Kintetsu World Express : CEO Message updated

November 8, 2016

　Consolidated financial result for the six months ended September 30, 2016 is as follows.

　Net sales increased 38.1% from the same period of 2015 to 227,362 million yen mainly due to consolidation of APLL and its' group companies. On the other hand, operating income was 4,287 million yen (35.0% down against last year). Ordinary income was 4,691 million yen (33.4% down). We registered 1,177 million yen as a net income attributable to owners of the parent (71.6% down against last year). Unsatisfactory result of KWE/Japan, separation costs of APLL (from former parent company), amortization of goodwill affected them.

　We have just launched our new medium-term management plan 'Going to the Next Phase!' (2016 to 2018). During the coming 3 years, I would like to prepare for our future leap initiating a firm structure. Both KWE and APLL are to focus on refining each of its core business. I believe this is the only way to further growth of our group.

　Volume growth is crucial to keep on competing in the global market. 700,000 tons of air freight and 700,000 TEU of sea freight (both annual) are our targets. We are going back to our source reinforcing freight forwarding business. With KWE's own growth as well as further collaboration with APLL, we are sure to achieve the volume targets.

　With its' competence in supply chain solutions, APLL will seek after more presence in Japan.

　Through this fiscal year of 2016, we prospect net sales 481,000 million yen (14.5% up year-over-year). As a result, we do not revise the original forecast of full-year operating income 12,500 million yen (18.6% down), ordinary income 13,000 million yen (27.4% down) and net income attributable to owners of the parent 7,000 million yen (28.4% down).

　All of your valuable and continuous support and guidance to our group should sincerely be appreciated.

Nobutoshi Torii
President & C.E.O.