Top Message

President
Masanori Kawai

In FY2008 the Nippon Express Group made a concerted effort to complete the final year of its "'Power-up' Three-Year Plan -Taking on the Challenges of Reform alongside our Customers."

To extend our global business, we sought to bolster our overseas network by enhancing our facilities and linking up modes and systems. At the same time, we endeavored to improve our 3PL business, expand sales of differentiated products, and reform our small parcels operations. We will continue each of these approaches in future as we work to build an even bigger and stronger Nippon Express Group.

With the business environment quickly becoming more uncertain and volatile, Nippon Express has opted to follow up this plan with a single-year FY2009 “Nippon Express Group Business Infrastructure Consolidation Policy -Toward a New Leap Ahead" to address the management issues immediately confronting the Group, and efforts have been underway to implement this Policy since April 1, 2009.

The top-priority issues given in this Policy are:

• Developing a low-cost structure
• Implementing measures to strengthen sales capabilities
• Dealing effectively with small-lot cargo business
• Fulfilling CSR

The Nippon Express Group will cooperate closely in tackling the following key initiatives for the new leap ahead:

• Establishing a one-stop sales system for the Group as a whole
• Providing customer-oriented quality and service
• Training and utilizing personnel
• Reinforcing business infrastructure through M&A
• Developing new products that keep pace with the changing times

Steadfast pursuit of these measures will create a structure capable of generating profits even in these challenging times and will set the stage for the next leap ahead.

The integration of Nippon Express' Pelican-bin services with Japan Post's Yu-Pack services has moved forward, with all Pelican-bin operations being taken over by JP Express Co., Ltd., as of April 1, 2009. Nippon Express will continue its efforts to ensure smooth integration of small-parcel delivery services and will precisely address such important issues as the restructuring of consolidated trucking service and the optimal placement of service locations accompanying changes in business structure.

In addition to responding promptly to ever-changing business conditions, the Nippon Express Group is committed to strengthening the ties between Group companies and to meeting the expectations of customers, shareholders, investors and other stakeholders. We would be grateful for your continued support in this regard.

May 2009