Global Logistics Partner

Major Policies
Our Japan region aims to make additional strides toward
establishing KWE as a logistics service provider offering ocean
freight forwarding, warehousing, and distribution processing
services in addition to our main business of international
airfreight forwarding. Also, it is the management team at
KWE's base in Japan that is primarily addressing Group-wide
implementation of the three strategies called for in Phase II of
our Medium-Term Management Plan: (1) develop new markets
(Russia, India, Middle East) and establish deeper roots in the
Chinese market, (2) expand types and volume of freight
handled through horizontal sales linking airfreight, ocean
freight, and logistics businesses, and (3) improve profitability.
In the year through March 2008, we will focus on the
following points:
In addition to our mainstay electronics-related products,
expand handling of automobile, medical, and chemical
products, and products for which worldwide transport
demand is increasing, such as machine tools, construction
machinery, and aircraft-related products.
Business Outline
The Tokyo office of Kintetsu World Express,
Inc. (KWE) is the core company of the KWE
Group, which operates 273 offices in 189
cities in 30 countries around the world.
KWE’s main line of business is
international airfreight forwarding, but the
Company also engages in international
ocean freight forwarding, logistics services,
and other businesses related to
international freight forwarding, such as
customs clearance. These businesses have
grown worldwide significantly because we
KWE’s Strengths and Market Position
The strength of the KWE Group lies in our
ability to provide one-stop logistics services
that integrate international airfreight
forwarding, international ocean freight
forwarding and warehousing and
distribution services backed by our welldeveloped
international service network,
excellent information systems and logistics
entrusted a good deal of authority to each
regional headquarters; however, it is
primarily the management group at our
base in Japan that formulates our corporate
vision and implements management plans
for the entire Group.
On a non-consolidated basis, 61.9% of
net sales* in the Japan region came from
airfreight exports, 21.5% from airfreight
imports, and 16.0% from ocean freight
(imports and exports). About 66% of the
airfreight exports consisted of high-tech
infrastructure, and talented staff.
Geographically, our strength lies in the
Asia-Pacific region, centering on Japan and
the rest of Asia and including the United
States. In recent years, we have succeeded
at expanding ahead of the competition —
especially in China and other parts of East
Asia — and we are widening our lead in
Report by Five Regions
Enhance bases in provincial cities in areas like Tohoku,
Hokuriku and Kyushu, in order to expand our sales network
in Japan.
Further reduce our cost-to-sales ratio by such means as
improving purchasing and more carefully managing sale
prices, in order to increase profitability.
items such as semiconductors and other
electronic components, digital electronic
appliances, telecommunications devices,
and LCD-related components. In Japan, we
moved more quickly than our competitors
to actively engage in logistics services, an
area where demand has rapidly increased
due to changes and increasing
diversification in the international cargo
logistics market in recent years.
*Based on simple addition
this region.
KWE is among the largest freight
forwarders in Japan. In the fiscal year
ended March 2007, we ranked second in
handling of airfreight departing from and
arriving in Japan.
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