Annual Report 2012

epresentative offices as well as establishing localsubsidiaries featuring various specialized functions.Moreover, we are aggressively undertaking M&Ato accelerate our global business expansion. In fiscal2011, Associated Global Systems, Inc. (AGS) becamea wholly owned subsidiary of Nippon Express U.S.A.,Inc. AGS, a mid-sized logistics company based in theUnited States, is engaged in domestic transport andboasts a solid reputation for the specialized transportof precision instruments and oversized cargo. Thesecapabilities have allowed AGS to build a largecustomer base in the United States. Combining thestrengths of Nippon Express in international transportwith the solid logistics operations of AGS in the UnitedStates has enabled the Group to expand in a singlestroke the scope of the services it provides tocustomers of both companies.vehicles as of March 31, 2012, exceeding Groupwideprojections. Moreover, the Nippon Express Group hassignificantly reduced power use in Japan thanks to itsenergy conservation measures.Q5Please tell us more about the medium-termmanagement plan’s second basic strategy:Promotion of Strategic EnvironmentalManagementQ6Moving forward, please describe NipponExpress’ initiatives regarding the mediumtermmanagement plan’s third basic strategy:Enhancement of Management InfrastructureThe Nippon Express Group is steadily promotinginitiatives to reduce environmental impact byemphasizing the development and provision ofenvironmentally friendly logistics products and servicesthat utilize low-environmental load rail and shiptransport. In addition, the Group conducts greeninitiatives aimed at achieving a recycling society,including the promotion of ecodriving; saving energyat business bases, and conducting CO 2 reductionprojects through its overseas network. Owing to ourproactive efforts, we owned 5,638 eco-friendlyThe Group’s very first overseas subsidiary wasestablished in the United States 50 years ago. Sincethen, we have established locally based subsidiaries invarious regions worldwide. As part of efforts tointegrate management operations while ensuring itsability to accurately respond to economic conditions,legal systems and needs that differ from region toregion, the Group appoints officers as regional generalmanagers to oversee operations in the Americas,Europe, East Asia, and South Asia & Oceania. Theappointment of these regional general managers hasNIPPON EXPRESS Annual Report 20127