Press Release

Halal product through transport system established in Indonesia

-- Will provide strong support for a halal industry serving an enormous market --

PT Nittsu Lemo Indonesia Logistik (Koshi Yoshioka, President; hereinafter, "NLIL") and PT NEX Logistics Indonesia (Tetsuji Yonaiyama, President; hereinafter, "NEX LI"), both local subsidiaries of Nippon Express Co., Ltd. (Mitsuru Saito, President), received halal certification in June and July respectively from Indonesia's halal certifying body The Assessment Institute for Foods, Drugs and Cosmetics - Indonesian Council of Ulama (LPPOM-MUI).

Muslims make up nearly 90% of Indonesia's population and, while the demand for halal products is already high, further expansion of the halal market is anticipated due to higher consumer demand driven by economic development and population growth.

Laws are also expected to go into effect in 2019 that will require halal certification for all food, cosmetic and pharmaceutical products distributed or traded within Indonesia. Both consumers and companies within Indonesia have consequently been showing growing interest in halal certification.

The recently certified NLIL has already begun handling halal food products at its 18,000m2 warehouse for customers doing business globally.

With NLIL and NEX LI now certified and PT Nippon Express Indonesia having been certified in April of this year, the three Group companies will be able to provide comprehensive halal transport services, ranging from air/ocean cargo forwarding to warehousing storage and distribution.

In light of the rising interest in halal products in Indonesia, Nippon Express is constructing a halal logistics service network to support the supply chains of customers expanding into Muslim markets, and to deliver such products safely and securely to Muslim customers.

[Nippon Express' halal logistics certifications]

A. Malaysia

Dec 2014 Halal transport certification (MS2400-1) received from JAKIM(*1)
Jun 2015 Business partnership agreement concluded with Brahim's
Holdings Berhad, the world's largest manufacturer of halal airline meals
Oct 2016 Certification received allowing NE Malaysia to carry out ritual
cleansing(*2) of trucks and cargo containers in-house
May 2017 Halal warehousing certification (MS2400-2) received from JAKIM

B. Japan

Jan 2016 Halal warehousing certification received from Japan Halal
Association (JHA) (Tokyo Shipping Branch)
Feb 2016 Halal transport certification received from JHA (Tokyo Shipping Branch)
Mar 2017 Halal warehousing/transport certification received from JHA (Fukuoka Shipping Branch)

C. Indonesia

Apr 2018 Halal certification received from The Assessment Institute for Foods, Drugs and Cosmetics - Indonesian Council of Ulama (LPPOM-MUI) (PT Nippon Express Indonesia)

1 JAKIM: Jabatan Kemajuan Islam Malaysia (Department of Islamic Development), a certifying body within the Malaysian government.

2 Ritual cleansing refers to purifying locations that are considered unclean for halal foods (e.g., locations that have handled pork or pork-derivative products). Trucks and cargo containers to be used for transporting halal foods must be purified beforehand by cleansing them in accordance with JAKIM rules.

Nippon Express' halal logistics logo

Nippon Express has created a logo mark for its halal logistics services to distinguish halal cargo and to let customers know that such services are available