Annual Report 2012

(1) Consolidated Financial Statements[Segment information](1) Outline of the reportable segmentsReportable segments of the Company are its organizational units whose individual financial results can be identified separately, andserve as the basis and subject of regular review by the Board of Directors, for the purpose of allocating management resources andevaluating business performance.The Company’s head office comprises functional headquarters including the Domestic Business Headquarters, InternationalBusiness Headquarters, and Sales Promotion Headquarters. Each headquarters is responsible for developing comprehensivestrategies for its products and services both in Japan and abroad, and engages in business activities based on such strategies.Under each headquarters, regional general managers are appointed to cover specific geographic regions as well as businessdivisions specializing in specific products and services, providing a structure that allows regional management and/or concernedfield offices to make optimum business decisions on their own.Under this principle, the Company has developed a segment structure in the form of matrix comprising segments by geographicalregion along with segments by products and services as classified based on mode of transportation such as air or marine, in whichthe domestic Distribution & Transportation business comprises five reportable segments including Combined Business, SecurityTransportation, Heavy Haulage & Construction, Air Freight Forwarding & Travel, and Marine & Harbor Transportation, whileoverseas Distribution & Transportation operations comprises four reportable segments, including the Americas, Europe, East Asia,and South Asia & Oceania, besides the two reportable segments outside Distribution and Transportation operations that areGoods Sales and Other.The Combined Business segment (Distribution & Transportation, domestic companies) includes subsidiaries/affiliates andbranches in each geographical region (area). However, it is still presented as one reportable segment because of their similarity in thenature of business as well as financial characteristics.Also, the Combined Business segment (Distribution & Transportation, domestic companies) is presented on a combined basiswith the Fine Arts business segment because of the similarity in the nature of business. Likewise, in Air Freight Forwarding &Travel (Distribution & Transportation, domestic companies), the Air Freight Forwarding business segment is presented on a combinedbasis with the Travel business segment. In each of the above cases, however, the impact of the presentation on a combinedbasis is minimal.54 NIPPON EXPRESS Annual Report 2012