These documents have been translated from Japanese originals for reference purposes only.
In the event of any discrepancy between these translated documents and the Japanese originals, the originals
shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any otherforms of damages arising from the translations.

(Securities Code 9301)
June 7, 2022
To Shareholders with Voting Rights:
Masao Fujikura
President
Mitsubishi Logistics Corporation
19-1, Nihonbashi, 1-chome,
Chuo-ku, Tokyo, JapanNOTICE OF
THE 219TH ANNUAL GENERAL MEETING OF SHAREHOLDERS
Dear Shareholders:
We would like to express our appreciation for your continued support and patronage.
We hereby notify you of the 219th Annual General Meeting of Shareholders of Mitsubishi Logistics
Corporation (the “Company”). The meeting will be held for the purposes as described below.
From the viewpoint of preventing the spread of the novel coronavirus (COVID-19), we recommend you
refrain from attending the meeting and exercise your voting rights in writing by submitting the Voting Rights
Exercise Form, or via the Internet, etc. Please review the Reference Documents for the General Meeting of
Shareholders (pages 4 through 14), and return your form no later than 5 p.m. Japan time on Tuesday, June 28,2022, or cast your vote via the Internet, etc., by 5 p.m. Japan time on Tuesday, June 28, 2022.
(Please refer to the page 3 for the detailed procedures for exercising voting rights via the Internet, etc.)
1. Date and Time:

Wednesday, June 29, 2022 at 10 a.m. Japan time

2. Place:

Nihonbashi Dia Building, Headquarters of the Company
19-1, Nihonbashi, 1-chome, Chuo-ku, Tokyo, Japan

3. Meeting Agenda:
Matters to be reported: 1. The Business Report, Consolidated Financial Statements for the Company’s
219th Fiscal Year (April 1, 2021 - March 31, 2022) and results of audits by
the Accounting Auditor and the Board of Corporate Auditors of theConsolidated Financial Statements
2. Non-consolidated Financial Statements for the Company’s 219th Fiscal Year
(April 1, 2021 - March 31, 2022)
Proposals to be resolved:
Proposal No. 1: Appropriation of Surplus
Proposal No. 2: Revisions to a Portion of the Articles of Incorporation
Proposal No. 3: Election of Thirteen (13) Directors

1

4. Information on Exercise of Voting Rights(1) If you vote both in writing on the Voting Rights Exercise Form and via the Internet, etc., only your vote
placed via the Internet, etc. will be valid.
In addition, if you submit your vote multiple times via the Internet, etc., only the last vote will be valid.
(2) If you are unable to attend the meeting, you can exercise your voting rights by proxy by appointing anothershareholder with voting rights as proxy and submitting a document that attests the power of proxy.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
When attending the meeting, please submit the enclosed Voting Rights Exercise Form at the reception desk.
Any updates to the Reference Materials for the General Meeting of Shareholders, the Business Report, theConsolidated Financial Statements and Non-consolidated Financial Statements will be posted on the “Investor
Relations” on the Company’s website (https://www.mitsubishi-logistics.co.jp/english/ir/index.html).

2

Instructions for Voting via the Internet
If you exercise your voting rights via the Internet, please view “4. Information on Exercise of Voting Rights” onpage 2 and the following matters before you exercise your rights by 5 p.m. Japan time on Tuesday, June 28, 2022.
By scanning the QR CodeYou can exercise your voting rights without entering the “Login ID” or “temporary password.”
1. Scan the QR Code printed on the tab of the Voting Rights Exercise Form (on the right).
* QR Code is a registered trademark of DENSO WAVE INCORPORATED.
2. Please vote for or against each proposal following the on-screen guidance.
Exercise of voting rights using the QR code is possible only once. From the second time onward, it will benecessary to input the “Login ID” and “Temporary password.”
By entering the “Login ID” and “Temporary password”
Voting rights exercise website: https://evote.tr.mufg.jp/
1. Access the voting rights exercise website.
2. Enter the “Login ID” and “Temporary password” printed on the Voting Rights Exercise Form and click “Login.”
3. Register a new password.
4. Please vote for or against each proposal following the on-screen guidance.
To prevent unauthorized access by non-shareholders (so-called “spoofing”) and falsification of the content of
the exercise of voting rights, the Company requests a change in the “Temporary password” via the voting rights
exercise website.
About the voting rights exercise website(1) The website will be inactive between 2 a.m. and 5 a.m. each day.
(2) It may not be possible to use the website depending upon the Internet environment, the Internet service, or
the model of device that you are using.
(3) Please note that the shareholder is solely responsible for any expenses (Internet connection fees, etc.)
incurred while accessing the voting rights exercise website.
(4) If you have any questions, please contact the following:

Stock Transfer Agency Department (Help Desk), Mitsubishi UFJ Trust and Banking Corporation
Telephone: 0120-173-027 (Toll-free)Business Hours: 9 a.m. – 9 p.m. (Japan time)< For institutional investors>
Institutional investors may exercise your voting right using the voting platform operated by ICJ, Inc.

3

Reference Documents for the General Meeting of Shareholders
Proposals and References
Proposal No. 1: Appropriation of Surplus
As to the appropriation of surplus, the Company adheres to a policy of maintaining stable dividend inconsideration of the retained earnings level in addition to profits for the period while paying attention to thesystematic development of the Logistics Business centered on the Warehousing & Distribution Business, theCompany’s mainstay business, and of the Real Estate Business centered on building leases, strengthening its
financial structure in preparation for changes in its business environment. Additionally, under the Mediumterm Management Plan (2019-2021), the Company aims to further enhance shareholder returns while
improving corporate performance and capital efficiency during the period of the management plan, and plansto pay dividends targeting DOE (dividend on equity) ratio of 2% for the fiscal year ended March 31, 2022, thefinal year of the Medium-term Management Plan.
For the fiscal year ended March 31, 2022, we propose the year-end dividend of 41 yen per share, taking into
account such factors as the above basic policies, and operating results for the year and the retained earnings
level. As a result, the annual dividend, including 39 yen, the interim dividend, will be 80 yen per share, anincrease of 20 yen compared to the previous fiscal year.
1. Matters regarding year-end dividends(1) Type of dividend property
Cash(2) Matters concerning the allotment of dividend property and its total amount
41 yen per share of common stock of the Company
The total amount: 3,329,560,759 yen(3) Effective date of the dividend of surplus
June 30, 2022
2. Other matters regarding appropriation of surplus(1) Item of surplus increased and its amountReserve for private insurance:
200,000,000 yen(2) Item of surplus decreased and its amount
Retained earnings brought forward: 200,000,000 yen

4Proposal No. 2: Revisions to a Portion of the Articles of Incorporation
1. Reasons for the Revisions(1) The Company proposes the following changes to the current Articles of Incorporation to strengthen the
supervisory functions of the Board of Directors and promote the separation of management and execution.
1) Article 14 of the proposed changes revises and establishes new stipulations required on the convocation ofgeneral meetings of shareholders and its chairperson in line with the decision that the President assumes
the position of Executive Officer.
2) Article 19 of the proposed changes reduces the number of Directors from the current maximum of 18 to the
maximum of 14 in line with the decision that Executive Officers assume the responsibility for businessexecution.
3) Article 23, Paragraph 2 of the proposed changes revises stipulations required in line with the abolition of
the position of Executive Director except for Chairman of the Board, and Article 23, Paragraph 3 of the
proposed changes shall be deleted in line with the decision that the President assumes the position of
Executive Officer.
4) Article 26 of the proposed changes stipulates that the Board of Directors elects Executive Officers andappoints the President and other Executive Officers with special titles, and that the President that is an
Executive Officer exercises general control over the full range of business operations of the Company.
5) The number of Articles shall be changed in line with the changes above.
(2) The revised stipulations stipulated in the proviso of Article 1 of the supplementary provisions of the “ActPartially Amending the Companies Act” (Act No. 70 of 2019) will be enforced (on September 1, 2022), andthe Company proposes the following changes to the current Articles of Incorporation in preparation for the
implementation of the system for electronic provision of materials for general meetings of shareholders.
1) Article 15, Paragraph 1 of the proposed changes stipulates the electronic provision of the information
comprising the content of reference documents for the general meeting of shareholders, etc.
2) Article 15, Paragraph 2 of the proposed changes establishes stipulations to limits on the scope of matters to
be recorded in written documents to be provided to shareholders who have requested provision of such
documents.
3) As stipulations concerning Internet disclosure and deemed provision of reference documents for general
meetings of shareholders (Article 15 of the current Articles of Incorporation) will no longer be necessary,these shall be deleted.
4) Supplementary provisions shall be established concerning the effective date, etc., in line with the changes
above.

5

2. Details of the Revisions
The current Articles of Incorporation and proposed changes are as follow.
(Underlines indicate amended sections)
Current Articles of Incorporation
Amended Articles of Incorporation
Article 14 A general meeting of shareholders shall Article 14 A general meeting of shareholders shallbe convened by the President of the Company,
be convened by the President of the Company,
who shall act as chairperson. If the President is
who is a Representative Director. If there is nounavailable, one of the other Directors shall
President who is a Representative Director inplace or the President who is a Representative
assume the said duties in accordance with the
Director is unavailable, one of the other Directors
order determined in advance by the Board ofshall assume the said duties in accordance with the
Directors.
order determined in advance by the Board of
Directors.
(Newly Established)
2 At a general meeting of shareholders, thePresident shall act as chairperson. If the President
is unavailable, one of the other Directors shallassume the said duties in accordance with theorder determined in advance by the Board of
Directors.
(Deleted)
Article15 When the Company convenes a general
meeting of shareholders, if the Company discloses
information that is required to be stated orindicated in reference documents for shareholders
meeting, business reports, financial statements
and/or consolidated financial statements throughmethods using the Internet in accordance with theprovisions of the applicable ordinance of the
Ministry of Justice, the Company may deem thatthe said information has been provided toshareholders.
(Newly Established)
Article 15 In convocation of a general meeting ofshareholders, the Company shall take measuresfor electronic provision of information comprising
the content of reference documents for a general
meeting of shareholders, etc.
(Newly Established)
2 Of the matters to which electronic provision
measures apply, the Company may choose not torecord all or part of matters stipulated in the
Ordinance of the Ministry of Justice in the written
documents to be provided to shareholders who
have requested provision of such documents by
the record date for voting rights.

6

Current Articles of Incorporation
Chapter 4 Directors and Board of Directors
Article 19 The Company shall have not more thaneighteen (18) Directors.
Article 23 The Board of Directors shall appoint one
or more Representative Directors.
2 The Board of Directors shall appoint one (1)Chairman of the Board, one (1) President and one(1) Vice President, as well as one or more Senior
Managing Directors and Managing Directors.
Provided, however, that it shall be possible toleave vacant the posts of Chairman of the Board,
Vice President and Senior Managing Director.
3 The President shall exercise general control overthe full range of business operations of theCompany.
(Newly Established)(Newly Established)(Newly Established)

Articles 26-38

Proposed Changes
Chapter 4 Directors, Board of Directors andExecutive Officers
Article 19 The Company shall have not more thanfourteen (14) Directors.
Article 23 <as current Article 23, Paragraph 1>
2. The Board of Directors may appoint a Chairmanof the Board.

(Deleted)

Article 26 The Board of Directors shall electExecutive Officers.
2 The Board of Directors shall appoint, among
Executive Officers, the President and other
Executive Officers with special titles.
3 The President shall exercise general control overthe full range of business operations of theCompany.

(Omitted)

Articles 27-39(Newly Established)(Newly Established)

Supplementary Provisions
Article 1 The deletion of current Article 15 andnewly establishment of Article 15 of the proposedchanges shall take effect from September 1, 2022,
the date of enforcement of the revised stipulations
stipulated in the proviso of Article 1 of the
supplementary provisions of the Act Partially
Amending the Companies Act (Act No. 70 of2019) (the “Enforcement Date”).
Article 2 Notwithstanding the provisions of theprevious Article, Article 15 of the current Articles
of Incorporation shall remain valid for general
meeting of shareholders held on a date within six
months of the Enforcement Date.
Article 3 These supplementary provisions shall bedeleted after six months have elapsed from the
Enforcement Date or three months have elapsed
from the date of the general meeting ofshareholders in the previous Article, whichever islater.

(Newly Established)(Newly Established)7<as current Articles 26-38>

Proposal No. 3: Election of Thirteen (13) Directors
The terms of office of all thirteen (13) Directors will expire at the conclusion of this year’s Annual General
Meeting of Shareholders. Accordingly, we nominate the following thirteen (13) candidates for Directors:
No.

1

2

3

Name
(Date of birth)

Past experience and significant concurrent positions

Number ofshares of theCompany held

April 1982
Joined the Company
June 2012
General Manager, International Business Coordination Chamber
April 2015
General Manager, Osaka Branch
Masao Fujikura
June 2016
Director and General Manager, Osaka Branch
22,576(March 20, 1959)
April 2017Managing Director; and General Manager, Osaka Branch
April 2018
President
June 2021
President and Chief Executive Officer (current position)[Reason for nomination as candidate for Director]
Mr. Masao Fujikura had served as General Manager of International Business Coordination Chamber, etc. After his term ofoffice as Managing Director and General Manager of Osaka Branch, he is currently serving as President and Chief Executive
Officer and oversees overall business operation as a chief executive of the Company. He possesses a wealth of experienceand professional knowledge for the Company’s business operation, therefore, the Company nominated him as Director.
April 1982
Joined the Company
June 2012
General Manager, Warehousing & Distribution Business
Division
April 2015
Chairman of the Board of Mitsubishi Logistics China Co., Ltd.
April 2016
General Manager, Warehousing & Distribution Business
Division of the Company
Hitoshi Wakabayashi June 2016
Director and General Manager, Warehousing & Distribution
16,038(January 22, 1960)
Business Division
April 2017Managing Director
April 2019
Managing Director; and General Manager, Warehousing &Distribution Business Division
April 2020
Managing Director
June 2021
Managing Director and Managing Executive Officer (current
position)[Reason for nomination as candidate for Director]
Mr. Hitoshi Wakabayashi had long served in the General Affairs Division and the Warehousing & Distribution Business
Division in addition to his term of office as General Manager of Warehousing & Distribution Business Division and an officer
in charge of an overseas subsidiary controlling the business in China, etc. He is currently Managing Director, serving as
Managing Executive Officer responsible for Warehousing & Distribution Business. He possesses a wealth of experience andprofessional knowledge for the Company’s business operation, therefore, the Company nominated him as Director.
April 1982
Joined the Company
June 2011
General Manager, Accounting & Financing Division
June 2016
Director and General Manager, Accounting & Financing
Division
Yasushi Saito
10,840April 2018
Managing Director; and General Manager, Accounting &(October 16, 1958)
Financing Division
June 2018
Managing Director
June 2021
Managing Director and Managing Executive Officer (current
position)[Reason for nomination as candidate for Director]
Mr. Yasushi Saito had long served in the Accounting & Financing division in addition to his term of office as General
Manager of Accounting & Financing Division, etc. He is currently Managing Director, serving as Managing Executive
Officer responsible for Accounting & Financing and Information System. He possesses a wealth of experience andprofessional knowledge for the Company’s business operation, therefore, the Company nominated him as Director.

8

No.

Name
(Date of birth)

Past experience and significant concurrent positions
April 1982
April 2014
April 2016

4

5

Number ofshares of theCompany held

Joined the Company
General Manager, Personnel Division
General Manager, General Affairs Division, Corporate
Communications Chamber and Personnel Division
June 2017
Director and General Manager, General Affairs Division,
Shinji Kimura
Corporate Communications Chamber and Personnel Division
9,938(July 18, 1958)
April 2018
Managing Director
April 2020
Managing Director; and General Manager, Technical Division
April 2021
Managing Director
June 2021
Managing Director and Managing Executive Officer (current
position)[Reason for nomination as candidate for Director]
Mr. Shinji Kimura had long served in the Management Division such as Planning and the Harbor Transportation Businessdivision, in addition to his term of office as General Manager of General Affairs Division, Corporate Communications
Chamber and Personnel Division. He is currently Managing Director, serving as Managing Executive Officer responsible forTechnical, Harbor Transportation and Real Estate Businesses. He possesses a wealth of experience and professional
knowledge for the Company’s business operation, therefore, the Company nominated him as Director.
April 1977
Joined Mitsubishi Trust and Banking Corporation
April 2012
President of Mitsubishi UFJ Trust and Banking Corporation
April 2013
Deputy Chairman of Mitsubishi UFJ Financial Group, Inc.
December 2013 President and Chairman of Mitsubishi UFJ Trust and Banking
Corporation
June 2015
Director; Deputy Chairman of Mitsubishi UFJ Financial
Group, Inc.
Tatsuo Wakabayashi April 2016
Chairman of Mitsubishi UFJ Trust and Banking Corporation;0(September 29,1952)
Director of Mitsubishi UFJ Financial Group, Inc.
June 2016Retired from Director of Mitsubishi UFJ Financial Group, Inc.
April 2020
Senior Advisor of Mitsubishi UFJ Trust and Banking
Corporation (current position)
June 2019
Director of the Company (current position)[Significant concurrent positions]
Senior Advisor of Mitsubishi UFJ Trust and Banking Corporation
Outside Director of Mitsubishi Materials Corporation[Reason for nomination as candidate for Outside Director and a summary of expected roles]
Mr. Tatsuo Wakabayashi has long been engaged in the corporate management of Mitsubishi UFJ Trust and Banking
Corporation and holds abundant knowledge and experience relating to banking and finance, etc. The Company nominatedhim in the belief that reflecting his broad insight and invaluable advice in the Company’s management is beneficial to theCompany’s growth and enhancement of corporate value and he is capable of supervising the Company’s management andDirectors effectively.
He currently serves as the chair of the Nomination and Compensation Committee of the Company. In addition to his
continuing contribution to ensuring and enhancing the objectivity and transparency of the procedures for determining thenomination and compensation of Directors as a member of the Committee, we expect his contribution to the Company’s
corporate governance through appropriate suggestions and recommendations from an objective standpoint independent ofexecutive management.

9

No.

Name
(Date of birth)

Past experience and significant concurrent positions
April 1977
April 2016

6

7

Number ofshares of theCompany held

Joined The Tokio Marine and Fire Insurance Co., Ltd.
President & Chief Executive Officer of Tokio Marine & Nichido
Fire Insurance Co., Ltd.
June 2016
Director of Tokio Marine Holdings, Inc.
April 2019
Vice Chairman of the Board of Tokio Marine & Nichido Fire
Insurance Co., Ltd.
June 2019
Retired from Director of Tokio Marine Holdings, Inc.
Toshifumi Kitazawa
April 2022
Senior Executive Advisor of Tokio Marine & Nichido Fire
0
(November 18, 1953)
Insurance Co., Ltd. (current position)
June 2019
Director of the Company (current position)[Significant concurrent positions]
Senior Executive Advisor of Tokio Marine & Nichido Fire Insurance Co., Ltd.
Member of the Board of Directors (Outside Director) and Member of the Audit &Supervisory Committee of MUFG Bank, Ltd.
Outside Director of Sekisui House, Ltd.
[Reason for nomination as candidate for Outside Director and a summary of expected roles]
Mr. Toshifumi Kitazawa has long been engaged in the corporate management of Tokio Marine & Nichido Fire InsuranceCo., Ltd. and holds abundant knowledge and experience relating to risk management, finance, etc. The Company nominatedhim in the belief that reflecting his broad insight and invaluable advice in the Company’s management is beneficial to theCompany’s growth and enhancement of corporate value and he is capable of supervising the Company’s management andDirectors effectively.
He currently serves as a member of the Nomination and Compensation Committee of the Company. In addition to his
continuing contribution to ensuring and enhancing the objectivity and transparency of the procedures for determining thenomination and compensation of Directors as a member of the Committee, we expect his contribution to the Company’s
corporate governance through appropriate suggestions and recommendations from an objective standpoint independent ofexecutive management.
April 1978
Joined Nippon Yusen Kabushiki Kaisha
April 2015
President, Representative Director, President Corporate Officerof Nippon Yusen Kabushiki Kaisha
June 2019
Chairman, Director, Chairman Corporate Officer of Nippon
Yusen Kabushiki Kaisha
Tadaaki Naito
June 2020
Chairman, Director, Chairman and Executive Officer of0(September 30, 1955)
Nippon Yusen Kabushiki Kaisha
April 2022
Chairman, Director of Nippon Yusen Kabushiki Kaisha(current position)
June 2020
Director of the Company (current position)[Significant concurrent positions]
Chairman, Director of Nippon Yusen Kabushiki Kaisha[Reason for nomination as candidate for Outside Director and a summary of expected roles]
Mr. Tadaaki Naito has long been engaged in the corporate management of Nippon Yusen Kabushiki Kaisha and holds
abundant knowledge and experience relating to logistics operations, etc. which is the Company’s mainstay business. The
Company nominated him in the belief that reflecting his broad insight and invaluable advice in the Company’s management
is beneficial to the Company’s growth and enhancement of corporate value and he is capable of supervising the Company’s
management and Directors effectively.
We expect his contribution to the Company’s corporate governance through appropriate suggestions and recommendations
from an objective standpoint independent of executive management.

10

No.

Name
(Date of birth)

Past experience and significant concurrent positions
April 1977
June 20098

9Number ofshares of theCompany held

Joined Nippon Telegraph and Telephone Public Corporation
Director of the General Affairs Department of Nippon Telegraphand Telephone Corporation
June 2012
Senior Executive Vice President of NTT Communications
Corporation
June 2015
President and CEO of NTT Communications Corporation
June 2020
Corporate Advisor of NTT Communications Corporation
Tetsuya Shoji0(current position)(February 28, 1954)
June 2021
Director of the Company (current position)[Significant concurrent positions]
Corporate Advisor of NTT Communications Corporation
Outside Director of Sapporo Holdings Limited
Outside Director of Hitachi Zosen Corporation
Outside Director of Japan Tobacco Inc.
Outside Director of circlace Inc.
[Reason for nomination as candidate for Outside Director and a summary of expected roles]
Mr. Tetsuya Shoji has long been engaged in the corporate management of NTT Communications Corporation and holds
abundant knowledge and experience relating to business operation innovation, etc. utilizing new digital technologies which
the Company has been promoting. The Company nominated him in the belief that reflecting his broad insight and invaluableadvice in the Company’s management is beneficial to the Company’s growth and enhancement of corporate value and he iscapable of supervising the Company’s management and Directors effectively.
He currently serves as a member of the Nomination and Compensation Committee of the Company. In addition to his
continuing contribution to ensuring and enhancing the objectivity and transparency of the procedures for determining thenomination and compensation of Directors as a member of the Committee, we expect his contribution to the Company’s
corporate governance through appropriate suggestions and recommendations from an objective standpoint independent ofexecutive management.
April 1976
Joined the Ministry of Health and Welfare
July 1996
Drug Management and Policy Department of World HealthOrganization (on secondment)
July 1999
Organization for Pharmaceutical Safety and Research (onsecondment)
April 2000
Professor of Drug Management and Policy Department, Instituteof Medical, Pharmaceutical and Health Sciences, Kanazawa
University
April 2017
Professor Emeritus of National University Corporation
Kazuko Kimura
Kanazawa University (current position)
0(May 1, 1951)
October 2017
Specially Appointed Professor of Graduate School of Medical
Sciences of National University Corporation Kanazawa
University (current position)
June 2021
Director of the Company (current position)[Significant concurrent positions]
Specially Appointed Professor of Graduate School of Medical Sciences of National
University Corporation Kanazawa University
External Director of Takara Bio Inc.
Representative Director of Medicines Security Workshop[Reason for nomination as candidate for Outside Director and a summary of expected roles]
Ms. Kazuko Kimura, as a Ph.D. holder in pharmaceutical sciences, has served in prominent posts at external organizations
such as the World Health Organization after working for the Ministry of Health and Welfare and as professor at National
University Corporation Kanazawa University. In addition, she holds abundant knowledge and experience in the field of
medical and health care, etc., which are the Company’s core and focus areas. The Company nominated her in the belief thatreflecting her broad insight and invaluable advice from the viewpoint of diversity in the Company’s management is beneficial
to the Company’s growth and enhancement of corporate value and she is capable of supervising the Company’s management
and Directors effectively.
We expect her contribution to the Company’s corporate governance through appropriate suggestions and recommendations
from an objective standpoint independent of executive management.
Although she has not been involved in corporate management other than serving as an outside director in the past, theCompany believes that she can appropriately perform her duties as Outside Director for the reasons described above.

11

No.

10

11

12

13

Name
(Date of birth)

Past experience and significant concurrent positions

Number ofshares of theCompany held

April 1976
April 2017
Tatsushi Nakashima June 2018
(November 29, 1957) April 2020
June 2021

Joined the Company
General Manager, Nagoya Branch
Director and General Manager, Nagoya Branch
9,908
Director and General Manager, Yokohama Branch
Director, Senior Executive Officer and General Manager,
Yokohama Branch (current position)[Reason for nomination as candidate for Director]
Mr. Tatsushi Nakashima had long served in the Warehousing & Distribution Business division. He is currently serving as
Director, Senior Executive Officer and General Manager, Yokohama Branch. He possesses a wealth of experience andprofessional knowledge for the Company’s business operation, therefore, the Company nominated him as Director.
April 1983
Joined the Company
April 2015
General Manager, Planning & Business Coordination Division
June 2019
Director and General Manager, Planning & BusinessAkira Yamao
Coordination Division
7,508(June 13, 1960)
April 2020
Director and General Manager, Osaka Branch
June 2021
Director, Senior Executive Officer and General Manager, Osaka
Branch (current position)[Reason for nomination as candidate for Director]
Mr. Akira Yamao had long served in the Real Estate Business division in addition to the management division such asplanning. He is currently serving as Director, Senior Executive Officer and General Manager, Osaka Branch. He possesses a
wealth of experience and professional knowledge for the Company’s business operation, therefore, the Company nominatedhim as Director.
April 1987
Joined the Company
April 2018
General Manager, Yokohama Branch
April 2020
General Manager, Planning & Business Coordination Division
Munenori Kimura(currently Corporate Planning Division)
4,444(June 14, 1964)
June 2021
Executive Officer and General Manager, Corporate Planning
Division
April 2022
Managing Executive Officer and General Manager, International
Transportation Business Division (current position)[Reason for nomination as candidate for Director]
Mr. Munenori Kimura had long served in the International Transportation Business division including overseas assignment.
He is currently serving as Managing Executive Officer responsible for Planning, International Transportation Business andOverseas Business, and General Manager, International Transportation Business Division. He possesses a wealth ofexperience and professional knowledge for the Company’s business operation, therefore, the Company nominated him as
Director.
April 1987
Joined the Company
April 2018
General Manager, Osaka Branch
April 2020
General Manager, International Transportation Business
Hidechika Saito
Division
4,244(July 5, 1964)
June 2021
Executive Officer and General Manager, International
Transportation Business Division
April 2022
Managing Executive Officer (current position)[Reason for nomination as candidate for Director]
Mr. Hidechika Saito had long served in the International Transportation Business division including overseas assignment inaddition to the Management division such as Personnel. He is currently serving as Managing Executive Officer responsible
for General Affairs, Corporate Communications, and Human Resources. He possesses a wealth of experience and professional
knowledge for the Company’s business operation, therefore, the Company nominated him as Director.

(Notes)1. There are no special interests between each candidate and the Company.
2. Responsibilities of the candidates at the Company who are incumbent Directors of the Company are as stated in the Business
Report (pages 23 through 24).
Additionally, the five Directors, Mr. Tatsuo Wakabayashi, Mr. Toshifumi Kitazawa, Mr. Tadaaki Naito, Mr. Tetsuya Shoji and
Ms. Kazuko Kimura are incumbent Outside Directors of the Company.
3. The Company has concluded a directors and officers liability insurance contract provided for in Article 430-3, Paragraph 1 of
the Companies Act with an insurance company to insure Directors, Corporate Auditors, and Executive Officers, etc., of theCompany. The Company plans to renew the contract at expiration. The outline of the said insurance contract is as stated in theBusiness Report (page 25). If the election of each candidate for Director is approved, they will be insured under the said
insurance contract.

12

4. Matters regarding the candidates for Outside Director are as follows.
(1) Five Directors, Mr. Tatsuo Wakabayashi, Mr. Toshifumi Kitazawa, Mr. Tadaaki Naito, Mr. Tetsuya Shoji and Ms. Kazuko
Kimura are candidates for Outside Director. If the election of each candidate for Director is approved, the Company plans
to designate them as independent officers as stipulated by Tokyo Stock Exchange, Inc. and register them with thesaid Exchange.
(2) Years of service as Outside Directors of the Company since their first appointment (until the conclusion of this year’s
Annual General Meeting of Shareholders)Mr. Tatsuo Wakabayashi: 3 years
Mr. Toshifumi Kitazawa: 3 years
Mr. Tadaaki Naito: 2 years
Mr. Tetsuya Shoji: 1 year
Ms. Kazuko Kimura: 1 year

13

[Reference]

The expertise and experience of each Director are as follows.
Expertise and Experience
Legal

Name

Current position at
the Company

Corporate

Finance andManagement Accounting

Marketing

ESG andSustainability

Contribution

Affairs,
ComplianceTechnology

and Risk

Growth*Management

Masao Fujikura

President and Chief
Executive Officer

○

○

○

○

to theCompany’s○○

Managing Director
Hitoshi Wakabayashi

and Managing

○

○

○

Executive Officer
Managing Director
Yasushi Saito

and Managing

○

○

○

○

○

Executive Officer
Managing Director
Shinji Kimura

and Managing

○

○

○

Executive Officer
Tatsuo Wakabayashi

Outside Director

○

○

○

○

○

Toshifumi Kitazawa

Outside Director

○

○

○

○

○

Tadaaki Naito

Outside Director

○

○

○

○

○

Tetsuya Shoji

Outside Director

○

○

○

○

○

Kazuko Kimura

Outside Director

○

○

○

○

Tatsushi Nakashima
Akira Yamao

Director and Senior
Executive Officer
Director and Senior
Executive Officer

○

○

○

○

(New candidate)
Munenori KimuraManaging Executive

○

○

○

○

○

○

Officer(New candidate)Hidechika Saito

Managing Executive○○

Officer*Contribution to the Company’s Growth: MLC2030 Vision “Supply chains in the medical/health care,” “Expand overseas
business,” and “Strengthen organization and develop human resources,” etc.
(Note) This table does not represent all the skills that each Director possesses.

14

(Appendix)

Business Report(April 1, 2021 - March 31, 2022)

I. Overview of the Company Group
1.
(1)

Business Progress and Results
Business Conditions
During the fiscal year under review, although due to the resurgence of COVID-19 in China, economic
activities in some regions have been dampened and difficult situations remain in some areas in Europe,
the global economy on the whole improved as the impact of COVID-19 is mitigating. In Japan, theeconomy showed improved performance mainly in consumer spending, capital investment, andproduction, as the severe situation due to COVID-19 is mitigating.
In these economic situations, the business environment surrounding the Group experienced an adverse
situation for both of the segments. In the Logistics Segment, the recovery trend in freight volumes has
become slower and costs increased owing to the tightness of global transportation supplies resulting from
intensifying competition with other companies and labor shortage in Japan. In the Real Estate Segment,
some of the commercial facilities experienced a slump in customer footfall due to the issues of thedeclaration of a state of emergency and priority preventative measures, and the vacancy rate of officebuildings in lease has increased because of declined demands.
Under these circumstances, Mitsubishi Logistics Corporation and its subsidiaries and affiliates(collectively, the “Group”) promoted marketing activities while utilizing new approaches such as IT, etc.
In the Logistics Segment, we made efforts expanding distribution operations especially forpharmaceuticals, and increasing the volume of international freight. In the Real Estate Segment, we
focused our efforts on securing tenants, and maintaining and improving rent levels. Meanwhile, we
endeavored to improve business performance through cost management and further improvement ofefficiency in business operations.
As a result, revenue for the fiscal year under review amounted to 257,230 million yen, an increase of
43,501 million yen, or 20.4% from the previous fiscal year. In the Logistics Segment, revenue increased
due to a recovery in freight handled in the Warehousing & Distribution, Overland Transportation, Harbor
Transportation, and International Transportation businesses in addition to the contribution of higher unit
prices of ocean and air freight rates in the International Transportation Business. In the Real Estate
Segment, revenue increased due mainly to new acquisition of facilities in Osaka in the Real Estate Leasing
Business and an increase in property sales in the condominium sales business. On the other hand, cost ofservices overall increased 36,722 million yen, or 19.1% from the previous fiscal year to 228,598 million
yen. In the Logistics Segment, operational and transportation consignment costs increased with a recovery
in freight handled. Also in the Real Estate Segment, temporary expenses such as real estate acquisition tax
associated with newly acquired facilities in Osaka were recognized, and real estate sales costs incondominium sales increased. Selling, general and administrative expenses increased 368 million yen, or
3.6% from the previous fiscal year to 10,487 million yen due mainly to an increase in personnel and otherexpenses.
As a result, operating income increased by 6,409 million yen, or 54.6% year on year to 18,144 million
yen, reflecting the increase in income both in the Logistics Segment and the Real Estate Segment. Ordinary
income increased by 7,137 million yen, or 44.6% to 23,151 million yen, reflecting an increase in dividend
income and a decrease in foreign exchange losses despite a decrease in equity in earnings ofunconsolidated subsidiaries and affiliates. Profit attributable to owners of parent decreased by 21,267
million yen, or 54.3% from the previous fiscal year to 17,892 million yen. This was mainly due torecognizing extraordinary income from gain on disposal of non-current assets, compensation income, etc.
(36,600 million yen in total) in the previous fiscal year as a result of factors such as the partial transfer ofa site for the Company’s Real Estate Business around Nagoya Station.
Performance by business segment of the Group was as follows.
1) Logistics Segment
The volume of freight handled is in recovery in each of the Warehousing & Distribution, Overland
Transportation, Harbor Transportation, and International Transportation businesses. In the Warehousing
15

& Distribution and Overland Transportation businesses, due to increased transactions for pharmaceuticals
and recovery in transactions for automotive components and other factors, revenue in in the Warehousing& Distribution Business increased by 4.7% from the previous fiscal year to 58,562 million yen and revenue
in the Overland Transportation Business increased by 7.9% from the previous fiscal year to 52,017 million
yen. Also in the Harbor Transportation Business, revenue increased by 7.6% from the previous fiscal year
to 22,950 million yen due mainly to a recovery in container freight handling volume. In the International
Transportation Business, factors such as an increase in export and import freight handled and contributionof higher unit price of ocean and air freight rates resulted in a 58.2% increase in revenue from the previous
fiscal year to 73,593 million yen.
As a result, overall revenue in the Logistics Segment was 215,240 million yen, up 35,984 million yen,or 20.1% from the previous fiscal year. Also, operating expenses were up by 29,512 million yen, or 17.2%,
from the previous fiscal year to 201,536 million yen due to an increase in operational and transportationconsignment costs in line with a recovery in freight handling volume. As a result, operating income was
13,703 million yen, an increase of 6,471 million yen, or 89.5% from the previous fiscal year, due mainly
to initiatives for the improvement of business efficiency.
2) Real Estate Segment
In the mainstay real estate leasing business, revenue increased by 4.5% from the previous fiscal year
to 29,735 million yen due mainly to the contribution of newly acquired facilities in Osaka. Other revenue
increased by 80.7% from the previous fiscal year to 13,926 million yen due mainly to an increase inproperty sales in the condominium sales business.
As a result, overall revenue in the Real Estate Segment was 43,662 million yen, up 7,509 million yen,or 20.8% from the previous fiscal year. Operating expenses were up by 7,230 million yen, or 27.7% fromthe previous fiscal year to 33,345 million yen, because temporary expenses such as real estate acquisition
tax associated with newly acquired facilities in Osaka was recognized and real estate sales costs incondominium sales increased. Due to the above, operating income was 10,316 million yen, an increase of
278 million yen, or 2.8% from the previous fiscal year.
Revenue by segment

Categories
Logistics Segment[Warehousing & Distribution Business][Overland Transportation Business][Harbor Transportation Business][International Transportation Business][Other]Real Estate Segment[Real Estate Leasing Business][Other]Elimination of inter-segment
transactions
Total(Millions of yen unless otherwise stated)
Year-on-year change
Fiscal year
Fiscal year
ended March
ended March
Percentage
Amount31, 2022
31, 2021(%)
215,240
179,255
35,984
20.1[58,562][55,954][2,607][4.7][52,017][48,214][3,802][7.9][22,950][21,332][1,618][7.6][73,593][46,514][27,078][58.2][8,116][7,239][877][12.1]
43,66236,153
7,509
20.8[29,735][28,446][1,289][4.5][13,926][7,706][6,220][80.7](1,672)(1,679)7－257,230

213,72943,501

20.4(Note) Elimination of inter-segment transactions refers to the elimination of inter-segment transactions included in therevenue of the Logistics Segment and Real Estate Segment.

16

(2)

Capital Investments
The Group made capital investments in the total amount of 42,383 million yen for construction of
warehouses and facilities for lease, purchase of facilities for lease and land, etc.
The main investments made during the fiscal year under review were as follows.
1) Completed Warehouses
Ibaraki: Tsukuba Distribution Center, Fuji Logistics Co., Ltd.
[Completed in March 2022]
Warehouses(three stories, floor area of approx. 20,300 m2)
2) Purchased facilities for lease and land
Osaka:
GRAND FRONT OSAKA "the Company's ownership ratio is 4.9%)[Purchased in April 2021]
Offices and stores for lease (two-story building and 38-story building, floor areaof approx. 481,600 m2)
Land (approx. 43,200 m2, of which the Company leases approx. 9,900 m2)
3) Facilities for lease that underwent large-scale renovation
Tokyo:
Eitai Dia Building[Renewal work for power substation facilities: Completed in March 2022]
Rental building for computer-processing center(14 stories, floor area of approx. 29,900 m2)
4) Warehouses under construction
Osaka:
Ibaraki Distribution Center No. 5[Scheduled for completion in October 2022]
Warehouses (four stories, floor area of approx. 26,100 m2)
5) Facilities for lease under construction
Tokyo:
Rental building for tenants[Scheduled for completion in April 2024]
Rental building for computer-processing center(nine stories, floor area of approx. 34,800 m2)
Kobe:
Suma Aqualife Park/Kaihin Park Restructuring Project(the Company’s business ratio is 27.8%)[Scheduled for completion in Spring in 2024]
Commercial facilities for lease (development area of approx. 101,900 m2)(3)

Financing
The capital investments and operating capital of the Group were funded by cash on hand andborrowings from financial institutions.
Additionally, the Company redeemed the 13th unsecured bonds (total face value 5.0 billion yen; issued
December 9, 2011) on December 9, 2021.

(4)

Future Outlook and Issues
In the future world economy, although the COVID-19 infection trend and the situation in Ukraine areconcerning, a steady improvement is expected to continue. In addition, the state of the Japanese economy
is expected to improve owing to the effects of various policies and improvements in overseas economies,
while robust measures to prevent the infection are implemented and social and economic activities are
moving toward normalization.
In this economic climate, under the business environment surrounding the Group, extremely harshsituations continue due to intensified competition and an increase in cost resulting from labor shortages
and tightness of international transportation supplies, although the recovery in freight movement is
expected in the logistics industry. There is concern that business conditions may become stagnant in thereal estate industry due mainly to a decrease in sales at commercial facilities affected by COVID-19 anda decline in demand for rental office buildings.
Under these circumstances, the Group upholds a vision MLC2030 Vision to be accomplished in 2030,
and by giving first priority to “contributing to the improvement of customer’s value,” we aim to be a
corporate group that continues to be selected by customers both in Japan and overseas as a logistics
company that consistently handles the supply chain from procurement to distribution and sales as a partnerof customers.
Specifically, we will implement the following measures.
1) The Group will establish a customer-oriented support system in the priority categories including17

medical/health care, food/beverage, and machinery/electrical machine industries, as well as in the
new materials industry, which was added in the newly formed Management Plan (2022-2024) as
the market is expected to expand toward 2030.
2) Overseas, the Group will move forward with system enhancements to support customer supply
chains in the medical/health care and food/beverage industries and strengthen its forwarding
business to capture the demand for high quality cold chains expected to grow in a number ofregions such as Southeast Asia (ASEAN).
3) The Group will further enhance the competitiveness of its Harbor Transportation Business byleveraging its cargo handling services, the efficiency of which is ranked among the highest
globally, while at the same time developing complexes and facilities and boosting its operational
capability in the Real Estate Business. By doing so, it will seek to secure stable profits.
4) The Group will review the operational processes of all businesses and facilitate efficient
operations by utilizing new technologies such as IoT, AI and robotics. Through these efforts, itaims to improve service quality and production efficiency.
5) The Group aims for growth by strengthening cost competitiveness through organizational
management across the Company and its Group companies and securing/developing humanresources, particularly in the priority areas.
In the Management Plan (2019-2021) that is the first stage to achieve the MLC2030 Vision, the Grouphas endeavored to provide safe, high-quality and socially useful services centering on our Warehousing &Distribution Business, strengthen business foundations of the priority areas, establish a system thatleverages new technologies, and increase shareholder returns, despite unexpected business environmentof the pandemic of COVID-19.
To further promote these initiatives, in the Management Plan (2022-2024) that is the second stage
toward the achievement of the MLC2030 Vision, the Group has established the five basic policies asfollows.
1)
Improving profitability of the logistics business2)
Expanding the growth base of overseas business3)
Expanding the real estate business by improving development capacity
4)
Developing high value-added services by utilizing cutting-edge technologies
5)
Strengthening the Group management base
The Group, as a whole, will promote the measures to achieve both record operating income of 20,000
million yen and ROE (return on equity) of 7% as our new financial goals. We will work on enhancing
shareholder returns and improving capital efficiency to further enhance the corporate value, under a strong
earnings foundation / revenue base and an appropriate financial base.
Furthermore, in order to promote initiatives for the ESG (Environment, Social, Governance)
management and the SDGs proposed by the United Nations, we have set six key themes: (i) Safety andsecurity, Disaster response, (ii) Environmental measures, (iii) Cutting-edge technology, Innovation, (iv)
Partnership, (v) Human resource development, Employee satisfaction, and (vi) Compliance, Human rights,
Gender. By establishing measures, evaluation indicators, and target values for each theme, we will aim toachieve them, as well as the MLC2030 Vision, in the fiscal year ending March 31, 2031. To ensure that
we achieve the targets, we publish the main initiatives for each theme in the Management Plan (20222024) and promote quality initiatives, led by the Sustainability Committee, through progress management,
periodic inspection and replacement of measures, evaluation indicators and targets, and expanding
communication with internal and external parties via the Integrated Report and the Group’s official
websites, etc.
The Group engages in the business of logistics and real estate, which function as social infrastructure,and help to achieve a “sustainable” society, very much in the spirit of the SDGs. The Group will aim for its
sustainable growth by identifying growth opportunities for business as it strives to solve environmental andother social issues.

18

2.

The Group
The Company

Trends in Assets and Income
Trends in assets and income of the Group and the Company for the fiscal year under review and thelast three fiscal years are as follows.
(Millions of yen unless otherwise stated)
The 216th fiscal The 217th fiscal The 218th fiscal Fiscal year
year
year
year
under review
Item(April 1, 2018 - (April 1, 2019 - (April 1, 2020 - (April 1, 2021 March 31, 2019) March 31, 2020) March 31, 2021) March 31, 2022)
Revenue
227,185
229,057
213,729
257,230
Operating income
12,66012,195
11,735
18,144
Ordinary income
17,333
16,822
16,01323,151
Profit attributable to owners
11,564
11,851
39,16017,892of parent
Basic earnings per share
132.03137.31462.28219.47(yen)
Total assets
482,575
468,243535,761
562,187
Total net assets
299,104
286,356
326,829
347,759
Revenue
157,432
160,031
151,553
184,137
Operating income
9,016
8,899
9,376
12,046
Ordinary income
14,61913,616
13,964
17,952
Net income
10,125
10,10938,573
17,646
Basic earnings per share
115.55117.08455.16216.37(yen)
Total assets
433,462
416,534
483,917505,990
Total net assets
274,400
260,685
299,249
317,611(Notes)
1. In the 218th fiscal year, the Group’s profit attributable to owners of parent and basic earnings per share, and theCompany’s net income and basic earnings per share increased because we recorded extraordinary income
including gain on disposal of non-current assets and compensation income as a result of partial transfer of a site
for the Company’s Real Estate Business around Nagoya Station, among others.
2. The Group and the Company’s revenue, operating income, and ordinary income increased in the fiscal year underreview due to the recovery of freight handled in the Logistics Segment and the contribution of higher unit pricesof ocean and air freight rates in the international transportation business, etc. Also, the Group’s profit attributableto owners of parent and basic earnings per share, and the Company’s net income and basic earnings per sharedecreased because in the 218th fiscal year, we recorded extraordinary income including gain on disposal of noncurrent assets and compensation income as a result of partial transfer of a site for the Company’s Real EstateBusiness around Nagoya Station.
3. Basic earnings per share of the Group and of the Company are calculated based on the weighted-average number ofshares issued during the relevant period and are rounded off to the second decimal place.

19

3.

Material Subsidiaries
Company name

The Company’s
Capitalpercentage of equity(Millions of yen) participation (%)

Fuji Logistics Co., Ltd.

2,979

95.0

Ryoso Transportation Co.,
Ltd.

360

100

Dia Buil-Tech Co., Ltd.

100

100

Shinryo Koun Co., Ltd.

36

86.0

Mitsubishi Logistics China
Co., Ltd.

RMB250
million100

P.T. Mitsubishi Logistics
Indonesia
Mitsubishi Logistics
America Corporation
Mitsubishi Logistics Europe
B.V.

IDR631,665
million
USD10,000
thousand
EUR2,500
thousand

99.9
100
100

Principal business
Warehousing & Distribution
Business
Overland Transportation
Business
Real Estate Managing
Business
Port and Harbor Operation
Business
Investment in Logistics
Business in China andmanagement of affiliate
logistics companies
Warehousing & Distribution
Business
International Transportation
Business
International Transportation
Business

The number of the consolidated subsidiaries subject to consolidated accounting is 48 (a decrease of 2
companies from the previous fiscal year) including 8 material subsidiaries shown above, while the number
of affiliates subject to the equity method is 3. The majority of these companies are engaged in operations
and transportation related to the logistics business and management of buildings related to the Real EstateBusiness.
4.

Principal Business(1) Logistics Segment
1) Warehousing & Distribution BusinessBusiness conducting storage and handling of incoming and outgoing cargo, etc. at warehouses
containing consigned items
2) Overland Transportation BusinessBusiness conducting transport and usage transport, etc. by freight automobiles
3) Harbor Transportation BusinessBusiness conducting coastal cargo handling and onboard cargo handling, etc. at ports
4) International Transportation BusinessBusiness conducting handling of international product transport, etc. (including handlingdomestic marine cargo transport)(2) Real Estate Segment
Business conducting consignment, design and oversight of purchase, leasing, management
and construction of real estate

20

5.

Principal Business Locations(1) The Company
Headquarters: Chuo-ku, Tokyo
Branches: Tokyo, Yokohama, Nagoya, Osaka, Kobe and Fukuoka(2) Subsidiaries
1) Logistics Segment
Fuji Logistics Co., Ltd. (Minato-ku, Tokyo)
Ryoso Transportation Co., Ltd. (Koto-ku, Tokyo)
Shinryo Koun Co., Ltd. (Chuo-ku, Kobe)
Mitsubishi Logistics China Co., Ltd. (Shanghai, China)
P.T. Mitsubishi Logistics Indonesia (Jawa Barat, Indonesia)
Mitsubishi Logistics America Corporation (New York City, State of New York, U.S.A)
Mitsubishi Logistics Europe B.V. (Ridderkerk, South Holland, The Netherlands)
2) Real Estate Segment
Dia Buil-Tech Co., Ltd. (Chuo-ku, Tokyo)

6.

Employees(1) Employees of the Group
Categories
Logistics Segment
Real Estate Segment
Administrative segment,
Headquarters of the Company
Total

Number of employees(Changes from previous fiscal year-end)
4,362 (increased 133)
290 (increased 2)
80 (decreased 1)
4,732 (increased 134)

(Notes)1. The figures in the above table do not include 45 persons on leave and seconded outside of
the Group.
2. Separate from the above, there are 1,195 temporary employees and 1,308 seconded andcontracted employees from outside the Group.

(2) Employees of the Company
Number of employees (Changes
from previous fiscal year-end)
1,014 (increased 18)

Average age

Average years of service

39 years,
11 months

15 years, 8 months(Notes)1. The figures in the above table do not include 103 persons on leave and seconded outside of
the Company.
2. Separate from the above, there are 183 temporary employees and 597 seconded and contracted
employees from within and outside of the Group.
3. Average age and average years of service are rounded down to the nearest month.

7.

Material Lenders
Amount of borrowings(Millions of yen)
35,583
10,970

Lender
MUFG Bank, Ltd.
The Norinchukin Bank

21

II. Status of Shares
1.
Matters concerning Shares(1) Authorized shares

220,000,000 shares(2) Number of shares issued, capital and number of shareholders
End of fiscal year
Previous fiscal
Item
under review
year-end
87,960,739
Number of shares issued (shares)
87,960,739
Capital (yen)22,393,986,570
22,393,986,570
Number of shareholders (persons)
7,203
6,323
(Note)

Changes from theprevious fiscal year-end
00880 (increased)

Number of shares issued includes 6,751,940 shares of treasury shares.

(3) Major shareholders
Shareholder name

Number of shares

Shareholding ratio%

Thousand shares

The Master Trust Bank of Japan, Ltd. (trust account)
Meiji Yasuda Life Insurance Company
Custody Bank of Japan, Ltd. (trust account)
MITSUBISHI ESTATE CO., LTD.
STATE STREET BANK AND TRUST COMPANY 505001
Tokio Marine & Nichido Fire Insurance Co., Ltd.
AGC Inc.
MUFG Bank, Ltd.
TAKENAKA CORPORATION

17,462
5,153
5,133
3,665
2,405
2,041
1,657
1,505
1,505

21.5
6.3
6.3
4.5
3.0
2.5
2.0
1.9
1.9

The Nomura Trust and Banking Co., Ltd. (trust funds for
retirement benefits, Mitsubishi UFJ Trust and Banking
Corporation account)

1,414

1.7

(Notes)1.
2.
3.

In addition to the above, the Company holds 6,751 thousand shares of treasury shares.
MUFG Bank, Ltd. has set 750 thousand shares of the Company as trust funds for retirement benefits for which
voting rights are reserved, in addition to the shares stated in the table above.
“Shareholding ratio” is calculated after excluding treasury shares (6,751,940 shares).

(4) Status of shares delivered to corporate executives as consideration for execution of their duties during the
fiscal year under review
To incentivize eligible officers to sustainably increase the Company’s corporate value and promote thefurther sharing of value with shareholders, shares are delivered to Directors excluding Outside Directors ascompensation for granting restricted stock. The stock cannot be disposed of until the recipient retires orresigns from the position of the Company’s Director or other positions decided by the Company’s Boardof Directors.
Type and number of shares
Number of eligible officers
Directors (excluding Outside
Common stock of the Company
8 persons
Directors)
12,856 shares
Outside Directors
Corporate Auditors-222. Company Officers(1)

Directors and Corporate Auditors
Position

President
Chief Executive Officer *Managing Director
Managing Executive Officer

Areas of responsibility or significant
concurrent positions

Name
Masao Fujikura
Hitoshi Wakabayashi

Responsible for Warehousing &Distribution Business

Managing Director
Managing Executive Officer

Yasushi Saito

Responsible for Accounting & Financing
and Information System

Managing Director
Managing Executive Officer

Shinji Kimura

Responsible for Technical, Harbor
Transportation and Real Estate Businesses

Managing Director
Managing Executive Officer *Saburo Naraba

Managing Director
Managing Executive Officer

Hiroshi Nishikawa

Director

Tatsuo Wakabayashi

Director

Toshifumi Kitazawa

Director

Tadaaki Naito

Director

Tetsuya Shoji

Responsible for General Affairs, Corporate
Communications, Human Resources,
Planning, and Internal Audit
Responsible for International
Transportation Business and Overseas
Business
Senior Advisor, Mitsubishi UFJ Trust andBanking Corporation
Vice Chairman of the Board, Tokio Marine& Nichido Fire Insurance Co., Ltd.
Chairman, Director, Chairman andExecutive Officer, Nippon Yusen
Kabushiki Kaisha
Corporate Advisor, NTT Communications
Corporation

Director

Kazuko Kimura

Specially Appointed Professor, Graduate
School of Medical Sciences, National
University Corporation Kanazawa
University

Director
Senior Executive Officer

Tatsushi Nakashima

General Manager, Yokohama Branch

Director
Senior Executive Officer

Akira Yamao

General Manager, Osaka BranchStanding Corporate Auditor(full time)

Tohru Watanabe

Corporate Auditor(full time)

Mikine Hasegawa

Corporate Auditor

Yohnosuke Yamada

LawyerCorporate Auditor

Takao Sato

Certified Public Accountant

Corporate Auditor

Junya Miura

Full-time Corporate Auditor, Ryoso
Transportation Co., Ltd.

23

(Notes)

1.
2.

3.

4.
5.

6.
7.

8.

9.

Directors with an asterisk (*) are Representative Directors.
Of Directors, Mr. Tatsuo Wakabayashi, Mr. Toshifumi Kitazawa, Mr. Tadaaki Naito, Mr. Tetsuya
Shoji, and Ms. Kazuko Kimura are Outside Directors as stipulated by Article 2, item 15 of theCompanies Act. The Company designated them as independent officers as stipulated by Tokyo Stock
Exchange, Inc. and registered them with the said Exchange.
Of Corporate Auditors, Mr. Mikine Hasegawa, Mr. Yohnosuke Yamada and Mr. Takao Sato are
Outside Corporate Auditors as stipulated by Article 2, item 16 of the Companies Act. The Company
designated them as independent officers as stipulated by Tokyo Stock Exchange, Inc. and registeredthem with the said Exchange.
Corporate Auditor Mr. Takao Sato is a Certified Public Accountant and has a considerable knowledge
regarding finance and accounting.
Director Mr. Toshifumi Kitazawa retired as Vice Chairman of the Board of Tokio Marine & Nichido
Fire Insurance Co., Ltd. on March 31, 2022 and took office as Senior Executive Advisor of thecompany on April 1, 2022.
Director Mr. Tadaaki Naito retired as Chairman and Executive Officer of Nippon Yusen Kabushiki
Kaisha on March 31, 2022 and continues to serve as Chairman, Director of the company.
The Directors who retired during the fiscal year under review were as follows:(Retired on June 29, 2021)
Director Yoshiji Ohara
Director Akio Miura
Director Masanori Maekawa
Of Directors shown above, positions and responsibilities were changed as follows on April 1, 2022.
(Directors with an asterisk (*) are Representative Directors.)(Previous positions)(New positions and responsibilities)
Managing Director, Managing Executive Officer Saburo Naraba*
Director (-)
Managing Director, Managing Executive Officer Hiroshi Nishikawa Director (-)
In addition to the above, the seven Executive Officers who do not hold concurrent position as Director are
as below. (As of April 1, 2022)
Position
Name
Areas of responsibility or positions
Responsible for Planning, International
Transportation Business and Overseas
Managing
Munenori Kimura
Business, General Manager, International
Executive Officer
Transportation Business Division
Responsible for General Affairs, Corporate
Managing
Hidechika Saito
Communications, and Personnel
Executive Officer
Senior Executive
Akio Miura
General Manager, Nagoya Branch
Officer
General Manager, General Affairs Division,
Senior Executive
Masanori Maekawa
Corporate Communications Chamber
Officer
General Manager, Information Systems
Executive Officer
Manabu Kusuyama
Division
General Manager, Accounting & Financing
Executive Officer
Naoyuki Inamo
Division
General Manager, Real Estate Business
Executive Officer
Takashi Mukai
Division24

(2)Outline of the Directors and Officers Liability Insurance Contract
The Company has concluded a directors and officers liability insurance contract provided for in
Article 430-3, Paragraph 1 of the Companies Act with an insurance company to insure Directors,
Corporate Auditors and Executive Officers, etc. The contract covers damages and litigation costs
resulting from liability of the insured arising in the performance of their duties or claims received in
the pursuit of such liability. However, measures are taken so that the properness of the performanceof duties by the insured is not impaired by excluding the damages arising from the insured’s criminal
acts, acts committed with the knowledge that they violate laws, insider trading, and unlawful benefit
and defining deductibles not to cover damages under specific amount.
The Company fully covers the insurance premiums.
(3)

Compensation to Directors and Corporate Auditors for the Fiscal Year under Review
1) Policy for determining details of compensation for each Director
The Company resolved the policy at the meeting of the Board of Directors based on suggestions fromthe Nomination and Compensation Committee upon consulting with the Committee.
(i) Policy for determining the amount of basic compensation for each Director, details of performancebased compensation and nonmonetary compensation and calculation method of their amount or figures(including policy for determining timing and conditions of providing compensation)
Compensation for Directors shall consist of basic compensation, performance-based compensation,and stock compensation at amounts based on their duties and the compensation level of society ingeneral.
Basic compensation shall be paid according to the position of each Director as monthly fixedcompensation within the limit of compensation determined at a general meeting of shareholders.
Performance-based compensation shall be bonuses for Directors excluding Outside Directors.
Payment is to be made at a specific timing every year at an amount determined according to theperformance indicators of the previous fiscal year within the compensation limit that is common withbasic compensation. Operating income and ordinary income that reflect profits from ordinary businessactivities in general and is deemed appropriate as a quantitative indicator, and ROE (return on equity)that is deemed appropriate as a capital efficiency indicator shall be adopted as the performanceindicators for bonuses. The amount of bonuses shall be determined based on a calculation tableproviding the amounts according to the level of the performance indicators of the previous fiscal year.
In addition, a certain degree of addition or subtraction can be made based on the evaluation of
initiatives for issues set for each individual.
Stock compensation is intended to incentivize recipients to sustainably increase the Company’s
corporate value and promote the further sharing of value with shareholders. Payment is to be made ata specific timing every year at an amount deemed reasonable in light of the purpose within thecompensation limit that is common with basic compensation to Directors excluding Outside Directors
as compensation for granting restricted stock. The stock cannot be disposed of until the recipient retires
or resigns from the position of the Company’s Director or other positions decided by the Company’s
Board of Directors.
(ii) Policy for determining the ratio of monetary compensation, performance-based compensation, andnonmonetary compensation for each Director
The payment amount per type of compensation for each Director shall be determined so that theratio per type of compensation for each Director will function as an appropriate incentive
commensurate with the duties expected for each position.
To link compensation with medium- to long-term business performance, the Company’s sharesshall be acquired through the officer stock ownership plan using contributions from monthly
compensation and bonuses at amounts not less than those set for each position. All the shares purchased
shall be held throughout the service period and until one year after retirement.
(iii) Determination of details of compensation for each Director
Based on the above policy, matters such as the compensation limit to be submitted to the general
meeting of shareholders, drafts of proposals regarding stock compensation, and allotment of each typeof compensation for each individual shall be discussed by the Nomination and Compensation
Committee. The Committee was established as an advisory body to the Board of Directors mainlycomprising independent Outside Directors to further enhance the objectivity and transparency of theprocedures for determining the nomination and compensation of Directors. Based on the suggestions
25

of the Committee, the Board of Directors shall discuss and resolve the matter at its meetings attended
by Outside Directors and Outside Corporate Auditors.
Details of compensation for each Director for the fiscal year under review are deemed to conform to theabove policy because the Board of Directors determined them based on suggestions from the Nomination
and Compensation Committee which deliberated on the matter according to the above policy.
2) Policy for determining the amount of compensation for Corporate Auditors and its calculation method
Compensation for Corporate Auditors is determined by discussion between Corporate Auditors within
the compensation limit resolved at a general meeting of shareholders.
3) Resolution of the general meeting of shareholders concerning compensation for Directors and Corporate
Auditors
The upper limit on total compensation for Directors is 600 million yen per year (of which, 100 million
yen per year for Outside Directors; resolved at the 216th Annual General Meeting of Shareholders held on
June 27, 2019; not including the portion of employees’ salary for Directors who concurrently serve as
employees), with 120 million yen per year for Corporate Auditors (resolved at the 216th Annual General
Meeting of Shareholders held on June 27, 2019). There were 15 Directors (including 4 Outside Directors)
and 5 Corporate Auditors at the conclusion of the 216th Annual General Meeting of Shareholders held on
June 27, 2019.
Within the scope of compensation limit for Directors stated above, the Company provides monetarycompensation for granting restricted stock to Directors excluding Outside Directors (150 million yen per year
for up to 100 thousand shares of the Company’s common stock; resolved at the 217th Annual General
Meeting of Shareholders held on June 26, 2020). There were 11 Directors excluding Outside Directors at
the conclusion of the 217th Annual General Meeting of Shareholders held on June 26, 2020.
4) Total amount of compensation for Directors and Corporate Auditors, etc.
Total amount per type of compensation
Total amount(Millions of yen)of
Bonuses
Restricted stock
Category
compensation
Basic(performancecompensation(Millions ofcompensation
based(nonmonetaryyen)
compensation)compensation)
Directors
434
349
38
45
[of which, Outside
[46]
[46]
[－]
[－]
Directors]
Corporate Auditors
78
78
－
－
[of which, Outside
[42]
[42]
[－]
[－]
Corporate Auditors](Notes)

1.

2.

3.

Number of
eligible
executives(Persons)
16
[5]
5
[3]

Bonuses are performance-based compensation to be paid within the compensation limit that iscommon with basic compensation. Operating income and ordinary income that reflect profits fromordinary business activities in general and is deemed appropriate as a quantitative indicator, and ROE(return on equity) that is deemed appropriate as a capital efficiency indicator shall be adopted as theperformance indicators for bonuses. The amount of bonuses shall be determined based on a
calculation table providing the amounts according to the level of the performance indicators of theprevious fiscal year. In addition, a certain degree of addition or subtraction can be made based on theevaluation of initiatives for issues set for each individual. Consolidated operating income for the219th term was 18,144 million yen, consolidated ordinary income was 23,151 million yen, andconsolidated ROE was 5.4%. The amount of bonuses above is the amount expensed as bonuses forthe fiscal year under review.
The amount of the restricted stock compensation above is the amount expensed as restricted stockcompensation for the fiscal year under review. Details of stock compensation and status of theirdelivery are as described in “1. Matters concerning Shares, (4) Status of shares delivered to corporate
executives as consideration for execution of their duties during the fiscal year under review.”
In addition to the payment amounts mentioned above, the portion of employees’ salary of 57 million
yen were paid to Directors concurrently serving as employees (4 persons during the fiscal year underreview).

26

(4) Matters concerning Outside Directors
1) Significant concurrent positions at other corporations, etc.
Name
Company name
Mitsubishi UFJ Trust and Banking
Corporation
Tatsuo Wakabayashi
Mitsubishi Materials Corporation
Tokio Marine & Nichido Fire
Insurance Co., Ltd.
Toshifumi Kitazawa

Tetsuya Shoji

Kazuko Kimura(Notes)

1.
2.
3.
4.

MUFG Bank, Ltd.
Sekisui House, Ltd.
NTT Communications
Corporation
Sapporo Holdings Limited
Hitachi Zosen Corporation
Japan Tobacco Inc.
Graduate School of Medical
Sciences of National University
Corporation Kanazawa University
Takara Bio Inc.
Medicines Security Workshop

Title
Senior Advisor
Outside Director
Vice Chairman of the Board
Member of the Board of Directors (Outside
Director) and Member of the Audit &Supervisory Committee
Outside Director
Corporate Advisor
Outside Director
Outside Director
Outside Director

Specially Appointed Professor
External Director
Representative Director

The Company has transactions such as logistics operation consignment, etc. with Mitsubishi
Materials Corporation.
The Company has transactions such as insurance contract, etc. with Tokio Marine & Nichido Fire
Insurance Co., Ltd.
The Company has transactions such as loans and logistics operation consignment, etc. with MUFG
Bank, Ltd.
The Company has transactions such as logistics operation consignment, etc. with Sekisui House,

Ltd.
5.
6.
7.
8.
9.

The Company has mutual transactions in logistics operation consignment, etc. with Nippon Yusen
Kabushiki Kaisha.
The Company has transactions such as logistics operation consignment, etc. with Japan Tobacco Inc.
The Company has made a donation for the foundation of donated courses to National University
Corporation Kanazawa University.
The Company has transactions such as logistics operation consignment, etc. with Takara Bio Inc.
The Company has paid lecture fees to Medicines Security Workshop.

2) Main activities
Mr. Tatsuo Wakabayashi participated in all 12 meetings of the Board of Directors held during the
fiscal year under review. He has adequately fulfilled his responsibilities as Director by expressing his
opinions actively at the meetings of the Board of Directors from an independent and objective
standpoint and striving to supervise the Company’s management and Directors based on insight gained
through having long been engaged in the corporate management of Mitsubishi UFJ Trust and Banking
Corporation and his abundant knowledge and experience in banking and finance, etc.
As the chair of the Nomination and Compensation Committee, he participated in all 2 meetings of
the Committee held during the fiscal year under review and contributed to maintaining and enhancing
the objectivity and transparency of the procedures for determining the nomination and compensationof Directors.
Mr. Toshifumi Kitazawa participated in all 12 meetings of the Board of Directors held during the
fiscal year under review. He has adequately fulfilled his responsibilities as Director by expressing his
opinions actively at the meetings of the Board of Directors from an independent and objective
standpoint and striving to supervise the Company’s management and Directors based on insight gained
through having long been engaged in the corporate management of Tokio Marine & Nichido Fire
Insurance Co., Ltd. and his abundant knowledge and experience in risk management, finance, etc.
As a member of the Nomination and Compensation Committee, he participated in all 2 meetings of
the Committee held during the fiscal year under review and contributed to maintaining and enhancing
27the objectivity and transparency of the procedures for determining the nomination and compensationof Directors.
Mr. Tadaaki Naito participated in all 12 meetings of the Board of Directors held during the fiscal
year under review. He has adequately fulfilled his responsibilities as Director by expressing his
opinions actively at the meetings of the Board of Directors from an independent and objective
standpoint and striving to supervise the Company’s management and Directors based on insight gained
through having long been engaged in the corporate management of Nippon Yusen Kabushiki Kaisha
and his abundant knowledge and experience in logistics operations, etc.
Mr. Tetsuya Shoji participated in 9 meetings out of the 9 meetings of the Board of Directors. He has
adequately fulfilled his responsibilities as Director by expressing his opinions actively at the meetingsof the Board of Directors from an independent and objective standpoint and striving to supervise theCompany’s management and Directors based on insight gained through having long been engaged in
the corporate management of NTT Communications Corporation and his abundant knowledge andexperience in business operation innovation, etc., utilizing new digital technologies.
As a member of the Nomination and Compensation Committee, he participated in 1 meeting out of
the one meeting of the Committee held after his assumption and contributed to maintaining andenhancing the objectivity and transparency of the procedures for determining the nomination andcompensation of Directors.
Ms. Kazuko Kimura participated in 9 meetings out of the 9 meetings of the Board of Directors. She
has adequately fulfilled his responsibilities as Director by expressing her opinions actively at themeetings of the Board of Directors from an independent and objective standpoint and striving tosupervise the Company’s management and Directors based on insight gained through having served inprominent posts at external organizations such as the World Health Organization after working for the
Ministry of Health and Welfare and as professor at National University Corporation Kanazawa
University, as someone who holds a Ph.D. holder in pharmaceutical sciences, and her abundant
knowledge and experience in the field of medical and health care, etc.
(Note) As Mr. Tetsuya Shoji and Ms. Kazuko Kimura were elected as Directors at the 218th Annual
General Meeting of Shareholders held on June 29, 2021, the number indicated is their attendanceat the subsequent 9 meetings of the Board of Directors.
(5) Matters concerning Outside Corporate Auditors
1) Significant concurrent positions at other corporations, etc.
Name
Company name
Yohnosuke Yamada
SANYO TRADING CO., LTD.
Takao Sato
IX Knowledge Inc.
(Notes)

1.
2.

Title
Outside Director
Outside Director

Mr. Yohnosuke Yamada retired as Director of SANYO TRADING CO., LTD. on December 22, 2021.
The Company has transactions such as logistics operation consignment, etc. with SANYOTRADING CO., LTD.

2) Main activities
During the fiscal year under review, the Company held 16 meetings of the Board of Corporate
Auditors. Mr. Mikine Hasegawa participated in 16 meetings, Mr. Yohnosuke Yamada in 16 meetings,
and Mr. Takao Sato in 16 meetings. During the fiscal year under review, the Company held 12 meetingsof the Board of Directors. Mr. Mikine Hasegawa participated in 12 meetings, Mr. Yohnosuke Yamada
in 12 meetings, and Mr. Takao Sato in 12 meetings. Each of Outside Corporate Auditors statedinvaluable opinions from an objective and professional standpoint backed by their accumulated
experiences at trading companies, as a lawyer and a certified public accountant, respectively.

28

3.

Accounting Auditor(1)

Accounting Auditor’s Name
KPMG AZSA LLC(2)Compensation for Audit Service Set Forth in Article 2, Paragraph 1 of the Certified Public
Accountants Act
68 million yen(Notes)
1. Upon confirming the content of the audit plan, the conditions of the execution status of theaccounting audit, and the assumptions for calculating remuneration estimates, etc., of the
Accounting Auditor, the Board of Corporate Auditors has given its approval under Article 399,
Paragraph 1 of the Companies Act for the remuneration, etc., of the Accounting Auditor.
2. Under the audit agreement between the Company and its Accounting Auditor, compensation foraudits pursuant to the Companies Act and audits pursuant to Financial Instruments and Exchange
Law are not strictly separated, and otherwise cannot be separated. Consequently, the above
amount reflects total compensation.

(3)

Cash and other profits payable by the Company or its subsidiaries to Accounting Auditor
83 million yen(Note)
Of significant subsidiaries of the Company, Mitsubishi Logistics China Co., Ltd., P.T. Mitsubishi
Logistics Indonesia, and Mitsubishi Logistics Europe B.V. receive audits (limited to stipulations of
the Companies Act and the Financial Instruments and Exchange Act (including laws and regulationsof other countries corresponding to these laws)) from accounting auditors (including entities
possessing qualifications in other countries corresponding to these qualifications) separate from the
Accounting Auditor of the Company.

(4)

Policy Regarding Determination of Termination or Nonreappointment of Accounting Auditor
Aside from termination of the Accounting Auditor by the Board of Corporate Auditors as defined in
Article 340 of the Companies Act, should the Accounting Auditor be deemed unable to execute its duties
properly and the replacement of the Accounting Auditor be deemed necessary, the Company shall submit
the proposal to terminate or not reappoint the Accounting Auditor to the General Meeting of Shareholders,
based on a resolution of the Board of Corporate Auditors.

29

III. Company’s Systems and Policies
1.

System to ensure that Directors execute their duties in compliance with laws and regulations andthe Articles of Incorporation and other systems to ensure proper business execution
As rules and a charter to be strictly followed by executives and employees during the course of
executing duties, the Company has formulated a “Code of Conduct” as described below, and clearly states
its position to actively work toward thorough compliance with related laws, in addition to environmental
protection and social contribution, etc.
1) The Company will comply with laws and regulations and rules, and execute corporate activities
sincerely and fairly so as not to disrupt societal norms.
2) The Company will disclose corporate information at appropriate times and in an appropriate way, andaim for broad communication with society.
3) The Company will continue to not have any relationships with anti-social forces that have a negative
impact on the order and safety of civil society.
4) The Company will recognize the importance of environmental issues and cooperate withenvironmental protection activities.
5) While providing services that are safe, high quality, and socially effective, the Company will work
toward societal contribution activities as a “good corporate citizen,” placing harmony with regionalsocieties and international society at the forefront.

<Chart of corporate governance system> (As of March 31, 2022)

General Shareholders Meeting

Board of Directors

Corporate
Auditors

Nomination
andCompensation
Committee

Board ofCorporate
Auditors

Independent
AuditorCorporate Auditors’
Chamber

Executive Committee

PresidentInternal Control and Compliance
Committee

Managing Executive Officer
Executive Officers

General Managers’ Meeting(General Managers) Respective
Divisions, andChambers of the Head Office(General Managers) 6 branches

Group Management Meeting

Risk Management Committee
Internal
Audit
Department
Sustainability Committee

52 subsidiaries(including 20 overseas
subsidiaries)
15 affiliates

30Under this Code of Conduct, the Company has formulated “Basic Policy Regarding Implementationof Internal Control Systems” as described below, in order to ensure the appropriate execution of duties byexecutives and employees and appropriateness of corporate operations.
(1) System to ensure that the Directors execute their duties in compliance with laws and regulations andthe Articles of Incorporation
Important decision-making shall be deliberated upon and resolved at a meeting of the Board of
Directors that is held once per month in principle in accordance with the Regulations on the Board of
Directors, which clarifies agenda standards. Regarding execution of duties, responsibilities for
Directors shall be defined, and each Director shall execute duties concerning their responsibilities, withaccountability pursuant to laws and regulations and the Articles of Incorporation.
Corporate Auditors shall inspect important decision-making documents, attend meetings of theBoard of Directors, the Executive Committee, and General Managers’ meetings, etc. to ascertain thestatus of important decision-making and the execution of duties, and shall provide opinions.
(2) System to ensure that the employees execute their duties in compliance with laws and regulations
and the Articles of Incorporation
While ensuring thorough recognition of the Company’s “Code of Conduct” and internal
regulations, the Internal Audit Department shall audit compliance with laws and regulations and thestatus of the execution of duties based on the annual audit plan, report the results to the responsible
Executive Directors, and evaluate the status of improvement of the audit results.
In order to prevent or promptly discover and correct actions that may infringe upon laws andregulations and the Articles of Incorporation, an Internal Reporting Hotline (Helpline) shall beestablished.
Furthermore, through establishment of the Internal Control and Compliance Committee, theimplementation status of internal control functions and the compliance conditions shall be evaluated,aiming to enhance the internal controls and CSR compliance.
(3) System for storage and management of information related to the execution of duties of the Directors
Minutes for meetings of the Board of Directors and important documents, etc. regarding theexecution of duties by Directors shall be appropriately stored and managed in accordance with laws
and regulations and internal regulations.
(4) Regulations or any other systems for management of risk of loss
While aiming for thorough compliance with the Basic Risk Management Manual, etc., the Risk
Management Committee shall be established, working toward advance prevention of business risk
and risks related to finance and legal matters, alongside with strengthening measures against natural
disasters. Additionally, if risks arise, “Countermeasure Headquarters” shall be established, andcompanywide support and countermeasures shall be thoroughly implemented, aiming forminimization of losses and early restoration of normal operations.
(5) System to ensure that the execution of duties of the Directors is efficient
We have introduced an executive officer system for the purpose of further strengthening corporate
governance by strengthening management and supervisory functions as well as executive functions,and by improving management efficiency and accelerating decision making.
Directors and Executive Officers shall strictly maintain the efficiency and soundness ofmanagement while executing duties related to their responsibilities according to the management plan.
In addition, all Executive Directors and Executive Officers wigh a title of Managing Executive
Officer or higher shall deliberate regarding the execution of important duties based on adequate
documentation at the Executive Committee held about once per week (observed by full-time
Corporate Auditors), while making resolutions or reporting on execution status at meetings of theBoard of Directors.
(6) System to ensure proper business execution within the Company group consisting of the Company
and its subsidiaries
・ Executives shall be dispatched from the Company to subsidiaries. In addition to implementationof Codes of Conduct suited for the businesses of subsidiaries, they oversee the duties of Directorsof subsidiaries to be executed efficiently in accordance with the management plan.
・ The execution of important duties at subsidiaries shall be deliberated in advance with the Company
in accordance with the Regulations on Affiliate and Subsidiary Administration, and Executive
Directors in charge shall receive reports from the subsidiaries periodically or as needed regarding31

the status of the execution of duties and financial conditions, etc. at subsidiaries.
・ A Group Management Meeting, comprised of the Company and significant subsidiaries, shall be held
about twice per year, ensuring the appropriateness of operations of the overall Group.
・ The Sustainability Committee shall be established to perform examination and progress
management of measures and target values of initiatives for ESG management and SDGs of theGroup to discuss matters regarding the promotion of other initiatives.
・ The Internal Audit Department shall audit compliance with laws and regulations and the status of
the execution of duties at subsidiaries and report the results to the Executive Directors in charge.
Corporate Auditors, the Internal Audit Department of the Company and Corporate Auditors of thesubsidiaries shall cooperate and express their opinions regarding the optimization of operations of
the overall Group as necessary.
・ To prevent or promptly discover and correct actions that may infringe upon laws and regulations
and the Articles of Incorporation, subsidiaries shall establish a common Internal Reporting Hotline(Helpline) jointly with the Company.
・ Regarding risk of losses at subsidiaries, in addition to management according to the Basic Risk
Management Manual, etc., subsidiaries shall establish risk management structures according totheir business types.
・ Appropriate structures for internal controls shall be implemented and operated in order to secure
the reliability of financial reporting.
(7) Employees to assist the duties of Corporate Auditors
The Corporate Auditors’ Chamber shall be established as a department to assist the duties ofCorporate Auditors, and dedicated personnel shall be assigned.
(8) Independence of employees to assist the duties of Corporate Auditors from Directors and mattersconcerning effectiveness of instructions toward said employees
By the nature of their post, personnel dedicated to the Corporate Auditors’ Chamber shall work
directly for Corporate Auditors, and deliberation shall be made with the Board of Corporate Auditors
in advance regarding the selection of such personnel, etc.
(9) System for Directors and employees and executives and employees of subsidiaries (including parties
receiving reports from these persons) to report to Corporate Auditors and other systems for reporting
to Corporate Auditors
Directors and employees as well as executives and employees of subsidiaries (including parties
receiving reports from these persons) shall report periodically to Corporate Auditors regarding thestatus of the execution of duties and financial conditions, etc., and the Internal Audit Department
shall report the results of internal audits to Corporate Auditors.
Additionally, Directors and employees as well as executives and employees of subsidiaries(including parties receiving reports from these persons) shall report as required to Corporate Auditors
regarding matters that will have a significant effect on management.
(10) System to ensure that persons reporting to Corporate Auditors do not receive unfavorable treatment
with said report as rationale
Any unfavorable treatment shall not be incurred due to reporting to Corporate Auditors includinginternal reporting.
(11) Policies for processing expenses or liabilities incurred regarding the execution of duties by Corporate
Auditors
Expenses or liabilities incurred regarding the execution of duties by Corporate Auditors shall beprocessed appropriately in accordance with laws and regulations.
(12) Other systems to ensure the effectiveness of audits by Corporate Auditors
Corporate Auditors shall receive periodic reports from the Accounting Auditor regarding thestatus of audits, and shall conduct effective audits through internal audits by the Internal Audit
Department.
During audits, Directors and employees shall cooperate with Corporate Auditors to provide
required information at the appropriate time.

32

2.

Summary of the operational status of the system in 1. above
Based on the above “Basic Policy Regarding Implementation of Internal Control Systems,” theCompany has established and operated the internal control systems for the Company and subsidiaries.
A summary of the operational status of internal control systems for the fiscal year under review is asfollows.
(1) Status of the execution of duties by Directors and employees
・ Meetings of the Board of Directors were held 12 times, and the Board of Directors deliberated
important matters and made resolutions, and Directors in charge provided reports on the status ofexecution of important duties.
・ Meetings of the Executive Committee, comprised of all Executive Directors and Executive Officers
having a title of Managing Executive Officer or higher chaired by President, was held about once
per week (observed by full-time Corporate Auditors), and deliberated on important mattersregarding management.
・ In light of deliberations at the Executive Committee, each Executive Director and Executive
Officer with a title of Managing Executive Officer or higher executed duties responsibly, including
measures based on the Medium-term Management Plan (2019-2021), according to the division ofduties.
・ The General Managers' Meetings, comprised of General Managers of Branches, Executive Officers,
Corporate Auditors and the General Managers of the Headquarters Department, were held about
once per month for a total of 11 times, and the status of the execution of duties were reported andconfirmed.
・ Meetings of the Internal Control Committee (currently the Internal Control and Compliance
Committee) and Risk Management Committee were each held once, and meetings of the
Sustainability Committee twice. The status of execution of duties companywide was evaluatedfrom the independent viewpoints of each committee. As a measure against COVID-19, theCompany set up a task force headed by the President based on the Basic Risk Management Manual
after consultation with the Risk Management Committee.
・ To ensure thorough dissemination of the Code of Conduct and internal regulations of the Company,
internal training has been conducted, and the status of compliance among executives andemployees has been confirmed through surveys, etc.
・ Minutes for meetings of the Board of Directors and important documents, etc. regarding theexecution of duties by Directors have been managed by each responsible department according to
the number of years required as defined by laws and regulations and internal regulations.
(2) Status of the Corporate Group, composed of the Company and subsidiaries
・ To manage risk of losses arising at the Group, the Company has prepared a Basic Risk Management
Manual, and worked to disseminate it.
・ Executives and employees of the Company are dispatched to subsidiaries and manage them byexecuting their duties and conducting audits and supervision at the subsidiaries.
・ A department to manage subsidiaries were established, and the department discusses the executionof important duties with subsidiaries, receives periodic reports from subsidiaries regarding
financial conditions, etc., and reports to Executive Directors in charge and Corporate Auditors.
Additionally, the Group Management Meeting, comprised of the Company and significant
subsidiaries, was held twice, and business results and issues, etc. were reported and confirmed,
including the progress status of measures based on the Medium-term Management Plan (20192021).
・ Concerning internal controls regarding financial reporting, effectiveness is evaluated based on the“Internal Control Evaluation Policy Book,” which defines the Group’s systems regarding operationand evaluation, and basic policies such as processes and methods.
(3) Status of Corporate Auditors, internal audits, and internal reporting・ Aside from exchanging information with the Representative Director through periodic meetings,
etc., Corporate Auditors attended important meetings such as meetings of the Board of Directors,
the Executive Committee, and General Managers’ Meetings. In addition to the examination ofimportant documents, etc. regarding the execution of duties by Directors such as decision-making
documents, Corporate Auditors have inspected the Company’s audit and subsidiaries andconducted hearings with the Board of Directors, etc. based on the annual audit plan. Additionally,meetings of the Board of Corporate Auditors were held 16 times, and information on the status of
the Company and audit results, etc. have been shared.
33

・ During the formulation and implementation, etc. of their respective annual audit plans, Corporate
Auditors, the Internal Audit Department, Accounting Auditor and Corporate Auditors ofsubsidiaries have conducted periodic meetings and exchanged information as needed, executing
duties effectively and efficiently.
・ To support the execution of duties of Corporate Auditors, a Corporate Auditors’ Chamber (onededicated employee) was established at the headquarters. The dedicated staff member executed
duties under the direction of Corporate Auditors, and matters concerning related personnel, etc.
were deliberated with the Board of Corporate Auditors in advance.
・ Expenses or liabilities that arose during the course of the execution of duties of Corporate Auditors
were appropriately processed in accordance with laws and regulations upon request from Corporate
Auditors.
・ Aside from establishing an Internal Audit Division (eight dedicated employees) at the headquarters
as the Internal Audit Department, audit support employees (two persons) were assigned, andauditors (one each) and audit support employees (two each) were assigned at each branch. Audits
were conducted at the Company and Group companies based on the annual audit plan. Audit results
were reported to Executive Directors in charge and Corporate Auditors, and the status of
improvement is evaluated on a quarterly basis.
・ Including the Corporate Auditors’ Chamber, multiple common Internal Reporting Hotlines were
established in the Group, and internal regulations stipulated the prohibition of unfavorable
treatment to the person who made an internal report.
3.

Basic policy regarding the Company’s control
The Group’s primary businesses are the Logistics Business with Warehousing & Distribution Businessat its core, and the Real Estate Business, which focuses on the leasing of buildings.
Regarding the Logistics Business, the Group aims to organically and comprehensively operate eachof the Overland Transportation, International Transportation and Harbor Transportation businesses
centered on the Warehousing & Distribution Business by using information technologies. In the Real
Estate Business, the Group aims to expand the leasing business primarily in office buildings andcommercial facilities by effectively using the Group’s proprietary lands. Through fair operations of thesebusinesses, the Group aims to ensure appropriate profits and stable growth, and provide returns toshareholders and employees, making contribution to realizing a prosperous society.
Due to the nature of both businesses that needs land, building and facilities, etc. in favorable locations,both businesses require significant investment; therefore, the Company invests its management resources
including funds in a continuous and planned manner from a long-term standpoint with the aim of
expanding and developing businesses.

Although the Company does not unconditionally deny all intension of large-scale acquisition of theCompany’s shares, the Company believes that purchases in conflict with the above that damage corporate
value or common interests of shareholders are inappropriate.
Currently, the Company has not recognized any parties that are attempting large-scale acquisitions of
the Company’s share. However, the Company constantly monitors the trading status of the Company’s
shares, and in the event that a party attempting a large-scale acquisition of the Company’s shares inconflict with these views appears, and if the purchase will not contribute to the Company’s corporate
value and common interests of shareholders, appropriate countermeasures will be considered, and theCompany will prepare a system for the swift implementation of the countermeasures.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Unless otherwise stated, the content of the above report adheres to the following.
1. Monetary amounts and share numbers are rounded down.
2. Ratios are rounded to the first decimal place.
3. If the number of shares or ratio is zero, it is presented as “-.”34Consolidated Balance Sheet(As of March 31, 2022)
Description

Amount(Assets)
Current assets

Description(Millions of yen)Amount(Liabilities)
109,885

Cash and deposits

50,959Notes receivable

622

Current liabilities

91,245

Accounts receivable

38,652

Notes and accounts payable
Short-term bank loans and current
maturities of long-term debt
Income taxes payable

19,704Marketable securities

2,000

Other

19,228

Real estate held for sale

9,869Long-term liabilities

123,181

Other

7,820

Bonds payable

41,000Allowance for doubtful accounts(39)Long-term loans payable

13,60048,296
4,015

Non-current assets

452,301

Deposits on long-term leases

22,402

Property and equipment

283,788

Deferred income tax liabilities

37,269Buildings and structures

139,110

Provision for directors’ retirement
benefits

Machinery and equipment

4,611

Land

Net defined benefit liability

129,527

Other

78
7,860
971

Construction in progress

3,156

Other

7,383

(Net assets)

Intangible assets

12,935

Shareholders’ equity

271,775

Leasehold right

7,727

Common stock

22,393

Goodwill82

Capital surplus

19,600

Other

5,125

Retained earnings

250,528

Investments and other assets

155,577

Treasury shares(20,747)

Investments in securities

145,185

Long-term loans receivable

325

Deferred income tax assets

2,710

Other

7,396

Allowance for doubtful accounts(18)

Allowance for investment loss

(22)

Total assets

Total liabilities

Accumulated other comprehensive
incomeNet unrealized holding gains on
securities
Foreign currency translation
adjustments
Remeasurements of defined benefit
plans
Non-controlling interests

562,187

214,427

72,30969,997
1,788
523
3,674

Total net assets

347,759

Total liabilities and net assets

562,187(Figures are rounded down to the nearest million yen.)35

Consolidated Statement of Income(April 1, 2021 - March 31, 2022)(Millions of yen)
Description

Breakdown

Revenue
Warehousing fee income
Stevedoring income
Land transportation income
Harbor stevedoring income
International transportation income
Rent of real estate for investment
Other
Cost of services
Operational and transportation consignment costs
Personnel expenses
Facility rental expenses
Depreciation and amortization
Other
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividend income
Equity in earnings of unconsolidated subsidiaries andaffiliates
Foreign exchange gains
Other
Non-operating expenses
Interest expense
Other
Ordinary income
Extraordinary income
Gain on disposal of non-current assets
Gain on sale of marketable securities andinvestments in securities
Reversal of allowance for investment loss
Indemnity income of exiting facilities for lease
Extraordinary losses
Loss on disposal of non-current assets
Impairment loss
Loss on sale of marketable securities and investments
in securities
Loss on temporary closure
Profit before income taxes
Income taxes - current
Income taxes - deferred
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

Amount27,923
19,31552,016
17,53473,47532,63934,324
114,718
39,221
10,38415,01749,255257,230

228,598
28,632
10,487
18,144

3,979
721
569
340
577
27

5,611

604
23,151

104
3,523
29
38

3,695

660
36
34
191
6,773
791

922
25,924
7,565
18,359467
17,892(Figures are rounded down to the nearest million yen.)36

Consolidated Statement of Changes in Net Assets(April 1, 2021 - March 31, 2022)(Millions of yen)
Shareholders’ equity

Balance as of April 1, 2021

Common stock

Capital surplus

22,393

19,595Retained earnings Treasury shares
238,349

Cumulative effects of changes inaccounting policies
Restated balance

Totalshareholders’equity(15,792)

264,546(65)
22,393

19,595(65)

238,283(15,792)

264,480

Changes of items during period
Cash dividends(5,648)(5,648)

Profit attributable to owners ofparent17,892

17,892

Purchase of treasury shares
Disposal of treasury shares

5(5,005)(5,005)50

55

Changes other than to shareholders’equity, net
Total changes of items during period
Balance as of March 31, 2022-

5

12,244(4,955)

7,294

22,393

19,600250,528(20,747)

271,775

Accumulated other comprehensive income
Net unrealized Foreign currency Remeasurements
translation
holding gains onof definedadjustments
securities
benefit plan

Balance as of April 1, 2021

58,630(149)

569

Total accumulated Non-controlling
otherinterests
comprehensive
income59,0493,234

Cumulative effects of changes inaccounting policies
Restated balance

Total
net assets

326,829(65)

58,630(149)

569

59,0493,234

326,764

Changes of items during period
Cash dividends(5,648)

Profit attributable to owners ofparent17,892

Purchase of treasury shares(5,005)

Disposal of treasury shares

55

Changes other than to shareholders’equity, net

11,367

1,938

(45)

13,260440

13,701

Total changes of items during period

11,367

1,938

(45)

13,260440

20,995

Balance as of March 31, 2022

69,997

1,788

523

72,3093,674

347,759(Figures are rounded down to the nearest million yen.)37

Notes to the Consolidated Financial Statements
Notes to the Basis for Preparation of Consolidated Financial Statements
1. Scope of consolidation(1) Consolidated subsidiaries
Number of consolidated subsidiaries
48
Names of principal subsidiaries
Fuji Logistics Co., Ltd., Ryoso Transportation Co., Ltd., Dia Buil-Tech Co., Ltd., Shinryo Koun Co., Ltd.,
Mitsubishi Logistics China Co., Ltd., P.T. Mitsubishi Logistics Indonesia, Mitsubishi Logistics America
Corporation and Mitsubishi Logistics Europe B.V.
Former consolidated subsidiary Chubo Kaihatsu Co., Ltd. has been excluded from the scope of
consolidation because it has been dissolved via an absorption-type merger with the Company as thesurviving company. Former consolidated subsidiary Fuji Logistics (Dalian F.T.Z.) Co., Ltd. has been
excluded from the scope of consolidation because it has been dissolved via an absorption-type merger with
Fuji Logistics (Shanghai) Co., Ltd. as the surviving company.
(2) Non-consolidated subsidiaries
Names of principal non-consolidated subsidiary
Dia Logistics (M) Sdn. Bhd.
Non-consolidated subsidiaries are respectively small in scale, and the totals of total assets, revenue, profit
attributable to owners of parent (proportional amount of equity), and retained earnings (proportionalamount of equity), etc., each do not have a significant effect on the consolidated financial statements, thus
these subsidiaries are excluded from the scope of consolidation.
2. Application of the equity method(1) Non-consolidated subsidiaries and affiliates accounted for by the equity method
There are no non-consolidated subsidiaries accounted for by the equity method.
Number of affiliates subject to the equity method
3Name of principal affiliate
MY Terminals Holdings, Limited, Kusatsu Soko Co., Ltd.
(2) Non-consolidated subsidiaries and affiliates not subject to the equity method
Name of principal non-consolidated subsidiary
Dia Logistics (M) Sdn. Bhd.
Name of principal affiliate
Nakatani Transportation Co., Ltd.
As non-consolidated subsidiaries and affiliates not subject to the equity method each of these companies has
only an immaterial effect on profit attributable to owners of parent and retained earnings, etc. and isinsignificant overall, these are excluded from application of the equity method.
3. Matters concerning the fiscal year, etc., of consolidated subsidiaries
All consolidated subsidiaries excluding 17 overseas subsidiaries such as Mitsubishi Logistics America
Corporation end their fiscal years on the same day as the Company.
The last day of the fiscal year for 17 overseas subsidiaries such as Mitsubishi Logistics America
Corporation is December 31. The financial statements as of December 31 are used in the consolidated
financial statements, and if any material transactions incur during the period from December 31 to March 31,
necessary adjustments are made on the consolidated financial statements.
4. Matters concerning accounting policies(1) Standards and methods for valuation of important assets
A. Securities
Available-for-sale securities
Securities other than stocks, etc., without market priceMarket value method(Valuation difference is transferred directly to net assets. The cost of sales is calculated using
the moving average method.)38

Stocks, etc., without market priceStated at cost using the moving-average method.
B. Derivatives
Stated using the market value method.
C. Inventories (real estate held for sale)
Mainly stated at cost using the specific identification method.
(calculated by writing them down based on decline in profitability.)(2) Depreciation and amortization method for important depreciable or amortizable assets
A. Property and equipment (excluding leased assets)
The declining-balance method is applied.
Warehouse facilities (actual buildings), commercial facilities for lease (actual buildings) and facilities
and structures attached to buildings acquired on or after April 1, 2016 are calculated using the straightline method.
Furthermore, useful lives are estimated according to stipulations of the Corporation Tax Act, and lives
for commercial facilities for lease (actual buildings) are determined with a standard of 20 years, taking
into account the lease agreement period, etc.
B. Intangible assets (excluding leased assets)
The straight-line method is applied.
Computer software for internal use is amortized over the estimated internal useful life (5 to 10 years)
using the straight-line method.
C. Leased assets(Leased assets relating to finance lease transactions without the transfer of ownership)
Leased assets are depreciated using the straight-line method with no residual value over the lease termof the leased assets.
(3) Important standards of accounting for reserves
A.

Allowance for doubtful accounts
To provide for losses resulting from unrecoverable claims such as accounts and loans receivable,
allowance for doubtful accounts is recorded based on the historical write-off rate for ordinary
receivables, and based on expected uncollectable accounts individually for receivables.

B.

Allowance for investment loss
To provide for losses resulting from a decline in the substantial price of stock and investment withoutmarket price, allowance is recorded taking into account the possibility of recovery if total net assetsof the issuing company fall below the book value.

C.

Provision for directors’ retirement benefits
To provide for payments of retirement benefits for directors at certain consolidated subsidiaries,
amounts to be paid at the end of the fiscal year under review are recorded, based on entity's rules.

(4) Accounting treatment of retirement benefits
A.

Method of attributing the estimated benefit obligation to periods
Upon calculating the retirement benefit obligation, the estimated benefit obligation is attributed to theperiod up until the fiscal year under review on a benefit formula basis.

B.

Amortization method of actuarial calculation differences and prior service costs
Actuarial calculation differences are amortized using the straight-line method over a certain period (5to 15 years) within the average remaining years of service of employees, beginning from the fiscal
year following the incurred year. Prior service costs are recognized using the straight-line method
over a certain period (15 years) within the average remaining years of service of employees, beginningfrom the incurred year.
39

(5) Standards of accounting for revenue and expenses
A.

Logistics business(i) Warehousing and distribution business
The main performance obligations are conducting storage and handling of incoming and outgoingcargo, etc., at warehouses containing consigned items. For storage, the Company deems that
performance obligations are satisfied and recognizes revenue when a certain period of storage orprovision of storage area for consigned items lapses. For the handling of incoming and outgoingcargo, the Company deems that performance obligations are satisfied and recognizes revenue when
the cargo handling operations are completed.
(ii) Overland transportation business
The main performance obligations are conducting transport and usage transport, etc., by freightautomobiles. The Company deems that performance obligations are satisfied and recognizes revenue
when freight shipped or accepted is transported.
(iii) Port and harbor operation business
The main performance obligations are conducting coastal cargo handling and onboard cargohandling, etc., at ports. The Company deems that performance obligations are satisfied andrecognizes revenue when the cargo handling operations are completed.
(iv) International transportation business
The main performance obligations are conducting handling of international product transport, etc.,
including handling marine cargo transport. For handling marine cargo, the Company deems that
performance obligations are satisfied and recognizes revenue when import and export procedures
such as customs clearance are completed. For the international cargo transport, the Company deems
that performance obligations are satisfied and recognizes revenue when cargo loaded on vessels or
aircraft are transported.
B.

Real estate business(i) Real estate leasing business
The business includes mainly real estate lease operations and real estate management operations.
The real estate management operations are related to lease transactions and its revenue is from othersources than revenues from contracts with customers. The main performance obligations of realestate management operations are providing services such as maintenance, cleaning, andadministration of the leased facilities, and the Company deems that performance obligations are
satisfied and recognizes revenue when the entire process of services is provided.
(ii) Other
The main performance obligations are handover, etc., of real estate for sale. The Company deems
that performance obligations are satisfied and recognizes revenue basically when real estate for saleis transferred to customers.
(6) Amortization method and amortization period of goodwill
Goodwill is amortized over 5 to 10 years on a straight-line basis. Any immaterial amounts are fullyrecognized as expenses as incurred.

40

Changes in accounting policies(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March
31, 2020; hereinafter “Revenue Recognition Standard”) and other standards from the current fiscal year. The
Company recognizes revenue when control of a promised good or service is transferred to a customer in an
amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods
and services.
Accordingly, the revenue recognition of a certain part of revenue in the International Transportation Businesshas changed from the gross basis to the net basis, after considering the role (the person in question or theirrepresentative) in the provision of goods or services to customers. In addition, the revenue recognition methodof the ocean transportation in the said business has changed to the method to recognize revenue on arrival, after
considering the identification and timing of satisfaction of performance obligations. The Company applies the
Revenue Recognition Standard, etc. in accordance with the transitional treatment provided for in the proviso toParagraph 84 of the Revenue Recognition Standard. The cumulative impact of retrospectively applying the new
accounting policies to prior periods is adjusted to retained earnings at the beginning of the fiscal year underreview, with the new accounting policies applied from the beginning balance.
As a result of this change, compared with the figures before the application of the Revenue Recognition Standard,etc., accounts receivable decreased by 3,987 million yen, and notes and accounts payable decreased by 3,791
million yen in the consolidated balance sheet for the fiscal year under review. In the consolidated statement ofincome for the fiscal year under review, revenue decreased 6,289 million yen, cost of services decreased by
6,187 million yen, and operating income, ordinary income, and profit before income taxes decreased by 101
million yen, respectively. In addition, the beginning balance of retained earnings decreased by 65 million yen.
(Application of Accounting Standard for Fair Value Measurement)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30,
July 4, 2019; hereinafter “Fair Value Measurement Standard”) and other standards from the current fiscal year,
and will prospectively apply the new accounting policies stipulated by the Fair Value Measurement Standard,
etc. in accordance with the transitional treatment provided in Paragraph 19 of the Fair Value Measurement
Standard and Paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10,
July 4, 2019). This does not affect the consolidated financial statements.
Notes to accounting estimates
The Company made accounting estimates at reasonable amounts calculated based on the information available
at the time of preparing the consolidated financial statements.
Items of accounting estimates recorded in the consolidated financial statements for the current fiscal year thathave the risk of significantly impacting the consolidated financial statements for the following fiscal year are as
follows.
Decision on recognition of impairment loss of non-current assets
1. Amount recognized in the consolidated financial statements for the fiscal year under review
Impairment loss is not recognized for one significant asset group location (total book value: 4,456 million
yen; hereinafter “the verified asset groups.”) which showed indications of impairment due to a fall in fairvalue of land and buildings, etc., because the Company verified the necessity of recognizing impairment
based on the total amount of undiscounted future cash flows that is expected to arise from the continuous
use and eventual disposal of the asset groups, and determined that such undiscounted future cash flows
exceeds the book value of the non-current assets of the asset group.
2. Other information relating to accounting estimates that will facilitate the understanding of the users of theconsolidated financial statements
In principle, the Group classifies assets mainly into groups based on profit centers (units for calculating
profit/loss such as office locations and facilities).
In the event that an asset group shows indications of impairment due to factors such as a fall in the fairvalue of land and buildings, etc. and reduced profitability, the Company determines whether to recognize
41

impairment loss by comparing the undiscounted future cash flows from the asset group and its book value.
As a result, if it is deemed necessary to recognize impairment loss because the undiscounted future cash
flows fell below book value, the book value is reduced to the recoverable amount (the higher of net selling
price or value in use) and the reduction amount of such book value is recorded as impairment loss.
While future cash flows that is expected to arise from continuous usage of the verified asset groups are
based on the management plan formulated on the basis of results of previous fiscal years, they mainly
assume the recording of stable revenue, future repair plans, and the expected future use of major assets,
which naturally involve uncertainties. Depending on future situations, estimates of future cash flows may
be significantly affected.
Notes to Consolidated Balance Sheet
1. Accumulated depreciation of property and equipment
2. Accumulated deferred tax reserves for non-current assets

328,648 million yen
3,218 million yen

3. Collateral assets
Assets pledged as collateralLand

744 million yen

Obligations related to the above
Short-term bank loans

150 million yen“Other” of current liabilities

96 million yen

Long-term loans payable

283 million yen

Deposits on long-term leases

1,000 million yen

4. Guarantee liability
Liability guarantees for borrowings of other companies

628 million yen

Notes to Consolidated Statements of Income
Impairment loss
The Group recognized impairment loss in the following asset group for the fiscal year under review:
Location
Use
Type
Amount (million yen)
Buildings, tools andOsaka City, Osaka
Warehouse facilities
36
furniture, and others
In calculating impairment loss, assets are grouped by the lowest level that generates a cash flow independent
from other assets or asset groups.
The above asset groups have been recognized to have reduced profitability from operating activities, and as
short-term recovery is not expected, book values for assets related to said asset groups have been reduced to
the recoverable amounts, and the reduction amount of 36 million yen (120 thousand yen in buildings, 14
million yen in tools and furniture and 9 million yen in others) has been recorded as impairment loss in
extraordinary losses.
The recoverable amounts are measured based on net selling price or value in use. Net selling prices are derived
from estimated disposal prices and value in use is considered to be zero since future cash flow cannot be
expected.

42

Notes to Consolidated Statement of Changes in Net Assets
1. Type and number of shares issued
Total number of shares issued as of March 31, 2022: Common stock

87,960,739 shares

2. Dividends(1) Dividend amountResolution
General Meeting of
Shareholders on
June 29, 2021
Meeting of theBoard of Directors
on October 29,
2021

Type ofstock

Total dividends(million yen)

Dividend pershare (yen)Record date

Effective dateCommon
stock

2,480

30

March 31,2021

June 30, 2021

Common
stock

3,167

39

September 30,
2021

December 1,
2021(2) Dividends whose record date is during this fiscal year, but whose effective date is after the end of thisfiscal year
The following items are proposed at the General Meeting of Shareholders to be held on June 29, 2022.
(i)

Total dividends

3,329 million yen(ii)

Source of dividends

Retained earnings(iii) Dividend per share

41 yen(iv) Record date

March 31, 2022(v)

June 30, 2022

Effective date

43

Notes to Financial Instruments
1. Status of Financial Instruments
The Group raises necessary funds mainly by bank loans or issuance of bonds. Temporary cash surplus, if any,
are invested in highly secured deposits, public bonds and corporate bonds, etc.
Notes and accounts receivable are exposed to credit risk of customers. In order to reduce such credit risk, theGroup controls on due date and balance for each customer in accordance with internal customer credit
management rules.
Investments in securities are mainly stocks issued by companies with which the Group has business relations.
The Group ascertains the fair values of such stocks at regular intervals.
Short-term loans are used mainly for operating capital, while long-term loans payable are used mainly forcapital expenditure. Interest rate swap contracts may be used as a hedging instrument for long-term loans
payable with floating interest rates in order to avoid interest rate fluctuation risk. Derivatives are used basedon actual demand only.
2. Current Value, etc. of Financial Instruments
The amounts posted on the consolidated balance sheet, the fair values, and the differences thereof as of March
31, 2022 are as follows.
(Millions of yen)
Consolidated balance
Fair value
Difference
sheet amount(1) Investments in securities
120,290
120,290
Available for-sale securities (*2)
Total assets
120,290
120,290(1) Bonds payable
41,00040,294(705)(2) Long-term loans payable (*3)
26,02426,06843(3) Deposits on long-term leases
22,402
22,336(65)
Total liabilities
89,426
88,699(727)(*1) “Cash and deposits,” “Notes receivable,” “Accounts receivable,” Marketable securities,” “Notes and accounts payable,”and “Short-term bank loans” are omitted because they are cash and their fair values approximate their book values as thesettlement term of these items are short.
(*2) Stocks, etc., without market price are not included in the “(1) Investments in securities.” The consolidated balance sheet
amount of the said financial instruments is as follow.

Categories
Unlisted securities and others

The fiscal year under review (Millions of yen)
24,894(*3) Including current maturities of long-term debt.

3. Breakdown of Fair Values of the Financial Instruments by Appropriate Levels
The fair value of financial instruments is classified into the following three levels according to theobservability and materiality of inputs used to measure fair value.
Level 1 fair value:
Fair value measured using observable inputs, i.e., quoted prices in active markets
for assets or liabilities that are the subject of the measurement.
Level 2 fair value:
Fair value measured using observable inputs other than Level 1 inputs.
Level 3 fair value:
Fair value measured using unobservable inputs.
If multiple inputs are used that are significant to the fair value measurement, the fair value measurement iscategorized in its entirety in the level of the lowest level input that is significant to the entire measurement.

44

(1) Financial instruments and securities measured at fair value in the consolidated balance sheet
The fiscal year ended on March 31, 2022
Fair Value (Millions of yen)
Categories
Level 1
Level 2
Level 3
Total
Investments in securities
Available for-sale securities
Stocks120,290
120,290
Total assets
120,290
120,290(2) Financial instruments and securities other than those measured at fair value in the consolidated balance
sheet
The fiscal year ended on March 31, 2022
Fair Value (Millions of yen)
Categories
Level 1
Level 2
Level 3
Total
Bonds payable
40,29440,294Long-term loans payable
26,06826,068Deposits on long-term leases
22,33622,336
Total liabilities
66,363
22,336
88,699(Note) A description of the valuation techniques and inputs used in the fair value measurements
Investments in securities
Listed shares are valued using quoted prices. As listed shares are traded in active markets, their fair value isclassified as Level 1.
Bonds payable
Although the fair value of bonds payable issued by the Company is measured using market price, their fairvalue is classified as Level 2 as they are not traded in active markets.
Long-term loans payable
The fair value of long-term loans payable is measured using the discounted cash flow method based on the sumof principal and interest, remaining maturities, and an interest rate reflecting credit risk, and is classified as
Level 2.
Deposits on long-term leases
The fair value of deposits on long-term leases is measured using the discounted cash flow method based on the
future cash flows, estimated remaining maturities, and an interest rate reflecting credit risk, and is classified as
Level 3.
Notes to Real Estates for Rent
The Company and some of its subsidiaries have some investments and rental property such as office buildings
for rent (including land) in Tokyo and other regions.
(Millions of yen)Amount on the consolidated balance sheet
Fair value
135,665399,730(Note 1) The amount on the consolidated balance sheet is the amount obtained by deducting accumulated depreciation fromacquisition cost.
(Note 2) Fair value as of March 31, 2022 was the amount mainly based on appraisal by an external real estate appraiser.

45

Notes to Revenue Recognition
1. Disaggregation of revenue from contracts with customers(Millions of yen)Segment
Real Estate

Logistics
Revenue
Warehousing fee income
Stevedoring income
Land transportation income
Harbor stevedoring income
International transportation
incomeRent of real estate forinvestment
Other
Revenue from contracts withcustomers
Revenue from other sources
Operating revenue to nonaffiliated customers

Total

27,923
19,31552,016
17,534-27,923
19,31552,016
17,53473,475-73,475

185

8,376

8,562

20,914

13,40934,324

211,366

21,786

233,152

3,184

20,892

24,077

214,550

42,679257,230(Note) Revenue from other sources represents income from rent of real estate, etc., included in “Accounting Standard for Lease
Transactions.”

2. Information in understanding the amount of revenue in the current fiscal year and the following fiscal year
(1) Balance of contract liabilities, etc.
(Millions of yen)
The fiscal year under review
Receivables from contracts with customers
36,959(beginning balance)
Receivables from contracts with customers
39,275(ending balance)
Contract liabilities (beginning balance)
350
Contract liabilities (ending balance)
449(Note 1) Contract liabilities are mainly related to advances received from customers of condominium sales in the real estate business.
Contract liabilities are reversed upon recognition of revenue.
(Note 2) Contract liabilities are included in “Other” on the current liabilities in the consolidated balance sheet.

(2) Transaction price allocated to the remaining performance obligations
The Group has no significant contract whose terms are expected to be more than one year. In addition,
consideration promised in contracts with customers does not have any significant amounts not included in thetransaction price.
Notes to Per Share Information
1. Net assets per share
2. Basic earnings per share

4,238.85 yen
219.47 yen

46

Notes to Significant Subsequent Events
At the meeting of the Board of Directors held on April 28, 2022, the Company resolved matters relating to
the purchase of treasury shares pursuant to the provisions of Article 156 of the Companies Act, which areapplied by replacing certain terms pursuant to the provisions of Article 165 Paragraph 3 of the Companies
Act, and resolved to retire the treasury shares pursuant to the provisions of Article 178 of the Companies Act.
1. Reasons for purchasing and retirement of treasury shares
In order to further improve shareholders returns and capital efficiency flexibly in accordance with thepolicy of returning profits to shareholders in the Medium-term Management Plan (2022-2024)
announced on March 25, 2022.
2. Details of the matters concerning purchase(1) Type of shares to be purchased
Common stock of the Company(2) Total number of shares to be purchased 4,000,000 shares (maximum)(Ratio to the total number of shares issued (excluding treasury shares): 4.9%)(3) Total purchase price of shares
10,000 million yen (maximum)(4) Purchase period
May 2, 2022 – March 31, 2023
(5) Purchase method
Market purchase on the Tokyo Stock Exchange
3. Details of the matters concerning retirement(1) Type of shares to be retired
Common stock of the Company(2) Total number of shares to be retired
6,000,000 shares(Ratio to the total number of shares issued before retirement: 6.8%)(3) Expected date of retirement

May 20, 202247

Non-consolidated Balance Sheet(As of March 31, 2022)
Description(Assets)
Current assets
Cash and deposits
Notes receivable
Accounts receivable
Marketable securities
Real estate held for sale
Prepaid expenses
Short-term loans receivable
Advances paid
Other
Allowance for doubtful accounts
Non-current assets(Millions of yen)AmountAmount68,25725,271279
26,891
2,000
9,869
746
296
2,605
307
(11)
437,733

Property and equipment

253,062

Buildings
Structures
Machinery and equipment
Transportation equipment
Tools, furniture and fixtures
Land
Leased assets
Construction in progress
Intangible assets
Leasehold right
Software122,318
2,829
3,309
103
1,532
116,845
3,027
3,095
10,966
7,670
3,058

Other

237

Investments and other assets

173,704

Investments in securities

121,766

Investments in capital ofsubsidiaries and affiliates

43,736Long-term loans receivable
Guarantee deposits
Other
Allowance for doubtful accounts
Allowance for investment loss
Total assets

Description(Liabilities)
Current liabilities
Accounts payable
Short-term bank loans andcurrent maturities of longterm debt
Accounts payable - other
Income taxes payable
Advances received
Deposits received
Other
Long-term liabilities
Bonds payable
Long-term loans payable
Deposits on long-term leases
Deferred income tax
liabilities
Retirement benefits
Total liabilities(Net assets)
Shareholders’ equity
Common stock
Capital surplus
Legal capital surplus
Other capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for private
insurance
Reserve for reduction entry
Reserve for special
depreciation
General reserve

78,264
14,20848,148
5,527
2,960
4,196
1,707
1,514
110,115
41,00011,503
20,81135,144
1,655
188,379
248,425
22,393
19,38819,383
5
227,354
3,121
224,233
8,328
38,22992
138,240

Retained earnings brought
39,342
forward
3,753
Treasury shares(20,711)
Valuation and translation
424
69,185adjustments
Net unrealized holding gains on(18)
69,185securities(688)
Total net assets
317,611505,990
Total liabilities and net assets
505,990(Figures are rounded down to the nearest million yen.)
4,729

48

Non-consolidated Statement of Income(April 1, 2021 - March 31, 2022)(Millions of yen)
Description

BreakdownAmountRevenue
Warehousing fee income

19,720

Stevedoring income

10,580Land transportation income

27,909Harbor stevedoring income

15,900International transportation income

52,384

Rent of real estate for investment

30,704

Other

26,939184,137

Cost of services
Operational and transportation consignment costs

91,289Personnel expenses

14,260

Facility rental expenses

7,056

Depreciation and amortization

12,067

Other

41,663

166,338
17,799Gross profit

5,753

Selling, general and administrative expenses

12,046

Operating income
Non-operating income

6,012Interest and dividend income

401

Other

6,413

Non-operating expenses
Interest expense

458

Other

48

506
17,952

Ordinary income
Extraordinary income
Gain on sale of marketable securities andinvestments in securities
Reversal of allowance for investment loss

3,523
1,236
38

Indemnity income of exiting facilities for lease

1,704

Gain on extinguishment of tie-in shares

6,503

Extraordinary losses

604

Loss on disposal of non-current assets
Loss on sale of marketable securities andinvestments in securities
Loss on valuation of shares of subsidiaries andaffiliates
Loss on temporary closure
Income before income taxes

34
80
123

Income taxes - current

4,983

Income taxes - deferred
Net income

982

843
23,612

5,965
17,646(Figures are rounded down to the nearest million yen.)49

Non-consolidated Statement of Changes in Net Assets(April 1, 2021 - March 31, 2022)(Millions of yen)

Shareholders’ equity
Capital surplus
Commonstock

Balance as of April 1, 2021
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes of items during
periodCash dividends
Net income
Provision of reserve forprivate insurance
Reversal of reserve for
reduction entry
Provision of reserve for
reduction entry
Reversal of reserve forproperty replacement
Reversal of reserve for
special depreciation
Provision of reserve for
special depreciation
Purchase of treasury
shares
Disposal of treasury
sharesChanges other than toshareholders’ equity,net
Total changes of items
during the period
Balance as of March 31,
2022

Retained earnings
Other retained earnings
Reserve
Reserve forReserve for
for
privateproperty
reduction
insurance
replacement
entry

Legal
retainedearnings

Legal capitalsurplus

Other capitalsurplus22,393

19,383

0

3,121

8,128

27,32911,25722,393

19,383

0

3,121

8,128

27,32911,257200(356)
11,257(11,257)

5

-

-

5

-

200

10,900(11,257)

22,393

19,383

5

3,121

8,328

38,229-(Figures are rounded down to the nearest million yen.)50

Valuation andtranslation
adjustments

Shareholders’ equity
Retained earnings
Other retained earnings
Reserve for
Retained
Generalspecialearnings brought
reservedepreciation
forwardBalance as of April 1, 2021
Cumulative effects ofchanges in accounting
policies
Restated balance

113

138,240

27,232

Treasuryshares(15,756)(65)
113

138,240

27,166

Total
shareholders' Net unrealized
holding gains
equityon securities

241,442

57,806Total
net assets

299,249(65)(15,756)

241,376(65)
57,806299,183

Changes of items during
period(5,648)17,646(5,648)17,646(5,648)17,646

(200)

-

-

356

-

-

(11,257)--

11,257

-

-

(58)

58

-

-

37

(37)

-

-

(5,005)(5,005)(5,005)

50

55

55

Cash dividends
Net income
Provision of reserve forprivate insurance
Reversal of reserve for
reduction entry
Provision of reserve for
reduction entry
Reversal of reserve forproperty replacement
Reversal of reserve for
special depreciation
Provision of reserve for
special depreciation
Purchase of treasury
shares
Disposal of treasury
sharesChanges other than toshareholders’ equity,net
Total changes of items
during the period
Balance as of March 31,
2022

11,378

11,378(21)-

12,176(4,955)

7,048

11,37818,42792

138,240

39,342(20,711)

248,425

69,185

317,611(Figures are rounded down to the nearest million yen.)51

Notes to the Non-consolidated Financial Statements
Notes to Significant Accounting Policies
1. Standards and methods of valuation of securities(1) Stocks of subsidiaries and affiliates
Stated at cost using the moving-average method.
(2) Available-for-sale securities
Securities other than stocks, etc., without market priceMarket value method (Valuation difference is transferred directly to net assets. The cost of sales iscalculated using the moving average method.)
Stocks, etc., without market priceStated at cost using the moving-average method.
2. Standards and methods of valuation of derivatives
Stated using the market value method.
3. Standards and methods of valuation of inventories
Valuation for real estate held for sale is recorded using the cost accounting method (method to reduce bookvalues based on declines in profitability) on an individual basis.
4. Depreciation and amortization method for non-current assets(1) Property and equipment (excluding leased assets)
The declining-balance method is applied.
Warehouse facilities (actual buildings), commercial facilities for lease (actual buildings) and facilities
and structures attached to buildings acquired on or after April 1, 2016 are calculated using the straightline method.
Furthermore, useful lives are estimated according to stipulations of the Corporation Tax Act, andcommercial facilities for lease (actual buildings) are determined with a standard of 20 years, withadjustments made for factors such as the lease agreement period, etc.
(2) Intangible assets (excluding leased assets)
The straight-line method is applied.
Computer software for internal use is amortized over the estimated internal useful life (5 to 10 years)
using the straight-line method.
(3) Leased assets
Leased assets relating to finance lease transactions without the transfer of ownership.
Leased assets are depreciated using the straight-line method with no residual value over the lease termof the leased assets.
5. Standards of accounting for reserves
Allowance for doubtful accounts
To provide for losses resulting from unrecoverable claims such as accounts and loans receivable,
allowance for doubtful accounts is recorded based on the historical write-off rate for ordinary
receivables, and based on expected uncollectable amounts individually for receivables.
Allowance for investment loss
To provide for losses resulting from a decline in the substantial price of stock and investment withoutmarket price, allowance is recorded taking into account the possibility of recovery if total net assetsof the issuing company fall below the book value.

52

Provision for retirement benefits
Provision for retirement benefits is provided based on the estimated benefit obligation and pension
assets as of March 31, 2022.
1) Method of attributing the estimated benefit obligation to periods
Upon calculating the retirement benefit obligation, the estimated benefit obligation is attributed to theperiod up until the fiscal year under review on a benefit formula basis.
2) Amortization method of actuarial calculation differences
Actuarial calculation differences are amortized using the straight-line method over a certain period (5years) within the average remaining years of service of employees, beginning from the fiscal year
following the incurred year.
3) Accounting treatment of retirement benefits
The method of accounting treatment of unrecognized actuarial calculation differences on retirement
benefits differs from the method of accounting for these in the consolidated financial statements.
6. Standards of accounting for revenue and expenses(1) Logistics business(i) Warehousing and distribution business
The main performance obligations are conducting storage and handling of incoming and outgoingcargo, etc., at warehouses containing consigned items. For storage, the Company deems that
performance obligations are satisfied and recognizes revenue when a certain period of storage orprovision of storage area for consigned items lapses. For the handling of incoming and outgoingcargo, the Company deems that performance obligations are satisfied and recognizes revenue when
the cargo handling operations are completed.
(ii) Overland transportation business
The main performance obligations are conducting usage transport, etc., by freight automobiles. The
Company deems that performance obligations are satisfied and recognizes revenue when freightshipped or accepted is transported.
(iii) Port and harbor operation business
The main performance obligations are conducting coastal cargo handling and onboard cargohandling, etc., at ports. The Company deems that performance obligations are satisfied andrecognizes revenue when the cargo handling operations are completed.
(iv) International transportation business
The main performance obligations are conducting handling of international product transport, etc.,
including handling marine cargo transport. For handling marine cargo, the Company deems that
performance obligations are satisfied and recognizes revenue when import and export procedures
such as customs clearance are completed. For the international cargo transport, the Company deems
that performance obligations are satisfied and recognizes revenue when cargo loaded on vessels or
aircraft are transported.
(2) Real estate business(i) Real Estate Leasing Business
The business includes mainly real estate lease operations and real estate management operations.
The real estate management operations are related to lease transactions and its revenue is from othersources than revenues from contracts with customers. The main performance obligations of realestate management operations are providing services such as maintenance, cleaning, andadministration of the leased facilities, and the Company deems that performance obligations are
satisfied and recognizes revenue when the entire process of services is provided.

53

(ii) Other
The main performance obligations are handover, etc., of real estate for sale. The Company deems
that performance obligations are satisfied and recognizes revenue basically when real estate for saleis transferred to customers.
Changes in accounting policies(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March
31, 2020; hereinafter “Revenue Recognition Standard”) and other standards from the current fiscal year. The
Company recognizes revenue when control of a promised good or service is transferred to a customer in an
amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods
and services.
Accordingly, the revenue recognition of a certain part of revenue in the International Transportation Businesshas changed from the gross basis to the net basis, after considering the role (the person in question or theirrepresentative) in the provision of goods or services to customers. In addition, the revenue recognition methodof the ocean transportation in the said business has changed to the method to recognize revenue on arrival, after
considering the identification and timing of satisfaction of performance obligations. The Company applies the
Revenue Recognition Standard, etc. in accordance with the transitional treatment provided for in the proviso toParagraph 84 of the Revenue Recognition Standard. The cumulative impact of retrospectively applying the new
accounting policies to prior periods is adjusted to retained earnings brought forward at the beginning of the fiscal
year under review, with the new accounting policies applied from the beginning balance.
As a result of this change, compared with the figures before the application of the Revenue Recognition Standard,etc., accounts receivable decreased by 3,911 million yen, and accounts payable decreased by 3,725 million yen
in the non-consolidated balance sheet for the fiscal year under review. In the non-consolidated statement ofincome for the fiscal year under review, revenue decreased 6,089 million yen, cost of services decreased by
5,997 million yen, and operating income, ordinary income, and income before income taxes decreased by 91
million yen, respectively. In addition, the beginning balance of retained earnings brought forward decreased by
65 million yen.
(Application of Accounting Standard for Fair Value Measurement)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30,
July 4, 2019; hereinafter “Fair Value Measurement Standard”) and other standards from the current fiscal year,
and will prospectively apply the new accounting policies stipulated by the Fair Value Measurement Standard,
etc. in accordance with the transitional treatment provided in Paragraph 19 of the Fair Value Measurement
Standard and Paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10,
July 4, 2019). This does not affect the non-consolidated financial statements.
Notes to accounting estimates
The Company made accounting estimates at reasonable amounts calculated based on the information available
at the time of preparing the non-consolidated financial statements.
Items of accounting estimates recorded in the non-consolidated financial statements for the current fiscal yearthat have the risk of significantly impacting the non-consolidated financial statements for the following fiscal
year are as follows.
Decision on recognition of impairment loss of non-current assets
1. Amount recognized in the non-consolidated financial statements for the fiscal year under review
Impairment loss is not recognized for one significant asset group location (total book value: 4,456 million
yen) which showed indications of impairment due to a fall in fair value of land and buildings, etc., because
the Company verified the necessity of recognizing impairment based on the total amount of undiscounted
future cash flows that is expected to arise from continuous use and eventual disposal of the asset groups,
and determined that such undiscounted future cash flows exceeds the book value of the non-current assets
54

of the asset group.
2. Other information relating to accounting estimates that will facilitate the understanding of the users of
the non-consolidated financial statements
Please refer to “Notes to the Consolidated Financial Statements, (Notes to accounting estimates)”presented above.
Notes to Non-Consolidated Balance Sheet
1. Monetary receivables from and payables to affiliates
Short-term monetary asset
5,368 million yen
Short-term monetary liability 10,325 million yen

Long-term monetary asset
Long-term monetaryliability

4,435 million yen
655 million yen

297,713 million yen

2. Accumulated depreciation of property and equipment
3. Accumulated deferred tax reserves for non-current assets

3,218 million yen

4. Collateral assets
Assets pledged as collateral
Land
Obligations related to the above
Short-term bank loans
Long-term loans payable

744 million yen
150 million yen
283 million yen

Advances received
Long-term deposits
received

96 million yen
1,000 million yen

5. Guarantee liability
Liability guarantees for borrowings of other companies

660 million yen

Notes to Non-consolidated Statement of Income
1. Transactions with affiliates
Operating transactions
Revenue
Transactions other than operating transactions

19,663 million yen
2,805 million yen

Notes to Non-consolidated Statement of Changes in Net Assets
Number of treasury shares as of March 31, 2022
Common stock 6,751,940 shares

55

Cost

52,254 million yen

Notes to Tax Effect Accounting
Major factors for deferred tax assets and liabilities[Deferred income tax assets]
Enterprise taxes payable
Allowance for investment loss
Accrued bonuses
Retirement benefits
Depreciation
Impairment loss
Other
Total deferred income tax assets[Deferred income tax liabilities]
Net unrealized holding gains on securities
Reserve for reduction entry
Reserve for special depreciation
Total deferred income tax liabilities
Net deferred income tax liabilities

201 million yen
210 million yen
575 million yen
506 million yen
6,485 million yen
2,080 million yen
2,025 million yen
12,085 million yen(30,332) million yen(16,856) million yen(40) million yen(47,229) million yen(35,144) million yen

Notes to Related Parties
Officers and major individual shareholders, etc.
Type

OfficerName of personof company,etc.

Percentage
ownershipof votingrights held

Tatsuo-Wakabayashi

Relationshipwith relatedparties

Summary oftransactions

Director of theSale ofCompany

condominium

Transaction
amount(Millions of
yen)

Item

Balance atperiod end(Millions of
yen)

42

-

-

(Note) The sales price of condominium is determined under general transaction conditions.

Notes to Per Share Information
1. Net assets per share

3,911.04 yen

2. Basic earnings per share 216.37 yen
Notes to Significant Subsequent Events
At the meeting of the Board of Directors held on April 28, 2022, the Company resolved matters relating to
the purchase of treasury shares pursuant to the provisions of Article 156 of the Companies Act, which areapplied by replacing certain terms pursuant to the provisions of Article 165 Paragraph 3 of the Companies
Act, and resolved to retire the treasury shares pursuant to the provisions of Article 178 of the Companies Act.
1. Reasons for purchasing and retirement of treasury shares
In order to further improve shareholders returns and capital efficiency flexibly in accordance with thepolicy of returning profits to shareholders in the Medium-term Management Plan (2022-2024) announced
on March 25, 2022.
2. Details of the matters concerning purchase(1) Type of shares to be purchased
Common stock of the Company(2) Total number of shares to be purchased 4,000,000 shares (maximum)(Ratio to the total number of shares issued (excluding treasury shares): 4.9%)(3) Total purchase price of shares
10,000 million yen (maximum)(4) Purchase period
May 2, 2022 – March 31, 2023
(5) Purchase method
Market purchase on the Tokyo Stock Exchange56

3. Details of the matters concerning retirement(1) Type of shares to be retired
Common stock of the Company(2) Total number of shares to be retired
6,000,000 shares(Ratio to the total number of shares issued before retirement: 6.8%)(3) Expected date of retirement

May 20, 2022

57

Independent Auditor’s Report
To the Board of Directors of Mitsubishi Logistics Corporation :OpinionWe have audited the consolidated financial statements, which comprise the consolidated balance sheet, theconsolidated statement of income, the consolidated statement of changes in net assets and the related notesof Mitsubishi Logistics Corporation (“the Company”) and its consolidated subsidiaries (collectively
referred to as “the Group”), as at March 31, 2022 and for the year from April 1, 2021 to March 31, 2022 inaccordance with Article 444-4 of the Companies Act.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects,
the consolidated financial position and the results of operations of the Group for the period, for which theconsolidated financial statements were prepared, in accordance with accounting principles generally
accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Auditof the Consolidated Financial Statements section of our report. We are independent of the Group inaccordance with the ethical requirements that are relevant to our audit of the consolidated financial
statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with theserequirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Other Information
The other information comprises the business report and its supplementary schedules. Management is
responsible for the preparation and presentation of the other information. Corporate auditors and the boardof corporate auditors are responsible for overseeing the directors’ performance of their duties with regard
to the design, implementation and maintenance of the reporting process for the other information.
Our opinion on the consolidated financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent with theconsolidated financial statements or our knowledge obtained in the audit, or otherwise appears to bematerially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and Corporate Auditors and the Board of Corporate Auditors for
the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statementsin accordance with accounting principles generally accepted in Japan, and for such internal control as
management determines is necessary to enable the preparation of consolidated financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern inaccordance with accounting principles generally accepted in Japan and using the going concern basis ofaccounting unless management either intends to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Corporate auditors and the board of corporate auditors are responsible for overseeing the directors’
performance of their duties with regard to the design, implementation and maintenance of the Group’s
financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s reportthat includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that anaudit conducted in accordance with auditing standards generally accepted in Japan will always detect a58

material misstatement when it exists. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements.
As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override ofinternal control.

Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, while the objective of the audit is not to express an opinion
on the effectiveness of the Group’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting andbased on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Group’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’sreport to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Group to cease
to continue as a going concern.



Evaluate whether the presentation and disclosures in the consolidated financial statements are inaccordance with accounting standards generally accepted in Japan, the overall presentation, structure
and content of the consolidated financial statements, including the disclosures, and whether the
consolidated financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remainsolely responsible for our audit opinion.

We communicate with corporate auditors and the board of corporate auditors regarding, among othermatters, the planned scope and timing of the audit, significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide corporate auditors and the board of corporate auditors with a statement that we havecomplied with relevant ethical requirements regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and whereapplicable, related safeguards.
Interest required to be disclosed by the Certified Public Accountants Act of Japan
We do not have any interest in the Group which is required to be disclosed pursuant to the provisions of theCertified Public Accountants Act of Japan.

59

Yoshiaki Uesaka
Designated Engagement Partner
Certified Public Accountant
Taro Nakamura
Designated Engagement Partner
Certified Public Accountant
Masaya Ariyoshi
Designated Engagement Partner
Certified Public Accountant
KPMG AZSA LLC
Tokyo Office, JapanMay 16, 2022

60

Independent Auditor’s Report
To the Board of Directors of Mitsubishi Logistics Corporation :OpinionWe have audited the financial statements, which comprise the balance sheet, the statement of income, thestatement of changes in net assets and the related notes, and the accompanying supplementary schedules(“the financial statements and the accompanying supplementary schedules”) of Mitsubishi Logistics
Corporation (“the Company”) as at March 31, 2022 and for the year from April 1, 2021 to March 31, 2022
in accordance with Article 436-2-1 of the Companies Act.
In our opinion, the financial statements and the accompanying supplementary schedules referred to above
present fairly, in all material respects, the financial position and the results of operations of the Company
for the period, for which the financial statements and the accompanying supplementary schedules wereprepared, in accordance with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Auditof the Financial Statements and the Accompanying Supplementary Schedules section of our report. We are
independent of the Company in accordance with the ethical requirements that are relevant to our audit of
the financial statements in Japan, and we have fulfilled our other ethical responsibilities in accordance withthese requirements. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.
Other Information
The other information comprises the business report and its supplementary schedules. Management is
responsible for the preparation and presentation of the other information. Corporate auditors and the boardof corporate auditors are responsible for overseeing the directors’ performance of their duties with regard
to the design, implementation and maintenance of the reporting process for the other information.
Our opinion on the financial statements and the accompanying supplementary schedules does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements and the accompanying supplementary schedules,
our responsibility is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the financial statements and the accompanying supplementary schedules or
our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and Corporate Auditors and the Board of Corporate Auditors for
the Financial Statements and the Accompanying Supplementary Schedules
Management is responsible for the preparation and fair presentation of the financial statements and theaccompanying supplementary schedules in accordance with accounting principles generally accepted inJapan, and for such internal control as management determines is necessary to enable the preparation offinancial statements and the accompanying supplementary schedules that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements and the accompanying supplementary schedules, management is
responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern in accordance with accounting principles generally accepted in Japan andusing the going concern basis of accounting unless management either intends to liquidate the Company or
to cease operations, or has no realistic alternative but to do so.
Corporate auditors and the board of corporate auditors are responsible for overseeing the directors’
performance of their duties with regard to the design, implementation and maintenance of the Company’s
financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements and the Accompanying
Supplementary Schedules
Our objectives are to obtain reasonable assurance about whether the financial statements and theaccompanying supplementary schedules as a whole are free from material misstatement, whether due tofraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high61

level of assurance, but is not a guarantee that an audit conducted in accordance with auditing standards
generally accepted in Japan will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements and the accompanying supplementary schedules.
As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements and theaccompanying supplementary schedules, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, while the objective of the audit is not to
express an opinion on the effectiveness of the Company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting
and based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial statements and the accompanying
supplementary schedules or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company to cease to continue as a going
concern.



Evaluate whether the presentation and disclosures in the financial statements and theaccompanying supplementary schedules are in accordance with accounting standards generally
accepted in Japan, the overall presentation, structure and content of the financial statements andthe accompanying supplementary schedules, including the disclosures, and whether thefinancial statements and the accompanying supplementary schedules represent the underlying
transactions and events in a manner that achieves fair presentation.

We communicate with corporate auditors and the board of corporate auditors regarding, among othermatters, the planned scope and timing of the audit, significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide corporate auditors and the board of corporate auditors with a statement that we havecomplied with relevant ethical requirements regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and whereapplicable, related safeguards.

Interest required to be disclosed by the Certified Public Accountants Act of Japan
We do not have any interest in the Company which is required to be disclosed pursuant to the provisions of
the Certified Public Accountants Act of Japan.

62

Yoshiaki Uesaka
Designated Engagement Partner
Certified Public Accountant
Taro Nakamura
Designated Engagement Partner
Certified Public Accountant
Masaya Ariyoshi
Designated Engagement Partner
Certified Public Accountant
KPMG AZSA LLC
Tokyo Office, JapanMay 16, 2022

63

Board of Corporate Auditors’ Audit Report (duplicated copy)

Audit Report(English Translation)
Regarding the performance of duties by the Directors for the 219th fiscal year from April 1, 2021 to March
31, 2022, the Board of Corporate Auditors hereby submits its audit report, which has been prepared upon carefulconsideration based on the audit report prepared by each Corporate Auditor.
1. Summary of Auditing Methods by the Corporate Auditors and Board of Corporate Auditors(1) The Board of Corporate Auditors established auditing policies, audit plans and other relevant matters,
and received reports from each Corporate Auditor regarding his or her audits and results thereof, as
well as received reports from the Directors, other relevant personnel and the Accounting Auditor
regarding performance of their duties, and sought explanations as necessary.
(2) Each Corporate Auditor complied with the auditing standards of the Corporate Auditors establishedby the Board of Corporate Auditors, followed the auditing policies, audit plans and other relevant
matters, communicated with Directors, the Internal Audit Department, other employees, and any otherrelevant personnel over telephone lines, the Internet, or other means, and made efforts to prepare theenvironment for information collection and audit, as well as conducted the audit through the methods
described below.
1. We participated in meetings of the Board of Directors, the Executive Committee, and otherimportant meetings, received reports from the Directors, employees and other relevant personnel
regarding performance of their duties, sought explanations as necessary, examined important
authorized documents and associated information, and studied the operations and financial
positions at the headquarters and principal business offices. With respect to subsidiaries, wecommunicated and exchanged information with Directors and Corporate Auditors of subsidiaries
as well as received reports from subsidiaries by visiting them as necessary.
2. In addition, with respect to the system for ensuring that the performance of duties by the Directors
as stated in the Business Report conforms to the related laws and regulations and the Articles ofIncorporation, and the contents of the resolutions of the Board of Directors regarding preparationof other system to ensure the properness of operations of a group of enterprises consisting of astock company and its subsidiaries as stipulated in Article 100, Paragraphs 1 and 3, of theOrdinance for Enforcement of the Companies Act and such other system prepared based on such
resolutions (internal controls system), we received regular reports from Directors, employees andother relevant personnel regarding the development and the operation of the system, requested
explanations as needed. With respect to internal control over Financial Reporting, we received
reports from Directors and other relevant personnel as well as KPMG AZSA LLC regarding thestatus of evaluation and audit of the internal control, and requested explanations as needed.
3. We examined the details of the basic policies pursuant to Article 118, Item 3 a. of the Ordinancefor Enforcement of the Companies Act set forth in the Business Report.
4. Furthermore, we monitored and verified whether the Accounting Auditor maintained its
independence and implemented appropriate audits, as well as received reports from the
Accounting Auditor regarding the performance of its duties and sought explanations as necessary.
In addition, we received notice from the Accounting Auditor that “the system for ensuring that
duties are performed properly” (matters set forth in each item of Article 131 of the Ordinance for
Corporate Accounting) had been prepared in accordance with the Product Quality Management
Standards Regarding Audits (issued by the Business Accounting Deliberation Council on October28, 2005) and other relevant standards, and sought explanations as necessary.
Based on the above methods, we examined the Business Report and the supplementary schedules
thereof, the non-consolidated financial statements (non-consolidated balance sheet, non-consolidated
statement of income, non-consolidated statement of changes in net assets, and non-consolidated notes)
and the supplementary schedules thereof, as well as the consolidated financial statements (consolidatedbalance sheet, consolidated statement of income, consolidated statement of changes in net assets andconsolidated notes) related to the relevant fiscal year.

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2. Results of Audit(1)

Results of Audit of Business Report and Other Relevant Documents

1. In our opinion, the Business Report and the supplementary schedules are in accordance with therelated laws and regulations, and the Articles of Incorporation, and fairly represent the Company’s
condition.
2. We have found no evidence of wrongful action or material violation of related laws and regulations,nor of any violation with respect to the Articles of Incorporation, related to performance of duties by
the Directors.
3. In our opinion, the contents of the resolutions of the Board of Directors related to the internal control
systems are fair and reasonable. In addition, we have found no matters on which to remark regarding
the description in the Business Report and the performance of duties by the Directors related to suchinternal control systems, as well as internal control over Financial Reporting.
4. We have found no matters to point out with respect to the basic policies regarding the Company’scontrol as described in the Business Report.
(2)

Results of Audit of Non-consolidated Financial Statements and Supplementary Schedules
In our opinion, the methods and results employed and rendered by Accounting Auditor KPMG AZSA
LLC are fair and reasonable.

(3)

Results of Audit of Consolidated Financial Statements
In our opinion, the methods and results employed and rendered by Accounting Auditor KPMG AZSA
LLC are fair and reasonable.

May 18, 2022
Board of Corporate Auditors, Mitsubishi Logistics Corporation
Corporate Auditor(Full-time Corporate Auditor)
Corporate Auditor(Full-time Outside Corporate
Auditor)Corporate Auditor(Outside Corporate Auditor)
Corporate Auditor(Outside Corporate Auditor)
Corporate Auditor

65

Tohru Watanabe
Mikine Hasegawa
Yohnosuke Yamada
Takao Sato
Junya Miura