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Directors, Audit & Supervisory Board Members and Executive Officers
Hiromitsu Kuramoto
Kenji Mizushima
Toru Kamiyama
Hitoshi Sakurada
Akio Futami
HidetoshiNakanishi
Toshiyuki Kimura
Makoto Satani
Yasuhiko Ueda
Setsuko Egami
Hiroshi Toda
Hideo Egawa
Chairman and Representative Director
President and Representative Director
Director
Audit & Supervisory Board Member (Full-Time)
Director
Audit & Supervisory Board Member (Full-Time)
Director
Outside Audit & Supervisory Board Member (Part-Time) Independent Auditor
Director
Outside Audit & Supervisory Board Member (Part-Time) Independent Auditor
Outside Director(Part-Time)Independent Director
Outside Director(Part-Time)Independent Director
Directors
Audit &Supervisory Board Members
2017 Annual Report 21 2017 Annual Report 22
ESG /Sustainability
CompanyData
FinancialInformation
OurStrategy
BusinessOverview
President’sMessage
Appointment Name Management Area
Chairman and Representative Director
Hiromitsu Kuramoto
President and Representative Director
Kenji Mizushima
Director Toru Kamiyama Transform 2025 Chamber, Global BPM Department, Information Business System Department, Business Development & Planning Department 1, Business Development & Planning Department 2, Global Air Freight Business Department, Air Freight Forwarding Department, Global Ocean Freight Business Department, Ocean Freight Forwarding Department, Contract Logistics & Transport Department Corporate Officer of Nippon Yusen Kabushiki Kaisha
Director Akio Futami Accounting Department, Finance Department, Corporate Communication Department, Corporate Planning Department, Corporate Investment Chamber
Director Toshiyuki Kimura Operation Administration Department, Customs Clearance Control Chamber, Chief Regional Officer of Japan Region (Japan Region Reform Promotion Division, East Japan Export Sales Division, East Japan Import Sales Division, Central Japan Sales Division, West Japan Sales Division, Contract Logistics Sales Division)
Director Yasuhiko Ueda Internal Audit Chamber, Legal Affairs Department, General Affairs Department, Human Resources Department
Outside Director(Part-Time) Independent Director
Hiroshi Toda
Outside Director(Part-Time) Independent Director
Hideo Egawa
Appointment Name
Audit & Supervisory Board Member (Full-Time)
Hitoshi Sakurada
Audit & Supervisory Board Member (Full-Time)
Hidetoshi Nakanishi
Outside Audit & Supervisory Board Member (Part-Time) Independent Auditor
Makoto Satani
Outside Audit & Supervisory Board Member (Part-Time) Independent Auditor
Setsuko Egami
Directors
Audit &Supervisory Board Members
2017 Annual Report 22
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Appointment Name Management Area
President Kenji Mizushima
Senior Managing Executive Officer
Shoji Murakami Chief Regional Officer of Europe Region,Managing Director of Yusen Logistics (Europe) B.V.
Senior Managing Executive Officer
Toru Kamiyama Global BPM Department, Information Business System Department, Business Development & Planning Department 1, Business Development & Planning Department 2, Global Air Freight Business Department, Air Freight Forwarding Department, Global Ocean Freight Business Department, Ocean Freight Forwarding Department, Contract Logistics & Transport Department In charge of Transform 2025 Chamber Corporate Officer of Nippon Yusen Kabushiki Kaisha
Managing Executive Officer Akio Futami Accounting Department, Finance Department, Corporate Planning Department, Corporate Investment Chamber Assists Contract Logistics & Transport DepartmentIn charge of Corporate Communication Department
Managing Executive Officer Toshiyuki Kimura Central Japan Sales Division, West Japan Sales DivisionIn charge of Operation Administration Department, Customs Clearance Control Chamber, Chief Regional Officer of Japan Region (Japan Region Reform Promotion Division (General Manager), East Japan Export Sales Division, East Japan Import Sales Division, Contract Logistics Sales Division)
Managing Executive Officer Yasuhiko Ueda Internal Audit Chamber, Legal Affairs Department, General Affairs DepartmentIn charge of Human Resources Department
Managing Executive Officer Kunihiko Miyoshi Chief Regional Officer of Americas RegionPresident of Yusen Logistics (Americas) Inc.
Executive Officer Minoru Futonaka In charge of Global BPM Department (General Manager), Global Air Freight Business Department, Air Freight Forwarding Department, Global Ocean Freight Business Department, Ocean Freight Forwarding Department
Executive Officer Masayuki Yokoyama In charge of Corporate Planning Department, Corporate Investment Chamber
Executive Officer Toshio Kawashima In charge of Business Development & Planning Department 1, Business Development & Planning Department 2, Contract Logistics & Transport Department
Executive Officer Lee Check Poh Chief Regional Officer of South Asia & Oceania RegionChairman of Yusen Logistics (Singapore) Pte. Ltd.
Executive Officer Yasumasa Chudo In charge of Central Japan Sales Division (General Manager)
Executive Officer Yoshiaki Shirata In charge of Accounting Department, Finance Department (General Manager)
Executive Officer Michiyo Ono In charge of West Japan Sales Division (General Manager)
Executive Officer Misao Kondo In charge of General Affairs Department (General Manager)
Executive Officer Satoshi Watanabe In charge of Internal Audit Chamber, Legal Affairs Department (General Manager)Chief Compliance Officer (CCO)
Executive Officer Hiroyuki Katayama In charge of Information Business System Department
Executive Officer Seiji Yuzen Chief Regional Officer of East Asia Region, Chairman of Yusen Logistics (China) Co., Ltd.
Executive Officer Shiro Oyasu Executive Officer of TRANSCONTAINER LIMITED
Executive Officers
2017 Annual Report 23
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President’sMessage
Yusen Logistics does not set up a dedicated organization to
support the operations of Outside Directors and Outside Audit &
Supervisory Board Members, but has a support system in which
the Support Office for the Board of Directors gives explanations
about proposals to the Board of Directors to Outside Directors
and Outside Audit & Supervisory Board Members in advance.
Yusen Logistics has developed a support system to provide
additional explanations to Outside Audit & Supervisory Board
Members by full-time members as required.
Corporate Governance
Based on the interests of its stakeholders, which include
shareholders, customers, employees, business partners,
creditors and local communities in Japan and overseas, Yusen
Logistics strives to meet the trust placed in it by these diverse
stakeholders, drive sustainable growth, and enhance corporate
value. This is carried out based on a recognition of the
importance of establishing and creating a corporate governance
system that encourages speedy and strong-minded decision-
making, in addition to ensuring transparency in management
and strengthening management supervision functions.
Yusen Logistics recognizes responding to Japan’s Corporate
Governance Code that went into force in June 2015 as an
important challenge and is implementing initiatives to enhance
its corporate governance framework in line with five basic
principles. To this end, we formulated our Corporate
Governance Principles in November 2015.
Yusen Logistics Corporate Governance Principles
URL: https://www.yusen-logistics.com/sites/default/files/
global/corporate-governance-principles_en.pdf
Yusen Logistics has a system where the directors perform their
duties properly and efficiently in accordance with their authority
and the decision-making rules stipulated in the regulations of
the Board of Directors and the rules for submitting proposals to
the Board of Directors. We have eight directors. The directors
pass resolutions about matters stipulated in laws and regulations,
the Articles of Incorporation, and other important management
issues at ordinary Board of Directors meetings, which are held
once a month, or extraordinary Board of Directors meetings,
which are held as needed.
Furthermore, we have introduced an executive officer system. The
Executive Officers Board, which is made up of 20 executive officers
including executives who are also directors, meets twice a month.
All executive officers perform their duties under the direction and
supervision of the representative directors. This system accelerates
decision making, clarifies responsibility in the execution of duties
and raises management transparency and efficiency.
Audit & Supervisory Board members attend meetings of the Board
of Directors and the Executive Officers Board to stay abreast of
business challenges. Furthermore, to develop a deeper
understanding of the actual status of operations, they also attend
other important company-wide meetings, including sales meetings
and budget meetings. Moreover, Audit & Supervisory Board
members conduct proper audits designed to prevent violations
of laws and regulations and the Articles of Incorporation.
Basic Concepts Concerning Corporate Governance
Corporate Governance Framework
Governance Support System for the Outside Directors and Outside Audit & Supervisory Board Members
Matters Relating to Business Execution, Audit and Supervision, Nomination, Compensation Setting and Other FunctionsItem Overview
Organizational structureCompany with Audit &
Supervisory Board members
Number of Directors 8
(Of whom, the number of outside directors)
(2)
Term of Directors 2 years
Number of Audit & Supervisory Board members
4
(Of whom, the number of outside Audit & Supervisory Board members)
(2)
Number of Independent Officers 4
Accounting AuditorDeloitte Touche Tohmatsu
LLC
Adoption of the Executive Officer System Yes
Approaches to the Corporate Governance Code
(As of June 23, 2017)
2017 Annual Report 24
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President’sMessage
making and the Board of Directors makes decisions on
important business execution. Yusen Logistics believes that this
structure contributes to sustainable growth and enhanced
corporate value as well as appropriate decision-making.
In addition, the Audit & Supervisory Board, which includes
multiple outside members, and the members conduct
exhaustive audits of management that also involve activities in
We have established the Internal Audit Chamber, which carries
out planned internal audits. Audit & Supervisory Board members
conduct hearings on the audit plans of the Accounting Auditor at
the beginning of the fiscal year and receive reports on audit
results at the end of the fiscal year. Audit & Supervisory Board
members are also present when the Accounting Auditor conducts
audits to confirm the audit methodology. Moreover, Audit &
Supervisory Board members cooperate with the Internal Audit
Chamber and receive regular reports on the audit results.
The certified public accountants who audited the financial
statements of Yusen Logistics were Toshiyuki Ono, Tomoya
Noda and Takuma Ueki, all of whom are with Deloitte Touche
Tohmatsu LLC. These three accountants were assisted by four
other certified public accountants and seven others.
Yusen Logistics concludes agreements with outside directors
and outside Audit & Supervisory Board members that limit
liability for damages due to negligence in the performance of his
or her duty as provided for in Article 30, Paragraph 2 and
Article 39, Paragraph 2 of the Articles of Incorporation as set
based on Article 427, Paragraph 1 of the Companies Act of
Japan. These agreements limit the maximum amount of their
liabilities to the higher of either ¥15 million or the amount
prescribed in Article 425, Paragraph 1 of the Companies Act.
Multiple outside directors supervise the management and
business execution of Yusen Logistics in consideration of the
interests of stakeholders from a standpoint that is independent
from major shareholders. At the same time, the Executive
Officers Board has been established to ensure speedy decision-
Reasons for Selecting the Current Corporate Governance Framework
Schematic Diagram: Yusen Logistics Co., Ltd. (YLK)
General Meeting of ShareholdersAppointment,Dismissal
AppointmentDismissal,
Appointment,Dismissal
Board of Directors(Chairperson: Chairman)
Compliance Committee
Internal Audit Chamber
InvestmentExamination Committee
Audit &Supervisory Board
(Kansayaku-Kai)
AccountingAuditor
Full-Time Members (2)Part-Time,
Outside Members (2)
Personal InformationProtection Committee
Board of Directors
Accounting Audit
Audit
Audit
Reports
Reports
Organization ofBusiness Operations
President andRepresentative Director
YLK
YLK Group Companies
Appointment, Dismissal, Supervision
Cooperation Cooperation
Cooperation
ContactsContacts
Des
igna
tion
/ Re
mun
erat
ion
Coun
cil
Ope
ratio
nal
Audi
tD
irec
tion,
Su
perv
isio
n
Directors (6)Outside Directors (2)
conjunction with the accounting auditor and Internal Audit
Chamber. This structure is deemed to be effective as Yusen
Logistics’ current auditing framework.
2017 Annual Report 25
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Total Amount of Remuneration Paid to Directors and Audit & Supervisory Board Members
Attendance at Board of Directors meetings and Audit & Supervisory Board meetings of Outside Directors and Outside Audit & Supervisory Board Members
Hiroshi Toda, Outside Director
Mr. Hiroshi Toda attended 14 out of the 14 Board of Directors meetings held in FY2016. He provides beneficial opinions on management decisions made by the Board of Directors primarily regarding proposals for the overall investment with his expert knowledge of financial markets gained in a securities firm, and also with considerable experience and insight as a corporate executive over the years.
Hideo Egawa, Outside Director
Mr. Hideo Egawa attended 14 out of the 14 Board of Directors meetings held in FY2016. He contributes to the vitalization of the Board of Directors meetings to provide advice and recommendations regarding resolutions related to Yusen Logistics’ overseas development with his extensive knowledge cultivated in overseas strategy at engineering and manufacturing companies.
Makoto Satani, Outside Audit & Supervisory Board Member
Mr. Makoto Satani attended 13 out of the 14 Board of Directors meetings and 14 out of the 14 Audit & Supervisory Board meetings held in FY2016. He provides opinions that enrich discussions in the Board of Directors meetings from a supervisory position of management based on his extensive experience related to international business as well as broad and in-depth knowledge shaped during his time as a corporate executive. He also makes timely queries at the Audit & Supervisory Board meetings from a managerial perspective and exchanges opinions regarding audits.
Setsuko Egami, Outside Audit & Supervisory Board Member
Ms. Setsuko Egami attended 12 out of the 14 Board of Directors meetings and 12 out of the 14 Audit & Supervisory Board meetings held in FY2016. She actively provides opinions at Board of Directors meetings that leverage her extensive experience as a specialist in such areas as human resource development, corporate strategy and marketing strategy. She also makes timely queries at the Audit & Supervisory Board meetings from a technical perspective based on her experience and exchanges opinions regarding audits.
Position Number of recipients* Amount of payment (Millions of Yen)
Directors 10 246
(Of whom, outside directors) (2) (23)
Audit & Supervisory Board members
4 67
(Of whom, outside members) (2) (23)
Total 14 313
(Of whom, outside officers) (4) (46)
* Number of recipients includes a Director and Audit & Supervisory Board member who resigned on June 2016.
(From April 1, 2016 to March 31, 2017)
Reasons for Selecting Outside Directors and Outside Audit & Supervisory Board Members
Hiroshi Toda,Outside Director
Mr. Hiroshi Toda has been involved with numerous important decisions as a manager utilizing his expertise and considerable experience accumulated in the bond and financial markets and financial investment strategies over the years. He has fulfilled his role properly from an objective and independent standpoint with regard to business execution as an Outside Director of Yusen Logistics with his considerable international experience through diplomatic activities as Ambassador Extraordinary and Plenipotentiary, and it has been deemed that he would contribute to further enhance the functions of management supervision and monitoring. He satisfies the criteria for independence stipulated in Article 14 - 2 of Yusen Logistics’ Corporate Governance Principles, and there is no concern of a conflict of interest with general shareholders.
Hideo Egawa,Outside Director
Mr. Hideo Egawa has a wealth of experience in overseas strategy and the aerospace industry cultivated over a long period, along with keen insight regarding corporate management. Yusen Logistics has determined that he will draw upon these qualities in its overall management. In addition, it is expected that he will continue to execute his duties as an Outside Director in an appropriate manner by providing accurate advice regarding management from a broad perspective and demonstrating a high level of supervisory competence and objectivity from an independent standpoint. He was involved in business execution at Mitsubishi Aircraft Corporation until March 2015. He is currently a member of Mitsubishi Heavy Industries, Ltd., but is no longer involved in business execution at this company. He satisfies the criteria for independence stipulated in Article 14 - 2 of Yusen Logistics’ Corporate Governance Principles, and he fulfills his role as an Independent Director to protect the joint interests of shareholders from a standpoint independent from Management and major shareholders.
Makoto Satani,Outside Audit & Supervisory Board Member
Mr. Makoto Satani was part of the management team at Nippon Oil Corporation (currently JXTG Nippon Oil & Energy Corporation) for many years. Yusen Logistics expects him to provide appropriate advice on matters such as the surveillance of company management based on his broad and in-depth knowledge and extensive experience gained as a corporate manager over the years. In addition, he has been designated as an Independent Director since he fulfills the requirements for an Independent Director as stipulated by the Tokyo Stock Exchange, Inc. and there is no concern of a conflict of interest with general shareholders. He is currently also a councilor of Nippon Kaiji Kyokai (ClassNK). Yusen Logistics does not have any business connections or conflicts of interest with this organization.
Setsuko Egami, Outside Audit & Supervisory Board Member
Ms. Setsuko Egami has engaged in a variety of efforts in industry, including corporate strategies, marketing strategies and human resource development. Yusen Logistics expects her to provide effective surveillance of company management and appropriate advice by utilizing her broad and extensive experience. Furthermore, she has been designated as an Independent Director since she fulfills the requirements for an Independent Director as stipulated by the Tokyo Stock Exchange, Inc. and there is no concern of a conflict of interest with general shareholders. She is currently also a professor at Musashi University, a professor at the Graduate School of Musashi University and an Outside Director at Mitsubishi Estate Co., Ltd. Yusen Logistics does not have any particular connection with any of these organizations.
2017 Annual Report 26
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Yusen Logistics has expressed standards and policy related to
independence from Yusen Logistics for selecting outside
directors and outside Audit & Supervisory Board members in
Article 14 of its Corporate Governance Principles. Candidates
shall be designated based on a comprehensive judgment that
they possess extensive knowledge and experience as managers,
expert knowledge and experience of financial, accounting and
legal affairs and so on, independent from the Yusen Logistics
Group, and are capable of ensuring sufficient time for advice to
and supervision of Yusen Logistics businesses, as well as in full
consideration of diversity of the Board of Directors.
Outside directors attend Board of Directors meetings and outside
Audit & Supervisory Board members attend Audit & Supervisory
Board meetings and Board of Directors meetings to provide
opinions from a neutral and objective viewpoint based on
knowledge amassed through extensive experience. Yusen Logistics
incorporates the viewpoints made from an independent standpoint
outside the Company in management by reflecting the opinions
of outside directors and outside Audit & Supervisory Board
members. We believe that this ensures objectivity and neutrality
in decision-making by the Board of Directors.
FY2015
The 21 consolidated subsidiaries of Yusen Logistics paid
remuneration of ¥221 million for audit certification activities and
remuneration of ¥46 million for non-audit activities to a member
firm of Deloitte Touche Tohmatsu Limited, which is affiliated
with the same professional network as the certified public
accountants and others engaged in audits of Yusen Logistics.
FY2016
The 23 consolidated subsidiaries of Yusen Logistics paid
remuneration of ¥215 million for audit certification activities and
remuneration of ¥37 million for non-audit activities to a member
firm of Deloitte Touche Tohmatsu Limited, which is affiliated
with the same professional network as the certified public
accountants and others engaged in audits of Yusen Logistics.
To ensure that the internal control system at Yusen Logistics
functions effectively, we promote compliance and conduct risk
management in an efficient manner.
The Yusen Logistics Group stipulates the Group Code of Conduct
in order for executives and employees to execute corporate
activities in accordance with the laws and regulations, and
internal rules, and social ethics, provide education and training,
and to ensure familiarization therewith so that this will be put
into practice in daily activities.
We stipulate the Basic Compliance Promotion Rules and
establish the Compliance Committee, chaired by the President,
for promotion and stabilization of our compliance system. The
committee sets a compliance program each fiscal year and
establishes and maintains a group-wide compliance framework.
Each department and Group company of Yusen Logistics has a
risk management system for the workplace to expose risk as
well as formulate, implement and evaluate countermeasures.
This enables risk related to operations in a particular area of
responsibility to be identified and managed. The status of
management for important risks in a department in charge is
reported by an executive officer via the Compliance Committee,
and company-wide risk that may lead to loss is recognized.
In addition, to ensure early identification and correction of an
act, or failure to act, that breaches laws and regulations, we have
set up an internal reporting center inside and outside the
Company, in accordance with compliance helpline regulations,
that facilitates a framework for consulting and receiving
inquiries.
Based on the Business Continuity Basic Policy, Yusen Logistics
hold the business continuity management (BCM) meeting
chaired by the President and Representative Director to compile
activities related to company-wide business continuity
management, formulate an annual plan, examine effectiveness
through training, and discuss and decide improvement
measures in preparation for an emergency such as a large-scale
disaster or failure.
The Internal Audit Chamber conducts regular audits of Group
companies and gives advice and proposes improvements as
required.
Internal Control System
Compliance
Other Important Remuneration
Remuneration Paid to the Certified Public Accountants Engaged in Audits of the Company
(Millions of Yen)
Classification
FY2015 FY2016
Remuneration paid for auditcertification
activities
Remuneration paid for
non-audit activities
Remuneration paid for auditcertification
activities
Remuneration paid for
non-audit activities
Yusen Logistics Co., LTD.
66 — 66 —
Consolidated subsidiaries — — — —
Total 66 — 66 —
Risk Management System
2017 Annual Report 27
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President’sMessage
a serious impact on the business performance and financial
position of the Yusen Logistics Group. However, a sharp increase
in fuel surcharges could temporarily reduce the profitability of
the Yusen Logistics Group.
The Yusen Logistics Group has expanded its business to
encompass not only Japan but also the Americas, Europe, Asia,
Oceania, and the Middle and Near East, and the majority of the
Group’s overall sales activities are conducted in overseas
markets. The risks listed below are consistently inherent in such
global expansion.
a. Political and economic factors
b. The effect of public regulations, including business and
investment approvals, taxation, currency exchange controls,
trade restrictions, etc.
c. The impact of natural disasters, including earthquakes,
tsunamis, typhoons, hurricanes, etc.
d. Social turmoil due to wars, international disputes, riots,
terrorism, strikes, and other factors
e. Global economic turmoil due to rapid and drastic fluctuations
in currency exchange rates
f. Spread of extremely contagious diseases with high mortality
rates, such as new strains of influenza
The Yusen Logistics Group carries out a full study of the local
political situation and economy as well as the culture and customs,
health, and other factors when it expands to a new overseas
market to address all possible risks at the time to the maximum
extent. Nevertheless, a variety of unforeseen events, including
increasing sophistication of telecommunications technology,
economic and cultural globalization, frequent incidence of
terrorist acts, and the spread of new infectious diseases, have
been occurring around the world. The business performance
and financial position of the Yusen Logistics Group could be
affected by such events and changes in the international situation
that the Yusen Logistics Group is unable to predict.
The following risks could affect the business performance and
financial position of the Yusen Logistics Group. Forward-looking
statements in the text of this report are based on the judgment
of the Yusen Logistics Group as of the date of submission of the
Annual Securities Report.
In addition to economic trends in target countries and regions,
international logistics demand could be affected by economic
trends in Europe and the Americas that have a substantial
impact on the global economy. In particular, products and
components for personal consumption such as IT-related and
digital devices account for a high proportion of the demand for
Air Freight Forwarding and can be strongly affected by economic
trends in the countries of consumption.
The Yusen Logistics Group has been working to increase its
handling of items such as medical equipment-related products,
daily commodities and food and beverages, which are relatively
immune to economic fluctuations, in addition to electronics,
automobile components and other items. In doing so, it aims to
achieve a business structure that ensures sustainable growth.
Fuel surcharges from aviation companies, in addition to
fluctuations in fuel charges, are usually paid by customers
separately from air freight rates and should not, therefore, have
Potential Risks Accompanying the Global Expansion of BusinessRisks Arising from General Economic
Trends
Risks Arising from Changes in Fuel Surcharges
Business Risks
2017 Annual Report 28
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The Yusen Logistics Group has set up a redundant system for its
computer networks and is working to further strengthen its
backups structure for hardware and data to reduce damage
caused by natural disasters, such as earthquakes, storms and
flooding, to keep their impact to a minimum, and enable prompt
recovery. Moreover, the Yusen Logistics Group has installed
firewalls and virus detection software in its e-mail servers and
terminals, to prevent unauthorized external access and infection
by computer viruses.
Nevertheless, the business performance and financial position
of the Yusen Logistics Group could be affected by a temporary
failure of its computer systems or a leakage of information due
to unforeseeable circumstances such as the invasion to the
internal information systems using technology beyond the
estimated security level.
The Yusen Logistics Group handles a large volume of customer
information. Moreover, the Group provides customs clearance
services, with a duty of confidentiality for customer information
and therefore strives to prevent the leakage of such information.
Nevertheless, the business performance of the Yusen Logistics
Group could be affected by a deterioration of social credibility in
the Group or claims for damages in the event of leakage of
information to any third party due to unforeseen circumstances.
The business of the Yusen Logistics Group is subject to various
legal regulations around the world. These primarily include
social regulations to ensure safety and legal regulations
concerning logistics operations. Key legal regulations in Japan
are as follows.
Changes to current legal regulations around the world may
impact the business results and financial position of the Group
due to one-off expenses that include capital investment.
In addition, serious violations of legal regulations may impact
the business results and financial position of the Yusen Logistics
Group due to a financial imposition such as a fine or levy, and to
suspension of all or part of a business or cancellation of permits
and licenses.
Although the Yusen Logistics Group has foreign currency-
denominated claims and obligations, it uses forward exchange
contracts to reduce the impact of currency exchange rate
fluctuations. Therefore, there is no risk of a major impact on the
Yusen Logistics Group. However, the figures included in the
financial statements of overseas consolidated subsidiaries are
converted into Japanese yen when preparing the consolidated
financial statements of the Yusen Logistics Group, and
fluctuations in currency exchange rates could affect the business
performance and financial position of the Yusen Logistics Group.
Legal Regulations
Risks from Deterioration of Social Credibility or Claim for DamagesArising from Leakage of Customer Information
Risks Arising from Fluctuations in Currency Exchange Rates
Name of permission/approval Ministry/agency with jurisdiction Content of permission/approval Term of validity
Second Class Consigned Freight Forwarding Business
Minister of Land, Infrastructure, Transport and Tourism
Permission for business operation
No specific term of validity
Air Transport AgentMinister of Land, Infrastructure, Transport and Tourism
Notification of business operation
Same as above
Customs Clearance BusinessDirector-General of Customs with regional jurisdiction
Permission for business operation
Same as above
First Class Consigned Freight Forwarding Business
Director of the Transport Bureau with regional jurisdiction
Registration of business operation
Same as above
Warehousing BusinessDirector of the Transport Bureau with regional jurisdiction
Registration of business operation
Same as above
Medical Devices Manufacturer Prefectural GovernorPermission for business operation
September 26, 2015 to September 25, 2020
Specially Controlled Medical Devices Sales and Leasing Business
Prefectural GovernorPermission for business operation
June 12, 2013 to June 11, 2019
Risks Arising from Computer Failure, Viruses, Cracking and Cyberterrorism
2017 Annual Report 29
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a. Position within the NYK Group
As of March 31, 2017, Nippon Yusen Kabushiki Kaisha Group
(NYK Group) was composed of 552 consolidated subsidiaries
and 200 equity-method affiliates and is a comprehensive
logistics enterprise centered on the ocean transportation
business.
The Yusen Logistics Group is mainly involved in the Freight
Forwarding Business and the Warehousing Business, and no
other NYK Group company engages in the same Air Freight
Forwarding Business as Yusen Logistics with permission from
the Minister of Land, Infrastructure, Transport and Tourism as
a Second Class Consigned Freight Forwarding Business.
As a listed company, Yusen Logistics also strives to ensure its
independence, and none of the decisions made by Yusen
Logistics require the prior approval of NYK.
b. Personnel relationships with the NYK Group
As of the date of submission of the Securities Report, one of
Yusen Logistics’ 12 officers serves concurrently at an NYK
Group company. The position and name of this officer at
Yusen Logistics and the position at the NYK Group are shown
below.
c. Transactions with NYK and consolidated subsidiaries of NYK
(excluding the Yusen Logistics Group)
The principal transactions between Yusen Logistics and NYK
and the consolidated subsidiaries of NYK during the
consolidated fiscal year under review are shown below.
Business transactions are conducted on the same terms as
those of regular transactions taking into account the actual
market conditions.
i. Transactions with NYK
The principal transactions between Yusen Logistics
and NYK concern delegation of NYK for the
transportation of some marine freight handled by
Yusen Logistics. Business transactions during the
consolidated fiscal year under review amounted to
¥2,398 million.
ii. Transactions with consolidated subsidiaries of NYK
The principal transactions between Yusen Logistics
and consolidated subsidiaries of NYK concern
delegation to UNI-X Corporation and 18 other
companies of marine transportation and associated
operations. Business transactions during the
consolidated fiscal year under review amounted to
¥4,401 million.
Relationship with the NYK Group
Position at Yusen
LogisticsName
Position at NYK Group Company
(excluding the Yusen Logistics
Group)
Director,Senior Managing Executive Officer
Toru Kamiyama
Corporate Officer, Nippon Yusen Kabushiki Kaisha
2017 Annual Report 30
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Human Resource Development / Initiatives for Diversity
In 2011, Yusen Logistics introduced training under its Global Sales
Enrichment Program (GSEP) for mid-level sales representatives
from overseas as well as Japan. The program aims to enable
participants to acquire knowledge related to Air Freight Forwarding,
Ocean Freight Forwarding and Contract Logistics to provide
optimum solutions which meets customers’ expectations.
In November 2016, the sixth GSEP was held, with 35 people from
21 countries. A total of 192 employees had participated by 2016,
which has served to bolster our overall sales network.
Another objective of the program is to build global networks
among employees who take part in this program.
Going forward, efforts will be made to strengthen organizational
capabilities by fostering human resources worldwide who have the
expertise and knowledge to take on roles globally.
It was such a wonderful experience to take part in the GSEP.
People from different generations and cultures came together
and participated enthusiastically in the sessions, with the aim of
Yusen Logistics’ further growth. This resulted in the successful
exchange of a lot of information in a short time on such topics as
the work environment, logistics market and so on in each country.
There were a number of other sessions besides discussion and
debate, including a workshop on kaizen (continuous improvement)
and proposals for logistics solutions to simulated customers. The
Global Sales Enrichment Program (GSEP)
Comment from a Participant
program transcended regular operations and helped us build
connections with other employees who were working hard in
different parts of the world, thus truly embodying Yusen Logistics’
brand promise “Create Better Connections”. I came to see that
each person, including those in the program, has a role to play in
supporting Yusen Logistics, and because of this, I’m confident that
Yusen Logistics will continue to expand into the future.
Shota GotoYusen Logistics Co., Ltd.
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As part of its efforts to promote diversity, Yusen Logistics Co., Ltd.
initiated a project to advance women’s success in 2016. We view
women’s roles as key to driving dramatic advancement for Yusen
Logistics going forward. With this in mind, we are collating the
issues facing female employees around Japan, led by the Human
Resources Department. The issues are then discussed along with
project members to find viable solutions.
Despite the fact that more females are being hired for Yusen
Logistics Co., Ltd. than men, the proportion of female managers
was only slightly higher than 6% overall as of March 2017. An
urgent task is to therefore foster more women who can take on
managerial roles.
Yusen Logistics (China) Co., Ltd. took part in a run event in October
2016. It was a 5.6-kilometer race run challenge held in the
Shanghai Oriental Sports Center.
It has been held for 40 sessions, covering five continents, seven
countries and thirteen cities all over the world. It intended to make
people aware of work-life balance when chasing dreams.
This was the 6th event since 2011. Yusen Logistics (China) Co.,
Ltd. participated in this big event with other NYK group companies,
there were 15 participants in total. They were not only veterans
who continuously joining for many years but also many new faces.
To Advance Women’s Success
Enhancing Colleague Friendship through Running Race
Japan
Although the situation has improved, the number of years of
continuous employment for women is still lower than that for men.
Accordingly, we are working hard to improve the working
environment for women. Our efforts include setting up a
consultation office for employees who are returning to work
following maternity leave or childcare leave, as well as providing a
self-development program to enable a smooth transition back to
work, so that employees on leave do not feel a sense of distance
from Yusen Logistics.
Critical areas in the initiative to foster female employees involve
further improving the work-life balance, and creating an
organization in which all managers are much more aware of the
need to foster female employees.
In addition, to conduct more suitable personnel evaluations, we
formulated an evaluation policy that focuses on productivity per
hour and efficiency, alongside the degree of contribution to Yusen
Logistics, and are striving to reform work styles to ensure higher
motivation in daily operations.
Through initiatives such as these, we are aiming to double the
proportion of female managers in Japan to at least 12% by 2021.
Through the team racing, we could enhance colleague friendship
and recognize the importance of our healthy lifestyle.
East Asia
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0
2,000
4,000
6,000
FY2014 FY2016
(TEU)*1
Corporate Social Responsibility (CSR)
Application of the Strang System is contributing to the reduction of
lumber during ocean transport, which was previously thrown out
after use. Previously, lumber 15-30 meters length was required for
each container. Now, thanks to the Strang System, lumber is no
longer needed at all. We have been increasing the number of
containers using the Strang System every year, with more than
5,000 such containers on a TEU*1 basis handled in FY2016. In
addition to reducing lumber used in ocean transport, this helps
popularize the use of recyclable expanded polystyrene (EPS)*2.
The Strang System is a safe and efficient method for securing
heavy cargo such as steel products for intermodal transport in
shipping containers using a revolutionary system incorporating
expanded polystyrene (EPS). It is a new technology that has
been patented all around the world, including Japan. Yusen
Logistics Co., Ltd. acquired an exclusive license for using the
technology in Japan from Strang Systems an Australian port
service company.
Yusen Logistics Co., Ltd. is working to reduce the consumption of
paper in air transportation through electronic air waybills instead
Yusen Logistics is working on activities that are kind to the environment such as reducing the environmental
burden and protecting natural surroundings.
The NYK Group’s environmental policy is applied to these activities.
Increased of Environmentally Friendly Metal Products Forwarding (the Strang System)
Our Initiatives for the EnvironmentWhat is the Strang System?
Reduction of Paper Consumption through Electronic Air Waybills
Lumber lashing system previously in use
*1 TEU: Twenty-foot equivalent unit*2 EPS is a resource-saving material consisting of 98% air and 2% resin. It permits 100%
recycling since its properties remain relatively unchanged.
Strang System
Number of Containers Exploiting the Strang System
of its paper version. We digitized 7.2% of all master airwaybills by
FY2016. We also digitized 21.3% of all house airwaybills by FY2016.
Japan
The NYK Group’s environmental policyhttps://www.yusen-logistics.com/en/about-us/csr/environment/
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Industrial materialsHeat recovery / Thermal insulation
material / Sedatives / Steel raw material
Yusen Logistics (Americas) Inc. completed a LED light retrofit
project at its warehouse in Carson, California with the aim of
reducing power consumption.
Yusen Logistics replaced 966 fixtures with LED lights at the
486,000-square-foot facility. The retrofit will reduce energy use on
average by one million kilowatt-hours (kWh) per year.
The project will also eliminate 309 tons of carbon dioxide each
year, which is the equivalent of removing 3,488 cars from the road.
Yusen Logistics Co., Ltd. has started an initiative to recycle
administrative documents into toilet paper when disposing of
documents after completion of the retention period.
As a first trial in December 2016, approximately 12 tons of
documents were recycled into some 71,000 rolls of toilet paper.
Measures to Reduce Power Consumption by LED Light in a Warehouse
Promotion of Paper Recycling
Administrative documents Process at dissolution treatment plant
Japan
Americas
In addition to an expectation of 60% savings in total annual lighting
costs, it is expected that energy consumption will be reduced by
65% year on year.
Besides achieving significant energy cost savings, the retrofit
created a safer work environment by providing brighter and more
uniform lighting throughout the warehouse.
Recycled toilet paper
Paper, fiber
Incombustibles
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On a breezy Saturday afternoon in October 2016, 61 employees of
Yusen Logistics (Singapore) Pte. Ltd. joined “Yusen Love Our Beach
Day” with enthusiasm, doing their part for corporate social
responsibility (CSR). The event raised awareness and promoted a
culture of giving back to the community.
The employees wholeheartedly gathered and geared up with
tongs, gloves and trash bags to clean the beach. To boost
everyone’s determination and make the event more memorable, a
treasure hunt was arranged during the cleaning. After the gratifying
beach cleaning, everyone enjoyed yummy bentos with refreshing
chilled drinks.
In April 2016, Yusen Logistics (Czech) s.r.o. joined an international
initiative “Clean up the World” an annual event with aim to identify
and eliminate illegal waste dumps and trash around the country.
“Yusen Love Our Beach Day”
Let’s Clean Up the Czech Republic
Through this event, Yusen Logistics (Singapore) Pte. Ltd. is able to
carry out sustainable environmental practices and be more
conscious of our social and moral responsibilities. Yusen Logistics
aspires to organize more engaging CSR activities for its employees
to have a positive impact on social and environmental wellbeing.
The employees supported the event together with their families
in the neighbourhood of Yusen Logistics (Czech) s.r.o. sites in
Strančice, Ovčáry and Krupka. Yusen Logistics (Czech) s.r.o. has
supported this event regularly for 3 years. The number of
participants has been increased year by year.
South Asia & Oceania
Europe
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Yusen Logistics Co., Ltd. and Yusen Logistics (Thailand) Co., Ltd.
supported transport goods from Thailand to Japan through air
freight. The goods are sent overland to Bangkok by Yusen Logistics
(Thailand) Co., Ltd. Chiang Mai branch and then sent to Narita
Airport in Japan with the cooperation of an airline company. Yusen
Logistics Co., Ltd. then handled import and transportation goods
from Narita Airport to the NPO Ban Rom Sai Japan’s Kamakura
store. In December 1999, Ban Rom Sai was established in a suburb
of Chiang Mai in northern Thailand as an orphanage for children
who have lost their parents or have contracted the human
Yusen Logistics (Americas) Inc. supported the transport of relief
supplies by Boeing to Charleston, South Carolina, which was hit
hard by Hurricane Matthew at the start of October 2016.
Boeing sent bottled water, sanitizing wipes, blankets and other
provisions from Seattle-Tacoma Airport to support the recovery of
Boeing employees who were working in Charleston as well as the
local community. Yusen Logistics (Americas) Inc. cooperated with
Support for a Community Facility for Children in Thailand through Air Freight
Assisting Boeing with Transportation of Relief Supplies
immunodeficiency virus (HIV) from their parents. Ban Rom Sai
conducts operations independently, without depending solely on
donations. The facility makes original products such as clothing and
crafts using hand-woven cloth from Chiang Mai and uses cloth
from ethnic minorities. These are sold at NPO Ban Rom Sai Japan’s
Kamakura store and other places.
Yusen Logistics is committed to contributing to the achievement
of a prosperous society for children through its global Air Freight
Forwarding Business.
the transportation as a long-time partner of Boeing, provided
warehouse services at its Seattle Branch, including receiving,
sorting, labeling and repacking of supplies as well as delivery to
the airport.
Japan
Americas
South Asia & Oceania
Social Contribution
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In January 2017, Yusen Logistics Co., Ltd. held a swimming class for
children attending the Hakuyo Swimmers school in Chiba, Japan.
The swimmer Ayatsugu Hirai is a top athlete, who joined Yusen
Logistics Co., LTD. in April 2016 after using “Athnavi”, served as an
instructor for the class, which attracted some 60 children.
As part of our social contribution activities, the swimming class
was conducted with the cooperation of the Hakuyo Swimmers
school. Many children attended the class because it was held
where Hirai, who has achieved a number of exceptional results in
tournaments in Japan and around the world, had practiced in the
past.
In September 2016, Yusen Logistics (Czech) s.r.o. organized a
collection of old toys which their children no longer need but still
are in good condition. Yusen Logistics (Czech) s.r.o. managed to
collect huge amounts of toys and after sorting them, some were
delivered to foster homes and the others were delivered to asylum
house for mothers with children suffering hardships. As you can
imagine the children jumped for joy when they received toys
without having a Christmas.
Swimming Class for Children by a Top Athlete
Collecting Toys for Children
The day included a talk show, instruction on freestyle and the
breaststroke, and a series of events such as relay races where
participants were split into six groups. Many of the children
commented on how much fun the program was.
Yusen Logistics will continue contributing to the continuous
development of society through its global logistics business. It will
also ensure that each employee keeps social contribution activities
at the forefront of their thinking, including the support of culture as
a good corporate citizen.
Europe
Japan
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Yusen Logistics (Hungary) KFT. joined the Light of My Eyes
Foundation’s “Thank You! Donations Sweets program” in 2016.
The Light of My Eyes Foundation based in the city of Pécs in
Hungary has committed to the building of a purpose built
hospice for children and young adults with the help of “Thank You!
Donations Sweets program” and other donation programs. Profit
from the sale of “Thank You! Donations Sweets program” is used to
care for sick children.
The Light of My Eyes Foundation works on the very special field of
Children’s health and education. They provide free children’s
ambulance and transportation services. The foundation opened
Making a Donation with Buying ‘Thank You Candies’
the first Hungarian Children’s Hospice House. The Light of My Eyes
Foundation’s mission is to improve the quality of life of terminally
ill children and to support their parents and families during a
difficult time.
We would like to enhance our support relationship with the Light
of My Eyes Foundation in 2017.
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