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company 13

  1. 1. Global Logistics Provider Supporting Your Business Growth 2017.8 http://www.nipponexpress.com/
  2. 2. Nippon Express Connects and Moves the World Our Mission Be a Driving Force for Social Development Our Challenge Create New Ideas and Value that Expand the Field of Logistics Our Pride Inspire Trust Every Step of the Way Nippon Express Group Corporate Philosophy Global Logistics Provider Supporting Your Business Growth The world economy and trends now change on a global scale. Today we are living in a world where barriers between domestic and overseas affairs no longer exist. Moves toward globalization and the introduction of information technology are accelerating further, changing even the "speed of human lives and businesses." Furthermore, linkages between supply and demand are now occurring in every corner of the world in real time, with logistics about to rush into a new stage. Nippon Express operates a global network that covers the five key regions of Japan, the Americas and Europe as well as East Asia and South Asia/Oceania with further growth potential. Drawing fully on a wide array of land, sea and air transportation modes, we provide one-stop business solutions as a logistics consultant that connects people and companies across national and regional boundaries. Moreover, we realize the optimization of inventories spread across the world at a global level. As a leading company in the logistics industry, we also have a grave responsibility for conserving the global environment. Nippon Express will press forward for the realization of a sound material-cycle society by the promotion of modal shift, implementation of cooperative collection and operations, development of reusable packing materials as well as through the evolution and development of environment-related businesses such as the introduction of environment-friendly vehicles and "eco.drive" activities, reductions of CO2 emissions and recycling. Since its founding, the Nippon Express Group has employed its logistical strengths to connect people, businesses and regions throughout the world. In so doing, we have continuously supported social development. While our mission never changes, we continuously advance to meet the world's changing needs. Making no compromise in safety and maintaining a deep focus on environmental issues, we continuously strive to deliver innovative solutions at the next frontier of logistics. We will forever take pride in our ability to inspire trust and answer the call of society. Every move we make is aimed at advancing society and bringing an enriched life to future generations. 01 02
  3. 3. NIPPON EXPRESS GROUP CORPORATE STRATEGY 2018 ― New Sekai-Nittsu ― Customers Japanese companies Non-Japanese companies Area Japan Americas Europe East Asia South Asia/ Oceania Offered value(service) Storage/transportation & delivery Forwarding Procurement logistics management Processing/production Commercialdistribution/selling(moneyflow) Supply chain management’ Logistics engineering Numerical goals (Goals to achieve in March, 2019.) Sales Business profit Current net profit International-related project sales ROA (total asset profit rate) Investment plan (for three years) 2,150 billion yen 75 billion yen 45 billion yen 860 billion yen 2.8% 200 billion yen Functionalstrategy Enhance sales capabilities thoroughly Enhance and sophisticate the core business Enhance competitiveness and ensure profitability by strengthening capabilities to procure, develop and sell for global forwarding and logistics projects Enhance group management Thoroughly control management in the group, promoting selection and focus and taking measures with M & A in mind to enhance strategic management resource to try to optimize management resources for growth as a global logistics company in the entire Nippon Express Group Strengthen management foundation Strengthen the entire management foundation to accelerate management decision-making required for a global company and enhance competitiveness on a global level Further enhancement of the Group's CSR management Help solve social challenges and develop a sustainable society by providing a logistics service based on “safety & security” to people worldwide Area strategy NIPPON EXPRESS GROUP CORPORATE STRATEGY 2018 Nippon Express Group’s management goals Japan Establish both “growth” and “profitability” Lead the growth of the Nippon Express Group Overseas Aim to enhance sales capabilities based on customers to achieve global logistics by developing one-stop sales and account management globally “Global logistics” targeted by Nippon Express Group Contribute to our customers’ global development by providing supply chain solutions centering on logistics in countries and regions worldwide. Numericalgoalsbysegment(Goals to achieve in March 2019.) Sales(※) 13,000 1,000 900 1,350 1,050 560 530 4,720 Businessprofit (※) 480 56 38 42 36 17 33 104 Japan Americas Europe East Asia South Asia/Oceania (Unit:100millionyen) ※Values before canceling transactions between segments. Segment Logistics Security transport Heavy goods construction Logistics support This is a “3-year management plan” to cap Nippon Express Group’s management measures started in FY2010. Positioning the Japanese market as one of the major global bases and making domestic operations more profitable, we will actively invest in growing areas in Asia to achieve growth on a global level. 03 04
  4. 4. Nippon Express is able to unify the management of complicated supply chains across countries. We have also significantly reduced costs, lead time and retained stocks. From warehouse operations to forwarding. Nippon Express with global bases is capable of offering a consistent response. We provide customers with a one-stop service from “procurement logistics,” including the procurement of raw materials, manufacturing of products and distribution, to “sales logistics,” to deliver products manufactured or procured. We also propose logistics solutions combining information system developed based on rich experience and knowledge, a network of 678 bases, 267 cities, 42 global nations and international transport service deployed via land, ocean and sky to realize fully-optimized customers’ supply chains. Consolidated logistics strategy bases to Busan. Shortened lead time and significantly reduced logistics costs. For a large mail order service company in Osaka, we conducted major logistics reform by unifying ten scattered logistics bases into a single site in Busan. By placing bases near Japan, we have shortened the total leadtime. We also successfully reduced domestic stocks and storage costs generated from each base overseas. Moreover, we have conducted operations and transport in the same manner as Japan and organized systems to manage products and supply products stably. Nippon Express’ Answer 05 06 Case 1 Reducing the mail order business’s logistics costs Nowadays, more prominent inventories mean we must further refine Logistics Consulting 1 our service and prioritize interaction between people and deliveries. Procurement logistics Company Sales logistics Customers ●An imaginary diagram of entire supply chain management Parts warehouse Manufacturing plant Sales warehouse Logistics center Suppliers of raw materials *The Netherlands:A warehouse of Schiphol Head Office, Nippon Express(Nederland)B.V.
  5. 5. Manufacturer B Manufacturer AManufacturer C Manufacturer D Manufacturer E Manufacturer F Supply destinations such as plants and warehouses Supply destinations such as plants and warehouses Joint delivery to each region Milk run (Joint pickup) Milk run (Joint pickup) Milk run (Joint pickup) Milk run (Joint pickup) Trunk transport (rail containers) Trunk transport (trucks) Joint delivery center Plant ・ ・ ・ Wholesaler Supermarket Nippon Express has fully supported the expansion of a car-related manufacturer in Mexico for all transport modes from construction to production. We introduce our know-how fostered worldwide to various countries and regions. With milk runs linking many parts manufacturers to production bases, we have successfully offered “Nippon Express quality” overseas as well. We have horizontally offered milk run procurement logistics with Nippon Express levels of quality, as developed in Japan, to many countries, including China and Mexico, worldwide. We have also adjusted to the road conditions unique to each country flexibly and set multiple routes simulating all risks. This is to support customers’ safe production with logistics in mind. We have also taken care of shipping for all suppliers, in addition to delivering goods directly to plants. Moreover, we have offered value-added service such as quality checking before introduction to lines. Solving various problems related to “Previo,” a cargo inspection system unique to Mexico, we have minimized unpacking damage caused by inspection. Mexico has a unique customs clearance system whereby registered customs clearing agents inspect the content of all cargo (Previo). This inspection sometimes damages cargo packaging and reduces product value. Accordingly, Nippon Express has become the only foreign company to have established a highly functional logistics base in the San Luis Potosí Bonded Zone and deliver customer products safely and surely by handling and managing customs clearances, including previo, by itself. 08 ●Milk run/joint delivery image diagram Case 2 Support the expansion of a car-related manufacturer into Mexico. 07 A rapidly-industrializing country is one in which Logistics Consulting 2 we can utilize past experience and performance. *Mexico: Mexico City Nippon Express’ Answer
  6. 6. We conduct advanced logistics operations to deliver, keep and manage medical equipment. To “deliver human life,” we can’t afford to make any mistakes. Globally supporting the building of supply chains for pharmaceutical/medical equipment companies from various perspectives such as export and import, storage, management and delivery. The size of artificial joint differs by the millimeter and for logistics, optimally precise operation is required. Case 3 Delivery of artificial joints For an orthopedic operation, two or more artificial joints with dimensions differing by a matter of millimeters to fit to a patient’s body size are shipped. After they are delivered to a hospital, only the one that fits in the patient’s body is used at the operation site and all others are returned. This cycle is being repeated. When handling products used for human bodies, there is no room for error in delivery operations. Ensuring flawless operations, regardless of circumstances, is our mission. 09 10 Using Nippon Express’s “knowledge of logistics” flexibly, we respond to all kinds of requirements for logistics, quality and related laws and regulations. We propose an optimal medical logistics solution meeting customers’ needs such as designing logistics operations considering control requirements set out by laws and offering a WMS (warehouse management system) dedicated to medical operations and logistics adopted for international quality management standards for drugs and medicines. Operations or sites having no margin for error… Logistics Consulting 3 We can meet this conditions with our logistics capabilities. Nippon Express’ Answer
  7. 7. Transport between Cambodia and Vietnam via dedicated trucks without re-shipment is one way in which we are building atransport network in next-generation economic zones as ASEAN In responding early to the global trend of "China Plus One", we are meeting needs and looking further into the future. An era of overconcentration of production bases in China, which has been called the “world’s factory” ended and the trend to shift production bases to ASEAN countries continues. Nippon Express deploys 233 bases and 970,000 ㎡-warehouses in South Asia and Oceania regions, centering on a regional controlling company in Singapore. We also cover South Asia widely with services such as “SS7000,” a cross-border truck transport service connecting the “Kunming-Bangkok Expressway” and the “East-West Economic Corridor.” With through transport without re-shipment between two countries, we have largely reduced the operational time required to handle cargo damage and re-shipments. Transport from Cambodia where economic growth continues, centering on the apparel industry, to Ho Chi Minh, Vietnam that used to center on transport by water, but now has infrastructure including roads and bridges, improved thanks to Japanese ODA takes only about eight hours by truck. The biggest challenge to this transport is re-shipment of containers between trucks from Cambodia and to Vietnam. In response, Nippon Express has achieved transport without re-shipment, having nine trucks with rights of passage for both countries. 11 12 Case 4 Cambodia-Vietnam through transport Global trends are rapidly changing, so we need to look further into the future. Logistics Consulting 4 *In the city of Phnom Penh, Cambodia Cross-border transport Cambodia Marine transport Our CFS Warehouse Ho Chi Minh Port CY Tokyo Port CY Osaka Port CY Tokyo Port CFS Osaka Port CFS Vietnam Japan  ※ No re-shipment at the border required! Truck transport by land Border CUSTOMS ●Cambodia-Vietnam through transport image diagram Hanoi GuangzhouKunming Shanghai Mumbai Chennai Kolkata Dhaka New Delhi Vientiane SavannakhetChiang Mai Ho Chi Minh Da-nang Phnom Pen Bangkok Yangon Kuala Lumpur Jakarta Surabaya Singapore Nippon Express’ Answer
  8. 8. We developed standing equipment to convey wind generation facilities near a mountain’s ridge line. We will meet any needs through precise transport plans and other measures. As the needs for special or precision transport are intensifying, Nippon Express focuses on developing pure transport methods. From the transport of a giant astrometric telescope to the top of a mountain as much as 4,000 meters high and the construction of an oil liquefaction plant that cannot be disassembled in the jungle, to the shipment and installation of large precision equipment to a foreign plant, Nippon Express has challenged a whole series of difficult issues. If there is no road, we make it and if a port is required, we will also make it. The Nippon Express Group proposes an optimal solution meeting customers’ needs, such as the transport of not only heavy goods, but also art pieces and temperature-controlled air freight/maritime shipping with technical capabilities. The construction of ecological wind generation facilities is rapidly expanding. Nippon Express has developed unique standing equipment to convey giant wind turbine blades. While there are many sites suitable for wind generation in mountainousareasinJapan,bladesforwindgeneratorsup to 10 meters long cannot be disassembled for reasons of strength. Therefore it was difficult to construct large wind generation equipment in mountainous areas after transporting the blades through winding mountain roads. Therefore Nippon Express developed “The Blade Tilting Device*” in 2003, which made it possible to transport very long blades on a road that would previously have been impassable by moving them from right to left or up and down flexibly. 13 14 Case 5 Developing a method to transport with turbine blades *Patent No. 4048540 (Acquired as of December 7, 2007)  Formal name: Equipment to convey a deformed lengthy object. No roads for transport? Then why not invent new methods for transport? Logistics Consulting 5 * Aizu Wakamatsu Wind Farm, Fukushima Prefecture Nippon Express’ Answer
  9. 9. 15 16 “Nippon Express’s logistics – A unique through transport service network to connect worldwide in a borderless manner” Nippon Express has built its own borderless transport routes such as SS7000 from Shanghai to Singapore, XB3300 from North America to Mexico and EB3000 from the Netherlands to Moscow. Based on a network of more than 20,000 staff members overseas in 678 bases, 267 cities, 42 countries, we fully support global business. *As of March 31, 2017 Worldwide, Nippon Express will evolve logistics in the global market. Nippon Express’s transport service network to support global business.
  10. 10. The 9,297km railroad line, the longest in the world, connecting Japan and Moscow via Vladivostok. Based on each starting point in China and Germany, the Nippon Express Group conducts through transport to cities in China and Europe. Cross-border railway transport between Europe and China TSR (Trans Siberia Railway) EB3000 (Cross-border transport from the Rotterdam to Moscow.) SS7000(Cross-border transport between Shanghai and Singapore) XB3300(Cross-border transport Canada−the U.S.−Mexico) The needs for high-mix low-volume transport instead of traditional bulk high-volume transport are growing due to changes in the supply chain structure in Russia. EB3000 is a long-distance consolidated truck service connecting the stretch of around 3,000km between the Netherlands (Rotterdam) and Russia (Moscow) by regular runs. Europe area representative : Marie-Bernays-Ring 23A, 41199 Mönchengladbach, GERMANYEurope area East Asia area representative : G11, 11F, Shanghai Mart 2299 West Yan'an Road Shanghai, 200336, CHINAEast Asia area South Asia/Oceania area representative : 5C Toh Guan Road East Singapore 608828(2/M)South Asia / Oceania area Americas area representative : 24-01 44th Road., 14th Floor Long Island City, NY 11101 U.S.A.The Americas area U.S.A. Anchorage Atlanta Austin Boston Charlotte Chicago Cincinnati Cleveland Columbus Dallas Denver Detroit El Paso Honolulu Houston Indianapolis Laredo Los Angeles McAllen Memphis Miami Minneapolis Nashville New Jersey New York Newport News Omaha Orlando,FL Philadelphia Phoenix Pittsburgh Portland Raleigh Rochester Salt Lake City San Antonio San Diego San Francisco San Juan (Puerto Rico) Savannah Seattle St. Louis Tampa Tupelo Washington D.C. MEXICO Aguascalientes Guadalajara Guanajuato Manzanillo Mexico City Monterrey Queretaro Salamanca San Luis Potosi Tijuana BRAZIL Cajamar Campinas Curitiba Manaus Rio de Janeiro Santos Sao Paulo CANADA Calgary Fort Erie Montreal Toronto Vancouver Windsor COLOMBIA Bogota Buenaventura Cali Cartagena ● Borderless Rail This is the first railway cross-border consolidated service offered by a Japanese logistics company for transporting to Mexico (San Luis Potosí) using railway transport from Marion, Ohio, a collective point of delivery for the car-related industry. ● Borderless Truck After collecting cargo from all over the U.S. at Laredo, Texas near the Mexican border, we transport them to San Luis Potosí by truck. Under circumstances where the manufacturing of car makers is being expanded and more and more related parts manufacturers are rapidly entering the market in Mexico, we offer a 3,300km-truck transport service among Canada (Toronto), the U.S. (the Midwest/South) and Mexico (Monterrey). Established a truck transport route of about 7,000km from Shanghai to Singapore via Vietnam, Laos, Thailand and Malaysia. Based on this route, we are expanding a network to connect points in the inland area of the Great Mekong Economic Zone. Legend Nippon Express’s overseas bases Agencies (for both air and ocean shipments) Air shipment agencies Ocean shipment agencies NETHERLANDS Amsterdam Rotterdam Voorschoten U.K. Derby (EastMidlands) Glasgow London Manchester Newcastle Swindon IRELAND Dublin GERMANY Bedburg Dusseldorf Frankfurt Hamburg Hanover Munich Nuremberg Stuttgart AUSTRIA Vienna HUNGARY Budapest CZECH REPUBLIC Prague POLAND Warszawa Wroclaw ROMANIA Timisoara SWITZERLAND Geneva Zurich BELGIUM Antwerp Brussels SPAIN Barcelona Bilbao Madrid PORTUGAL Lisbon Oporto FRANCE Lyon Paris Toulouse ITALY Milan Rome SOUTH AFRICA Johannesburg UNITED ARAB EMIRATES Dubai TURKEY Istanbul RUSSIA Moscow Izhevsk St. Petersburg Togliatti Ulyanovsk Vladivostok Yaroslavl SWEDEN Gothenburg Malmo Stockholm NORWAY Oslo CHINA Beijing(北京) Changchun(長春) Changsha(長沙) Changshu(常熟) Changzhou(常州) Chengdu(成都) Chongqing(重慶) Dalian(大連) Dongguan(東莞) Foshan(仏山) Fuqing(福清) Fuzhou(福州) Guangzhou(広州) Guiyang(貴陽) Hangzhou(杭州) Ha'erbin(哈爾浜) Hefei(合肥) Hengyang(衡陽) Hong Kong(香港) Jiaxing(嘉興) Kunming(昆明) Kunshan(昆山) Lianyungang(連雲港) Nanjing(南京) Nanning(南寧) Nantong(南通) Ningbo(寧波) Pinghu(平湖) Pingxiang(凭祥) Qingdao(青島) Shanghai(上海) Shantou(汕頭) Shaoxing(紹興) Shenyang(瀋陽) Shenzhen(深圳) Suzhou(蘇州) Taicang(太倉) Tianjin(天津) Wenzhou(温州) Wuhan(武漢) Wuxi(無錫) Xiamen(廈門) Xian(西安) Yantai(煙台) Zhengzhou(鄭州) Zhongshan(中山) Zhuhai(珠海) KOREA Changwon Inchon Paju Pusan Seoul Shiheung TAIWAN Chia Yi(嘉義) Hsinchu(新竹) Kaohsiung(高雄) Keelung(基隆) Nankan(南 ) Taichung(台中) Tainan(台南) Taipei(台北) Taoyuan(桃園縣大園郷) SINGAPORE Singapore PAKISTAN Karachi BANGLADESH Dhaka MYANMAR Yangon CAMBODIA Phnom Penh AUSTRALIA Melbourne Sydney NEW ZEALAND Auckland MALAYSIA Ipoh Johor Bahru Kuala Lumpur Kuching Malacca Padang Besar Penang PHILIPPINES Angeles Binan Calamba Cebu Malvar Manila Mariveles Paranaque Rosario Subic THAILAND Ayutthaya Bangkok Chiang Mai Chon Buri Kabinburi Korat Leam Chabang Navanakorn Rayong Songkhla INDONESIA Bali Batam Bukashi Jakarta Merak Semarang Surabaya INDIA Ahmedabad Bangalore Baroda Chandigarh Chennai Cochin Coimbatore Delhi Gandhidham Gurugram Hyderabad Indore Jaipur Jamshedpur Kolkata Krishnapatnam Lucknow Mumbai Nagpur Nashik Neemrana Oragadam Pune Sricity Trivandrum Tuticorin VIETNAM Bien Hoa Da Nang Dong Nai Haiphong Hanoi Ho Chi Minh 17 18 2019
  11. 11. Numerical facts about Nippon Express ■Transport mode & system Nippon Express’s logistics service ■Transport service Commercial warehouse Domestic distribution facilities Overseas warehouse area Support customers’ operations with our nationwide network Truck Transport Environment-friendly service for medium-and long-distance mass transportation Rail Transport Low-cost and long-distance transportation mode that connects the oceans of the world Sea Transport High-speed logistics that accelerates global business operations Air Transport Core bases of logistics that generate the new value for goods Logistics center Nippon Express' accumulated expertise and advanced systems valued for all-around support for worldwide logistics I T From singles to families “Nippon Express for moving” Moving Services Offer a comprehensive and high-quality service with advanced expertise Overseas Moving Services We can undertake all sports of special transportation and installation projects ranging from extra-heavy cargoes to high-technology equipment Heavy machine construction business We are experts in carrying invaluable cultural assets from the past to the future Fine Arts Transportation We provide safe transportation of articles of value with professional security and special-purpose vehicles Security Transport Support any relocation fully, regardless of scale or business type Relocation The Japan National Treasure Exhibition National Treasure Statue of Seishi Bodhisattva (One of two flanking statues for Buddha Amida) Sanzenin, Kyoto 21 22 Number of employees Number of overseas bases Consolidated total Simplified total Overseas employees Total overseas assignments accumulated *As of March 31, 2017 *Conceptual image Number of motor trucks for business Construction/ cargo work vehicles global nations cities About bases About bases About million m2 About million m2 bases About million m2
  12. 12. Support customers’ operations with our nationwide network Possible to deliver with minimal packing without transshipment in transit Transportation of cargoes in bulk and efficient delivery Departing location Collection / sorting Shorten transit time by eliminating relay point ●Realized an efficient delivery system through nationwide networks and overwhelming mobile capabilities ●Transport large or expensive cargo, also exceeding the scope of courier services ●Made-to-order service that meets special transportation needs irrespective of goods to be carried ●The most environment-friendly mode of transportation that generates only one-eight of CO2 emissions by truck transportation ●We have set up shops at almost all container-handling railway stations across Japan to realize speedy transportation and the integrated transportation system for cargo sending and receiving by on-time operations in linkage with truck transportation ●A broad lineup from six-foot containers for small-lot cargoes to 31-foot containers almost with the size of the rear deck of a 10-ton truck We also handle special-purpose vehicles such as freezer trucks and tank trucks. Arriving location Delivery / sorting Departing location Arriving location Truck Transport services Key words for rail logistics ●Conservation of energy ●Reductions in NOx and CO2 emissions ●Precise transportation operations in accordance with train schedules ●Enhanced transportation efficiency by building the information system jointly with Japan Freight Railway Co. ●Store containers at railway stations to enable adjustments of delivery dates ●Avoid concentration of cargo collection during cargo-handling peak hoursContributing to environmental management of companies with the most energy-efficient transportation Transporting a few cargoes in six-foot containers with little wasted space Possible to store cargoes at railway stations up to 10 days,enabling the utilization of any freight railway station as a “small warehouse" Making planned shipments possible through on-schedule operations and the advanced dynamics control system ●The longer the transportation distance, the more economical ●The rate discount system for the return of pallets and other loading devices Cost reductionSpeed StorageEnergy saving Realizing environmental conservation,more efficient logistics and logistics cost reduction Taking Charge of the “Modal Shift" Deliver goods securely, meeting logistical needs for smaller lots and higher frequency. Consolidated transportation “Arrow liners” Chartered transportation Environment-friendly service for medium-and long-distance mass transportation Award of the first prize for the 11-ton truck and trailer categories at the National Truck Driver Competition. The National Truck Driver Competition is an event in which commercial truck drivers in Japan compete in skills and expertise on driving. At the 48th event, held in October 2016, our driver Seiji Hiraoka won first prize in the 11-ton truck category and Takanobu Ishigami did the same in the trailer category. A total of nine of our drivers won higher-ranking prizes. Updated the version of the “rail container NAVI” to make it more convenient. We updated the“rail container NAVI,”a Web system to assist customers using railway containers. A new service, including a map to indicate transport status, a mailing service to inform delivery status and bulk ordering online, were added to meet customers’needs. Truck Transport Rail Transport 23 24
  13. 13. ●Providing long-distance mass transportation in an environment-friendly manner and at low cost ●Handling reciprocal transportation between third countries without going through Japan ●Developing containers on its own in order to meet varied transportation needs ●Realizing next-day delivery across Japan by drawing upon a wide-area service network covering the whole country ●Providing integrated transportation services between Japan and the rest of the world on the strength of a global network of over 1,000 transportation routes ●Providing wide-ranging services to meet varied needs,including customs-clearance service by in-house registered customs specialists ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ● ● Arrow Atlantic (Atlantic Ocean) Caucasus Russia ( TSR= Trans-Siberian Railway) China Central Asia Middle East (sea transport) Europe (sea transport) Eastern Africa Southern Africa Western Africa North America Arrow Atlantic (Atlantic Ocean) Arrow Pacific (Pacific Ocean) Oceania Arrow International departing from and arriving in Japan Arrow International between three countries Provides a global-scale door-to-door transportation service by combining all modes of transportation with marine transportation as the chief means Container yard filled with international cargo Arrow International ULD Intact Transportation Low-cost and long-distance transportation mode that connects the oceans of the world High-speed logistics that accelerates global business operations Nippon Express Departure airport Nippon ExpressAirline Arrival airport Scope of service by Nippon Express Scope of service by Nippon Express Cargo loading by airline Cargo unloading by airline Receipt of cargoDelivery of cargo ULD Intact Service Factory FactoryIn-house facility Cargo unloading by Nippon Express Integrated transportation operations by Nippon Express Cargo loading by Nippon Express In-house facility Conventional service We load and unload cargo at our own CFS (interim storage and cargo-handling sites dedicated to export and import containers). This is a safe and high-quality transportation service that shortens lead time substantially. Sea Transport Air Transport Of all domestic maritime routes, two new vesselsty will be introduced on the Tokyo-Hokkaido route To replace aged vessels“Himawari 1 and““Himawari 2”that have been in service since 2001,“Himawari 8”and “Himawari 9”will get into service in September and December 2017, respectively.The new vessels can load container cargos on the upper deck and environmental and energy-saving measures will be taken for them by employing five energy-saving facilities. An international transport service for drugs for which temperature management is required. “TempSure” series In supply chains from the manufacturing to the supply of drugs, the application of“GDP (Good Distribution Practice) standards to keep the quality of drug”is strictly required worldwide. Nippon Express started providing the“TempSure”temperature management transport service through international air transport in 2010 to support the transport of drugs in wide-ranging temperature zones with enriched lineups of the series. 25 26
  14. 14. ●Holding commercial warehouses covering an area of about 2,900,000 m² in Japan and about 2,990,000 m² overseas ●Added value with a wide array of distribution processing,including packing and price ticketing ●Integrated management of inventory information at a global level using IT solutions Made-to-order service that provides added value ●Offering services in the “Universal Nippon Express" logistics structure ●Exploiting the time-proven,integrated logistics systems ●Providing global supply chain solutions by precise operations Solution system supporting logistics management NEWTON "Komaki GLC (Global Logistics Center)" Final completion in February 2017. About a 3.5 km-drive from the Komaki IC at the border between the Tomei and Meishin Expressways. Also easily accessible from Nagoya Port and Chubu International Airport, this logistics center is an important base to support the growth of the Tokai region's economy with logistics and also the first facility certified by the Ministry of Land, Infrastructure,Transport and Tourism for the “approach with the consolidation of special logistics operation facilities* following the amendment of the Act on Advancement of Integration and Streamlining of Distribution Business in FY2016." “NEWTON,”a system developed to meet customer needs to introduce a warehouse management system more rapidly and economically. It significantly reduced the time and cost of introducing such a system by making“templates by business type” to leverage our know-how. In addition, global support, collaboration with other software, KPI functions and other features have also been enhanced and full-scale operation is already underway. Customer needs Multilingualized Multiple currency- correspondent Security- enhanced Precision mechanical equipment Apparel Medical care Convenience goods Food Machines Mail order Medical equipment Industry standard- correspondent Needs by business type KPI Stock management Work management Service level Cost calculation Extended function Global support Multiple bases support Web/ virtualized Transport/delivery management collaboration NEWTON * About special logistics operation facilities. A special logistics operation facility (e.g. a truck terminal, wholesale market, warehouse or shed) is one located around an expressway IC or cargo station and with facilities to rationalize cargo handling by automating logistical sorting and transportation, information processing systems to streamline receiving/placement of orders and for distribution processing. Using a warehouse management system (WMS) and transport management system (TMS) flexibly, we propose flexible solutions meeting challenges and needs as customers’ logistics partner. REWARDS N-APOLO.Force A global standard warehouse system operated worldwide. Allows for precise and detailed management, location-independent, managing stocks worldwide in a unified manner. A system including not only WMS functions such as stock and location management but also a TMS function supporting the proper delivery of goods. NEWTON A next-generation logistics package system; developed as a new global standard warehouse system replacing existing warehouses and transport management systems. Nippon Express' accumulated expertise and advanced systems valued for all-around support for worldwide logistics IT Site area: 19,775 ㎡ (5,982 tsubo) Total floor area: Warehouse section:30,188 ㎡ (9,132 tsubo) / Office: 1,150 ㎡ (348 tsubo) Building size: Warehouse section constructed with steel: 4 stories / Office: 2 stories Facilities: 3 elevators for cargo/ 2 ventilators / 3 autorators / emergency power- generating system 27 28 * "Tokyo C-NEX" (Koto Ward, Tokyo), our company's largest distribution facility, construction of which was completed in January 2017. Air transport Railway transport Truck Transport Marine transport Users Cloud computing system Stocking Storage Shipment/Distribution Reprocessing Transportation/Distribution Examples of value-added services Examples of value-added services Examples of value-added services Examples of value-added services ■ Quality inspection  ■ Repair/replacement of exterior packaging ■ Accounting for purchases ■ Predetermined data collation ■ Entering data of the expiration date and date of manufacture. ■ Bonding  ■ Management by industry sector ■ VMI ■ Humidity and temperature management ■ Management of hazardous items  ■ Management of valuables ■ Management of returned goods ■ Gift packaging  ■ Price ticket/tag issuance and affixing ■ Assembly work ■ Check and inspection ■ Sorting by store ■ Product inspection ■ Repair ■ Milk run  ■ Cooperative distribution ■ Small-lot distribution ■ Modal shift ■ Transportation of precision mechanical equipment ■ Installation / setting *Conceptual image Core bases of logistics that generate the new value for goodsLogistics center
  15. 15. ●We have the largest-class number of offices available ●Pursue greater satisfaction through rich experiences, diversified transport modes and optimal supplies for moving ●Offer optimal service of the highest quality ●We provide Japanese-quality well-thought-out services with “the Japanese spirit” as our motto ●Our staff has a wealth of experience and reliable techniques to handle your valuable cargo ●As your dependable partner, we extend business support services to your personnel in charge of overseas human resources and general affairs We propose an optimal transport mode based on the quantity of household goods and moving distance and are promoting an environment-friendly modal shift, in which railways, maritime containers and track transport are combined. Convey safety and reliability with a consistent transport service. We have globally deployed our overseas moving business ; offering a secure and assured door-to-door service in collaboration with foreign bases in 42 countries. These bases are also connected through an information network to share information on cargo in moving and customs clearance on a timely basis and streamline the overseas moving service. We joined “FIDI”; a world-class overseas moving trade association and retained the ISO9001 certificate, an international standard for quality management systems. Offer one-stop support for overseas personnel management affairs. We support various solutions to problems as an outsourcer of overseas personnel management affairs. This is a one-stop solution including overseas moving service, such as several procedures for employees assuming overseas assignments to embark for or return from a foreign country, as well as providing information. Offer “safety” for cargo storage when moving to/from a foreign country for overseas assignments. We keep a wide variety of luggage from a single cardboard box to large pieces of furniture.By using the total air-conditioning system,the temperature and humidity are thoroughly controlled. Global mobility service Trunkroom service Focus on high quality NipponExpress’globalnetworksforoverseasmoving. We have joined “FIDI,” a trade organization for overseas moving, with more than 600 company members from about 100 countries and obtained “FAIM,” standards for international movers stipulated by FIDI. In addition, we also maintain ISO 9001 certification, offering a high-quality service for all our customers. To improve the quality of our moving service, we educate and train moving operation staff members and planners at training centers all over Japan. Pursue quality Diversified transport modes The “one-person package” is a package service suitable when one person is moving or for transfers without family. It’s secure and safe, as a special box is used for transport. We offer three kinds of moving plan with uniquely developed (recycled) packaging materials. This helps us reduce waste and accelerate packing time, for faster and more convenient moving. Moving of families Moving of singles Offer a comprehensive and high-quality service with advanced expertise Overseas Moving Services 29 30 From singles to families “Nippon Express for moving”Moving Services
  16. 16. Nippon Express’ project management We streamline moving operations; minimizing any impact on business through proper management, perfect plans and preparation. Civil service Our main relocation destinations The Ministry of Foreign Affairs, the Health, Labour and Welfare Ministry, the Ministry of Education, Culture, Sports, Science and Technology, the office of the Prime Minister, the Supreme Court of Japan, the Ministry of Defense etc. School The University of Tokyo, the Tokyo University of the Arts and other public and private universities. Company Major communication companies, banks, electric companies, manufacturers, broadcasters etc. Hospital The National Cancer Center Japan, university hospitals etc. Others The Tokyo International Airport, the New Tokyo International Airport, laboratories etc. Transportation of wind generation facilities requiring advanced technical capabilities. ●We transport and install ultra-large equipment and facilities such as power and various other plants in every region of the world ●We undertake integrated transportation of liquid crystal and semiconductor manufacturing equipment to meet customer needs for collective installation of production lines at high-tech industrial plants ●We can respond to all sorts of projects with various special-purpose vehicles and equipment, including a transporter with a loading capacity of approximately 11,000 tons ●Support wide-ranging services, from the relocation of office buildings with more than 10,000 users to changes in the office layout ●Support the relocation of civil service, hospitals, schools or similar, too ●Our well experienced planners fully support operations from pre-meeting to the completion of work Advanced technique is required to transport wind generation facilities up to 40-50 meters long, while avoiding obstacles. Nippon Express makes it possible by using trailers (with blade-standing equipment) developed specially for wind generation facilities and careful transport plans prepared by staff members. Bridge transportation at Tokyo International Airport Infrastructure construction work overseas(in Dubai) We achieved a one-stop service with long fostered know-how. We consistently support various operations due to relocation, such as designing a new office layout, a service for keeping documents, disposing of confidential documents and setting up, disposing of and cleaning furniture. Launched a new warehouse in Thailand as a logistics base. We constructed a new warehouse at a major cargo manufacturing hub in Thailand,to meet increasing logistics needs to keep raw materials for heavy goods such as steel and delivery to plants etc.By equipping large-sized cranes,we offer a consistent logistics service, exploiting a good location just 5 km from a port and accessibility to industrial areas. Track record of big projectsOffice relocation Various plant projects in Singapore. Established “NEX GLOBAL ENGINEERING PTE. LTD.” to manage Aim to enhance the construction business of heavy machinery in the South East area, in which demand to install and assemble wind generation and plant facilities and equipment is expected to increase in future. 31 32 Support any relocation fully, regardless of the size or business type Relocation We can undertake all sorts of special transportation and installation projects ranging from extra-heavy cargoes to high-technology equipment Heavy machine construction business
  17. 17. ●We are experts in the made-to-order transportation of works of fine art tailored to their characteristics ●We have earned an international reputation by handling world heritage treasures,including the Venus de Milo ●We ensure the safe storage and quality control of works of fine art in a dedicated warehouse equipped with state-of-the-art devices Reliable transportation system 1964 1965 1974 1985 1994 1999 2001 2002 2003 2005 2007 2008 2009 2010 2011 2013 2014 2015 2016 The Venus de Milo Exhibition The Tutankhamen Exhibition The Mona Lisa Exhibition The National Palace Museum Exhibition The Barnes Collection Exhibition The Liberty Giuding the People (La Liberté guidant le peuple) Exhibition The Prince Shotoku Exhibition The Picasso Exhibition/ Great Nichiren Exhibition The Exhibition of Three Famous Paintings by Millet The Van Gogh Exhibition The Orsay Museum Exhibition The NationalTreasures from Yakushiji-Temple Exhibition The Nalional Treasure Ashura Exhibition/ Egypt Sunken Treasures Exhibition The National Treasures Clay Dolls Exhibition/ Renoir Exhibition The Kukai and Esoteric Buddhist Art Exhibit The Alphonse Mucha Exhibition/ The Mammoth YUKA Exhibition National Treasures of Japan Louvre Museum Exhibition Special Exhibition: Roman Murals of Pompeii, aWorld Heritage Name of major exhibitions Workmen work for the Yakushi Temple, National Treasure Exhibition. Trained workmen in response to a request from the Egypt Antiquities Department. This vehicle is fully equipped with special devices,including an air-conditioning system, air suspension,GPS and alarm devices. Our track record of handling great treasures of the world Special vehicle for fine arts We assure the safe and reliable storage and management of delicate fine arts and antiquities with advanced technologies. Dedicated warehouse for fine arts *“Hercules discovers his baby Telephus.” (From “Special Exhibition: Roman Murals of Pompeii, a World Heritage”)  To protect the work of art, workmen carefully work without a cap or preventing the brim of their caps from hitting the art piece. Money-collecting & delivering service ●We possess cash transport vehicles protected by highly-capable in-house security guards and GPS and other advanced crime-prevention security devices ●Launched in 1965,Nippon Express's security transport service has the largest domestic market share ●We undertake cash transportation between financial institutions and also provide cash collection and distribution services for food service companies and mass market discounters Nippon Express original online Cash Safety Delivery (CSD) service using automated teller machines Theft and loss risks mitigated as Nippon Express becomes responsible for the care and custody of cash at the instant cash is deposited into ATMs Labor-saving in accounting and cash management operations possible through management of data on cash receipts Next-day remittance reduces costs related to sales proceeds Tapping into rich experience in valuable goods transport and Nippon Express’s unique nationwide network, we propose various services to meet customers’ needs. Service for monetary institutions We transport money, marketable securities, checks and so on; traded between the headquarters and branches of a bank, or a bank and the Bank of Japan. We also look after calculation, packing or similar for banknotes and coins upon request from monetary institutions. Nippon Express CSD Center Collection of sales proceeds Transmission of data on cash receipts and disbursements We monitor ATMs around the clock 365 days a year. Transfer request Cash register Outlet A ATM Image of the CSD service Cash deposit Remittance Nippon Express’s bank accountOutlet A’s bank account Advantages of the CSD service We are experts in carrying priceless cultural assets from the past to the future Fine Arts Transportation Security Transport We provide safe transportation of articles of value with professional security and special-purpose vehicles 33 34
  18. 18. Social contribution To Have Nippon Express Earning Respect in Society as a Corporate Citizen We believe that just as individual people have character, companies also have ‘corporate character’. We plan to polish our corporate character, instead of pursuing only business operations, which are equivalent to the "body" of a company. In order to gain recognition and be admired as a good corporate citizen by doing so, we will continue to exert proactive efforts to contribute to society. 35 36 Disaster Support Activities After the Great Hanshin-Awaji Earthquake, the Niigata Chuetsu Offshore Earthquake and the Great East Japan Earthquake, Nippon Express urgently transported relief supplies from across the country to affected areas. In addition, we have supported the delivery of emergency relief goods to areas affected by Ebola hemorrhagic fever and the Nepal earthquake with our intermodal transport system. We will continue to cooperate in international assistance activities for affected areas and offer humanitarian support through logistics. Afforestation Activities These reports on corporate social responsibility (CSR) activities conducted by Nippon Express describe, among other things, our corporate structure for promoting CSR activities, specific activities and data on actual achievements. http://www.nipponexpress.com/about/ csr/ As activities to prevent global warming and  preserve biodiversity, we have set up “Nittsu no mori” (Nittsu’s forest) at three places across Japan, namely, Iidemachi, Yamagata Prefecture, Nichinan-cho, Tottori Prefecture and Izunokuni City, Shizuoka Prefecture, where employees and their families are engaged in activities to grow forests. They engage in afforestation and underbrush trimming and also have exchanges with local people. Traffic Safety Classes Nippon Express is offering traffic safety classes to elementary schools and other educational facilities in local communities to enhance communication with communities, traffic safety and employees’ safety awareness. These classes include the theme “look and experience” to allow students to learn the importance of traffic safety more efficiently without being in listen-only mode. Sports Our five sport clubs, namely a prestigious corporate baseball club that has produced many professional players, a Japanese fencing club, a judo club, a sumo club and a golf club, all play active roles as competitive clubs which have achieved good results. The entire company cheers on these athletes in their matches. Cultural Activities Nippon Express jointly sponsors children’s song concerts with the sisters Saori Yuki and Sachiko Yasuda, cooperating in bringing beautiful Japanese songs to the children of the 21st century. The sisters also visit junior high schools across the nation to organize concerts in school gymnasiums or auditoriums in collaboration with students, teachers and parents. SupportforatempleschoolinMyanmar There are free schools operated by temples and volunteers for children that can’t afford to go to a public school in Myanmar. Nippon Express donated funds for the construction of a temple school with four classrooms with an area of 293 ㎡ in Yangon in 2015. 275 students now work hard at the school daily. We will continue to help develop human resources and spur on economic growth by supporting school education and so on. CSR Reports
  19. 19. Environment friendliness For tomorrow’s global environment. Nippon Express continues striving for “earth-friendly logistics”. The impact of logistics to “convey things” on the environment is greater than expected. Nippon Express has an obligation to be the first to take measures against environmental issues as a global company. We also aim to bequeath a beautiful Earth for the future. “Modal shift,” an activity equating to a shift to transport means with lower environmental burden. “Modal shift” means a shift to transport means with a lower environmental burden. With this in mind, Nippon Express has significantly reduced CO2 emission and costs by shifting means for bulk transport between main cities to railways or marine vessels. In Japan, we established a consistent system between sending cargo out and back based on needs or schedules, setting up a counter at container handling stations nationwide. We also developed an international transport product using the “Eco-liner,” a 31-feet railway container to allow for consistent transport between 10-ton trucks and trains or vessels, using a container of the same size as the back of the truck. Promotion of eco-drive in Asia The CDM (Clean Development Mechanism) is a system to achieve part of the Japanese reduction goal of CO2 emissions by introducing and popularizing excellent low carbon technology and other functions in developing countries. In 2012, our eco-drive effort in Malaysia was registered to the UN CDM for the first time as a logistics company and the activities are currently continued in the JCM (Joint Crediting Mechanism, a credit system between two countries) efforts in Vietnam. Active introduction of environment-friendly vehicles Nippon Express is actively introducing environment-friendly vehicles, such as hybrid vehicles, compressed natural gas (CNG) vehicles, electric vehicles and liquefied petroleum gas (LPG) vehicles, to complement its efforts toward a model shift. As a solution partner underpinning the logistics operations of companies, Nippon Express is striving for environmental management by pushing for reductions of CO2 emissions and lower pollution. Launch of a container-matching center Marine containers used for exports and imports become a social problem, as trailers to return or pick up containers have caused chronic traffic jams in surrounding areas because they are for one-way use. In addition, the need to operate containers more efficiently has intensified, with costs and the environment in mind. Therefore Nippon Express opened a container-matching center and set routes to collect and deliver cargo based on the time of pickup/delivery, the location conditions and other factors. Consequently, we allowed the round-trip use of containers by proposing optimal transport combining various customers. Full container Delivery Unloading work Loading work for container Full container Installation work Import Export ●Transport form combining round use Natural gas vehicle (CNG vehicle) Natural gas vehicle (CNG vehicle) Bifuel Digital tachograph Hybrid car LPG vehicle Progress of opening safety eco-driving routes in Asia (March, 2017) ●Modal shift’s conceptual diagram DeliveryPickup Railway transport Marine transport Guangzhou Hanoi Da-nang Kuala Lumpur Singapore Bangkok Ho Chi Minh In action 37 38
  20. 20. *As of May 1, 2017 Head Office Field Offices Domestic Network ORGANIZATION Network Global Network *For overseas cities where we have a base, see pages 17-20. For more details of domestic network, check this. For more details of the domestic network, check this. Business Development Division Customers Service Center Marketing Strategy Division Sales Promotion Division Sales Strategy Division Government Business Division Resource Recycling Sales Division Fukushima Reconstruction Office Diversity Promotion Group Security Transport Business Division Electronic Commerce Business Division Fine Arts Business Division Heavy Haulage & Construction Business Division Domestic Region Global Region Sub-branch/Office Network Transport Planning Division Truck Transport Division Railway Forwarding Division Moving Sales Division Global Business Administration Division Global Logistics Solution Division Global Forwarding Planning & Development Division Public Relations & Advertising Division Business Profit Improvement Promotion Division General Affairs & Labor Division Finance & Accounting Division Business Division Nittsu Group University Logistics Engineering Strategy Division Group Management Division Audit Division Corporate Planning Division CSR Division GlobalSalesStrategy Headquarters InternationalBusiness Headquarters GeneralMeetingofShareholders CorporateAuditors BoardofAuditors Information Technology Promotion Division NetworkTransportBusiness PromotionHeadquarters Administrative Headquarters Sub-branch/Office Branch Sub-branch/Office Branch Sub-branch/Office Branch Sub-branch/Office Branch Chairman President BoardofDirectors 39 40 NIPPON EXPRESS (RUSSIA) LLC NEX LOGISTICS EUROPE GMBH NIPPON EXPRESS (U.K.) LTD. NIPPON EXPRESS (IRELAND) LTD. NIPPON EXPRESS (NEDERLAND) B.V. NIPPON EXPRESS EURO CARGO B.V. NIPPON EXPRESS (BELGIUM) N.V./S.A. NIPPON EXPRESS FRANCE, S.A.S. NIPPON EXPRESS (ITALIA), S.R.L. NIPPON EXPRESS (SCHWEIZ) AG NIPPON EXPRESS DE ESPANA, S.A. Franco Vago, S.P.A. NIPPON EXPRESS PORTUGAL S.A. NIPPON EXPRESS (MIDDLE EAST) L.L.C. NIPPON EXPRESS (ISTANBUL) GLOBAL LOGISTICS A.S. East Asia Block NIPPON EXPRESS (CHINA) CO., LTD. NIPPON EXPRESS (H.K.) CO., LTD. NIPPON EXPRESS (SUZHOU) CO., LTD. NIPPON EXPRESS (SHENZHEN) CO., LTD. NIPPON EXPRESS (ZHUHAI) CO., LTD. NIPPON EXPRESS (SOUTH CHINA) CO., LTD. NIPPON EXPRESS CARGO SERVICE (SHENZHEN) CO., LTD. NIPPON EXPRESS GLOBAL LOGISTICS (SHANGHAI) CO., LTD. NIPPON EXPRESS (XIAMEN) CO., LTD. NIPPON EXPRESS (XIAN) CO., LTD. APC Asia Pacific Cargo (H.K.) LTD. Guangzhou Nani Trading Beacon International Express Corp. Nippon Express Global SCM (Shanghai) Co., Ltd. SHANGHAI E-TECHNOLOGY CO., LTD. NIPPON EXPRESS KOREA CO., LTD. NIPPON EXPRESS (TAIWAN) CO., LTD. South Asia/Oceania Block NIPPON EXPRESS (SOUTH ASIA & OCEANIA) PTE. LTD. NIPPON EXPRESS (SINGAPORE) PTE. LTD. NEX GLOBAL ENGINEERING PTE. LTD. NIPPON EXPRESS (MALAYSIA) SDN. BHD. NITTSU TRANSPORT SERVICE (MALAYSIA) SDN. BHD. NIPPON EXPRESS PHILIPPINES CORPORATION NEP LOGISTICS, INC. PT. NIPPON EXPRESS INDONESIA PT. NITTSU LEMO INDONESIA LOGISTIK PT. NEX LOGISTICS INDONESIA NIPPON EXPRESS (BANGLADESH) LTD. Hokkaido Block Sapporo Sapporo Air Service Branch Asahikawa Kitami Kushiro Obihiro Tohoku Block Sendai Sendai Air Service Branch Aomori Morioka Akita Yamagata koriyama Kanto/Koshinetsu Block Air Freight Business Marine Transport Business Logistics Business Branch Automotive Business Branch Yokohama International Transport Tokyo Overseas Removals Tokyo Metropolitan District Yokohama Chiba Gunma Utsunomiya Niigata Nagano Chubu Block Nagoya Automotive Logistics Nagoya Air Service Nagoya International Transport Shizuoka Kanazawa Toyama Kansai Block Osaka Global Logistics Nagoya Air Service Nagoya International Transport Kobe Kyoto Chugoku/Shikoku Block Hiroshima Hiroshima Air Service Matsue Tottori Okayama Shimonoseki Shikoku Shikoku Air Service Kyushu Block Fukuoka Fukuoka Air Service Fukuoka Shipping Oita Kumamoto Nagasaki Miyazaki Kagoshima Security Transport Business Division Kanto Security Transport Chubu Security Transport Kansai Security Transport Fine Arts Business Division Kanto Fine Arts Transport Chubu Fine Arts Transport Kansai Fine Arts Transport Heavy Haulage & Construction Business Division Hokkaido Heavy Haulage & Construction Tohoku Heavy Haulage & Construction Kanto Heavy Haulage & Construction Tsurumi Heavy Haulage & Construction Chubu Heavy Haulage & Construction Kansai Heavy Haulage & Construction Chugoku Heavy Haulage & Construction Shikoku Heavy Haulage & Construction Kyushu Heavy Haulage & Construction The Americas Block NIPPON EXPRESS U.S.A., INC. NIPPON EXPRESS U.S.A., INC. Illinois Branch NEX TRANSPORT, INC. ASSOCIATED GLOBAL SYSTEMS, INC (A G S) NIPPON EXPRESS TRAVEL USA, INC. NIPPON EXPRESS CANADA LTD. NIPPON EXPRESS DO BRAZIL LTDA. NIPPON EXPRESS DE MEXICO, S.A. DE C.V. NEX GLOBAL LOGISTICS DE MEXICO, S.A. DE C.V. Europe Block NIPPON EXPRESS EUROPE GMBH NIPPON EXPRESS (DEUTSCHLAND) GMBH NIPPON EXPRESS (CAMBODIA) CO., LTD. NIPPON EXPRESS (THAILAND) CO., LTD. NITTSU LOGISTICS (THAILAND) CO., LTD. NIPPON EXPRESS ENGINEERING (THAILAND) CO., LTD. NIPPON EXPRESS (VIETNAM) CO., LTD. NIPPON EXPRESS ENGINEERING (VIETNAM) CO., LTD. NIPPON EXPRESS (MYANMAR) CO., LTD. NITTSU LOGISTICS MYANMAR CO., LTD. NIPPON EXPRESS (INDIA) PRIVATE LIMITED NITTSU LOGISTICS (INDIA) PRIVATE LIMITED NIPPON EXPRESS (AUSTRALIA) PTY., LTD. NIPPON EXPRESS (NEW ZEALAND) LTD.
  21. 21. (Unit: ¥ bil.) *As of March 31, 2017 1,155.7 83.8 79.2 101.7 70.3 54.7 46.9 403.9 △132.3 1,864.3 Japan The Americas Europe East Asia South Asia & Oceania Security Transport Heavy Haulage and Construction Logistics Support Adjustment (elimination or corporate) Total Logistics Sales Japan 62.0% Logistics Support 21.7% South Asia & Oceania 3.8% East Asia 5.5% Europe 4.3% The Americas 4.5% Security Transportation 2.9% Heavy Haulage and Construction 2.5% Total 1,864,301 (Million Yen) 【As of March, 2017】 *Percentage adjustments are excluded from this graph HISTORY 1872 1875 1928 1937 1941∼1945 1950 1951 1955 1957 1958 1959 1961 1962 1964 1965 1970 1972 1973 1974 1977 1978 1981 1985 1989 1990 1991 1992 1993 Nippon Express’s predecessor company Riku-un Moto Kaisha established Company name changed to Naikoku Tsu-un Kabushiki Gaisha Company name changed to Kokusai Tsu-un Kabushiki Gaisha Nippon Express Company,Ltd., established by pooling the assets of Kokusai Tsu-un and six other companies. Consolidation of all major Japanese transportation companies into Nippon Express and start of modern-day operations Listed on stock exchange and reestablished as a private company Test transport of containers conducted in Nippon Express style. Fine art work business began. Travel services and domestic air-freight forwarding began International air-freight forwarding began NewYorkRepresentativeOfficeopened TransportHistoryArchives(currentlyMuseumofLogistics)opened Transport using 300-ton trailers began Nippon Express Scholarship Society established Nippon Express USA,Inc. established Sea transport between Tokyo and Muroran begun. Performed services for the Summer Olympics in Tokyo. The "Venus de Milo" transported. Security Transport Business Division established Nittsu Gakuen and the University of Transportation Economics opened Performed services for the International Exposition in Osaka Performed services for the Winter Olympics in Sapporo. Nippon Express (Singapore) Pte. Ltd., established The "Mona Lisa" transported. Nippon Express (Nederland) established Relocation work performed for Narita Airport. Nippon Express (U.K) Ltd., and Nippon Express (Deutschland) GmbH established Performed services for the Tsukuba Expo. Nippon Express’s own two-ton rail containers introduced Tanshin Pack small volume moving service launched Performed services for the International Flower and Greenery Exposition in Osaka Relocation work performed for the Tokyo Metropolitan Government. Super Pelican service launched Global network expanded to more than 200 operational bases Recyclable moving/packing materials developed 1994 1997 1998 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 2013 2014 2015 2016 2017 Shanghai Express International Co.,Ltd., established Recycle transportation business established Museum of Logistics opened The number of maritime employees reached 10,000. Transportation related to the Soccer World Cup performed. Number of low-pollution vehicles introduced 1,000. The head office functions relocated to the new building for the headquarters built in the Shiodome area. “Ecology Konpo” home removal product launched Inaugural Nittsu Group Nationwide Contest for Drivers and Forklift Operators Compliance Department established Digital tachograph installed in sales vehicles Group-wide Performed services for the Expo 2005 Aichi Japan. Nippon Express (St.Petersburg) LLC established “Ecology Konpo” is awarded the “Minister’s Prize,the Ministry of Land, Infrastructure, Transport and Tourism” at the Eco Products Awards Domestic moving products renewed. Acquired a transportation business in India, absorbing it as a subsidiary named Nippon Express (India) Nippon Express marked the 50th anniversary of its founding Awarded both the Logistics Environment Award and the Logistics Enlightenment Awareness Enlightenment Award Refurbished vehicle paint design. The "statue of Ashura," a national treasure of Kofuku Temple, transported. “NEX-TEC Shibaura”, Nittsu Group Human Resource Development Center started operation Courier business transferred to Japan Post Service Co., Ltd. NIPPON EXPRESS (SOUTH ASIA & OCEANIA) PTE. LTD. established in Singapore. Franco Vago S.p.A., an Italian logistics company, acquired. Nittsu NEC Logistics, Ltd. established. NIPPON EXPRESS (CAMBODIA) CO., LTD. Cambodia established. Foreign bases exceeded 500 points. Nittsu Panasonic Logistics Co., Ltd. established. NIPPON EXPRESS ENGINEERING (VIETNAM) CO., LTD. established. NIPPON EXPRESS (MYANMAR) CO., LTD. established. Foreign employees exceeded 20,000. NITTSU LOGISTICS MYANMAR COMPANY LIMITED established. Wanbishi Archives Co., Ltd. acquired. NEX GLOBAL ENGINEERING PTE. LTD. established in Singapore. Tokyo C-NEX opened. The World Baseball Classic co-sponsored. Company Name : Headquarters : Established : Paid-in Capital : Sales : Ordinary Profit : CashDividendperSharefortheYear: Nippon Express Company, Ltd. 105-8322 Higashi-shimbashi 1-9-3, Minato-ku, Tokyo TEL:03-6251-1111 October 1, 1937(predecessor company established in 1872) 70,175 million yen 1,043.756 billion yen (March 2017) 37.731 billion yen (March 2017) 11.00 yen(As of March, 2017) Capital Adequacy Ratio : Number of Employees : Branches: Facilities & Equipment : Principal Fields of Business : 36.8%(As of March, 2017) 32,008 (as of March 31,2017) 347 branches (as of May1,2017) 18,369 vehicles / 4,915 construction & cargo work vehicles / 2,900,000m² commercial warehouse Road freight transportation / freight transportation / ocean freight transportation / marine and harbor transportation / railway freight transportation / warehousing / security/ haulage , construction and installation of heavy equipment and related businesses / construction /travel / customs clearance, etc. Company Outline Sales by Segment (consolidated) Introduction of group companies Logistics Support: 15 companies NITTSU REAL ESTATE CO., LTD. Meets needs to design and supervise various facilities with the Nippon Express Group’s network and information capability. NITTSU TRANSPORT CO., LTD. Offers a service linked to Nippon Express’ cargo tracking information system, including a nationwide delivery network for trucks. NITTSU RESEARCH INSTITUTE AND CONSULTING, INC. Supports customers, conducting consulting research specialized for logistics. 日通・パナソニック ロジスティクス株式会社 NITTSU PANASONIC LOGISTICS CO., LTD. Helps boost society and people’s happiness by creating the innovation of global electronics logistics as a customer partner. CAREERROAD CO., LTD. Supports customers’ company competitiveness strongly by implementing logistics outsourcing based on sound experience. NITTSU DRIVING SCHOOL. Established to foster safer drivers. Prioritizes not only driving technique but also the spirit of respecting human life higher than others. N I T T S U D R I V I N G S C H O O L Logistics: 254 companies NIPPON EXPRESS TRAVEL CO., LTD. Supports wide-ranging business, including foreign and domestic group tour business, event convention business, arrangements for overseas business trips, attending guests from overseas etc. NIPPON SHIPPING CO., LTD. Pursues bulk shipment with special vessels by material and consistent transport between ocean and land by high-speed container ships at low cost. NITTSU NEC LOGISTICS, LTD. Pursues service to meet customers’ expectations as an advanced logistics company in the ICT industry to help create a people- and earth-friendly and rich society. WANBISHI ARCHIVES CO., LTD. Supports customers’ “efforts to secure safety for and the efficient use of information assets” as a leading company of information asset management. NIPPON EXPRESS CAPITAL CO., LTD. Handles the logistics finance business combining logistics, IT and monetary functions as well as group finance business to promote the efficiency of funds in the Nippon Express Group. Offers a wide service with mobility and technology development capabilities based on logistics and using a nationwide network. NITTSU SHOJI CO., LTD. 41 42

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