November 11, 2020

President and CEO: Nobutoshi Torii

 Dear Shareholders,

 With regard to results for the second quarter of the fiscal year ending March 31, 2021, the second year of our three-year medium-term management plan, the Company posted net sales 263,718 million JPY(2.9% decrease YOY), operating income 13,008 million JPY(48.5% increase YOY), ordinary income 13,424 million JPY(104.0% increase YOY) , net income attributable to owners of the parent 8,158 million(266.6% increase YOY).

 The Group handled less air and sea freight due to the global spread of COVID-19; in particular, air freight saw a significant decrease in cargo space attributed to the reduction of passenger flights. However, operating income exceeded expectations due to increased freight costs, the resulting rise in sales prices and appropriate management of indirect costs and SGA expenses.

 In addition, today the Company revised its full-year results forecast for fiscal 2020. we have revised the consolidated earnings forecasts for the year ending March 31, 2021. Net sales 524,000 million JPY (3.8% decrease YoY), operating income 24,000 million JPY (21.7% increase YoY), ordinary income 24,000 million JPY (37.7% increase YoY), and net income attributable to owners of the parent company 14,000 million JPY (196.3% increase YoY).

 Looking forward, we are concerned that the social and economic activities in many parts of the world will be once more be affected by the recent second wave of COVID-19, and we expect unpredictable market conditions to continue due to factors such as the declining trade relations between the U.S. and China.

 In these conditions, the Group will strengthen its business platform for sustainable growth, and continue to implement each policy stated in the medium-term management plan. The Group will focus on such policies to increase the amount of air and sea freight handled, develop the skills and capabilities to compete on a larger scale, and continue to fulfill our mission as a freight forwarder essential to supporting the global economy.

 In this new and unpredictable business environment, it becomes even more important to gather information on a daily basis to make swift and accurate decisions, to ensure the cargo demand of our customers can be met, and to conduct centralized procurement by leveraging the advantages of the Group’s size and scale. We will propose solutions to maintain customer supply chains by integrating the knowledge and experience developed by frontline sales and operations staff. Going forward, the Group will continue to work as one to improve competitiveness in the global market and enhance corporate value.Your continuous and valuable support should sincerely be appreciated.

November 11, 2020
Nobutoshi Torii, President & CEO