Review of the 2016 Medium-Term Management Plan and Formulation of the Next Medium-Term Management Plan

「Based on a review of the medium-term management plan and the business environment expected at present, we formulated a new medium-term management plan, “Step Up AZUMA2023,” aimed at improving earnings power and capital efficiency,」

「In the final year of the medium-term management plan, titled “Azuma Challenge Next100: Toward a New 100 Years,” whose basic policy is to make the 3-year period one in which we steadily implement awareness reform and build its foundation in order to create a new corporate culture that continues to embrace challenges toward the next 100 years, we are working as one group to enhance corporate value while thoroughly implementing measures to prevent the spread of COVID-19, based on three key group priorities: (1) transforming the corporate culture, (2) strengthening the Group’s sales capabilities, and (3) enhancing the six business domains.」

「In the final year of the medium-term management plan, titled “Azuma Challenge Next100: Toward a New 100 Years,” whose basic policy is to make the 3-year period one in which we steadily implement awareness reform and build its foundation in order to create a new corporate culture that continues to embrace challenges toward the next 100 years, we are working as one group to enhance corporate value while thoroughly implementing measures to prevent the spread of COVID-19, based on three key group priorities: (1) transforming the corporate culture, (2) strengthening the Group’s sales capabilities, and (3) enhancing the six business domains.」

「As a more specific strategy for its “vision for the future,” in the final year of the medium-term management plan “Azuma Challenge Next100: Toward the Next 100 Years,” whose basic policy is to make the 3 years a period for steadily implementing reforms in awareness and laying the foundations for creating a new corporate culture that continues to embrace challenges toward the next 100 years, the group is working as one on measures aimed at increasing corporate value based on 3 key group challenges: (1) transforming the corporate culture, (2) strengthening the group’s sales capabilities, and (3) enhancing the 6 business areas.」

「As a more specific strategy for its “vision for the future,” in the second year of the medium-term management plan “Azuma Challenge Next100: Toward the Next 100 Years,” whose basic policy is to make the 3 years a period for steadily implementing reforms in awareness and laying the foundations for creating a new corporate culture that continues to embrace challenges toward the next 100 years, the group is working as one on measures aimed at increasing corporate value based on 3 key group challenges: (1) transforming the corporate culture, (2) strengthening the group’s sales capabilities, and (3) enhancing the 6 business areas.」

「As a more specific strategy for its “vision for the future,” in the second year of the medium-term management plan “Azuma Challenge Next100: Toward the Next 100 Years,” whose basic policy is to make the 3 years a period for steadily implementing reforms in awareness and laying the foundations for creating a new corporate culture that continues to embrace challenges toward the next 100 years, the group is working as one on measures aimed at increasing corporate value based on 3 key group challenges: (1) transforming the corporate culture, (2) strengthening the group’s sales capabilities, and (3) enhancing the 6 business areas.」

「As a more specific strategy for its “vision for the future,” in the second year of the medium-term management plan “Azuma Challenge Next100: Toward the Next 100 Years,” whose basic policy is to make the 3 years a period for steadily implementing reforms in awareness and laying the foundations for creating a new corporate culture that continues to embrace challenges toward the next 100 years, the group is working as one on measures aimed at increasing corporate value based on 3 key group challenges: (1) transforming the corporate culture, (2) strengthening the group’s sales capabilities, and (3) enhancing the 6 business areas.」

「In fiscal 2018, the first year of the medium-term management plan “Azuma Challenge Next100: Toward the Next 100 Years,” the group worked on 3 key group challenges, primarily increasing the volume handled by the logistics business, and operating revenue got off to a solid start toward the target of ¥44.0 billion for the final year of the plan. However, ordinary profit fell short of the first-year target because subcontracting and fuel costs increased.」

「As a more specific strategy toward the desired future state, the Group launched from the current fiscal year its new medium-term management plan, Azuma Challenge Next100 — Toward the Next 100 Years, based on the basic policy of making the plan a “three-year period” for steadily implementing awareness reform and building its foundation in order to create a new corporate culture that continues to “take on challenges” for the next 100 years, beyond the milestone year of the company's 100th anniversary. Based on three key Group priorities — (1) transforming the corporate culture, (2) strengthening the Group's sales capabilities, and (3) enhancing its 6 business domains — the Group is working together on initiatives aimed at enhancing corporate value.」

「As a more specific strategy for its “vision for the future,” the company launched in April this year the medium-term management plan “Azuma Challenge Next100: Toward the Next 100 Years,” whose basic policy is to make the 3 years a period for steadily implementing reforms in awareness and laying the foundations for creating a new corporate culture that continues to embrace challenges toward the next 100 years beyond the milestone of the company’s 100th anniversary,」

「As a more specific strategy toward the desired future state, the Group launched in April this year its new medium-term management plan, Azuma Challenge Next100 — Toward the Next 100 Years, based on the basic policy of making the plan a “three-year period” for steadily implementing awareness reform and building its foundation in order to create a new corporate culture that continues to “take on challenges” for the next 100 years, beyond the milestone year of the company's 100th anniversary. Based on three key Group priorities — (1) transforming the corporate culture, (2) strengthening the Group's sales capabilities, and (3) enhancing its 6 business domains — the Group is working together on initiatives aimed at enhancing corporate value.」

「Against this business backdrop, based on a review of the “16 Medium-Term Management Plan” and changes in the future business environment, our group formulated a new “vision for the future” and the medium-term management plan “Azuma Challenge Next100: Toward the Next 100 Years” for the 3 years from fiscal 2018 through fiscal 2020, in order to achieve sustainable growth over the long term.」

「At the same time, by reviewing the “16 Medium-Term Management Plan” and identifying and assessing its achievements and shortcomings, we will identify the issues to be addressed in the “Next Medium-Term Management Plan.” We will then formulate the “Next Medium-Term Management Plan” as the next step toward realizing the group’s goal of becoming “AZUMA, an integrated logistics company,” and pursue further growth aimed at increasing corporate value.」