Aiming to be a True “Global Logistics Partner” We want to continue to be a corporate group that provides reliable service and customer satisfaction to customers all over the world and aims for a truly abundant future. Providing Logistics Services Tailored to Each Customer around the Globe We value the corporate culture that KWE has maintained since its inception. This culture includes the ability to think on our feet and take action, the ability to handle situations with persistence and passion, and a pioneering spirit that combines a positive attitude with speed. We aim to express our “customer-first” orientation by creating new businesses to address customers’ needs. Under our Five Regional Management System, KWE serves as an indispensable partner to its customers; more than 9,000 employees worldwide propose and provide the best logistics solutions for each customer’s needs. We will continue to work hard and take on new challenges all over the world in order to provide high-quality service that makes customers rely on and appreciate KWE. KWE’s Five Regional Management System Japan The Americas Corporate Philosophy Europe, Middle East & Africa We at Kintetsu World Express, Inc. shall create new values and optimal environments KWE Group Southeast Asia through our provision of cargo logistics services in order to contribute to the development of East Asia & Oceania a global community together with our clients, shareholders and employees. Contents Services & Strength Global Logistics Partner 02 Forwarding 02 Logistics 04 Ocean 06 China 08 Emerging Markets 10 Global Network 12 Business Lines 14 Service Framework 16 CSR 18 Corporate Data, History 20 Visit the KWE Website 21 Global Network Services & Strength Forwarding Forwarding Using our Global Five Regional Management System to Provide the Broadest Possible Forwarding Services Ever since KWE’s founding, international airfreight forwarding has been our core business. In addition to the semiconductors, electronic components, and other electronic products that have traditionally been our main cargo, we are now actively expanding the types of cargo that we handle to include more automotive-related products, healthcare items (medical and pharmaceutical), machine tools and construction machinery, and aircraft-related products, etc. Another of our strengths is our ability to offer high added-value services that make the most of our specialized forwarding know-how in areas like transport of semiconductor production machinery and temperature-controlled freight. By using the KWE Group’s overall strength as efficiently as possible, we intend to continue offering a wide range of services like these. Logistics Ocean China Business Lines Service Framework CSR Corporate Data Emerging Markets 1 Transport Services that Make Good Use of KWE’s Global Network 2 Broad Range of Items Forwarded 3 ULD Intact Delivery Service Protects Customers’ Valuable Merchandise 4 High-quality Customs Clearance as Part of One-Stop Forwarding Strength Strength 1 Transport Services that Make Good Use of KWE’s Global Network KWE makes use of its advanced global information system to offer high-quality services through its network of 308 directly operated business bases located in 194 cities in 32 countries other than Japan. In recent years, as manufacturing has become increasingly globalized, there is a growing market for offshore, or tripartite business involving one country where orders are placed, another where cargo is dispatched, and a third where the cargo is delivered. Strength 3 ULD Intact Delivery Service Protects Customers’ Valuable Merchandise KWE sorts the airfreight export cargo that it receives from customers by destination, and attaches each batch to one of KWE’s own ULD (unit load devices) before handing it over to an airline. This allows maximum protection from damage, including water damage. Advantages of KWE’s ULD Intact Delivery Service Prevents damage to freight KWE’s Network Advanced Global Information System Very safe KWE takes responsibility for the entire transport process. We can provide far safer and faster service compared to previous ULD services, whereby ULD buildup and breakdown operations took place at an airport’s bonded storage facility. More rapid transport in and out Because freight does not pass through an airport’s bonded storage facility, it can be retrieved more quickly and the lead time until delivery is reduced. Assurance that freight will be loaded onto airplane; less chance that freight will be offloaded or split Prevents freight from being left at the airport. Strength 2 Broad Range of Items Forwarded The types of cargo change globally in accordance with industrial and economic trends. KWE intends to handle all types of freight by using the most appropriate types of transport. Main Items Transported Electronics Electronic components, semiconductor-related products (semiconductors and production equipment), digital household appliances, computers and peripherals, mobile phones and liquid crystal-related products Strength 4 High-quality Customs Clearance as Part of One-Stop Forwarding One of the advantages of KWE’s international airfreight forwarding services is that we provide not just transport, but also high-quality customs clearance services at the departure and the destination ports, so customers can trust us to deliver their freight door-to-door reliably to the final destination. Automotive-related items Auto parts (knockdown components, electrical components, repair parts, etc.), auto accessories (car navigation and car audio systems, etc.), prototype vehicles, tires Healthcare and chemical items Medical equipment and instruments, pharmaceuticals, cosmetics, chemicals Other cargo Machine tools and construction machinery, robots, luxury brand merchandise (apparel, accessories, bags, etc.), aircraft-related items, plant-related freight, wine, thoroughbred racehorses 04 02 Kintetsu KintetsuWorld WorldExpress, Express,Inc. Inc. Kintetsu World Express, Inc. 03 Global Network Services & Strength Logistics Forwarding Providing High-Quality, Advanced Logistics Services Many companies have been introducing supply chain management (SCM), and their logistics-related demands are becoming more sophisticated and diverse. KWE combines 181 distribution facilities worldwide and an IT system equaled by very few of our competitors in order to provide high-quality logistics services that meet our customers’ needs. As we aim to be a true global logistics partner, we believe that our mission is to work with customers to design optimal distribution methods, and then to implement those methods. Logistics Ocean China Business Lines CSR Service Framework Corporate Data Emerging Markets 1 Advanced, Customized Logistics Services 2 Strong Support from Cutting-Edge, Strategic Distribution Bases 3 High-Quality Worldwide Logistics Services that Handle Diverse Cargo 4 The Ability to Offer Supply Chain Management Solutions Based on Thorough Assessment of a Client’s Existing Situation Strength Strength 1 In our 3PL (third-party logistics) business, we provide high-level solutions for diverse problems. Examples of solutions Logistics consulting PO (Purchase Order) management Inventory control management Assembly works Call center functions Reverse logistics (RMA): Return Material Authorization Cross-dock operations VMI (Vendor Managed Inventory) Transport/forwarding management Project management Product inspection Strength 2 Healthcare Logistics In recent years, we have been increasing our handling of medical equipment and instruments, pharmaceuticals, cosmetics, and related fields. We obtained licenses necessary for handling these types of merchandise, and we provide storage, labeling, wrapping and other services primarily for products imported from overseas. We have created a very solid framework for this business, including KWE’s own system of product tracing. Strong Support from Cutting-Edge, Strategic Distribution Bases Distribution bases equipped with cutting-edge facilities support the extremely high reliability of our logistics services. Example: No. 4 Baraki Terminal (Chiba, Japan) Advanced, intelligent facility equipped with global information system Services provided include storage, all types of distribution processing, and bonded and other distribution Features include air-conditioning facilities, antistatic floors and dust control, earthquake resistance, and 24-hour security Certified for quality (ISO9001), TAPA Class A Ability to handle healthcare products (licensed to manufacture medical equipment, pharmaceuticals, and cosmetics, and to sell and rent medical devices that require high-level management); certified for ISO13485 Strength 3 4 Strength Advanced, Customized Logistics Services The Ability to Offer Supply Chain Management Solutions Based on Thorough Assessment of a Client’s Existing Situation After getting a clear picture of the overall flow of a customer’s supply chain, KWE analyzes and assesses the chain’s management and logistics in relation to the various streams of commercial distribution involved. We then make the best of KWE’s global IT infrastructures and worldwide service network to support optimization of the customer’s supply chain logistics in each country around the world. Steps in the Adoption of a KWE Solution KWE organizes and implements project management and offers related services including study and analysis of a client’s existing situation, and design, proposal, implementation and even maintenance of business models. We make full use of our abundant global network of service locations, logistics bases and IT systems to support the construction of global supply chain logistics on behalf of our customers. Step 1 Step 2 Step 3 Step 4 Step 5 Set up theme Study and analyze Test and verify problems Offer a proposal Start operation Based on preliminary interviews, determine a theme or themes that address the problems that a client currently faces. Study the existing situation by gathering data and interviewing relevant parties, etc., then analyze the information that has been collected. Consider solutions for the hypothesis, and compare the client’s logistics operations against KWE’s service level benchmarks for each industry in order to optimize operations; propose improvement measures. Once the client has signed a contract, launch a project aimed at implementing the proposed measures and take responsibility for ensuring that they are fully implemented. In addition, determine points that require ongoing management and implement maintenance at regular intervals. Compare the results of analysis with the themes established in Step 1; test and verify the problems and issues to be resolved, and establish hypothesis. KWE Solutions 4PL 3PL PO finance (VMI finance) PO management Call centers Nonresident inventory management Proxy inspection/ Pre-delivery inspection VMI High-Quality Worldwide Logistics Services that Handle Diverse Cargo KWE provides high-quality logistics services in many major world cities. We handle a wide range of products, including electronic goods, automotive products, clothing and fashion accessories, aircraft parts, pharmaceutical products and medical equipment. We design and implement optimal solutions based on a good grasp of the particular characteristics of the diverse items that we handle. RMA Value added service for logistics Warehouse management/ Inventory control Warehousing Services Management of transport containers (Sky Cubes) and pallets Buyer’s consolidation JIT Cross dock Transport Services Measuring CO2 emissions International transport, customs clearance, delivery/ Track & Trace Global Logistics Systems (inventory information/ in & out information/ transport information/ purchase order information/ packing list information/ documentation Ordering Detroit, U.S.A. 04 Kintetsu KintetsuWorld WorldExpress, Express,Inc. Inc. Incheon, South Korea Shanghai, China Johannesburg, South Africa Singapore Amsterdam, Netherlands Procurement Production Inventories Sales Reverse logistics (Returns and recalls) Global Supply Chain Logistics Kintetsu World Express, Inc. 05 Global Network Services & Strength Ocean Forwarding The Same Meticulous KWE Service, Also by Sea Transport modes have become more diverse and ocean freight forwarding demand has grown due to developments such as the spread of SCM and the introduction of high-speed ferries. KWE provides the same meticulous service by sea as it does by air. We also offer buyer’s consolidation and comprehensive services such as door-to-door support for the establishment of overseas production bases, including transport and installation of equipment. In the future, we intend to make better-than-ever use of our existing strengths, enhance our ocean forwarding peripheral services, and combine them with airfreight forwarding and logistics in order to provide customers with optimal ocean forwarding services. Logistics Ocean China Business Lines Service Framework CSR Corporate Data Emerging Markets 1 Meticulous Forwarding of Factory Equipment and Specialized Freight 2 Buyer’s Consolidation Service 3 “Hot Consolidation Service” 4 Global Expansion of LCL Service Strength Strength 1 Strength Meticulous Forwarding of Factory Equipment and Specialized Freight We apply the know-how that we acquired through our meticulous airfreight forwarding services in order to transport factory equipment and offer specialized freight forwarding. For example, we move ultra-precise equipment out of a clean room in a liquid crystal panel factory or semiconductor plant in Japan, and provide seamless transport service all the way to the clean room of an overseas factory. Throughout the time of transport, we re-create the clean room environment using a specially equipped large truck that can maintain constant temperature and humidity and guard the cargo from vibration and impact. In recent years, we have been getting more orders for transporting specialized freight, including equipment and materials related to various events such as international sporting events, musical productions, and museum exhibits. We work together with KWE’s airfreight forwarding division, taking advantage of our ability to offer finely tuned services offered at the same level as our airfreight forwarding services. The high-quality services we provide to our customers’ satisfaction have received acclaim from many fields. Specialized vehicles for transporting large-scale Transporting wind power generating precision machinery Strength 2 Customer Final destination PO Supplier A KWE departure point Advantages of Our “Hot Consolidation Service” Quality assurance Lead time reduction •1 CFS cut-off date is one day earlier than normal •2 Freight can be collected on the CFS cut-off date •4 Direct operation by KWE prevents damage to freight •5 Freight is collected by KWE’s own trucks •3 The delivery date to the customer after the arrival in Japan is at least one day earlier than before 4 Global Expansion of LCL Service KWE offers its own LCL (Less than Container Load) consolidated forwarding service as one of its core businesses. Under the “Blue Horizon” brand, we make use of our global service network to cover the world’s major cities. In addition, we offer door-to-door added-value services that combine transport with other logistics functions. KWE provides its own CFS handling at major cargo origin ports, giving customers peace of mind concerning damage prevention and security. KWE arrival point Supplier B Supplier C Shipment information Buyer's consolidation Port of origin PO Tracing Shipment status is monitored by communicating with suppliers Kintetsu KintetsuWorld WorldExpress, Express,Inc. Inc. Container load manifest Shipment information KWE warehouse 04 06 Demand for high-speed, consolidated ocean transport service from China to Japan has been growing year by year. KWE offers “Hot Consolidation Service” that reduces transport time by up to three days compared to regular consolidated ocean transport. Some customers use this service as an alternative to shipment by air. We currently offer twice-weekly high-speed shipments from Hong Kong and from Shanghai, bound for Tokyo and Osaka. Strength PO data “Hot Consolidation Service” equipment Buyer’s Consolidation Service Buyer’s consolidation is a service that allows retailers to bundle products purchased from various manufacturers in China or other Asian countries into a single shipment at the port of lading for ocean shipment. KWE offers its customers optimal service by using its own infrastructure in combination with ocean and airfreight transport services. Merchandise is collected at the port of lading, where KWE staff monitor shipments based on order forms received from clients. We take responsibility for the entire process, from receiving goods in our own warehouses, exporting and clearing goods through customs, to delivering them in the destination country. 3 Receiving Goods are received Export Goods are loaded in containers and shipped Container load manifest Destination port Lading Arrival Issuance of bill of Customs clearance lading and container and delivery load manifest A web-based booking system Shipping schedules updated on our website Kintetsu World Express, Inc. 07 Global Network Services & Strength China Forwarding KWE’s Pioneering Services in China China’s economy is growing markedly. KWE was quick to note the magnitude and future promise of that growth, and began investing in the Chinese market ahead of the competitors. Customers in this market are actively engaged in production and require safe and reliable freight forwarding services in what is known as “the world’s largest consumer market.” As demand for distribution and logistics services grows larger and more diverse, KWE strives to beat the competition in China, as it does elsewhere, by creating new services that offer each customer optimal solutions for its distribution needs. Logistics Ocean China Business Lines Service Framework CSR Corporate Data Emerging Markets 1 One of the Biggest Networks in the Industry 2 Active Development of Bonded Logistics Services 3 High-Quality, One-Stop Service —Full Logistics/Domestic Trucking Services 4 Rapid Airfreight Forwarding Services Strength Strength 1 Strength One of the Biggest Networks in the Industry We have actively built our network in line with customers’ needs, not only in coastal areas but in the nation’s interior as well. As of March 31, 2011, we had 17 subsidiaries operating 112 locations in 46 cities. We intend to continue expanding our service network in accordance with customers’ business trends, including in the interior of the country, which has been attracting attention recently. KWE’s Network in China Harbin Urumqi Changchun To the Americas Beijing Dalian Huhhot Active Development of Bonded Logistics Services In 1994, KWE established its first subsidiary on the Chinese mainland, in Shenzhen. Ever since, we have remained ahead of our competitors in actively building and enhancing logistics services in China’s bonded areas and bonded logistics parks. In January 2011, we began operating in the free trade zone adjacent to Shanghai Pudong International Airport, which is the biggest gateway to China. Currently, KWE has 10 subsidiaries providing bonded logistics services in China. We intend to focus more than ever on bonded logistics business, which is expected to generate high demand into the future. We also intend to take steps to maintain KWE’s reputation for specializing in bonded logistics. In addition to air and ocean freight forwarding services, we have been focusing on enhancing our domestic logistics services and trucking network in China. We operate specialized logistics companies equipped with distribution facilities in Shenzhen, Shanghai, Dalian, Suzhou, Xiamen, Yantai and Zhong Shan, and also have created an organic fusion of international forwarding and logistics. We have established our own domestic trucking network and operate regular consolidated transport routes within China. Many of our trucks are equipped with GPS so that we can quickly determine the location of freight at any given time. We aim to use this network to provide even higher quality one-stop service. To Europe Tianjin Shijiazhuang Yinchuan 2 High-Quality, One-Stop Service —Full Logistics/Domestic Trucking Services Shenyang Taiyuan Strength 3 Lanzhou Jinan Xian Chengdu Chongqing Production base Yantai Qingdao Huangdao Lianyungang KWE warehouse Logistics services Transport services within China Zhengzhou Yangzhou Nantong Kunshan Nanjing Suzhou Hefei Wuxi Shanghai Ningbo Wuhan Component production base Transport services (airfreight, ocean freight / high-speed ferries) Bonded logistics services Yantai warehouse Dalian warehouse Shanghai warehouse Shenzhen warehouse VMI KWE VMI warehouse Hangzhou Nanchang Wenzhou Changsha Component production base Fuzhou Kunming Xiamen Nanning Guangzhou Shenzhen Dongguan Zhuhai Zhong Shan Yantian Subsidiaries Hong Kong Offices Strength 4 Rapid Airfreight Forwarding Services Our “Shanghai 24 Express” service delivers cargo in the greater Shanghai area within 24 hours of pickup in Japan, while “Shanghai 12 Express” does the same within 12 hours of pickup. We offer similar express service to Hong Kong and Guangzhou. Because KWE handles every step from airfreight forwarding from Japan to customs clearance and delivery, we can promptly notify the client when delivery is complete. Shanghai Pudong Airport Free Trade Zone 04 08 Kintetsu KintetsuWorld WorldExpress, Express,Inc. Inc. Kintetsu World Express, Inc. 09 Global Network Services & Strength Emerging Markets Forwarding Providing Full Support for Clients in Emerging Countries As economies become more global, economic development in the emerging markets is progressing at an accelerated pace. KWE is actively developing services for customers who have started doing business in these areas, mainly by offering distribution solutions. We have begun concrete projects in Russia, Central/Eastern Europe, India, Vietnam and Saudi Arabia. We were particularly quick to establish local subsidiaries in Russia and India ahead of our competitors, in the late 1990s. Ever since, we have continued to accumulate expertise in the distribution business in these areas. We intend to continue to proactively enhance our service infrastructure in emerging markets in order to be able to meet our customers’ needs. Logistics Ocean China Business Lines Service Framework CSR Corporate Data Emerging Markets 1 Service Network in Russia and Central/Eastern Europe 2 Enhanced Our Own Service Network in India 3 Expanded Services in Vietnam and Bangladesh 4 Moving into Saudi Arabia Strength Strength 1 Strength Service Network in Russia and Central/Eastern Europe Since establishing a local subsidiary in Russia in 1995, we have been steadily accumulating expertise in distribution, and currently have offices in Moscow and St. Petersburg. We also operate a trucking service connecting European production bases with the Russian market, and offer GPS-based cargo tracking. We provide optimal distribution services to customers in the Central and Eastern Europe region surrounding the Czech Republic and Poland. 3 Expanded Services in Vietnam and Bangladesh In addition to the Vietnamese subsidiary that we established in 2005, we began operating a specialized logistics company called Kintetsu Logistics (Vietnam), Inc. in 2008. As a result, we have a network of six bases — two in Ho Chi Minh City, one each in other cities including Hanoi and Haiphong — which we are building into a framework for serving our customers’ needs. In 2010, we opened a delegate office in Bangladesh. We are also considering entering markets in other parts of South Asia where transport demand is expected to increase in line with economic growth. Logistics facility outside Hanoi Trucking service in Russia Strength 2 Strength Enhanced Our Own Service Network in India We founded a local subsidiary in 1997 in response to the movement of U.S.-affiliated electronics manufacturers into India. Today, we have expanded our network to include 19 operating bases. In India, as elsewhere, we aim to provide customers with optimal distribution solutions by offering comprehensive distribution services including airfreight forwarding, ocean freight forwarding, domestic transport, and logistics. Delegate office in Dhaka, Bangladesh Office in Prague, Czech Republic 4 Moving into Saudi Arabia In June 2010, we established Kintetsu World Express (Saudi Arabia) Ltd. as a joint venture with a local Saudi company. We will work through this new company to substantially expand transport of oil and gas-related plant equipment and project-based freight. Major Indian Bases Delhi Noida Ahmedabad Nagpur Mumbai Kolkata Opening ceremony in Saudi Arabia Pune Hyderabad Bangalore (Head Office) Chennai Coimbatore Cochin Warehouse in Noida, the suburb of Delhi 04 10 Kintetsu KintetsuWorld WorldExpress, Express,Inc. Inc. Chennai office Kintetsu World Express, Inc. 11 Services & Strength Global Network Business Lines Service Framework CSR Corporate Data Global Network Japan Japan KWE’s Global Network Strongly Supports Customers In order to promote even further globalization, we divide the world into five regions and operate the Five Regional Management System, through which we keep improving our management’s efficiency and speed. Europe, Europe, Middle Middle East East & & Africa Africa Southeast Asia Southeast Asia The KWE Group’s 9,238 employees work around the clock at 308 locations in 194 cities in 32 countries (as of March 31, 2011). This global network is organically linked with our information system which enables us to track the location of our customers’ valuable cargo at all times, from the moment it leaves the customer to the moment it arrives at the final destination. The KWE Group has taken consistent forwarding to an art. Europe, Middle East & Africa East East Asia Asia & & Oceania Oceania Japan Kintetsu World Express (U.K.) Ltd. Kintetsu World Express (Deutschland) GmbH. Kintetsu World Express (France) S.A.S. Kintetsu World Express (Benelux) B.V. Kintetsu World Express (RUS), Inc., LLC. Kintetsu World Express (Ireland) Ltd. Kintetsu World Express South Africa (Pty) Ltd. Kintetsu World Express (Switzerland) Ltd. Kintetsu World Express (Italia) S.R.L. Kintetsu World Express (Sweden) AB Kintetsu World Express (Middle East) FZE Kintetsu World Express (Czech) S.R.O. Kintetsu World Express (Saudi Arabia) Ltd. plus 2 other companies The Americas The Americas KWE Group KWE Group Kintetsu World Express, Inc. Kintetsu Logistics Systems, Inc. Kintetsu World Express Delivery Co., Ltd. Kintetsu Cosmos, Inc. Kintetsu World Express Sales, Inc. Kintetsu World Express Shikoku, Inc. The Americas Kintetsu World Express (U.S.A.), Inc. Kintetsu Blue Grass, Inc. Kintetsu World Express (Canada) Inc. World Wide Customs Brokers Ltd. East Asia & Oceania Kintetsu World Express (HK) Ltd. Kintetsu World Express (Taiwan), Inc. Kintetsu World Express (Australia) Pty. Ltd. Kintetsu World Express (Korea), Inc. Beijing Kintetsu World Express Co., Ltd. Shanghai Kintetsu World Express Co., Ltd. Kintetsu World Express (Xiamen) Co., Ltd. Kintetsu Logistics (Shenzhen) Co., Ltd. Shanghai Kintetsu Logistics Co., Ltd. Dalian Kintetsu Logistics Co., Ltd. Suzhou Kintetsu Logistics Co., Ltd. Kintetsu Logistics (Xiamen) Co., Ltd. Yantai Kintetsu Logistics Co., Ltd. Kintetsu World Express (Philippines) Inc. Kintetsu World Express (Subic) Inc. Kintetsu World Express (Clark) Inc. Kintetsu Logistics (Philippines) Inc. Southeast Asia KWE-Kintetsu World Express (S) Pte Ltd. Kintetsu World Express (Malaysia) Sdn. Bhd. Kintetsu Logistics (M) Sdn. Bhd. KWE-Kintetsu World Express (Thailand) Co., Ltd. Kintetsu Logistics (Thailand) Co., Ltd. Kintetsu World Express (India) Pvt Ltd. PT. Kintetsu World Express Indonesia Kintetsu World Express (Vietnam), Inc. Kintetsu Logistics (Vietnam), Inc. plus 1 other company Other Kintetsu Global I.T., Inc. KWE Reinsurance, Inc. Kintetsu Aerospace Logistics, Ltd. plus 6 other companies 04 12 Kintetsu KintetsuWorld WorldExpress, Express,Inc. Inc. Kintetsu World Express, Inc. 13 Services & Strength Global Network Business Lines Service Framework CSR Corporate Data Business Lines Further expanding our excellent one-stop international logistics services In addition to the electronics-related products, we deliver all types of freight — from automotive-related products, medical equipment, machine tools, and aircraft-related products to clothing — in whatever way best suits our customers’ needs, by air, sea, or land. Forwarding Main airfreight export items Main airfreight import items Digital electronic appliances, computers, semiconductors and other electronics products and components Electronics products and components, including computers, semiconductors and their manufacturing equipment Telecommunications devices and components, including mobile phones Medical and chemical products Automobile parts and components Fashion products such as textile products and high-end brand products Medical and chemical products Automobile parts and components Machine tools and construction machinery Beaujolais wine, etc. At KWE, our core business is consolidated services by which cargo collected from multiple shippers are sorted and assembled per airport of overseas destination, and are consigned as KWE cargo to airlines for international airfreight forwarding. Our export services include document preparations for air carriage, customs clearance and surface transportation. We provide such services through a closely working network in our sales division, which includes sales offices and branches, and our operation division. Once the consolidated cargo arrives at its destination airport, KWE’s local overseas subsidiary or agent picks it up at the airline warehouse for import customs clearance and delivery to the consignee. The amount of international airfreight handled by KWE is ranked among the top 10 in the world. Logistics Main logistics services and systems Logistics consulting VMI (Vendor Managed Inventory) PO (Purchase Order) management Transport/forwarding management Inventory control management Project management Assembly works Product inspection Call center functions Reverse logistics (RMA): Return Material Authorization Main ocean freight export items Main ocean freight import items Household electric appliances Computers and their peripherals Raw materials Household electric appliances Parts and semi-finished goods (such as mobile phone components) Automotive-related products Automotive-related products Medical and chemical products Plant equipment transportation Mail-order products Aircraft-related products General merchandise and retail goods Apparel Equipment to be used at events and for broadcasting (such as for international sporting events, musicals and exhibitions) Other Operations Domestic airfreight forwarding Five domestic affiliates provide specialized services Pick-up and delivery of export and import freight Kintetsu Logistics Systems, Inc. Customized packaging, transport, and installation of precision machinery Kintetsu World Express Delivery Co., Ltd. Temporary staffing, primarily for logistics and trading businesses Kintetsu World Express Sales, Inc. Main domestic services Transport of art objects and other materials for events and exhibitions Hand carry service IT and other types of support for 3PL 04 14 Kintetsu KintetsuWorld WorldExpress, Express,Inc. Inc. In recent years, customers’ needs for logistics services have expanded and diversified due to their efforts to streamline and reduce costs of distribution. Services include not only procuring materials, processing products, distribution, handling merchandise returns and waste disposal but also handling orders, inventory management, information management and analyzing results. We support global companies by developing and operating third-party logistics services that employ the latest technologies to meet our customers’ every need. Cross-dock operations Ocean Services in the field of logistics have the highest growing demand in the distribution industry. At KWE, we have continued to provide total logistics services including customs clearance, providing temporary storage, processing products during distribution, and providing distribution and inventory services. Kintetsu Cosmos, Inc. Kintetsu World Express Shikoku, Inc. In the field of international ocean freight forwarding, KWE is a non-vessel operating common carrier (NVOCC), making use of the shipping lines’ transportation services. The flow of ocean freight forwarding is basically the same as that of airfreight: In addition to transporting full container loads, we provide consolidated services whereby we pack less-than-container loads into ocean containers, arrange transport with a shipping company, clear the cargo through customs and sort it at the destination port, and deliver it to customers. We provide highly customized ocean-based transport services such as buyer’s consolidation (combining customers’ commercial distribution and logistics), door-to-door service supporting the establishment of overseas production bases (including transport and installation of equipment), environmentally friendly rail transport, etc. One of KWE’s greatest strengths is our ability to provide door-to-door transportation services all over the world. For example, our domestic freight forwarding service, which we provide primarily to users of our international freight forwarding services, uses our nationwide service network to collect freight from every part of Japan from Hokkaido to Okinawa, transport it to an airport via one of our cargo centers, and have an airline fly it to the desired destination. At that destination, we transport the cargo from the airport to the appropriate regional cargo center. Our various affiliates provide specialized and sophisticated services such as the customized and careful packing of precision machinery that is required for door-to-door delivery, temporary staffing, transport of materials for events and exhibitions, hand carry, and IT support, etc. Kintetsu World Express, Inc. 15 Global Network Services & Strength Business Lines CSR Service Framework Corporate Data Service Framework A Pioneer in Networks and Services From the inception of Japan’s airfreight forwarding business, KWE has always developed new areas both in networks and in services. Going forward, we aim to ensure that we continue to pass on this pioneering spirit to future generations, and evolve as we press ahead into the future. 1948 1955 1969 1970 Hong Kong United States Establishment of Overseas Subsidiaries 1989 Singapore United Kingdom 1994 1998 2000 France Ireland Netherlands South Africa Belgium South Korea Germany 2005 Canada Russia 2006 2008 2010 Czech Republic Indonesia United Arab Emirates Vietnam Sweden Switzerland Taiwan Thailand 2003 China Australia Malaysia 2002 India Saudi Arabia Philippines Italy The Five Regional Management System that Supports KWE’s Global Network Japan (Kintetsu World Express, Inc. and five other companies) The region’s main businesses are international airfreight and ocean freight forwarding, and logistics. Some of the 38 distribution centers in Japan, including our Narita Terminal and No. 4 Baraki Terminal, have received ISO certification for quality control and environmental management as well as Class A certification by TAPA (Transported Asset Protection Association). Using an advanced global information system to provide one-stop service that combines air and ocean transport with logistics services, this region leads the KWE Group. The Americas (4 companies) United States, Canada, South American countries We entered the market in Chicago in 1969 and established a U.S. affiliate. From early on, we actively marketed our services to U.S. companies, thereby building a foundation for working well with non-Japanese companies. Today we handle a wide variety of cargo, including semiconductor-related products, digital household appliances, medical equipment, and automotive products, and we operate an overland transport service with Los Angeles and Chicago as our hubs. We are focusing on expanding logistics services in the region, including Canada. Europe, Middle East & Africa (15 companies) United Kingdom, Germany, France, Italy, Netherlands, Belgium, Sweden, Switzerland, Ireland, Russia, Czech Republic, South Africa, Middle Eastern countries, etc. We established affiliates in England and Germany in 1985. In 1995, we established an affiliate in Russia ahead of competitors in the industry, and in 2008 we established a Czech affiliate, and we are actively working to develop services and infrastructure in Central and Eastern Europe in line with our Russian business. Our regional airfreight hub is Frankfurt, while our ocean freight hub is Rotterdam. We established a joint venture in Saudi Arabia in 2010, and intend to enhance our services in the Middle East. East Asia & Oceania (23 companies) Hong Kong, China, South Korea, Taiwan, Philippines, Australia, etc. In April 1969, the KWE Group established its first overseas company in Hong Kong. In 1985, we opened a Beijing Representative Office, and today we have 17 companies in China, operating 112 locations in 46 cities, making our directly operated service network one of the biggest in the industry. Our meticulous and high-quality domestic delivery and logistics services within China are assets that we intend to use as we continue developing our Chinese business with a focus on growth in one-stop service involving air and/or ocean transport. Southeast Asia (10 companies) Singapore, Malaysia, Thailand, India, Indonesia, Vietnam, Bangladesh, etc. This region centers around Singapore and Malaysia and covers almost all countries in southeast Asia. It also covers India and Vietnam, emerging markets where logistics demand is expected to grow in the future. Logistics demand is strong within the Asian region, and is expected to expand greatly in the future. In 2010, we entered the Bangladesh market. 04 16 Kintetsu KintetsuWorld WorldExpress, Express,Inc. Inc. Domestic Affiliates Provide Advanced, Specialized Services Kintetsu Logistics Systems, Inc. (established 2002) Founded as a spin-off of KWE’s domestic airfreight forwarding business, Kintetsu Logistics Systems specializes in domestic Japanese logistics services. Through a network of more than 90 locations throughout Japan, it provides logistics solutions, environmental solutions, and outsourced services, etc. Kintetsu World Express Delivery Co., Ltd. (established 1982) Services provided by this affiliate include pickup and delivery of import and export cargo, packing operations and transport of precision machinery. The company has accumulated various types of transport expertise. For example, we provide meticulous service based on our wealth of experience especially in transporting semiconductor production machinery and liquid crystal production machinery into factories, assembling and installing it, and disassembling and removing it. Kintetsu Cosmos, Inc. (established 1993) This affiliate operates a temporary staffing service that supplies specialized personnel, especially for logistics and trading businesses. It also sells supplies, operates an insurance agency, and manages KWE’s distribution facilities. Kintetsu World Express Sales, Inc. (established 1998) This affiliate specializes in proposing and implementing optimal transport for cultural or corporate events, exhibitions, art objects, special merchandise, or hand carry services. It also creates and provides optimal transport with effective quality control, cost competitiveness, and strict delivery deadlines. Kintetsu World Express Shikoku, Inc. (established 2006) This affiliate provides airfreight and ocean freight forwarding services for the Shikoku region, where it has strong ties to the local business community. Kintetsu World Express, Inc. 17 Services & Strength Global Network Business Lines Service Framework CSR Corporate Data CSR We aim to improve KWE’s corporate value through our international distribution businesses and to be a good corporate citizen that grows together with the global community The KWE Group’s social mission is to cooperate with all of our stakeholders to create new value and the best possible environments through our international distribution businesses and to contribute to the global community. Toward that end, we will firmly adhere to the following guidelines and make them a foundation of our corporate behavior: Contribute to the Global Community through Our International Distribution Businesses ISO14001 Certificate Each employee will continually strive to improve quality by working with speed and accuracy. Furthermore, we will firmly adhere to our commitments to the pursuit of fair profits while always putting the customer first, and to seeking new value through international distribution businesses. KWE Group Employees Shareholders, Investors Business Partners Examples of Concrete Achievements Quality Management Systems at 19 of our subsidiaries, including KWE Japan, were ISO9001 certified as of March 2011. In September 2001, we obtained ISO14001 certification for our Tokyo Terminal’s environmental management system. Later, we obtained ISO14001 certification for our Narita Terminal (January 2003), No.3 Baraki Terminal (January 2009). Outside of Japan, we obtained the same certification for facilities in Malaysia, the Philippines, Hong Kong and Taiwan. In the future, we will work harder than ever at environmental preservation and pollution prevention in order to contribute to global society. Customers Local Residents Maintaining Our “Customer-First” Orientation as We Strive for Quality Improvements ISO14001 Certification We had 19 terminals around the world with Class A certification by TAPA (Transported Asset Protection Association) as of March 2011, testifying to the security of our transport facilities and systems. OHSAS18001 Certification (Hong Kong) OHSAS18001 is a set of standards that lists risks and countermeasures related to occupational safety and hygiene, with the primary aim of clarifying related responsibilities. KWE received OHSAS18001 certification for its Hong Kong subsidiary in March 2009. We aim to minimize the danger of work accidents and the risk of damages arising from such accidents by analyzing and managing risks related to the occupational safety and hygiene of employees and other stakeholders, and by continuously improving occupational safety and hygiene management systems. OHSAS18001 Certificate Reducing CO2 Emissions to Realize a Low-Carbon Society — Reducing Waste and Reusing Resources We make every effort to implement the “3Rs” —reduce, reuse, and/or recycle waste of the main materials that we might otherwise dispose of: wooden pallets, plastic wrap, plastic bands, cardboard cartons, office paper, and general trash. Quality Management Conference Cargo monitoring Wooden Pallets . As a general rule, reuse . Ask other businesses to use surplus palettes . Recycle broken or otherwise unusable pallets as wood chips Human Resource Development That Values People Plastic Wrap and Bands . Recycle all as plastic material People are most important, and we keep this in mind as we develop human resources who are fully human and at the same time passionate, ambitious, and highly creative workers who we can send out into the world as outstanding successors. Examples of Concrete Achievements Cardboard Cartons and Used Office Paper . Recycle cardboard used in packing . Recycle non-confidential documents TQM training Overseas training . Training for all levels including follow-up training for new hires, supervisors’ Kintetsu World Express Delivery Co., Ltd., which delivers freight by automobile, has begun introducing hybrid trucks. Also, Japan’s Eco-Mo Foundation awarded “Green Management” certification to the company’s Tokyo Special Transportation Sales Office, Kanto Technical Center, Kanto Logistics Sales Office and Kanto Transportation Center, in recognition of such efforts as implementing ecologically sound driving techniques and improving vehicle maintenance, inspections, and fuel efficiency. seminars, management training, and workplace director training . Education about all types of operations, including general affairs, other departments' operations, and customer service training . Overseas training systems . TQM training that teaches all managers and supervisors about management strategies . Business Leader Global Seminar . Sunshine Blogs that foster communication between board members and employees Separation of waste materials in order to facilitate recycling (Narita Terminal) Business Leader Global Seminar Sunshine Blogs Building Corporate Contributions to Society and the Environment We contribute to the development of the global economy through our corporate activities, both in local communities and on the world stage. We constantly strive to be a corporation that is fair, highly ethical, responsible, and earns society’s trust. We follow international rules aimed at protecting the global environment and use resources carefully. 04 18 Kintetsu KintetsuWorld WorldExpress, Express,Inc. Inc. Introducing hybrid vehicles Green Management Certificate (Tokyo Special Transportation Sales Office, Kanto Technical Center) Green Management Certificate (Kanto Logistics Sales Office, Kanto Transportation Center) Kintetsu World Express, Inc. 19 Services & Strength Global Network Business Lines Service Framework CSR Corporate Data Visit the KWE Website The KWE Group strives to maintain a full-featured website as a tool to provide information on our services and business to the public. Corporate Data http://www.kwe.com (As of March 31, 2011) Kintetsu World Express, Inc. (KWE) Head office: 5th Floor, Ohtemachi Bldg., 1-6-1 Ohtemachi, Chiyoda-Ku, Tokyo 100-0004, Japan In December 2011, KWE plans to move to a new head office of the following address: Shinagawa Intercity TowerA-24F 2-15-1 Konan, Minato-ku, Tokyo 108-6024, Japan Capital: ¥ 7,216 million Start of business: May 1948 Established: January 1970 Representative: Satoshi Ishizaki President and Chief Executive Officer Number of : 1,123 (Kintetsu World Express, Inc.) employees 9,238 (worldwide on a consolidated basis) Global site Bank references: The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, and others Types of business: 1. Domestic and foreign airfreight forwarding business; trucking company agent 2. Forwarding using outsourced transport services 3. Customs agent 4. Warehousing and distribution 5. Any business related to all of the above Listing: Listed on the first section of the Tokyo Stock Exchange KWE Japan China information History 04 20 1948 The Operation Bureau of Kintetsu Corporation begins handling international freight and travel service. Approved as an agency by the IATA (International Air Transport Association). 1955 Developed into Kinki Nippon Tourist Co., Ltd. (KNT), creating a comprehensive luggage handler by combining our international airfreight and international tourism divisions. 1969 Began overseas operations with establishment of subsidiaries in Hong Kong and the United States. 1970 Kintetsu World Express, Inc. spun off from KNT. 1978 Became the first Japanese forwarder to take its export operations’ computer system online. 1994 Became the first Japanese distribution company to obtain ISO9002 quality certification (changed to ISO9001 in 2003). Adopted Quadrilateral Management System with regional headquarters for Japan, The Americas, Europe & Africa, and Asia & Oceania. 1998 Narita Terminal (Japan) opens. 2000 Listed on Nasdaq Japan Market (presently Hercules Market), a section of Osaka Securities Exchange (de-listed as of September 2004). 2002 Listed on the Second Section of Tokyo Stock Exchange. Adopted “The KWE Grand Design for the 21st Century”. 2003 Obtained environmental ISO14001 certificate (Narita Terminal). Stock listing upgraded to the First Section of Tokyo Stock Exchange. Becomes the first Japanese forwarder to be certified as Level A on international cargo security standards by Transported Asset Protection Association (TAPA) at the KWE Narita Terminal. 2005 Established a business and capital alliance with Mitsui O.S.K. Lines. 2006 Split Asia & Oceania Headquarters into two units: current East Asia & Oceania and Southeast Asia. We now use Five Regional Management System in place of previous quadrilateral system. 2010 Drafted our new medium-term management plan, “Ready for the Next!” (April 2010 – March 2013). 40th anniversary of the Company’s establishment Kintetsu KintetsuWorld WorldExpress, Express,Inc. Inc. About KWE Services & solutions Investor relations Kintetsu World Express, Inc. 21