I would like to wish everybody a Happy New Year.
I am sure that you built up your energy and had a fulfilling time during the New Year’s holiday period. I am delighted to be able to usher in the beginning of a new year with everybody at the Yusen Logistics Group in Japan and around the world.
Review of 2017
Reflecting over last year, improved employment conditions and recovery in private consumption meant that signs of global economic recovery were seen. In the international logistics market, there was sound movement of both ocean and air freight. Against this background, our group’s Long-term Vision, “TRANSFORM 2025,” was announced in spring last year. In this announcement, we indicated the stance that we were aiming for as well as how we would achieve that stance. We also defined our group’s management philosophy of Vision, Mission and Values and various initiatives were newly started in accordance with TRANSFORM 2025 from a medium- to long-term viewpoint in the aim of continuous growth. With the understanding and cooperation of the group overall, we have again handled more ocean and air freight than the previous year. In the logistics business, we are making a new start for the future in each field, including proactively deploying operations, opening new facilities, and adding high-added-value facilities. However, we did not handle as much freight as was anticipated and improving gross profit took time. As a result, profits decreased dramatically and this was a tough blow for us as a company.
Last year, we redefined our Vision, Mission and Values, which can contribute to customers and society based on our single identity held by more than 22,000 employees around the world. To achieve our vision of “connecting people, businesses and communities to a better future through logistics,” we are employing insight to improve service quality, and innovation to become the world's preferred supply chain logistics company and contribute to the sustainable development of business and society. In doing this, it is vital that we aim to become the world’s preferred company.
I am sure that you are all engaging in your daily work with the shared values of being Connected, Committed and Creative, which will lead to this action. With our globally shared Vision, Mission and Values, we have fostered a stronger sense of unity. The accumulation of our action models as demonstrated by our Values 9-box has created the Yusen Logistics culture and become a firm foundation to steadily approach our long-term vision and to offer our customers higher values.
Let us strongly emphasize this sense of values and certainly execute our basic, business and regional strategies.
As announced on October 31 of last year, a takeover bid was started by our parent company, Nippon Yusen Kaisha. Our company will become a wholly-owned subsidiary of Nippon Yusen Kaisha this business term.
This will make it possible to strengthen our business and regional strategies, increase the efficiency of our business processes, and invest in growth regions at a greater scale than previously possible. Improving our medium- to long-term profitability and competitive power will further enhance our corporate values. We believe that this will aid in pushing us toward completion of our Long-term Vision, “TRANSFORM 2025.” After becoming a wholly-owned subsidiary company, management resources and expertise will be able to be mutually used amongst the Nippon Yusen Group, thereby contributing to future business development. As we will maintain our brand and continue to deploy our business as an independent logistics operator, it is my hope that you will all work in unity with us going forward.
We need to cover the topic of legal compliance once again.
Last year, a major breach of compliance occurred at our company, resulting in a very heavy penalty being imposed. Breaches of compliance greatly damage company trust. Nothing can be prioritized over legal compliance. If you have any doubts or questions regarding daily business activities, do not hesitate to discuss this with somebody.
While I realize that you have undergone various types of training regarding compliance in the past, such training will be continued going forward. Therefore, I hope that each one of you will become more aware of compliance and make every effort to enhance our company framework and regain the trust of our customers.
At Yusen Logistics, we need to keep developing as a company in a sustained manner into the future. To do that, each one of us needs to thoroughly fulfil our role. Please ask yourself, “How can I create better connections in everything I do?” Asking yourself this question will lead to the achievement of TRANSFORM 2025 while also giving you a sense of the significance of and pride in working at our company. It is my earnest wish that everyone at the Yusen Logistics Group and your families will have a healthy and fulfilling year ahead. I hereby conclude my New Year’s greeting to you.