Yusen Logistics Co., Ltd.10Home > Snapshot > 2. Medium-Term Business Plan

Under 3D Management, we are executing concrete initiatives based on three main strategies: Business Strategy,

Sales Strategy and Area Strategy.

* Click here for information on specific measures taken in the year ended March 2012.

* Click here for initiatives taken during the year ended March 2012.

Page Top

"3D Management" means to operate business efficiently in three dimensions, namely, by area, business, and customer

or industry, and manage them from various aspects, to ensure we generate balanced profits.

In the year ended March 31, 2012, our business environment was shaped by the European sovereign debt crisis,

slowing growth in Asia, and economic instability in Japan and the U.S. These and other factors stymied the global

economy. Coupled with the effects of natural disasters, the logistics market stalled, most notably with regard to freight

originating from Japan and Asia. The logistics business in Europe and the U.S. was also hit hard by the prevailing

conditions. Because of these outcomes, as well as the yen's sharp appreciation and other factors we are no longer

forecasting the economic growth we expected when we announced our plan in March 2011. For this reason, we

revised our numerical targets in the medium-term business plan in April 2012, as follows:

From Integration to Fusion and Dramatic Progress Numerical Targets 3D Management Strategy Three Strategies

1. Integration Progress2. Medium-Term Business Plan

3. Medium-Term Business Plan Progress: Promoting Fusion of Operations for Maximizing Synergies

4. Yusen Logistics’ FinancialHighlights

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2 Medium-Term Business Plan

Yusen Logistics Snapshot

From Integration to Fusion and Dramatic Progress

1 INTEGRATION2 FUSION

3 DRAMATIC PROGRESS

YAS*NYK

Logistics

Completion of “Integration”Completed integration following the consolidation of companies in China, Malaysia and elsewhere in April 2012.

“Fusion” of OperationPromote “Fusion” of employee awareness, organization and governance, in order to maximize synergies, share corporate values worldwide within the Yusen Logistics (YLK) Group and aim to achieve its goals.

For “Dramatic Progress”Establish “3D Management” that positions business, sales and area strategies as three basic strategies, and aim to be a total logistics provider operating globally with world-class scale and quality.

Fusion of Employee Awareness

Fusion of Governance

Fusion of Organizations

Business Strategy

Area Strategy

Sales Strategy

Toward World-Class

Total Logistics Provider

* Yusen Air & Sea Service

Annual Report 2012 11

Home > Snapshot > 2. Medium-Term Business Plan

Under 3D Management, we are executing concrete initiatives based on three main strategies: Business Strategy,

Sales Strategy and Area Strategy.

* Click here for information on specific measures taken in the year ended March 2012.

* Click here for initiatives taken during the year ended March 2012.

Page Top

"3D Management" means to operate business efficiently in three dimensions, namely, by area, business, and customer

or industry, and manage them from various aspects, to ensure we generate balanced profits.

In the year ended March 31, 2012, our business environment was shaped by the European sovereign debt crisis,

slowing growth in Asia, and economic instability in Japan and the U.S. These and other factors stymied the global

economy. Coupled with the effects of natural disasters, the logistics market stalled, most notably with regard to freight

originating from Japan and Asia. The logistics business in Europe and the U.S. was also hit hard by the prevailing

conditions. Because of these outcomes, as well as the yen's sharp appreciation and other factors we are no longer

forecasting the economic growth we expected when we announced our plan in March 2011. For this reason, we

revised our numerical targets in the medium-term business plan in April 2012, as follows:

From Integration to Fusion and Dramatic Progress Numerical Targets 3D Management Strategy Three Strategies

1. Integration Progress2. Medium-Term Business Plan

3. Medium-Term Business Plan Progress: Promoting Fusion of Operations for Maximizing Synergies

4. Yusen Logistics’ FinancialHighlights

Site Policy Privacy Policy Copyright © YUSEN LOGISTICS CO., LTD. All Rights Reserved.

Numerical Targets

3D Management Strategy

2,5005,000

7,5009,500

18,500

8,200

309,000

370,000

500,000

430,000

13,000

5,500

12(Actual)

13(Forecast)

14(Initial Targets)

14(Revised Targets)

(Millions of Yen)

Net Sales, Ordinary Income, Net Income (YLK (Consolidated))

Net SalesOrdinary IncomeNet Income

ITOrganization

FinanceCSR

Customer Centric Quality/”Gemba” FocusedInnovationIntensity

Environmental Management

HR-oriented Management

Integrity

Business Strategy

Sales Strategy

Area StrategyCustomer 1

Customer 2

Customer 3

Customer 4

Customer 5

Japanai

sA t

saE

aina

ecO

&ai s

A ht

uoS

epor

uEsa

cir e

mA

AirOcean

Contract Logistics

Land Transport

3D Management

Basic Management Strategy

Value

The Concept of 3D Management

Yusen Logistics Co., Ltd.12

Home > Snapshot > 2. Medium-Term Business Plan

Under 3D Management, we are executing concrete initiatives based on three main strategies: Business Strategy,

Sales Strategy and Area Strategy.

* Click here for information on specific measures taken in the year ended March 2012.

* Click here for initiatives taken during the year ended March 2012.

Page Top

"3D Management" means to operate business efficiently in three dimensions, namely, by area, business, and customer

or industry, and manage them from various aspects, to ensure we generate balanced profits.

In the year ended March 31, 2012, our business environment was shaped by the European sovereign debt crisis,

slowing growth in Asia, and economic instability in Japan and the U.S. These and other factors stymied the global

economy. Coupled with the effects of natural disasters, the logistics market stalled, most notably with regard to freight

originating from Japan and Asia. The logistics business in Europe and the U.S. was also hit hard by the prevailing

conditions. Because of these outcomes, as well as the yen's sharp appreciation and other factors we are no longer

forecasting the economic growth we expected when we announced our plan in March 2011. For this reason, we

revised our numerical targets in the medium-term business plan in April 2012, as follows:

From Integration to Fusion and Dramatic Progress Numerical Targets 3D Management Strategy Three Strategies

1. Integration Progress2. Medium-Term Business Plan

3. Medium-Term Business Plan Progress: Promoting Fusion of Operations for Maximizing Synergies

4. Yusen Logistics’ FinancialHighlights

Site Policy Privacy Policy Copyright © YUSEN LOGISTICS CO., LTD. All Rights Reserved.

Three Strategies

Business Strategy

Handling target FY2013: 1 million TEU

Quantitative expansion through service quality and price competitiveness

Ocean Freight Forwarding Business

Purchasing Strategy

Product and Quality Strategy

Sales Strategy

Handling target FY2013: 500 thousand tons

Sales expansion through the development of services leveraging the strength of the global network and further quality improvements

Air Freight Forwarding Business

Toward World-Class Forwarder

Cost Management

Eco-friendly Handling

Cutting-edge Technology

IT

Quality Standards

Strengthen Weakness (SWOT)

Cultivation of Human Resources

Assistance for Launch

Competitive ‘Gemba,’ front line

Aim to be No. 1 Kaizen (Improvement) Company

Expand synergies with forwarding businesses by strengthening

brand power as the “No. 1 Kaizen Company”

Contract Logistics Business

Annual Report 2012 13

Home > Snapshot > 2. Medium-Term Business Plan

Under 3D Management, we are executing concrete initiatives based on three main strategies: Business Strategy,

Sales Strategy and Area Strategy.

* Click here for information on specific measures taken in the year ended March 2012.

* Click here for initiatives taken during the year ended March 2012.

Page Top

"3D Management" means to operate business efficiently in three dimensions, namely, by area, business, and customer

or industry, and manage them from various aspects, to ensure we generate balanced profits.

In the year ended March 31, 2012, our business environment was shaped by the European sovereign debt crisis,

slowing growth in Asia, and economic instability in Japan and the U.S. These and other factors stymied the global

economy. Coupled with the effects of natural disasters, the logistics market stalled, most notably with regard to freight

originating from Japan and Asia. The logistics business in Europe and the U.S. was also hit hard by the prevailing

conditions. Because of these outcomes, as well as the yen's sharp appreciation and other factors we are no longer

forecasting the economic growth we expected when we announced our plan in March 2011. For this reason, we

revised our numerical targets in the medium-term business plan in April 2012, as follows:

From Integration to Fusion and Dramatic Progress Numerical Targets 3D Management Strategy Three Strategies

1. Integration Progress2. Medium-Term Business Plan

3. Medium-Term Business Plan Progress: Promoting Fusion of Operations for Maximizing Synergies

4. Yusen Logistics’ FinancialHighlights

Site Policy Privacy Policy Copyright © YUSEN LOGISTICS CO., LTD. All Rights Reserved.

Sales Strategy

Solution Sales Activities Integrated Sales

Strengths Air freight forwarding

Global Operation

Organizational operation connected through a global network

Provision of optimized logistics solutions through a strategic approach based on marketing by industry

Conduct integrated sales matching customer needs by improving sales in individual businesses and capturing synergies from among air freight forwarding, ocean freight forwarding and logistics businesses

Area Strategy

Japan

Priority Measures

• Expand ocean freight forwarding business

• Develop new transportation services and undertake off-shore business

Americas

• Reinforce sales to global corporations

• Aggressively sell import and export forwarding services

Europe

• Reinforce sales to global corporations

• Establish a delivery network within Europe

East Asia

• Expand the logistics business within Asia

• Expand own network

• Expand business in China

South Asia & Oceania

• Focus investments on emerging countries

• Expand logistics business within Asia and volume handled between the Americas and Europe