Global Top 10 Solution Partner
2022―2027

Management Plan 2027

©2022 Kintetsu World Express, Inc.

INDEX

03

Review of the Previous Medium-TermManagement Plan

08

Management Plan 2027
09

Numerical Targets

10Growth Strategy

13

Strengthen Our Business Platform

19

Sustainability

Review of the Previous Medium-Term Management Plan

Phase III

Sustainable growth 2028―

Phase II

Development and growth 2022-2027

Previous Medium-Term Management Plan
(FY2019- FY2021)

Finished up the middle governancePhase I

Added a finishing touch on the middle
governance system established under theprevious Medium-Term Management Plan

Establishment of structure 2019-2021
Established middle governance
Enhanced our self-contained functions bydelegating authority to each regional
headquarters to promote speedy anddynamic business expansion on a global
level

2027

Achieve the long-term vision
Aim to achieve the long-term visionin the final year

2021
Enhance functions of corporate departments(Establish a platform)
Establish a Group platform to support growth2019
Established corporate departments
Also established corporate divisions that crossorganizationally control the Group and maintainnecessary checks and balances©2022 Kintetsu World Express, Inc.

3Review of the Previous Medium-Term Management Plan
Key Customers
DevelopmentSalesStrategies

Industry
Verticals

Launched full-scale sales activities at RSM established in every Regional
Headquarters in Japan and overseasSucceeded in acquisition of a major U.S. retail customer through joint sales
with APLL and sales expansion at RSM divisions
Acquired a Canadian logistics company specializing in perishables
Obtained GDP certification at major European sites and increased air freight
volume in healthcare by enhancing temperature controlled facilities



Further Volume Growthin Asia

Cost ReductionsOperations
Strategies
Improve operational
efficiency©2022 Kintetsu World Express, Inc.



Indonesia: Volume increased mainly in automotive-related products
Vietnam: Volume significantly increased mainly in automotive-related products,
electronic products, and retail.
Network expansion: Bangladesh, Sri Lanka
Sri Lankan subsidiary started operation in October 2019

Amid the space shortage in the COVID-19 crisis, used the space on chartered
flights mainly in Asia-North America lanes with high transport demandLaunched a charter program in light of introduction of gateway service
Improved consolidation efficiency
Promoted shared service
4

Review of the Previous Medium-Term Management PlanAutomotive

APLLRetailConsumer andIndustrial©2022 Kintetsu World Express, Inc.

Signed an eight-year long-term contract with a major railway company for North/Southrail transportation in the North America(Subject to the use of 53-feet containers owned by APLL)
Ensured competitive advantage and maintained long-term business with major U.S.
auto manufacturers
Increased freight wagons for finished vehicle transportation in India from 15 to 20 rakes
Formed a partnership with a European distributor and newly received an ordermanagement service for service parts from a major European auto manufacturer
Operated a core function system LSS+ and completed the development of adata lake platform to create visibility reports across multiple products in order tostrengthen the visibility service with high customer needs
Started introducing systems and material handling equipment to improve
operational efficiency and quality in connection with the establishment of major
CFS terminal sites with an aim to strengthen order management services

Began updating and expanding the introduction of warehouse labor
management system to improve operational efficiency and reduce workforce inresponse to soaring labor costs of warehouse personnel in the U.S.
Received an order for distribution service in the U.S. from a Japanesehousehold medical device manufacturer

5

Review of the Previous Medium-Term Management Plan

Group Governance

Developing Global
Human Resources
Strengthen OurBusinessPlatform

Implemented the Executive Development Program for global human resources
selected in the Succession Planning

Expanded functions of the core systems (UFS＋): Installed Delivery Instructions
Verified the enhanced functions of the core systems (UFS＋): Verified the use ofAI-OCR and technology transfer between the core systems, to simplify andimprove efficiency of the system operation
Developed IT infrastructure to consolidate systems globally and implemented
various measures to strengthen IT security

Next Generation ITSystems

Financial Stability©2022 Kintetsu World Express, Inc.

Set up a post of “General Counsel” of the KWE Group
Identified material topics and implemented specific measures for each topic aspart of our sustainability initiatives
Renewed the Corporate Global website

Reduced interest-bearing debt: From ¥80.6 billion (in Q4 of FY2018) to ¥27.7billion
Improved equity ratio: From 31.3% (in Q4 of FY2018) to 36.9%

6Long-Term Vision and Previous Medium-Term Management Plan
Previous Medium-Term Management Plan

Long-Term Vision(FY2019 - FY2021)
Net sales: Billions of yen

Air Freight
10,0001,000

Sea Freight
Net Sales

・ Net sales:720 billion yen→ 980.4 billion yen(KWE 500 billion yen → 787.8 billion yen)980.4 billion yen(APLL 220 billion yen → 192.5 billion yen)・Operating gross profit ratio over 16.4%→ 14.3%
・ Air freight volume: 800,000 tons→740,000 tons
・ Sea freight volume: 900,000 TEUs →710,000 TEUs

609.1 billion yen

592.0 billion yen

544.5 billion yen

4,000
400

600,000
tons

700,000
TEU

2,000200

1 trillion yen

150

Target:720.0 billion

8,000
800

6,000
600

Freight volume: 10,000 tons
10,000 TEUs

550,000
tons

640,000
TEU

550,000
tons

125

Target:Target:900,000 TEUs
800,000 tons

640,000
TEU

740,000 710,000
tons
TEU

780,000 760,000
TEUs
tons

100

OverOver1 million 1 million
tons
TEUs

50

250

Operatingincome750
FY2018(Results)

FY2019(Results)

FY2020(Results)

FY2021(Results)¥20.7 billion¥19.7 billion¥34.1 billion¥62.4 billion©2022 Kintetsu World Express, Inc.

¥50.0 billion
7

Management Plan 2027
Contribute to the development of a global community through logistics services by creating new values, sustaining theenvironment and collaborating with our clients, shareholders and employees

KWE Group Corporate Guidelines

Input
Financial soundness
 Global network and diverse
service options
 Next generation IT systems
 Developing global humanresources Group governance

Activity

Management Plan 2027

Global Top 10 Solution Partner
Growth strategy Increase global volume•

Increase volume from/to Asia•

Sales activities/marketing Premium order management

Strengths
Customer-first Human resources On-site capabilities, detailedserviceRealize customer valueProvide supply chain solutions

Enhance global procurement capabilities

Develop unique products(APLL segment)

Strengthen Our Business Platform
Group Governance•

Legal/risk/compliance/corporate brandvalue improvement•

Enhance sustainable corporate value
through active investment in humancapital /Build and utilize HR management
platformHR

Emissions Energy
 Social Impacts in the Supply ChainIT•

Ensure business continuity/Contribute tosustainable growth

Finance/Accounting•

Net sales
1 trillion yen
Operating income 50.0 billion
Freight volume:Air
1,000,000 tons
Sea 1,000,000 TEUs
Establish a KWE Group brand Realize customer value
 Increase sustainable shareholdervalue
 Be a company where all groupmembers take pride in their work
 Promote sustainability
Establish an optimal accounting system /Develop financial strategy and raise
funds/Develop tax strategy

Material topics related to basis forbusiness continuity

Material topics leading to value creation©2022 Kintetsu World Express, Inc.

Increase global volume•

provider (APLL segment)Output & Outcome

Anti-Corruption
Diversity and Equal Opportunity Data Security8Management Plan 2027
Targets
Net sales

Operating income

1 trillion yen
50.0 billion

Air freightOver 1 million tons

Sea FreightOver 1 million TEUs

Global Top 10 Solution Partner
A Global Brand Born in Japan©2022 Kintetsu World Express, Inc.

KWE’s brand recognition will continue to grow by our corestrengths: superior quality, a collective and competitive spirit,and a solutions-driven attitude.

KWE’s market expansion will be paved by establishing ouridentity as a preferred partner across all regions.

Through the merit of our work, KWE will become a company
that brings pride to its diversified and talented workforce.

9Management Plan 2027
Growth StrategyTargetEnhance cooperation between Corporate Sales & Marketing (CSM) Department and Regional Sales & Marketing (RSM) divisions toincrease global volume
Air freight: 1 million tons Sea freight: 1 million TEUs

StrategyTactics
Volume increase in AsiaEurope/U.S. lane

Increaseglobal volume
Sales activities/Marketing©2022 Kintetsu World Express, Inc.

EO/SE ↔ AM/EMEA

Increase volume of air and sea freight

Introduce KPI for target volume(Sales activities)
Maintain/expand CA/CAC/RA and build long-term business relationships
Project basis: Fix an industry group and its trade lane to seek newcustomers(Marketing)Industry verticalCore Vertical Automotive/Healthcare/Retail/Electronics
Next Vertical Materials/Foodstuffs/AerospaceTrade lane
Marketing to increase market share in trade lanes from/to Asia10Management Plan 2027
Growth StrategyTacticsStrategy

Increaseglobal volume

Strengthen global
procurement function

Strengthen FSG* functions*FSG: Forwarding Strategies GroupAir
 Secure and increase space on international charter flights and withBSA
 Strengthen ties with preferred carriersSea

©2022 Kintetsu World Express, Inc.

Secure and expand available capacity on long-haul and intra-AsiaroutesExpand global volume by enhancing governance of the entireGroup11

Management Plan 2027
Growth Strategy
Strategy

Tactics
Premium ordermanagement
provider（APLL segment）

Development ofa unique productBecome a partner of major U.S. customers with global brand power as a premium order management provider


Invest in CFS terminals in Asia and automate operations to enhance origin services and differentiate the Group fromcompetitorsStart from the booking service and then expand to IFS (sea freight) and TMS (truck transport) services



Utilize order management services we have cultivated in RETAIL in AUTO, INDUSTRIALS, and CONSUMER

Improve productivity of shared services (GSS) to increase margins and operational qualityImprove customer satisfaction by enhancing visibility reports using data lake

Develop unique services with a platform offering rail and truck transport in AUTO
Provide a platform to support supply chains of major U.S. automotive customers as well as new EV customers

Place an order of Taller Rake design ahead of our competitors in response to growing SUV demand in India and explore
new possibilities of rail transport of SUVs

Offer order management services for service parts in AUTO to expand business domains（APLL segment）©2022 Kintetsu World Express, Inc.

12

Management Plan 2027
Strengthen OurBusiness Platform
TargetEstablish a group platform to support growthTactics

StrategyLegal ― Strengthen Group legal functions
Compliance ― Ensure full complianceEnhance corporate brand value

HR（CHR）

Enhance sustainable corporate value through active investment in human capitalEstablish and utilize HR management platform

IT（CIT）



Ensure business continuity

Contribute to sustainable growthEstablish optimal accounting systemDevelop finance strategy and raise fundsDevelop tax strategy

Group governance（CPA）

Strengthen Our
Business Platform

Finance/Accounting（CFA）©2022 Kintetsu World Express, Inc.

Risk ― Consider insurance and risk financing

13

Group Governance

LegalRisk

Compliance

EnhanceStrengthen group legal
functions

Insurance/Risk finance

Ensure compliancecorporate brand value







Effectively use and systemize
legal resources within theGroup (establish a platform)
Introduce and use a contract
review/management system
Strengthen management of
external law firms

Construct risk finance andmanage risk exposure in an
integrated manner
Promote Global Insurance
Program by one carrier, deal
with accidents/claims, andmanage insurance policies in
an integrated manner

Provide group compliancetraining

Update the Group whistleblower system

Foster corporate brandImprove brand image

Establish the Ethics
Committee (tentative)*Group LRC Platform*LRC = Legal, Risk, and Compliance

Effectively use and systemize legal resources within the Group (establish a platform)

KWE©2022 Kintetsu World Express, Inc.

Group General Counsel

APLL

Corporate Legal Resources

Corporate Legal Resources

Regional Legal Resources

Regional Legal Resources

14

HREnhance sustainable corporate value throughactive investment in human capitalDevelop employees who can proactively adapt toEstablish and utilize HR management platformstrategic HR utilizing HR datavarious changes and play an active role from a global
perspective (= utilize the KWE Global HR Guidelines)Contribute to productivity improvement through

Spread the idea of diversity to employees and appoint

Further enhance education/trainings to improve

the next-generation leaders with emphasis on diversity

employee motivation and engagementfrom a broad range of human resources

Introduce flexible working styles that respect theMaintain/improve labor environment through theenhancement of occupational health and safety

individual lifestyles of employees
Provide work environment that leads to the productivity
improvement©2022 Kintetsu World Express, Inc.

15

IT

Ensure business continuity

Contribute to sustainable growth

To continue business stably by successfully responding to the advancementof IT and changes in environment surrounding the Group, we will fulfill our
responsibilities through daily operaion and various IT projects such asversion upgrades.

We will automate and streamline operations through digitization and active
use of information.
We will reduce burden of simple tasks and support a shift to more sophisticated,strategic, high value-added work based on a mass of information obtained
through digitization.

SecurityIntroduce standard security toolsRaise awareness to prevent security incidentIntroduce processes to detect early and deal withcyber attacks

Digitization

Automation
Regulatory
Compliance

Availability andReliability©2022 Kintetsu World Express, Inc.

Launch global IT governance teamComply with data privacy laws in each countryEnhance functions of the core systems

Promote cloud migration

Value FocusOperation

Promote digitization using EDI and AI-OCR function

Introduce Business Process Management (BPM) tool

Visualize processes and automate operations

Set up Data Operation Center (DOC)

Homogenize master profile information

Standardize operations and improve quality

16Enterprise Transformation
KWE will build a digital data foundation with high quality and volume fordata analytics and utilization and shift workload from routine work to"think“ by workstyle innovation and value focus operation.
Data Utilization

Data Capitalization
Accelerate digitization of information andautomation by digitizing KWE’s customer
and shipping information

Realize streamlining and automation ofoperation by improving data quality andusing it in BPM and UFS+

Automation

Enterprise Transformation
Support with technology a shift fromroutine work to work “requiring to think”

Value Focus Operation
 Data Operation
Center Pricing Mgmt.
 Predictive Analysis(Demand Forecast) BPM & UFS+
Integration

Digitization
 Data Integration
 Data Capturing(AI-OCR)“Think” assisted by technology

Routine work done by technology©2022 Kintetsu World Express, Inc.

Monitor and evaluate productivity

17

Finance/Accounting

Establish
optimal accounting systemEstablish an optimal accounting

Develop finance strategy andraise funds

Increase internal funding ⇨system for the GroupIncrease regional pooling＋cross-

Carry out appropriate accounting

border poolingtreatment and financial results
disclosures

Increase external funding ⇨Develop tax strategy

Enhance Global tax governancesystemConsider tax strategy tominimize tax cost and risks

Consider new funding methods
such as general syndicated loans
and borrowings from Kintetsu
GHD©2022 Kintetsu World Express, Inc.

18

Sustainability
KWE Group’s material topics
Item

Category

Anti-Corruption

Economy andGovernance

Data Security

SocialDiversity and Equal Opportunity

Environment

EnergyEnvironment

Continuously provide the Group common compliance training(e-learning)Continuously implement spoofed e-mail training, etc., andfurther strengthen IT platform

Take specific initiatives on human rights due diligence anddisclose information

Calculate accurate data of Scope 3 emissions

Establish a global SAF scheme together with cargo owners

Enhance TCFD disclosures (clearly disclose metrics andtargets)Use 100% renewable energy at our own facilities, wheretechnically feasible

Aim for B rating in CDP and Silver in Ecovadis

SocialPolicySocialEmissions

Social Impacts in the Supply
Chain

Applicable SDGs

Measures

Reduce CO₂ emissions

Contribute to the creation of a sustainable society through logistics
 Become a company selected by society Develop next-generation human resources who will realize
sustainability©2022 Kintetsu World Express, Inc.

19