New Year's Greetings from NYK President Takao Kusakari
January 5, 2004
Year of the MonkeyI wish all of you a Happy New Year, and I would like to take this occasion to extend my hearty New Year's greetings to all 33,000 people working for the NYK Group around the globe.
According to the ancient Asian calendar with its cyclical recurrence of 12 animal signs, this is the Year of the Monkey. For us in global logistics, the Year of the Monkey has, in the past, witnessed developments of great significance.
In the 1860 Year of the Monkey, 144 years ago, Japan's first overseas mission traveled to the U.S. aboard Kanrin Maru. Twelve years later, in 1872, Japan's first railroad went into operation between Tokyo's Shinbashi and Yokohama. And in 1896, 24 years after that, Henry Ford's four-wheeled motor vehicle ran through the streets of Detroit.
In more recent times, Japan's Antarctic observation vessel Soya made its maiden voyage in 1956, and from 1980 to 1981, Shinkai 2000, a manned research submersible, was built as the vanguard for one of NYK's great projects, the deep-sea drilling vessel named Chikyu. These events represent the important transport-related developments that take place in Years of the Monkey. Indeed, the Year of the Monkey is our year - let's enter it with fresh vigor.
Last year, the shipping community enjoyed such a welcome resurgence of activity that today, with the Year of the Monkey unfolding, we expect the upswing to continue, running further ahead and carrying the shipping market toward increasing stability and prosperity.
At the same time, history reminds us that the shipping market can change unpredictably and run counter to expectations. And so, while this Year of the Monkey now looks favorable, we must never let down our guard, but remain alert throughout!
EnvironmentTurning to the environment surrounding us, we here and there see bright spots in the world economy. On the whole, though, it is a mix of bright and dark spots. With the next presidential election around the corner, the U.S. economy is generally expected to continue enjoying good times, while China's amazing dynamism should support the shipping market and cargo traffic. In contrast to these positive elements, however, economic recovery is still a long way off for the European Union (EU), and in Japan, the government's trumpeting of signs of recovery belies our deeper feeling.
As regards world politics, the Palestine situation remains a quagmire, and although President Saddam Hussein has been arrested, the Iraqi debacle is unresolved, terrorist attacks now a daily occurrence with no signs of ending. Against this backdrop, Japan has decided to send contingents of its Self-Defense Force to Iraq. Japan, long spared from international turmoil, must now prepare itself to be drawn into the dangerous whirlpool of militant politics.
Two MessagesToday, at the start of the second year of our Forward 120 vision, I would like to tell you about two things. One concerns Forward 120 itself; the other, our business results for the 2003 fiscal year that will end in March.
1. Genba, the actual workplace, is our key to success - Find your own Forward 120As you are well aware, the battle of Forward 120 must be won in the short time left before the end of March 2005. During this decisive short-term battle, I urge you all to prepare yourselves - by building basic strength and sowing seeds - to prepare yourselves for our big leap into the next 120 years. I earlier asked you all for the courage to change, and yet, I think you will face varied difficulties in your respective workplaces.
The two key phrases for the success of Forward 120 are "Globally Dedicated" and "Locally Focused." In the 120 years since its founding, NYK has continually reformed itself, and thereby, ridden out the changing times. At the root of that flexible stance is a code of conduct that attaches primary importance to the genba where cargo moves. The starting point for our company, originally a shipping firm, is the regular and safe navigation of vessels.
In order to make the big leap forward, then, I would urge you all to take a renewed look at your respective genba.
Under the slogan "Genba," I am determined to do my utmost together with you throughout this year. Neither changing what is fabricated in our heads nor logic alone will give birth too much. Rather, we should recognize afresh that only by reforming the "global genba" can we induce the real evolution of the NYK Group. Again, I urge each and every one of you to take a renewed look at your respective genba and search for your own Forward 120.
2. Business Results for the Current Fiscal YearNext, let me touch on our business results for the current fiscal year. Thanks to your devoted efforts, we were able to register a record-breaking recurring profit of 37.4 billion yen for the first half of the fiscal year. The recovery of our liner shipping business was a particularly important contributing factor. Let me take this occasion to renew our thanks to everyone involved.
In terms of the outlook for the full-year recurring profit, though, our figures leave something to be desired when compared with the projections of rival companies. Moreover, partly because our non-shipping business has not grown smoothly, the stock market is lowering its assessment of our company.
Nonetheless, we need not be daunted or disturbed by such developments, for we are in the process of facing up to challenges in new spheres, including our non-shipping business, in order to take the next big leap forward - that's "Forward 120." This attitude is true for logistics, the overseas development of bulk and energy resource transport, and the expansion of passenger ship services.
Last year, I repeatedly said to you, "This is the year for sowing seed." The same can be said about this year. Sowing seed takes money. The world is not so tractable that all sown seed sprouts, immediately producing tangible results. All of you must be keenly aware of this. To be sure, we are now experiencing severe birth pains. I am convinced, however, that by overcoming this trial, we'll be able to see our seed put forth large flowers - to wit, the fourth major pillar for NYK Group earnings - from 2005 onward, when NYK will enter its second period of youth. As long as each and every one of us believes in and supports this choice, we need not be disturbed by noise from outside. Let us proceed single-minded on the road we believe in.
At the same time, there are some questions I do hope you ask yourselves. For example, are we so accustomed to our recent business success that we would take a recurring profit of 50 billion yen or 70 billion yen for granted? Has success weakened our readiness for adventure and challenge? Have we succumbed to a "petit bourgeois" syndrome that would leave us satisfied with the status quo? Please ask yourselves these questions as a form of in-depth soul searching.
Looking back on this fiscal year, I sense emerging signs of such attitudes in the business results of some sectors. Please, therefore, once more undertake a comprehensive review of the organization and action plans of your respective division; then uproot any "petit bourgeois" syndrome and infuse the spirit of the Three Cs - "Change, Challenge, Create" - into your genba. I call on you, thus, to clear up your "road maps" for an even greater leap forward.
ConclusionIn closing, let me sincerely pray for a new year of health and happiness for all members of the NYK family - our most valuable group assets - as well as for their families. Again, I wish you all a Happy New Year!
A short message from NYK Senior Managing Director Koji Miyahara (a next president from April 1,2004)I would like to express my sincere New Year's greetings to all of you. Although it is early, please let me deliver a short message.
For these last few years, the NYK Group has been extending its business success under President Kusakari's strong leadership. I am aware that my assignment is to take over that sprit and extend it further, strengthening our power as a leading total logistics group, incomparable around the world, while securing a reputation for strong reliability from our global customers. Beginning in April, then, after three months of warm-up, I will complete Forward 120 with all my power. I intend to head the creation and implementation of a new mid-term group management plan, in which I will appreciate your every assistance and support.
In closing, let me pray that all members of the NYK family and their loved ones enjoy health and happiness.
- New NYK President Announced -On December 25, 2003, NYK announced that Mr. Koji Miyahara, Senior Managing Director of NYK, has unofficially been appointed as its new president. He will assume the presidency on April 1, 2004.
The incumbent President Takao Kusakari will become Chairman, although he will maintain his representative rights. Both appointments will become official at a January 29 board meeting.