced results in line with projec-
tions at the beginning of the fiscal year.
Meanwhile, the energy transport business is approaching a period of
major change. Accordingly, in fiscal 2020 we outlined global scenarios
that extend through to 2050 and to 2070, decided how the Group should
respond to society’s ever-increasing expectations in relation to carbon
reduction and decarbonization, and prepared a concrete plan of action.
Going forward, the use of fossil fuels is likely to decrease worldwide, and
we will probably transport different types of energy resources. Further,
new business opportunities that are not limited to transport will arise,
such as offshore wind power farm projects and various offshore-related
businesses. Therefore, I strongly feel that we must respond with agility
to major changes in the external environment. In light of this situation, in
April 2021 we changed our name from the Energy Transport Business
Unit to the Energy and Offshore Business Unit.
As we have long been keenly aware of the need to break away from a
simple marine transport-centered business model that makes it difficult
to differentiate ourselves from other companies, we have been actively
expanding our business fields into upstream and downstream areas of
the LNG value chain. For example, we have established business in such
areas as FSRUs, LNG-to-Powerships, and LNG bunkering vessels. In the
International Energy Agency’s scenario for sustainable development,
which is aligned with the well below 2ºC scenario set out in the Paris
Agreement, demand for most fossil fuels declines, but demand for LNG
rises. In the process of decarbonization, LNG will be an important fuel
during the period of transition to new forms of energy. In particular,
without LNG it will not be possible to meet demand for low-carbon
energy in emerging countries, where robust economic growth is
expected. From a global perspective, we believe that LNG-related
businesses still have substantial scope for further growth in the short
to medium term.
In addition, the achievements and experience we have garnered
through pioneering initiatives in the LNG field have been well received
by many customers and are leading to new businesses related to the
transport and handling of clean alternative fuels, such as a project for
the development of hydrogen supply infrastructure for the data centers
of Keppel Data Centres Holdings Pte Ltd in Singapore and an ammonia
bunkering business. Concentrating on such fields as offshore wind
power, ammonia, hydrogen, and the transport of liquefied CO2, the MOL
Group aims at a “Green Ocean Shift” by contributing to clean energy
supply chains from upstream through to downstream areas. Over the
coming five to 10 years, the Group is set to change dramatically. As the
driver of this transformation, the Energy and Offshore Business Unit will
continue taking on ambitious initiatives.
Market Environment Analysis
Opportunity
Risk
Growth in demand for LNG as a clean energy during the
transition to a low-carbon or decarbonized society
Contraction of energy demand in Japan due to energy saving, a
declining birthrate, and an aging population
A rise in demand for clean energy in emerging countries
A long-term decline in fossil fuel demand due to factors such as
decarbonization and the introduction of carbon taxes
An increase in the transport of ammonia, hydrogen, and other clean
alternative fuels and related business opportunities
Geopolitical risks related to resource-producing and
consumer countries
Business Unit Strategy
Increase value added and earn
premiums by pursuing highly
challenging projects, including
transport in polar regions, and
initiatives in peripheral areas
beyond conventional trans-
port, such as FPSOs, FSRUs,
Powerships, bunkering
vessels, etc.
Strengthen low-carbon and
decarbonization businesses
with a focus on fossil fuel
demand countries and
regions, such as Japan and
Asia, and supply countries and
regions, such as Russia, the
Middle East, and Australia
Develop new businesses that
tap into the expansion of the
renewable energy industry
in such areas as wind
power generation
Strengthen businesses in
India, China, and other
countries where energy
demand is expected
to increase
Fiscal 2020 Initiatives
Fiscal 2020 business results: The business unit’s ordinary profit
increased ¥4.3 billion year on year, to ¥29.7 billion. The Tanker
Division earned highly stable profits from the medium- to long-term
contracts of crude oil tankers and methanol tankers while benefiting
from a sharp rise in the market for spot-chartered crude oil tankers
and product tankers. Also, five newly completed LNG carriers con-
tributed to profits.
Expansion of highly challenging projects: We concluded charter con-
tracts for three new ice-breaking LNG carriers for the Arctic LNG 2
Project in Russia. Following on from the Yamal LNG Project in the same
country, this latest project increases our Northern Sea Route-related
business, which has a high entry barrier.
Expansion of the LNG business field beyond transport: In addition to
the beginning of operations by our first LNG bunkering vessel, the GAS
AGILITY, KARMOL’s first FSRU was completed and will contribute to
the Senegal LNG-to-Powership Project.
Development of new energy-related businesses: We concluded a char-
ter contract and shipbuilding contract for Asia’s first service operation
vessel (SOV) project.*2 Also, we concluded a transport contract with
Tohoku Electric Power Co., Inc., in relation to a steaming coal carrier
equipped with Wind Challenger (see page 51).
Advancement of strategies for liquefied chemical total logistics:
MOL Chemical Tankers Pte. Ltd. integrated vessel operations and sales with
the former MOL Nordic Tankers A/S and began operating under the MOL
Chemical Tankers brand.
Fiscal 2021 Priority Measures
Environmental strategy:
• In the energy sector, we will acquire new business opportunities
beyond the transport field by continuing to leverage strengths, namely,
a track record and knowledge that other companies cannot match.
While readying for the introduction of carbon-free fuels, such as
ammonia and hydrogen, we will prepare to meet the demand for the
transport of these new energy fuels.
• We will foster future earnings mainstays by concentrating on the
expansion of low-carbon and decarbonized businesses. For example,
we will advance business in areas related to wind power generation,
such as self-elevating platform (SEP) vessels*3 and SOVs,*2 which we
have been developing for some time.
• In preparation for the delivery of the first Wind Challenger-equipped
vessel in 2022, which will be partly propelled by wind power, we will
establish a “wind brand” and submit proposals to customers.
Regional strategy:
• In Japan, we will focus on capturing the business opportunities that
emerge with the development of a low-carbon or decarbonized society.
In India, China, and other countries where energy demand is expected
to continue rising, we will sustain and deepen multilayered sales
activities in coordination with the Group’s chief country / regional
representatives. Also, in resource-rich countries and regions that are
trying to break away from fossil fuel-dependent economies, such as
Russia, the Middle East, and Australia, we will develop new businesses
in the low-carbon and decarbonization fields.
*2 SOVs have accommodation for maintenance technicians working on the multiple
wind turbines that make up an offshore wind farm, allowing technicians to stay
on-site for extended periods.
*3 SEP vessels are special vessels that extend four legs to the seabed to enable
the conduct of installation work for wind power generation equipment in
stable conditions.
27
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021
Overview of Operations by Business Segment
Hirotoshi Ushioku
Managing Executive Officer
Director General of Product
Transport Business Unit
Product Transport
Business Unit
Fleet Breakdown by Vessel Type
Containerships*1
60 vessels
Car carriers
95 vessels
170
vessels
(As of March 31, 2021)
Ferries and
coastal
RoRo ships
15 vessels
*1 All containerships are chartered to and operated by ONE.
Revenues*2 and Ordinary Profit (Loss)
(¥ billion)
600
400
200
0
545.1
475.4
102.6
395.1
6.7
–12.2
2018
2019
2020
(¥ billion)
120
80
40
0
–40
(FY)
Revenues (left)
Ordinary profit (loss) (right)
*2 ONE, which is responsible for containership businesses, is an equity-method
affiliate and therefore has not been included in the consolidated revenues above.
28
Always keeping abreast of the latest information
and trends in an array of fields, we are
preparing for growth in the post-COVID-19 era.
At the beginning of fiscal 2020, we expected that movements of most
of the cargoes handled by the Product Transport Business Unit would
decrease, with the exception of daily necessities. However, huge “stay-at-
home demand” centered on North America caused a surge in the cargo
volume being handled by logistics infrastructure, utilization of which had
been declining due to the COVID-19 pandemic. This led to a tightening of
supply and demand for transport space, producing a hike in container
freight rates. Consequently, Ocean Network Express Pte. Ltd. (ONE),
which is engaged in the liner business, posted favorable business results
that significantly surpassed initial forecasts at the beginning of the fiscal
year. Although these extraordinary business conditions have continued
into fiscal 2021, we believe that both the demand and supply sides will
settle down eventually, and the situation will gradually subside.
On the other hand, the car carrier business and ferry business were
severely impacted by the pandemic. In the car carrier business, demand
for completed car transport declined significantly due to a sudden drop
in production and exports by car manufacturers. As emergency mea-
sures, MOL reduced the car carrier fleet by 12 vessels and implemented
organizational structural reforms centered on integrating the manage-
ment and operations of subsidiary Nissan Motor Car Carrier Co., Ltd.
As a result, we were able to achieve a significant improvement in
the vessel supply–demand balance as well as various improvements
in operational efficiency. As for the ferry business, the freight transport
operations showed signs of trending toward recovery from the second
half, but the passenger operations continued to face challenging
conditions. In partnership with a wide range of stakeholders, such as
municipal authorities and the operators of hotels, inns, and various
transport systems, the latter division is anticipating the post-pandemic
era and steadily conducting sales activities aimed at creating passenger
demand by marketing so-called “casual” cruises.*3
Fiscal 2020 was also a year that made me keenly aware of the
increase in environmental awareness globally as well as the stepped-up
pace at which we are expected to take measures in response. In realizing
stress-free services for customers, we must not only provide safe,
high-quality transport services in accordance with our existing policies
but also contribute to the reduction of GHG emissions in the entire
logistics field by following the concept of life cycle assessment, without
being limited to marine transport. In our ferry business, Japan’s first two
LNG-fueled ferries are scheduled for launching in December 2022 and
March 2023. Meanwhile, the car carrier business will also replace its
existing fleet with LNG-fueled vessels and consider developing next-
generation car carriers with a view to realizing zero emissions vessels.
The sales divisions of the Product Transport Business Unit have the
characteristics of network-type business. In the logistics field, the
business unit has many branch offices around the world, mainly oper-
ated by Group companies, and has approximately 2,500 employees. We
must use these sites and human resources as our values for pursuing
synergies with the domestic and overseas networks of our port and ferry
businesses and car carrier business. Moreover, broadening our per-
spective and making business proposals aimed at capturing the new
demands for product transport of our existing customers related to dry
bulk and the energy industry is important.
While the pandemic remains unpredictable, industries around the
world are preparing for the post-COVID-19 era. As it is strongly cor-
related with global economic development, the product transport busi-
ness still has enough room for further growth. With a strong sense of
our mission to support the businesses of customers and the lives of
people around the world by connecting production and consumption
regions, we will meet customer needs by utilizing a “data-centric”
approach that always keeps us abreast of the latest information and
trends in an array of fields and by demonstrating flexible creativity.
*3 Elegant, comfortable MOL Group cruises that do not have a formal dress code
https://www.mol.co.jp/casualcruise-sunflower/ (only available in Japanese)
Market Environment Analysis
Opportunity
Risk
An increase in logistics activity resulting from an economic recovery
following containment of the pandemic
A slowdown in consumption due to the reemergence of COVID-19
An increasing need to reduce environmental impact in
customers’ supply chains
A rise in trade protectionism that suppresses demand for
marine transport
Wide adoption of IT and digital technologies that
help improve customer services
Changes in the structure of trade and a decline in transport demand for
completed cars due to stricter environmental regulations or
technological innovations, such as the widespread introduction of
electric vehicles (EVs)
Business Unit Strategy
Accelerate the reduction of the
environmental impact of
transport through such
measures as the steady
replacement of the existing
fleet with LNG-fueled vessels
Establish a fleet and
organization that can flexibly
adjust to changes in
completed car shipments
Capture product transport
demand of the Dry Bulk and
the Energy and Offshore
business units’ existing
customers
Improve customer services
and the efficiency of vessel
operations through DX
Fiscal 2020 Initiatives
Fiscal 2021 Priority Measures
Fiscal 2020 business results: Overall, the business unit posted a year-
on-year increase of ¥95.9 billion in ordinary profit, to ¥102.6 billion. This
growth was attributable to a rise of ¥112.9 billion in profits from the
containership business, which more than compensated for pandemic-
related decreases in profits from the car carrier and ferry businesses.
Car carrier business: Based on profit-making foundations strengthened
by reduction of the car carrier fleet and organizational reform measures
implemented in fiscal 2020, we will continue reducing costs further and
utilizing information and communications technology (ICT) and DX to
improve the efficiency of vessel operations and stowage planning.
Ferry business: We will capture demand resulting from modal shifts in
freight transport while continuing to develop strategies for the passen-
ger business with an eye on the post-pandemic era.
Logistics business: We will concentrate on distinctive fields where we
can take advantage of our strengths. Specifically, we will expand the
container transport of steel coils and chemical logistics including tank
container transport.
Containership business: We will continue making every effort to achieve
an early resolution of disruptions in logistics supply chains. At the same
time, we will improve customer services through such measures as the
promotion of e-commerce.
Car carrier business: In response to a dramatic slump in cargo move-
ments, we flexibly took emergency measures, including reduction of
the car carrier fleet by 12 vessels—equivalent to approximately one-tenth
of the total fleet—and the implementation of organizational reforms.
Ferry business: Passenger operations rigorously implemented infection
countermeasures. At the same time, the division collaborated with
municipal authorities and the operators of hotels, inns, and various
transport systems in the vicinity of points of departure and destinations
to conduct marketing campaigns for new cruises that allow passengers
to have an enjoyable excursion while avoiding crowds.
Containership business: In response to a sudden drop in demand for
cargo movements at the beginning of the fiscal year due to the pan-
demic, ONE flexibly and swiftly adjusted the frequency of its services.
After demand began recovering from the summer onward, ONE
responded to a tightening supply–demand situation by introducing
temporary services and securing new containers.
For details on ONE’s initiatives, please use the link below to
view the company’s disclosure documents.
https://www.mol.co.jp/en/ir/data/cfh/pdf/one2104_e.pdf
29
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021 Overview of Operations by Business Segment
Yutaka Hinooka
Director, Managing Executive Officer
Responsible for Real Estate
Business, Cruise Ship Business,
Trading Business, and Others
Osamu Sakurada
Executive Officer
Responsible for
Tugboat Business,
New Businesses,
and Others
Associated Businesses
Business Fields
Real Estate
Leasing office buildings and other real estate pri-
marily through Daibiru
Cruise Ship
Operating the cruise ship NIPPON MARU
Tugboat
Assisting large vessels’ arrival at and departure from
base ports in Japan and overseas and operating
transport vessels to and from offshore wind power
generation sites
Trading
Selling bunker, PBCF* and other equipment, and
materials, etc.
Others
Conducting a travel agency business, which mainly
arranges business travel, and an overseas personnel
consulting business as well as developing new
businesses, etc.
* Propeller Boss Cap Fins, which are energy-saving devices.
For details, please visit this website. https://www.pbcf.jp/
Revenues and Ordinary Profit
(¥ billion)
(¥ billion)
101.1
12.9
96.5
12.3
78.9
9.4
120
90
60
30
0
2018
2019
2020
Revenues (left)
Ordinary profit (right)
16
12
8
4
0
(FY)
We will create value added in a broad range of
fields by promoting collaborations that transcend
existing organizational frameworks.
In fiscal 2020, while profits increased in the real estate and trading
businesses, the cruise ship and travel agency businesses faced
extremely tough conditions due to restrictions on the movement of
people caused by the COVID-19 pandemic. However, some valuable
insights were gained as the strengths of the MOL Group became appar-
ent even in divisions where business results were lackluster. In the
cruise ship business, for example, despite uncertainty caused by the
pandemic, we were able to reconfirm the existence of a robust customer
base and deep-rooted demand for the enjoyment of safe, reassuring
cruises. Similarly, we gained a new appreciation of how solid demand is
for the arrangement of visas for overseas assignments, which is one of
the strengths of the travel agency business. In fiscal 2021, we will take
swift measures to respond to the aforementioned demand as well as
demand in other areas.
Associated Businesses demonstrate a competitive edge by combining
the distinctive strengths of each business segment with the networks
and knowledge of the Group. In the real estate business, Daibiru
Corporation has solid business foundations in Japan and is leveraging
the Group’s resources to expand overseas. The company already owns
two office buildings in Vietnam, a country with abundant growth poten-
tial, and made a foray into Australia in 2020. Daibiru preserves manage-
ment autonomy as a listed company, has business characteristics and
experiences market cycles that differ from those of marine transport,
and contributes stable profits over the long term. Therefore, the com-
pany plays a role in mitigating the volatility of the Group’s business
results. In the tugboat business, the Group’s tugboat companies are
laterally sharing best practices to raise the overall level of services. In
addition to established operations, we plan to expand the tugboat busi-
ness in Japan and overseas and increase the scale of peripheral busi-
nesses related to offshore wind power generation sites—an area where
we expect growth in the coming years. Known for providing fine dining
and hospitality, the cruise ship business will restore its operations to
offer regular cruises as soon as possible and once again fulfill its role as
the face of the Group. Meanwhile, the travel agency business will extend
its customer base through hybrid operations that combine painstaking
services delivered conventionally by personnel with internet-enabled
business travel management—an area where we are ahead of competi-
tors. Further, in fiscal 2020 we established a consulting company for
non-Japanese human resources in the Philippines targeting Japanese
companies in collaboration with the Magsaysay Group, our longtime
partner in seafarer training. Leveraging the Group’s expertise, the new
company is already tackling its first project. (For details, please see the
bottom of this page.)
We feel that the pandemic has increased the pace of change in expec-
tations with respect to the roles that the Group should fulfill. In the wide
range of fields that they cover, Associated Businesses must now
provide value that goes beyond the reliable implementation of operations.
By removing boundaries between the MOL Head Office and Group
companies and stepping up personnel and information exchanges
that transcend existing organizational frameworks, the Group will
make a concerted effort to accelerate the creation of value added
and differentiation.
Fiscal 2020 Initiatives
Fiscal 2021 Priority Measures
Fiscal 2020 business results: Significantly affected by the pandemic, the
cruise ship and travel agency businesses recognized lackluster business
results, which outweighed solid performances by the real estate and
trading businesses. Consequently, as a whole Associated Businesses
recorded a ¥2.8 billion year-on-year decrease in ordinary profit, to
¥9.4 billion.
Real estate business: Daibiru opened its first property in Australia,
275 George Street.
Cruise ship business: Upon completion of refurbishment work, the
NIPPON MARU resumed cruises.
Tugboat business: The LNG-fueled tugboat ISHIN, which is operated
by Nihon Tug-Boat Co., Ltd., received the highest rating under Japan’s
energy conservation rating system for coastal ships. Moreover, in recog-
nition both of its excellent environmental performance and outstanding
performance as a tugboat, the ISHIN won a Ship of the Year 2019 award
in the Work Ship/Special Purpose Ship category.
Real estate business: Daibiru proceeded with the demolition and
rebuilding of Midosuji Daibiru Building. The new building will present a
model for addressing such social issues as energy saving, the effective
use of renewable energy, and new work styles in the post-COVID-19 era.
Cruise ship business: In order to properly respond to the needs of
customers who want to enjoy cruises even in the midst of the COVID-19
pandemic—needs that became apparent in fiscal 2020—we will work to
ensure customers have a sense of security and rebuild our business.
Tugboat business: The Group’s tugboat companies in each region will
maximize stable profits by laterally sharing best practices for efficient
vessel operations, advanced technologies, and seafarer recruitment.
In addition to promoting the adoption of new technologies for tug-
boats that contribute to the reduction of environmental impact, the
business will take advantage of its long-cultivated domestic and over-
seas sales networks as well as the Group’s expertise to develop busi-
In addition, a tugboat owned and operated by Green Kaiji Kaisha, Ltd.
nesses related to offshore wind power generation sites and other fields
completed successful trial operations using euglena biodiesel fuel,
which has a low environmental impact.
that are expected to grow.
Trading business: With external partners, MOL Techno-Trade, Ltd. has
begun studying the establishment of a commercial business for the
development of hydrogen-powered vessels (Setouchi Cradle Project) and
the supply of hydrogen as a vessel fuel.
New business: With our local partner the Magsaysay Group, we jointly
established a company engaged in the overseas personnel consulting
business in the Philippines, MM Empower Corp.
Trading business: While maintaining existing businesses, we will follow
on from PBCFs and accelerate the development of new businesses in
the environmental field, such as hydrogen-related businesses.
The Inaugural Project of MM Empower, Our Overseas Personnel Consulting Company
Jointly established by MOL and the Magsaysay Group in August 2020, MM Empower Corp. has received an order for its first project, which entails
helping establish a system that allows a subcontractor of Osaka Gas Co., Ltd. to hire pipe fitters from the Philippines for long-term assignments
in Japan. At the beginning of 2021, the new company conducted online
recruitment and has already begun providing Japanese-language training
for the first 19 prospective employees. In addition, MM Empower plans to
suggest optimal resident statuses for recruits, introduce training facilities,
consider education for trainees before they come to Japan, provide local
information, and support communication.
By fully leveraging the MOL Group’s networks in the Philippines—the
world’s largest exporter of labor—and the extensive experience and knowl-
edge accumulated by the Group during decades of seafarer development
and training, the company will continue enabling cross-border connections
between workers and employers, thereby contributing to the sustained
growth and development of both countries and their societies.
Trainee orientation before the commencement of education in the Philippines
30
31
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021
Special Feature
Creating New Businesses Unbound by
Existing Frameworks —MOL Incubation Bridge—
Introduced in September 2019, MOL Incubation Bridge is an internal system for proposing new businesses. It aims to provide opportuni-
ties for MOL Group employees to fully demonstrate their abilities and actively take on new challenges. The system also serves as an
incubator of ideas for businesses and services that are not bound by existing frameworks and which match needs in a changing business
environment. This special feature focuses on two employees who submitted proposals under the system in its inaugural year and have
since launched businesses based on the proposals.
Case 1
Provide a “PLUS” in the form of
new value for the marine transport
industry by partnering with
other industries
Takuya Sakamoto
Representative,
MOL PLUS Co., Ltd.
concentrated in a limited number of companies. A great many
people have commented that they expect a creative “chemical
reaction” to occur when MOL—a company that has accumulated
know-how on oceans, vessels, ports, and cargoes over more than
130 years—begins to explore partnerships with start-ups.
We have established three criteria for the selection of investees.
First, the start-up must have the potential to grow into a new core
business of the MOL Group from a medium- to long-term perspec-
tive. Second, we should be able to create a partnership based on
mutually complementary strengths. Third, the start-up must have
a business with the potential to realize our mission of adding new
value, or a “plus,” to marine transport and society. By investing in
companies that meet these criteria, we aim to grow together with
investees. At the same time, we expect to gain “strategic returns”
in the form of help with the creation of core businesses and the
creation of business synergies, “financial returns” when exiting
from investees, and “secondary returns,” such as personnel
exchanges and knowledge sharing with investees and the incor-
poration of their organizational models.
MOL PLUS is one of the businesses developed during the first
year of activities under the MOL Incubation Bridge system. In
response to MOL’s commitment to transformation, which led to
the introduction of the system, and to serve as a good model for the
future, I will devote myself to business management with a strong
desire to achieve results.
When an in-house announcement was made about a system for
proposing new businesses, I immediately decided to take part.
I made this decision because, based on my experience of working
at MOL, I felt the Company’s ability to develop and innovate in
completely new fields was underdeveloped compared to companies
in other industries. As the introduction of this new system gave me
a sense of the Company’s determination to transform itself in
earnest, my aim was to seize the opportunity to create an example
of a successful new business and thereby heighten momentum
in-house.
Fortunately, my proposal was adopted, and after a nine-month
preparation period I was able to launch MOL PLUS Co., Ltd. in April
2021. The company is a corporate venture capital entity that mainly
invests in start-ups in the initial and intermediate stages of their
development in Japan and overseas. We have included the word
“plus” in both our name and mission because we want to be a
company that adds new value, or a “plus,” to marine transport
and society by combining the innovative ideas and technologies
of start-ups with the MOL Group’s expertise and network.
I love the marine transport industry and its long tradition.
However, with the development of IT and changes in society, the
industry and the MOL Group have reached a point where they must
transform to reflect the needs of a new era. The mission of MOL
PLUS is to drive such evolution. The experience of working in
marine transport has left me feeling that there is still a great deal
of potential for creating synergies with other fields. Backward
calculation from the kind of society that is expected to take shape
in five or 10 years reveals that we can take advantage of our marine
transport know-how in a wide range of fields, including fields where
we have not previously invested. When I meet start-up entrepre-
neurs, they tell me that while such business fields as marine trans-
port, ports, and logistics represent large markets, creating new
businesses in these fields is challenging because know-how is
Case 2
Address the problems of hunger
and poverty through support for the
mechanization of agriculture in Africa,
while creating transport demand
for ourselves
Mikio Oyama
Representative,
KiliMOL Ltd.
KiliMOL Ltd. (named after “Kilimo,” meaning agriculture in Swahili,
and “MOL”), which I launched in May 2021, uses a cross-border
e-commerce website to sell used agricultural machinery to cus-
tomers in Africa and facilitates integrated transport of the machin-
ery to local areas. As Africa is a region with an economy and
population that are continuing to grow, I have been paying attention
to it for some time as a market with significant potential. Against
this backdrop, I got the idea for the business when I learned that,
although the GDP per capita in certain regions of Africa is not much
different from that of South Asia, Africa is far behind in the mecha-
nization of agriculture. In addition, the use of an e-commerce
website was based on an idea mentioned during an in-house train-
ing session when we were given an opportunity to envision and
discuss the ideal profiles of each other’s divisions in 10 years. As
Africa’s population grows, food security is expected to become an
even more important issue in the region. Given this situation, I
believe that development of a business aimed at advancing the
mechanization of agriculture has great social significance because
the business will help improve agricultural productivity throughout
Africa and thereby address the problems of hunger and poverty.
Generally, transport providers cannot create demand by them-
selves. In this sense, transport can be called a passive industry.
KiliMOL’s business is innovative for MOL as a transport company
because the business creates transport demand for itself. Moreover,
the business will establish a foothold for forays into Africa, which
despite being a promising potential market is a region where we
have had few contacts until now. I think entering the region could
become an asset for the entire MOL Group from the perspective of
acquiring a deep understanding of the situation in each country
and developing business partners and a customer base.
Most of the small- and medium-sized agricultural machinery that
KiliMOL carries has rarely been used in Africa. As we are creating a
new market, there are various challenges. But if it can effectively
stimulate demand, the company has the potential to develop into
a large business. To begin, we are targeting Kenya in East Africa,
which has thriving agriculture, many smallholder farmers, and
conspicuous economic growth. When conducting investigative
interviews and demonstrations before starting up full-scale opera-
tions, we were often well received. For example, the local media
covered our efforts. If we succeed in Kenya, we may be able to
expand the business throughout Africa. Therefore, we will continue
to actively conduct demonstrations and seek new customers.
Submitting a proposal through the MOL Incubation Bridge
system has given me a great opportunity to grow. Previously, I
worked in the Corporate Planning Division and was in charge of the
Company’s work-style reform. While serving in this position, I came
into contact with some start-ups and was greatly inspired by the
many people who had set up their own companies at a young age
and were actively developing businesses. The experience of starting
up my own business—made possible by the MOL Incubation Bridge
system—will definitely become a valuable asset for me. During the
process from application through to selection, I had the strong
impression that MOL is serious about supporting the development
of new businesses. My business has just begun, but once I have
accumulated enough experience I would like to share the lessons
I have learned and the know-how I have garnered to benefit the
entire MOL Group. I hope that the MOL Incubation Bridge system
encourages even more employees to take on new challenges.
MOL PLUS website
https://en.molplus.net/
A demonstration of agricultural machinery in Kenya
KiliMOL website
https://kilimol.net/en/pages/about_kilimol
32
33
33
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021
A Message from the CFO
We will simultaneously
improve our financial position
and implement the investment
needed for growth and
environmental initiatives.
Hisashi Umemura
Executive Officer
Chief Financial Officer (CFO)
Fiscal 2020 Review
I am Hisashi Umemura, and I was appointed as MOL’s chief
demand” and housing-related investment mainly in North
financial officer (CFO) in April 2021. In fiscal 2020, ended March
America. At the same time, with respect to the Rolling Plan
31, 2021, we initially expected to record a deficit due to the
2020 target of creating free cash flow of ¥100.0 billion over
uncertain business environment produced by the COVID-19
three fiscal years, we were able to achieve positive cash flow
pandemic. Ultimately, however, we posted our highest profit
of ¥44.2 billion in the first year. Although an extraordinary
since fiscal 2010 thanks to a favorable performance by the
business environment helped, I am relieved that we have
containership business, which reflected growing “stay-at-home
made a good start in improving our financial position.
The Financial Strategies of Rolling Plan 2021
In the 2000s, together with the explosive economic develop-
of the world’s largest shipping companies. In the 2010s, how-
ment of emerging countries, we expanded our business mainly
ever, we struggled due to an oversupply of vessels, which
in relation to dry bulkers and tankers, and rapidly became one
forced us to go through significant business structural reforms
Profit and Financial Targets for Fiscal 2027 (As of April 30, 2021)
FY2020 (Results)
FY2021 (Forecast)
FY2022 (Forecast)
FY2023 (Forecast)
FY2027 (Targets)
(¥ billion)
Profit targets
Ordinary profit
ROE (%)
Cash flows
Cash flows from operating
activities (1)
Cash flows from investing
activities (2)
Of which, investment
Asset disposal and
liquidation
Free cash flow ((1) + (2))
Financial target (Fiscal year-end)
Net gearing ratio (Times)
133.6
16.5
98.8
-54.6
―
―
44.2
1.63
100.0
15
80.0
10
90.0
10
FY2021–2023 cumulative total
350.0
-250.0
-450.0
200.0
100.0
―
―
1.25
130.0
10–12
FY2021–2026
cumulative total
800.0
-600.0
-1,000.0
400.0
200.0
1.00
several times. To become more steady in business perfor-
by expanding low-carbon and decarbonization businesses.
mance over the long term, we reduced our market exposure—
We plan to invest approximately ¥450.0 billion over the three
particularly in relation to dry bulkers—and implemented
years from fiscal 2021 to fiscal 2023. Of this amount, we have
large-scale investments in LNG carriers and offshore busi-
earmarked roughly ¥200.0 billion for investment in low-carbon
nesses, which offered the prospect of highly stable profits based
and decarbonization projects. During these three fiscal years,
on long-term contracts. As a result, we made steady progress
we expect cash flows from operating activities of ¥350.0 billion
in restructuring our business portfolio. In the containership
in total. This amount together with cash of ¥200.0 billion raised
business, which was another business segment to be improved,
from the disposal or liquidation of vessels and other assets will
Ocean Network Express Pte. Ltd. (ONE) achieved significant
create free cash flow of ¥100.0 billion in total. For environment-
profits in fiscal 2020, its third year of operations. Looking at the
related capital expenditures, we will continue actively to raise
balance sheet, meanwhile, at the end of fiscal 2020, the equity
funds by utilizing green bonds and loans and consider the use
ratio and the gearing ratio remained at the levels of 27.6% and
of transition finance that enables us to remain responsible to
1.78 times, respectively. We still need to rebuild our financial
society and meet the needs of lenders who support environ-
position to realize stable management of the Company going
mentally friendly businesses. We will proactively provide readily
forward. Continuing the strategy of fiscal 2020, Rolling Plan
understandable information to our investors and shareholders
2021 calls on the Company to secure free cash flow of ¥100.0
about our ESG and sustainability initiatives.
billion over the next three fiscal years. Under the plan, we have
also set new targets for improving the net gearing ratio, which
was 1.63 times at the end of fiscal 2020. Specifically, we aim to
improve the ratio to 1.25 times by the end of fiscal 2023 and 1.0
time by the end of fiscal 2027. Although accurately forecasting
the results of the containership business is difficult, profits
from the long-term contracts of the dry bulk business and the
energy and offshore businesses can be planned with quite
a high degree of certainty. Therefore, particularly in the three
years from fiscal 2021 to fiscal 2023, I believe that we will be
able to advance steadily toward realization of both our profit and
financial targets.
While improving our financial position, we must also con-
tinue to implement necessary investments. Marine transport is
currently in a period of transformation. The increased focus on
climate change countermeasures and decarbonization pres-
ents shipping companies with two issues: calls for reductions
in the GHG emissions of existing vessels, most of which are
fueled by heavy oil, and declining demand for the transport of
fossil fuels, which are our mainstay cargo. On the other hand,
increased environmental awareness offers us a significant
opportunity to differentiate ourselves from other companies
by visualizing and reducing GHG emissions in transport and
Financial Target (Cash Flow Forecast) (As of April 30, 2021)
(¥ billion)
198.3*
As with the three fiscal years beginning from
fiscal 2020, securing a total of ¥100.0 billion
in free cash flow in the three fiscal years
beginning from fiscal 2021
200
150
98.3 100.8
100
107.2
100.7
98.8
55.2
54.6
50
0
FY2017
FY2018
Cash flows from operating activities
FY2019
FY2020
FY2021
FY2023
Net cash used in investing activities
FY2022
* Includes investment in establishment of ONE
Shareholder Returns
As well as continuing to improve our financial position and
We have made efforts to improve our financial position, and
implement forward-looking investments, increasing share-
these efforts are likely to take several more years. However,
holder returns is also a major task. We have been pursuing a
we will consider raising the dividend payout ratio when the
dividend policy based on a target payout ratio of 20% partly
probability of achieving a net gearing ratio of 1.0 time, which
because we had to spend a large amount on business struc-
is our target set at the end of fiscal 2027, is increased.
tural reforms and investments focused on LNG carriers in the
In closing, I would like to ask our shareholders, investors,
2010s, as I mentioned earlier. We do not view this as a sufficient
and lenders for their continued support.
level of compensation for shareholders. Our aim is to provide
a level of shareholder returns that is at least in line with the
average level for companies listed on the Tokyo Stock Exchange.
34
35
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021
A Message from the Chief Environment and Sustainability Officer (CESO)
As momentum builds in-house,
I will exercise leadership as
CESO and accelerate efforts to
address our Sustainability Issues.
Toshiaki Tanaka
Director, Senior Managing Executive Officer
Chief Environment and Sustainability Officer
(CESO)
I am now serving in my second year as chief environment and
sustainability officer (CESO), a position created in April 2020.
When I assumed this position, my mission was to formulate overall
sustainability strategies and oversee the implementation of mea-
sures from a Groupwide perspective. Immediately, however, the
Group was confronted by a series of major issues related to sus-
tainability, with the outbreak of COVID-19 being followed by an
accident in which the WAKASHIO, a bulker chartered by MOL,
ran aground off Mauritius and spilled oil. In this sense, fiscal 2020
was an extremely challenging year for the MOL Group. On the
other hand, through these experiences, I feel that all our employ-
ees have strongly reaffirmed our mission to society, which is to
continue providing safe, reliable marine transport and other ser-
vices worldwide no matter what the circumstances, along with
the awareness of the enormous impact that our business can
have on the natural environment and local communities in the
event of an accident, and the social responsibility that we bear
in such cases.
With employees being more aware of social issues, such as the
SDGs, in line with social trends, and through the process of identi-
fying five Sustainability Issues (Materiality) in April 2019, recogni-
tion of the importance of sustainability has been spreading
throughout the Company. Over the past year, the momentum for
sustainability initiatives has become greater than ever. In advancing
businesses, we now not only focusing on profitability but also
sustainability. We have a widely shared sense of crisis stemming
from the realization that the survival of the MOL Group is at stake
if it falls behind with sustainability efforts.
The change in our awareness is reflected in various initiatives, including our response to the
WAKASHIO accident and the establishment of MOL Group Environmental Vision 2.1.
This shared awareness is precisely what has enabled us to react
swiftly following the oil spill that resulted from the running
aground of the WAKASHIO. In response to the accident, we have
been taking a two-pronged approach. The first set of measures is
restoring the local environment and contributing to the local com-
munity, while a second set of measures is rigorously preventing
reoccurrence and strengthening safety management capabilities.
More specifically, the first set of measures has entailed expediting
efforts to dispatch employees, provide cleaning materials, estab-
lish a local representative office, launch projects for the restoration
and protection of the natural environment, and establish a chari-
table trust. In considering contribution measures for the local
community, we are holding dialogues with a wide range of stake-
holders, such as environmental NGOs, with whom we previously
had little contact, and making use of such stakeholder feedback in
deciding on specific support. As for the second set of measures,
immediately after the accident we set up Companywide cross-
divisional project teams tasked with tackling specific themes. We
are thoroughly reforming our safety management system, which
was more centered on our owned vessels and our managed ves-
sels, by broadening its focus to include chartered vessels and
vessels operated by Group companies. Our degree of involvement
in the response to the accident may surprise some, given that
charter contracts in the marine transport industry normally attri-
bute responsibility for accidents that vessel caused to shipowners.
However, we view this accident as an issue that has significantly
shaken the foundations of our business. (For details, please see
“Value-Added Transport Services” on page 40.)
Announced on June 18, 2021, MOL Group Environmental Vision
2.1 also reflects the change in our awareness. The new vision’s
predecessor, which we released a year earlier, called on the Group
to “Reduce total annual GHG emissions from the ships by 50% in
2050 compared to 2008” and “Achieve Net Zero GHG Emissions
within this century, pursuing earlier.” These targets were aligned
with goals established in 2018 by the UN International Maritime
Organization (IMO), which deliberates on international rules
related to marine transport. However, the upgraded environmental
vision raises the bar above the IMO’s goals by setting the following
target: “With a concerted effort throughout the Group, achieve Net
Zero GHG Emissions by 2050.” Based on this target, we have for-
mulated a long-term road map for emission reduction. This is an
extremely ambitious target for the Group as its operation of a large
fleet currently consumes a great deal of fossil fuel. Nonetheless,
recognizing that emission reduction is an urgent issue for our
sustainability as well as that of society, we are determined to make
a concerted Groupwide effort to achieve the target. (For details,
please see “Marine and Global Environmental Conservation” on
page 44.)
In terms of human resources, in April 2021 we established
the Diversity & Inclusion Management Basic Policy and the
Declaration on Health and Productivity Management. Diverse
personnel are essential for the medium- to long-term
enhancement of corporate value that the MOL Group is seeking
going forward. Moreover, to enable such personnel to work with
vitality we believe that maintaining and promoting physical and
mental health is important. Accordingly, we have clarified our
commitment to diversity and health by setting out the policy and
declaration. (For details, please see “Human Resource Cultivation
and Community Development” on page 52.)
Under the new sustainability promotion framework,
we will take vigorous measures to address our Sustainability Issues.
As I have described, we are steadily implementing initiatives under
respective themes. The world is changing rapidly, however, and the
time has come for us to review the five Sustainability Issues that
we identified in fiscal 2019. We plan to make the new Sustainability
Issues consistent with the current situation and revise their
expression to make them easier to communicate and understand
in-house and externally. Further, we plan to set more-specific
goals and KPIs by the end of fiscal 2021 so that progress manage-
ment can be accurately carried out.
As part of efforts to address such tasks promptly and step up
our promotion of sustainability, we established the Environment &
Sustainability Strategy Division in April 2021. By upgrading the
Environment and Sustainability Team, which was formerly subordi-
nate to the Corporate Planning Division, to a division and increas-
ing its personnel, the new division has become the leader of the
various initiatives I have mentioned so far. At the same time, the
Environmental Management Committee, a subordinate organiza-
tion of the Executive Committee, was renamed the Environment
and Sustainability Committee to expand its scope of responsibility.
These structural changes will strengthen senior management’s
commitment not just to environmental issues but to sustainability
in general.
Our goal is to become a company that earns the trust of stake-
holders worldwide for all aspects of its businesses, including service
quality, contribution to social issue resolution, and compliance.
These are the objectives of the MOL Group that are incorporated
into the newly established MOL Group Corporate Mission and the
MOL Group Vision. By taking advantage of the growing in-house
momentum, I will help enhance the MOL Group’s corporate value by
demonstrating leadership and performing a cross-functional role
throughout the Group while moving forward decisively with reforms.
FOCUS
Dedicated division established to strengthen environmental and sustainability initiatives
By responding to a wide range of social expectations,
we will contribute to the improvement of sustainability.
Yuko Shima
General Manager, Environment &
Sustainability Strategy Division
My name is Yuko Shima, and I am general manager of the Environment
& Sustainability Strategy Division, which was established in April 2021.
With the environmental strategy set at the center of our management
plan Rolling Plan 2021 and enhancement of sustainability initiatives
becoming increasingly important as a management issue, I feel a great
sense of responsibility and fulfillment in leading the division that is
tasked with advancing the Group’s sustainability measures.
The division has three missions. The first is to establish and promote
policies and strategies related to the Group’s overall sustainability.
The second is to formulate and manage the progress of the MOL Group
Environmental Vision and provide cross-divisional support for marketing
activities across the Company in relation to environmental strategy.
Our third mission is to restore the natural environment and support
local communities in Mauritius following the WAKASHIO accident that
occurred in 2020.
Soon after its launch, in order to accelerate efforts to address envi-
ronmental issues such as global warming, the division supported the
senior management team’s deliberations and was able to announce
MOL Group Environmental Vision 2.1 in June 2021. Based on this vision,
which is a long-term action plan extending through 2050, we will steadily
implement and monitor measures and make detailed adjustments to
correct its course.
The next major tasks we need to focus on are a revision of the
Sustainability Issues that we identified in fiscal 2019 and the establish-
ment of KPIs. In the more than two years since our identification of these
issues, society’s expectations and in-house awareness in relation to
sustainability have greatly increased. Consequently, the number of
themes we should address has risen, along with the need to clarify goals
and manage progress more closely. For example, I believe that we
should review our risk management system for issues such as safety,
environmental issues, and human rights in relation to supply chains,
including yards contracted to demolish owned and chartered vessels,
because such issues were not sufficiently examined at the time of
identification of the Sustainability Issues. We plan to hold extensive
discussions in the Environment and Sustainability Committee and make
revisions during fiscal 2021.
In addition, the division will continue to work on restoring the local
environment and supporting local communities following the WAKASHIO
accident. We are tackling multiple projects in collaboration with experts
and local NGOs, coordinating with the personnel of our local representa-
tive office. In June 2021, we also completed the establishment of a fund,
the MOL Charitable Trust. Further, to ensure the lessons of the accident
are internalized by our employees, we plan to hold in-house workshops
to review the events of the accident as well as provide training programs
to deepen understanding of our social contribution activities in the
region. Drawing on my experience as the leader of the fourth team
dispatched to the local area, I will continue working toward our goals.
As mentioned above, the division’s missions are not only wide-
ranging—each of them is equally important. I will steadily advance our
initiatives while proactively disclosing information to our stakeholders.
36
37
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021
Overview of MOL’s Sustainability Issues (Materiality)
The services provided by the MOL Group, centering on marine transport, play an indispensable role as social infrastructure that supports
people’s day-to-day lives. Upon evaluating the impact on society of the business activities associated with these services from both
positive and negative perspectives and assessing the services’ relationships with respective social issues, we have identified five issues
that need to be given priority as Sustainability Issues (Materiality). We believe that tackling Sustainability Issues will contribute to the
achievement of the SDGs as well as the continuous enhancement of our corporate value.
Process for Identifying Materiality
The Sustainability Promotion Project Team, which was formed in 2018, took the lead in discussions according to the following proce-
dure, and the results were approved by the Executive Committee in April 2019.
STEP
1
Identify
candidate
Sustainability
Issues
STEP
2
Evaluate and
map each item
(Diagram
on the right)
STEP
3
Analyze risks and
opportunities for
each item
STEP
4
Finalize the
Sustainability Issues
Large
/
s
r
e
d
l
o
h
e
k
a
t
s
o
t
e
c
n
a
t
r
o
p
m
I
y
t
e
i
c
o
s
n
o
t
c
a
p
m
I
Small
Large
Impact on the MOL Group’s businesses
Revision of MOL’s Sustainability Issues
We identify social issues of great importance to both society
and the business of the MOL Group and specify them as the
Group’s five Sustainability Issues.
Value-Added Transport Services
Marine and Global Environmental Conservation
Innovation for Development in Marine Technology
Human Resource Cultivation and Community Development
Governance and Compliance to Support Businesses
More than two years have passed since we identified the Sustainability Issues. Since then, the environment surrounding the Company and
society’s expectations of it have changed at a remarkable speed. In order to reflect the current situation and to clarify goals and set KPIs
so that the Company can advance initiatives even more actively, the Environment and Sustainability Committee, which is a subordinate
organization of the Executive Committee, is conducting deliberations with the aim of revising the Sustainability Issues by the end of
fiscal 2021.
Sustainability Issues
(Materiality)
Themes / Targets / Goals
Risks
(Negative impact in the event goals on
the left are not achieved)
Opportunities
(Positive impact in the event goals on
the left are achieved)
Key initiatives associated with
the Sustainability Issues
SDGs to which we contribute via our initiatives
(Numbers in parentheses are 169 corresponding targets)
Value-Added Transport
Services
P40
• Safe and reliable transport
• Large-volume, bulk transport services
• High-quality transport services
• Elimination of maritime accidents
• Elimination of cargo accidents
• Prevention of work-related injuries
Marine and Global
Environmental Conservation
P44
• Prevention of marine pollution
• Promotion of measures to mitigate climate change
• Reduction of air pollution
• Response to environmental regulations
• Realization of transport means with low environmental impact
• Slowdown in economic activities and logistics
• Loss of trust in the Company from society
• Economic burden and damage to assets due to an accident
• Risk of casualties as a result of an accident
Climate
Change
• Decline in energy transport volume
• Delay in response to changing
transport demand and trade dynamics
• Obstruction to safe operation caused by
extreme climate conditions
Response to
Regulations
• Disruption to vessel operation
• Loss of trust in the Company from society
• Economic burdens such as fines and sanctions
Innovation for Development
in Marine Technology
P48
• Promotion of LNG fuel usage
• Advancement in the Wind Challenger Project
• Realization of autonomous sailing
• Obsolescence of existing technologies
• Inability to respond to future shortage of seafarers
Human Resource Cultivation
and Community
Development
P52
• Employment of high-quality seafarers
• Development of human resources
• Pursuit of work-style reforms
• Promotion of diversity
• Contribution to regional development
• Loss of outstanding human resources
• Decline in productivity
• Contribution to active economic activity and
creation of new transport demand
• Contribution to establishment of energy
infrastructure in emerging countries
• Long utilization of vessels through
appropriate ship maintenance, leading
to enhancement of competitiveness
• Cultivation of operational insight
• Reverifying and strengthening the safety
management system that encompasses
chartered vessels and vessels operated by
Group companies
• Implementing initiatives aimed at fostering
a safety-focused culture through holding
in-house events, training, etc.
• Incorporation of new transport demand and
establishment of new transport model that
quickly captures changes in cargo
movements
• Development of new sailing routes
(Arctic Ocean)
• Decrease in environmental impact and
reduction of transport costs by utilizing new
technologies
• Involvement in environmental rule creation
• Advancing strategies to achieve the goals
of MOL Group Environmental Vision 2.1
• Reflecting the TCFD framework in
business management
• Reduction of environmental impact by the
widespread use of LNG fuel and the
application of natural energy
• Improved competitiveness of offshore
businesses and marine transport
• Enhanced ability to respond to environmental
regulations
• Utilizing digital technologies that enable
the realization of stress-free services
• Developing technologies that
contribute to environmental
measures, vessel management and
operation support, and crew member
workload reduction
• Improvement of human resource
competitiveness through recruitment of
outstanding talent and improved work
productivity
• Promotion of innovation and response to
business opportunities
• Incorporation of various ideas by attracting a
diverse pool of talent from all over the world
• Economic development and a higher
standard of living in emerging countries
• Implementing various measures in
accordance with our Diversity & Inclusion
Management Basic Policy
• Creating an environment where employ-
ees can demonstrate their creativity
• Developing outstanding seafarers
through MMMA, a jointly owned maritime
academy in the Philippines
Governance and Compliance
to Support Businesses
P65
• Adherence to fair business transactions
• Prevention of bribery and corruption
• Establishment of information security structure
• Prevention of harassment
• Protection of human rights
• Business continuity risks due to insufficient governance and internal controls
• Corrupted corporate culture
• Highly transparent and fair management
• Decision-making based on
appropriate risk management
• Studying governance strengthening
measures through the Corporate
Governance Council
• Revising and monitoring the directors’
remuneration plan
• Reviewing the Board of Directors with
respect to such considerations as a skills
matrix and diversity & inclusion
• Promoting inclusive and sustainable industrializa-
tion (9.2) and alleviating poverty (1.1, 1.2)
• Supplying modern and sustainable energy to
developing countries (7.b)
• Preventing marine pollution (14.1)
• Environmentally sound management of chemicals
and waste (12.4)
• Promoting partnerships with the public and private
sectors (17.17)
• Improvement of energy efficiency (7.3),
promotion of clean energy use (7.a)
• Mitigation of climate change (13.3)
• Preventing marine pollution (14.1) and
protecting biodiversity (14.2)
• Promotion of sustainable forest management
(through biomass fuel transport) (15.2)
• Promoting partnerships with the
public and private sectors (17.17)
• Improvement of energy efficiency (7.3),
promotion of clean energy use (7.a)
• Improvement of sustainability through increased
resource-use efficiency and greater adoption of
clean technology (9.4)
• Efficient use of natural resources (12.2)
• Mitigation of climate change (13.3)
• Prevention of marine pollution (14.1)
• Promoting partnerships with the public and private
sectors (17.17)
• Providing access to high-quality technical and
vocational education (4.3)
• Ensuring women’s full participation and equal
opportunities for leadership (5.5)
• Providing productive employment and rewarding,
decent work (8.5)
• Promoting partnerships with the public and private
sectors (17.17)
• Ensuring equal opportunity (10.3), achieving
inclusion regardless of attributes (10.2)
• Reduction in bribery (16.5)
• Promoting partnerships with the
public and private sectors (17.17)
38
39
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021
Value-Added Transport Services
In today’s globalized society, reliable shipment of a wide variety of goods from all over the world underpins the richness and comfort of
everyday life. In addition, the existence of means to transport goods from regions with surpluses to those with shortages generates eco-
nomic activity and creates value added. As the provider of one of the main logistics arteries supporting people’s daily life and industries
around the world, the MOL Group must fulfill the role that is both its greatest responsibility as well as the very reason for its existence by
constantly providing safe, high-quality transport services.
Safety is the keystone of
our value creation.
Akihiko Ono
Representative Director, Executive
Vice President Executive Officer
Chief Safety Officer (CSO)
Safety is an eternal, unchanging task for MOL as an entity
accident from happening again. This accident has shown that
engaged in marine transport, a part of society’s infrastructure.
we need to take a more proactive approach to safety manage-
Through “transport” that links various parts of the world, we
ment and crew training for chartered vessels, with respect to
deliver resources and goods to those who need them, thereby
which our involvement has been more limited than it is for our
supporting industries and people’s daily life. For this reason,
owned vessels. Determined not to let this opportunity go to
disruption of this transport by an accident could hinder a wide
waste, I will work with a strong resolve as chief safety officer
range of activities. Of course, accidents must also be avoided at
(CSO) to heighten our levels of safety.
all costs as they can harm or damage irreplaceable natural and
In December 2020, we announced measures to prevent the
living environments, not to mention the crew members and
reoccurrence of the accident, which included establishment of
vessels that support our operations. Continuing to provide safe,
four themes: (1) Enhance the skills of crew members and
reliable transport services—and thereby maintaining the trust
ensure their safety-related behavior, (2) Review ship operation
of our customers and other stakeholders—is the keystone of
management and strengthen support system from shore side,
our value creation.
(3) Enhance methods for selecting and evaluating shipowners
In this sense, the accident in 2020 in which the WAKASHIO,
and ship management companies, and (4) Other hardware
a bulker chartered by MOL, ran aground and spilled oil was an
measures. A dedicated project team for each theme is studying
event that could shake the foundations of our business. Under
and implementing Companywide measures that transcend
shipping laws and time-charter contracts, the shipowner is
divisional boundaries. In implementing the measures, we are
usually held responsible for the damages related to an accident
seeking cooperation not only in-house but also from shipown-
caused by the vessel. As this accident was caused by a vessel
ers and other external stakeholders. By carefully explaining our
that MOL had chartered from the shipowner, in principle the
approach and gaining their understanding, we will steadily
shipowner has the legal liability. However, the majority of the
heighten safety levels.
approximately 800 vessels in MOL’s fleet are chartered from
Now, in the early 2020s, the MOL Group is facing a time of
various shipowners. Since we use chartered vessels in provid-
change. Going forward, the Group will go beyond marine trans-
ing a large part of our marine transport services, we do not
port to develop a range of social infrastructure businesses.
believe that accidents caused by such vessels have nothing to
Nevertheless, our commitment to safety will not change in any
do with us. As the charterer, we were one of the parties involved
way. Allow me to reiterate—our ability to provide value to soci-
in the accident. We have a social responsibility to support the
ety is premised on safety. With this in mind, we will continue
shipowner, work in good faith to prevent further damage and
forging ahead in pursuit of the world’s highest levels of safety.
restore the environment, and do our utmost to prevent such an
Organizational Structure Supporting Safe Operation
The Operational Safety Committee, which is a subordinate orga-
weather and sea information, and reports from domestic and
nization of the Executive Committee, deliberates and determines
international news media. The center shares timely information
basic policies and measures for ensuring and thoroughly enforc-
on risks with related parties both land-based and sea-based,
ing the safe operation of all Group vessels. In addition, the CSO is
including vessels, ship management companies, marine tech-
delegated by the CEO to supervise strategy planning and policy
nical teams, and vessel operators. Whenever necessary, the
implementation to make sure safety is maintained in the overall
center also provides advice to individual captains. In these ways,
business of the MOL Group and provide necessary advice to
the SOSC makes every effort to prevent serious accidents. In
sales units’ director generals and executive officers. The Safety
response to the accident off Mauritius in 2020, we have further
Operations Headquarters is responsible for the formulation
strengthened our support capabilities by increasing the number
and implementation of measures related to Companywide
of personnel at the SOSC and utilizing digital technologies.
safe operation.
Further, to provide support that is more closely coordinated
with frontline operations, we have established the Safety
Operation Supporting Center (SOSC) in our Head Office. Staffed
by experienced captains, the center supports safe vessel opera-
tions 24 hours a day, 365 days a year from shore. Since MOL Group
vessels crisscross the world’s oceans, they must respond effec-
tively not only to adverse weather and sea conditions, such as
stormy weather, tropical depressions, and frozen sea routes, but
also to numerous challenging situations, such as political insta-
bility and piracy. The SOSC gathers all sorts of information rel-
evant to vessels underway, including the itineraries and positions
of the approximately 800 vessels operated by the MOL Group,
The SOSC, located in our Head Office
Organizational Structure Supporting Safe Operation (Fiscal 2021)
Operational Safety Committee
Safety Operations Headquarters
Chair: Executive vice president
Members: Eight executive officers including the CEO
Observer: Chairman
Marine Safety Division
Offshore Technical Division
Smart Shipping Division
LNG Marine Technical & Ship Management Strategy Division
Ship management companies (MOL Ship Management Co., Ltd.
and MOL LNG Transport Co., Ltd.)
Marine Technical Management Division
KPIs for Ensuring Thoroughly Safe Operation
With the aim of ensuring thoroughly safe operation, the MOL
spilled oil, as of fiscal 2021 MOL has extended the scope of safety
Group quantitatively assesses safety levels and visualizes the
KPI calculations beyond its approximately 240 owned vessels and
processes for achieving safe operation. In doing so, we set goals
managed vessels to encompass all of the roughly 800 operating
using indicators such as “4ZEROES” (zero serious marine inci-
vessels of the MOL Group, including chartered vessels. The KPI
dents, zero oil pollution, zero fatal accidents, and zero serious
results of MOL’s owned vessels and managed vessels are shared
cargo damage), lost time injury frequency (LTIF),*1 average
with all employees monthly. The results of all the MOL Group’s
downtime,*2 and downtime frequency rate*3—all of which we
operating vessels and chartered vessels are calculated every
have been pursuing since 2010. We revise our standards and
three months, and plans call for sharing quarterly results
their scope in a timely manner. In fiscal 2020, we set a more
Companywide. Also, we are considering disclosing these KPI
stringent LTIF numerical target, lowering it from 0.7 or below to
results to external stakeholders via our website.
0.5 or below. Further, taking into consideration the accident in
2020 in which a chartered vessel ran aground off Mauritius and
For details on our KPI results, please see page 14.
1
2
3
4
Continuous achievement of
the 4ZEROES
LTIF:
0.5 or below
Average downtime:
24 hours or
less per ship per year
Downtime frequency rate:
1.00 or below per ship
per year
*1 The number of work-related accidents per one million hours worked. In the scope of calculations, we previously included only workplace illnesses and injuries requiring
disembarkation from vessels. However, the LTIF criterion was made more stringent in fiscal 2015 and now includes any workplace illness or injury that prevents a worker from
resuming normal duties or light duties on that day, regardless of whether the illness or injury requires disembarkation.
*2 The amount of downtime due to mechanical malfunction or accident per ship per year
*3 The number of mechanical malfunctions or accidents that result in downtime per ship per year
40
41
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021
Value-Added Transport Services
Marine Incident Readiness
The MOL Group has compiled its own response manual to deal
MOL did not conduct a drill as it was taking measures in
with emergencies involving serious marine incidents and makes
response to the accident off Mauritius.) We plan to continue
it available to all employees at all times. Moreover, we regularly
regularly conducting drills, and will disclose the details of
conduct emergency response training onboard all MOL-operated
drills externally.
vessels, simulating various situations, such as fires, water
immersion, piracy, and acts of terrorism. Once a year, we
conduct tabletop drills, which involve MOL’s CEO, relevant
executive officers, and representatives of relevant departments
and ship management companies, operating vessels, and Group
companies. The Coast Guard and the media also cooperate with
these drills. In 2018, we conducted a tabletop drill simulating the
collision of an LNG carrier with another vessel, and in 2019 we
conducted a drill simulating a fire on a containership. (In 2020,
A tabletop drill simulating an emergency response to a serious marine incident
Fostering a Safety Culture throughout the Company
Coordination between Land-Based and
Sea-Based Employees
At MOL, about 40% of sea-based employees spend significant
portions of their careers assigned to offices, such as the Head
Office. These employees are mainly assigned to departments that
require onboard experience and expertise. While providing marine
technical support that includes help with efforts to ensure safety,
sea-based employees communicate on a daily basis with the sales
division personnel working in the same office.
Onboard Training
Achieving safe operation requires not only sea-based employees
but also land-based employees to have high levels of safety
awareness based on an in-depth understanding of what is hap-
pening in frontline operations onboard vessels. MOL encourages
land-based employees to train onboard our vessels for approxi-
mately one to three weeks so that the employees can gain
knowledge and hands-on experience of vessels and vessel
operations.
Safety Campaigns
MOL takes a variety of measures to provide opportunities for
officers and employees on land and at sea to think about safety
together. During annual safety campaigns in normal years,
officers and employees visit ships in port and exchange opinions
on accident prevention with crew members in charge of on-site
safety. As a new initiative in response to the COVID-19 pandemic,
we conducted online video conferences linking land and sea in
fiscal 2020. A total of 576 employees and crew members on
board 92 vessels participated. As well as enabling employees
to have many meaningful discussions, the conferences provided
an opportunity to give moral support to crew members, who
continue to support the frontline operations of marine logistics
as essential workers despite facing a range of challenges
associated with the COVID-19 pandemic.
Operational Safety Workshops
The Marine Safety Division regularly holds Operational Safety
Workshops targeted at land-based officers and employees to
underscore that safe operation is not merely entrusted to crew
members but involves every employee. Held online, the fiscal
2020 workshops were themed on topics about which employees
are particularly concerned, including the accident off Mauritius
in 2020 and the COVID-19 pandemic’s effect on vessel operations
and crew member rotation. Numerous employees participated in
the workshops and had lively question and answer sessions and
discussions. The details of the discussions are posted on the
intranet so that employees can refer to them at any time.
A Renewed Commitment to Safety Included in a Revision of Our Values and Code of Conduct
In April 2021, we renamed our MOL CHART values and code of conduct “MOL CHARTS,” with
the additional “s” standing for “safety.” This revision signifies our unshakable resolve to pursue
world-class safety levels in light of the accident in which the WAKASHIO ran aground and
spilled oil. By instilling a stronger awareness of MOL CHARTS in Group employees worldwide,
we will further reinforce the position of safety in our corporate culture.
Rigorous Measures to Prevent Reoccurrence of the
WAKASHIO Grounding and Oil Spill Accident
Very regrettably, the WAKASHIO, a bulker chartered by MOL
engaged in providing our marine transport services, the core of
under a long-term charter, ran aground off Mauritius and
our business. Therefore, we believe that we have a responsibil-
spilled bunker oil into the sea in 2020. This accident has signifi-
ity to review all aspects of our safety management systems and
cantly impacted the local natural environment as well as the
take rigorous measures to prevent reoccurrence. Soon after
local community. Although responsibility for selection of the
the accident, we established cross-divisional project teams and
sea route and operation of the vessel lay with the shipowner,
assigned them specific themes. These teams are formulating
we view the accident as an extremely serious issue with ramifi-
and implementing measures to prevent reoccurrence, shown
cations for our management foundations because it was
in the table below.
caused by a vessel that is part of our supply chain and is
Overview of Measures to Prevent Reoccurrence
Themes
Items
Details
Enhancing the skills of
crew members and
ensuring their
safety-related behavior
Improving the safety awareness of crew
members
Improving crew members’ knowledge of
vessel facilities
• Thoroughly disseminating the outline and cause of the accident throughout the Group,
including chartered vessels
• Conducting safety campaigns and questionnaire surveys of crew members
• Producing and distributing educational videos about electronic nautical charts
Increasing our involvement in the selection of
crew members for chartered vessels
• Ensuring that shipowners rigorously comply with MOL’s requirements for crew members
• Having MOL observers participate in shipowners’ pre-boarding briefings, etc., with the
senior crew members of vessels for MOL
Reviewing ship
operation management
and strengthening
support system from
shore side
Enhancing methods
for selection and
evaluation of
shipowners and
ship management
companies
Other hardware
measures
Ensuring operating vessels select appropriate
routes and navigate safely
Sharing safety awareness with the owners of
chartered vessels
• Standardizing instructions to vessels and route confirmation procedures
• Sharing knowledge with shipowners and identifying items that need to be addressed
Enhancing Companywide vessel operation
capabilities and educating operators
• Deepening understanding of operational practices through Companywide study meet-
ings and considering internal certification for vessel operations personnel
Ensuring close coordination between land-
based and sea-based employees and enhanc-
ing the SOSC’s support of operating vessels
• Strengthening cooperation through information dissemination from the SOSC to opera-
tors and mutual communication
• Increasing SOSC personnel and reinforcing the monitoring system
• Developing and introducing a navigation risk monitoring system
Revising quality standards
• Explaining revised quality standards to shipowners and concluding memorandums
Reinforcing vessel inspections
• Implementing stricter vessel inspections based on the revised quality standards
Checking the current situations of shipowners
• Strengthening involvement with substandard chartered vessels, shipowners, and ship
management companies
Receiving external assessments of MOL’s
safety management system
• Requesting assessments of our safety management system by ship classification societ-
ies or other third parties
Enhancing vessel communication facilities
• Installing satellite communication facilities onboard our owned vessels
• Encouraging chartered vessel owners to install such facilities
Time Line of the WAKASHIO Grounding Accident and
the MOL Group’s Responses
Development and Introduction of a
Navigation Risk Monitoring System
Accident Time Line
The MOL Group’s Responses
MOL Group’s Actions
July 25
Ran aground off
Mauritius
August 6
Began spilling bunker
oil (approx. 1,000 tons)
September 11
Announced initiatives
to restore the
environment and help
the local community
September 15
Conducted dialogue
with environmental
NGOs and experts
December 18
Announced measures
to prevent
reoccurrence
January 9
Cleanup completed by
a specialist cleaning
company (arranged by
the shipowner)
Personnel contributions
• Dispatched a total of 21 employees to Mauritius as
support teams
• Established a local subsidiary and assigned
a representative
Measures to restore the natural environment
• Conducted an environmental assessment in collabora-
tion with experts on mangroves, wild birds, coral reefs,
and fisheries
Social contribution activities in collaboration with NGOs
• Partnered with an international NGO to support local
fisheries workers
• Supported a local NGO in building a new childcare facility
in the community near the area polluted by oil
• Conducted other support activities based on local needs
Measures to prevent reoccurrence
• Established project teams tasked with addressing specific
issues and formulated and implemented measures to
prevent reoccurrence
In March 2021, in partnership with NAPA Ltd., which develops
support systems for vessel operations, and Nippon Kaiji
Kyokai, or ClassNK, we began the full-scale development of
navigation risk monitoring systems, which we had been study-
ing since immediately after the accident off Mauritius as part
of efforts focused on “reviewing ship operation management
and strengthening support system from shore side”—one of
the themes of our measures to prevent reoccurrence. We have
started with development of a grounding risk monitoring
system that uses data on vessel positions and water depth to
automatically detect vessels that may enter highly dangerous
waters and issues alerts in real time. Field tests involving
actual operating vessels have already begun, aimed at an early
full-scale introduction of the system. In the long run, we plan
to develop this system into a more sophisticated navigation
risk monitoring system by working with partners.
For details on our responses to the accident,
please visit the special section of our website.
https://www.mol.co.jp/en/sustainability/incident/index.html
42
43
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021 Marine and Global Environmental Conservation
For the sustainability of both the MOL Group and society, environmental issues that can affect the entire human race—such as mitigating
climate change, preserving the marine environment, protecting biodiversity, and preventing air pollution—are crucial and should be given a
high priority. Based on MOL Group Environmental Vision 2.1, established in June 2021, we will contribute to the sustainable development of our
society and preservation of nature. Through such efforts, from the blue oceans, we sustain people’s lives and ensure a prosperous future.
Overview of MOL Group Environmental Vision 2.1
In April 2018, the International Maritime Organization (IMO)
attaining net zero GHG emissions by 2050. In response, we
adopted a strategy on the reduction of GHG emissions from
announced MOL Group Environmental Vision 2.1 in June 2021, as
ships, which comprehensively set out international shipping GHG
an upgrade of the previous vision. In the area of climate change
reduction targets and measures to achieve them. A target in it
countermeasures, which is at the heart of the new environmental
was to achieve zero GHG emissions from international shipping
vision, we have set an ambitiously high GHG reduction target and
within the 21st century. To reflect our commitment to achieving
also drew up a road map for achieving it. In addition, we clarified
this, in June 2020 we formulated MOL Group Environmental
our intention to undertake efforts that exceed regulatory require-
Vision 2.0. Since then, however, the social movement toward
ments in other areas, such as preservation of the marine environ-
reducing GHG emissions has accelerated even more rapidly,
ment, protection of biodiversity, and prevention of air pollution.
as exemplified by the Japanese government’s declaration for
MOL Group Environmental Vision 2.1
For the next generation on board this planet, the MOL Group will work collaboratively with our partners and stakeholders with creativity to
resolve environmental issues. We will continue to provide solutions for issues of high importance such as the preservation of the marine
environment, protection of biodiversity and prevention of air pollution, and in order to tackle climate change with utmost urgency, the MOL
Group will make a concerted effort to achieve net zero GHG emissions by 2050. With these contributions for the sustainable development of
our society and the preservation of nature, from the blue oceans, we sustain people’s lives and ensure a prosperous future.
Please visit our website for more details about MOL Group Environmental Vision 2.1.
https://mol.disclosure.site/pdf/en/env-vision/mol_group_environmental_vision_2.1.pdf
TCFD
Changes in social values
Changes in the external
environment
Demands from society
Sustainable ship
recycling
Paris Agreement
Focus of Environmental Vision 2.1
IMO’s adoption of GHG reduction strategy
Japanese government’s declaration of
net zero GHG emissions target
Climate Change
Countermeasures
Ballast water management
Underwater noise prevention
Management of biofouling on ships’ hull
Protection of
Biodiversity
MOL Group
Environmental
Vision 2.1
Microplastic collection and
investigation
Preservation
of the Marine
Environment
Prevention of oil pollution
Proper disposal of onboard waste,
waste oil, and bilge
Replacement of single-hulled ships
with double-hulled ships
SOx emissions countermeasures
Prevention of
Air Pollution
NOx emissions countermeasures
Protection of marine life
Post-Aichi Targets
TNFD
Smoke, soot, and particulate matter
emissions countermeasures
SBTs for Nature
Stricter ECA (Emission Control Area)
Climate Change Countermeasures
Medium- to Long-Term Targets
Highlights of Revisions
1
2
3
Deploy net zero emissions oceangoing vessels in
the 2020s
Reduce GHG emissions intensity by
approximately 45% by 2035 (vs. 2019*1)
With the concerted effort throughout the Group,
achieve net zero GHG emissions by 2050
*1 Intend to acquire certification in compliance with SBT guidance for marine
transport
2035 target: In addition to Scope 1, part of Scope 3 covered (international
marine transport operated by MOL)
2050 target: All of Scope 1, 2, and 3 covered (MOL + consolidated subsidiaries)
Brought forward the target year for beginning deployment of a
zero emissions oceangoing vessel
In response to progress in technological development and other changes in the external
environment, we aim to begin the deployment of zero emissions oceangoing vessels at an
earlier stage.
Set new medium-term intensity reduction targets
In line with the SBT guidance for marine transport, we have established new targets for
intensity reduction based on scientific evidence.
Brought forward the target year for achieving
net zero GHG emissions to 2050
To achieve the 1.5°C target, we aim to achieve net zero GHG emissions for the entire Group
by 2050.
Set a net zero GHG emissions target that includes
emissions in supply chains
We have extended the coverage of the net zero GHG emissions target from the previous
Scope 1 to include Scope 2 and Scope 3.
Five Initiatives to Achieve Medium- to Long-Term Goals
in MOL Group Environmental Vision 2.1
The MOL Group’s Pathway to Net Zero GHG Emissions
Vertical axis: GHG emissions
GHG emissions with no countermeasure taken
Reduction of the Group’s
GHG Emissions
Contribution to the
Reduction of Society’s
GHG Emissions
Strategy 1
Strategy 2
Strategy 3
Strategy 5
Adoption of
clean alternative
fuels
Enhancement of
energy-saving
technologies
Boost ship
operating
efficiency
Expanding low-carbon
and decarbonization
business through use of
the MOL Group’s
concentrated strengths
Reduction of Scope 3 emissions
Reduction through
energy-saving technologies
Reduction through operating efficiency
Reduction through
clean alternative fuels
Strategy 4
Building business models to enable
net zero GHG emissions
GHG emissions from
marine transport
Net GHG emissions
2019
Negative GHG emissions
2050
Strategy 1 Adoption of Clean Alternative Fuels
Technologies have not been established yet for using net zero emis-
expand such fleet to approximately 110 vessels by 2035, in a bid
sion fuels in large oceangoing vessels and are still under develop-
to reduce GHG emissions intensity by roughly 45%. We will start
ment. The MOL Group has already completed designing an
by adopting immediately available lower emission fuels, such as
electric-powered net zero emissions coastal tanker, and plans to
LNG and biodiesel, while at the same time work to introduce next-
commence its operations in 2022. As for oceangoing vessels, we aim
generation fuels like ammonia. We aim to achieve our targets by
to start operating net zero emissions vessels in the late 2020s, and
maximizing the reduction effect of a variety of clean alternative fuels.
Composition of the MOL Oceangoing Fleet by Fuel Type
Going Forward*3
Vertical axis: Vessels
Leading role of LNG
in the 2020s
Increased use of synthetic
methane, shifting from LNG
Increased use of ammonia
and hydrogen
Major Milestones
During the 2020s
Deploy net zero emissions oceangoing vessels
2030
Approximately 90 LNG-fueled vessels*4
2035
Approximately 45% reduction in emissions intensity
(vs. 2019, plan to acquire SBT certification)
Approximately 110 net zero emissions oceangoing
vessels
(use synthetic methane, ammonia, hydrogen, biodiesel, etc.)
2020
2035
2050
Oil fuels
Synthetic methane
Biodiesel
Ammonia and hydrogen
LNG
*3 Only includes vessels operated by MOL that fall under Scope 1 emissions
*4 Excluding LNG carriers that already use LNG as fuel
Strategy 2 Enhancement of Energy-Saving Technologies
Strategy 3 Boost Ship Operating Efficiency
In addition to promoting environmentally friendly technologies we
While accumulating industry-leading levels of big data on vessel
have developed to date, we will boldly tackle the introduction of
operations, we will collaborate with domestic and overseas research
innovative energy-saving technologies.
institutions, universities, and start-ups to increase the efficiency of
vessel operations with cutting-edge fluid analysis and AI analysis.
• Wind Challenger Project
(Please refer to page 51 for details.)
• FOCUS Project
(Please refer to page 50 for details.)
• Reduce environmental load with Propeller Boss Cap Fins (PBCFs)
• Establishment of a project team tasked with boosting ship
operating efficiency
Strategy 4 Building Business Models to Enable Net Zero GHG Emissions
• Active involvement in regulation and
rule-making
• Fair disclosure of emissions
• Development of negative emissions projects
• Creation of carbon credits
• Introduction of internal carbon pricing
• Reduction of GHG emissions in supply chains
44
45
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021 Marine and Global Environmental Conservation
Strategy 5 Expanding Low-Carbon and Decarbonization Business through Use of the MOL Group’s Concentrated Strengths
Capturing the wave of global energy shift, the MOL Group will contribute to the decarbonization of society as a whole by combining its accumulated
knowledge to enhance the value of clean energy supply chains.
Expertise in Liquefied Gas Transport
and Handling
Business Development and
Project Management Capabilities
• Broad knowledge and experience in LNG transpor-
tation with a world-class track record and in
LNG-related fields, such as LNG fuel supply and
operation of offshore LNG receiving terminals
(FSRUs)
• Extensive experience transporting liquefied gas
• Experience that includes becoming the first shipping
company in Asia to own and operate an FSRU
• First Japanese shipping company to invest in
business for self-elevating platform (SEP) vessels
for installation of offshore wind power generation
systems
Trust of Customers
Earned through
Existing Marine
Transport Operations
other than LNG, such as LPG, ammonia, and ethane
• As a member of the e5 Consortium, involved in the
development of the world’s first electric tanker
Leveraging our expertise and conducting concrete projects to help advance transition to a low-carbon or decarbonized society
Enhancing the value of the clean energy supply chains and contributing to the decarbonization of society
Generating
clean energy
(Prime Examples)
Production
• Projects related to offshore wind power farms (first SOV business in Asia,
investment in a company that owns SEP vessels, transport of wind power
generation equipment, etc.)
• Development of green hydrogen production and supply systems on ships
(Wind Hunter)
Storage and supply
• Involvement in projects for CCU/CCS and liquefied CO2 carriers for produc-
ing blue ammonia and blue hydrogen
Delivering
clean energy
Marine transport
• Transport of LNG, ammonia, and liquefied hydrogen
Storage and supply
• Joint development of ammonia fuel supply chains for ships
• Joint research into liquefied hydrogen supply infrastructure
• Operation of offshore LNG receiving terminals (FSRU and FSU)
Utilizing
clean energy
• Supply of clean electric power with LNG-to-Powerships
Use
• Proactive switching to clean alternative fuels
• Promote use of Wind Challenger systems to propel vessels with wind power
Initiatives for Environmental Issues Other than Climate Change Initiatives
Prevention of Air Pollution
Protection of Biodiversity
SOx emissions countermeasures
Compliance with ballast water regulations
• Utilizing compliant fuel with sulfur content
of 0.50% or less
• Equipping vessels with SOx scrubbers
• Switching to alternative fuels
NOx emissions countermeasures
• Installing onboard SCR (selective catalytic
reduction) systems
• Installing onboard EGR (exhaust gas
recirculation) systems
• Developing ballast water management
systems in cooperation with manufacturers
• Steadily installing the systems on
MOL-owned vessels since fiscal 2014; 215
vessels completed as of May 2021 (80%
coverage) and should finish for all vessels
in fiscal 2024
Preservation of the
Marine Environment
Collection and investigation of marine
microplastics
• Planning to install microplastic collection
equipment in a new wood chip carrier
scheduled for completion in 2022
Processing of onboard waste,
waste oil, and bilge
• Processing waste, waste oil, and bilge
(water contaminated with oil, etc.) in
compliance with applicable treaties and
environmental regulations
Initiatives regarding ship recycling
Please refer to page 75 for more information.
Support for TCFD Recommendations and Conduct of Scenario Analysis
MOL conducts scenario analysis using the TCFD framework to
and opportunities. To further enhance its response to climate
identify risks and opportunities that may arise from climate change.
change, in fiscal 2021 we plan to add a 1.5°C scenario to the cases
MOL Group Environmental Vision 2.1 incorporates the latest results
for analysis, which so far has included the well-below 2°C scenario.
of scenario analysis into measures for addressing potential risks
Please visit our website for more detailed information about disclosures based on TCFD recommendations.
https://mol.disclosure.site/en/themes/215
Governance
In April 2019, MOL established the Environmental Management
the impact of climate change in our business strategies and our
Committee (renamed the Environment & Sustainability
financial plan.
Committee effective April 1, 2021) as a subordinate committee
of the Executive Committee. The committee deliberates and
determines basic policies for climate change-related matters.
Organizations Mainly Involved in Policy Making
and Strategy Execution
On April 1, 2021, we also newly established the Environment &
Executive Committee
Environment & Sustainability Committee
Sustainability Strategy Division to execute initiatives for the
Group’s environmental strategies and sustainability issues in
an integrated manner. Going forward, we will integrate the TCFD
framework into our management plan (rolling plan) to incorporate
Corporate Planning Division
Environment & Sustainability Strategy Division
Technology Innovation Unit
Strategy
MOL strives to grasp various risks and opportunities expected to
long-term viewpoint. Especially regarding the impact of climate
result from climate change. In fiscal 2020, the Environment &
change on cargo movement, each sales division creates their
Sustainability Strategy Division held intensive discussions with
own long-term outlook based on the well-below 2°C scenario
the sales divisions to shed light on not only transition risks that
and the 3°C scenario, and quantitatively assesses the impact on
are easier to relate to a financial impact but also the impact we
their operations, using fiscal 2040 as a reference year. Going
face when physical risks materialize. In regard to overall climate
forward, we will advance our analysis based on the 1.5°C
change risks and opportunities, the Environment & Sustainability
scenario. In the meantime, we will also carry forward various
Committee monitors items, content, and the status of our
measures to demonstrate our resilience in any of these scenarios.
response to confirm the impact on our businesses from a
Major Risks and Opportunities Identified in Scenario Analysis (Items likely to have a major impact)
• Changes in energy mix • Further diffusion of EVs
• Structural change in industries
Introduction of carbon taxes
Projected changes in marine cargo movement (total tons) from 2019 to 2040
3ºC scenario: +10%
Well-below 2ºC scenario: -1% (Decline in transport demand, especially
for petroleum oil and coal)
Change in fuel costs, tighter
environmental regulations, including
EEDI*1 and EEXI*2
Advance the five initiatives in
MOL Group Environmental Vision 2.1
Implement measures to lead the
global trend toward the well-below
2°C scenario and then on to the
1.5°C scenario
*1 EEDI (Energy Efficiency Design Index): An index of the CO2 emissions of new vessels at their design and construction stages that compares the fuel economy performance of
different vessels. A reduction percentage versus a standard is established and must be met when building new vessels.
*2 EEXI (Energy Efficiency Existing Ship Index): An indicator and regulation for the fuel efficiency of vessels that will be introduced from 2023. Required standards must be
satisfied by limiting engine output limitations, etc. The standards are set at the same level as EEDI regulatory levels for new vessels in 2023.
Risk Management
In our core oceangoing marine transport business, risks related
in ship operation, and damage from natural disasters. These may
to climate change include bunker price fluctuations, disruptions
have an impact on our businesses and performance.
Please refer to “Risk Management” on page 70 for more information.
Indicators and Targets
MOL sets three medium- to long-term targets in MOL Group
efforts to reduce GHGs, including disclosing emission results in
Environmental Vision 2.1. We also actively demonstrate our
the range of Scope 1, 2, and 3.
Please refer to “The Outcomes of Value Creation” on page 14 and “Financial and Non-Financial Highlights” on page 76 for more information about Scope 1 GHG emissions.
Please visit our website for details on our Scope 2 and 3 GHG emissions.
https://mol.disclosure.site/en/themes/113
46
47
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021 Innovation for Development in Marine Technology
The MOL Group is advancing the development of novel technologies based on its broad technological base that ranges from long-
accumulated knowledge of ship hardware to the latest digital and artificial intelligence (AI) technologies, with the aim of solving various
Basic Policy on Technological Innovation
management issues, such as achieving net zero GHG emissions by 2050 and realizing the world’s highest levels of safety.
Technological development in the marine transport industry has
society, in which information technologies such as the Internet of
MOL aims to create innovation that can
upgrade marine logistics as a whole.
Makoto Yamaguchi
Executive Officer
Director General, Technology
Innovation Unit
Chief Technical Officer (CTO)
Today, the marine transport industry is facing a major inflection
the Wind Challenger Project (page 51), which plans to finish
point. With concern about the environment growing around the
construction of its first vessel in 2022; and the development of
world, customer needs are changing and industry regulations are
vessels that use clean alternative fuels. Meanwhile, we have also
being tightened. At the same time, innovation in areas such as
managed to establish a foundation for promoting technological
information technology that has advanced ahead in other sectors
development across the entire Group, such as making standard
is being adopted more actively by the marine transport industry,
processes—from decision-making to arrangement of
expanding opportunities for us to enhance value added and create
resources—and creating an internal information platform for
new businesses. Against this backdrop, the form of technological
the unit. Going forward, we will strongly advance the development
development at MOL is also changing dramatically.
of technologies that can contribute to “safety enhancement,”
The mission of MOL’s Technical Division has always been
“ environmental protection,” and “work-style reforms on ships,”
supporting safe transport services by building quality vessels
which align with the overall Companywide direction.
that can reliably carry the cargo of our customers. Accordingly,
The key to our success will be DX. The MOL Group is already
the Technical Division has focused on the management of the
taking initiatives in promoting the introduction of information
shipbuilding process, provision of feedback to shipyards from
technologies in various areas, including the development of
an operational perspective, and maintenance after the ship was
autonomous vessel navigation that should reduce the workloads
completed. As a result, technological development tended to be
of crew members and enhance safety; the utilization of big data
relatively limited to the engineering aspects of ships, such as
for ship operations in the FOCUS Project (page 50); market fore-
design, structure, machinery, and other hardware. However,
casting; and optimization of the scheduling and allocation of car
numerous new technological requirements have been emerging
carriers (page 51). I believe that as a company actually operating
recently, such as sensing, AI, and other digital technologies,
vessels and running a marine transport business, we can achieve
to realize a more sophisticated system for safe operations,
our unique forms of technological innovation through DX by fully
technologies to reduce environmental impact, such as
leveraging the voluminous data and expertise accumulated in
GHG emissions, and technologies to operate in new business
vessel operations and marine transport. As the entire logistics
fields, including offshore businesses. The scope of our
industry is poised to undergo major change with DX, we will strive
technological development has been expanding remarkably.
to increase our competitiveness while being the first to identify
Established in April 2018, the Technology Innovation Unit
emerging needs so that we can lead the transformation.
consists of the Technical Division, the Smart Shipping Division,
Last, I believe the concept of co-creation will become even more
MOL Information Systems, Ltd., and the Offshore Technical
important in overcoming challenges and realizing sustained growth
Division (please refer to “Organizational Structure for
in a time when major changes are expected of the marine trans-
Technological Innovation” on page 49). Through collaboration
port industry. Over many long years, we have built a wide network
among these four organizations, each with their respective and
of partners that includes domestic and foreign shipbuilders and
unique know-how, the unit is working to create new value added
research institutions. As chief technical officer (CTO), I will continue
and realize technical innovation that matches this new era for
endeavoring to contribute to the development of MOL and the
the MOL Group. In the three years that have passed since the
entire marine transport industry by shining a light on the path
unit’s establishment, we have made progress in a number of
of innovation for the MOL Group and proactively encouraging
projects, including the Wind Hunter Project, which seeks to
co-creation to achieve this.
harness the power of wind for propulsion and power generation;
traditionally focused on the engineering aspects of ships, such as
Things (IoT), big data, and AI are utilized in business.
design, structure, machinery and other hardware around hulls,
The time has come for the marine transport industry to adopt
engines, cargo holds or tanks, other machinery and cargo
the benefits of these technological advances. The MOL Group has
handling equipment, etc., aimed at safety, efficiency, and
clarified its goals for technological innovation in line with the
maintainability of ships. However, amid recent advances in
direction of its management plan. To achieve these goals, we
computer performance, higher-capacity and faster communications,
will focus on the technological development that is unique to
and the proliferation of high-performance and inexpensive
the Company by combining technologies related to vessels
sensing devices, the DX revolution has advanced broadly across
and information technologies.
Our Vision for Technological Innovation
Lead the industry in the development of innovative technologies related to marine transport
Aim to Increase Competitiveness by Enhancing the Value Added of Our Services
through Technological Innovation
Action
Guidelines
1) Develop innovative technologies for safe operations
2) Introduce technologies that reduce the workloads of crew members and improve their
working conditions to achieve higher retention rates
3) Develop innovative technologies that help realize the MOL Group’s environmental strategy
Safety
Environment
Support for
work-style reforms on ships
Key Themes in Our Technological Innovation
Autonomous vessel
navigation technology
FOCUS
Clean alternative fuels
Energy-saving technology
Response to changes in the business environment (offshore businesses / SDGs)
Elemental technologies using ICT
Organizational Structure for Technological Innovation
The MOL Group established the Technology Innovation Unit in
Technological Development Platform
April 2018 with the goal of stepping up its efforts in technological
development. The unit comprises four organizations: the
Technical Division, which is in charge of managing and develop-
ing technologies on the engineering aspects of vessels; the
Smart Shipping Division, which is in charge of marine-related
ICT; MOL Information Systems, Ltd., a Group company
responsible for providing Groupwide IT support; and the Offshore
Technical Division, which was created in October 2020 to rein-
force technological development in the offshore business field.
These four organizations collaborate to promote the development
of next-generation technologies. Additionally, for each develop-
ment project, the Technology Innovation Unit actively pursues
inter-industry collaboration with outside parties, including other
companies, organizations, and research institutions.
Universities /
research
institutions
Private
companies
MOL
Information
Systems, Ltd.
Smart Shipping
Division
Technology
Innovation
Unit
Technical
Division
Offshore
Technical
Division
Shipbuilders /
manufacturers
National and
local
governments
48
49
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021 Innovation for Development in Marine Technology
Topic 1 Progress in Autonomous Vessel Navigation Projects
Topic 3
Launch of Support System for Car Carrier Allocation Planning
The MOL Group is developing technologies for autonomous vessel
navigation with the aim of increasing safety in vessel operations and
reducing workloads for crew members. By introducing technology
that supports crew members, we intend to reduce human error,
which is said to be the cause of approximately 70% to 90% of
maritime accidents, and thereby realize safe vessel operations. We
are currently working on the development of technologies for the
three functions—recognition, judgment, and operation—that are
essential for ship navigation.
Recognition component
Judgment component
Operation component
Radar / Automatic Identification System (AIS) /
Cameras (visible light, infrared) /
Light Detection and Ranging (LiDAR)*1
Automatic collision avoidance algorithm
Automatic collision avoidance
Automatic ship berthing and unberthing algorithm
Automatic ship berthing and unberthing
Sensor fusion*2
Gyrocompass
Anemometer
Other Components for Autonomous Vessel Navigation
Cybersecurity
Remote monitoring
*1 A remote sensing technology that uses light in the form of a pulsed laser to measure the distance and
physical attributes of far-away objects.
High-precision Global Navigation Satellite System (GNSS)*3
*2 A technology for combining data from multiple sensors, such as radar, AIS, image recognition systems,
and LiDAR.
*3 A technology for obtaining location data using positioning satellites.
This component recognizes accurate information
about other ships, obstacles, or structures such
as berths, precise distance from them, and the
vessel’s own angle by integrating various data from
sensing devices (including ones mentioned above)
and other equipment, and sends such data to the
“judgment” component.
Using the data from the “recognition” component,
optimal collision avoidance routes as well as berthing/
unberthing routes are determined in consideration of
the weather and sea conditions and information from
the Electronic Chart Display and Information System
(ECDIS). Information of the generated routes are
passed on to the “operation” component.
Considering the ship’s own performance, a set
of commands are created to make the ship pre-
cisely steer along the route generated in the
“judgment” process, and delivered to the related
actuators.
Achievements to Date and Future Plans
In March and April 2021, MOL demonstrated an automatic berthing and unberthing system using the large-size car ferry SUNFLOWER SHIRETOKO, which
is owned and operated by Group company MOL Ferry Co., Ltd. It was the first successful demonstration in the world of automatic berthing and unberthing
by a large-size car ferry, which is susceptible to wind force. (https://www.mol.co.jp/en/pr/2021/21043.html)
Moreover, in what is likely to be a world first, MOL plans to conduct a field test of autonomous pier-to-pier vessel navigation by existing merchant ships
using a combination of various technologies under development in cooperation with various partners. In 2020, we began to develop technologies and
install the necessary equipment on these ships. In 2021, we plan to conduct verification tests of each technology, and then carry out final testing through
berth to berth.
Topic 2
Release of Fleet Tour™, a New Application in the FOCUS Project
The FOCUS Project is an initiative that utilizes big data obtained
from MOL-operated vessels. In fiscal 2018 and 2019, we released
the Fleet Viewer® and Fleet Performance® applications. These
applications use voluminous data collected from approximately
10,000 sensors on each vessel to observe the conditions of the
operating vessel in a timely manner not only on the ship but also
from shore, and utilize such information for advanced monitoring
of each vessel in operation and propulsion performance analysis,
with the aim of further enhancing safe operations and improving
efficiency.
In fiscal 2020, as the third application in the FOCUS Project, Fleet
Tour™ was released in August as a virtual ship tour application.
With this application, it is now possible for ship management com-
panies and ship operators to view 360° pictures and videos of
various parts of ships remotely from PCs and smartphones even
under conditions that make a physical visit to the ship difficult, such
as during the pandemic. Fleet Tour™ can be utilized for vessel
management in such ways as comparing conditions of vital areas—
main deck, cargo compartment, engine room, etc.—at different times,
or horizontally sharing the Company’s maritime expertise and
knowledge by adding remarks to each photograph. In these ways,
we will further enhance safe navigation.
MOL is planning further expansion of data volume by increasing
the number of vessels equipped with sensors and utilization of data
for climate change countermeasures through monitoring CO2
emissions or other means. We will continue to promote digital
utilization in our unique way by making the most of our fleet, one
of the largest in the world.
May 2019 Release of
Application #1
February 2020 Release
of Application #2
August 2020 Release of
Application #3
Fleet Viewer®
Fleet Performance®
Fleet TourTM
Advanced monitoring
application for ship data
Ship propulsion
performance analysis
application
Virtual ship tour
application
In May 2021, the MOL Group commenced operations of a support
system for car carrier allocation planning that uses mathematical
optimization.*4 Theoretically, there are as many as several million
options for the allocation of our approximately 100 vessels with
varying ship types and specifications to meet demand for marine
transport of automobiles from manufacturing bases to consumer
sites around the world. As both demand from customers and the
situation of our vessels keep changing, planning the optimal alloca-
tion for the entire fleet is an extremely daunting task. By utilizing
the system, we are able to analyze and compare a large number
of options and derive the optimum solution in a short time, and
thereby flexibly respond to changes in transport demand. In addi-
tion, we can improve transport efficiency for the entire fleet of
vessels, which should reduce fuel consumption per unit load and
consequently lower environmental impact.
*4 An underlying technology of AI. For the purpose of decision-making and
problem-solving, the technology finds an answer that minimizes (or maximizes)
objective functions under given constraints and conditions.
installation of hard sails that are smaller in size than the original
one. Taking this opportunity, we aim to expand our lineup of sails
to cover a broader range of vessel types. Moreover, we have newly
formed a project team that includes sales personnel in order to
incorporate the viewpoints of the sales department in development.
We will step up activities to propose adoption of the Wind
Challenger system to customers and further expand the project.
Topic 4
Progress on the Wind Challenger Project
This project is an ambitious attempt to reduce burdens on the
environment by converting wind energy into propulsion using hard
sails and cut the amount of fuel consumed by large merchant ships
that currently depend mostly on fossil fuels for propulsion. Because
Wind Challenger’s propulsion assist equipment is installed on ship
decks, it does not interfere with engines that burn clean alternative
fuels such as LNG and methanol, or measures taken on the hull to
reduce propulsion resistance, meaning it can add to the benefits of
other energy-saving technologies. This is one of the great advan-
tages of Wind Challenger. A single sail is estimated to reduce GHG
emissions by roughly 5% on routes between Japan and Australia
and 8% on routes between Japan and the West Coast of North
America. In the future, by installing multiple sails and combining
with other GHG emission reduction measures, it is expected to
become a powerful means toward achieving the targets set forth
in MOL Group Environmental Vision 2.1 (please see page 44).
Currently, preparations are underway for completion of a new
coal carrier in 2022, which will be the first merchant ship equipped
with a Wind Challenger system. In addition, we have entered into a
partnership with Enviva Partners, a major global company in the
wood biomass energy field, and begun to examine the design and
Launch of Wind Hunter Project on Path to Zero Emissions Using Wind Power and Hydrogen
In November 2020, MOL launched the Wind Hunter Project,
which utilizes its accumulated knowledge and technologies
from the Wind Challenger Project. This project entails the
use of sails for propulsion and uses any leftover wind power
energy to generate hydrogen through water electrolysis,
which is stored on the ship. When the wind is too weak and
sails cannot provide enough propulsion power, electricity
generated from the stored hydrogen and fuel cells can be
converted into propulsion power. By upgrading this system,
we ultimately aim to develop a zero emissions vessel that
does not emit any GHGs at all.
As the first stage, a demonstration experiment using a
12-meter sailing yacht is being conducted until December
Demonstration Experiment Using a Sailing Yacht
Wind
Direction of
ship’s navigation
2021, and after that, a verification test will be carried out with
a 60-meter vessel. Our final goal is to develop and build a
Electric
propeller
Electrolyzer
Hydrogen generation
zero emissions oceangoing vessel by 2030.
Power generation
turbine
Power
Power
Power
generation
generation
generation
Flow when winds are strong
Flow when winds are weak
Fuel cells
Hydrogen storage alloy
Electric
power
Power
generation
Hydrogen
release
Hydrogen
storage
High-purity
hydrogen
delivery
Desiccant
50
51
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021
Human Resource Cultivation and Community Development
Human resources drive growth of the MOL Group and underpin its brand and reliability. Based on MOL CHARTS, the values shared by all
Group members worldwide, we will sustain our growth and establish a new competitive superiority by achieving real diversity management
that fosters, promotes, and empowers personnel from many different backgrounds. Further, by providing training through in-house educa-
tional institutes and offering stable employment, we will secure highly competent crew members—who are indispensable for our opera-
tions—and contribute to the economic and industrial development of emerging countries.
Basic Policy on Human Resource Development and Deployment
With each passing year, the Company’s needs for human
creativity to bring about change, (2) producing leaders who can
resources have become more and more sophisticated in order
set and pursue clear visions together with team members, and
[Human Resource Development] Provide opportunities for diverse personnel to get together to
grow, and enable every person to bring out the best of their abilities
Change in Human Resource Deployment Policy
In the past, MOL’s basic approach to the allocation of human
of management to specify priority areas. In addition, through
resources has long been to assign needed personnel in accor-
Companywide initiatives to improve productivity, we are in the
dance with the work volume projections of each division. Amid
process of freeing up some personnel by reducing and out-
significant changes in the business environment, however, a
sourcing some routine work positions so that we can reassign
more focused allocation of human resources has become
surplus personnel to focused areas, especially in the
needed. Starting in fiscal 2020, MOL strengthened its approach
environment-related and offshore business fields.
to execute its business strategies, such as expansion in busi-
(3) cultivating an organizational culture that encourages diverse
to deploy personnel more strategically based on the decisions
ness domains beyond marine transport and the reinforcement
personnel to generate creative ideas and take on challenges.
of regional strategies centered on Asia. To reliably fulfill these
Moreover, we will improve productivity through initiatives under
needs, MOL must promote qualified personnel from a more
work-style reforms, etc., and reallocate surplus personnel to
diverse pool of talent than ever before, without regard to their
priority business areas.
attributes.
At the same time, on both land and at sea, MOL is keen to create
MOL will secure the personnel necessary to advance its
attractive workplaces through initiatives that enhance employee
business strategy by (1) fostering employees who embody MOL
engagement, and to promote health management based on the
CHARTS with personal initiative, a sense of responsibility, the
belief that maintaining the mental and physical health of its
competence to play important roles in a global market, and the
employees is an essential foundation for the Company.
Diversification of the Labor Market
Expansion of Business Domains
• Diverse human resources participating in the labor market,
including women, the elderly, people with disabilities, and
foreign nationals
• Expansion into new business domains beyond marine transport,
based on the idea of addressing social issues centering on the
environment
• Diverse career goals and senses of values of individual workers
• Response to rapid advances in technology
Our Vision
Enhance the MOL Group’s personnel competitiveness
through organizational and human resource reforms
to achieve sustainable development of various social
infrastructure businesses, centering on marine
transport and to address social issues, including
environmental conservation
(1) Foster employees who embody MOL CHARTS with personal
initiative and a sense of responsibility
(2) Produce leaders who can set and pursue clear visions
(3) Cultivate an organizational culture that encourages
creative ideas and challenges
Work-Style Reforms:
Mechanism to Accelerate Improvement in Organizational Strength
Establish a mechanism that improves
productivity and leads to new ideas and
an innovation-oriented mindset
Enhance employee
engagement
Individuals
Promote work-style
reforms with approaches
from both organization
and individuals
Organization
Promotion of Diversity & Inclusion Management: A Driving Force for New Growth
Human Resource Development
Organizational Development
Rules and Environment Development
Provide opportunities for diverse personnel to get
together to grow, and enable every person to bring out
the best of their abilities
Foster a corporate culture that respects diverse
personalities and values, and allows employees to
demonstrate their individual strengths
freely and openly
Develop rules and work environments that can
leverage the capabilities of a diverse group of people
Health Management (as a foundation for everything)
Talent Management Enhancement
MOL’s business is diversifying and new business activities are
the skills and experience that employees have gained through-
increasing in areas beyond its traditional marine transport
out their careers in various fields, we will be able to increase
domain. On the other hand, the career goals of employees are
the competitiveness of the organization by deploying personnel
changing, and ways of working are multiplying. Under these
in areas where they can apply their abilities the most. For
circumstances, to further improve the abilities of each and
younger employees, identifying areas in which they can grow
every employee—our most valuable resources—we are prepar-
and reinforce will increase their motivation and translate into
ing to introduce a talent management system. By visualizing
more efficient personnel training.
Global Human Resource Management
The diversification of MOL’s business operations is happening
2021, seven national staff members have been appointed to the
all over the world. As part of our regional strategy, which is
position and are working actively to fulfill their roles.
included in the sales strategies in Rolling Plan 2021, we will
Also in July 2021, MOL established Human Resources Division
invigorate our sales activities by strengthening cooperation
(HRD) offices, affiliated with the Human Resources Division at
across the Head Office business divisions, corporate divisions,
the Head Office, within the chief executive representative offices
and overseas bases as well as training and promoting national
in the United States, the United Kingdom, and Singapore as
staff who can lead our strategies locally. One such measure is
bases to advance our global personnel strategy. By globally
promoting national staff members to a deputy country / regional
managing the skills, qualifications, and career plans of national
representative position, which was created in January 2021 to
staff around the world through HRD offices, we will broaden the
support the chief country / regional representatives. As of July
scope for talented personnel to demonstrate their abilities.
Initiatives to Develop Local Communities
Contributions to Maritime Industry in Oman
Since the early 2000s, MOL has been providing continuous help to the Omani government, which was facing the challenges of fostering the
maritime industry, by dispatching personnel and giving close support through representatives stationed in the country, and thereby contributing
to the launch and development of Oman Shipping Company (OSC), a nationally run marine transport firm, and Oman Ship Management Company
(OSMC), which manages the fleet for OSC. In August 2021, the first Omani captain was appointed for an LNG carrier co-owned by MOL and OSC,
marking a major milestone in talent development. Our company will continue to contribute to the development of Oman’s maritime industry and
Operation of Maritime Academy in the Philippines
For a long time, MOL has proactively contributed to the fostering of seafarers in the Philippines under the Academia–Industry Linked Program
promoted by the Philippine government. Advancing this initiative further, MOL has been running MOL Magsaysay Maritime Academy (MMMA), one
of the largest independent maritime academies in the Asia–Pacific region, with a local partner since 2018. As of 2021, the fourth year since the
academy’s establishment, a cumulative total of 668 students (total of first-year through third-year students as of the
end of August 2021) have enrolled at MMMA to acquire the knowledge and skills of marine transport professionals.
The MOL Group expects to secure a stable supply of quality candidates for officers by actively employing MMMA
graduates, thereby realizing the world’s highest level of safe operations. We will continue striving to foster excellent
talent to support the development of the MOL Group and local communities.
Improve productivity
human resources.
52
53
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021 Human Resource Cultivation and Community Development
[Organizational Development] Foster a corporate culture that respects diverse personalities and
values, and allows employees to demonstrate their individual strengths freely and openly
Diversity & Inclusion Management
The MOL Group believes that its competitiveness is derived
from the standpoint of creating a better society for everyone.
from personnel with diverse backgrounds, including outward-
Based on the following basic policy drawn up in April 2021, MOL
looking attributes such as gender, age, disability, and national-
focuses on providing support and creating an environment for
ity, as well as inward-looking attributes such as lifestyle,
diverse personnel to work actively and nurturing a corporate
experience, and value systems. We think this is also important
culture that embraces and respects diversity.
Diversity & Inclusion Management Basic Policy (formulated in April 2021)
The Mitsui O.S.K. Lines Group will create new value by combining the diverse individuality and capabilities of all Group employees, all over
the world, and ensure sustainable enhancement of corporate value. We position diversity and inclusion as the driving force of new growth,
and will implement the following initiatives:
Provide opportunities for diverse personnel to get together and grow, and enable every one of them to bring out the best of their abilities.
Foster a corporate culture that enables them to express their diversity, individuality, sense of value, and points of view, freely and openly.
Flexibly establish a human resource system and workplace environment that can leverage the diversity of the Group.
Further Empowerment of Women
Further empowering female employees is an essential aspect
Advancement in the Workplace. To realize the plan, we will
of advancing diversity & inclusion. In line with this idea, we
redouble our efforts to empower women by assigning positions
have proactively updated our systems for each life stage of our
that match the individual abilities and by providing growth
employees, such as childcare support, and expanded assis-
opportunities through strengthening talent management, while
tance for career development. In recognition of these efforts,
also offering diverse career
MOL was selected as a “Nadeshiko Brand” company by the
opportunities along multiple
Tokyo Stock Exchange and the Ministry of Economy, Trade and
career paths.
Industry for being a company that excels at promoting women
in the workplace. In March 2021, we renewed our action plan
based on the Act on Promotion of Women’s Participation and
[Rules and Environment Development] Develop rules and work environments that can leverage
the capabilities of a diverse group of people
System for New Business Ideas
In fiscal 2019, the MOL Group introduced a system for propos-
“challenge” set forth in MOL CHARTS and matches our needs
ing new business ideas, which encourages employees to
to create new businesses outside the realm of marine trans-
develop their own careers and take on new challenges.
port. In fiscal 2019, eight proposals were submitted, and two of
Applicants present their ideas for new businesses and services,
these have been launched (see the Special Feature on page 32).
regardless of their current duties, to officers in charge of
In fiscal 2020, 11 proposals were received, of which five were
closely related business divisions. If the business idea is
approved and are now being developed.
approved, resources are allocated so they can proceed toward
the business launch. This system reflects the spirit of
Use of Project Teams
In fiscal 2018, MOL introduced the project team system for the
businesses, promote environmental measures and ship opera-
purpose of effectively solving Companywide issues. The aim
tional efficiency, increase productivity, and so forth. The
is to bring together the knowledge and resources of diverse
achievements included making mega-trend forecasts of a “with
employees from across existing organizations. Members of
COVID-19” and “post-COVID-19” world from a macro perspec-
teams span across not only divisions at the Head Office but also
tive, and Companywide corporate business rationalization. We
across Group companies. In fiscal 2020, 16 project teams
will continue to accelerate the rollout of new initiatives by
related to Rolling Plan 2020 were nimbly formed to develop new
flexibly forming various project teams.
Promoting Work-Style Reforms to Accelerate Improvements in Organizational Strength
The MOL Group is undertaking work-style reforms to increase
fiscal 2020. In fiscal 2021, we plan to implement and pursue
the productivity and fulfillment of employees, and to spur inno-
new work styles in each division by combining and leveraging
vative ideas and concepts accordingly. Led by the Work- Style
the achievements in the past. We will quantitatively evaluate
Reforms Committee headed by the CEO, we focused on
the implemented initiatives with KPIs, and share best practices
corporate culture reforms in fiscal 2017, introduction of a
from among all the ideas for new work styles in each division,
new personnel system in fiscal 2018, opening of a pilot office
with the intention of further advancing work-style reforms.
in fiscal 2019, and establishment of a teleworking system in
Please visit our website for details on our measures related to work-style reforms.
https://mol.disclosure.site/en/themes/117
Initiatives in Fiscal 2021
Personnel System
Reforms
• Review of personnel system introduced in fiscal 2018
• Examination of hybrid work systems that effectively combine office work and telework
Workplace Reforms
Improvement of
Productivity
Corporate Culture
Reforms
• Redefine roles needed in offices with new work styles
• Consider Companywide rollout of pilot offices with unassigned seating that were trialed in some departments in fiscal 2019
• Set KPIs to evaluate productivity
• Enhance productivity with ICT tools and robotic process automation (RPA)
• Strengthen internal communications
• In-house education on work-style reforms
Health Management as Foundation for Everything: Maintaining and Improving Mental and
Physical Health of Employees
MOL has formulated the Declaration on Health and Productivity
Ministry of Economy, Trade and Industry. Moreover, for three
Management and the Declaration of Harassment Prevention
consecutive years, MOL has been selected by Nippon Kenko Kaigi
based on the recognition that the foundations of our corporate
as a Certified Health and Productivity Management Outstanding
activities and what underpins our sustained growth are the safety
Organization (“White 500”) in the large corporation category.
as well as mental and physical health of employees, in addition to
the creation of work environments where all employees can work
without worry. While instilling and spreading awareness of these
declarations across the Group, the MOL Group endeavors in
unison to provide work environments where each and every
employee is motivated to engage in their work duties with a
healthy mind and body.
In recognition of these efforts, MOL was newly selected as a
Health & Productivity Stock by the Tokyo Stock Exchange and the
Please visit our website for details on our measures related to
health management.
https://mol.disclosure.site/en/themes/118
Declaration on Health and Productivity Management (formulated in April 2021)
The Mitsui O.S.K. Lines Group positions the promotion of every employee’s health as an important management issue for realizing
the Group Vision under the Group Corporate Mission. Toward this end, we will implement the following initiatives.
Empower employees in promoting their physical and mental health.
Forge ahead to create a workplace environment where employees work with peace of mind and a sense of unity, as they contribute to our
corporate culture.
Also, provide thorough support, specifically to seafarers, who work under a unique environment at sea, in promoting their physical and
mental health, and develop an environment where all seafarers enjoy robust health and put their families’ minds at ease.
Declaration of Harassment Prevention (formulated in December 2020)
The Mitsui O.S.K. Lines Group will take the following measures to promote the creation of healthy and dynamic workplaces free from
harassment.
We will foster an organizational culture in which each and every employee on land and at sea will respect each other regardless of position
and will be able to freely and energetically demonstrate diverse individuality, values, and viewpoints.
Employees and the Company will work together to build an organizational culture that enhances knowledge and awareness of harassment
prevention and deters or stops any form of harassment.
We shall establish a system in which anyone can feel safe about reporting harassment issues, and in the event of harassment, we shall take
fair and appropriate measures in a resolute manner and establish an organizational structure to prevent recurrence.
54
55
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021
A Message from the Chairman
Business management is about continuity.
How best to pass on business management to
the next generation was always on my mind.
and looking over the state of MOL Group, I determined that now
services,” which I emphasized in the years after taking office,
because in advancing and giving shape to transformation, the
was the best time to pass the baton to a new CEO.
When I became CEO in 2015, the marine transport industry
was facing long-lasting difficulties due to an oversupply of
have borne fruit and established a common understanding
ability to deliver coherent messages that show the way forward
throughout the Company. In itself, this progress may be some-
is extremely important. At meetings of the Board of Directors,
thing we should evaluate positively. But paradoxically, once we
Mr. Hashimoto has always been able to provide explicit and
“The selection of a successor is a CEO’s most important task.”
vessels and sluggish market conditions. The MOL Group was
become habituated to such phrases, they lose their potency as
strategic explanations of the proposed investments under his
I often hear this type of statement in discussions on corporate
also suffering from a prolonged slump in its performance. In
drivers of change.
management. In addition, he has a wealth of global experience
management. When I became CEO, I saw succession as one
response, we used “No. 1 competitiveness in respective areas”
My concern about habituation was further reinforced in fiscal
and is thoroughly familiar with the LNG carrier and offshore
of my most important management tasks, and from that time
as a guiding principle and tackled three overall reforms, which
2020. On the whole, our organization began the fiscal year with
businesses, which are becoming core businesses. He also has a
began considering possible successors. As I wrote in the
were focused on our business portfolio, business model, and
a considerable sense of urgency due to the spread of COVID-19.
track record of building close relationships with companies that
annual report at the time of my appointment, business man-
business fields. As part of these efforts, we undertook major
By the third quarter, though, the prospect of achieving favorable
we did not have contact with before, such as PAO NOVATEK of
agement is about continuity. During their respective terms,
structural reforms of the dry bulk business and integrated the
business results had come into view thanks to the structural
Russia and Karpower International B.V. of Turkey, and bringing
each CEO gives their all to advance the Company closer to the
containership business. Finally, in fiscal 2019, all business
reforms of businesses and the accumulation of highly stable
negotiations with them to a successful conclusion. Based on
goal. In a way, the process is like a long-distance relay race.
segments posted ordinary profit. Moreover, we are establishing
profits we had achieved up to that point coupled with good
these attributes, I am confident that our new CEO can clearly
Mindful that my role was also to pass on the baton to a succes-
businesses that promise to become new earnings mainstays,
market conditions for Ocean Network Express Pte. Ltd. (ONE)
communicate the course MOL should follow and lead
sor, I mulled over the optimal timing and to whom I should
such as offshore businesses. For this reason, I believe we are
and the tanker business. While we were of course pleased with
the entire Group in this period of change.
entrust the position. In my view, the best time to hand over to a
on track to resolve the pressing issues that we faced at the time
successor was not when I myself had reached a particular goal
of my appointment as CEO.
but rather when our measures had prepared a foundation for
On the other hand, as my tenure continued, I developed a
the business management of the next CEO and reached a stage
sense of crisis over the emergence of “habituation” throughout
from which transformation and advancement to a higher stage
the organization. For example, such new concepts and goals as
could be pursued. After taking such considerations into account
“No. 1 competitiveness in respective areas” and “stress-free
Junichiro Ikeda
Representative Director
Chairman Executive Officer
I am confident that our new CEO,
Takeshi Hashimoto, will provide
MOL with strong leadership in this
period of transformation.
the favorable performance itself, I sensed that our employees
were beginning to relax because they thought that we might be
able to just go on as we were and perform well. However, to
sustain long-term growth we must still break away from the
business model that is solely reliant on traditional marine
transport. Looking at the MOL Group from a medium- to long-
term viewpoint, if anything the Group’s critical period still lies
ahead. Therefore, in the present situation we cannot afford to
slacken the pace of transformation. With this in mind, I con-
cluded that the most effective way to get the message across
and accelerate the evolution of our business model was a
change of CEO.
Given his unshakable commitment to
transformation and excellent ability in presenting
clear-cut views on the world economy and politics
and showing where the Company should be headed
based on these views, I have high expectations of
our new CEO, Takeshi Hashimoto.
In my new role, I will press ahead with initiatives
aimed at increasing the MOL Group’s corporate
value even further.
In conclusion, I would like to talk about my future role and
aspirations. As of fiscal 2021, I have assumed the position of
chairman executive officer, a position that was vacant. In
reinstituting this position, many questions and recommenda-
tions were received from outside directors to the effect that the
position’s roles and status should be clarified. Normally, within
Japanese companies, it is rare for a someone who has experi-
ence as a CEO to remain in an executive position. Nonetheless,
the position of chairman executive officer has been reinstituted
because the valuable experience and insights that only a
former CEO has can be useful in business execution. However,
I would like to make it clear to all stakeholders that the CEO is
always the highest authority in the execution of business. The
position of chairman executive officer represents a special
assignment given by the CEO. Specifically, in the current fiscal
year I plan to further enhance corporate governance, develop
As I have explained, I considered the selection of a successor to
management personnel, and build an external network.
be one of my most important tasks as the leader of corporate
Already, we have taken swift measures to enhance and rein-
management. After a series of discussions at meetings of the
force corporate governance. In April 2021, we launched the
Nomination Advisory Committee, we formulated a succession
Corporate Governance Council, which hosts frank discussions
plan for the president and CEO in fiscal 2019. We began this
with outside experts when necessary. When we introduced an
process by clarifying and sharing our views on the requirements
executive officer system in the early 2000s, we were proud to be
for the management leader in the Company’s next stage.
a governance pioneer among major Japanese companies. As
Through discussions in the committee, we set out 15 require-
society’s expectations rapidly change and diversify, however,
ments for the new CEO based on two axes, with the first being
I feel that the evolution of our governance has been somewhat
values and mindset and the second being practical ability. Of
lacking in pace in recent years. Although the development of
these requirements, Mr. Hashimoto was most highly evaluated
governance is an endless task, we intend to use the establish-
for having an unshakable commitment to transformation.
ment of the Corporate Governance Council as an opportunity to
In addition, we have high expectations of Mr. Hashimoto’s ability
comprehensively review and improve our governance system.
to present clear-cut views of the world and show where the
In my new role, I will press ahead with initiatives aimed at
Company should be headed based on these views. This is
increasing the MOL Group’s corporate value even further.
56 MITSUI O.S.K. LINES
57
For Our Sustainable GrowthMOL REPORT 2021
Messages from the Chairs of the Advisory Committees
Nomination Advisory Committee
Always keeping in mind the enhancement
of corporate value and ESG value, the
Nomination Advisory Committee engages
in constructive discussions.
As society continues to change constantly, succession plan of
the CEO and selection of directors in order to enhance corpo-
rate value over the long term is extremely important for man-
agement. From this perspective, the role of the Nomination
Advisory Committee is becoming more and more important
next generation of directors from a wider pool of talent. When
our standpoint is outside a company, there can be unavoidable
difficulties in obtaining sufficient internal information. However,
I believe that minimizing information asymmetry will make the
committee more effective from a long-term perspective.
Careful consideration was devoted to formulating
a succession plan and analyzing the recent
appointment of a new CEO.
Takeshi Hashimoto, the new CEO, was one of the names on
the list of potential successors. A major deciding factor was the
We must continue to consider the management
organization from a backcasting perspective.
leadership that he has displayed in the LNG carrier and off-
shore businesses, which are priority business fields for MOL
In fiscal 2021, the Remuneration Advisory Committee revised
strategically and becoming core business fields. Mr. Hashimoto
the director remuneration plan by increasing long-term incen-
earned high marks for his expertise in the energy sector, the
tives. The highest priority is constructing a management struc-
extensive international network that he has cultivated, and the
ture that is consistent with the enhancement of corporate
management skills he has shown in especially the realization
value, ESG value, and other types of social value. In light of this
of a decarbonized society.
backcasting perspective, the Company’s corporate philosophy,
In addition, given the volatility of the marine transport indus-
and the profile MOL wants to have 10 years later, we must
and this committee is required to function more effectively.
In explaining the process of appointing the new CEO last year,
try’s business environment, leaders must be able to detect
always keep in mind the kinds of skills, values, and back-
The Nomination Advisory Committee of MOL was established
I should begin by describing the formulation of a succession
changes in conditions by gathering information and seeing the
grounds that directors should have to achieve this profile.
in fiscal 2015. While ensuring objectivity, transparency, and
plan. A succession plan is a framework that is essential for
big picture and adopt flexible stances in response to changing
In clarifying the required skill sets, we need to discuss in
credibility, a majority of directors are outside directors and the
a company’s sustained growth. MOL formulated a succession
circumstances. The blog that the CEO has been posting on the
greater detail the skills matrix that the Company began dis-
chair is also an outside director, who is taking turns every year,
plan in fiscal 2020 and disclosed in its corporate governance
intranet since April presents just such a big picture as he stays
closing in fiscal 2020. This clarification will allow us to select
the committee engages in lively and constructive discussions.
report. It was the result of our careful consideration over more
abreast of many different fields and developments, including
candidates and foster the next generation of senior executives
As an outside director and member of the committee, I am
than a year. In particular, we discussed the requirements of the
international politics, macroeconomics, the energy industry, the
based on the skills that are needed to solve management
always keeping in mind the need to share the point of view of
CEO from a wide range of perspectives. Ultimately, we decided
future of decarbonization, and capital market trends. I believe
issues. In addition, given that MOL is already engaged in busi-
the shareholders, while considering the sustained enhance-
that “the results expected from a CEO” should be our starting
that he will lead the entire Group by mulling and clearly present-
ness activities globally and employs personnel from many
ment of corporate value as well as ESG factors and other
point. For this requirement, we made eight requirements
ing a strategic vision based on this wide perspective.
different countries, ensuring diversity in terms of the nationali-
aspects of social value. In fiscal 2019, outside Audit &
related to nature and mindset and seven requirements related
Supervisory Board members were able to be nonvoting partici-
to practical competency. We have also established a framework
pants in the advisory committees, which has enabled discus-
in which the list of potential successors is updated annually in
sions from a greater diversity of perspectives. In recent years,
light of these requirements as well as consideration of the
we have been thinking about how nominations should be made
solicitation of external candidates. Such processes are impor-
I expect the chairman executive officer to
utilize the experience and knowledge that the Board
needs for the execution of business.
ties in the Board of Directors will be essential. From the view-
points of the senior management team’s composition and the
international development of businesses, securing non-
Japanese senior executives is important.
The Nomination Advisory Committee will also need to flex-
within a larger framework, such as what kind of presence the
tant to ensure that all stakeholders are satisfied with MOL’s
In connection with the change of CEO, the Nomination Advisory
ibly adapt its approaches in accordance with the profile MOL is
Company should have in the international community, including
outcome. Moreover, our recent efforts clarified the criteria and
Committee also discussed the role of the chairman executive
targeting 10 years from now. In this sense, and with the change
initiatives to address climate change. As a result, our discus-
procedures for not only the selection but dismissal of CEOs.
officer. Although some concerns were raised about the struc-
of CEO, I have high expectations for the discussions that the
sions have become more strategic in nature.
In this way, the formulation of the succession plan was
ture of management becoming multilayered and his holding of
Nomination Advisory Committee will be able to hold under our
Nomination Advisory Committee members have more
a good opportunity for the Nomination Advisory Committee
supervisory and executive positions, in the end the committee
new Board and hope that members will become even more
opportunities to meet face-to-face with the executive officers,
to take a more active role in the nomination.
decided on a governance system that clearly establishes the
actively involved in evolving the committee. The committee will
which is helping us to select and develop candidates for the
CEO’s supreme authority over business execution and gave
continue to ensure accountability to MOL’s stakeholders while
more weight to maximizing corporate value by utilizing the
always emphasizing objectivity, transparency, and credibility.
Etsuko Katsu
Outside Director
We must continue optimizing
the effectiveness of
the Board of Directors
by backcasting from
the desirable future of MOL.
insights of someone with experience in serving as CEO.
Further, the chairman executive officer, Junichiro Ikeda, has
a global network of contacts in economic organizations and
industries, and we are confident that these will bring great
benefits to MOL. We also believe that the senior management
team will be enhanced by an experienced former CEO backing
up a current CEO who is responsible for business execution.
The effectiveness of this management framework will be care-
fully and constantly monitored by the Board of Directors and
the Nomination Advisory Committee, and I believe that once
concrete results are produced under the framework, it will live
up to every stakeholder’s expectations.
Overview of the Nomination Advisory Committee (Fiscal 2020)
Chair of committee:
Etsuko Katsu (outside director)
Committee members:
Junichiro Ikeda
Hideto Fujii (outside director)
Masaru Onishi (outside director)
Percentage of
outside directors: 75%
Number of meetings: 5
Main Agenda Items in Fiscal 2020
• Development of management personnel
• Selection of the next CEO based on the succession plan for the
president and CEO
• Election of directors and executive officers for fiscal 2021 and
other matters
58
59
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021
Messages from the Chairs of the Advisory Committees
Remuneration Advisory Committee
The role of the Remuneration Advisory Committee’s
chair is to encourage fruitful discussions and
thereby help sustain the enhancement of the
MOL Group’s corporate value.
In the recent revision of the director
remuneration plan, we designed the system
with a view to resolving four issues.
With respect to its governance system, MOL is a company with
an Audit & Supervisory Board, and the Board of Directors has
both executive and supervisory functions. Although investors
sometimes point out that execution and supervision should be
separated, I believe the governance system functions effec-
tively because it brings together and enables discussions
among those with supervisory positions and viewpoints, such
as outside directors and Audit & Supervisory Board members,
and those who have executive positions and viewpoints and
are well-versed in the businesses. In addition, MOL has
enhanced the transparency and objectivity of governance
by establishing the Remuneration Advisory Committee as a
voluntary body for deliberation and examination of director
remuneration plan that is chaired by an outside director and
comprises a majority of outside directors. In fiscal 2020,
I chaired the Remuneration Advisory Committee. I believe that
the chair’s role is to maximize shareholder value as a repre-
sentative appointed by shareholders, take into consideration
all other stakeholders, and realize sustainable enhancement
of the MOL Group’s corporate value as well as to encourage
fruitful discussions that support these efforts.
Revision of the director remuneration plan was the biggest
initiative for the Remuneration Advisory Committee in fiscal
2020. Remuneration systems are closely linked to corporate
culture, and implanting a system that is inconsistent with a
company’s values and organization causes dysfunction. For
example, the ideal form for a remuneration system changes
depending on whether a company emphasizes working as a
team or as an individual. While considering the current corpo-
rate culture, it should be considered how to inspire the senior
management team so that it could achieve the corporate vision
and design a system that will encourage transformation.
In designing a new director remuneration plan, we have
focused on resolving four issues that were not being fully
addressed by the current remuneration plan.
First, we sought to incorporate into the remuneration plan
incentives that are consistent with the characteristics of MOL’s
business. In marine transport, corporate performance is
extremely susceptible to the market conditions at any given
time. Even with the best efforts, controlling fluctuations in
near-term corporate performance is extremely difficult. On
the other hand, the nature of the business is such that seeds
planted now influence the performance trends and single-year
business results of the future. In light of the aforementioned
characteristics, we have established long-term target
contribution-based remuneration (stock remuneration) that
accounts for the same percentage of total remuneration as
single fiscal year performance-based remuneration (cash
remuneration).
Masaru Onishi
Outside Director
To support the realization of
MOL’s vision,
we must change the
remuneration plan as required.
The next issue is related to the stock option system itself.
The basic purpose of the stock option system was to foster
a common interest between directors and shareholders.
However, since the exercising of rights was up to the indi-
The optimal form for a remuneration plan changes over
time. We will continue to engage in active discussions
with a view to evolving governance.
vidual, the system did not always achieve its purpose. As a
Fiscal 2020 was a year in which we focused on the establish-
result, the number of shares of the Company held by directors
ment of a new director remuneration plan. Going forward, the
did not increase as much as expected. To address this issue
primary task of the Remuneration Advisory Committee will
and create a system that increases the sharing of values
be to verify whether the new plan is actually functioning as
between directors and shareholders, we have introduced
intended. If these verification activities reveal areas that are
performance-linked stock remuneration in which long-term
not functioning properly, naturally we will need to make nec-
target contribution-based remuneration is paid in the form of
essary adjustments. Additionally, scope remains for further
shares themselves.
development of the system in terms of a multi-stakeholder
In rectifying the third issue, we revised single fiscal year
perspective. For example, themes such as the environment,
performance-based remuneration. Although MOL had been
the SDGs, and employee engagement have yet to be incorpo-
using performance-based bonuses, there was room for discre-
rated into indicators.
tion in the management of these bonuses. For example, the
While avoiding excessive complexity that could impair the
Company’s performance in fiscal 2019 was good enough to
functionality of the system, we will continue deliberations on
warrant the payment of bonuses in fiscal 2020 that surpassed
maximizing the use of indicators in evaluation criteria and
those paid in the previous fiscal year. However, as the COVID-19
disclosing such indicators as ways of increasing transparency
pandemic made the performance outlook uncertain at the
and credibility. As for financial indicators, ROE has been
beginning of fiscal 2020, it was decided to drastically curtail the
chosen as an evaluation benchmark in the remuneration plan
bonuses paid to directors in the same fiscal year. While made in
with the aim of aligning with the management plan. A time
light of the severe business environment at the time, this deci-
may come, however, when we need to discuss whether this
sion was not in line with the purpose of the system, which was
indicator is appropriate.
to evaluate based on results. In formulating the new single
The target profiles of companies change with the times, and
fiscal year performance-based remuneration, we made the
a remuneration plan should evolve accordingly to promote and
evaluation criteria as quantitative as possible to increase
support the realization of these profiles. We have revised the
transparency and realize bonuses that are acceptable to both
director remuneration plan on this occasion, but I believe the
directors and shareholders.
ideas that form the basis of the plan are applicable to the
Last, the fourth improvement introduced is the incorporation
design of remuneration plans for the entire MOL Group, includ-
of a multi-stakeholder perspective. Specifically, we have
ing employees. We will continue active discussions for the
included safe operation as an evaluation indicator in single
further evolution of governance to support sustained enhance-
fiscal year performance-based remuneration and Total
ment of MOL’s corporate value.
Shareholder Return (TSR) as an evaluation indicator in long-
term target contribution-based remuneration. I think incorpo-
rating safe operation as an evaluation indicator not only for the
executive in charge of safety but for all directors is particularly
noteworthy. Even without dwelling on the grounding and oil
spill accident off the coast of Mauritius in 2020, the paramount
importance of safe operation in marine transport is evident,
and this importance should of course be reflected in remunera-
tion. I hope that this change will raise the safety awareness of
the entire Group even further.
Overview of the Remuneration Advisory Committee (Fiscal 2020)
Chair of committee:
Masaru Onishi (outside director)
Committee members:
Junichiro Ikeda
Hideto Fujii (outside director)
Etsuko Katsu (outside director)
Percentage of
outside directors: 75%
Number of meetings: 8
Main Agenda Items in Fiscal 2020
• Fiscal 2019 bonuses for directors and fiscal 2020
remuneration for directors
• Revision of the director remuneration plan
• Policy for decisions on matters such as remuneration of individual
directors pursuant with an amendment to the Companies Act and
other matters
60
61
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021
Board of Directors, Audit & Supervisory Board Members, and Executive Officers
(As of June 22, 2021)
Nomination Advisory Committee
Remuneration Advisory Committee
Junichiro Ikeda
Representative Director
Born 1956
Number of the Company’s shares held: 23,700 shares
Attendance at the Board of Directors’ meetings:
14 of 14 (Attendance rate: 100%)
Number of years as Director: 8 years
Apr. 1979 Joined Mitsui O.S.K. Lines, Ltd.
Jun. 2004 General Manager of Human Resources Division
Jun. 2007 General Manager of Liner Division
Jun. 2008 Executive Officer
Jun. 2010 Managing Executive Officer
Jun. 2013 Director, Senior Managing Executive Officer
Jun. 2015 Representative Director, President,
Chief Executive Officer
Apr. 2021 Representative Director, Chairman Executive Officer
(to present)
Takeshi Hashimoto
Representative Director
Born 1957
Number of the Company’s shares held: 10,700 shares
Attendance at the Board of Directors’ meetings:
14 of 14 (Attendance rate: 100%)
Number of years as Director: 6 years
Apr. 1982 Joined Mitsui O.S.K. Lines, Ltd.
Jun. 2008 General Manager of LNG Carrier Division
Jun. 2009 Executive Officer, General Manager of
LNG Carrier Division
Jun. 2011 Executive Officer
Jun. 2012 Managing Executive Officer
Jun. 2015 Director, Managing Executive Officer
Apr. 2016 Director, Senior Managing Executive Officer
Apr. 2019 Representative Director,
Executive Vice President Executive Officer
Apr. 2021 Representative Director, President,
Chief Executive Officer (to present)
Akihiko Ono
Representative Director
Born 1959
Number of the Company’s shares held: 8,400 shares
Attendance at the Board of Directors’ meetings:
14 of 14 (Attendance rate: 100%)
Number of years as Director: 3 years
Apr. 1983 Joined Mitsui O.S.K. Lines, Ltd.
Jun. 2010 General Manager of Corporate Planning Division
Jun. 2011 Executive Officer, General Manager of
Corporate Planning Division
Jun. 2015 Managing Executive Officer
Apr. 2017 Senior Managing Executive Officer
Jun. 2018 Director, Senior Managing Executive Officer
Apr. 2020 Representative Director,
Executive Vice President Executive Officer (to present)
Hideto Fujii
Outside Director (Independent Officer)
Number of the Company’s shares held: 2,000 shares
Attendance at the Board of Directors’ meetings:
14 of 14 (Attendance rate: 100%)
Number of years as Outside Director: 5 years
Etsuko Katsu
Outside Director (Independent Officer)
Number of the Company’s shares held: 2,000 shares
Attendance at the Board of Directors’ meetings:
14 of 14 (Attendance rate: 100%)
Number of years as Outside Director: 5 years
Masaru Onishi
Outside Director (Independent Officer)
Number of the Company’s shares held: 800 shares
Attendance at the Board of Directors’ meetings:
14 of 14 (Attendance rate: 100%)
Number of years as Outside Director: 2 years
Jun. 2015 Adviser, Sumitomo Corporation (to present)
Jun. 2016 Outside Director, Mitsui O.S.K. Lines, Ltd. (to present)
Apr. 2003 Professor, School of Political Science and
Apr. 2013 Trustee, KEIZAI DOYUKAI (Japan Association of
Economics, Meiji University (to present)
Jun. 2016 Outside Director, Mitsui O.S.K. Lines, Ltd.
(to present)
Nov. 2016 Administrative Board Member,
International Association of Universities (IAU)
(to present)
Corporate Executives) (to present)
Jun. 2015 Trustee, International University of Japan (to present)
Jul. 2018 Visiting Professor, Toyo University (to present)
Jun. 2019 Outside Director, TEIJIN LIMITED (to present)
Jun. 2019 Outside Director, Mitsui O.S.K. Lines, Ltd.
(to present)
Apr. 2018 Chairman of Fund Management Advisory Committee,
Feb. 2021 Senior Advisor, Alton Aviation Consultancy Japan
The Japan Foundation (to present)
Co.,Ltd. (to present)
Mar. 2019 Outside Director (Audit and Supervisory Committee
Member), Dentsu Group Inc. (to present)
Jun. 2021 Outside Director, Kadoya Sesame Mills inc. (to present)
Toshiaki Tanaka
Director
Born 1960
Number of the Company’s shares held: 4,600 shares
Attendance at the Board of Directors’ meetings:
10 of 10 (Attendance rate: 100%)
Number of years as Director: 1 year
Kenta Matsuzaka
Director
Yutaka Hinooka
Director
Born 1961
Number of the Company’s shares held: 2,300 shares
Attendance at the Board of Directors’ meetings: –
Number of years as Director: –
Born 1961
Number of the Company’s shares held: 4,000 shares
Attendance at the Board of Directors’ meetings: –
Number of years as Director: –
Apr. 1984 Joined Mitsui O.S.K. Lines, Ltd.
Jun. 2011 General Manager of Iron Ore & Coal Carrier Division
Jun. 2014 Executive Officer, General Manager of
Apr. 1984 Joined Mitsui O.S.K. Lines, Ltd.
Jun. 2014 General Manager of LNG Carrier Division
Jun. 2015 Executive Officer, General Manager of
Iron Ore & Coal Carrier Division
Jun. 2015 Executive Officer
Apr. 2017 Managing Executive Officer
Jun. 2020 Director, Managing Executive Officer
Apr. 2021 Director, Senior Managing Executive Officer
(to present)
LNG Carrier Division
Apr. 2017 Executive Officer
Apr. 2018 Managing Executive Officer
Apr. 2021 Senior Managing Executive Officer
Jun. 2021 Director, Senior Managing Executive Officer
(to present)
Apr. 1985 Joined Mitsui O.S.K. Lines, Ltd.
Jun. 2012 General Manager of Liner Division
Apr. 2016 Executive Officer, General Manager of
Liner Division
Apr. 2018 Executive Officer
Apr. 2019 Managing Executive Officer
Jun. 2021 Director, Managing Executive Officer (to present)
Toshiaki Takeda
Audit & Supervisory Board Member
Masanori Kato
Audit & Supervisory Board Member
Born 1964
Attendance at the Board of Directors’ meetings:
14 of 14 (Attendance rate: 100%)
Attendance at the Audit & Supervisory Board
Members’ meetings: 11 of 11
(Attendance rate: 100%)
Number of years as Outside Director: 2 years
Apr. 1986 Joined Mitsui O.S.K. Lines, Ltd.
Jun. 2015 General Manager of
General Affairs Division
Apr. 2018 General Manager of
Secretaries & General Affairs Division
Jun. 2019 Audit & Supervisory Board Member,
Mitsui O.S.K. Lines, Ltd. (to present)
Born 1961
Attendance at the Board of Directors’ meetings: –
Attendance at the Audit & Supervisory Board
Members’ meetings: –
Number of years as Outside Director: –
Nov. 1985 Joined Mitsui O.S.K. Lines, Ltd.
Jun. 2013 General Manager of
Marine Safety Division
Apr. 2016 Executive Officer
Apr. 2017 Managing Executive Officer
Apr. 2021 Adviser
Jun. 2021 Audit & Supervisory Board Member,
Mitsui O.S.K. Lines, Ltd. (to present)
Hideki Yamashita
Outside Audit & Supervisory Board Member
(Independent Officer)
Junko Imura
Outside Audit & Supervisory Board Member
(Independent Officer)
Attendance at the Board of Directors’ meetings:
14 of 14 (Attendance rate: 100%)
Attendance at the Audit & Supervisory Board
Members’ meetings: 11 of 11
(Attendance rate: 100%)
Number of years as Outside Director: 7 years
Attendance at the Board of Directors’ meetings:
13 of 14 (Attendance rate: 93%)
Attendance at the Audit & Supervisory Board
Members’ meetings: 11 of 11
(Attendance rate: 100%)
Number of years as Outside Director: 2 years
Apr. 1982 Registered as an attorney at law
Apr. 1985 Established YAMASHITA HIDEKI LAW
OFFICE (now YAMASHITA & TOYAMA
LAW OFFICE) (to present)
Aug. 1994 Registered as a certified
public accountant
Sep. 2015 Visiting Professor, Tama Graduate
School of Business (to present)
Mar. 2012 Outside Corporate Auditor, I-cell
Jul. 2018 Established Imura Accounting Office
Networks Corp. (to present)
Jun. 2014 Outside Audit & Supervisory Board
Member, Mitsui O.S.K. Lines, Ltd.
(to present)
(to present)
Jun. 2019 Outside Audit & Supervisory Board
Member, Mitsui O.S.K. Lines, Ltd.
(to present)
Dec. 2019 Outside Audit & Supervisory Board
Member, T. HASEGAWA CO., LTD.
(to present)
Jun. 2020 Outside Director, Audit and
Supervisory Committee Member,
Mitsubishi UFJ Trust and
Banking Corporation
(to present)
* Only important concurrent positions and certification registration years have been included
in the resumes of outside directors and outside Audit & Supervisory Board members.
62
63
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021
Board of Directors, Audit & Supervisory Board Members, and Executive Officers
Corporate Governance
Executive Officers
Junichiro Ikeda
Chairman Executive Officer
Takeshi Hashimoto
President, Chief Executive Officer
Akihiko Ono
Executive Vice President Executive Officer
Assistant to President, Chief Safety Officer Chief
Compliance Officer, Chief Information
Officer, Deputy Director General of Safety
Operations Headquarters, Deputy Director
General of Technology Innovation Unit,
Responsible for Refreshing organization,
Enhancing group management, Recovery of
environmental damage from the WAKASHIO
incident and contribution to the
Mauritian community,
Secretaries & General Affairs Division,
MOL Information Systems, Ltd.
Toshiaki Tanaka
Senior Managing Executive Officer
Chief Environment and Sustainability Officer,
Director General of Dry Bulk Business Unit,
Responsible for Environment & Sustainability
Strategy Division, Supervisor for
Corporate Marketing Division
Kenta Matsuzaka
Senior Managing Executive Officer
Director General of Energy and Offshore
Business Unit, Responsible for
Europe and Africa Area
Masato Koike
Managing Executive Officer
Deputy Director General of Energy and Offshore
Business Unit, Responsible for
Bunker Business Division, Tanker Division
Yutaka Hinooka
Managing Executive Officer
Chief Communication Officer, Responsible for
Corporate Planning Division, Corporate
Communication Division, Accounting Division
Toshinobu Shinoda
Managing Executive Officer
Deputy Director General of Dry Bulk Business
Unit, Responsible for Work Efficiency
Improvement, Dry Bulk Business Planning &
Co-ordination Division, Iron Ore & Coal Carrier
Division
Hirofumi Kuwata
Managing Executive Officer
Deputy Director General of Dry Bulk Business
Unit, Deputy Director General of Energy and
Offshore Business Unit, Responsible for
Power Solution & Carbon Project Division,
Wind Power Energy Business Division,
Secondarily Responsible for Ferry and
Associated Business Division
Kyoya Nitta
Executive Officer
Deputy Director General of Energy and Offshore
Business Unit, Responsible for Energy Business
Strategy Division
Akio Mitsuta
Executive Officer
Deputy Director General of Energy and Offshore
Business Unit, Responsible for Tanker Division
(Chemical Tanker Business), Managing
Director/Chief Executive Officer of
MOL Chemical Tankers Pte. Ltd.
Ryoji Mitani
Executive Officer
General Manager of Accounting Division
Mitsuhisa Tanimoto
Executive Officer
Assistant to Chief Safety Officer, Director
General of Safety Operations Headquarters,
Responsible for Human Resources Division,
Marine Safety Division,
Secondarily Responsible for
Offshore Technical Division,
Smart Shipping Division
Makoto Yamaguchi
Executive Officer
Chief Technical Officer, Director General of
Technology Innovation Unit, Responsible for
Technical Division, Offshore Technical Division,
Smart Shipping Division, Secondarily
Responsible for MOL Information Systems, Ltd.
Hisashi Umemura
Executive Officer
Chief Financial Officer, Responsible for
Corporate Communication Division (IR),
Finance Division
Kazuya Hamazaki
Executive Officer
Deputy Director General of Energy and Offshore
Business Unit, Responsible for LNG Carrier
Division, Offshore Gas Project Division,
LNG Marine Technical & Ship Management
Strategy Division
Nobuo Shiotsu
Managing Executive Officer
Responsible for Asia, the Middle East and
Oceania Area, Managing Director of MOL (Asia
Oceania) Pte. Ltd., Managing Director of MOL
Treasury Management Pte. Ltd.
Hiroyuki Nakano
Managing Executive Officer
Deputy Director General of Energy and Offshore
Business Unit, Responsible for Offshore Project
Division, Secondarily Responsible for Offshore
Technical Division
Hirotoshi Ushioku
Managing Executive Officer
Director General of Product Transport Business
Unit, Responsible for The Americas Area,
Car Carrier Division
Kazuhiko Kikuchi
Managing Executive Officer
Deputy Director General of Dry Bulk Business
Unit, President of MOL Drybulk Ltd.
Junko Moro
Managing Executive Officer
Responsible for Diversity Promotion,
Corporate Communication Division (ER),
Human Resources Division
Mitsuru Endo
Executive Officer
Deputy Director General of Safety Operations
Headquarters, Responsible for Marine
Technical Management Division, LNG Marine
Technical & Ship Management Strategy
Division, Secondarily Responsible for
Marine Safety Division, Smart Shipping Division
Osamu Sakurada
Executive Officer
Deputy Director General of Product Transport
Business Unit, Responsible for Regional
Strategy in Japan, Port Projects & Logistics
Business Division, Ferry and
Associated Business Division
Ryusuke Kimura
Executive Officer
Chief Digital Officer, Assistant to Chief
Information Officer, Deputy Director General of
Technology Innovation Unit, Deputy Director
General of Product Transport Business Unit,
Responsible for Corporate Marketing Division,
Liner Business Management Division
Corporate Governance That Supports Sustainable Growth and Greater Corporate Value
Around the year 2000, MOL appointed outside directors and
sustainable growth and greater corporate value through swift
introduced an executive officer system, creating an advanced
and decisive decision-making based on appropriate risk con-
and highly transparent corporate governance structure for a
trol, while ensuring transparency and fairness in management
Japanese company at the time. Due to the constantly changing
and incorporating the opinions of diverse stakeholders. In
business conditions and risk profiles in the marine transport
recent years, the level of governance demanded of listed corpo-
industry, management needs to be able to effectively allocate
rations by society has only increased, and we will continue to
business resources in a sophisticated manner while striking a
focus efforts on improving our corporate governance in order
delicate balance between offensive and defensive strategies
to remain a company chosen by our stakeholders.
and accurately grasping business conditions and risks. We
believe corporate governance should aim to achieve
Governance Summary (As of June 30, 2021)
Governance System
Total Directors
Total Audit & Supervisory
Board Members
Independent Officers
(Directors and Audit & Supervisory
Board Members)
Company with an Audit &
Supervisory Board
9
Including outside directors (ratio)
3 (33.3%)
Including female directors (ratio)
1 (11.1%)
4
Including outside members (ratio)
2 (50%)
5
Term of Directors
Number of
Board Meetings Held
Attendance Rate of Outside
Directors for Board Meetings
1 year
14
(Fiscal 2020)
100%
(Fiscal 2020)
Voluntary Committees
President and
CEO Succession Plan
Performance-Based
Compensation
Retirement Benefit System
Yes
(Nomination Advisory
Committee and Remuneration
Advisory Committee)
Yes
Yes
(Cash and stock)
No
Cross-Shareholdings as
Percentage of Net Assets
Anti-Takeover Measures
8.8%
(including unlisted stocks)
(as of March 31, 2021)
No
Past Initiatives to Improve Governance
Achievements in Fiscal 2019
• Formulated succession plan for president and CEO
Achievements Since Fiscal 2020
• Reformed director remuneration plan
• Outside Audit & Supervisory Board members participate
(introduced performance-linked stock compensation)
on Nomination Advisory Committee and
• Updated skills matrix for directors and included in notifications
Remuneration Advisory Committee as an observer
about convocation of General Meeting of Shareholders
• Created skills matrix for directors
• Reduced cross-shareholdings
• Established Corporate Governance Council
• Reduced cross-shareholdings
64
65
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021
Corporate Governance
Corporate Governance Structure
MOL has established a corporate governance system that maximizes shareholder profits through the most appropriate allocation of
management resources, with higher transparency of corporate management.
Corporate Governance Organization (As of June 22, 2021)
Chairman
Male
Female
General Meeting of Shareholders
Elect and appoint / dismiss
Business audit /
Accounting audit
Board of Directors (Total: 9)
Outside directors: 3
Internal directors: 6
Accounting
audit
Elect and appoint /
dismiss
Collaborate
Elect and appoint /
dismiss
Audit & Supervisory Board (Total: 4)
Outside members: 2
Internal members: 2
Audit & Supervisory Board Manager
Accounting Auditors
Report
Elect and
appoint /
supervise
Elect and
appoint /
supervise
Submit basic management
policies and other issues for
discussion
Executive Committee (Total: 9)
CEO
Directors /
Executive officers: 6
Executive
officers: 3
Report
Report
Nomination Advisory
Committee (Total: 5)
Outside directors: 3
Internal directors: 2
Remuneration Advisory
Committee (Total: 5)
Outside directors: 3
Internal directors: 2
Audit plan / Audit Report
Submit to Executive Committee after
preliminary deliberations
Provide direction
on important
business issues
Submit for discussion and/or report on
important business and other issues
Executive Officers (Total: 24)
Directors / Executive officers: 6
Executive officers: 18
Divisions / Branches / Vessels / Group companies
Committees under the Executive Committee
Rolling Plan Special Committee, Investment and Finance Committee,
Environment and Sustainability Committee, Work-Style Reforms Committee,
Operational Safety Committee, Compliance Committee
Submit for discussion and/or
report on important business
and other issues
Instruction
Report
Collaborate
Corporate Audit Division
Business audit / Accounting audit
Report /
advice
Corporate Governance
Council
(Total: 10)
Outside directors: 3
Internal directors: 3
Outside Audit &
Supervisory Board
members: 2
Internal Audit &
Supervisory Board
members: 2
Major Organizations
Name
Board of Directors
Details
As the central decision-making body of the Company, the Board of Directors deliberates and make decisions on the basic
policies and the most important matters for the management of the MOL Group. In addition, the Board of Directors also
conducts the “Deliberation on Corporate Strategy and Vision,” during which the directors exchange opinions freely with outside
directors and outside Audit & Supervisory members on management strategies, the long-term vision, and other subjects
related to overall management. In fiscal 2020, the Deliberation on Corporate Strategy and Vision was held five times for
members of the Board of Directors, and despite each member having an extremely tight schedule, each meeting fully used
up the prescribed 90 minutes (see page 67 for the main topics they discussed).
Audit & Supervisory
Board
The Audit & Supervisory Board draws up audit plans and reports and shares the results of audits. All Audit & Supervisory
Board members attend meetings of the Board of Directors, and full-time members also attend Executive Committee and other
committee meetings to audit the deliberation and decision-making processes. By combining the information held by the
full-time members about the Company and its operations with the high level of specialized expertise of the outside members,
MOL has created a system that ensures the active exercise of authority from an objective standpoint.
Nomination
Advisory Committee
and Remuneration
Advisory Committee
Executive
Committee and
Committees under
the Executive
Committee
Corporate
Governance Council
The Nomination Advisory Committee and the Remuneration Advisory Committee are established as arbitrary organizations
under the Board of Directors. Both committees are chaired by outside directors and are composed of three outside directors,
the Chairman, and the CEO. The Nomination Advisory Committee deliberates on the election, appointment, and dismissal of
directors and executive officers, as well as proposals for the next CEO based on the succession plan. From an objective stand-
point, the Remuneration Advisory Committee deliberates and reports its findings for director remuneration, including incen-
tives for long-term enhancement of corporate value, as well as for the operation of related systems, including the methods
and amount of bonuses.
Within the scope of the basic policy approved by the Board of Directors, MOL transfers a significant amount of authority to
conduct businesses to the Executive Committee. This helps to expedite decision-making on individual matters. Six committees
exist under the Executive Committee to study and deliberate particularly important matters which are brought to the Executive
Committee, as well as cross-divisional propositions.
Due to the difficulties in securing sufficient time for debate at the current Board of Directors, the Corporate Governance
Council was established under the Board of Directors in fiscal 2021 to serve as a forum for facilitating discussion, while
incorporating outside knowledge, with respect to overall issues related to enhancing and strengthening the corporate
governance structure. The council plans to hold more in-depth and objective discussions about related topics by appointing
external experts and have them participate in meetings depending on the agenda.
Main Agenda Items for the Board of Directors’ “Deliberation on Corporate Strategy and Vision” in Fiscal 2020
Month
Agenda
Month
Agenda
July
Business plans of respective sales division and
Companywide investment based on those plans
October
Environment and sustainability promotion structures
December
Direction of next management plan
September
Strategies for offshore business (constituting the next
step beyond transport of fossil fuels)
January
LNG carrier business policy (to be a consistently
exceptional company in the LNG business)
Appointment and Dismissal Procedures of Directors and Audit & Supervisory Board Members
The MOL Group has set up the Nomination Advisory Committee in
order to improve objectivity and transparency in selection proce-
dures for directors and Audit & Supervisory Board members and
also to strengthen accountability. The committee selects the candi-
dates based on its set of standards and submits a report to the
Standards for Appointing Directors
a) Personnel who are able to contribute to enhancement of the
corporate value of the Company based on a wealth of experience
and knowledge
b) Personnel who are able to make management decisions globally
Board of Directors (candidates for Audit & Supervisory Board
from a broad-ranged perspective and foresight
member are selected with the consent of the Audit & Supervisory
c) Personnel with high ethical standards and solid common sense
Board). Since fiscal 2019, outside Audit & Supervisory Board mem-
bers have also attended committee meetings to voice their opin-
Standards for Appointing Audit & Supervisory Board Members
a) Personnel who have an appropriate set of experience, qualifica-
ions as observers for the purpose of strengthening audit functions.
tion, ability, and expertise
The Board of Directors nominates the candidate directors and
b) Personnel who possess a high degree of financial and account-
Audit & Supervisory Board members, taking into account reports
ing knowledge (more than one member)
submitted by the Nomination Advisory Committee.
Expected Expertise and Attributes for Directors
Corporate
management
Finance
Business
strategy /
Marketing
Global business
Risk
management /
Compliance
ESG
ICT / DX
Government
agencies /
Research
institutions
l
a
n
r
e
t
n
I
Junichiro Ikeda
Representative Director
Takeshi Hashimoto
Representative Director
Akihiko Ono
Representative Director
Toshiaki Tanaka
Director
Kenta Matsuzaka
Director
Yutaka Hinooka
Director
Hideto Fujii
Outside Director
(Independent Officer)
e
d
i
s
t
u
O
Etsuko Katsu
Outside Director
(Independent Officer)
Masaru Onishi
Outside Director
(Independent Officer)
The chart above shows expected expertise and attributes, but does not indicate all the knowledge or expertise each director possesses.
President and CEO Succession Plan
To appoint a president and CEO (hereinafter referred to as the
the next CEO (including the re-appointment and dismissal of
“CEO”) who is eligible for the Company in a timely and appro-
the incumbent CEO) based on the succession plan and submit
priate manner, MOL formulated a succession plan in fiscal 2019
it to the Board of Directors. The new CEO appointed on April 1,
for the CEO that contains requirements, the appointment pro-
2021 was nominated in accordance with this succession plan.
cedures, and a cultivation plan for successor candidates. The
Nomination Advisory Committee will deliberate on a plan for
66
67
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021 Corporate Governance
Method of Computing Remuneration for Directors and Audit & Supervisory Board Members
Remuneration for Audit & Supervisory Board Members
Director Remuneration
Remuneration for Audit & Supervisory Board members is determined based on discussions between the members within the limits
approved at the General Meeting of Shareholders, with consideration given to whether an Audit & Supervisory Board member serves in
In June 2021, MOL revised its director remuneration system as outlined below, following a resolution by the Board of Directors based on
a full-time capacity or not, the amount of auditing work assigned, and the levels of director remuneration. Bonuses and stock options
the advice of the Remuneration Advisory Committee and approval at the General Meeting of Shareholders.
are not provided to Audit & Supervisory Board members.
Purpose of Revisions
(1) Provide incentives to achieve the MOL Group Vision and management plan (rolling plan)
while encouraging to perform duties that align with MOL CHARTS, the MOL Group’s values
and code of conduct
(2) Provide a remuneration system that is suitable for securing human resources and leads to
the greater motivation of employees to become directors
(3) Remuneration percentages are appropriately set in accordance with short-term and medium-
to long-term performance in light of the nature of the business. Director remuneration
plans are designed to foster a healthy entrepreneurial spirit, further align values with
shareholders, and improve even more the transparency and fairness of system operations.
Highlights of Revisions
• Introduction of long-term target contri-
bution-based remuneration (stock) to
strengthen long-term incentives,
employ a highly transparent, quantita-
tive evaluation standards
• Inclusion of safe operations indicator in
evaluation standards for single fiscal
year performance-linked remuneration
(cash) to incorporate social responsibil-
ity perspectives
Change in Remuneration Structure from Revision in Systems (Model remuneration when performance targets achieved)
Previous System
New System
Fixed remuneration
60%
Variable remuneration
40%
Fixed remuneration
60%
Variable remuneration
40%
Monthly remuneration
(cash)
60%
Bonus (cash)
30%
Monthly remuneration
(cash)
60%
Single fiscal year performance-
based remuneration (cash)
20%
Stock options (stock)
10%
Long-term target contribution-based
remuneration (stock)
20%
* The above diagrams are illustrations calculated based on a certain level of the Company’s business performance and share price. The percentages shown above may change
depending on the Company’s business performance, share price, etc. For outside directors, under the previous system, remuneration consisted of monthly remuneration,
bonuses, and stock options. However, since their main role is to supervise business execution, under the new system, remuneration for outside directors is only monthly
remuneration (cash).
Monthly Remuneration
(Cash)
Single Fiscal Year
Performance-Linked
Remuneration (Cash)
Long-Term Target
Contribution-Based
Remuneration (Stock)
Monthly remuneration is paid as a fixed remuneration based on responsibilities to encourage robust business execution.
Single fiscal year performance-linked remuneration was newly introduced to (1) link remuneration to consolidated ordinary profit, a performance
indicator in the Rolling Plan, to incentivize achievement of goals in the plan, and (2) link to the safe operations KPI and 4ZEROES benchmark in
order to reflect safety in evaluations and foster a greater awareness in our Company. In addition, to provide an incentive for directors in charge of
business divisions to improve the performance in their business division, the degree of achievement of the profit targets are reflected to the amount
paid, as a surplus to Companywide performance.
MOL introduced a performance-linked stock remuneration system with the objective of aligning the values of its directors (excluding outside
directors) more closely with those of shareholders by increasing their stake in the Company and remuneration paid are linked to its medium- to
long-term share price and performance. Under this system, as shown in the chart below, stock is granted based on the degree of achievement of
predetermined share price indicators as well as earnings benchmarks and targets over a certain time frame. A portion of this remuneration is paid
in cash as a source of funds for income tax payments by the director.
Evaluation Indicators for Long-Term Target
Contribution-Based Remuneration
Illustration of Director Remuneration Payments by
Achievement Level
Indicators
Weight
Reason for choosing this
indicator
(i) (a) Comparison of the Company’s
Total Shareholder Return (TSR)
and growth rate of Tokyo Stock
Price Index
(b) Comparison of the Company’s TSR
growth rate to competitors’ TSR
growth rates
(ii) ROE
(iii) Individual medium- to long-term
contribution targets
30%
Incentive to see share
price increase
40%
30%
Incentive to improve profit
attributable to owners of
parent and increase
efficiency of shareholders’
equity
Promote initiatives in the
fiscal year that will show
results in future years, in
order to enhance corpo-
rate value
Monthly remuneration
Single fiscal year
performance-based
remuneration
Long-term target
contribution-based
remuneration
20%
20%
60%
Consolidated ordinary profit
¥0
¥100 billion
¥150 billion
Achievement level of long-term
target contribution-based
remuneration
Low
Standard
High
Remuneration for Directors and Audit & Supervisory Board Members (Fiscal 2020)
Category
Number of people
Total compensation
(millions of yen)
Total remuneration, by type (millions of yen)
Basic remuneration
(monthly remuneration)
Performance-based
remuneration (bonus)
Non-monetary
remuneration (stock)
Directors
(of which, outside directors)
Audit & Supervisory Board
members (of which, outside Audit
& Supervisory Board members)
Total
(of which, outside members)
9 (3)
4 (2)
460 (51)
274 (30)
172 (18)
85 (20)
85 (20)
― (―)
13 (5)
545 (72)
359 (51)
172 (18)
13 (2)
― (―)
13 (2)
* The figures above include remuneration for one director (zero outside directors) who retired at the end of the Ordinary General Meeting of Shareholders held on June 23, 2020.
* Rounded down to the nearest one million yen.
Effectiveness Evaluation of the Board of Directors
MOL assesses and analyzes the effectiveness of its Board of Directors by conducting a self-assessment questionnaire each year and
deliberating the results at a Board of Directors’ meeting. We strive to further enhance Board of Directors’ effectiveness by ascertaining
issues through this process and formulating improvement measures.
Implementation schedule
Survey implementation: Early May
Discussion about survey results: Late May
Implementation
of Effectiveness
Evaluation
Main Items in Self-Assessment Survey
• • Composition and operation of Board of Directors (agenda items, time allocation, form of the meet-
ings, etc.)
•• Quality of discussions of Board of Directors (consistency with corporate principles and business
plans, risk controls, sustainability issues, consideration to the SDGs, etc.)
•• Effectiveness of discussions about business plans
•• Content of discussions about Deliberation on Corporate Strategy and Vision
Results of
Fiscal 2020
Evaluation
Based on the results of the survey, the Company deems that its Board of Directors is effectively functioning.
Main Reasons
• • Secured a large amount of time for deliberation on formulating Rolling
Plan 2021, in order to have intensive and procedural discussions on
changes in the business environment due to the COVID-19 pandemic, and
important next steps in medium- to long-term strategy while monitoring
trends in the global economy as the pandemic ends
•• Facilitated flexible discussions and decision-making based on the
seriousness of the agenda item before the Board of Directors, through
ad hoc meetings and online meetings of the Board of Directors
•• Properly explained to the Board of Directors, following active deliberation,
reforms to the director remuneration system, the execution of succession
plans for the CEO, and the adequate operation of the Nomination Advisory
Committee and Remuneration Advisory Committee, advisory entities to
the Board of Directors
Areas in Need of More Discussion and Improvement
• • Examine composition and diversity of Board of Directors, as well as skill
sets required for the Company’s operations in light of future business
development, in order to address global environmental and sustainability
issues
•• Monitoring the progress of Rolling Plan 2021 in order to strongly advance
the plan and conduct appropriate evaluation and examination of the
results, giving shape to longer term policies
•• Increase sophistication of the Company’s risk management and overall
internal controls by building a structure to systematically identify risks,
and deploying Total Risk Control*1
•• Secure more time for debate about important matters by being more
selective with agenda items and improving materials and explanations
*1 Total Risk Control is our proprietary risk management method developed by adapting methods used by financial institutions for MOL’s use. Please see
page 73 for more details.
Policy for
Fiscal 2021
MOL aims to improve the effectiveness of the Board of Directors further through the following initiatives in fiscal 2021, while referencing the issues identified in
the fiscal 2020 evaluation.
1) Examine and improve skill sets of directors based on future corporate governance policies
2) Examine and evaluate progress on the management plan Rolling Plan 2021, secure sufficient time to discuss long-term management policies, and properly
reflect the results of deliberations in the next management plan
3) Establish system for deciding appropriate risk exposure by creating systematic risk management and internal controls
4) Secure sufficient time to discuss important matters by being more selective of agenda items before the Board of Directors
Policy for Cross-Shareholdings
MOL holds shares in companies with which it has important business relationships and close cooperative relationships, including
business alliances, for the purpose of enhancing the growth and corporate value of the Company over the medium to long term by
maintaining and strengthening these relationships. For the shares held by the Company, the rationality of holding them, such as the
adequacy of the purpose and the profitability in light of the cost of capital, are reported to the Board of Directors individually every year.
Following a comprehensive verification, shares that do not have adequate reasons to be kept are gradually reduced. As the result of the
reduction of shares under this policy, the ratio of cross-shareholdings to net assets*2 was 8.8% as of March 31, 2021.
*2 The total balance sheet amount of investment securities held for purposes other than pure investment as a percentage of consolidated net assets
68
69
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021
Risk Management
For details on our initiatives related to Risk Management, please visit our website.
https://www.mol.co.jp/en/ir/management/risk/index.html
Basic Approach to Risk Management
MOL faces a variety of risks in its worldwide operations. For the
them as needed with the relevant division, and then the
following types of risks explained in the below chart, the
decision-making process starts. Depending on the importance
respective division in charge takes steps to mitigate risks,
of the project, the Investment and Finance Committee
including identifying risk amounts, reducing risk exposure with
discusses the matter prior to deliberations by the Executive
hedges, and transferring risk through insurance and other
Committee to dive deeper into the risk and summarize key
means, in accordance with defined rules and processes in each
points of discussion. Matters of utmost importance are put on
division. The situation of risk management in each division is
the agenda of the next Board of Directors’ meeting after
periodically reported to the Executive Committee, where infor-
deliberate discussion by the Executive Committee. Risk
mation is centrally managed and necessary decisions and
management is emphasized in making decisions, such as
responses are made. For new investment decisions, the divi-
making it a rule to discuss the matter based on a summary
sion responsible for assessment identifies risks and evaluates
sheet of potential risks.
Major Risks in Business Operations
Risk
Operational risks
Responsible division
Key management rules and guidelines
Marine Safety Division
Sales divisions, Insurance Team
Manuals for each ship management company
based on international rules
Shipping market fluctuation risks, customer
credit risks, and country risks
Corporate Planning Division
Sales divisions
Total Risk Control
Market risk management rules
Exchange rate, interest rate, and
bunker price fluctuation risks
Climate change risks
Finance Division (exchange rate, interest rates)
Bunker Business Division, Sales Divisions
(bunker prices)
Market risk management rules
Environment & Sustainability Strategy Division
Sales divisions
MOL Group Environmental Vision 2.1
TCFD, CDP
Cybersecurity risks
MOL Information Systems, Ltd.
Natural disaster and epidemic risks
Group governance risks
Secretaries & General Affairs Division, Marine
Safety Division
All divisions
Corporate Audit Division
Division responsible for Group company
management
Risks related to human rights and supply chains
Environment & Sustainability Strategy Division
Human Resources Division
ICT security rules
ICT security standards
MOL BCP summary
Group company management rules
Internal audit rules
Declaration of Harassment Prevention
Compliance rules, Rules of conduct
Basic procurement policy
Summary of Major Risks and Countermeasures
Risks Associated with Operations of Vessels and Offshore Plants
(Maritime accidents, oil spills, piracy, etc.)
Centered on marine transport, MOL operates roughly 800
terrorism by providing sufficient training, putting in place pre-
vessels of various types and offshore plants. As a company that
cise operational rules, providing support from Head Office, and
provides social infrastructure, some of the most serious risks
installing necessary facilities.
we face are damage to ships and cargo or injury to crew mem-
Even in the event of an accident that could not be avoided
bers caused by vessel collisions, ships running aground, fires
despite our best efforts, involving damage to MOL or related
and other accidents, as well as environmental pollution from
parties, the Company is prepared with insurance policies that
leakage of cargo oil and bunker oil (oil spills). To prevent acci-
have the necessary amount of coverage (general liability insur-
dents from occurring, without regard to owned vessels or
ance, hull insurance, war-risk insurance, loss of earnings
chartered vessels, MOL’s Safety Operations Headquarters,
insurance) in order to secure adequate funds for any compen-
sales divisions, shipowners (for chartered vessels), and ship
sation and to avoid a major impact to profit.
management companies work closely together on tangible and
To mitigate reputational risk, MOL implements emergency
intangible aspects of safety, from training and supervising crew
response training once a year for major maritime accidents,
members to adoption of safety standard specifications which
responding to the media and disclosing information about the
effectively maintain the safety of our vessels. We also make a
accident. Media consultants are hired when necessary.
variety of preparations to counter the dangers of piracy and
For details, please refer to “Value-Added Transport Services” on page 40.
Shipping Market Fluctuation Risks
Another fundamental risk on a par with accidents in the marine
To disperse risk, we use a portfolio strategy of diverse types
transport business is the risk of fluctuations in the shipping
of vessels subject to different patterns of market fluctuation.
market. To prevent excessive market risks, we manage risks by
This approach helps us to balance market risk across business
(1) limiting the total amount of risks, (2) dispersing risks, and
units, compensating for peaks and troughs.
(3) reducing the amount of risks during each fiscal year.
Last, we reduce the amount of risks during each fiscal year
To limit total risk exposure, we take steps to obtain medium-
by using freight forwarding agreements (FFAs) to hedge risk on
to long-term contracts with domestic and overseas customers
vessel types such as Capesize bulkers and Very Large Crude
that are highly creditworthy. In addition to narrowing down the
Carriers (VLCCs). We secure stable profits by reducing market
portion of the fleet that is exposed to the market, we work to
exposure during each fiscal year.
minimize risks by setting vessel charter periods from shipown-
We manage our total amount of shipping market risks with
ers to coincide with periods of contracts with customers, thus
a method we uniquely developed, called Total Risk Control
neutralizing our exposure to market fluctuation. When invest-
(explained later), to periodically measure and control risks
ing in vessels not allocated under medium- to long-term
so that it does not become excessive in comparison with
agreements, we carefully monitor future vessel supply–demand
shareholders’ equity.
balance and selectively execute such investments.
For reference, please also see “Risk Management for Business Investments” on page 73.
Exchange Rate, Interest Rate, and Bunker Price Fluctuation Risks
Exchange Rates
While Japanese international shipping company’s revenues are
Bunker Prices
Bunker costs represent a large portion of ship operating costs,
mostly in U.S. dollars, some costs and borrowings are on a
and in the past, price fluctuations had a significant impact on
Japanese yen basis, presenting an exchange rate risk. MOL
the MOL Group’s profits. However, currently, most medium- to
strives to limit its exposure by dollarizing costs and borrowings.
long-term contracts with customers contain bunker adjustment
To reduce this risk further, we also flexibly employ foreign
factor or bunker price surcharge clauses that have the
exchange hedging to limit profit sensitivity.
customer shoulder the risk of bunker price fluctuations.
Interest Rates
The MOL Group is constantly investing capital to build new
For short-term contracts, we work out freight rates reflecting
bunker prices at the time, or employ a formula to adjust freight
rates that take into account changes in bunker prices. For the
ships and replace existing ones. When securing long-term
remaining exposure, we work to reduce the risk amount by
funding for capital investment, in principle we hedge interest
using bunker forward trading. With these countermeasures,
rate risk by using fixed-rate loans or interest rate swaps.
the impact of bunker price fluctuations on profit and loss is now
very limited.
Climate Change Risks
By causing more severe weather and sea events, climate
by 2050. The Company has formulated and disclosed a road
change such as global warming can present a danger to safe
map for achieving this goal, and is now in the process of intro-
ship operations. The movement toward decarbonization to
ducing clean alternative fuels and energy-saving technologies
combat climate change has the potential to drastically change
while increasing the sophistication of efficient fleet operations.
the business environment for MOL, which requires large
By developing and providing solutions for alternative fuel trans-
volumes of bunker oil and transports various kinds of fossil
portation and low-carbon or decarbonization technology, MOL
energy as a main cargo, in the context of higher costs to comply
views this change as a business opportunity as decarbonization
with public regulations and a structural reduction in transport
stimulates new demand. The MOL Group uses a TCFD frame-
demand.
work to visualize its climate change risks and formulate related
Under MOL Group Environmental Vision 2.1, which is in tune
policies.
with these trends, MOL aims to achieve net zero GHG emissions
For details, please refer to “Marine and Global Environmental Conservation” on page 44.
70
71
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021 Risk Management
Cybersecurity Risks
MOL aims to prevent security incidents by implementing the following measures to counter cybersecurity risks that have increased in
recent years. In the event one occurs, we will take steps to minimize any adverse effects.
(1) Create organization dedicated to cybersecurity, and establish a response system for serious ICT incident (strengthen collaboration
across worldwide Group companies, including operating vessels)
(2) Standardizing regulations, security tools, IoT environment updates, and operations within the Group
(3) Assess Groupwide cyber risks and execute countermeasures
(4) Implement e-learning and targeted email training to improve security awareness and literacy of executives and employees
(5) To quickly gather information, coordinate with National Center of Incident Readiness and Strategy for Cybersecurity (NISC), JPCERT,
Tokyo Metropolitan Police Department, Transportation ISAC Japan, and Nippon CSIRT Association
(6) Other: Build a cybersecurity management system (CSMS) for operating vessels that complies with international rules, strengthen net-
work security with cloud security services, and assess and devise countermeasures for ransomware
For details, please visit our website.
https://mol.disclosure.site/en/themes/199
Natural Disaster and Epidemic Risks
To keep vessels operating even in the event of major earth-
simultaneously ensure (1) securing the safety of related par-
quakes or other natural disasters and to fulfill our social role of
ties, and reducing the risk of spreading the infection, and (2)
maintaining supply chains, we have formulated a BCP manual
fulfilling MOL’s mission to serve as social infrastructure. We
and introduced satellite offices and backup systems, and also
transitioned to full-time teleworking and rapidly identified any
provide ample training. We have completed the distribution of
impacts on operating vessels and took necessary measures. As
notebook PCs to all executives and employees and put remote
a result, we have successfully maintained business operations
working environments in place that use cloud-based tools.
without any major disruptions, with the exception of challenges
In response to the ongoing COVID-19 pandemic that started
for crew member changes due to restrictions on travel between
at the outset of 2020, in February 2020, MOL quickly launched
countries.
a response headquarters led by an executive vice president
executive officer. We implemented a range of measures to
Group Governance Risks
The MOL Group consists of more than 450 companies around
each Group company that are based on MOL’s rules, and the
the world. To ensure operations are being properly executed at
officers, employees, and temporary staff of Group companies
each company, Group companies submit required reports to
can report to MOL’s Compliance Advisory Service Desks.
MOL in a timely manner in accordance with Group Company
With regard to audits, each company has an appropriate
Management Regulations. MOL adequately ascertains the
internal audit structure, and Group companies in Japan and
financial conditions and business risks of these Group compa-
overseas are audited on a periodical and ad hoc basis by
nies, and requires them to obtain permission prior to executing
MOL’s Corporate Audit Division in accordance with the
important management matters.
internal audit rules.
To ensure compliance at Group companies, we set rules for
Risks Related to Human Rights and Supply Chains
As a company with operations around the world, MOL respects
harassment of any kind, and this has been promoted as a
the human rights of Group employees and all the people
theme related to sustainability issues. In addition to satisfying
involved in the supply chain. It is essential that we ensure their
international standards, such as the International Labour
safety and health, and create environments where diverse
Organization (ILO) and Maritime Labour Convention (MLC 2006),
human resources can play an active role. MOL’s Rules of
MOL strives to maintain even higher levels of standards in this
Conduct for executives and employees include sections about
regard.
respecting human rights and prohibiting discrimination and
Risk Management for Business Investments
1 Importance of Risk Exposure Management and Introduction of Total Risk Control
Not only can freight rates be extremely volatile, the availability of means
such as leasing and chartering vessels allows shipping companies to
expand their fleets relatively easily without necessarily being restricted
by their balance sheets. This mix of extreme volatility and ease of lever-
aging means that this kind of business is one wrong step away from
taking on too much risk. For the long-term stable operations of marine
transport companies, it is of vital importance that a company identifies
the total risk exposure it can take and understands the amount of risk
it is actually taking, while having a framework for balancing these
two factors.
At end of the marine transport boom in the 2000s, MOL failed to cut
back on investments at the right timing, anticipating ship tonnage
shortages to continue around the world. Having placed a large volume of
orders for ships, MOL began to receive these ships, built at a high cost,
while the market entered a long-term slump in the 2010s. This contin-
ued to weigh heavily on the Company’s profits until management
decided to make drastic business structure reforms. Learning its les-
sons from this painful experience, MOL developed and introduced its
own risk framework, called Total Risk Control, in 2014 as a set of consti-
tutional guardrails against excessive investment in the future.
2 Approach to Total Risk Control
Total Risk Control is a marine transport industry adaptation of the
risk management methods widely used by financial institutions.
Considerable stressful scenarios (low freight rates, weak vessel sales &
purchase market) are applied to the entire fleet at the same time and
run for a certain length of time to calculate maximum potential losses.
The risks are managed so that the total loss is not excessive compared
with shareholders’ equity. Basically, this identifies the total exposure to
risk taken based on the standard criteria that all debt can be repaid if all
owned vessels were to be sold. Under this framework, a Capesize bulker
will be assessed as having low risk exposure if it has a long-term con-
tract or a low book value (if owned) or charter rate (if chartered).
Conversely, the same Capesize bulker will be assessed as having high
risk exposure if it is subject to a short-term market or a high book value
(if owned) or charter rate (if chartered). Additionally, we take into account
the dispersion effect where the freight and charter market for each kind
of ship fluctuate at different times. Companywide risk exposure is
calculated once every six months, and the results are compared with
shareholders’ equity, reported to the Board of Directors, and audited.
When Total Risk Control was first introduced, the framework was simple
for mainly covering marine transport market risk and vessel sales
market risk. Subsequent revisions have broadened the scope of the
framework to include country risk, customer credit risk, and Group
company business risk, for a more appropriate measurement of risk
exposure.
Diagram of Total Risk Control
Consolidated balance sheet
Debt
Assets
Net assets
Restraining the risk
amount so it does not
become excessive in
comparison with
shareholders’ equity
Deemed assets in
vessels, including
chartered vessels
Convert to total risk
amount (= maximum
potential loss)
3 Total Risk Control and Consistent Standards for New Investment Decisions
When Total Risk Control was first rolled out, there was an issue where
the profitability benchmarks that the Company uses to make new invest-
ment decisions were not directly linked to the system. Through subse-
quent revisions, the framework was improved so that the funding costs
in profitability assessments varies depending on the size of risk expo-
sure, which is calculating based on the current concepts of the system.
In other words, internal evaluations of ship investment projects now take
into consideration the maximum potential loss in line with the amount
of risk associated with the ship and applies equity cost for this portion,
while debt cost is applied in the risk-free portion. In this way, the higher
the risk in a ship, the higher the funding cost associated with it, and the
investment will not be approved unless profitability are sufficiently high
to commensurate with this risk. Based on this approach, investment
projects that consume a large amount of Companywide investment
leeway (remaining amount of risks that can be added) face high hurdle
rates, and projects that require fewer resources face lower hurdles to
approval. The framework ultimately leads to an overall portfolio that
balances risks against returns.
Diagram of Internal Cost of Internal Funding Cost Based on Size of Risk
High-Risk Ships (no long-term contract, high ship building costs, etc.)
Low-Risk Ships (with long-term contract, low ship building costs, etc.)
Amount for which
cost of debt is applied
(risk-free portion)
Amount for which
cost of equity
is applied
Amount for which
cost of debt is applied
(risk-free portion)
Amount for which
cost of equity
is applied
For details, please refer to “Compliance” on page 74 and “Social Responsibility” on page 75.
Investment amount
(deemed amount used
if chartered vessel)
Convert to risk exposure
(= maximum
potential loss)
Breakdown of invested
amount by types of funding
costs applied
Investment amount
(deemed amount used
if chartered vessel)
Convert to risk exposure
(= maximum
potential loss)
Breakdown of invested
amount by types of funding
costs applied
72
73
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021
Compliance
Compliance Initiatives
For more detailed information on compliance-related matters, please visit our website.
https://www.mol.co.jp/en/corporate/compliance/index.html
Social Responsibility
Supply Chain Management
In 2014, the Japan Fair Trade Commission (JFTC) found that the
and make it the linchpin of decisions in daily business opera-
MOL procures vessels from shipyards (owned vessels) as well
stating that the yard meets all prescribed safety, environmen-
MOL Group had violated Article 3 of the Japanese Antimonopoly
tions. The Compliance Committee convenes every three
as other shipowners (chartered vessels). Given that marine
tal, and labor standards and complies with the Hong Kong
Act in certain car carrier shipping trades. In response, the MOL
months to discuss compliance matters within the Group and
vessels are the lifeblood of our business, we apply the MOL
International Convention for the Safe and Environmentally
Group has updated its compliance rules, which determine the
respond to any violation incidents. Further, the number and
Safety Standard Specifications to both owned and chartered
Sound Recycling of Ships.* We also keep track of the disman-
scope and Rules of Conduct of its executives and employees,
details of compliance events are disclosed within the Company
vessels (with the exception of short-term charters) to make the
tling process by requiring detailed reports of the work.
and provided ongoing training to ensure that the importance of
to raise awareness among all executives and employees.
equipment of all vessels under our control live up to certain
As described above, by being actively involved in the process
compliance—as the major premise of all corporate activities—
is etched deeply into the minds of all executives and employees,
Investigate
and report
General Manager of
Corporate Audit
Division
Investigate
and report
CEO
Executive Committee
Chief Compliance Officer (Chair)
Compliance Committee
Report and/or consult
Feedback
Internal Compliance
Advisory Service Desk
(Corporate Audit Division)
Diversity and Healthcare
Management Team, Human
Resources Division
(Harassment)
Mental Health and Healthy
Lifestyle Hotline
Compliance Officers
External Compliance
Advisory Service Desk
(General Managers of each division)
(Outside attorney)
Person reporting or seeking consultation on an issue
Compliance Advisory Service Desks
The MOL Group has established internal and external compli-
through our website from external parties, including customers
ance advisory service desks available in Japanese and English.
and suppliers both domestic and international.
These service desks can be used by officers, employees, and
temporary staff of MOL and its Group companies. The external
advisory service desk is entrusted to an outside attorney to run.
The attorney transmits reports and consultations received to
the Compliance Committee and continues to serve as a liaison
between the Company and people submitting reports or seek-
ing consultations. Both service desks keep reports and consul-
tations strictly confidential and ensure that personnel,
including those cooperating with an investigation, are not
treated unfairly. We also welcome compliance-related inquiries
Number of Consultations at Internal and External Compliance
Advisory Service Desks
(No.)
8
10
12
2
3
3
2
6
7
Fiscal 2018
Fiscal 2019
Fiscal 2020
Consultations about violations of laws and regulations
Consultations about harassment
Consultations about violations of internal rules and others
Initiatives to Comply with Antitrust Laws and Prevent Corruption
standards and keep our Standard Specifications constantly
even before the delivery of a new vessel from a shipyard or a
updated to ensure their effectiveness. During the construction of
shipowner as well as in stages after the disposal of a vessel, we
our owned vessels, we send supervisors to the shipyard to keep
will continue to ensure safety, reduce environmental impact,
a close on-site watch on building quality. These supervisors
and improve labor conditions of workers.
work with shipyard masters and safety management officers to
We also follow the MOL Group Basic Procurement Policy
check the situations of sites and identify risk factors for worker
when purchasing any product or service, including vessels.
injuries and fire outbreaks, requesting improvements if neces-
sary. In light of the accident off Mauritius in 2020, MOL is now
working on reinforcing safety management for chartered ves-
sels on all fronts, including deepening its involvement in the
selection of crew members that shipowner assign to ships.
When we sell off our vessels, in cases when the buyer
intends to dismantle the vessel, we bind them to use a demoli-
tion yard that has third-party certification (from ClassNK)
* The convention was adopted by the IMO in May 2009 to ensure the safe and
environmentally sound recycling of ships. As of August 2021, the convention
has not yet gone into effect as it is still in the process of being ratified by some
countries. The convention requires vessels to prepare, record, and update
inventory lists showing the quantity and location of hazardous materials within
the ship’s structure and onboard supplies. It also establishes the conditions
required of ship recycling facilities (demolition yards). Ahead of the convention’s
enforcement, MOL has already adopted rules for demolition yard selection
pursuant to the convention.
MOL’s Supply Chain for Vessel Procurement
In the case of owned vessels
In the case of chartered vessels
Shipbuilder
Shipowner
Vessel
construction
Vessel
chartered
Redelivery
MOL Group Basic Procurement Policy
With the following basic policy:
1. We comply with applicable laws, regulations and social norms, and pay due
consideration to the protection of the environment.
2. We procure goods and/or services, including the delivery or execution of such
goods and/or services, that meet high safety standards.
3. We conduct fair trade, and endeavor to establish trusting relationships with
MOL (as shipowner)
MOL (as charterer)
contractors.
Sale of vessel
Demolition yard
* In time-charter contracts, crew
member assignments and ship
management are arranged by
the shipowner.
We work to make sure that our contractors understand our Basic Procurement
Policy, with the aim of contributing toward the realization of sustainable societ-
ies together.
Human Rights
In 2005, MOL became the first Japanese shipping company to
participate in the United Nations (UN) Global Compact. We
Awareness Campaigns
To instill thorough awareness of human rights, MOL holds
express our support for, and practice of, universal principles
lectures on human rights as part of its Head Office stratified
regarding human rights and labor, and we have published a
training. The Company also holds harassment prevention
statement on our website in line with the UK Modern Slavery
lecture sessions as part of pre-orientation for personnel before
Act of 2015. Our Rules of Conduct, which ensures compliance
they are assigned to positions in Group companies, etc., in
The MOL Group takes rigorous measures to ensure compliance with the Antitrust Act and prevent corruption. We have an Antimonopoly
by our officers and employees also includes an article on
Japan or overseas.
Act Compliance Code and an Anti-Corruption (Anti-Bribery) Policy, as well as a Do’s & Don’ts Guide, which provides a set of more spe-
cific guidelines. We also implement a range of training sessions to keep all employees informed by providing them with overviews and
points to note in relation to domestic and international laws and regulations.
“Respect for human rights and prohibition of discrimination or
harassment.” This article codifies and demands compliance
with rules on respect for human rights, banning of discrimi-
10 Principles of the UN Global Compact
1. Business should support and respect the protection of interna-
Anti-Corruption Policy
As stated in its Compliance Policy, to ensure the building of good relationships based on trust with customers and contractors,
MOL established the Mitsui O.S.K. Lines’ Anti-Corruption Policy in October 2015. This policy eliminates bribery and excessive
business entertaining of public servants as well as those outside the government in Japan and overseas.
E-learning
Lectures for
Executives and
Employees
MOL holds continuous e-learning sessions for all employees within the Group, covering antitrust and competition acts, anti-
corruption (anti-bribery), and ICT security and governance. Moreover, employees of domestic Group companies receive e- learning
on topics about internal control, insider trading, and safety culture. In fiscal 2020, the average participation rate was 96.0% in
these three sessions around the world.
Employees are required to attend lectures on antitrust law upon reaching new position levels, and we also hold lectures on
anti-bribery.
Assessment of
Organizational Culture
To engender an organizational culture with “self-cleansing” capabilities in relation to compliance violations, we conduct a
biannual organizational culture assessment of our employees. Each department head uses the survey to ascertain the issues
in their departments and make use of the findings for improvements.
nation, understanding of different cultures and customs, and
Human Rights
tionally proclaimed human rights; and
prevention of harassment.
Initiatives to Safeguard the Human Rights of Our Crews
MOL adheres to the four fundamental rights of seafarers
stipulated under Maritime Labour Convention 2006: (1)
Freedom of association and the effective recognition of the
right to collective bargaining, (2) The elimination of all forms of
Labor
forced or compulsory labor, (3) The effective abolition of child
Environment
labor, and (4) The elimination of discrimination in respect of
employment and occupation. Our internal maritime compli-
ance policy also prohibits discrimination and establishes pro-
Anti-Corruption
cedures for dealing with complaints about harassment.
2. Make sure that they are not complicit in human rights abuses.
3. Businesses should uphold the freedom of association and the
effective recognition of the right to collective bargaining;
4. The elimination of all forms of forced and compulsory labor;
5. The effective abolition of child labor; and
6. The elimination of discrimination in respect of employment and
occupation.
7. Businesses should support a precautionary approach to environ-
mental challenges;
8. Undertake initiatives to promote greater environmental responsi-
bility; and
9. Encourage the development and diffusion of environmentally
friendly technologies.
10. Businesses should work against corruption in all its forms,
including extortion and bribery.
74
75
For Our Sustainable GrowthMITSUI O.S.K. LINES MOL REPORT 2021 Financial and Non-Financial Highlights
For the year
Shipping and other revenues
Shipping and other expenses
Selling, general and administrative expenses
Operating profit (loss)
Ordinary profit (loss)
Income (loss) before income taxes and
non-controlling interests
Profit (loss) attributable to owners of parent
Free cash flow [(a) + (b)]
Cash flows from operating activities (a)
Cash flows from investing activities (b)
Depreciation and amortization
At year-end
Total assets
GEAR UP! MOL
RISE 2013
STEER FOR 2020
ROLLING PLAN
2011/3
2012/3
2013/3
2014/3
2015/3
2016/3
2017/3
2018/3
2019/3
2020/3
2021/3
(Millions of yen)
¥1,543,660
¥1,435,220
¥1,509,194
¥1,729,452
¥1,817,069
¥1,712,222
¥1,504,373
¥1,652,393
¥1,234,077
¥1,155,404
¥ 991,426
1,328,959
1,368,794
1,432,014
1,587,902
1,683,795
1,594,568
1,388,264
1,513,736
1,094,915
1,035,771
911,055
91,300
123,400
121,621
90,885
(24,459)
(24,320)
92,946
(15,766)
(28,568)
100,458
41,092
54,985
116,024
17,249
51,330
115,330
2,323
36,267
113,551
2,558
25,426
115,972
22,684
31,473
95,366
(33,516)
(137,938)
71,710
58,332
(154,385)
23,303
(28,709)
58,277
46,970
181,755
(134,785)
77,445
(26,009)
(178,846)
(129,298)
5,014
(25,285)
78,955
57,393
(25,615)
94,255
(134,312)
(104,240)
(119,870)
85,624
94,685
83,983
42,356
(66,656)
92,494
(159,150)
87,803
(170,447)
182,508
209,189
(26,681)
92,771
5,257
(56,318)
17,623
(73,941)
87,190
(47,380)
(2,471)
98,380
(100,851)
(198,341)
86,629
90,138
101,442
37,718
38,574
46,778
26,875
(143,093)
55,248
95,852
23,779
55,090
47,130
32,623
(6,527)
100,723
(107,250)
87,765
85,674
(5,303)
133,604
100,313
90,052
44,238
98,898
(54,660)
85,798
¥1,868,740
¥1,946,161
¥2,164,611
¥2,364,695
¥2,624,049
¥2,219,587
¥2,217,528
¥2,225,096
¥2,134,477
¥2,098,717
¥2,095,559
Total tangible fixed assets
1,257,823
1,293,802
1,303,967
1,379,244
1,498,028
1,376,431
1,323,665
1,290,929
1,193,910
1,201,698
1,099,458
Total investments and other assets
Interest-bearing debt
Net assets
Shareholders’ equity
Amounts per share of common stock*1
257,286
724,259
740,247
660,795
249,228
869,619
717,909
637,422
323,468
422,426
1,046,865
1,094,081
619,492
535,422
783,549
679,160
577,157
353,197
381,097
425,300
524,411
533,320
637,736
1,183,401
1,044,980
1,122,400
1,118,089
1,105,873
1,096,685
1,026,994
892,435
782,556
646,924
540,951
683,621
571,983
628,044
511,242
651,607
525,064
641,235
513,335
699,150
577,782
Profit (loss) attributable to owners of parent (Yen)
¥ 487.50
¥ (217.60)
¥(1,495.70)
¥ 479.90
¥ 354.20
¥(1,425.00)
¥ 43.95
¥ (396.16)
¥ 224.72
¥ 272.79
¥ 752.98
Net assets (Yen)
5,528.30
5,332.70
4,477.60
5,679.00
6,542.60
4,522.80
4,782.25
4,274.81
4,390.39
4,292.31
4,830.12
Cash dividends applicable to the year (Yen)
100
50
0
50
70
50
20
20
45
65
150
Management indicators
Gearing ratio (Times)
Net gearing ratio (Times)
Equity ratio (%)
ROA (%)
ROE (%)
Dividend payout ratio (%)
1.10
1.00
35.4
6.5
8.8
20.5
1.36
1.23
32.8
(1.3)
(4.0)
―
1.96
1.58
24.7
(1.4)
(30.5)
―
1.61
1.35
28.7
2.4
9.5
10.4
1.51
1.35
29.8
2.1
5.8
19.8
1.93
1.64
24.4
1.5
(25.8)
―
1.96
1.64
25.8
1.1
0.9
45.5
2.19
1.82
23.0
1.4
(8.7)
―
2.11
1.88
24.6
1.8
5.2
20.0
2.14
1.94
24.5
2.6
6.3
23.8
CO2 emissions of MOL Group*2 fleet (Thousand tons)
Number of MOL Group*3 employees
20,073
9,438
19,660
9,431
18,876
9,465
17,810
10,289
18,803
10,508
18,676
10,500
18,203
10,794
17,774
10,828
12,199
8,941
11,137
8,931
1.78
1.63
27.6
6.4
16.5
19.9
9,665
8,571
Note: Rounded down to the nearest one million yen
*1 The Company consolidated every 10 shares into 1 share effective October 1, 2017. Accordingly, figures have been calculated as if the consolidation of shares had been
conducted at the beginning of the fiscal year ended March 31, 2011.
*2 The Company and its consolidated subsidiaries. Emissions at Ocean Network Express Pte. Ltd. (ONE), which began operations in fiscal 2018, are not included. (The emissions
of ONE have been retroactively deducted from the figures for FY2018 and FY2019 to unify the scope of calculation.)
*3 The Company and its consolidated subsidiaries
76
77
Data Section MITSUI O.S.K. LINES MOL REPORT 2021 The MOL Group’s Global Network
United
Kingdom
Japan
Singapore
Headquarters and Chief Executive Representative Offices
Chief Country / Regional Representative Offices
Group company (50% stake or more) offices
Countries and Regions with Group Offices (As of April 30, 2021)
Asia / Middle East / Oceania
Japan
Republic of Korea
China
Taiwan
Hong Kong
Indonesia
Thailand
Philippines
Singapore
Vietnam
Malaysia
Myanmar
India
Sri Lanka
Sultanate of Oman
Qatar
United Arab
Emirates
Australia
New Zealand
North America /
Central America /
The Caribbean
United States
Canada
Mexico
Panama
Europe / Africa
United Kingdom
Italy
Netherlands
Denmark
Germany
France
Belgium
Czech Republic
Poland
Russia
Turkey
Kenya
Republic of
South Africa
Mozambique
Republic of
Mauritius
United States
Brazil
South America
Brazil
Chile
Colombia
History of the MOL Group
Building trust by anticipating customer needs and the demands of the times
1884
1964
2004
Osaka Shosen Kaisha (O.S.K. Line) is estab-
lished by a union of small- and medium-sized
shipowners in the Kansai region.
1890
O.S.K. Line launches its first overseas route
service between Osaka and Busan.
1909
O.S.K. Line launches its first long-distance
ocean service between Hong Kong and Tacoma.
1930
KINAI MARU, a high-speed cargo ship, travels
from Yokohama to New York in 25 days,
17 hours, and 30 minutes (advanced ships
at the time averaged 35 days back then).
1939
ARGENTINA MARU and BRASIL MARU, two
leading cargo-passenger ships in prewar
Japan, ply routes to South America.
1942
Mitsui & Co., Ltd. spins off its shipping
department to create Mitsui Steamship Co., Ltd.
(Mitsui Line).
Industry restructuring through consolidation of
marine transport companies
Daibiru Corporation becomes a consolidated
subsidiary of MOL.
O.S.K Line and Mitsui Line merge to form
Mitsui O.S.K. Lines, Ltd.
1965
MOL launches Japan’s first specialized car
carrier, the OPPAMA MARU.
1968
Service of full containership the AMERICA
MARU begins.
1993
Crew training school is established in the
Philippines.
1995
2010
First participation in FPSO project
2017
Becomes the first company to own an FSRU
in Asia
2018
Container shipping joint venture of three
Japanese companies, Ocean Network Express
Pte. Ltd.(ONE), starts business operations.
Establishment of maritime academy in the
Philippines
World’s first marine transport alliance called
The Global Alliance (TGA) is formed with two
overseas shipping companies.
Accomplishing the Company's first natural gas
transportation in the Arctic Ocean eastward
route using an ice-breaking LNG carrier
1999
2020
New Mitsui O.S.K. Lines is established through
the merger of MOL and Navix Line.
MOL’s first LNG bunkering vessel is delivered.
Information Disclosure and External Recognition
Promoting Information Disclosure and Engagement
MOL recognizes the importance of accurately disclosing busi-
shareholders and investors and analysts is provided to man-
ness and financial information at appropriate times in order to
agement in a regular manner and utilized to enhance corporate
be accountable to shareholders and investors, and feeds back
value. In fiscal 2021, the Company announced revisions to its
their opinions into management.
director remuneration system, updates to its environmental
At MOL, top management are directly engaged in investor
vision, its intentions for medium-term shareholder returns, and
relations (IR) activities. The CEO himself participates in meet-
a reassessment of sustainability issues that is currently under-
ings (individual and group settings) with investors in Japan and
way. The candid opinions we received from shareholders and
from abroad, in addition to interim and annual results briefings,
investors were a major driving force behind these initiatives.
to explain results in his own words and be accountable to
The fulfillment of accountability is not limited to providing
shareholders.
management and financial information. The Company holds
In the interest of fair disclosures, when announcing quarterly
regular drills on responding to the media in emergencies to
results, MOL discloses financial highlights in Japanese and
establish capabilities for timely, appropriate disclosure and
English on the Tokyo Stock Exchange’s TDnet while also post-
endeavors to ensure prompt disclosure of accident-related
ing financial results presentation materials in both languages
information.
on the Company’s website. Update notices for such information
Going forward, MOL will continue taking measures to
is emailed to domestic and overseas investors at their request.
enhance trust in its business policies and management through
MOL also offers a wide range of information related to invest-
close communication and engagement with a wide range of
ment decisions, such as its management strategy, investment
stakeholders.
plans, market conditions, sustainability initiatives, and other
topics through its website. The Company will continue to
enhance the quality and volume of information disclosures
in accordance with fair disclosure rules.
As advocated by Japan’s Corporate Governance Code, MOL
Examples of discussion topics that arose in investor engagement
and were reflected in the Company’s policies and measures
• Formulation of succession plan for president and CEO
• Review of director remuneration system
proactively engages in constructive dialogues with sharehold-
• Establishing of MOL Group Environmental Vision 2.1, which
ers and investors. In fiscal 2021, in light of the ship grounding
targets net zero GHG emissions by 2050
and oil spill accident off Mauritius, MOL held a dialogue with
• Emphasis on free cash flow
the Institutional Investors Collective Engagement Forum.
Moreover, feedback on the content of discussions with
• Disclosure of intentions to augment shareholder returns
IR Activities in Fiscal 2020
IR Materials (Available on MOL’s website)
Activity
Frequency
Details
Material
Japanese
English
For securities
analysts and
institutional
investors
For overseas
institutional
investors
Business performance
presentations
4 times Quarterly results / forecasts
CEO’s small meetings
5 times
Two held each in spring and autumn,
once for responsible investment
managers
Overseas investor road shows
4 times
Held online (twice in Europe, once in
North America, once in Asia)
Conferences held by
securities companies
4 times
Participation in online conference
(individual meetings)
For individual
investors
Corporate presentations for
individual investors
1 time
Participation in online seminars for
individual investors
Stock exchange filings
(financial highlights, etc.)
Business performance
presentation materials (including
summaries of Q&A sessions)
Yes
Yes
Yes
Yes
Business performance
results briefing video
Integrated report
Securities reports (“Yuho”)
Quarterly reports
Business reports for shareholders
Investor guidebook
Market data
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
No
No
No*
Yes
Yes
* Translation for reference and convenience purpose only
is available.
External Recognition
DISCLOSURE INSIGHT ACTION
“A-” evaluation
received in fiscal 2020
78
79
Data Section MITSUI O.S.K. LINES MOL REPORT 2021
Glossary (In alphabetical order)
Shareholder Information
CCS (Carbon Capture and Storage)
CCU (Carbon Capture and Utilization)
CCS is a technology for capturing and storing carbon dioxide before it is
released into the atmosphere at plants and power stations. CCU is a
technology for using captured carbon dioxide to make fuel and chemicals.
Combining these two technologies is called CCUS (Carbon Capture,
Utilization, and Storage).
Market Exposure
Market exposure is when a company takes the risk of shipping market
fluctuations due to a mismatch of ship procurement and operation, when
spot contracts or short-term cargo contracts are allocated to ships (both
owned vessels and chartered vessels) procured on the assumption they
will be used over the medium or long term. MOL defines market exposure
ships as medium- to long-term procured ships without contracts lasting
more than two years. While monitoring the ratio of market exposure ships,
management properly controls the total shipping market fluctuation risks.
Chemical Tankers
Tankers fitted with multiple tanks to transport many different types of
liquid chemical cargo at the same time. These tankers have complex
design specifications, as they are equipped with independent pipelines,
cargo pumps, and temperature-regulating functions for each tank, in
addition to dedicated facilities for cleaning and other features.
FPSO (Floating Production, Storage and Offloading
System)
FPSO is floating facilities that produce, store and offload oil and gas. Crude
oil produced and stored offshore is directly loaded into shuttle tankers for
transport.
FSRU (Floating Storage and Regasification Unit)
FSU (Floating Storage Unit)
An FSU is a floating facility for storing LNG offshore. An FSRU has the
same structure as an FSU with an additional function for regasification
of LNG onboard, with which it can send out vaporized natural gas to land
through a pipeline. FSRUs and FSUs are being adopted for a growing
number of projects to establish LNG receiving terminals all over the world
because of their advantages, including a shorter lead time and lower costs
compared to conventional onshore receiving terminals.
Highly Stable Profits
Profits that are stably generated by contracts of two years or more, and
projected profits from highly stable businesses. Highly stable profits are
currently provided by the following: Dry bulkers, Tankers, and LNG carriers
/ Offshore businesses under medium and long-term contracts; Real estate
and Tugboats.
IMO (International Maritime Organization)
A United Nations specialized agency that promotes intergovernmental
cooperation on technical and legal issues affecting international shipping,
such as maritime safety, navigation efficiency, and prevention of marine
pollution. It also creates a regulatory framework for the shipping industry
that is fair and effective, universally adopted, and universally implemented.
LNG Carriers
Tankers designed for the transportation of liquefied natural gas (LNG). To
transport LNG which has been cooled to -162°C, LNG carriers make use of
a wide variety of technologies in various ship parts, including specialized
tanks that can withstand extremely cold temperatures and emergency
shut-off devices to prevent accidents in cargo operation.
NOx
Nitrogen oxide (NOx) is a cause of atmospheric pollution, and it is created
when nitrogen combines with oxygen in the air under high temperatures,
like when fuel is combusted inside engines. NOx emissions from ships are
regulated by IMO rules, and the third set of NOx regulations went into
effect in 2016.
Open-Hatch Carriers
Cargo ships with several box-shaped storage areas with wide openings,
equipped with jib cranes or gantry cranes. These ships can efficiently load
and transport rectangular-shaped unit cargoes, such as wood pulp, steel
products, and project materials.
RoRo (Roll-on / Roll-off) Ships
These ships have rampways that allow vehicles to be driven on and off the
ship. They can also transport trucks and trailers loaded with cargo. Among
ships equipped with RoRo systems, there are pure car carriers that
transport vehicles and construction machines that are not loaded with any
cargo, as well as ferries that transport cargo vehicles, travelers, and
privately owned vehicles.
Subsea Support Vessels
Vessels designed for installation and maintenance of subsea facilities
during production and exploitation of offshore oil and gas fields.
Small- and Medium-Sized Bulkers
Panamax, Handymax, and Handysize dry bulkers that mainly transport
general bulk cargo, such as coal, grain, salt, cement, and steel products.
SBT (Science Based Targets)
In 2015, the SBT initiative was jointly created by the World Wildlife Fund
(WWF), CDP, the United Nations Global Compact, and the World Resources
Institute (WRI) for corporations to set targets for reducing GHGs based on
scientific knowledge. It has become a global standard for formulating
targets in line with the Paris Agreement.
SOx
SOx encompasses sulfur dioxide (SO2) and other sulfur oxides, which are
substances that pollute the atmosphere when oil, coal, and other fossil
fuels that contain sulfur is incinerated. In the shipping industry, SOx
emissions in the exhaust gas of ships are regulated, and in January 2020,
regulations were tightened, greatly reducing the allowable sulfur content
in bunker fuel from 3.5% to less than 0.5% (general sea areas).
TCFD (Task Force on Climate-related Financial
Disclosures)
A disclosure framework specializing in climate-related information.
It encourages companies to disclose the financial impact climate change
has on their business.
80
Capital
Head Office
¥65,400,351,028
For further information, please contact:
1-1, Toranomon 2-chome, Minato-ku, Tokyo
105-8688, Japan
Investor Relations Team
Corporate Communication Division
Mitsui O.S.K. Lines, Ltd.
1-1, Toranomon 2-chome, Minato-ku, Tokyo
105-8688, Japan
EMAIL iromo@molgroup.com
WEB https://www.mol.co.jp/en/
Number of MOL employees
1,119
Number of MOL Group
employees
(The parent company and
consolidated subsidiaries)
8,571
Total number of shares
authorized
315,400,000
Number of shares issued
120,628,611
Number of shareholders
83,778
Shares listed on
Tokyo Stock Exchange
Share transfer agent
(Contact information)
Communication materials
Sumitomo Mitsui Trust Bank, Limited
Stock Transfer Agency Business Planning
Department
8-4, Izumi 2-chome, Suginami-ku, Tokyo
168-0063, Japan
MOL Report (English / Japanese)
Investor Guidebook (English / Japanese)
Market Data (English / Japanese)
Website (English / Japanese)
YouTube Official Channel (English / Japanese)
(As of March 31, 2021)
Stock Price (Tokyo Stock Exchange) and Volume of Stock Trade
Fiscal 2018
Fiscal 2019
Fiscal 2020
High
Low
¥3,490
¥2,163
High
Low
¥3,155
¥1,487
High
Low
¥4,385
¥1,602
(¥)
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
(Million shares)
150
4
5
2018
6
7
8
9
10
11
12
1
2
2019
3
4
5
6
7
8
9
10
11
12
1
2
2020
3
4
5
6
7
8
9
10
11
12
1
2
2021
3
4
5
6
7
8
120
90
60
30
0
81
Data Section MITSUI O.S.K. LINES MOL REPORT 2021