May 13, 2020

President and CEO: Nobutoshi Torii

 Dear Shareholders,

 Today, the Company announced its consolidated results for FY 2019. Our net sales for the current fiscal year decreased 8.0% year-on-year to 544,533 million yen and operating income decreased 5.2% to 19,714 million yen. And because of recording impairment loss on shares of an affiliate accounted for using equity method of 3,342 million yen, ordinary income dropped 12.6% to 17,432 million yen, and net income attributable to owners of the parent fell 52.1% to 4,724 million yen due to recording impairment loss on software in a subsidiary of 4,426 million yen.

 Due to the outbreak of COVID-19, there are obvious signs of a global economic downturn. The outlook remains uncertain even in the global logistics market, and it is likely that our business environment will remain precarious as ever amid sluggish freight movement due to suspended production or the disruption in the supply chain.

 Even in such tense conditions around the world, it is our mission to fully support our customers’ supply chains through emergent transport, to rebuild their supply chains, and to spread technological innovation that benefits society. The KWE group do demonstrate our abilities and fulfill our role in society as a logistics business in order to meet the needs of society, and to expand our business.

 FY2020 has started in a very challenging situation. However, we will persist in our efforts with a clear goal to be “Global Top 10 Solution Partner–A Global Brand Born in Japan,” ; our Long-Term Vision announced in May 2019, and pursue robust business management strategies to boost corporate value in the medium-to-long term.

 The consolidated earnings forecasts and dividend forecasts for the fiscal year ending March 2021 are not disclosed as the uncertain circumstances have made it difficult to forecast earnings reasonably at this point. We will announce reasonable earnings forecasts as soon as they become available.

 We hope that we can rely on ever-greater support for these efforts from our valued shareholders and investors.

May 13, 2020
Nobutoshi Torii, President & CEO