May 10, 2019

President and CEO: Nobutoshi Torii

 Dear Shareholders,

 Today, the Company announced its consolidated results for FY 2018, the last year of the three-year Medium-Term Management Plan that began in FY 2016. Our net sales rose 7.0% YOY to ¥592,009 million; operating income is up 18.5% YOY to ¥20,797 million; ordinary income is up 15.0% YOY to ¥19,939 million; and net income attributable to owners of the parent rose 40.8% YOY to ¥9,857 million.

 During the three years, we achieved a certain level of success with coordinated volume expansion measures, increasing both air freight and sea freight volumes. We were able to acquire 700,000 TEUs of business and saw progress in the results of APLL—now in a robust position to provide consistent profits going forward.

 Today, the Company announces its Long-Term Vision and Medium-Term Management Plan for FY2019 to FY2021.

 The concept of the vision is: “Global Top 10 Solution Partner – A Global Brand Born in Japan.” “Global Top 10” means that we aim to be in the top 10 globally for net sales, and for air freight and sea freight volumes. “Born in Japan,” means that we provide service rooted in our Japanese origins, characterized by minute attention to detail and a flexible approach matched to customer needs.

 We have chosen to set long-term numerical targets of ¥1 trillion net sales; ¥50.0 billion operating income; air freight volume of more than 1 million tons; sea freight volumes of more than 1 million TEUs; and the elimination of net interest-bearing debt. There is no specified date that these targets must be achieved. Instead, these targets should compel us to think and work as a unified group—improving our service quality, competitiveness, and the solutions we provide—to become a leading provider that customers can trust.

 The Medium-Term Management Plan designates specific targets and measures for the FY2019-FY2021 period to help achieve this long-term vision, and through this we aim to expand our business scale by concentrating on our core businesses. Numerical targets have been set at net sales of ¥720 billion yen; operating gross profit ratio of 16.4%; air freight volumes of 800,000 tons; and sea freight volumes of 900,000 TEUs. The measures listed include strengthening our business platform, marketing strategy, operations strategy, and APLL’s business strategy.
The elements of this plan include a Group-wide effort to expand the scale of its air freight and sea freight forwarding operations, and merge paths with APLL in order to continue providing a wide variety of logistics services. We will focus on achieving healthy, sustainable increases in corporate value over the medium-to-long term.

 For the fiscal year ending March 31, 2020, we prospect ¥620,000 million as net sales (4.7% up against previous year), operating income ¥22,000 million (5.8% up), ordinary income ¥21,300 million (6.8% up), and ¥10,500 million net income attributable to owners of the parent (6.5% up).

 Your continuous and valuable support should sincerely be appreciated.

May 10, 2019
Nobutoshi Torii, President & CEO