Message from the President

I would like to take this opportunity to thank our stakeholders for their continued support and understanding.

During the previous consolidated fiscal year, the global economy maintained steady growth, supported by domestic demand-driven expansion in the United States and certain emerging countries, as well as a recovery in personal consumption due to higher real wages in other countries and regions. However, the outlook remained uncertain due to Russia’s prolonged invasion of Ukraine, escalating tensions in the Middle East, and increasing geopolitical and economic security risks, including U.S.-China tensions.
Under these economic circumstances, in the logistics industry, international logistics saw a recovery in demand for cargo transportation, mainly due to an increase in air cargo transportation resulting from the expansion of cross-border e-commerce from China. Meanwhile, ocean cargo transport remained unstable, as geopolitical and natural disaster risks directly impacted freight movement, including prolonged suspension of passage through the Suez Canal due to unrest in the Middle East and transit restrictions in the Panama Canal caused by record droughts. The logistics sector in Japan saw signs of recovery in personal consumption; however, production-related freight transport remained sluggish due to a slowdown in capital expenditures, resulting in overall cargo movement lacking strength. Additionally, the industry continued to face pressure to address the 2024 problem, as well as rising costs driven by soaring labor and fuel expenses.
The impact of geopolitical and economic security risks on supply chains, labor shortages, and persistently high fuel prices leading to increased procurement costs remain factors requiring close monitoring.

In response to this business environment, the NX Group launched the NX Group Business Plan 2028: Dynamic Growth 2.0—Accelerating Sustainable Growth on January 1, 2024. While there have been no major changes in our vision or direction, we have been working to realize our long-term vision of becoming a logistics company with a strong presence in the global market with a greater sense of urgency, and have been implementing the various measures set forth in our management plan and management with a focus on enhancing our corporate value.

In accelerating growth in the global market, we aimed to expand our business domain by providing end-to-end solutions for our customers’ global supply chains, and focused on expanding sales of air and ocean forwarding services and strengthening the provision of a wide range of logistics solutions centered on warehousing.

Under our strategy to rebuild businesses in Japan, we worked to expand revenue through the establishment of an account management promotion framework, the strengthening of logistics operations, and the expansion of transactions in priority industries. At the same time, in addition to measures to continue to enhance domestic businesses in Japan, we have been working to improve profitability and capital efficiency such as reforming and reviewing our business foundations.

Under our current business plan, we have positioned sustainability management as the foundation of all our business activities. To enhance corporate value and address social challenges, we reviewed and redefined five materialities (critical issues): (1) Develop and strengthen sustainable solutions; (2) Solidify global supply chains; (3) Strengthen our response to climate change; (4) Enhance human capital to foster innovation; and (5) Respect human rights and engage in responsible corporate activities. We have worked to advance initiatives to resolve each of these issues.

Under our initiatives to improve corporate value, we have been taking steps to achieve capital profitability that exceeds capital costs. In other words, to increase the equity spread, we have recognized that improving ROE is a top priority issue, so we have been working on growth strategies incorporated in the management plan. Furthermore, we have been shifting to management conscious of capital efficiency by introducing ROIC as a new internal management indicator. We also have begun to optimize our capital structure through a review of our capital policy and have strengthened our business portfolio management.

The NX Group is committed to accelerating reform toward our long-term vision of becoming a logistics company with a strong presence in the global market. We will continue striving for further growth and greater corporate value.
We would be grateful for your continued understanding and support.