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Company Profile

Offering comprehensive support for efficient management from logistical perspectives as the customer’s best partner is business as usual at Daiichi Freight System

Profile History

Company name Capitalization March 1941 Yamagata Godo Freight Truck, Inc. established Daiichi Freight System Inc. ¥100 million April 1942 Fifteen companies merge, and the resulting company Net assets of ¥21.3 billion is named Yamagata Prefecture Daiichi Freight Trucking Date of establishment (as of period ended in March 2017) Co., Ltd. March 15, 1941 January 1951 Linehaul operations between Sendai and Tokyo begin Offices September Company renamed Daiichi Freight Trucking Co., Ltd. Representative 68 September 1954 Business network extended throughout Miyagi Yukinori Mutoh, President and Chief Executive Officer Number of employees Prefecture 4,250 (as of period ended in March 2017) September 1959 Business network extended throughout Akita Prefecture Sales volume November Linehaul operations between Osaka and Tokyo begin ¥69.1 billion June 1980 Computers at all branches are brought online (as of period ended in March 2017) June 1984 Van operations begin Business lines February 1987 Business headquarters established ● Freight trucking March 1988 Start of comprehensive IT system operations ● Freight forwarding May 1989 Start of second phase of online systems ● Consignment design, operation and management of logistics systems August Start of online freight system (POS [parcel online ● Air freight agency system]) ● Customs clearing July 1990 Company renamed Daiichi Freight System, Inc. ● Warehousing December 1991 Telephone and fax services begin Packing and packaging ● November 1992 Start of Support I dispatch support system ● Security services May 1997 Third-party logistics operations start ● Industrial and ordinary waste processing May 1999 Joint deliveries of medical supplies begin ● Staffing services ● Nonlife insurance agency April 2002 Aikawa Distribution Center (now relocated to Atsugi) ● Data processing services acquires ISO 90001 certification ● Real estate leasing August 2006 Participation in JITBOX charters begins ● Retailing of food, medical care products and sundries, as well as related items, etc. April 2009 Business headquarters relocates to Shinonome in Koto-ku, Tokyo Main banks November 2010 Three thousand beech trees are planted at Sosei no Mitsubishi UFJ Trust and Banking Corporation; Mizuho Bank, Ltd.; Mori to help preserve the environment Bank of Tokyo-Mitsubishi UFJ, Ltd.; Kirayaka Bank, Ltd.; March 2011 Corporate colors created Yamagata Bank, Ltd. May A Chinese subsidiary, Shanghai Tri-Wall Daiichi Head Office Logistics, Co., Ltd., is established 2-1-20 Suwamachi, Yamagata City, Yamagata Prefecture 990-0033 April 2012 Joint venture established with Tonami Holdings Co., Phone: 023-623-1414 (main switchboard) Ltd. and Kurume Transportation Co., Ltd. October DT Holdings, Inc. established Fax: 023-623-1424 Head Office October 2013 Joint line haul services with Kurume Transportation Business Headquarters start 3F KDX Toyosu Grand Square, 1-7-12 Shinonome, Koto-ku, Tokyo 135-0062 April 2014 Representative office in Hanoi, Vietnam established Phone: 03-6204-0151 (main switchboard) November Second-class consigned freight forwarding operations Fax: 03-6204-0158 (international marine transport) begin Company joins Japan International Freight Forwarders Customer Center 1-7-30 Shinonome, Koto-ku, Tokyo 135-0062 Association Inc. Phone: 03-3531-1414 July 2016 Navitrans Co., Ltd. becomes our subsidiary Fax: 03-3531-2986 Email: [email protected] Business Headquarters

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Network

Offering business solutions driven by our philosophy of putting the customer first, we have expanded our community networks based on ease of mind and trust

Hokkaido Region Kanto Region Chubu Region International Hokkaido Ibaraki Prefecture Niigata Prefecture Hanoi Representative Office Sapporo Branch (Kiyota-ku, Sapporo City) Tsuchiura Branch (Tsuchiura City) Niigata Branch (Higashi-ku, Niigata City) (Socialist Republic of Vietnam) Mito Branch (Hitachinaka City) Joetsu Sales Office (Joetsu City) Northeast Region Tochigi Prefecture Nagaoka Branch (Nagaoka City) Partner companies Aomori Prefecture Utsunomiya Branch (Utsunomiya City) Sanjo Branch (Sanjo City) Hokkaido Region Aomori Branch (Aomori City) Ashikaga Branch (Ashikaga City) Nagano Prefecture Sasson Jidosha Unyu Co., Ltd. Hachinohe Branch (Hachinohe City) Oyama Branch (Oyama City) Nagano Branch (Nagano City) Hakodate Unso Co., Ltd. Hirosaki Sales Office (Hirosaki City) Nasu Branch (Nasumachi, Nasu District) Matsumoto Branch (Matsumoto City) Hokuriku Region Iwate Prefecture Gunma Prefecture Shizuoka Prefecture Tonami Transportation Co., Ltd. Morioka Branch (Yahabacho, Shiwa District) Takasaki Branch (Takasaki City) Shizuoka Branch (Suruga-ku, Shizuoka City) Chugoku Region Kitakami Branch (Kitakami City) Saitama Prefecture Hamamatsu Branch (Higashi-ku, Hamamatsu City) Okayamaken Freight Transportation Co., Ltd. Ichinoseki Sales Office (Ichinoseki City) Yashio Branch (Yashio City) Fuji Branch (Fuji City) Shikoku Region Kamaishi Sales Office (Kamaishi City) Kurihashi Branch (Kazo City) Shikoku Meitetsu Transportation Co., Ltd. Miyagi Prefecture Omiya Branch (Iwatsuki-ku, Saitama City) Branch (Komaki City) Shikoku Unyu Co., Ltd. Sendai-Higashi Branch (Wakabayashi-ku, Iruma Branch (Iruma City) -Nishi Branch ( Town, Ama District) Kyushu Region Sendai City) Kumagaya Branch (Kumagaya City) Nagoya Minami Sales Office (Minami-ku, Nagoya City) Kurume Transportation Co., Ltd. Shiogama Annex (Shiogama City) Chiba Prefecture Branch (Toyokawa City) Toll Express Japan Co., Ltd. Sendai-Minami Branch (Natori City) Chiba Branch (Yotsukaido City) Furukawa Branch (Osaki City) Tokyo Kinki Region Ishinomaki Sales Office (Ishinomaki City) Tokyo Branch (Koto-ku) Shiga Prefecture Akita Prefecture Keihin Branch (Ota-ku) Shiga Branch (Konan City) Akita Branch (Akita City) Itabashi Branch (Itabashi-ku) Kyoto Prefecture Akita-Kennan Branch (Yuzawa City) Kanagawa Prefecture Kyoto Branch (Yawata City) Noshiro Sales Office (Noshiro City) Yokohama Branch (Asahi-ku, Yokohama City) Osaka Prefecture Odate Branch (Odate City) Atsugi Branch (Aikawamachi, Aiko District) Kita-Osaka Branch (Ibaraki City) Kisakata Branch (Nikaho City) Atsugi Branch No. 2 (Aikawamachi, Aiko District) Kadoma Branch (Kadoma City) Yamagata Prefecture Yokohama-Minami Branch (Kanazawa-ku, Osaka Branch (Higashi-Osaka City) Yamagata Branch (Yamagata City) Yokohama City) Minami-Osaka Branch (Mihara-ku, Sakai City) Yonezawa Branch (Yonezawa City) Hyogo Prefecture Nagai Branch (Nagai City) Hyogo Branch (Kato City) Tendo Branch (Tendo City) Amagasaki Branch (Amagasaki City) Sagae Annex (Sagae City) Shinjo Branch (Shinjo City) Shonai Branch (Mikawamachi, Higashi-Tagawa District) Fukushima Prefecture Koriyama Branch (Koriyama City) Fukushima Branch (Fukushima City) Aizu-Wakamatsu Branch (Aizu-Wakamatsu City) Iwaki Branch (Iwaki City)

NET WORK

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Special Consolidated Shipping

We have a solid reputation for services that meticulously and flexibly fulfill customer specifications

Special Consolidated Shipping

We sort and deliver the valuable cargo our customers entrust to us by destination at Small-lot shipments each center. This makes shipping more efficient and less expensive compared to Shipping in small lots is convenient and easy because reliable, speedy pickups and individual shipments. deliveries are done using special containers and vehicles.

Regularly scheduled shipments Chilled shipments We pick up anywhere, at any time, in any amount according to the customer’s We offer a reliable service in partnership with Japan Post, using their refrigerated requirements. We provide a range of services, including deliveries on specified dates Yu-Pack service for refrigerated shipments. and at specified times.

Cash-on-delivery shipping We collect payments when the merchandise is delivered for our department stores, mail order and online retailing customers. We manage customer payment slip numbers online.

Medical supply shipments We provide dedicated joint medical supply shipping services in the six Tohoku prefectures, using a cross-docking scheme to deliver products from nationwide medical supply manufacturers to wholesalers around the Tohoku area at fixed times. Wholesaler consignees whose shipments were previously delivered piecemeal are now able to aggregate their shipments and boost their customer satisfaction levels.

Special freight consolidation terminal

Working with a forklift One of our transport trucks used for terminal shipments

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Other Kinds of Transport

We offer high-quality transport options and services that accommodate customer requests quickly, safely and reliably

International Freight Transport (forwarding) Air Transport We undertake the full range of trading-related tasks related to imports and exports. We provide lightning-fast transport through our combined air network and meticu- Using our bonded warehouse in Yamagata, and depending on the location where lously constructed ground network. We deliver all kinds of items—from fresh food international freight is handled, we provide a variety of services related to exports, products to fashion wear, documents, news film, works of art and high-tech storage and transport. Please also consult us about our door-to-door transport products—with our failsafe service system. services between Japan and other countries. Transport for Moving House and Relocating Offices JITBOX Charter Service Our specialized staff handles every detail related to packing, shipping and installation The JITBOX charter service is a new type of charter delivery service offered in for everything from moving to a new home to major office relocations. single-box increments. Valuable freight is protected inside the sturdy steel frames of roll box pallets. We handle frequent and small-lot deliveries with charter transport Transport with Specialized Vehicles deliveries in units of 1.8 m3 and less than 600 kg. We securely transport the required We furnish specialized vehicles and shipping services for all kinds of customer items at the required times and in the required amounts. requirements and contents, including petroleum, liquefied gas, cash, securities, meat and cement. Charter Transport We deliver direct to the destination via charter vehicle, without transshipment or consolidation with cargo from other customers. There are also cases when single vehicles make stops at several locations for parts procurement pickups. We provide vehicle models to suit our customer requirements, and pick up and deliver at the designated times. This service is appropriate for products that should not be consoli- dated with other cargo.

Air transport for speedy handling Charter transport for direct deliveries to customers

Transport security personnel provide a secure management system Tanker truck deliveries

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Third-Party Logistics (3PL)

Providing everything from comprehensive, low-cost transportation and deliveries to management that matches customer requirements

Revolutionary Logistics Contracting Distribution Centers and Warehouses

We assist customers by devising totally optimized logistics tailored to their require- Hokkaido Fukushima Prefecture Kanagawa Prefecture ments. We provide support with the wide-ranging warehouse management system Sapporo Distribution Center Koriyama Center Atsugi Distribution Center expertise that we have developed over many years and our company’s core special Aomori Prefecture Koriyama Center No. 2 Aikawa Distribution Center consolidated shipping (common carrier) business providing everything from Aomori Warehouse Gunma Prefecture Nagano Prefecture procurement logistics to yard logistics and final retail distribution deliveries. Iwate Prefecture Maebashi Distribution Center Matsumoto Distribution Center Morioka Distribution Center Ibaraki Prefecture Shizuoka Prefecture One-stop services Miyagi Prefecture Tsuchiura Warehouse Shizuoka Warehouse After observing a customer’s overall logistics, we devise a supply chain manage- Sendai Distribution Center Saitama Prefecture Aichi Prefecture ment-oriented, totally optimized logistics plan, and strive to cut distribution-related Sendai-Higashi Warehouse Kumagaya Distribution Center Marusanai Distribution Center costs. We also devise logistics that can serve as a strategic tool to generate new Yamagata Prefecture Omiya Distribution Center Marusanai Order Center profits. Higashine Distribution Center Omiya Distribution Center No. 2 Osaka Prefecture Denroku Distribution Center Iruma Distribution Center Sakuracraypas-Kansai Center Distribution centers Japan Chain Terminal Chiba Prefecture Hyogo Prefecture When making transport and delivery arrangements, we naturally employ simulations Distribution Center Chiba Distribution Center Hyogo Warehouse to extrapolate on optimal logistics bases (warehouses). We operate distribution Yamagata International Cargo Center Tokyo centers and provide personnel as needed according to higher or lower workloads. Sagae Warehouse Autobacs Seven Center Individual customers can manage inventory using the warehouse management Yonezawa Warehouse Ryobi Center system we develop.

Order acceptance operations We handle order acceptance operations for customers in parallel with our distribu- tion center operations, providing a full range of order-taking services, including What We Ship | Clients We Serve receiving and inputting orders and answering inventory inquiries from sales person- nel. Our service covers distribution from upstream to downstream. This allows our Cosmetics, pharmaceuticals, chemical wholesalers, industrial tape manufacturers, customers to focus human resources on marketing operations and product develop- home appliances, big-box home appliance retailers, clothing, foodstuffs, lubricants, ment, which increases their competitiveness. bean-based confectioneries, miso paste, soy milk, perfume materials, playground equipment, liquor, building materials, stationery, automotive parts Distribution processing Work related to deliveries from warehouses has become more complex as orders rise for multiple kinds of products, in small lots, and in greater frequency. We respond to wide-ranging customer requirements with a menu that combines distribution processing—such as storage, inspection and order picking—with deliveries as well as data services.

Omiya Distribution Center

Warehousing Order picking operation

Sorting Sendai-Higashi Warehouse Daiichi Freight System Inc.

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Daiichi Freight System CSR

We engage in diverse efforts as a corporate citizen with the goals of bringing about an affluent society and a beautiful Earth

Safety Efforts Giving Back to Society

G Mark program for evaluating the safety of motor truck transportation Seeing-eye dogs operations There are reportedly around 8,000 people in Japan who need seeing-eye dogs, but The Japan Trucking Association awards “G mark” certification to individual places of currently only 1,070 dogs in active service. Our company has been supporting business after rigorous evaluations involving three types of ratings: status of compli- seeing-eye dog training programs as a corporate member to ensure that these dogs ance with safety regulations, status related to accidents and violations, and the can be trained and serve the community. degree of enthusiasm in pursuing safety efforts. We are working to get all of our places of business G-Mark certified. (Sixty-seven of our places of business have been Assisting the Special Olympics certified as of March 2017.) Special Olympics is an international sports organization that helps people with intellectual disabilities participate in society through ongoing sports training and Environment-Related Efforts competitions where they can demonstrate their skills throughout the year. The World Games take place every two years, alternating between summer and winter. They are Adopting environmentally friendly, low-emission vehicles also held in Japan. Our company transports special equipment used in the domestic In 2000, we adopted low-emission vehicles that run on liquefied natural gas (LNG), games. and hybrid vehicles that use diesel engines and batteries in 2006. We operate a total of 176 vehicles throughout the company—43 LNG and 133 hybrid vehicles.

Reducing CO2 with “eco-tires” Starting in 2003, we jointly developed the Eco Value Pack system with Bridgestone Corporation as part of our efforts to conserve energy and reduce the load on drivers.

Promoting environmentally friendly driving We promote environmentally friendly driving by conducting quarterly environmen- tally friendly driving campaigns and environment-related training for drivers.

Using biodiesel As part of our efforts to promote recycling, we collect waste tempura oil from participating shops and refine it into biodiesel fuel for use on a trial basis. We began using this biodiesel in six two-ton trucks from 2005, and have expanded that to twelve vehicles. Our goal is to make biodiesel one percent of all the fuel we use.

Acquiring “green management” certification “Green management” certification refers to the certification and registration of enterprises that undertake more than a specified level of environmental efforts. This is based on a manual for the promotion of green management and includes certifica- tion screening. The Foundation for Promoting Personal Mobility and Ecological Transportation is the certifying organization. We have been seeking this certification as part of our efforts to preserve the environment, and will continue to make our efforts even more effective. (Twenty-four of our places of business have been certified as of March 2017.)

Tree-planting efforts The problem of CO2—the main cause of global warming—is also a big issue for our business. We planted three thousand beech trees, symbols of our abundant natural surround- ings, on 1.3 hectares of national forest land in Yamanobemachi in the Higashi-Muraya- ma district of Yamagata Prefecture. This was the start of our efforts to nurture what we have named Sosei no Mori (the Forest of Creation) over the next five decades. We are creating what will be an abundant green forest with refreshing breezes fifty years on, as well as taking steps to foster an era focused on the environment.

Tree-planting activities at Sosei no Mori in Yamanobemachi, Higashi-Murayama district, Yamagata Prefecture

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Support Systems

We have developed data communication systems for speedy support anywhere and anytime

Customer Center Shipping Support Services

Our customer interface quickly provides information about freight. Electronic data interchange (EDI) service Our EDI service ensures smooth shipments thanks to various types of data exchange Regarding freight between our servers and those of our customers. Please also consult us about Current status of shipped cargo shipping details, invoice and freight tracking data, which make post-shipping management much simpler. Freight rates Rates for entrusted freight Denzou web-based shipping support system Customers can use our Denzou web-based shipping support system to quickly and Lead times easily issue shipping invoices and labels, simplifying their shipping operations. Number of days required for delivery Features Collection centers ● Customers can issue shipping invoices and delivery notes from their PCs and Information about the nearest places of business printers (basically, we lend label printers) ● We assign customers individual IDs and passwords to prevent the illicit use of their Inquiries about completed deliveries data by others Confirmation of receipt stamps and so on ● Freight tracking inquiries are easy ● Our carbonless A4-size shipping invoice forms are environmentally friendly ● We also handle shipping data uploads (with certain file formats and other require- ments)

Internet Services

Website Our website provides our company profile as well as information on our places of business, business lines and personnel recruiting. We accept email inquiries. http://www.daiichi-kamotsu.co.jp/

Freight tracking inquiries Information about cargo status is provided via online database searches using reference numbers.

PCs: Click on “Freight tracking inquiries” on our website http://www.daiichi-kamotsu.co.jp/chase/contact_num/contact_num_index.html Denzou login screen

Smart devices: http://www.daiichi-kamotsu.co.jp/m/m_index.html

Denzou shipping data input screen

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