Materiality and KPIs
Large category

Subcategory

Major initiatives

K P Is・ Reduction of Scope 1+2 emissions (vs. FY2013)* FY2024 target：15% reduction① Promotion of services aimed at solvingsocial and environmental issues such as
decarbonization

Enhancement ofcomprehensive logistics
solutions・ Reduction of GHG emissions of the Company and customers(senders)・ Reduced by 4.1% year on year due to reduction of light vehicles (gasoline vehicles), switching
to hybrid vehicles and expansion of renewable energy implementation rate・ Percentage of renewable energy in power usage* FY2030 target：40%

・ 27.8% renewable energy percentage (+13.2 points year on year)

・ Percentage of environmentally friendly vehicles(Total of EV, HV, CNG and clean diesel)* FY2030 target：98%

・ 64.1% environmentally friendly vehicles (+4.9 points year on year)

・ Promotion of initiatives aimed at the creation and expansion of new services
and businesses

・ Commencement of environmentally friendly Hikyaku JR Container Transportation Service② Expansion of TMS/3PL networks andenhancement of ancillary solutions

・ Expansion of TMS projects・ TMS operating revenues* FY2023 target：128 billion yen

・ TMS operating revenues：119.7 billion yen (116.9% year on year)③ Strengthening of international and overseas
services・ Expansion of share of existing customers

・ Expolanka operating revenues* FY2023 target：137 billion yen

・ Increased TMS usage rate by existing customers

・ New lanes, expansion of industries

・ Expansion of sales in new areas④ Improvement of profitability throughenhancement of service and improvement ofefficiency in express package delivery service⑤ Strengthening of domestic and overseas
transportation network including alliances

Enhancement ofGovernance・ Scope 1+2 emissions reduced by 13.4% vs. FY2013

・ Consideration of new services and businesses aimed at theresolution of social and environmental

・ Development of new services, strengthening of services
peripheral to express package delivery services

Expansion ofmanagement resources
leading to competitive
advantages

Progress in FY2022⑥ Investment in human capital andimprovement of employee engagement

・ Number of packages handled* FY2023 target：1.4 billion

・ Expolanka operating revenues：207.3 billion yen (54.9% year on year)

・ The volume of marine and air cargo handled decreased significantly from previous year due toexcess inventory levels continuing in the United States, etc.
Initiatives are midway in the above market environment

・ Number of packages handled：1.41 billion (99.1% year on year)

・ Despite a recovery in economic activity, cargo movement slowed from Q3
・ Average unit price：643 yen (-3 yen year on year)

・ Average unit price* FY2023 target：648 yen

・ Improvement of efficiency of express package delivery services

・ Operating margin of Delivery Business* FY2023 target：7.8%(Operating margin is expected to decrease from the previous year due toupfront costs aimed at strengthening internal and external resources.

・ Operating margin of Delivery Business：9.5% (+0.6 points year on year)

・ Expansion of SAGAWA Partner Program・ Dissemination and rollout through publication of SAGAWA Partner Program website,
distribution of service guides, display of posters, etc.

【Japan】
Strengthening of relationships with partner companies andexpansion of support system

・ Holding meetings to promote appropriate transactions【Overseas】
Expansion of alliance partners associated with sales strategy

・ Expansion of alliance partners

・ Development of management personnel and personnel able topropose solutions

・ Implementation of training, etc. aimed at the development of management
personnel and solution personnel

・ Realization of diverse work styles, flexible promotion of personnel

・ Promotion of work style reform measures

・ Affirmative response rate for questions regarding “employee engagement”

・ Planning and promotion of initiatives through monitoring results

・ Affirmative response rate for questions regarding “creating an environmentthat makes good use of employees”⑦ Creation of competitive advantages throughinvestment in DX

・ Promotion of measures through three aspects (strengthening ofservices, improvement of efficiency of operations, evolution ofdigital infrastructure)

・ Promotion of services and measures through DX strategy⑧ Creation of new value through open
innovation

・ Hosting accelerator program and strengthening of systems aimed
at the creation of new businesses

・ Promotion of activities aimed at the creation of new businesses and services⑩ Ongoing advancement of compliance・ Exceeded previous year due to active proposal-based sales

・ Initiatives to receive appropriate freight tariffs

・ Periodic monitoring of employee engagement indicators⑨ Creation of governance structure that meets
global standards

・ Expansion of home appliance recycling service aimed at a recycling-oriented society

・ Development of personnel handling DX planning・ Strengthening of international legal functions, strengthening ofgovernance of overseas subsidiaries

・ Establishment of systems and promotion of education aimed atstrengthening of preventative legal work and compliance

・ Promotion of DX planning personnel development activities

・ Strengthening of governance meeting global standards, promotion ofinitiatives aimed at advancement of compliance・ Implemented ongoing initiatives to receive appropriate freight tariffs However, decreasedslightly due to decrease in large packages from previous year

・ Implemented appropriate cost controls through improvement of efficiency such as
streamlining of personnel and digitalization

・ Expansion of network with local alliance partners contributing to the acquisition of Chinese
cross-border e-commerce business・ Implementation of management development program, Women’s Career Support Training,next-generation leader training, etc.
・ Introduction of promotion system aimed at early development of young employees

・ Promotion of internal committees, seminars, etc. aimed at fostering a culture of understanding
and voluntarily working on D&I・ “Employee engagement”：57% (±0 points year on year)

・ “Creating an environment that makes good use of employees”：54% (+1 point year on year)
・ Implemented fully digital express delivery invoices

・ Chosen as a DX Stock for second consecutive year due to recognition of DX promotion strategy
in the medium-term management strategy
・ Expanded open innovation activities to ten domestic Group companies

・ Selected four partner companies for proceeding with consideration of commercialization inaccelerator program・ Strengthened internal control systems of overseas Group companies
・ Promoted security education, harassment education, etc.

As of 2023.6.8