Restructuring of the Yusen Logistics GHQ into a New Company

Yusen Logistics Co., Ltd. (President: Hiroyuki Okamoto, YLK) will restructure its group organizational management and spin off its Global Headquarters (GHQ) into a separate company. This restructuring is part of our Corporate Transformation (CX), outlined in Phase 3 of our long-term vision, "TRANSFORM 2025". Currently, GHQ and the Japan region are managed separately within YLK. They will now become independent organizations with distinct roles and functions, enabling agile and dynamic decision-making while further enhancing the overall group management.

＜Overview of new GHQ company＞

*The management structure effective 1st April, 2025 will be announced at a later date.

1. Purpose and Background of the Establishment of Yusen Logistics Global Management Co., Ltd. (YLGM) 
For the Yusen Logistics Group, it is essential not only to continue existing initiatives, but also to take measures to adapt to the changing business environment and fulfil our mission: "To become the world’s preferred supply chain logistics company."
We have positioned CX as a basic fundamental strategy in Phase 3 of our long-term vision, "TRANSFORM 2025", which began in 2017. As part of this initiative, in April 2024, we consolidated the headquarters' functions of our five Regional Headquarters (RHQ) into GHQ. By strengthening the network that directly connects GHQ and each operation company, we have enhanced our decision-making capabilities and responsiveness to the business environments of each country and region, while simultaneously strengthening our global governance. To enhance our global organizational management capabilities from a medium to long-term perspective, we have concluded that it is optimal to separate GHQ, which specializes in group management, from the current system where GHQ and Japan coexist.

The purpose of the GHQ spin-off is to clarify the roles of GHQ and the Japan region, enabling optimal organizational management that addresses the unique challenges faced by each region. The details are as follows:

■ Clarification of Functions: YLGM will lead the global management of the Yusen Logistics Group's through strategic planning for the entire organization. YLK as operation company,  leveraging its business foundation and market insights, will transform into an organization capable of responding effectively to the business environment and pursuing sustainable growth.
■ Facilitating further growth of the Yusen Logistics Group on a global scale: By strengthening GHQ functions, we will accelerate growth in global markets by enhancing management protocols throughout our group to drive optimal decision-making.

Headquartered in Tokyo, YLGM is a global company where English serves as the official language. YLGM aim to build a diverse team by promoting the exchange of global talent, in line with the long-term vision of Nippon Yusen Kabushiki Kaisha (NYK) Group CX Story, to become "a Global Company Headquartered in Japan." Following the Yusen Logistics Group's policies and guidelines (YL Standard), YLGM will oversee operations in each country and region, striving for optimal management of the entire Yusen Logistics Group. YLGM employees will be seconded from both our company and overseas operation companies through a proactive global mobility policy, collaborating to support the new structure.

With Phase 3 of "TRANSFORM 2025" entering its final year in fiscal 2025, YLGM has begun planning future Business Transformation (BX) initiatives that will serve as the foundation for the next medium-term management plan, in parallel with CX. Under this new management structure, our Group's management philosophy will remain guided by our brand promise, "Create Better Connections." YLGM will continue to embrace the challenge of shaping a unique future for our company, with the goal of become the world’s preferred supply chain logistics company.

2. Timeline for the Succession of GHQ Functions to YLGM
① On July 31st, NYK established Yusen Logistics Global Management Co., Ltd. (YLGM)
② On October 31st, NYK's Board of Directors approved a company split, through which NYK will transfer its shares of YLK to YLGM. (Effective date is scheduled for January 2025)
③ On November 27th, YLK plans to conclude a company split agreement with YLGM. GHQ functions will be transferred from YLK to YLGM on 1st April, 2025, and business operations will commence under the new structure on the same day.

*With the establishment of YLGM, "Yusen Logistics Global Management Limited" in Hong Kong, which is responsible for some GHQ functions, has been renamed "Yusen Logistics Global Management (Hong Kong) Limited."

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