New Year’s Address for 2026
Takeshi Igarashi, President & CEOTo all members of the Kawasaki Kisen Group and your families, I would like to extend my sincere greetings and best wishes for the New Year. I trust that you were able to spend the year-end and New Year holidays in good health and with renewed energy.Looking back on 2025, the business environment surrounding our company was marked by persistent geopolitical risks, including heightened tensions between the United States and China, escalating conflicts in the Middle East, and the prolonged Russia–Ukraine situation. In addition, concerns over a global economic slowdown and uncertainty in national energy and environmental policies have continued, creating a business environment characterized by an exceptionally high degree of unpredictability.Particularly impactful were U.S. tariff policies, the temporary but disruptive proposal by the U.S. Trade Representative (USTR) to impose surcharges on vessels, and the countermeasures taken by China and other nations in response. These developments became major sources of confusion affecting global trade and maritime transport demand. As a shipping company at the core of these dynamics, we faced numerous operational challenges throughout the year.On the environmental front, at the IMO MEPC meeting held in October last year, the adoption of midterm measures for greenhouse gas (GHG) reduction in international shipping was postponed, delaying the establishment of unified global rules. Some countries and regions also scaled back their decarbonization initiatives, raising concerns about the direction of future national energy mixes. Despite these uncertainties, the global trend toward long-term GHG reduction remains firm, and our company will continue steadily advancing initiatives aimed at reducing environmental impact.Under our Medium-Term Management Plan (MTMP), launched in FY2022, we have built a stable earnings foundation. This has included strengthening our core businesses—particularly the three growth-driving business segments—and supporting the container shipping business through our stake in Ocean Network Express (ONE).For FY2025, we expect ordinary income of 100 billion yen. Looking ahead to FY2030, we are targeting ordinary income of 250 billion yen plus alpha. Based on these assumptions, operating cash flow for the five-year MTMP period is projected to increase from the original estimate of around 1 trillion yen to approximately 1.5 trillion yen. At the same time, investment cash flow has been expanded from 520 billion yen to 610 billion yen, enabling continued growth-oriented investments. Shareholder returns have also been enhanced—rising from the initial 400–500 billion yen range to more than 800 billion yen. For FY2025, we plan a total dividend of 120 yen, consisting of a base dividend of 40 yen and an additional dividend of 80 yen.As we enter FY2026, the final year of the MTMP, this will be a pivotal year for stepping into our next stage of growth, building upon the achievements and challenges of the past several years. For example, since 2024 we have been participating in the world’s first full-scale carbon capture and storage (CCS) project, the “Northern Lights Project,” in a key vessel-management role. This participation reflects our long-standing expertise in liquefied gas transportation, strong customer relationships, and integrated strengths in maritime operations, engineering, and environmental technologies. It is a symbolic model demonstrating how our capabilities contribute to solving global societal challenges.In addition, the “Seawing” kite system—which utilizes wind power to reduce CO₂ emissions—is another example of how our technical strengths enable us to pursue innovative solutions that contribute to decarbonization.We believe that our competitive edge lies in our maritime expertise, developed through the operation and management of a diverse range of vessel types; our technological capabilities in shipbuilding, environmental solutions, and marine fields; and our solid global relationships with customers and partners. By leveraging these strengths, we have enhanced our “engineering capabilities,” enabling us to offer optimal solutions in areas such as fuel transitions and supply chain decarbonization. Going forward, by utilizing these engineering capabilities across the core domain of “transportation,” we aim to contribute to building new supply chains, fulfill our social responsibility as a logistics infrastructure company, and enhance corporate value through strengthened profitability.To support future challenges, three foundational pillars will be critical: “People & Organization,” “Digital/DX,” and “Management.”In People & Organization, we will continue fostering and securing talent—both at sea and on land—who can tackle real-world problems. We will also reinforce our global network to strengthen access to growth markets.In Digital/DX, we will advance data integration to support decision-making, operational excellence, and value creation. We will also promote collaboration with external partners as we move toward data-driven management.In Management, we will strive for further sophistication in business operations and investment decisions, targeting returns that exceed each business’s cost of capital and driving long-term corporate value enhancement.This year is the “Hinoe-Uma” (Fire Horse) year in the traditional zodiac. “Hinoe” symbolizes strong positive energy and visibility, while “Uma” represents vitality, forward momentum, and passion—making this a year suitable for bold challenge and dynamic progress. Furthermore, we hope to draw inspiration from “Hidari-Uma,” the reverse-character “left-facing horse,” known as a lucky symbol that brings prosperity, good fortune, and successful relationships. With the powerful energy of the Fire Horse and the auspicious meaning of the Left-Facing Horse, let us unite our individual strengths and make this a year of growth, advancement, and renewed success.In closing, I sincerely wish for the continued good health of all Kawasaki Kisen Group members, including those working overseas and onboard vessels, as well as your families. I also pray for the safe voyages of all our vessels. This concludes my New Year’s address.
KOR
ENG