Aiming to be a True - Kintetsu World · PDF fileand passion, and a pioneering spirit that...

Services & Strength

Air Freight

Sea Freight

Logistics

China

Emerging Markets

Global Network

Business Lines

Service Framework

CSR

Corporate Data, History, etc.

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Aiming to be a True “Global Logistics Partner”

Corporate PhilosophyCorporate Philosophy

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.

We at Kintetsu World Express, Inc. shall create new values and optimal environments

through our provision of cargo logistics services in order to contribute to the development of

a global community together with our clients, shareholders and employees.

KWE’s Five Regional Management System

KWE Group

Japan

Europe, Middle East& Africa

East Asia & Oceania

The Americas

Southeast Asia

Contents

Providing Logistics Services Tailored to Each Customer around the GlobeWe 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.

Global Network Business Lines Service Framework CSR Corporate DataServices & Strength

KWE’s Network Advanced Global Information System

Using our Global Network to Provide the Broadest Possible Forwarding ServicesEver since KWE’s founding, air freight forwarding has been our core business. In addition to the semiconductors, electronic components, and other electronics-related 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-related items (medical and pharmaceutical), 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.

04 Kintetsu World Express, Inc. Kintetsu World Express, Inc. 0302 Kintetsu World Express, Inc.

Transport Services that Make Good Use of KWE’s Global Network

Broad Range of Items Forwarded

ULD Intact Delivery Service Protects Customers’ Valuable Merchandise

High-quality Customs Clearance as Part of One-Stop Forwarding

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Transport Services that Make Good Use of KWE’s Global Network ULD Intact Delivery Service Protects Customers’ Valuable Merchandise

High-quality Customs Clearance as Part of One-Stop Forwarding

One of the advantages of KWE’s international air freight 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.

Air FreightSea FreightAir Freight Logistics China Emerging Markets

KWE sorts the air freight 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.

KWE makes use of its advanced global information system to offer high-quality services through its network of 333 directly operated business bases located in 203 cities in 31 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.

Advantages of KWE’s ULD Intact Delivery Service

Prevents damage to freight

Very safeKWE 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 outBecause 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 splitPrevents freight from being left at the airport.

Broad Range of Items Forwarded

The types of cargo change globally in accordance with industrial and economic trends. KWE handles all types of freight by using the most appropriate types of transport.

Main Items Transported

ElectronicsElectronic components, semiconductor-related products (semiconductors and production equipment), digital household appliances, computers and peripherals, smartphones and tablet PCs and liquid crystal-related products

Automotive-related itemsAuto parts (knockdown components, electrical components, repair parts, etc.), auto accessories (car navigation and car audio systems, etc.), prototype vehicles, tires

Healthcare and chemical itemsMedical equipment and instruments, pharmaceuticals, investigational new drugs, cosmetics, chemicals

Other cargoApparel-related products, aircraft-related items, energy-related products, machine tools and construction machinery, plant-related freight, wine



Meticulous Forwarding of Factory Equipment and Specialized Freight

Buyer’s Consolidation Service

“Hot Consolidation Service”

Global Expansion of LCL Service

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Meticulous Forwarding of Factory Equipment and Specialized Freight

Buyer’s Consolidation Service

“Hot Consolidation Service”

Demand for high-speed, consolidated sea 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 sea 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.

Global Expansion of LCL Service

KWE offers its own LCL (Less than Container Load) consolidated forwarding service as one of its core businesses. 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.

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 sea shipment. KWE offers its customers optimal service by using its own infrastructure in combination with sea and air freight 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.

We apply the know-how that we acquired through our meticulous air freight 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 air freight forwarding division, taking advantage of our ability to offer finely tuned services offered at the same level as our air freight forwarding services. The high-quality services we provide to our customers’ satisfaction have received acclaim from many fields.

The Same Meticulous KWE Service, Also by SeaTransport modes have become more diverse and sea freight forwarding demand has grown due to developments such as the spread of supply chain management (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 sea freight forwarding peripheral services, and combine them with air freight forwarding and logistics in order to provide customers with optimal sea freight forwarding services.

Sea Freight

Transport of large medical equipment Transporting wind power generating equipment

Customer Final destination

PO data

PO

Shipment information

Buyer's consolidation

Shipment information

Container load manifest

Container load manifest

KWE warehouse Port of origin Destination

port

KWE arrival pointKWE departure pointSupplier A

Supplier B

Supplier C

PO Tracing Receiving Export Lading ArrivalShipment status is monitored by communicating with suppliers

Goods are received

Goods are loaded in containers and shipped

Issuance of bill of lading and container load manifest

Customs clearance and delivery

Lead time reduction

• CFS cut-off date is one day earlier than normal

• Freight can be collected on the CFS cut-off date

• The delivery date to the customer after the arrival in Japan is at least one day earlier than before

Quality assurance

• Direct operation by KWE prevents damage to freight

• Freight is collected by KWE’s own trucks

Advantages of Our “Hot Consolidation Service”

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Shipping schedules updated on our website

A web-based booking system

Sea FreightAir Freight Logistics China Emerging Markets



Advanced, Customized Logistics Services

Strong Support from Cutting-Edge, Strategic Distribution Bases

High-Quality Worldwide Logistics Services that Handle Diverse Cargo

The Ability to Offer Supply Chain Management Solutions Based on Thorough Assessment of a Client’s Existing Situation

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Strength 4Advanced, Customized Logistics Services

Strong Support from Cutting-Edge, Strategic Distribution Bases

High-Quality Worldwide Logistics Services that Handle Diverse Cargo

The Ability to Offer Supply Chain Management Solutions Based on Thorough Assessment of a Client’s Existing Situation

Healthcare LogisticsIn 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.

KWE provides high-quality logistics services in many major world cities. We handle a wide range of products, including electronics-related products, automotive products, apparel-related products, aircraft parts, healthcare-related products. We design and implement optimal solutions based on a good grasp of the particular characteristics of the diverse items that we handle.

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.

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.

Based on prel iminary interviews, determine a theme or themes that address the problems that a client currently faces.

Study the existing situation by g a t h e r i n g d a t a a n d interviewing relevant parties, e t c . , t h e n a n a l y z e t h e information that has been collected.

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.

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.

Toronto, Canada Incheon, South Korea Delhi, India Johannesburg, South Africa Singapore Amsterdam, Netherlands

Steps in the Adoption of a KWE Solution

KWE Solutions

4PL3PL PO management

VMI

WarehousingServices

TransportServices

PO finance (VMI finance)

Buyer’s consolidation JIT

Cross dock

Nonresident inventory management

RMA

Call centers

Step 1Set up theme Study and analyze Test and verify problems Offer a proposal Start operation

Step 2 Step 3 Step 4 Step 5

Global Supply Chain Logistics

Ordering Procurement Production Inventories

Global Logistics Systems (inventory information/ in & out information/ transport information/ purchase order information/ packing list information/ documentation

SalesReverse logistics

(Returns and recalls)

Proxy inspection/ Pre-delivery inspection

Value added service for logistics

Warehouse management/ Inventory control

Management of transport containers (Sky Cubes) and pallets

Measuring CO2 emissions

International transport, customs clearance, delivery/ Track & Trace

Providing High-Quality, Advanced Logistics ServicesMany companies have been introducing SCM, and their logistics-related demands are becoming more sophisticated and diverse. KWE combines 187 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

In our 3PL (third-party logistics) business, we provide high-level solutions for diverse problems.

Distribution bases equipped with cutting-edge facilities support the extremely high reliability of our logistics services.

Examples of solutionsLogistics consulting PO (Purchase Order) managementInventory control management Assembly works Call center functionsReverse logistics (RMA): Return Material Authorization Cross-dock operationsVMI (Vendor Managed Inventory) Project managementProduct inspection

Example: No. 4 Baraki Terminal (Chiba, Japan)Advanced, intelligent facility equipped with global information systemServices provided include storage, all types of distribution processing, and bonded and other distributionFeatures include air-conditioning facilities, antistatic floors and dust control, earthquake resistance, and 24-hour securityCertified for quality (ISO9001), TAPA Class AAbility to handle healthcare products (licensed to manufacture medical equipment, pharmaceuticals, cosmetics, and to sell and rent medical devices that require high-level management); certified for ISO13485; full-time pharmacists on staff



KWE’s Network in China

Subsidiaries Offices

Changsha

ChongqingWuhan

Nanchang

NanningHong KongGuangzhou

ShenzhenDongguan

ZhuhaiZhong Shan

Yantian

Xiamen

Fuzhou

Wenzhou

Ningbo

Hangzhou

Hefei

Nanjing

Wuxi

Yangzhou

LianyungangHuangdao

QingdaoYantai

Nantong

Suzhou Kunshan

Zhengzhou

Jinan

Shijiazhuang

TianjinTaiyuan

Xian

Yinchuan

Lanzhou

Urumqi

Chengdu

Kunming

HuhhotBeijing

Dalian

Shenyang

Changchun

Harbin

Shanghai


One of the Biggest Networks in the Industry

Active Development of Bonded Logistics Services

High-Quality, One-Stop Service —Full Logistics/Domestic Trucking Services

Rapid Air Freight Forwarding Services

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One of the Biggest Networks in the Industry High-Quality, One-Stop Service —Full Logistics/Domestic Trucking Services

In addition to air and sea 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.

Rapid Air Freight 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 air freight forwarding from Japan to customs clearance and delivery, we can promptly notify the client when delivery is complete.

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, 2012, we had 16 subsidiaries operating 117 locations in 47 cities. China's interior has been attracting attention recently, and we established joint venture companies there in 2011, in Chongqing and Chengdu. We intend to continue expanding our service network in line with our customers’ business needs.

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.

Shanghai Waigaoqiao warehouse Shenzhen warehouse

Dalian warehouse Chongqing warehouse

KWE’s Pioneering Services in ChinaChina’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.

China

Shanghai Pudong Airport Free Trade Zone

To Europe To the Americas

VMI

Transport services(air freight, sea freight / high-speed ferries)

Transport services within China

Bonded logistics services

Logistics services

KWE VMI warehouseKWE VMI warehouse

KWE warehouseKWE warehouseProduction baseProduction base

Component production baseComponent production base

Component production baseComponent production base




Service Network in Russia and Central/Eastern Europe

Offering World-class Distribution Services in India

Expanding Our Service Infrastructure in Southeast Asia and Surrounding Countries

Developing Our Business in the Middle East

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Service Network in Russia and Central/Eastern Europe Expanding Our Service Infrastructure in Southeast Asia and Surrounding Countries

In addition to our existing subsidiaries in Thailand, Vietnam, and Indonesia, we will establish specialized logistics companies in each of these countries so that we can offer comprehensive distribution services with integrated air and sea freight forwarding.

In April 2010, we also opened a delegate office in Bangladesh, where many apparel manufacturers have begun operating in recent years, and we are considering starting to do business in Southeast Asia and surrounding countries where economic growth is expected to lead to increased transport demand in the future.

In 2010, we established Kintetsu World Express (Saudi Arabia) Ltd. as a joint venture with a Saudi Arabian company. We plan to use this as a core operating location from which we will expand into full-fledged handling of project-based cargo and oil and gas-related plant equipment. In 2011, we opened a logistics center in the cargo district of Dubai's new airport (DWC), from which we provide logistics services that meet our customers' needs.

Developing Our Business in the Middle East

Since establishing a local subsidiary in Russia in 1995, we have been steadily accumulating expertise in distribution, and currently have offices in Moscow, St. Petersburg, and Tolyatti. 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.

Offering World-class Distribution Services in India

Since establishing a local subsidiary in India in 1997, KWE has expanded its network there to include 21 operating locations. In June 2012, we teamed up with major Indian logistics firm Gati Ltd. to establish Gati-Kintetsu Express Pvt. Ltd., which gives us a delivery network that covers all of India with some 3,500 trucks. We can now offer time-specific delivery service and send GPS-based delivery completion notices. KWE intends to continue offering world-class distribution services and proposing optimal distribution solutions for our customers in India.

Office in Prague, Czech RepublicKWE Russia’s trucks

Chennai office Gati-Kintetsu's truck

Providing Full Support for Clients in Emerging CountriesAs 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, Southeast Asia and surrounding countries, and in the Middle East. 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.

Emerging Markets

Navanakorn Warehouse, Thailand Logistics facility outside Hanoi, Vietnam

Opening ceremony in Saudi Arabia Dubai Warehouse, UAE

Major Indian Bases

Hyderabad

ChennaiCoimbatore

Cochin

KolkataNagpur

DelhiNoida

Manesar

Ahmedabad

PuneMumbai

Bangalore




Southeast Asia

The AmericasThe Americas

Japan

JapanJapanJapan

Europe, Middle East & Africa

Europe, Middle East & AfricaEurope, Middle East & Africa

Kintetsu World Express (U.K.) Ltd.Kintetsu World Express (Deutschland) GmbHKintetsu 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) ABKintetsu World Express (Middle East) FZEKintetsu World Express (Czech) s.r.o.Kintetsu World Express (Saudi Arabia) Ltd.plus 3 other companies East Asia & Oceania

East Asia & OceaniaEast Asia & Oceania

Kintetsu World Express (HK) Ltd.Kintetsu World Express (Taiwan), Inc.Kintetsu World Express (Australia) Pty Ltd.Kintetsu World Express (Korea), Inc.Kintetsu World Express (China) Co., Ltd.Beijing 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.plus 8 other companies

Southeast Asia

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.Gati-Kintetsu Express Pvt. Ltd.PT. Kintetsu World Express IndonesiaPT. Kintetsu Logistics IndonesiaKintetsu World Express (Vietnam), Inc.Kintetsu Logistics (Vietnam), Inc.plus 1 other company

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.plus 3 other companies

The Americas

The AmericasKWE GroupKWE Group

Kintetsu World Express (U.S.A.), Inc.Kintetsu World Express (Canada) Inc.World Wide Customs Brokers Ltd.

Kintetsu Global I.T., Inc.KWE Reinsurance, Inc.

KWE’s Global Network Strongly Supports Customers

The KWE Group’s 9,671 employees work around the clock at 333 locations in 203 cities in 31 countries (as of March 31, 2012). 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.

Other

In order to promote flexible global operation, 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.

Global Network



Further expanding our excellent one-stop international logistics services

Air Freight 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 air freight 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 air freight handled by KWE is ranked among the top 10 in the world.

Logistics 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.

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.

Sea Freight In the field of sea freight forwarding, KWE is a non-vessel operating common carrier (NVOCC), making use of the shipping lines’ transportation services. The flow of sea freight forwarding is basically the same as that of air freight: In addition to transporting full container loads, we provide consolidated services whereby we pack less-than-container loads into sea 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 sea-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.

Other Operations

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.

In addition to electronics-related products, we deliver all types of freight from automotive, healthcare-related products, apparel to aircraft-related products in ways that best suit our customers’ needs, whether by air, sea, or land.

Main air freight export itemsDigital electronic appliances, computers, semiconductors and other electronics products and components

Telecommunications devices and components, including mobile phones

Automotive parts and components

Healthcare and chemical products

Machine tools and construction machinery

Main air freight import itemsElectronics products and components, including smartphones, computers, semiconductors and their manufacturing equipment


Apparel-related products

Automotive parts and components

Beaujolais wine, etc.

Main logistics services and systemsLogistics 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)

Project management

Product inspection

Main sea freight export items

Household electric appliances

Raw materials

Parts and semi-finished goods (such as mobile phone components)

Automotive-related products

Plant equipment transportation

Aircraft-related products

Equipment to be used at events and for broadcasting (such as for international sporting events, musicals and exhibitions)

Main sea freight import itemsComputers and their peripherals

Household electric appliances

Automotive-related products


Apparel-related products

General merchandise and retail goods

Main domestic servicesDomestic air freight forwarding

Pick-up and delivery of export and import freight

Customized packaging, transport, and installation of precision machinery

Temporary staffing, primarily for logistics and trading businesses

Transport of art objects and other materials for events and exhibitions

Hand carry service

IT and other types of support for 3PL

Five domestic affiliates provide specialized services

Kintetsu Logistics Systems, Inc.

Kintetsu World Express Delivery Co., Ltd.

Kintetsu Cosmos, Inc.

Kintetsu World Express Sales, Inc.

Kintetsu World Express Shikoku, Inc.

Business Lines



1948 1955 1969 1970 1989 1994 1998 2000 2002 2003 2005 2006 2008 2010

Establishment ofOverseas

Subsidiaries

The Five Regional Management System that Supports KWE’s Global Network Domestic Affiliates Provide Advanced, Specialized Services

Japan

The Americas

The region’s main businesses are air freight and sea freight forwarding, and logistics. Some of the 32 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/or sea transport with logistics services, this region leads the KWE Group.

Kintetsu Logistics Systems, Inc. (established 2002)

Founded as a spin-off of KWE’s domestic air freight 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 World Express Sales, Inc. (established 1998)

Kintetsu World Express Sales, Inc. offers global supply chain solutions that combine commercial distribution and logistics services to support a wide variety of activities including cultural exchange or corporate events; planning and execution of agricultural and marine product export promotions; transport of exhibitions and art objects; transport, installation and process control of precision machinery in overseas factories; international trade and buying agent services (business process outsourcing).

Kintetsu World Express Shikoku, Inc. (established 2006)

Kintetsu World Express Shikoku, Inc. has strong ties to the local business community in Japan's Shikoku region. In addition to regular sea and air freight services, it offers comprehensive international forwarding services including transport of equipment for factory relocations and overseas road rallies, and handling of exhibits in overseas trade fairs.

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.

United States, Canada, Latin 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 electronics-related products, automotive products, and healthcare-related items, 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 & AfricaUnited 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 air freight hub is Frankfurt, while our sea freight hub is Rotterdam. We established a joint venture in Saudi Arabia in 2010, and are enhancing our services in the Middle East.

East Asia & OceaniaHong 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 16 companies in China, operating 117 locations in 47 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 sea transport.

Southeast AsiaSingapore, Malaysia, Thailand, India, Indonesia, Vietnam, Bangladesh, etc.

This region centers around Singapore and Malaysia and covers almost all countries in southeast Asia. Demand for intra-Asia logistics is strong, and is expected to expand greatly in the future, including in the emerging markets of India and Vietnam. In 2011, we established logistics specialist companies in Thailand and Indonesia.

Hong Kong

United States

Singapore

United Kingdom

Germany

Taiwan

Malaysia

Thailand

France

Netherlands

Belgium

Australia

Canada

Italy

Russia Philippines

Ireland

South Africa

South Korea

China

Switzerland

India Saudi Arabia

Indonesia

United Arab Emirates

Vietnam

Sweden

Czech Republic

A Pioneer in Networks and ServicesFrom the inception of Japan’s air freight 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.

Service Framework



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 communityThe 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:

Quality Management Conference Warehouse monitoring system at Narita terminal

TQM training Overseas training

Business Leader Global Seminar Sunshine Blogs

ISO14001 Certificate

Separation of waste materials in order to facilitate recycling (Narita Terminal)

Introducing hybrid vehicles

OHSAS18001 Certificate

Contribute to the Global Community through Our International Distribution Businesses

KWE Group

Customers

Shareholders,Investors

LocalResidents

Business Partners

Employees

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.

Quality Management Systems at 20 of our subsidiaries, including KWE Japan, were ISO9001 certified as of March 2012.

We had 19 terminals around the world with Class A certification by TAPA (Transported Asset Protection Association) as of March 2012, testifying to the security of our transport facilities and systems.

Maintaining Our “Customer-First” Orientation as We Strive for Quality Improvements

Examples of Concrete Achievements

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.

. Training for all levels including follow-up training for new hires, supervisors’ 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 and Sunshine meetings that foster communication between board members and employees

Examples of Concrete Achievements

Human Resource Development That Values People

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.

Building Corporate Contributions to Society and the Environment

ISO14001 CertificationIn 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 environmen-tal preservation and pollution prevention in order to contribute to global society.

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.

Reducing CO2 Emissions to Realize a Low-Carbon Society — Reducing Electric Power Consumption, Waste, and Reusing Resources

In addition to actively working to conserve electric power, we make every effort to implement the “3Rs” (reduce, reuse, and/or recycle) in order to minimize generation of solid waste, especially regarding materials specific to our industry such as wooden pallets, plastic wrap, plastic bands, cardboard cartons, and office paper.

Kintetsu World Express Delivery Co., Ltd. (KWED), which delivers freight by automotive, has begun introducing hybrid trucks. Also, Japan’s Eco-Mo Foundation awarded “Green Manage-ment” certification to KWED's Kanto Logistics Sales Office No. 1 and Kanto Logistics Sales Office No. 2, in recognition of such initiatives as implementing ecologically sound driving techniques and improving vehicle maintenance, inspections, and fuel efficiency.

Reducing Electric Power Consumption･Controlling operation of heating and cooling, lighting, and office equipment･Using LEDs for some of our lighting needs

Wooden Pallets. As a general rule, reuse. Ask other businesses to use surplus palettes. Recycle broken or otherwise unusable pallets

as wood chips

Plastic Wrap and Bands. Recycle all as plastic material

Cardboard Cartons and Used Office Paper. Recycle cardboard used in packing. Recycle non-confidential documents

CSR



Corporate Data(As of March 31, 2012)

History

Kintetsu World Express, Inc. (KWE)

Head office: 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 : 1,092 (Kintetsu World Express, Inc.)employees 9,671 (worldwide on a consolidated basis)

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 air freight forwarding business; trucking company agent 2. Air freight forwarding agency 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

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 air freight 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 JASDAQ 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

2011 Headquarters relocated from Chiyoda Ward to Minato Ward in Tokyo.

Visit the KWE WebsiteThe KWE Group strives to maintain a full-featured website as a tool to provide information on our services and business to the public.

http://www.kwe.com

KWE Japan

Global Site

China Information

India Information

Investor Relations

Services & Solutions

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