Current Nippon Express and Our Management Plan. President and Chief Executive Officer Masanori Kawai March 2008

Transcription

1 Current Nippon Express and Our Management Plan President and Chief Executive Officer Masanori Kawai March 2008

2 1.Business outline and target 1.Nippon Express Group business outline Nippon Express Group Overseas Japan Asia-Oceania Europe Americas Domestic Transportation International Transportation Sales other services 1

3 1-1.Business outline and our target-overseas business Breakdown of operating income by location for past 4 years 1.Business outline and target (4.4) 100 million yen 422 (2.7) 12 (2.9) 17 (3.9) Americas Europe Asia-Oceania Japan 370 (2.3) 20 (4.6) 24 (4.8) 29 (4.0) 22 (4.5) 361 (2.2) 32 (5.5) 33 (4.2) 410 (2.4) 33 (5.8) 34 (5.2) 2004/ / / /03 45 (4.4) Number in parentheses indicates operating margin 2

4 1.Business outline and target 1-2. Business outline and our target-domestic distribution business Share(%) Notes Railway utilization transportation Railway utilization transportation 42.7 Toward modal shift Non-Charter 10.7 (Pelican-bin) Alliance with Japan Post Heavy haulage Other operations Charter - 62,500 of cargo distribution companies Domestic air freight forwarding Warehousing Charter Non-Charter Marine and harbor transportation - Toward modal shift Warehousing 37.7 (Sum of 21 companies) 2,600,000 m 2 under management as of September end, 2007 Domestic air freight forwarding 27.4 Specialized to B to B Marine and harbor transportation Heavy haulage - Unique technology and facilities Other operations - Expand our value-added service (*)-indicates no official number available 3

5 2.Actions of 2 nd year of our mid-term plan 2. Actions of 2 nd year of our mid-term plan Mid-term plan Actions for current FY 1. Global business Further expansion of international forwarding service Investment in new warehouses Expansion of distribution service in China, Europe and the Americas Expansion to new business areas (India, Russia, and others) 2. 3PL business Continuous active investment in warehousing business Utilization of financing function of Nippon Express Capital Co. 3. Differentiated Products Increased sales of railway container service Increased sales of Ecology Konpo home removal products Expansion of security transport services 4. Small-lot cargo business Preparation of overall restructuring 4

6 A. International forwarding service 2-1.Global business is Asia related 1) Established CNJ World Logistics (JV with China Shipping) (Sep. 07) 2) Strengthen Shanghai related freight service (Utilize Haneda-Shangai freight and ANA&JP) 3) 4) 2-1.Global business Signed basic agreement to establish International Express Business Company with ANA and KWE Launched one-stop marine transport service mixed loading in Singapore for India (Nov. 07) (Dec. 07) (Jan. 08) B. Investment in new warehouse 1) Constructed warehouse in Plzen in Czech by Nippon Express (Deutschland) GMBH (June 07) 2) Construction of warehouse in Chicago and LA by Nippon Express USA (2008) C. Expansion of distribution service in China, Europe and the Americas 1) Launched shuttle truck service between Chicago and Toronto (April 07) 2) 3) Launched round-trip mixed loading service (Northern China-Eastern China- Southern China) Opened Multi logistics center in Guangzhou (Sep. 07) (Jan. 08) D. Expansion to new business areas 1) Established and commercialized Nippon Express (India) PTE by M&A (April 07) 2) Established Nippon Express Russia and opened Moscow branch (July 07) 5

7 2-1.Global business- International air forwarding 2006 IATA(International Air Transport Association) Rankings 2-1.Global business 2nd among air forwarders worldwide 1st among air forwarders in the Asia-Pacific region U.K. Netherlands 4 18 Belgium 5 19 Germany Spain 22 9 France 6 Hong Kong Number of countries 37countries Number of cities 210 cities Number of locations 382 locations Overseas employees Approximately U.S.A. Thailand 9 1 Philippines 2 Malaysia Mexico 12 7 Singapore 1 Indonesia 20 Brazil Rankings of group companies in their respective countries Transaction amount represented by size of circle 6

8 2-1.Global business 2-1.Global business-network in China Haerbin Changchun Shenyang Wulumuqi Beijing Tianjin Dalian Yantai Nippon Express Group in China 36 cities 18 corporations 101 locations (As of Dec ) Chongqing Kunming Chendu Xian Qingdao Xiangfan Wuhan Changsha Dongguan Guangzhou Jiangmen Zhongshan Nanjing Nantong Wuxi Suzhou Huizhou Hong Kong Zhuhai Zhangjiagang Changshu Shanghai Jiaxing Ningbo Hangzhou Fuzhou Xiamen Shenzhen 7

9 2-1.Global business 2-1. Global business-locations in India after agency acquisition Nippon Express India Bangalore 1 locations Delhi 1 location Chennai 2 locations Mumbai 2 locations Kolkata 1 location Pune 1 location Cochin 1 location Hyderabad 1 location Trivandrum 1 location Total 9 cities 11 locations GDP in billion dollar GDP growth in % Number of Japanese companies 328(2006.1) 8

10 2-2. 3PL business PL Business ~ Building Actual investment (for expansion of 3PL business) and major warehouses completed and planning to complete after second half of the current fiscal year million yen Parent Consolidated H H 2008 Place Aisai Minami Kyoto Daisen Ōtake Ōi Type Space ( m2 ) Completion Warehouse for business 23,201 Nov. 07 Warehouse for business 16,358 March 08 Warehouse for business 9,901 May 08 Warehouse for business 9,900 Oct. 08 (Leasing warehouse) 56,810 Nov. 07 9

11 2-3. Products differentiation and expansion 2-3. Differentiated products and expansion Actual figures and actions 4,000 Situation in FY ,000 2,000 1, million yen Railway transport Security transport (2,673) (2,761) (2,948) Q Moving services (2,146) Heavy haulage and costruction Cyclical bottom on SDM Increased sales per order Expansion of CSD users Expansion of Ecology Kompo to throughout Japan Launched Single pack L More trains for Toyota offered (10.22) Cancellation due to earthquake in Niigata 10

12 2-4. Restructuring of small-package delivery business 2-4. Restructuring of small-package delivery business ~Integration of small-package delivery business with Japan Post~ Japan Post HD or Japan Post Investing over 1/3 Investing over 50% Joint venture for small-package business (Planned to establish on Oct :Combined Pelican Express and Yu-Pack, parcels business) Oct Signed basic agreement with Japan Post HD 1, Reviewed and formed comprehensive and strategic relation 2, Integrated both small-package businesses Nov Established Small-package integration division inside Nippon Express April 2008 Plan to sign final agreement of small-package business structure Oct Plan to launch new joint venture for small-package delivery business 11

13 3. Other restructuring of domestic business 3. Additional restructuring of domestic businesses ~Concerns of domestic business following the separation of delivery service business~ 1.Restructuring of business by re-developing company-owned real estate 2.Efficient management and expansion of Arrow-bin 3.Efficient and optimized locations following business restructuring 4.Reinforcement of new business such as dispatching business (Careerroad)and financial business(nippon Express Capital) 12

14 4. 3Q of FY ending March Q of FY ending March 2008 Operating Income YoY 100 million yen Operating income 3Q 08 3Q 07 Up/down (A) Depreci ation Special factors of up/down as rule change/environment change etc. Fuel Road rule FX Sub-total (B) Up/down without special factors A-B Consolidated Parent ( ) Subsidiaries (Round-down below 100 million yen) ( ) Main factors of increased parent operating income compared to previous 2Q Decreased air forwarding revenue, but improved profit by reduced air freight cost Profit contribution by new investment for warehouses Solid result from main businesses, railway and truck transportation 13

15 5. Dividend 5. Dividend About increasing dividend Dividend for FY ending March 2008 will be 10 yen per share adding 2 yen with general dividend million yen 2005/ / / /03 Net income (Consolidated) Net income (Parent) Dividend payout ratio (Consolidated) Dividend payout ratio (Parent) (E) % 14

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