Review of the Revenue Portfolio and Improvement in Income and Expenditure

「In the customs-clearance business, import arrangements for general-purpose resins and other products generated an increase in new orders, and import and export handling volume rose 4.3% from the previous period to 641 thousand tonnes.」

「In addition to further expanding our handling of recycled PET resin and expanding imports of chemical-industry raw materials such as commodity resins, we also worked to develop new business relationships.」

「We are also working to further expand the handling of chemical-industry raw materials, including recycled PET resin, and develop new business.」

「In the domestic logistics business, operating revenue was ¥22,484.694 million, up 5.5% year on year, and segment profit was ¥2,560.485 million, up 15.8%.」

「Revenue from the domestic logistics business was ¥11,269.089 million, up 5.0% year on year. Segment profit was ¥1,366.349 million, up 18.7%, reflecting higher freight volumes, the effects of pricing adjustments and the absence of the one-time costs incurred in the previous fiscal year for opening the Otsu Sales Office at the Shiga Branch.」

「In the warehousing division, we will continue efforts to collect clear and appropriate fees and respond promptly to improving the balance of income and expenses at each location. In the transportation division, we will strengthen our transportation sales capabilities and earning power in cooperation with the Sales Headquarters. In the international freight division, we will work to strengthen synergies with the subsidiary Tespack, expand our overseas agent network and enhance our competitiveness.」

「Operating revenue in the international freight business was ¥3,597.496 million, up 15.8% year on year, while segment profit was ¥371.463 million, up 26.9%. Although profit was affected by rising raw-material prices for packaging materials and other items, the increase in the handling of the more profitable packaging business and other factors led to the improvement.」

「Operating revenue in the international cargo business was ¥2,377.362 million, up 16.6% year on year, and segment profit was ¥233.865 million, up 22.6%. Although the business was affected by increases in raw material prices, including packaging materials, the increase was driven by expanded transactions with existing customers and growth in the number of new customers.」

「Segment profit increased due to the provision of on-site cargo-handling services drawing on the company's logistics expertise, changes to the cargo mix, rate revisions and other factors.」

「In the warehousing business, the balance of stored cargo declined from the same period of the previous year due to progress in inventory adjustments and other factors, but inbound and outbound cargo volume and cargo turnover increased as cargo movements recovered. As a result, operating revenue in the warehousing business was ¥5,043.623 million, up 1.2% year on year, and segment profit was ¥963.604 million, up 11.6%, reflecting the provision of on-site cargo-handling services drawing on the company's logistics expertise, rate revisions and changes to the cargo mix.」

「In the warehousing business, inventory levels declined from the same period of the previous year as inventory adjustments progressed, but inbound and outbound cargo volumes and the cargo turnover rate increased as cargo volumes recovered. As a result, operating revenue in the warehousing business was ¥3,352.014 million, up 0.8% year on year, and segment profit was ¥658.904 million, up 17.7%, reflecting the effects of providing on-site cargo-handling services drawing on our logistics expertise, revising rates, and reviewing the cargo mix.」

「In the warehousing business, the balance of stored cargo was declining from the same period of the previous year, but inbound and outbound cargo volume and cargo turnover increased as cargo movements recovered. As a result, operating revenue in the warehousing business was ¥1,672.994 million, up 1.4% year on year, and segment profit was ¥342.731 million, up 42.6%, reflecting the provision of on-site cargo-handling services drawing on the company's logistics expertise, rate revisions and changes to the cargo mix.」

「We will continue working to shift toward more profitable cargo and use our assets more effectively.」

「The balance of stored cargo also increased through the use of re-storage locations. As a result, operating revenue in the warehousing business was ¥4,984.926 million, up 1.8% year on year, and segment profit was ¥863.467 million, up 42.0%, reflecting the increase in stored cargo, the provision of on-site cargo-handling services drawing on the company's logistics expertise, rate revisions and partial changes to the cargo mix.」

「In the warehousing business, inbound and outbound cargo volume and cargo turnover declined from the same period of the previous year, but the balance of stored cargo increased through the use of re-storage locations. As a result, operating revenue in the warehousing business was ¥3,325.215 million, up 2.0% year on year, and segment profit was ¥559.659 million, up 35.6%, reflecting the increase in stored cargo and the effects of rate revisions and partial changes to the cargo mix.」

「We will continue working to shift toward more profitable cargo and use our assets more effectively.」

「To return to a growth trajectory, we will implement the 6th Medium-Term Management Plan with a sense of urgency and strong determination, while continuously pursuing initiatives to review our earnings portfolio and improve the balance of income and expenses.」