PowerPoint プレゼンテーション

1.Measures taken in the second half of FY March 2006 and onwards
1. Measures taken in the second half of FY March 2006 and onwards
□　Aggressive development of measures in global cargo business
- Promote measures that will serve as stepping stones for
medium/long term business expansion ・Aggressive investment in warehousing business
Developed and improved warehouses in Dusseldorf and Munich, Germany (December 2005)
New distribution warehouse rolled out in Shanghai, China (January 2006)
New SCM warehouse launched in Chiba, Japan (June 2006)
・ Business expansions
Set up Nippon Express Tijuana, Mexico (March 2006)
Set up Nippon Express St. Petersburg, Russia (July 2006)
Opened a representative office in Wroclaw, Poland (March 2006)
・Business expansions through alliances
Establish MC NITTSU CHINA HOLDINGS CO., LTD. (holding company jointly established by
Nippon Express and Mitsubishi Corporation) (September 2005)
Launched regular truck transportation linking 80 cities in China (March 2006)
Made investment in a new air freight company jointly set up by All Nippon Airways and Japan
Post (April 2006)
1
All Rights Reserved,copyright 2006 Nippon Express CO.,LTD
1.Measures taken in the second half of FY March 2006 and onwards
□　Deployment of small cargo business
・Improved quality
Started “e-Issue Series”, a new invoice issuance system for Pelican Service (July 2005)
Expanded designated delivery zone to 6 zones from 4, thus improving quality (November 2005)
・Reinforced sales activities
Assigned to each branch a sales representative dedicated to handle small cargo
Promoted sales for short distance transport and small cargo
- The handling volume has seen a year-on-year upturn since April 2006
Domestic air cargo concentrated on B-to-B. A new product of specified mail delivery launched (February 2006)
Expanded sales of Privacy Guard
・Boosted operational efficiency
Jointly handle terminal work and distribution work with domestic
air cargo division and Nippon Express Group Companies.
2
All Rights Reserved,copyright 2006 Nippon Express CO.,LTD
1.Measures taken in the second half of FY March 2006 and onwards
□　Various measures to improve domestic revenues and reduce payments
— Although we were successful in substantially reducing labor costs, negotiations with our
customers on raising unit freight rates did not see sufficient progress —
・Cost reductions
Implemented career change support measure (favorable treatment for early retirement)
- involving 541 people and an annual effect of 4.6 billion yen
・Improved unit rates
Response to increasing costs due to steep rise in fuel prices
Track, domestic shipping, air-freight forwarding from November 2005
・Company-wide use of IT in accounting work
Process completed in October 2005
- Administrative Center functions will be developed and expanded in future
・ Create a new business division for heavy haulage and construction work.
3
All Rights Reserved,copyright 2006 Nippon Express CO.,LTD
1.Measures taken in the second half of FY March 2006 and onwards
□　Financial results for the past three years and projections for this fiscal year
Consolidated segment information　Operating margin
4
FY March
2005
FY March
2006
Japan
2.3
2.2
Americas
4.6
4.5
Europe
4.8
5.5
Asia/
Oceania
4.0
4.2
All Rights Reserved,copyright 2006 Nippon Express CO.,LTD
2.New Medium-Term Management Plan: Power-up Three-year Plan
(from April 2006 to March 2009)
2.New Medium-Term Management Plan: Power-up Three-year Plan
(from April 2006 to March 2009)
□　Five Power-up Items
z Power-up in sales
Try to strengthen sales by implementing measures based on the characteristics of each business.
Expand global business, enhance 3PL business, services specially made for each regions, and develop
new businesses
z Power-up at operational fronts
Development of human resources, quality improvement, sales promotion capability,
and improvement of operational efficiency, etc.
z Power-up in CSR practices
Compliance, risk management/security control, and environmental management
z Power-up in management practices
Effective use of assets, low cost, efficient use of funds, and IT, etc.
z Power-up in small cargo business
Try to solve management issues by promoting reforms in businesses.
5
All Rights Reserved,copyright 2006 Nippon Express CO.,LTD
2.New Medium-Term Management Plan: Power-up Three-year Plan
(from April 2006 to March 2009)
□　Target value
6
All Rights Reserved,copyright 2006 Nippon Express CO.,LTD
2.New Medium-Term Management Plan: Power-up Three-year Plan
(from April 2006 to March 2009)
□　Direction of business
Revenues Changes
(Unit: Billions of Yen)
Revenues Changes
Consolidated
Sales
Ordinary profit
FY March 2006 Results
1,793.9
(Balance after deduction of
on-consolidated profit: 497.7）
49
(Balance after deduction of nonconsolidated profit: 17.3）
Increase in revenue on non-consolidated basis
87.8
Overseas business
46.0
Overseas new consolidated companies
35.0
Nittsu Shoji, etc.
55.0
Consolidated/eliminations
(17.7)
Total
206.1
11
(Balance after deduction of
non-consolidated profit: 1.7）
Target for FY March 2009
2,000
(Total of all companies excluding
non-consolidated companies: 616）
60
(Total of all companies excluding nonconsolidated companies: 19）
Non-consolidated
Operating Revenues
Ordinary Profit
FY March 2006 Results
1,296.2
31.7
Global Business
37.0
３ＰＬ Business
49.0
Regional, new service
44.0
Reduction in handling volume, etc.
(42.2)
Total
87.8
1,384
Target for FY March 2009
7
9.3
41.0
All Rights Reserved,copyright 2006 Nippon Express CO.,LTD
2.New Medium-Term Management Plan: Power-up Three-year Plan
(from April 2006 to March 2009)
□　Outline of New Management Plan
・Boost the percentage of revenues from international business within total revenues (to 30% or 600
billion yen of total sales of 2 trillion yen after three years)
* International revenues = Sales by location (Americas＋Europe＋Asia/Oceania)
+ overseas operating revenues of parent company
・Reinforce competitive edge of region-specific business (revitalize overall domestic business by
strengthening cost performance, quality, marketability and proposal capabilities; undertaking
concentration, elimination and consolidation of organizations; and realigning sales force and workload)
8
All Rights Reserved,copyright 2006 Nippon Express CO.,LTD
2.New Medium-Term Management Plan: Power-up Three-year Plan
(from April 2006 to March 2009)
□　Currently ongoing activities in accordance with the Management Plan
・Expansion of international and overseas business
To
USA
To
Europe
To
Asia
Total
Ranking
Company name
Market
share（％）
Handling
weight(1,000t)
1
Nippon Express
20.8
60
2
Kintetsu World Express
13.7
40
3
Yusen Air & Sea Service
12.4
36
Ranking
Company name
Market
share（％）
Handling
weight(1,000t)
1
Nippon Express
19.8
53
2
Yusen Air & Sea Service
13.9
37
3
Kintetsu World Express
11.8
32
Market
share（％）
Handling
weight(1,000t)
Ranking
Company name
1
Nippon Express
22.4
151
2
Kintetsu World Express
15.5
104
3
Yusen Air & Sea Service
12.3
83
Ranking
Company name
Market
share（％）
Handling
weight(1,000t)
1
Nippon Express
21.2
276
2
Kintetsu World Express
14.1
183
3
Yusen Air & Sea Service
12.8
166
Ranking of market share in air cargo business
(export from Japan) for FY March 2006 (JAFA)
9
All Rights Reserved,copyright 2006 Nippon Express CO.,LTD
2.New Medium-Term Management Plan: Power-up Three-year Plan
(from April 2006 to March 2009)
・Business expansion in logistics within regions
Comparisons of warehouse area
(Unit: 1,000m2）
10
Region
Area
Japan (Nippon Express Sales Warehouse)
2,439
Americas
435
Europe
297
Asia/Oceania
459
All Rights Reserved,copyright 2006 Nippon Express CO.,LTD
2.New Medium-Term Management Plan: Power-up Three-year Plan
(from April 2006 to March 2009)
・Business expansion into more countries
37 Countries where our corporate group have made inroads
NETHERLANDS
U.K.
IRELAND
GERMANY
AUSTRIA
HUNGARY
CZECH
FINLAND
POLAND
SWITZERLAND
BELGIUM
LUXEMBOURG
SPAIN
PORTUGAL
FRANCE
ITALY
SOUTH AFRICA
UNITED ARAB EMIRATES
TURKEY
RUSSIAN FEDERATION
SINGAPORE
MALAYSIA
AUSTRALIA
NEW ZEALAND
CHINA
KOREA
TAIWAN
THAILAND
VIETNAM
INDONESIA
PHILPPINES
INDIA
11
U.S.A.
MEXICO
BRASIL
CHILI
CANADA
All Rights Reserved,copyright 2006 Nippon Express CO.,LTD
2.New Medium-Term Management Plan: Power-up Three-year Plan
(from April 2006 to March 2009)
・Expanding the number of consolidated companies by acquiring interests of joint companies
Current situations in Asia/Oceania Region
FY March 2006 Consolidated Results
Transport segment-Asia/Oceania Region
80,728 Million Yen
FY March 2006 Non-consolidated Results
Transport segment-Asia/Oceania Region
Breakdown
45,232 Million Yen
Non-consolidated company
2,181 Million Yen
Equity method affiliates
23,731 Million Yen
non-equity method affiliates
19,320 Million Yen
12
All Rights Reserved,copyright 2006 Nippon Express CO.,LTD
2.New Medium-Term Management Plan: Power-up Three-year Plan
(from April 2006 to March 2009)
・Expansion of 3PL (3-Party Logistics) business
Construction of new distribution warehouses
- response to demand for larger facilities and need for distribution warehouses
Building up human resources and know-how – through education, new hiring and M&A
Business deployments leveraged on the overall capabilities
- networks, warehouse, transport modes, operations, and information system
Major investments in buildings
Size(m2)
Scheduled
completion
Location
Usage
Chiba
Air Cargo
16,668
June 2006
Tokyo
Trunk room
22,737
January 2007
Osaka
Warehousing
service
47,242
April 2007
Kanazawa
Warehousing
service
18,965
April 2007
Yokohama
R & D facility
10,860
February 2007
Kyoto
Distribution
center
14,536
August 2007
Tokyo
(lease)
Terminal
38,481
May 2006
Tokyo
(lease)
Warehousing
service
56,710
December 2007
13
All Rights Reserved,copyright 2006 Nippon Express CO.,LTD
2.New Medium-Term Management Plan: Power-up Three-year Plan
(from April 2006 to March 2009)
・Improving services and expanding sales in regions
Expand businesses which can be differentiated
Response to new demands
Cost reductions
- handle work mainly by local employees and reduce management and clerical work
Efficient organizational structure
★Sales trend of differentiated services
★Response to new demands
14
All Rights Reserved,copyright 2006 Nippon Express CO.,LTD
3. Strengthening management structure in medium/long term
3. Strengthening management structure in medium/long term
・Strengthening capabilities of operational fronts → Expand revenues at local regions in Japan
Full scale entry into manpower dispatching service
Direct hiring of technical employees, who would be the future leaders of the company
Reduce the number of office clerks and improve their standards with the use of information
technology and hiring mid-career specialists
・Effective use and reorganization of assets → Boosting efficiency of assets
Concentration of small warehouses into large distribution warehouses
Use of smaller urban sites for multiple purposes
Draw up a plan for assets disposal or use from medium/long term perspectives
・Shift of business compositions → Improve profit margin
Towards general logistics including warehousing from transportation service mainly by vehicles
Shift our focus from transportation to forwarding service
Shift our focus from domestic business to international business
15
All Rights Reserved,copyright 2006 Nippon Express CO.,LTD