DHL invests US$50 million to develop multi-user hub in Sagamihara, Tokyo. Increases its warehouse space in Japan by 20% with 44,000 sqm facility

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1 invests US$50 million to develop multi-user hub in Sagamihara, Tokyo Increases its warehouse space in Japan by 20% with 44,000 sqm facility Singapore, April 3, , the world s leading logistics pany today announced that its Supply Chain division in Japan will start construction work for its new Sagamihara Logistics Center. Around 5 billion yen (US $ 50 million) will be invested in the development over the next 10 years, strategically located in Sagamihara City, Kanagawa Prefecture. The facility is a stepping stone to further business expansion. With the addition of the facility, Supply Chain will expand its total warehousing space in Japan by approximately 20%. Construction starts in April 2013, with a target pletion date of March The Sagamihara Logistics Center is a multi-user hub facility with the warehousing area of approximately 44,000 sqm (13,000 tsubo). Supply chains in the consumer retail industry, including fashion and apparel, are being more efficient and more globalized amidst growing needs for e-merce, causing businesses to seek advanced expertise, quality, speed and efficiency in logistics services. Supply Chain will use this facility, and apply its global best practices, in-depth know-how for the Japanese market and industry expertise to deliver optimum logistics services, primarily for the consumer retail industry, for further business expansion. The site is close to National Route No.16 and the Sagamihara Interchange of the Keno Expressway (Metropolitan Inter-City Expressway, to be pleted in FY2013 FY2014), offering superior access to Japan's largest mercial zone, the Tokyo metropolitan area, as well as to airports and port facilities. With close proximity to the Ebina Interchange of the Tomei Expressway, the facility is also well-located for convenient distribution to western Japan. It is strategically located to maximize convenience for many customers in Deutsche Post 1

2 the consumer retail sector, including fashion and apparel, as well as the manufacturing sector, which requires efficient access to the metropolitan area and markets in central and western Japan. Jointly developed by Kenedix, Inc. and ITOCHU Corporation, the facility adopts the Build- To-Suit (BTS) approach to allow Supply Chain to provide optimum solutions. Supply Chain is to lease the entire property for 10 years, starting in April Supply Chain North Asia CEO Victor Mok said, "With Asia s influence being more and more evident in the world economy, the consumer retail industry is placing a growing emphasis on conquering the Asian market. This investment reflects 's market superiority and confidence in its future growth potential. will continue to provide services of the world's highest level in various markets." Shuichi Kawamura, President of Supply Chain Japan said, "The consumer retail industry involves fast-paced changes in market demand, and therefore has no time to waste in product introduction. For this reason, it is one of the industries that benefit from the strengths of the Supply Chain, which boasts a global network of the world's largest scale and process under advanced quality control. As a leading pany in 3PL, we will continue to deliver supply chain solutions that go one step ahead of customer needs so as to assist our customers' business and achieve further growth together." Kenedix, Inc. President Taisuke Miyajima said, "Participation in this project has a special significance for us in that it marks the start of a business relationship with a powerful global partner, Supply Chain. We consider planning to work together in reinforcing business operations in Japan and abroad to develop logistics facilities that meet market needs and carry out asset management." Takashi Suzuki, the General Manager of ITOCHU's Construction & Realty Department No.3, stressed the importance of the pany's capital involvement in the project in terms Deutsche Post 2

3 of global strategy, saying, "This is an important investment project that directly and indirectly assists the growth of a pany with a petitive edge, as we actively pursue real estate development and investments in Japan and the rest of Asia. In order to support the advancement of global corporations, we are mitted to making further involvement in the proposal, development and investments in BTS-type logistics facilities." With far-reaching knowledge and experiences in a range of industries, Supply Chain will continue to use cutting-edge IT solutions and logistics know-how to provide services that meet a variety of logistics needs from Japanese customers. - Ends Photo: Artist s rendering of Supply Chain's Sagamihara Logistics Center (Please contact the PR representative for a digital copy of the image.) Sagamihara Logistics Center overview Name Supply Chain Sagamihara Logistics Center Location Nishihashimoto, Midori-ku, Sagamihara-city, Kanagawa Land area 22, m 2 Deutsche Post 3

4 Building area 11, m 2 Total floor area 44, m 2 Structure / Stories Steel-frame (RC foundation) 5-story building Designed by Nippon Steel & Sumikin Engineering Scheduled construction April 2013 mencement Expected construction April 2014 pletion The Logistics pany for the world is the global market leader in the logistics industry and The Logistics pany for the world. mits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network posed of more than 220 countries and territories and about 285,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. accepts its social responsibility by supporting environmental protection, disaster management and education. is part of Deutsche Post. The generated revenue of more than 55 billion euros in For more details of : in Japan Number of employees: Approx Number of vehicles: 1,300 Number of sites: Over 270 (Gateways, offices, service centers, terminals and warehouses) Supply Chain Ltd. Company name: Supply Chain Ltd. : Kita Shinagawa, Shinagawa, Tokyo, Japan President: Shuichi Kawamura Kenedix, Inc. Company name: Kenedix, Inc. : Shinbashi, Minato-ku, Tokyo, Japan Deutsche Post 4

5 President: Taisuke Miyajima ITOCHU Corporation Company name: ITOCHU Corporation : 2-5-1, Kita-Aoyama, Minato-ku, Tokyo, Japan President: Masahiro Okafuji Media Contact: Asia Pacific & EEMEA Corporate Communications and Sustainability Anita Gupta Tel: Fax: Deutsche Post 5