business report for the 107th interim termbusiness report for the 107th interim term from april 1,...

Business Report for the 107th Interim TermFrom April 1, 2012 to September 30, 2012

Song Than Logistics Center (Opened in July 2011 in Vietnam)

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18,289

15,696 16,171

9,5187,641 8,043

16,280

8,019

2009/3103rdTerm( )

2010/3104thTerm( )

2011/3105thTerm( )

2012/3106thTerm( )

2013/3107thTerm( )

I would like to take this opportunity to thank

our shareholders for their continued support

and understanding.

I, hereby, present the Business Report for

the 107th Interim Term.

● Revenues (Unit: 100 millions of yen)

Transition of Consolidated Business Results

President and Chief Executive Officer

■ Forecast for FY

16,100

■ 1H

7,987

To Our Shareholders

C O N T E N T STo Our Shareholders P 1

Transition of Consolidated Business Results P 1

Topics in Japan P 5

Overseas Topics P 7

Consolidated Financial Statements P 9

General Overview of the Company P 11

Close-up P 12

Status of the Company’s Shares P 13

Frequently Asked Questions about procedures relating to shares P 14

Memos for Shareholders back cover

■ 1H ■ FY

1

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335375

316

188157 150

374

139

2009/3103rdTerm( )

2010/3104thTerm( )

2011/3105thTerm( )

2012/3106thTerm( )

2013/3107thTerm( )

● Operating Income (Unit: 100 millions of yen)

Revenues Segment Income

Distri-bution & Trans-porta-tion

Domestic Companies

Combined Business 3,460 15Security Transport 294 9Heavy Haulage & Construction 191 18Air Transportation 935 18Marine & Harbor Transportation 630 30

Overseas Companies

The Americas 260 9Europe 222 5East Asia 344 7South Asia & Oceania 226 10

Goods Sales 1,837 32Other 191 6

Elimination & Other Adjustments (607) (8)Total 7,987 157

● Status by Segment (Consolidated) (Unit: 100 millions of yen)■ Forecast for FY

330

■ 1H

157

Although the Japanese economy saw some gradual movement in the direction of recovery during the first half of the fiscal year ending March 31, 2013 mainly in public investment and capital investment against the backdrop of reconstruction demand after the Great East Japan Earthquake, there was a sense of stagnation in the economy due to the slowdown in overseas economies and prolonged appreciation of the yen. In the field of logistics, although domestic demand for freight transportation was up slightly in reaction to a significant decrease in the previous year, the level remained low, and demand for t ransportat ion associated with reconstruction stayed weak. The s i tuat ion was severe in terms of demand for international freight transportation, as exports in some sectors fell below the previous year’s level, reflecting the credit crisis in Europe and sluggish economic growth in emerging nations mainly in Asia.

Within this business environment, the Nippon Express Group worked toward the successful completion of its “Nippon Express Group Corporate Strategy 2012 – Towards New Growth,” now in its final year. The Group devoted its utmost efforts to putting into action the four basic strategies of “Growth as a Global Logistics Company,” “Promotion of Strategic Environmental Management,” “Enhancement of Management Infrastructure” and “Promotion of Corporate Social Responsibility (CSR) Management.” Specifically, the Group established a regional headquarters company in the Asian region where construction of cross-border supply chains is progressing, and enhanced governance in order to promote operations and growth strategies for the region as a whole. Meanwhile, in emerging nations with expanding markets, the Group opened new business bases and conducted business partnerships with local companies in order to respond swiftly to the diversifying needs of global business. Furthermore, in

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420377 406

228

115

203

474

190

2009/3103rdTerm( )

2010/3104thTerm( )

2011/3105thTerm( )

2012/3106thTerm( )

2013/3107thTerm( )

151125

85108

42 42

99

269

2009/3103rdTerm( )

2010/3104thTerm( )

2011/3105thTerm( )

2012/3106thTerm( )

2013/3107thTerm( )

● Ordinary Income (Unit: 100 millions of yen) ● Net Income (Unit: 100 millions of yen)

■ Forecast for FY

400

■ 1H

206■ Forecast for FY

200

■ 1H

113

order to realize sustainable growth, the Group has expanded environmentally-friendly facilities and enacted energy-saving measures at business bases as part of its green initiatives, while actively engaging in environmental protection and other social contribution activities.

As a result of the above, our consolidated business results for the first six months of the 107th term were as follows: Consolidated revenues of ¥798.7 billion (down 0.4% year-on-year) Consolidated operating income of ¥15.7 billion (up 13.0% year-on-year) Consolidated ordinary income of ¥20.6 billion (up 8.0% year-on-year) Consolidated net income of ¥11.3 billion (up 13.3% year-on-year)

Concerning the interim dividend payments for the 107th term, it was decided at the Board of Directors meeting held on October 31 to pay an interim dividend of ¥5 per common share with the starting day for payment being December 4, 2012.

In terms of the direction of the economy for the rest of the fiscal year, the overall outlook overseas is for continuing uncertainty and challenging conditions due to the prolonged financial and fiscal anxiety in Europe in addition to the decline in economic growth in Asia. Domestically, while the economy is expected to recover at a moderate pace backed by demand related to reconstruction, deteriorating relationship with China and mounting concerns about another economic downturn depending on developments in the economic situation overseas have led the Group to forecast a situation that continues to bear careful watching.

To Our Shareholders

■ 1H ■ FY

3

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14.5512.05

8.1910.38

4.08 4.09

25.85

9.57

2009/3103rdTerm( )

2010/3104thTerm( )

2011/3105thTerm( )

2012/3106thTerm( )

2013/3107thTerm( )

<1H>

11,720 12,018 11,475

4,843 4,958 4,798

12,309

4,942

2009/3103rdTerm( )

2010/3104thTerm( )

2011/3105thTerm( )

2012/3106thTerm( )

2013/3107thTerm( )

● Growth as a Global Logistics Company● Promotion of Strategic Environmental

Management● Enhancement of Management

Infrastructure● Promotion of CSR Management

NIPPON EXPRESS GROUP CORPORATE STRATEGY 2012

- Toward New Growth -

● A Global Logistics Company● A Company that Fulfills its

Responsibilities to the Earth● A People-Friendly Company

Vision

Key Strategies of the Management Plan

● Net Income per Share (Unit: Yen) ● Total Assets and Net Assets (Unit: 100 millions of yen)

■ Total assets ■ Net assets

■ Forecast for FY

19.19

■ 1H

10.85■ Net assets (1H)

4,958

■ Total assets (1H)

12,193

In the field of logistics, these economic trends have prompted apprehension about a slump in demand for freight transportat ion both international ly and domestically. In this context, the Group is facing many challenges, including redistribution of production sites and development of logistics overseas, energy-saving initiatives, and building a logistics system that can withstand disasters.

The Nippon Express Group will continue to be united in the effort to deal with this challenging business environment, and will strive to further increase corporate value in order to meet the expectations of our shareholders. We would be grateful for your continued support as shareholders in this regard.

December 2012

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Nippon Express has been engaged in a number of activities in Japan in the past six months.Here are some examples of our activities:

Corporate Information

Services Information(April 1, 2012 through September 30, 2012)

Topics in Japan

Received certification as AEO “Authorized Customs Broker”

Nippon Express was certified by Tokyo Customs as an “Authorized Customs Broker” under the AEO system (*2). Acquiring certification as an authorized broker has made it possible for the Group to utilize the system at more than 170 bases nationwide that handle import and export operations. The Group will provide swift and highly convenient services with regard to import/export procedures.

Nippon Express holds the 2012 Nippon Express Group All-Japan Driver and Forklift Operator Contest

On May 19 and 20, 2012, Nippon Express held the “2012 Nippon Express Group All-Japan Driver and Forklift Operator Contest” at its Izu Study & Training Center. Through this contest, the Group seeks to improve driving skills, including driving methods to reduce fuel costs, and maintenance inspection techniques, while preventing traf f ic accidents and wo r kp lace injuries and further p r o m o t i n g t h e reduct ion of the e n v i r o n m e n t a l load.

Domestic network(as of September 30, 2012)

Management branches64 branches including Sapporo, Sendai, Gunma, Tokyo (Chuo-ku, Tokyo ) , Yokohama, Nagoya , Osaka, Shikoku (Takamatsu-shi), Hiroshima, Fukuoka, Tokyo Air Service (Minato-ku, Tokyo), Tokyo International Transport (Minato-ku, Tokyo), and Kanto Security Transport (Koto-ku, Tokyo).

* In addition, a total of 172 branches, as well as 141 sales branches, subbranches, and offices are set in place across Japan.

April May June

Opening of Tennoji Branch Logistics Center, a new warehouse equipped with energy-saving features

Nippon Express opened the Tennoji Branch Logistics Center in Yao City, Osaka Prefecture, on April 11. Equipped with solar power generators utilizing the walls and LED light fixtures, as well as heat blocking pavement, the facility is an environmentally friendly, large-scale logistics center recognized by the Ministry of Land, Infrastructure, Transport and Tourism for its “Comprehensive Efficiency Plan” under the Comprehensive and Efficient Logistics Act (*1).

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Display at Logis-Tech Tokyo 2012

Nippon Express participated in the Logis-Tech Tokyo 2012 exhibition held at Tokyo Big Sight from September 11 to 14, organized by the Japan Institute of Logistics Systems and six other groups. This is the largest exhibition of its kind in Asia, featuring displays of the lates t logis t ics equipment, systems, and services. Taking “Global Nittsu” as a keyword for i t s booth, the Group presented global logistics s o l u t i o n s a nd o t h e r services related to Asia.

New technology developed for air freight transportation

In the field of air freight transportation, Nippon Express has developed anti-vibration pallets that cut vibration significantly compared to regular transportation, and a new system whereby temperature or impact can be confirmed during transportation in real time. Combining the two has made it possible to confirm numerically the impact prevention effect o n c a r g o d u r i n g transport. This system is used by customers in a wide range of f ie lds i n c l ud i ng p rec i s i on equ ipmen t , medica l d e v i c e s , a n d pharmaceuticals.

Won award for “Environmental Conservation Activities in Logistics” at the 13th Logistics Environment Awards

Nippon Express received an award for Environmental Conservation Activities in Logistics at the 13th Logistics Environment Awards, for its “Energy-saving project to implement a modal shift to rail transport of silicon carbide, which is manufactured by YAKUSHIMA DENKO, from Kagoshima to all over the country,” proposed jointly with the Japan Freight Railway Company and YAKUSHIMA DENKO CO., LTD. This project was recognized for reducing CO2 emissions approximately by 535 tons, a decrease of approximately 28% from previous levels. The award was presented at the 22nd Annual Meeting of the Japan Federation of Freight Industries.

Nippon Express is engaged in various activities to conserve natural resources and to realize a recycling society.

ECOTopics:

http://www.nipponexpress.com/about/index.html

July August September

Glossary of terms *1 Comprehensive and Efficient Logistics Act: This law establishes measures for recognition and related support, etc., for plans formulated by businesses seeking to reduce distribution costs or to lower environmental load, etc. *2 AEO system: Authorized Economic Operators system. A system whereby Customs offers a policy of relaxed and simplified procedures for operators who maintain a system to ensure security management and legal compliance

for international logistics.

June2012.

The CSR Report explaining the Nippon Express Group CSR activities, including its environmental initiatives, may be found under “HQ Information” on the Company’s website.

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http://www.nipponexpress.com/about/index.html

Nippon Express, in an effort to advance its global strategies, has been engaged in a number of activities overseas in the past six months. Here are some examples of our activities.

Corporate Information

Services Information(April 1, 2012 through September 30, 2012)

Overseas Topics

April, 2012June, 2012

Subbranches opened in two cities in Russia

Nippon Express (Russia) LLC opened subbranches in Togliatti, an automotive industry center where Russia’s largest automobile manufacturers are headquartered, and in Vladivostok, which has been enjoying vigorous economic activity in recent years, including the beginning of expansion by Japanese companies.

April, 2012 Construction of Mitra Karawang Logistics Center, a multifunctional warehouse, began in Indonesia

PT. Nippon Express Indonesia broke ground on construction of the Mitra K a r a w a n g L o g i s t i c s C e n t e r, a mul t i funct ional warehouse in Mi t ra Ka rawang I ndu s t r i a l E s t a t e , w i t h completion scheduled for November 2012. The warehouse will allow the Group to provide customers with high quality, just-in-time logistics services by further enhancing its logistics functions in Indonesia.

July, 2012Liaison office opened in Myanmar

Nippon Express opened a liaison office in Yangon, which is attracting attention as a new center for production in Asia, and is expected to serve as a logistics node linking the three economic zones of China, India, and ASEAN.

Illustration of completed plan

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On July 11, Nippon Express U.S.A., Inc. held a meeting of US general managers nationwide to mark the 50th anniversary of its establishment. At the meeting, participants renewed their commitment to even greater development at Nippon Express U.S.A., and unified their thoughts on business expansion i n t h e U S a n d strategies for growth.

April, 2012

July, 2012

Large, multifunctional warehouse Laem Chabang Logistics Center opened in Thailand

Meeting of US general managers held to mark 50th anniversary of the establishment of Nippon Express U.S.A.

Hi-Tech Nittsu (Thailand) Co., Ltd. opened Laem Chabang Logistics Center, a large, multifunctional warehouse equipped with the latest logistics features. Located close to both Laem Chabang Port and Bangkok International Airport, the warehouse is a logistics hub connecting ground, ocean and air transport modes that will be able to respond to the increasingly sophisticated and diverse needs of customers.

Global NetworkThe group has 407 business bases in 216 cities across 37 countries outside of Japan.(As of September 30, 2012)

August, 2012 Launch of “Jet Pack Priority” express service to Asia

Nippon Express launched “Jet Pack Priority,” an international air cargo express service for Asia. “Jet Pack Priority” offers high-speed, door-to-door service from Japan to four countries in Asia, namely China (Shanghai, Hong Kong), Taiwan, Korea, and Singapore. Cargo is col lected from al l areas of Japan, and central ly consolidated at Haneda Airport, where it is loaded aboard late-night flights, thus shortening lead time.

The AmericasUSA, Canada, Brazil, Mexico, Columbia

EuropeGermany, Austria, Hungary, Czech Republic, Poland, Russian Federation, United Kingdom, Ireland, Netherlands, Belgium, France, Italy, Switzerland, Spain, Portugal, UAE, Turkey, South Africa

East AsiaChina, Korea, Taiwan

South Asia & OceaniaSingapore, Bangladesh, Cambodia, Australia, New Zealand, Malaysia, Philippines, Thailand, Indonesia, India, Vietnam

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Item First Six Months of 107th Term(As of September 30, 2012)

(Liabilities)

Current liabilities 415,657

Notes payable-trade 10,118

Accounts payable-trade 114,726

Short-term loans payable 76,882

Income taxes payable 8,632

Provision for bonus 19,207

Other provisions 431

Other 185,657

Noncurrent liabilities 307,779

Bonds payable 80,000

Long-term loans payable 155,009

Provision for retirement benefits 39,470

Other provisions 535

Other 32,763

Total liabilities 723,437

Net assets

Shareholder's equity 483,848

Common stock 70,175

Additional paid-in capital 26,908

Retained earnings 398,399

Less: treasury stock (11,634)

Accumulated other comprehensive income (1,463)

Valuation difference on available-for-sale securities 21,745

Deferred losses on hedges (2)

Foreign currency translation adjustments (23,206)

Minority interests 13,496

Total net assets 495,881

Total liabilities and net assets 1,219,318

Item First Six Months of 107th Term(As of September 30, 2012)

Assets

Current assets 582,575

Cash and cash in banks 194,826

Notes receivable-trade 13,968

Accounts receivable-trade 219,232

Inventories 5,828

Other 149,495

Less: allowance for doubtful accounts (776)

Noncurrent assets 636,743

Property and equipment 490,735

Vehicles, net 18,824

Buildings, net 245,450

Land 170,408

Other, net 56,052

Intangible assets 27,053

Investments and other assets 118,954

Investment securities 77,331

Other 43,194

Less: allowance for doubtful accounts (1,571)

Total assets 1,219,318

Note: Amounts less than one million yen are disregarded.

Consolidated Financial Statements

● Quarterly Consolidated Balance Sheet (Unit: Millions of yen)

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Cash Flows from Operating ActivitiesCash flows from operating activities resulted in a net inflow of ¥32.6 billion. This was mainly due to the posting of income before income taxes and minority interests of ¥20.5 billion, depreciation and amortization of ¥22.1 billion, and the decrease in trade receivables of ¥24.0 billion.

Cash Flows from Investment ActivitiesCash flows from investment activities resulted in a net outflow of ¥21.0 billion. This was mainly due to pay-ment for purchase of property and equipment of ¥21.2 billion.

Cash Flows from Financing ActivitiesCash flows from financing activities resulted in a net outflow of ¥5.0 billion. This was mainly due to payment of long-term loans payable of ¥22.7 billion and cash dividends of ¥5.2 billion.

ItemFirst Six Months of 107th Term

April 1, 2012 to September 30, 2012

Revenues 798,742

Operating costs 746,744

Gross profit 51,997

Selling, general and administrative expenses 36,254

Operating income 15,743

Non-operating income 6,997

Interest income 306

Dividends income 2,016

Equity in earnings of affiliates 236

Other 4,438

Non-operating expenses 2,124

Interest expenses 1,654

Other 469

Ordinary income 20,616

Extraordinary income 3,269

Gain on sales of noncurrent assets 3,199

Other 69

Extraordinary loss 3,338

Loss on disposal of noncurrent assets 1,505

Loss on valuation of investment securities 709

Special additional retirement benefits 1,030

Other 93

Income before income taxes and minority interests 20,547

Income taxes 8,538

Income before minority interests 12,009

Minority interests 693

Net income 11,315

ItemFirst Six Months of 107th Term

April 1, 2012 to September 30, 2012

Cash flows from operating activities 32,650

Cash flows from investment activities (21,020)

Cash flows from financing activities (5,029)

Effect of exchange rate changes on cash and cash equivalents 514

Net increase in cash and cash equivalents 7,115

Cash and cash equivalents at beginning of period 181,614

Cash and cash equivalents at end of period 188,729

Please access our IR information for details on business results:

http://www.nipponexpress.com/hq/ir/index.html

Nippon Express IR Search



CONSOLIDATED FINANCIAL STATEMENTS

● Quarterly Consolidated Statements of Income (Unit: Millions of yen) ● Quarterly Consolidated Statements of Cash Flows (Unit: Millions of yen)

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* Zenjiro Watanabe, Masami Yamashita and Yuzuru Fujita are Outside Corporate Auditors.

Profile Directors, Officers and Corporate AuditorsCompany name:

Nippon Express Co., Ltd.

(NIPPON EXPRESS CO., LTD.)

Formal establishment: October 1, 1937

Paid-in capital: ¥70,175 million

Employees: 35,484

Headquarters: 1-9-3, Higashi Shimbashi, Minato-

ku, Tokyo 105-8322

Tel. +81-3-6251-1111

http://www.nipponexpress.com/

Consolidated subsidiaries and companies accounted by the equity-method:

Consolidated subsidiaries: 247

Companies accounted by the equity-method: 22

● Directors ● Officers

Chairman Masanori Kawai Managing Officer Yoshiaki Ishii

President and Chief Executive Officer

Kenji Watanabe Managing Officer Shuji Kojima

Executive Vice President and Executive Officer

Jiro Nakamura Managing Officer Masahito Watanabe

Executive Vice President and Executive Officer

Keiji Hagio Managing Officer Takumi Shimauchi

Director and Managing Officer

Masao Hosokoshi Managing Officer Takashi Wada


Akira Ohinata Officer Nobuki Ando


Noboru Shibusawa Officer Takaaki Ishii


Kiyofumi Miyachika Officer Hideaki Tabuchi


Takahiro Ideno Officer Yukinori Tsuji


Mitsuru Saitou Officer Hisao Taketsu

Director and Officer Hideo Hanaoka Officer Kenji Fujii

Director and Officer Yasuaki Nii Officer Yasuhiro Goto

Director and Officer Yutaka Ito Officer Hiroyuki Murakami

Director and Officer Masahiko Hata Officer Katsuhiro Terai

● Corporate Auditors Officer Yukio Yokoo

Full-time Corporate Auditor

Shinichi Miyazaki


Zenjiro Watanabe


Masami Yamashita

Corporate Auditor Yuzuru Fujita

CORPORATE DATAGeneral Overview of the Company (as of September 30, 2012)

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C l o s e - u p

On September 1, Nippon Express launched simultaneous nationwide sales of “One Room Pack PLUS,” a short-distance moving service targeting customers living on their own.

The new “One Room Pack PLUS” is a short-distance moving service that allows customers to transport approximately 1.5 times the amount of furniture available with the “One Room Pack.”

Both the “One Room Pack PLUS” and “One Room Pack” services offer the traditional fee system based on amount of furniture, as well as a new, first-in-the-industry fee system based on room area (square meters), which is easy to understand and saves time when placing an order.

With newly launched “One Room Pack PLUS” we bring our customers even greater convenience.

http://www.nittsu.co.jp/hikkoshi/(Japanese only)

Applications for online estimates and orders are available 24-hours a day, 365 days a year.

New advertisements for “One Room Pack PLUS” are now on air.

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STOCK INFORMATION

Distribution of Shares by Type of Shareholder

● Number of shareholders and percentage ● Number of shares and percentage

232,00821.8%

Individuals, others:

214,27420.2%

Overseas corporate:

517,576 48.7%Financial institutions:

Individuals, others: 79,441 97.7%

448 0.5%Overseas corporate:

150 0.2%Financial institutions:

52 0.1%Financial instruments and exchange dealers:

1,245 1.5%Other corporate:

1 0.0%Treasury stock:

19,891 1.9%

63,0785.9%

15,4701.5%

Treasury stock:

Other corporate:

Financial instruments and exchange dealers:

Total:

1,062,299(Unit: Thousands of shares)

Total:

81,337(Unit: Persons)

● Number of shares Total number of shares authorized 3,988,000,000 shares

Total number of shares issued 1,062,299,281 shares

● Number of shareholders 81,337 persons

Status of the Company’s Shares

Status of investment in the CompanyNumber of shares held

(Thousands of shares)Investment ratio

(%)

The Master Trust Bank of Japan, Ltd. (Account in Trust) 95,219 9.1

Asahi Mutual Life Insurance Company 65,464 6.3

Nipponkoa Insurance Co., Ltd. 50,294 4.8

Japan Trustee Services Bank, Ltd. (Account in Trust) 44,137 4.2Mizuho Trust & Banking Co., Ltd. as trustee for Retirement Benefit Trust of Mizuho Bank, Ltd. (re-entrusted by Trust & Custody Services Bank, Ltd.) 41,500 4.0

Mizuho Corporate Bank, Ltd. 41,477 4.0

Nippon Express Employees’ Shareholding Association 37,688 3.6

Japan Trustee Services Bank, Ltd. (Account in Trust No. 4) 21,401 2.1

The Bank of Tokyo-Mitsubishi UFJ, Ltd. 20,554 2.0

SSBT OD05 OMNIBUS ACCOUNT - TREATY CLIENTS 19,440 1.9

Major Shareholders

* Although Nippon Express holds 19,891 thousand shares of treasury stock, it is excluded from the major shareholders listed above.

Status of the Company’s Shares (as of September 30, 2012)

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System for Requesting the Company to Purchase/Sell Odd Shares

A shareholder holding 600 shares

Sold 600 shares to the Company at market value

Additional 400 shares purchased from the Company at market value

Converted into cash

A shareholder holding 600 shares can purchase an additional 400 shares, making a total holding of 1,000 shares.

A shareholder holding 600 shares cannot sell them in the market, but the Company would purchase them at market value.

Odd shares (1,000 shares)

System for Requesting the Company to Sell Odd Shares

System for Requesting the Company to Purchase Odd Shares

How do I transfer the shares in the special account to the account of a securities company, as shares cannot be traded using the special account?

Contact information for various procedures

I would like to dispose of my odd shares…

(Please address your inquiries to the contact and mailing address on the right.)

7-10-11, Higashisuna, Koto-ku, Tokyo 137-8081Mitsubishi UFJ Trust and Banking Corporation Corporate Agency DivisionTel. 0120-232-711 Tel. 0120-244-479 (for requesting forms)http://www.tr.mufg.jp/daikou/

(1) For shares registered in the accounts of securities companies: The securities company at which you have your account(2) For shares registered in the special account: Mitsubishi UFJ Trust and Banking Corporation

For various procedures re la t ing to shares , including change of address and the pur-chas ing/se l l ing o f odd shares, please contact the following institutions.

http://www.nittsu.co.jp/ir/procedure/index.html

(Japanese only)

An account must first be opened at a securities company, after which you are asked to contact Mitsubishi UFJ Trust and Banking Corporation, the Account Managing Ins t i tu t ion for the Company’s special account. Odd shares (less than 1,000 shares) may also be transferred. Please also note that no fees are incurred in such transfers.

* If you have already transferred your odd shares from the special account to an account at a securities company, please contact the securities company responsible for that account.

S ince Nippon Express has a sys tem for requesting the Company to purchase/sell odd shares, shown on the right, you are requested to contact the Mitsubishi UFJ Trust and Banking Corporation, the Account Managing Institution of the Company’s special account.

This is a request system designed to allow our shareholders to sell odd shares less than 1,000 to the Company at market value.

This is a request system designed to allow our shareholders who hold odd shares less than 1,000 to purchase additional shares in such a number of shares as to make a total holding of 1,000 shares at market value.

Frequently Asked Questions about procedures relating to shares

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Memos for Shareholders

Fiscal Year: From April 1 to March 31 of each year

Ordinary General Meeting of Shareholders: June of each year

Dates of Record:

March 31 for Ordinary General Meeting of ShareholdersMarch 31 for year-end dividendSeptember 30 for interim dividend

Share Trade Unit: 1,000 shares

Stock Exchanges: Tokyo, Osaka

Securities Code Number: 9062

Nippon Express is updating various information to introduce the corpo-

rate profile, including its latest news, IR and other service information.

Introduction of Nippon Express Website

http://www.nipponexpress.com/ NIPPON EXPRESS Search

Administrator of Shareholder Registry/AccountManaging Institution of Special Account:

Mitsubishi UFJ Trust and Banking Corporation

(Contact)7-10-11, Higashisuna, Koto-ku, Tokyo 137-8081Mitsubishi UFJ Trust and Banking Corporation Corporate Agency DivisionTel. 0120-232-711

Method of Announcement:

Electronic announcementIf the Company is unable to make electronic announcement due to an accident or any other compelling circumstance, it will make an alternative announcement on the Nihon Keizai Shimbun circulated in Tokyo.URL for electronic announcementhttp://www.nipponexpress.com/

Following the enforcement of the Act on Special Measures Concerning Securing the Fiscal Sources Necessary for the Implementation of Measures to Recover from Great East Japan Earthquakes (Act No.117, 2011), addi-tional tax as follows will be imposed on top of the income taxes applicable mainly to dividends on listed shares payable on and after January 1, 2013.

Special Income Tax for Reconstruction equivalent to 2.1% of income tax will be additionally imposed mainly on dividend income payable on list-ed shares, for the period from January 1, 2013 to December 31, 2037.

Schedule of taxes deducted at source as applicable mainly to dividends on listed shares payable on and after January 1, 2013 will be as follows:

Up to December 31, 2012

January 1, 2013 through Dec 31, 2013

January 1, 2014 through Dec 31, 2037

January 1, 2038 and thereafter

Income tax 7% 7% 15%* 15%Special Income Tax for Reconstruction − 0.147% 0.315% −

Inhabitant tax 3% 3% 5%* 5%Total 10% 10.147% 20.315% 20%

* These reflect the abolition of reduced tax rate on securities taxation system.

° These are the rates applicable to taxes deducted at source, provided however that domestic corporations are not subject to inhabitant tax.

° This notification is provided for the purpose of general information regarding the Special Income Tax for Reconstruction imposed mainly on dividends on listed shares. There may be exceptional cases that do not fall under the above. For specific situations, please consult your tax office or tax advisor on a case by case basis.

° This notification has been prepared based on the information available as of August 2012.

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Notification on Special Income Tax for Reconstruction

1-9-3, Higashi Shimbashi, Minato-ku, Tokyo 105-8322Tel. +81-3-6251-1111URL: http://www.nipponexpress.com/

010_0643702832412.indd 1 2012/11/27 14:41:33

business report for the 107th interim termbusiness report for the 107th interim term from april 1,...

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