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NIPPON EXPRESS Group Marked the 80Th Anniversary of Its Founding This Year, and 145 Years Since It Started Business

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NIPPON EXPRESS Group Marked the 80Th Anniversary of Its Founding This Year, and 145 Years Since It Started Business Business Report for the 112th Interim Term From April 1, 2017 to September 30, 2017 010_0643702832912.indd 2 2017/11/30 13:34:22 NIPPON EXPRESS Group marked the 80th anniversary of its founding this year, and 145 years since it started business. Throughout our history, we have contributed to the development of society through transportation. Our commitment to that mission has never changed. We have consistently exercised innovative thinking to find and deliver the best way to serve our customers. On our 80th anniversary, we manifest our commitment to customers in our Corporate Message: “We Find the Way.” In the future as in the past, we will continue to open new roads to bring better possibilities to reality. 1 010_0643702832912.indd 1 2017/11/30 13:34:22 NIPPON EXPRESS Group marked the 80th anniversary of its Our unified strength makes us unique, driving everything we do on the frontline and in the background to deliver founding this year, and 145 years since it started business. unparalleled logistics services. The word “we” speaks to a Throughout our history, we have contributed to the development of complex system of individuals with specialized skills that society through transportation. work together to become an unstoppable force. Our commitment to that mission has never changed. We have consistently exercised innovative thinking to find and deliver Every client, project, and task is different, and sometimes we have to innovate to achieve our goals. Our work demands the best way to serve our customers. exploration and thinking outside the box. It’s how we find the best way. The verb “find” in its present form tells a story of a On our 80th anniversary, we manifest our commitment to customers company willing to dig deeper for the best results. in our Corporate Message: “We Find the Way.” In the future as in the past, we will continue to open new roads to Sure, there are many solutions, but there’s only one best way. We don’t find a way or some way; we find the best way, and bring better possibilities to reality. we do it with passion and perseverance. Our efforts build connections to and between individuals and businesses. 2 010_0643702832912.indd 2 2017/11/30 13:34:22 I would like to take this opportunity to thank our shareholders for their continued support and understanding. I, hereby, present the Business Report for the 112th Interim Term. President and Chief Executive Officer TOP MESSAGE During the second quarter of the fiscal year ending three-year management plan “Nippon Express Group March 31, 2018, the Japanese economy remained Corporate Strategy 2018 – New Sekai-Nittsu –.” on a moderate recovery track as production activities and capital investment by companies showed signs of picking up amid gradual recovery in overseas “Area strategies” economies. In Japan, the Group carried out reorganization of Under these economic conditions, in the field of domestic regional blocks aimed at further logistics, domestic freight saw an increase in strengthening the domestic business and continued transportation demand, including for automobile to promote optimal allocation of management parts and steel, although freight movements resources and organizational integration. Overseas, continued to lack vigor. International freight was the Group pursued growth on the global level by strong overall primarily due to sustained robust concentrating investment of management resources airfreight for electronics components, mainly to Asia. in Southeast Asia where ongoing growth is In this business environment, the Nippon Express anticipated, and expanding freight transactions to Group made united efforts to improve growth and and from Asia. profitability by steadily implementing the key “area strategies” and “functional strategies” under its 3 010_0643702832912.indd 3 2017/11/30 13:34:23 “Functional strategies” Concerning the interim dividend payments for the We worked to strengthen and upgrade core 112th term, it was decided at the Board of Directors businesses through measures such as thoroughly meeting held on October 31, 2017 to pay an interim reinforcing one-stop sales integrating land, sea and dividend of ¥6 per common share with the starting air and account management based on customer- day for payment being December 4, 2017. oriented sales activities, as well as opening the In terms of the economic trend for the second half Logistics Engineering Strategy Division as an of the fiscal year, overseas economies are on a organization for research and development of recovery trend overall. However, in addition to rising cutting-edge technologies in the logistics field. The geopolitical risks, there are many potential areas of Group also worked on strengthening management uncertainty, including the unstable economic outlook infrastructure by launching the new Diversity in China and other emerging countries in Asia and Promotion Group, in an effort to raise awareness and uncertainty with regard to political situations and enhance its working environment with the aim of government policies. In the Japanese economy, being a company where all employees can achieve while domestic demand continues to be driven job satisfaction. mainly by capital investment, the pace of growth in external demand is expected to weaken. As a result of the above, our consolidated In light of these economic trends, transportation business results for the first six months of the 112th demand is expected to remain firm in the logistics term were as follows: field for both domestic and international freight. However, this field as a whole is being called upon to transform into a value creation-oriented industry, Revenues of ¥956.1 billion which includes implementation of work-style reforms (up 5.2% year-on-year) and efforts to secure and nurture human resources, in addition to development of labor-saving logistics Operating income of ¥32.2 billion services that incorporate cutting-edge technologies. (up 31.8% year-on-year) To respond swiftly to such a business environment, the Nippon Express Group will strive for Ordinary income of ¥34.4 billion greater growth and further enhance our corporate (up 22.4% year-on-year) value, with the aim of becoming a truly global logistics company that can compete on the world Profit attributable to owners of parent of stage, in order to meet the expectations of all ¥21.5 billion shareholders. We would be grateful for your (up 17.9% year-on-year) continued understanding and support. December 2017 4 010_0643702832912.indd 4 2017/11/30 13:34:23 Special Feature 80 years of history since our founding 1937 Foundation of Nippon Express Co., Ltd. Nippon Express Company, Ltd. was established on October 1, 1937 in line with the Act on Nippon Express Company, Ltd., as a so-called semi-government (half-public, half-private) transportation Early Showa era enterprise. In 1942, as World War II progressed, the need for a Land transport by centralized approach to transport deepened throughout Japan, horse-drawn wagon and the government combined the transportation companies operating in all the nation’s major cities into what would later become Nippon Express. In 1950, under the Express Business Act, the Company was relaunched as a purely private concern, and, since that time, Nippon Express has expanded and developed its business along with the reconstruction and growth of the Japanese 1970 economy. 1970 Performs services for the 1960 International Exposition in Osaka 5,250 wagons in 1945, with 183 still remaining in 1960 1962 NIPPON EXPRESS U.S.A., INC. is 1950 established 1964 1952 Performs services for the 1940 Dominant share of truck transport Olympic Games in Tokyo Short-haul rail freight transport (50km Delivery of Apollo 8 range) shifted to trucks by order of GHQ 1973 1949 1955 NIPPON EXPRESS (SINGAPORE) Full-scale expansion into marine Start of air transport PTE. LTD. is established transport business 1977 NIPPON EXPRESS (NEDERLAND) B.V. is established 1978 Nippon Express Hawaii, Inc. is Ship parts transported by air established Torch for Olympic torch relay 1958 1979 Assigned the first batch of 1965 NIPPON EXPRESS (H.K.) CO., Japan’s first full automobile carrier Establishes the Security Transport introduced by Nippon Express in 1957 – employees to New York LTD. and NIPPON EXPRESS DO the Dai-ichi Kintsunamaru Business Division BRASIL LTDA. are established 5 010_0643702832912.indd 5 2017/11/30 13:34:25 2010 2010 Establishes “NEX-TEC Shibaura” 2000 Human Resources Center 2011 2001 The Great East Japan Earthquake Number of overseas employees 1990 exceeds 10,000 2005 1990 Performs services for Aichi Expo Nippon Express De Mexico, S.A. 2005 1980 DE C.V is established 1992 Performs emergency transport of relief Global network expands to more 1981 supplies NIPPON EXPRESS (U.K.) LTD. and than 200 operational bases NIPPON EXPRESS (DEUTSCHLAND) 2015 GMBH are established 1994 Major internal reorganization for Shanghai Express International Co., the first time in 53 years 1983 Ltd. and NIPPON EXPRESS NIPPON EXPRESS (BELGIUM) (SHENZHEN) CO., LTD. are established Building a one-stop sales management N.V./S.A. and NIPPON EXPRESS structure spanning land, sea and air CANADA LTD. are established 1995 1984 NIPPON EXPRESS PHILIPPINES 2017 NIPPON EXPRESS (MALAYSIA) CORPORATION is established Nippon Express marks the 80th SDN. BHD. is established anniversary of its founding 1985 The Great Hanshin-Awaji Earthquake NIPPON EXPRESS (AUSTRALIA) 2006 PTY., LTD. and NIPPON EXPRESS FRANCE, S.A.S. are established Nippon Express (St. Petersburg) LLC is established Origin of logo Performs services for International Exposition in Tsukuba 2007 Nippon Express (India) Private Limited is established 2008 Connecting severed lifelines Nippon Express marks the 50th anniversary of its overseas expansion 1997 Historical mark used on pass permits 2009 or as signs for express messenger NIPPON EXPRESS (ZHUHAI) CO., LTD. Renews vehicle paint design 1986 and PT. NITTSU LEMO INDONESIA chiefs since the Edo era.
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