Achieving ¥120 billion in logistics revenue under the Fourth Medium-Term Management Plan

「Against this backdrop of demand trends, in the logistics business (アルプス物流, Prime Market of the Tokyo Stock Exchange), we pursued expansion in three areas, namely regions, markets and customers, and services, using an electronic-component logistics platform centered on shared storage and shared collection and delivery.」

「In addition, the Company reorganized its domestic trunk-route delivery network, promoted the digitalization of its storage business and improved the efficiency of inbound and outbound warehouse operations, resulting in year-on-year increases in both sales and operating profit.」

「During the cumulative third quarter, sales increased in all areas of storage, transportation and imports and exports, mainly in Japan. In addition, the Company reorganized its domestic trunk-route delivery network, promoted the digitalization of its storage business and improved the efficiency of inbound and outbound warehouse operations, resulting in year-on-year increases in both sales and operating profit. As a result, logistics business sales for the cumulative third quarter were ¥58.7 billion, up 15.4% year on year, and operating profit was ¥4.7 billion, up 46.6% year on year.」

「During the six-month period ended in the second quarter, freight volumes, which had declined due to the impact of COVID-19, increased mainly in Japan across all areas of the storage, transportation, and import-export businesses. In addition, the reorganization of the domestic trunk-route delivery network, the promotion of IT adoption in the storage business, and efforts to improve the efficiency of inbound and outbound warehouse operations resulted in year-on-year increases in both net sales and operating income.」

「Against this backdrop of demand trends, in the logistics business (アルプス物流, First Section of the Tokyo Stock Exchange), we are focusing on developing satellite facilities in existing markets such as Japan and China, establishing facilities and networks in India and Eastern Europe, and expanding sales to existing customers, while pursuing new business opportunities.」

「Under these demand conditions, the logistics business ((株)アルプス物流, TSE First Section; reclassified from a Second Section issue to a First Section issue on 21 January 2021) pursued new sales expansion and, as a productivity measure, began operating a new warehouse in Japan equipped with large-scale automation equipment. In consumer logistics, we improved efficiency by introducing material-handling equipment based on a new concept. Overseas, we continued expanding our facilities and networks, and in China established a specialized customs-clearance subsidiary in August 2020 to strengthen our capabilities for expanding the import and export business by accelerating customs-clearance operations.」

「Under these conditions, as part of our efforts to improve productivity, we began operating a new warehouse in Japan equipped with large-scale automation equipment. Overseas, we continued expanding our facilities and networks, and in China established a specialized customs-clearance subsidiary in August to strengthen our capabilities for expanding the import and export business by accelerating customs-clearance operations.」

「Although restrictions resulting from COVID-19 remain, in the second year of the current three-year Fourth Medium-Term Management Plan, we will promote the following strategies and initiatives and seek to expand our business globally, with a focus on our core business activities.」

「In the logistics business, the Company launched its Fourth Medium-Term Management Plan in fiscal 2019, covering three years. Under the medium-term basic policy of “Delivering evolving ‘optimal logistics’ to more customers,” the Company will work to “achieve consolidated net sales of ¥120 billion” and “improve corporate quality.”」