Annual Report 2012 7 A total logistics provider operating globally with world-class scale and quality. Yusen Logistics Co., Ltd. was established in October 2010 from the integration of Yusen Air & Sea Service Co., Ltd. (YAS) and NYK Logistics (Japan) Co., Ltd. in Japan. This followed discussions regarding the restructuring and integration of YAS, which is centered on the air freight forwarding business, and the logistics business of Nippon Yusen Kabushiki Kaisha (NYK), which is centered on land transport, warehousing, distribution, and ocean freight forwarding. Since 2011, overseas businesses have been progressively integrated. In April 2012, Chinese and Malaysian entities were made consolidated subsidiaries, largely completing the integration of overseas businesses. Yusen Logistics has now launched a medium-term business plan under the banner "GO FORWARD, Yusen Logistics" for the period until March 31, 2014. Under this plan, we will strive to provide a broad range of logistics services globally. Our overarching aim is to become a total logistics provider operating globally with world-class scale and quality. Maximize enterprise value by contributing to the development of the global economy and earning the confidence of customers through the provision of sophisticated, high-quality logistics services. 1 Integration Progress Yusen Logistics Snapshot Business Snapshot Integration Strengths Air freight forwarding Air freight forwarding Ocean freight forwarding Contract logistics Ocean freight forwarding Contract logistics NYK Logistics Yusen Logistics (Formerly Yusen Air & Sea Service) Mission Vision
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An ability to make proposals for the logistics needs of any type of business model Yusen Logistics can make optimal logistics strategy proposals for any type of business or business model. We
accurately identify the special nature and issues surrounding the logistics services needed by different companies
based on our extensive expertise and experience amassed over more than 50 years in business and a market-centric
approach rooted in 3D Management.
An ability to respond flexibly Air freight forwarding is a field where we have long been strong. The organic integration of ocean freight forwarding
and logistics businesses through the business integration has rounded out our capabilities. We are now able to provide
total logistics solutions to customers' increasingly sophisticated, varied and global needs. We can respond flexibly to
customer needs no matter what the region or the nature of the logistics service required.
A global network based on five regions We have a global network built around five regions: Japan, Americas, Europe, East Asia, and South Asia & Oceania.
Within this network, we have logistics locations and local subsidiaries in 37 countries and regions around the world (as
of March 31, 2012). With this group network, we can meet customers' needs in any region. And with the operational
knowhow we have amassed in Japan for delivering high-quality logistics services, we are able to provide consistent
and detailed services close to customers anywhere in the world.
Page Top
Amid ongoing globalization, customer logistics needs are diversifying and becoming increasingly complex and
sophisticated. There is a need for a one-stop service to respond to these needs. We aim to bolster our ability to
provide such a service without over-concentrating on a particular region or business. As a result, we have developed a
business portfolio that is well balanced in terms of regions and businesses.
A total logistics provider operating globally with world-class scale and quality.
Yusen Logistics Co., Ltd. was established in October 2010 from the integration of Yusen Air & Sea Service Co., Ltd.
(YAS) and NYK Logistics (Japan) Co., Ltd. in Japan. This followed discussions regarding the restructuring and
integration of YAS, which is centered on the air freight forwarding business, and the logistics business of Nippon
Yusen Kabushiki Kaisha (NYK), which is centered on land transport, warehousing, distribution, and ocean freight
forwarding.
Since 2011, overseas businesses have been progressively integrated. In April 2012, Chinese and Malaysian entities
were made consolidated subsidiaries, largely completing the integration of overseas businesses.
Yusen Logistics has now launched a medium-term business plan under the banner "GO FORWARD, Yusen Logistics"
for the period until March 31, 2014. Under this plan, we will strive to provide a broad range of logistics services
globally. Our overarching aim is to become a total logistics provider operating globally with world-class scale and
quality.
Maximize enterprise value by contributing to the development of the global economy and earning the confidence of
customers through the provision of sophisticated, high-quality logistics services.
Business Snapshot Mission Vision Values Business Portfolio Three Strengths of Yusen Logistics
1. Integration Progress
2. Medium-Term Business Plan3. Medium-Term Business Plan
Progress: Promoting Fusion of Operations for Maximizing Synergies
NYK Logistics Yusen Logistics (Formerly Yusen Air & Sea Service)
Mission
Vision
Yusen Logistics Co., Ltd.8
Home > Snapshot > 1. Integration Progress
An ability to make proposals for the logistics needs of any type of business model Yusen Logistics can make optimal logistics strategy proposals for any type of business or business model. We
accurately identify the special nature and issues surrounding the logistics services needed by different companies
based on our extensive expertise and experience amassed over more than 50 years in business and a market-centric
approach rooted in 3D Management.
An ability to respond flexibly Air freight forwarding is a field where we have long been strong. The organic integration of ocean freight forwarding
and logistics businesses through the business integration has rounded out our capabilities. We are now able to provide
total logistics solutions to customers' increasingly sophisticated, varied and global needs. We can respond flexibly to
customer needs no matter what the region or the nature of the logistics service required.
A global network based on five regions We have a global network built around five regions: Japan, Americas, Europe, East Asia, and South Asia & Oceania.
Within this network, we have logistics locations and local subsidiaries in 37 countries and regions around the world (as
of March 31, 2012). With this group network, we can meet customers' needs in any region. And with the operational
knowhow we have amassed in Japan for delivering high-quality logistics services, we are able to provide consistent
and detailed services close to customers anywhere in the world.
Page Top
Amid ongoing globalization, customer logistics needs are diversifying and becoming increasingly complex and
sophisticated. There is a need for a one-stop service to respond to these needs. We aim to bolster our ability to
provide such a service without over-concentrating on a particular region or business. As a result, we have developed a
business portfolio that is well balanced in terms of regions and businesses.
A total logistics provider operating globally with world-class scale and quality.
Yusen Logistics Co., Ltd. was established in October 2010 from the integration of Yusen Air & Sea Service Co., Ltd.
(YAS) and NYK Logistics (Japan) Co., Ltd. in Japan. This followed discussions regarding the restructuring and
integration of YAS, which is centered on the air freight forwarding business, and the logistics business of Nippon
Yusen Kabushiki Kaisha (NYK), which is centered on land transport, warehousing, distribution, and ocean freight
forwarding.
Since 2011, overseas businesses have been progressively integrated. In April 2012, Chinese and Malaysian entities
were made consolidated subsidiaries, largely completing the integration of overseas businesses.
Yusen Logistics has now launched a medium-term business plan under the banner "GO FORWARD, Yusen Logistics"
for the period until March 31, 2014. Under this plan, we will strive to provide a broad range of logistics services
globally. Our overarching aim is to become a total logistics provider operating globally with world-class scale and
quality.
Maximize enterprise value by contributing to the development of the global economy and earning the confidence of
customers through the provision of sophisticated, high-quality logistics services.
Business Snapshot Mission Vision Values Business Portfolio Three Strengths of Yusen Logistics
1. Integration Progress
2. Medium-Term Business Plan3. Medium-Term Business Plan
Progress: Promoting Fusion of Operations for Maximizing Synergies
An ability to make proposals for the logistics needs of any type of business model Yusen Logistics can make optimal logistics strategy proposals for any type of business or business model. We
accurately identify the special nature and issues surrounding the logistics services needed by different companies
based on our extensive expertise and experience amassed over more than 50 years in business and a market-centric
approach rooted in 3D Management.
An ability to respond flexibly Air freight forwarding is a field where we have long been strong. The organic integration of ocean freight forwarding
and logistics businesses through the business integration has rounded out our capabilities. We are now able to provide
total logistics solutions to customers' increasingly sophisticated, varied and global needs. We can respond flexibly to
customer needs no matter what the region or the nature of the logistics service required.
A global network based on five regions We have a global network built around five regions: Japan, Americas, Europe, East Asia, and South Asia & Oceania.
Within this network, we have logistics locations and local subsidiaries in 37 countries and regions around the world (as
of March 31, 2012). With this group network, we can meet customers' needs in any region. And with the operational
knowhow we have amassed in Japan for delivering high-quality logistics services, we are able to provide consistent
and detailed services close to customers anywhere in the world.
Page Top
Amid ongoing globalization, customer logistics needs are diversifying and becoming increasingly complex and
sophisticated. There is a need for a one-stop service to respond to these needs. We aim to bolster our ability to
provide such a service without over-concentrating on a particular region or business. As a result, we have developed a
business portfolio that is well balanced in terms of regions and businesses.
A total logistics provider operating globally with world-class scale and quality.
Yusen Logistics Co., Ltd. was established in October 2010 from the integration of Yusen Air & Sea Service Co., Ltd.
(YAS) and NYK Logistics (Japan) Co., Ltd. in Japan. This followed discussions regarding the restructuring and
integration of YAS, which is centered on the air freight forwarding business, and the logistics business of Nippon
Yusen Kabushiki Kaisha (NYK), which is centered on land transport, warehousing, distribution, and ocean freight
forwarding.
Since 2011, overseas businesses have been progressively integrated. In April 2012, Chinese and Malaysian entities
were made consolidated subsidiaries, largely completing the integration of overseas businesses.
Yusen Logistics has now launched a medium-term business plan under the banner "GO FORWARD, Yusen Logistics"
for the period until March 31, 2014. Under this plan, we will strive to provide a broad range of logistics services
globally. Our overarching aim is to become a total logistics provider operating globally with world-class scale and
quality.
Maximize enterprise value by contributing to the development of the global economy and earning the confidence of
customers through the provision of sophisticated, high-quality logistics services.
Business Snapshot Mission Vision Values Business Portfolio Three Strengths of Yusen Logistics
1. Integration Progress
2. Medium-Term Business Plan3. Medium-Term Business Plan
Progress: Promoting Fusion of Operations for Maximizing Synergies
An ability to make proposals for the logistics needs of any type of business model Yusen Logistics can make optimal logistics strategy proposals for any type of business or business model. We
accurately identify the special nature and issues surrounding the logistics services needed by different companies
based on our extensive expertise and experience amassed over more than 50 years in business and a market-centric
approach rooted in 3D Management.
An ability to respond flexibly Air freight forwarding is a field where we have long been strong. The organic integration of ocean freight forwarding
and logistics businesses through the business integration has rounded out our capabilities. We are now able to provide
total logistics solutions to customers' increasingly sophisticated, varied and global needs. We can respond flexibly to
customer needs no matter what the region or the nature of the logistics service required.
A global network based on five regions We have a global network built around five regions: Japan, Americas, Europe, East Asia, and South Asia & Oceania.
Within this network, we have logistics locations and local subsidiaries in 37 countries and regions around the world (as
of March 31, 2012). With this group network, we can meet customers' needs in any region. And with the operational
knowhow we have amassed in Japan for delivering high-quality logistics services, we are able to provide consistent
and detailed services close to customers anywhere in the world.
Page Top
Amid ongoing globalization, customer logistics needs are diversifying and becoming increasingly complex and
sophisticated. There is a need for a one-stop service to respond to these needs. We aim to bolster our ability to
provide such a service without over-concentrating on a particular region or business. As a result, we have developed a
business portfolio that is well balanced in terms of regions and businesses.
A total logistics provider operating globally with world-class scale and quality.
Yusen Logistics Co., Ltd. was established in October 2010 from the integration of Yusen Air & Sea Service Co., Ltd.
(YAS) and NYK Logistics (Japan) Co., Ltd. in Japan. This followed discussions regarding the restructuring and
integration of YAS, which is centered on the air freight forwarding business, and the logistics business of Nippon
Yusen Kabushiki Kaisha (NYK), which is centered on land transport, warehousing, distribution, and ocean freight
forwarding.
Since 2011, overseas businesses have been progressively integrated. In April 2012, Chinese and Malaysian entities
were made consolidated subsidiaries, largely completing the integration of overseas businesses.
Yusen Logistics has now launched a medium-term business plan under the banner "GO FORWARD, Yusen Logistics"
for the period until March 31, 2014. Under this plan, we will strive to provide a broad range of logistics services
globally. Our overarching aim is to become a total logistics provider operating globally with world-class scale and
quality.
Maximize enterprise value by contributing to the development of the global economy and earning the confidence of
customers through the provision of sophisticated, high-quality logistics services.
Business Snapshot Mission Vision Values Business Portfolio Three Strengths of Yusen Logistics
1. Integration Progress
2. Medium-Term Business Plan3. Medium-Term Business Plan
Progress: Promoting Fusion of Operations for Maximizing Synergies
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
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
Yusen Logistics Co., Ltd.14Home > Snapshot > 3. Medium-Term Business Plan Progress: Promoting Fusion of Operations for Maximizing Synergies
We announced "GO FORWARD, Yusen Logistics" at the end of March 2011 as our first medium-termbusiness plan for the YLK Group following integration. Our aim is to be a total logistics provider operating globally with world-class scale and quality, with three keywords guiding this transformation: integration, fusion and dramatic progress.
* Click here for overview of Medium-Term Business Plan.
We targeted completion of the integration stage of this transformation by the end of March 2012. This was largely
completed following the consolidation of companies in China, Malaysia and elsewhere. We are now moving from the
integration to the fusion stage, where we will take the following actions to set the stage for much higher growth in the
stage of dramatic progress.
* Click here for more details on 3D Management.
Following organizational and system integration, our employees around the world will proceed with fusing expertise,
knowledge and other less tangible aspects of our operations to enable us to provide a detailed response to customers'
logistics needs. By doing so, we aim to achieve the numerical targets of the medium-term business plan.
Page Top
1. Integration Progress2. Medium-Term Business Plan3. Medium-Term Business Plan
Progress: Promoting Fusion of Operations for Maximizing Synergies
Gross profit to net sales 16.7 22.6 25.4 23.2 24.4 24.3
Operating income to net sales 2.0 3.1 1.9 2.7 5.4 5.7
Cost of sales to net sales 83.3 77.4 74.6 76.8 75.6 75.7
Selling, general and administrative expenses to net sales 14.7 19.5 23.5 20.4 19.0 18.6
Net income to net sales 0.8 2.3 1.3 0.6 3.9 3.7
Return on equity (ROE) 4.6 6.9 3.1 2.0 13.4 14.1
Net income to total assets 2.1 4.3 2.0 1.2 7.7 7.7
Asset turnover (times) 2.6 1.9 1.6 1.9 2.0 2.1
Equity ratio (Note 5) 38.2 60.2 63.4 65.4 58.7 57.2
Other Year-End Data 2012 2011 2010 2009 2008 2007
Number of shares outstanding (Note 5) 42,220,800 42,220,800 42,220,800 42,220,800 42,220,800 42,220,800
1. The translations of Japanese yen amounts into U.S. dollar amounts are included solely for the convenience of readers outside Japan and have been made at the rate of \82.19 to $1, the approximate rate of exchange at March 31, 2012.
2. Equity (\57,708 million in 2012) = total equity - minority interests.
3. From the fiscal year ended March 31, 2007, total equity includes minority interests in accordance with the enforcement of Japan's Corporate Law.
4. Net cash provided by operating activities + net cash used in investing activities
5. These figures do not include any adjustments for the execution of a 2-for-1 stock split in April 2006.
6. The above figures included treasury stock of 50,484 shares in 2007, 50,236 shares in 2008, 50,212 shares in 2009, 50,296 shares in 2010, 50,734 shares in 2011 and 50,862 shares in 2012. On April 1, 2006, the Company executed a 2-for-1 stock split.
1. Integration Progress2. Medium-Term Business Plan3. Medium-Term Business Plan
Progress: Promoting Fusion of Operations for Maximizing Synergies
Gross profit to net sales 16.7 22.6 25.4 23.2 24.4 24.3
Operating income to net sales 2.0 3.1 1.9 2.7 5.4 5.7
Cost of sales to net sales 83.3 77.4 74.6 76.8 75.6 75.7
Selling, general and administrative expenses to net sales 14.7 19.5 23.5 20.4 19.0 18.6
Net income to net sales 0.8 2.3 1.3 0.6 3.9 3.7
Return on equity (ROE) 4.6 6.9 3.1 2.0 13.4 14.1
Net income to total assets 2.1 4.3 2.0 1.2 7.7 7.7
Asset turnover (times) 2.6 1.9 1.6 1.9 2.0 2.1
Equity ratio (Note 5) 38.2 60.2 63.4 65.4 58.7 57.2
Other Year-End Data 2012 2011 2010 2009 2008 2007
Number of shares outstanding (Note 5) 42,220,800 42,220,800 42,220,800 42,220,800 42,220,800 42,220,800
1. The translations of Japanese yen amounts into U.S. dollar amounts are included solely for the convenience of readers outside Japan and have been made at the rate of \82.19 to $1, the approximate rate of exchange at March 31, 2012.
2. Equity (\57,708 million in 2012) = total equity - minority interests.
3. From the fiscal year ended March 31, 2007, total equity includes minority interests in accordance with the enforcement of Japan's Corporate Law.
4. Net cash provided by operating activities + net cash used in investing activities
5. These figures do not include any adjustments for the execution of a 2-for-1 stock split in April 2006.
6. The above figures included treasury stock of 50,484 shares in 2007, 50,236 shares in 2008, 50,212 shares in 2009, 50,296 shares in 2010, 50,734 shares in 2011 and 50,862 shares in 2012. On April 1, 2006, the Company executed a 2-for-1 stock split.
1. Integration Progress2. Medium-Term Business Plan3. Medium-Term Business Plan
Progress: Promoting Fusion of Operations for Maximizing Synergies