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MARCH2012LeaderlISSREPORTERwww.iss-shipping.com3DearColleaguesAwarmwelcometo2012x19sfirsteditionoftheISSReporter.Itrustyouhadawelldeservedbreakoverthefestiveseasontogetherwithfamilyandfriends.Ashighlightedinmylastcolumn2011turnedouttobeayearfullofgeopoliticalandnaturaldisastersaswellasmarketchallengesmostofwhichnegativelyaffectedourtoplineearnings.Whilstourannualaccountsarenotfinaliseditisclearthatour2011resultswillfallshortofbudgetwhichnaturallyisnotsatisfactory.BackinNovember2010whenwefinalisedour2011budgetwedidsoonthebasisofanumberofpredictionsprojectionsandassumptionsnotalwayswithinourcontrol.Wehoweveralsomakeanumberofprojectionsandassumptionsthatarewithinourcontrolandfailingtomeetthosewillnaturallyrequirethatwerespondaccordingly.In2007wefinalisedour2015Groupstrategicgoalsandobjectivesandalthoughwedidnx19texpectsmoothsailingallthewaywefeltthatourplansweresufficientlyrobusttomeetour2015financialandoperationaltargets.In2008and2009wenegotiatedwithconsiderablesuccesswhatmanydescribedastheworstcrisisinthehistoryofshippingandwithrecordresultsin2010wehadnoreasontobelievebasisfeedbackorshouldIsaylackofsamethat2011wouldbemateriallydifferent.Youwillrecallthattowardstheendof2010andbeginningof2011wetogetherwithourmajorityshareholderdecidedtoengagewithanumberofinvestmentfirmstoevaluatethepotentialforbringinginanewsponsor.Althoughwedecidedthatthetimewasnx19trightwetookonboardsomeofthevaluablefeedbackreceived.Thefeedbackwasveryencouragingindeedbutitwasclearthatwedidnx19tuseourhighlyvaluablebrandsufficientlytoraiseawarenessofourmanyservicesandcapabilitiesandconsequentlypossiblylosingvaluablerevenueopportunities.Whentherequestsforoperationalandfinancialdetailsstartedtolandonourdesksitbecameevidentthatweinthefuturewillhavearequirementforahigherdegreeofgranularity.Itwasveryencouragingtonotethatourx1cGreenfieldx1dexpansionprogramwashailedasagreatsuccess.Despitethismostlypositivefeedbacktheneedtoensurethatwecontinuedonatrajectorythattrulyreflectedourconsiderablepotentialacrossthegroupneverleftmymind.2011firstquarterwasthefirsttimewhenIfoundmyselfinapositionofseriousdoubtbutontheotherhandhadfaithinourmanagementteamstoturnthingsaround.LittledidIknowthattheturningwouldhavetobedonewithaddedchallengesfromgeopoliticalissuesmacroeconomicmeasuresnotworkingandnaturaldisastersinvariouspartsoftheworld.Anycompanythatfindsitselfinapositionwherealloftheabovenegativescomestogetheratthesametimewillhavetorespondaccordinglytogetthebusinessnotonlybackontrackbutalsotostayontrackdespitewhateverchallengesarecomingourway.InresponseweestablishedduringOctoberlastyearProjectEndeavourwiththeaimtotacklenotonlytheaboveissuesbutalsotoclearlydefinerolesresponsibilityandaccountability.YouwillallhavebeenbriefedaboutProjectEndeavouraswellasreadmypreviouscommentsinthiscolumnandIshallthereforenotgointogreatdetailsabouttheprojectbutleaveittoyourrespectiveLineManagerstobriefyou.WhenyoureadthisarticlethenewSeniorManagementTeamswillhavecompletedtheProjectEndeavourBootCampwiththeobjectivesofCreatingacommonunderstandingoftheneworganizationandasenseofurgencyinimplementingtherequiredchangesDefiningandprioritizing2012initiativesaspartofa2012transformationalroadmapCreatingthefoundationforbuildinganewmanagementteamWhentheaboveobjectiveshavebeenfullyaddressedandimplementedwewillallindividuallybeabletomoveforwardwithclearobjectivesrolesandresponsibilities.DuringMarchitismyintentiontovisitasmanyofyouaspossibleinordertoprovidesomefurtherinformationontheneworganisationaswellasbeavailableforQAsessions.On2April2012ProjectEndeavourphaseonewillbeoverandtheneworganisationwilltakefullresponsibilityfortheGroup.WilltherebeaphasetwoyoumightaskWellthatwilldependonourabilitytosuccessfullyexecuteandtakeownershipandresponsibilitygoingforwardx13ifIfindthatthisisnotthecaseIwillhavenochoicethantocommenceaphasetwo.Ourneworganisationisdesignedtobringthecustomerbackintofullfocusandensurethatwehavecleardemarcationsregardingcommercialandoperationalresponsibility.WewillstrivetowardsincreasedtransparencyviainformationandsmartsoftwaresolutionsandthatiswhyIhavecreatedanewrolereportingintomeaswellasasteeringcommitteeoverseeingandensuringthatProjectHorizonwillbesuccessfullyexecutedx13thesuccessfulcandidatewillbeannouncedintheverynearfuture.IamawarethatthelastsixmonthshavebeenstressfulandcreatedalotofanxietybutithadtobedoneinorderfortheGrouptocontinuetomoveforwardintherightdirection.Since2006wehavetogethercreatedgrowthbeyondourwildestimaginationsandthereisabsolutelynoreasonastowhywecanx19tcontinueonthispath.Iaskthatyouembracethechangesandprovidethenecessarysupporttoallyourcolleagueswhetherinyourterritoryornotandcontinuetoprovidetheexcellentcustomersupportweareknownforacrosstheworld.OnbehalfoftheshareholderstheBoardandmyselfabigthankyouforallyourhardworkanddedication.ClausHyldagerGroupCEOProjectEndeavourchartingourwayforward