NYK Report

2011
Annual Report
Yusen Logistics Co.,Ltd.
GO FORWARD, Yusen Logistics

By accomplishing three steps of Integration, Fusion and Dramatic Progress,
we aim to be A Total Logistics Provider operating globally with world-class scale and quality.
In October 2010, Yusen Logistics Co., Ltd. was born out of
integration of Yusen Air & Sea Service, a logistics provider of 55
years of experience and with strength in air freight forwarding, with
NYK Logistics (Japan), another logistics provider having 27 years of
experience with its core business in ocean freight forwarding.
We are currently proceeding with gradual integration with NYK
Logistics overseas business which has strength in ocean freight
forwarding and contract logistics. Once completed, we will be
able to satisfy diversified customer needs in all services that

seamlessly cover air and ocean freight forwarding, land transport
and contract logistics.
We will accomplish steady Integration, promote Fusion of
internal values and then make Dramatic Progress to be able to
provide high-quality services that satisfy requests from many
customers, with an ultimate goal of becoming a total logistics
provider operating globally with world-class scale and quality.
FUSION
Fusion of
employee awareness
INTEGRATION
YAS
Fusion of
Fusion of
organizations
governance
NYK Logistics
Fusion of Operation
Promote Fusion of employee awareness,
organization and governance, in order to
maximize synergies, share corporate values
worldwide within the Yusen Logistics (YLK)
Group and aim to achieve its goals.
Completion of Integration
Plans to complete business integration with NYK
Logistics business by March 2012.
Mission
Maximize enterprise value by contributing to the development
of the global economy and earning the confidence of
customers through the provision of sophisticated, high-quality
logistics services.
Vision
A Total Logistics Provider operating globally with world-class scale
and quality.
Values
Customer
Centric
Quality /
Gemba Focused
Integrity
HR-oriented
Management
Innovation
Environmental
Management
Intensity
DRAMATIC
PROGRESS
Toward
Business
Strategy
World-Top Class
Total Logistics
Sales Strategy
Provider
Area Strategy
For Dramatic Progress

Establish the 3D Management that positions business, sales and area
strategies as three basic strategies, and aim to be A Total Logistics Provider
operating globally with world-class scale and quality.
Portfolio by
Business
segment
(forecast)
FY2013
FY2010
YLK (YAS)
NYK Logistics
Yusen Logistics
Yusen Logistics
(Companies to be Integrated only)
5%
8% 3%
Air
Ocean
Land transport
Logistics
Others
4%
21%
Geographical
segment
23%
26%
42%
12%
14%
68%
30%
33%
27%
Portfolio by
2%
25%
24%
33%
(forecast)
FY2013
FY2010
YLK (YAS)
Yusen Logistics
NYK Logistics
Yusen Logistics
(Companies to be Integrated only)
8%
Americas
Europe
South Asia & Oceania
East Asia
Japan
13%
9%
21%
24%
37%
13%
50%
23%
23%
15%
18%
16%
18%
37%
19%
24%
14%
18%
Yusen Logistics Annual Report 2011
Consolidated Financial Highlights

Yusen Logistics Co., Ltd. and Consolidated Subsidiaries
Years Ended March 31
Millions of Yen
Results of Operations
Financial Position
Per Share Data
2009
2010
2011
2011
167,460
123,453
160,788
$ 1,933,716
Operating income
4,574
2,310
4,947
59,499
Net income
1,083
1,545
3,621
43,542
Total assets
75,733
81,443
88,363
$ 1,062,691
Total equity
51,249
53,663
55,360
665,781
Yen
U.S. Dollars (Note)
Net sales
Basic net income
Net assets
25.68
36.63
85.85
1.032
1,173.84
1,225.21
1,260.69
15.162
18.00
16.00
18.00
0.216
Return on equity (ROE) (%)
2.0
3.1
6.9
Net income to total assets (%)
1.2
2.0
4.3
65.4
63.4
60.2
5,326
5,252
5,623
Cash dividends
Key Ratios
Thousands of U.S. Dollars

(Note)
Equity ratio (%)

Number of employees
Note: The U.S. dollar amounts represent translations of Japanese yen amounts at the rate of 83.15 = US$1. See Note 1 to the consolidated nancial statements on page 23.
Net Sales
Operating Income
Net Income
(Millions of Yen)
(Millions of Yen)
(Millions of Yen)
12,000
200,000
8,000
6,000
150,000
8,000
4,000
100,000
4,000
2,000
50,000
2007 2008 2009 2010 2011
2007 2008 2009 2010 2011
Total Assets
Free Cash Flows
(Millions of Yen)
(Millions of Yen)
100,000
8,000
80,000
6,000
60,000
4,000
40,000
2,000
20,000
-2,000
2007 2008 2009 2010 2011
ROE / Net income to total assets (%)

ROE
Net income to total assets
20
15
10
2007 2008 2009 2010 2011
2007 2008 2009 2010 2011
2007 2008 2009 2010 2011
To Our Shareholders
I was appointed to President of Yusen Logistics Co., Ltd. on April 1, 2011.

Yusen Logistics was born in October 2010, out of the integration of Yusen Air & Sea Service and NYK
Logistics (Japan), and is working to realize the business target of being a total logistics provider
operating globally with world-class scale and quality.
In scal 2010 (that ended March 31, 2011), we recorded net sales of 160.8 billion and ordinary
income of 6.1 billion. By implementing our new medium-term business plan that began in scal
2011, "GO FOWARD, Yusen Logistics," we aim to achieve net sales of 500 billion and ordinary income
of 18.5 billion in scal 2013 by realizing integration effects and growth. In addition to becoming
bigger in scale, the new company now has a better sales mix by business and region, which enables
us to respond to increasingly sophisticated logistics needs of our customers in all types of services in
air and ocean freight forwarding, land transport and contract logistics. We expect to (1) grow mainly
in ocean freight forwarding and in Asia, (2) realize integration effects, (3) develop global operations
and (4) expand services to our customers.
We plan to complete integration of our overseas businesses by March 2012. In order to make 1+1
into 3 or 4, we need the Fusion of our operations. Within the forwarding business, air and ocean
freight forwarding differ in various ways and in their business culture. We will spend a year or two to
build workplaces where people respect each other through sharing of the new companys policies
and through exchanges among the workforce. As we believe that revitalization of human resources is
most critical in creating value, we will pursue empowerment, promote young workers and invest in
training of our workforce.
With regard to dividends, we recognize that the return of prots to shareholders is a matter of high
managerial priority. We are committed to pay stable dividends, as long as we generate sufcient
prot. With due consideration to our groups growth and expansion plans, our basic policy is to
increasingly reward our shareholders. Based on this policy, we expect to pay 20 per share dividend
based on our current earnings forecasts for scal 2011.
We would like to ask for your continued support and patronage.
Hiromitsu Kuramoto
President
An Interview with the President
Q1
A1
Will you explain the trend in the freight

forwarding industry and effects of the
Great East Japan Earthquake?
The industry is recovering from a
drop in business since the Lehman
Bankruptcy. Demand for international
freight forwarding is on an uptrend in
the medium to long term.
Q2
How do you evaluate your scal 2010

business results?
A2
We achieved growth in sales and

prots, led by favorable business in
Asia, Americas and Europe.
After the Lehman Bankruptcy in 2008, our freight forwarding
We recorded a decrease in sales and income in fiscal 2009,
volume dropped in 2009 but returned to an uptrend in 2010,
mainly due to the worldwide recession triggered by the Lehman
thanks to a global economic recovery. In addition to growth in
Bankruptcy. In fiscal 2010, however, we achieved growth in
Asia, demand has picked up in the developed countries in Europe
sales and profits. Net sales increased by 30.2% year-on-year
and Americas. Demand for international freight forwarding is on
to 160.8 billion and ordinary income by 82.5% to 6.1 billion,
an uptrend in the medium to long term, as manufacturing bases
thanks mainly to global economic recovery and our group-wide
and retailers procurement have become globalized.
cost reduction efforts. In the rst half, our business recovered
However, the Great East Japan Earthquake of March 11,
substantially thanks to an increase in international freight
2011 has further delayed a recovery in Japan-related freight,
forwarding handling volume, particularly in Asian countries
growth of which had already been slow due to the appreciation
and the effects of our Project Plus One an upgraded version
of the yen and overseas inventory adjustment.
of the Urgent project to improve balances that was launched

in fiscal 2009. In the second half of fiscal 2010, overseas
freight forwarding businesses were robust in general but the
appreciation of the yen and overseas inventory adjustment
resulted in a decrease in export and import freight volumes in
Japan. Moreover, the Great East Japan Earthquake of March
11, 2011 affected some businesses. Overall, we had a difcult
time in Japan but that was offset by strong achievement
overseas, in particular based on a recovery in East Asia and a
turnaround in protability in Americas and Europe.
New Medium-Term Business Plan GO FORWARD, Yusen Logistics

Completion of Integration
Integration
(Consolidation)
Schedule
2010
Oct.
2011
Nov.
Dec.
Jan.
2012
Feb.
Oct., 1, 2010
Yusen Logistics
New system starts
Scope of Consolidation
(including equity-method companies)
Mar.
Apr.
Jun.
Jul.
Dec.
Jan.
Feb.
Mar.
Apr., 1, 2011
Overseas new system starts
Jul., 1, 2011
By the end of March
The U.S., UK, Hong Kong, etc.

Integration of 22 countries
and regions
From July, integration of

Philippines, India, etc.
China, UAE, and others

Schedule for completion of
Integration of overseas businesses
From Oct., integration of

Thailand
61
41
companies
May
companies
Q3
A3
Please review your previous mediumterm business plan, the YAS FIVESTAR PROJECT.
We were forced to lower numerical
targets due to the global economic
crisis but improved management quality
substantially.
Q4
What are the targets in GO FORWARD,

Yusen Logistics your new mediumterm business plan?
A4
We aim to achieve 500 billion in net

sales and 18.5 billion in ordinary
income in scal 2013.
In the previous business plan for scal 2008-2010, we initially
Our theme in the new business plan for scal 2011-2013, which
aimed to become a total logistics provider and achieve
we announced in April 2011, is to become a total logistics
numerical targets of 260 billion in net sales and 15 billion
in ordinary income. However, we lowered numerical targets
We set our numerical targets at 500 billion in net sales and
to 140 billion in net sales and 6.5 billion in ordinary income
18.5 billion in ordinary income for scal 2013. Our net sales
in January 2010 because of the global economic recession
were 160.8 billion in fiscal 2010 but are expected to reach
triggered by the Lehman Bankruptcy in 2008. By the end
338 billion in scal 2011 when integration with NYK Logistics
of the final year, we achieved the net sales target, thanks
overseas business is completed. By then, we will become a
to integration with NYK Logistics (Japan) and higher-than
large-scale company with approximately 16,600 employees.
expected overseas freight volumes, but fell short of ordinary
A global network that covers most countries and regions in
income target because of sluggish growth in Japans freight
the world will be instantly established with a service portfolio
volume.
seamlessly spanning air, ocean and land transport.
In contrast, we made signicant progress toward becoming
In order to be recognized as a global player, we have to
a total logistics provider by realizing business integration. We
have the sufcient levels of freight volume and quality services
obtained the first JISQ9100 (the Quality Management System
that are required for the world top ve players. By scal 2013,
for Aerospace parts) certification in transportation industry,
we aim to achieve ocean freight volume of 1 million TEU and
which proved our quality enhancement, while we promoted
air freight volume of 500 thousand tons. At the same time, we
improvement of our human resources by opening the Yusen
target to become a No. 1 Kaizen (Improvement) Company in
Logistics Professional College.
contract logistics and our sales department aims to establish

the Yusen Logistics brand in the global market.
Fusion of Operations Toward Maximization of Synergies

Fusion of employee awareness
Group value sharing (Integrity, Innovation, and Intensity)
Target Performance for the Final Year of the Project

Numerical target
(Billions of Yen)
500
Rebuild awareness toward A Total Logistics Provider operating globally
427
Net sales
Fusion of organizations
Organic unification, streamlining and IT system cooperation of each of
integrated companies
Improvement of organizational management by each regional headquarters
Fusion of governance
Establishment of 3D management
Restructuring of global compliance system
370
All companies
to be integrated, total (note)
YLK (consolidated)
Ordinary income
All companies
to be integrated, total (note)
YLK (consolidated)
338
12.5
9.1
3.7
8.2
6.7
Net income
YLK (consolidated)
18.5
15
FY 2011
FY 2012
FY 2013
(Note) Total of companies to be integrated by March 2012.
*Ordinary income is calculated by adding to or subtracting from operating income items such interest income or expenses, foreign exchange gains or
losses, dividend income, securities sales gains, losses, or evaluation losses. Ordinary income is the Companys important income indicator.
An Interview with the President
Q5
A5
What is the 3D Management?
This is a scheme to efciently expand

and manage business from three
dimensions, namely, by area, by
business and by customers or their
industries.
Q6
What do you as a president nd most

precious?
A6
I nd human resources are most

important.
The 3D Management means to operate business efficiently
What I emphasize most is to revitalize human resources.
from three dimensions, namely, by area, by business and by
We strive to build a meaningful and satisfying company for
customers or their industries, manage them from various
our employees, meaning workplaces where people respect
aspects, and ensure to generate balanced prots.
each other through sharing of the new companys policies
As a logistics company in the Nippon Yusen Group, we
and exchanges among the workforce. When highly-motivated
will put much value on "Customer Centric," "Quality/Gemba
employees with a sense of responsibility make constant efforts
Focused," "HR-oriented Management" and "Environmental
in improving proposals and service quality, customers will
Management" with integrity, innovation and intensity. We will at
become more satised and the companys business will grow.
the same time establish the 3D Management. We will make
In order to revitalize employees, we will pursue empowerment,
best use of our comprehensive capability and respond to more
promote young workers, and invest in development of human
diversifying customer needs for freight forwarding with an
resources. In particular from fiscal 2011 when we enter into
ultimate goal of becoming a total logistics provider operating
a Fusion stage to generate synergies, it will be important
globally with world-class scale and quality.
for people to respect each other through sharing of the new

companys policies and exchanges among the workforce.
Our majority of employees are non-Japanese, with
Japanese accounting for merely about 10% of total workforce.
Fusion between Japanese employees and foreign employees
is an important issue. I myself will get involved in this
revitalizing and fusion effort but expect to take a year or two to
achieve the goal.
3D Management
Organization
HR-oriented
Management
Business Strategy
Japan
East Asia
3D Management
South Asia/Oceania
The Concept of
Europe
Americas
Area Strategy
Air ean
cs
Oc ct Logistisport
a Tran
Contr
Land
r1
ome
Cust
r2
e
om
Cust
r3
e
m
o
Cust
er 4
m
o
t
Cus
r5
ome
Cust
Sales Strategy
IT
Finance
CSR
Environmental
Management
Basic Management Strategy

Intensity
Customer Centric
Quality/Gemba Focused
Integrity
Value
Innovation
Q7
Please talk about the Dramatic

Progress which you target after the
Integration and the Fusion.
Q8
What are your earnings forecasts for

scal 2011?
A7
We will achieve the status of A Total

Logistics Provider operating globally
with world-class scale and quality.
A8
We will record a growth in sales and

earnings, partly due to business
integration.
In the new medium-term business plan GO FOWARD, Yusen
We are planning to generate 338 billion in net sales and 9.1
Logistics, we will rst focus on integration and fusion. When
billion in ordinary income in scal 2011, thanks to progress in
we become a lively job-oriented company of employees who
integration of major overseas subsidiaries.
understand the corporate philosophy and with progress in
By region, we expect a profit improvement in Americas,
fusion worldwide, we will become a company that can provide
Europe, South Asia and Oceania. In Japan we are looking
the world best quality total logistics solutions to our customers
for negative impacts from the Great East Japan Earthquake
worldwide. This should result in our becoming a total logistics
of March 11, 2011 but a recovery in freight forwarded in the
second half of the year when reconstruction works progress at
We aim to achieve 500 billion in net sales by scal 2013 but,
production bases.
once the Dramatic Progress materializes, we can grow into a
Integration with NYK Logistics business, which has a global
1 trillion company in sales. I appreciate your supports to our
network, will help increase sales signicantly in Americas and
endeavor.
Europe, where our contract

logistics and land transport
businesses will expand.
I n A s i a , p ro f i t g ro w t h i s
expected.
Business Strategy
Strategy_01
Ocean Forwarding Business
Handling target
Strategy_01. 02
Sales Strategy
Purchasing Strategy
Toward
World-Top
Class
Forwarder
FY2013: 1 million TEU
Quantitative expansion by service quality and price

competitiveness
Strategy_02
Air Forwarding Business
Handling target
FY2013: 500 thousand tons
Sales expansion through product development enhanced by

global network and further quality improvements
Strategy_03
Contract Logistics Business
Aim to be No. 1 Kaizen (Improvement) Company

By brand enhancement as No. 1 Kaizen (Improvement)
Company, heighten synergies with forwarding business
Product and Quality Strategy
Strategy_03
Competitive Gemba,
front line
Standard
quality creation
to meet needs
Thorough cost management
Reliable launch
Elaboration
Eco-friendly handling
Cutting-edge technology IT
Quality standards
Cultivation of human resources
Assistance for launch
Strengthen weakness (SWOT)
Cost management
Toward
World-Top Class
Total Logistics
Provider
Corporate Governance
Basic Stance and Initiatives on Corporate Governance

YLK (the Company) seeks to maintain its standing as a good corporate
citizen, earning the trust of all stakeholders and their ongoing support.
To this end, the Company upholds a high standard of ethics its business
activities-global logistics services-and strives to engage in fair and
dependable business practices in compliance with prevailing laws and
within accepted social parameters.
Corporate Governance Structure

Outline of Corporate Governance Structure and Reasons for its
Adoption
The Board of Directors, which is the Companys decision-making body,
consists of seven directors who are engaged in determination of legal
matters, resolving of signicant basic policies and surveillance of the
execution of operations. The Company has also adopted the Executive
Officer System with the aim of accelerating decision making in the
execution of operations. At present, the Board of Executive Officers,
comprised of 19 executive ofcers, discusses and resolves signicant
matters to execute operations.
In addition, the Board of Corporate Auditors consists of four
auditors, two of which are from outside the Company, and whose
assignment is to audit the execution of duties of the Board of Directors
and the Board of Executive Officers from an objective and neutral
perspective.
The Company has chosen the above system which it believes to
ensure management transparency and efficiency, with prompt and
appropriate decision making and clear identification of duties and
responsibilities in the execution of operations.
Status of the Internal Control System

The Company carries out efficient compliance promotion, risk
management and internal audits to ensure that its internal control
system functions effectively.
Compliance
The Company established a Code of Conduct in May 2005 to ensure
that each YLK Group employee carries out and accomplishes
corporate activities and routine work in accordance with corporate
ethical guidelines and social morals, as well as by observing laws
and regulations. The Company also distributed the Group Compliance
Manual group-wide (domestically in March 2006 and overseas in March
2008). All Group executives and employees have since adhered to its
guidelines in their daily activities.
As an internal compliance system, the Compliance Committee,
chaired by the President, the position of Chief Compliance Officer
(CCO) and the CSR/Risk Management Chamber have been established.
Moreover, 66 employees of the Company and its Group companies have
been assigned as CSR Leaders to promote compliance within their
workplaces.
Risk Management System
The Company has established the CSR/Risk Management Chamber,
which specializes in managing significant risks that might affect the
management of the Company or might have Company-wide effect.
The CSR/Risk Management Chamber always identies, analyzes, and
assesses risks and takes appropriate action.

Each division manage risks relating to its operations in accordance
with relevant internal regulations and in cooperation with the CSR/Risk
Management Chamber.
The CSR/Risk Management Chamber reports risks and risk
management to the Compliance Committee, which is chaired by the
President, and to the Disaster Risk Management Meeting.
Internal Audits, Corporate Audits, and Accounting Audits
The Company has established the Internal Audit Chamber, staffed by
four employees, to undertake regular internal audits of the Group. The
corporate audits are conducted by four auditors including two external
auditors, in accordance with the auditing plan established by the
Board of Auditors. Motonobu Kobayashi, a full-time auditor, had held
a position of executive managing director of NYK Logistics (Japan) Co.,
Ltd. while Masaaki Hashimoto, another full-time auditor, had served as
president of Yusen Air & Sea Service (Chugoku) Co., Ltd. and Yusen Air
& Sea Service (Korea) Co., Ltd. Both auditors have long accumulated
experience and knowledge of logistics business management. The two
external auditors have knowledge and understanding of management:
Makoto Satani through his long experience and performance in the oil
industry; and Setsuko Kusumoto through her experience in business
and academic elds.
At the beginning of each fiscal year, the Company's corporate
auditors hear from the accounting auditors representatives regarding
their auditing plan for the year, and at the year-end, they receive their
reports on the audit results and conrm the methods used. They also
hear from the Internal Audit Chamber regarding its auditing plan and
receive regular updates on auditing results.
The certified public accountants who execute accounting audits
of the Company are Takashi Nagata, Tomoyasu Maruyama and Kenji
Morita, all from Deloitte Touche Tohmatsu. They are assisted in their
accounting operations by three additional certied public accountants
and seven assistants.
External Directors and External Auditors

Among two external auditors, Makoto Satani is an executive consultant
of JX Nippon Oil & Energy Corporation and a councilor of Nippon Kaiji
Kyokai, while Setsuko Kusumoto is a professor at Musashi University.
The Company has no business transaction with JX Nippon Oil & Energy
Corporation, Nippon Kaiji Kyokai and Musashi University and neither of
our two external auditors has any particular interest in the Company.
External Auditors attend the Board of Directors and the Board of
Corporate Auditors and contribute to the meetings from an independent
perspective and with insights and views accumulated from a great deal
of experience. The Company believes that the Board of Directors is
ensured to make objective and neutral decisions by reecting views of
External Auditors in its auditing and using their independent external
perspectives in managing the Company.
While the Company has not appointed an External Director for this
year, the monitoring capability toward the Board of Directors, which is
a management decision-making body and has a function of authority
and direction regarding execution of duties of Directors and Executive
Ofcers, has been enhanced by having two external auditors among the
four auditors. The current structure ensures the function of external
objective and neutral management surveillance, which the Company
believes is an important element of corporate governance.
(1) Details of Remuneration
Amount paid
(Millions of Yen)
Category
Remuneration Paid to Audit Certication Services, etc.

Fiscal 2009
Types of remuneration (Millions of Yen)

Basic salary
Number of recipients
Retirement
benefits
Bonus
Directors (excl.
external directors)
225
160
21
44
10
Auditors (excl.
external auditors)
38
31
External directors
and auditors
15
10
278
201
21
56
16
Total
Fiscal 2010
Payments for
audit certification
services
(Millions of Yen)
Payments for
non-audit
services
(Millions of Yen)
Payments for
audit certification
services
(Millions of Yen)
Payments for
non-audit
services
(Millions of Yen)
The Company
56
65
Consolidated
subsidiaries
60
69
Category
Total
(2) Total amount of consolidated remuneration for directors with

remuneration of 100 million and more: Not applicable.
(3) Signicant employee compensation for employee-directors:
Not applicable
(4) The amount of remuneration, bonuses and any other proprietary
benets to be granted to Directors by the Company in consideration
of their performance of duty (hereinafter referred to as
remuneration) shall be determined by a resolution of a General
Meeting of Shareholders, according to the Articles of Incorporation.
The total amount of Directors remuneration is limited to 300
million per year according to the resolution passed at the 53rd
General Meeting of Shareholders held on June 28, 2007.
The total amount of Auditors remuneration is limited to 80
million per year according to the resolution passed at the 53rd
General Meeting of Shareholders held on June 28, 2007.
(Fiscal 2010) Thirteen consolidated subsidiaries of the Company have

paid 107 million for audit certification services and
33 million for non-audit services to Deloitte Touche
Tohmatsu member firms, which belong to the same
network as the certied public accountants that conduct
audits for the Company.
Number of Directors
The number of directors of the Company is stipulated at 20 or less,
according to the Articles of Incorporation.
Non-Audit Services Provided by Certied Public Accountants, etc. to the

Company
(Fiscal 2009) Not applicable.
Requirements for Resolutions Concerning the Election of Directors

Resolutions to appoint directors must be approved by a majority of
the votes represented by shareholders at meetings in which at least
one-third of the shareholders eligible to exercise voting rights are in
attendance. According to the Articles of Incorporation, no cumulative
voting shall be allowed for the election of directors.
(Fiscal 2010) Not applicable.
Other Important Details on Remuneration

(Fiscal 2009) Thirteen consolidated subsidiaries of the Company
have paid 83 million for audit certication services and
17 million for non-audit services to Deloitte Touche
Tohmatsu member firms, which belong to the same
network as the certied public accountants that conduct
audits for the Company.
Policy on Determining Audit Remuneration

There is no specific policy. Remuneration is determined according
to the days spent on the audit, the size or the Company and the
characteristics of its activities and other factors.
General Meeting of Shareholders

(As of June 30, 2011)
Appointment, dismissal
Reports
Board of Directors*
Establishment, dissolution
Seven directors
(make business decisions)
Audits
Reports
Compliance
Committee
Appointment,
dismissal
Four auditors, two of whom are

external auditors
Reports
Direction, supervision
Reports
Instructions
Audits
19 executive officers
(execute operations)
Instructions
Accounting
Auditor
Audits
Board of Executive Officers
Instructions
Cooperation
Representative
Directors
Reports
Reports
Opinion
exchange
Board of Corporate Auditors
Appointment,
dismissal, supervision
Personal
Information
Protection
Committee
Reports
Cooperation
Internal Audit Chamber

(internal auditing department)
Direction, supervision
Audits
Head Office Organization (departments and chamber) Overseas Representative Organization

Instructions
Branch Organization (sales division, branches)
Board of Directors, Corporate Auditors and Executive Ofcers
Board of Directors
Shunichi
Yano
Hiromitsu
Kuramoto
Chairman
President
*Representative Director
*Representative Director
Masahiko
Fukatsu
Masahiro
Omori
Hiroyuki
Yasukawa
Kazuo
Kato
Shoji
Murakami
Director,
Senior Managing
Executive Ofcer
Director,
Managing
Executive Ofcer
Director,
Managing
Executive Ofcer
Director,
Managing
Executive Ofcer
Director,
Managing
Executive Ofcer
Motonobu
Kobayashi
Masaaki
Hashimoto
Makoto
Satani
Setsuko
Kusumoto
Auditor
Auditor
External Auditor
External Auditor
Shotaro
Omura
Takashi
Isobe
Kunio
Fujii
Tatsuo
Aoyagi
Toshio
Maekawa
Managing
Executive Ofcer
Executive Ofcer
Executive Ofcer
Executive Ofcer
Executive Ofcer
Kenichi
Kotoku
Toshiyuki
Kimura
Tatsuhiko
Saeki
Eiichi
Suzuki
Taiji
Kitagawa
Executive Ofcer
Executive Ofcer
Executive Ofcer
Executive Ofcer
Executive Ofcer
Akio
Futami
Kazuo
Ishizuka
Hiroyuki
Okamoto
Executive Ofcer
Executive Ofcer
Executive Ofcer
Corporate Auditors
Executive Ofcers
10
FINANCIAL SECTION
Financial Section Contents

Consolidated Six-Year Summary
12
Managements Discussion and Analysis
13
Consolidated Balance Sheets
18
Consolidated Statements of Income
20
Consolidated Statement of Comprehensive Income
20
Consolidated Statements of Changes in Equity
21
Consolidated Statements of Cash Flows
22
Notes to Consolidated Financial Statements
23
Independent Auditors Report
39
Corporate History
40
Shareholders Information
41
Consolidated Six-Year Summary

Years Ended March 31
Millions of Yen
Results of Operations
2011
2010
2009
2008
2007
2006
160,788
123,453
167,460
187,518
182,617
168,454
Cost of sales
124,514
92,127
128,663
141,736
138,278
127,321
Gross prot
36,274
31,326
38,797
45,782
44,339
41,133
Selling, general and administrative expenses
31,327
29,016
34,223
35,566
33,901
30,698
4,947
2,310
4,574
10,216
10,438
10,435
Net sales
Operating income
Income before income taxes and minority interests
5,887
3,004
2,859
12,178
11,514
11,197
Net income
3,621
1,545
1,083
7,271
6,722
7,006
Sales by Geographical Segments

Japan
77,635
61,227
72,337
87,355
82,757
86,517
Americas
13,471
10,782
16,696
17,758
17,364
16,813
Europe
15,022
11,888
20,564
21,417
19,236
15,674
East Asia
31,705
22,315
33,079
35,185
39,080
34,192
South Asia and Oceania
25,742
19,332
26,958
28,520
26,915
17,786
2,787
2,091
2,174
2,717
2,735
2,528
160,788
123,453
167,460
187,518
182,617
168,454
2.26
2.21
2.57
2.38
2.46
2.16
60,883
52,690
47,245
66,558
58,300
54,883
Current liabilities
22,538
21,462
17,193
32,716
29,175
31,243
Equity (Note 1)
53,164
51,668
49,501
57,725
51,191
44,138
Total equity (Note 2)
55,360
53,663
51,249
59,614
52,551
Total assets
88,363
81,443
75,733
98,366
89,567
85,613
Inter-segment sales/transfers
Net sales
Consolidated to non-consolidated ratio (times)
Financial Position
Current assets
Net cash provided by operating activities
5,675
840
8,213
8,127
9,048
6,755
Free cash ows (Note 3)
6,970
(796)
4,394
5,255
6,139
4,859
Yen
Per Share Data

Basic net income (Note 4)
85.85
36.63
25.68
172.43
159.46
327.48
Cash dividends (full year) (Note 4)
18.00
16.00
18.00
20.00
15.00
30.00
1,260.69
1,225.21
1,173.84
1,368.84
1,213.90
2,090.18
Net assets (Note 4)
Key Ratios
Gross prot to net sales
22.6
25.4
23.2
24.4
24.3
3.1
1.9
2.7
5.4
5.7
6.2
Cost of sales to net sales
77.4
74.6
76.8
75.6
75.7
75.6
Selling, general and administrative expenses to net sales
18.2
Operating income to net sales
24.4
19.5
23.5
20.4
19.0
18.6
Net income to net sales
2.3
1.3
0.6
3.9
3.7
4.2
Return on equity (ROE)
6.9
3.1
2.0
13.4
14.1
17.5
Net income to total assets
4.3
2.0
1.2
7.7
7.7
8.7
Asset turnover (times)
1.9
1.6
1.9
2.0
2.1
2.1
60.2
63.4
65.4
58.7
57.2
51.6
42,220,800
42,220,800
42,220,800
42,220,800
42,220,800
21,110,400
Equity ratio (Note 4)
Other Year-End Data

Number of shares outstanding (Note 4)
Notes: 1. Equity (53,164 million at 2011) = total equity - minority interests.

2. From the scal year ended March 31, 2007, total equity includes minority interests in accordance with the enforcement of Japans Corporate Law.
3. Net cash provided by operating activities + net cash used in investing activities
4. These gures do not include any adjustments for the execution of a 2-for-1 stock split in April 2006.
5. The above gures included treasury stock of 50,484 shares in 2007, 50,236 shares in 2008, 50,212 shares in 2009, 50,296 shares in 2010 and 50,734 shares in 2011. On April 1, 2006, the Company
executed a 2-for-1 stock split.
12
Managements Discussion and Analysis
As of March 31, 2011, the Yusen Logistics Group comprised Yusen

Logistics Co., Ltd. (the Company), Nippon Yusen Kabushiki Kaisha
(parent company), 35 consolidated subsidiaries and ve equity-method
afliates. The Groups major business activities are the cargo business
and the travel business. As of April 1, 2011, Yusen Air & Sea Service
(U.S.A.) Inc. changed its name to Yusen Logistics (Americas) Inc., Yusen
Air & Sea Service (Europe) B.V. changed to Yusen Logistics (Europe)
B.V., Yusen Air & Sea Service (H.K.) Ltd. changed to Yusen Logistics
(Hong Kong) Limited and Yusen Air & Sea Service (Singapore) Pte. Ltd.
changed to Yusen Logistics (Singapore) Pte. Ltd.
Overview
During the fiscal year under review, the world economy recovered
gradually, thanks to economic stimulus measures implemented
by many countries, but the growth has slowed down since the third
quarter (October to December, 2010.) The U.S. saw some bright spots
in consumer spending but little improvement in employment or the
housing market, while Europe in aggregate continued to grow slowly
due to austere fiscal policies that were implemented to deal with
nancial problems. In contrast, China maintained high economic growth
rates, while Vietnam, India and other Asian countries grew steadily,
supported by robust growth in domestic demand.
Japans economy was supported by external demand from Asian
economic growth and turned from a sluggish stage to a recovery stage
by the third quarter. However, the Great East Japan Earthquake of
March 11, 2011 affected Japans economic activities signicantly.
Against this backdrop, the global air freight market generally
recovered steadily despite some differences between region. In Asia,
particularly in fast-growing China, the freight movements of electronic
and automotive components were favorable and contributed to an
increase in freight volumes handled by the Yusen Logistics Group
(hereafter referred to as the YLK Group or the Group). On the other
hand, freight movements have been slow in Japan since the third
quarter, partly due to the appreciation of the yen.
In fiscal 2010, net sales increased by 30.2% year-on-year to
160,788 million (US$1,934 million). Operating income was 114.1%
higher at 4,947 million (US$59 million), while net income increased by
134.4% to 3,621 million (US$44 million).
Net Sales (Left)

Gross Profit Ratio (Right)
Operating Income Ratio (Right)
Cost of Sales (Left)

Cost of Sales Ratio (Right)
Geographical Segment Information

(Figures include inter-segment transactions)
Japan
The Japan segment, including domestic consolidated subsidiaries,
recorded sales of 77,635 million (US$934 million; up 26.8% year-onyear) and segment prot of 333 million (US$4 million; down 64.7% yearon-year.)
Air freight exports, a growth was seen in handling of office
equipment-related freight to Europe and construction machinery-related
freight to Asia at the beginning of the fiscal year under review, but
freight to Europe and the U.S. slowed down in the second quarter due to
the sharp appreciation of the yen and completion of inventory rebuilding
in overseas markets. In the fourth quarter, handling of automotive
components began to recover but did not make a full-edged recovery
as the Great East Japan Earthquake caused a temporary setback in
freight movements in March. As a result, freight volumes handled during
the year under review increased by only 4.3% year-on-year.
Regarding air freight imports, handling of semiconductor-related
products and apparel products from Asia has slowed down since the
third quarter, but handling of medical equipment-related products from
Americas was steady and that of Beaujolais Nouveau from Europe was
robust. As a result, the number of shipments handled during the year
under review increased by 5.8% year-on-year.
The Company's ocean freight forwarding business handled exports
of precision equipment and imports of large medical equipment. In
addition, it completed business integration with NYK Logistics (Japan)
Co., Ltd. and established a new business structure. The volume of ocean
freight exports handled increased from the previous year.
In the travel services segment, demand for corporate business travel
gradually recovered and cruise sales posted a steady performance.
During the scal year under review, the Group generated expenses
that were related to a relocation of the head office and integration of
domestic and overseas logistics businesses of Nippon Yusen Kabushiki
Kaisha.
Americas
The Americas segment recorded sales of 13,471 million (US$162
million; up 24.9% year-on-year) and segment prot of 749 million (US$9
million; compared to a 5 million operating loss in the previous year) .
Selling, general and

administrative expenses (Left)
Selling, general and
administrative expenses Ratio (Right)
Net Income (Left)

Basic net Income per Share (Right)
(Billions of Yen)
(%)
(Billions of Yen)
(%)
(Billions of Yen)
(%)
(Billions of Yen)
(Yen)
200
40
200
100
40
40
400
150
30
150
75
30
30
300
100
20
100
50
20
20
200
50
10
50
25
10
10
100
2007
2008
2009
2010 2011
2007
2008
2009
2010
2011
2007
2008
2009
2010
2011
2007
2008
2009
2010
2011
13
While air freight exports were temporarily stagnant because of a

series of airport closures caused by winter storms in North America in
January 2011, air freight exports to Japan were favorable throughout
the year, particularly the handling of automotive components,
semiconductor-related products, spot shipments of wine, and urgent
shipments of medical equipment-related products. As a result, freight
volumes handled during the year increased by 40.3% year-on-year.
Among air freight imports, handling of electronic components,
automotive components, PC-related products as well as at-screen TV
sets related has been steady. However, air freight imports showed signs
of sluggishness, similar to air freight exports, and resulted in growth of
14.0% year-on-year in the number of shipments handled.
In the case of ocean freight exports, strong growth was recorded,
thanks to favorable freight volumes of automotive components as well
as steady freight volumes of frozen meat to Japan.
Ocean freight imports were also rm for automotive components,
similar to ocean freight exports.
Europe
The Europe segment recorded sales of 15,022 million (US$181 million;
up 26.4% year-on-year) and segment profit of 527 million (US$6
million; compared to a 472 million operating loss in the previous year).
In air freight exports, shipments were steady for automotive
components to Asia and medical equipment and pharmaceuticals,
while handling of solar panels in the environmental and energy area,
the industry in which the YLK Group is making strong sales efforts, was
favorable. In January, we handled chocolate from Belgium to Japan,
thanks to its seasonal demand. As a result, freight volumes handled
during the year increased by 67.3% year-on-year.
In air freight imports, handling of ofce equipment related products
and electronic components continued to be strong. Although the volume
handled decreased in the fourth quarter, as a reaction following the
December peak season, the number of shipments handled for the year
grew by 27.5% year-on-year.
Ocean freight exports, shipments were far exceeded those of the
previous year, thanks to steady handling of automotive components as
well as favorable handling of apparel products to Asia.
In ocean freight imports, handling of motorcycle-related products
from Asia and electronic equipment was rm.
Net Sales
by Geographic Region (%)
Japan
Americas
Europe
East Asia
South Asia &
Oceania
East Asia
The East Asia segment recorded sales of 31,705 million (US$381
million; up 42.1% year-on-year) and segment profit of 2,001 million
(US$24 million; up 207.6% year-on-year.)
With regard to air freight exports, we did not experience a peak
freight shipment, which we normally do in the third quarter, and the
freight movements in the fourth quarter were sluggish, partly due to an
impact of the Chinese New Year holidays. Handling of major products,
namely, PC-related products or digital home appliances, was subdued,
despite rush demand prior to Chinese New Year holidays and some
urgent spot shipments. As a result, freight volumes handled during the
year under review increased by 27.2% year-on-year.
Air freight imports, thanks to steady handling of digital home
appliances, PC- and semiconductor-related products as well as
electronic and automotive components from the Asian region, the
number of shipments handled during the year increased by 16.9% yearon-year.
In the ocean freight exports, handling of game equipment bound
for China and motorcycle-related products for Europe and the U.S. was
steady.
Regarding ocean freight imports, handling of game equipment, just
as for exports, and glass substrates for at-screen TVs was strong.
Steady prots were ensured as we did not see a big swing in freight
rates from airline companies, because of lack of a peak in seasonal
demand which we normally see prior to the Christmas season in the U.S.
and Europe.

The South Asia and Oceania segment recorded sales of 25,742 million
(US$310 million; up 33.2% year-on-year) and segment prot of 1,352
million (US$16 million; up 12.8% year-on-year).
Air freight exports, handling of automotive components to Thailand,
China and Japan, and electronic components within the Asian region
has been steady throughout the year. Despite a setback in freight
movements in the fourth quarter partly due to inuence of the Chinese
New Year holidays, freight volumes handled during the year increased
by 32.5% year-on-year.
Air freight imports, handling of automotive components was steady
throughout the year, despite a slowdown in shipment movements
Japan
Americas
Europe
Total Sales (Left)

Profit (Right)
Total Sales (Left)

Profit (Loss) (Right)
(Billions of Yen)
(Billions of Yen)
(Billions of Yen)
Total Sales (Left)

Profit (Loss) (Right)
15.7%
47.5%
19.4%
100
30
30
75
20
20
50
10
10
25
-10
9.2%
8.2%
Note: Percentages include inter-segment sales/

transfers.
14
0
2007
2008
2009
2010
2011
-1
2007
2008
2009
2010
2011
-10
-1
2007
2008
2009
2010
2011
caused by a decrease in material imports that was in turn triggered by

electronic component production adjustment from the third quarter. As
a result, the number of shipment handled during the year increased by
16.1% year-on-year.
Ocean freight exports, freight volumes were increased, due to
steady handling of automotive components to the U.S. and Japan. The
ocean freight imports, shipments were also favorable, supported by
handling of automotive components, similar to ocean freight exports,
and handling of plant equipment and devices. In Australia, we handled
imports of construction equipment from the U.S. to the areas damaged
by the oods in Queensland.
Financial Position
As of March 31, 2011, total assets amounted to 88,363 million (US$1,063
million), up 6,920 million or 8.5% year-on-year. While total property,
plant and equipment and other current assets decreased by 1,050
million and 1,736 million respectively from a year ago, cash and time
deposits increased by 8,712 million and trade notes and accounts
receivable by 1,162 million.
Total liabilities were 33,003 million (US$397 million), up 5,223
million or 18.8% year-on-year. Major factors include a 4,472 million
increase in long-term debts and a 807 million increase in trade notes
and accounts payable, which more than offset a decrease of 1,028
million in current portion of long-term debt.
Total equity amounted to 55,360 million (US$666 million), mainly
due to an increase in retained earnings and a decrease in foreign
currency translation adjustments. The equity ratio was 60.2%.
Cash Flows
Cash and cash equivalents as of March 31, 2011 increased by 8,349
million or 49.9% from a year ago, to 25,089 million (US$302 million).
Net cash provided by operating, investing and financing activities
amounted to 5,675 million, 1,295 million and 2,566 million
respectively.
Net cash provided by operating activities increased by 4,835
million or up 575.6% from the previous year to 5,675 million (US$68
million). The main contribution to this was 5,887 million of income
East Asia
Total Sales (Left)

Profit (Right)
before income taxes and minority interests, together with depreciation

and amortization of 1,780 million and an increase in trade notes and
accounts payable of 1,302 million, while an increase in trade notes and
accounts receivable of 1,978 million and income tax payment of 1,560
million reduced cash.
Net cash provided by investing activities totaled 1,295 million
(US$16 million), up 2,931 million from the previous year when net
cash used in investing activities amounted to 1,636 million. Proceeds
from withdrawal of time deposits exceeded payments into time deposits
by 721 million and the amount of collections of loans receivable was
1,761 million more than the amount of lending of loans receivable,
while 1,182 million was used to purchase of property, plant and
equipment.
Net cash provided by financing activities totaled 2,566 million
(US$31 million), up 3,933 million from the previous year when net cash
used in nancing activities amounted to 1,367 million. This was mainly
attributable to proceeds from long-term loans payable of 4,500 million
which far exceeded expenditures of 1,000 million for repayment of
long-term debt and an outow of 715 million for cash dividends paid.
Dividend Policy
The Company recognizes the return of prots to shareholders as one
of its top priorities. The Companys basic policy is to offer a stable
dividend within the limits set by business results, and to steadily raise
shareholder returns with due consideration to consolidated payout ratio
while accurately gauging the stages of future business expansion and
corporate growth.
The Company pays dividends twice a year-an interim dividend and
a year-end dividend.
The Company treats payments of year-end dividends as a matter at
the General Meeting of Shareholders, while our Articles of Incorporation
stipulate that interim dividends can be distributed to shareholders of
record as of September 30 each year pursuant to the resolution of the
Board of Directors.
Based on the above policy, the Company has decided to set the
year-end dividend for scal 2010 at 9.00 per share. This will bring the
annual dividend to 18.00 per share, including the 9.00 yen per share
interim dividend paid on December 3, 2010.
Equity Ratio
Cash Flows
Total Sales (Left)

Profit (Right)
(Billions of Yen)
(Billions of Yen)
(%)
Net Cash Provided by Operating Activities

Net Cash Used in Investing Activities
Free Cash Flows*
(Billions of Yen)
40
40
80
10
30
30
60
20
20
40
10
10
20
-5
0
2007
2008
2009
2010
2011
2007
2008
2009
2010
2011
-10
2007
2008
2009
2010
2011
2007
2008
2009
2010
2011
* Net cash provided by operating activities +

net cash used in investing activities
15
Fiscal 2011 is a particular important year for the Company, as being

the year to complete overseas business integration and the rst year of
the new medium-term business plan. The Company will make groupwide efforts for raising its corporate value. The Company sincerely asks
our shareholders for their continued support and understanding.
Business Risk Factors

1. General Business Trends
Demand for international transportation services can be inuenced by
economic conditions of a specic country or region and, in particular,
by those of Europe and the U.S., which tend to greatly affect the status
of the world economy. Indeed, air freight forwarding services are used
predominantly for products and components intended for consumers,
such as digital home appliances and IT-related goods. Business
conditions of the importing countries could have an impact on demand
for such services.
The YLK Group seeks to build an operating structure that facilitates
stable growth, and therefore is working to boost transactions for
products, such as medical equipment, pharmaceuticals and automotive
components, which are relatively less susceptible to the changing
economic conditions.
2. Fuel Price Fluctuations

Typically, the fuel surcharge charged by airline companies in line
with short-term uctuations in fuel prices is a fee that customers are
required to pay on top of air freight. Consequently, a surcharge in and of
itself should not have a material impact on the operating results or the
nancial conditions of the YLK Group. However, the Groups protability
may be temporarily impaired if and when conditions precipitate a
sudden rise in the fuel surcharge.
3. Inherent in Global Business Expansion

The Groups business activities extend beyond Japan to other areas
of Asia, as well as Oceania, the Middle East, Europe and Americas.
Roughly half of the Groups sales activities are conducted outside of
Japan. Possible risks that could emerge as the Group works to expand
its presence globally are:
. Political and economic factors,
. Impacts of ofcial rules and regulations, such as business and
investment permits, taxation, foreign exchange control, and trade
regulations,
. Impacts from natural disasters, such as earthquakes, tsunami,
typhoons, and hurricanes,
. Social unrest prompted by such events as war, international
disputes, riots, terrorism, and strikes,
. Globally pervasive economic disruption caused by sudden uctuations
in exchange rates,
. An epidemic of a highly infectious disease with a high mortality rate,
such as a new type of inuenza.
When expanding to a new overseas location, we closely examine
local political and economic conditions as well as its culture, customs
and public health situation, and strive to eliminate as effectively as
possible whatever risks may exist. Nevertheless, unexpected events
do occur and the state of the world does change in ways that cannot
always be fully anticipated. Such developments, which include advanced
information and communications technology, increasingly borderless
economic and cultural environments, the frequency of terrorist activities
and the spread of new infectious diseases, could have a material impact
on the business results and nancial conditions of the Group.
16
4. Computer Viruses, Hackers and Cyber-Terrorism

The Company has established a backup system for its computer lines.
We are also working to enhance backup capabilities to minimize
damage to hardware and data in the event of natural disasters, such as
earthquakes or severe storms and flooding. The Company has taken
all possible measures to prevent unauthorized access to its systems
from outside and to block infection of its systems by computer viruses.
Specically, we have installed rewalls and virus-checking software into
our mail servers and all terminals. Despite these defensive measures,
it is possible that unforeseen situations, such as the use of technology
that breaches presumed security protocols and allows a hacker to
gain entry to in-house information systems, could lead to a temporary
shutdown of system functions or facilitate unauthorized disclosure of
information. Such situation could hurt the business results and nancial
conditions of the Group.
5. Leaks of Customer Information Leading to Claims for

Damages and Tarnished Credibility
The YLK Group handles a vast amount of customer information and also
undertake customs clearance services. We thus have an obligation to
protect customer information and strive to prevent information from
leaking outside. Despite such precautions, it is possible that unforeseen
circumstance could result in an information leak. The Groups business
results could be adversely affected if, for example, such leak were to
lead to claims for damages or if the situation tarnished the Groups
reputation.
6. Exchange Rate Fluctuations

The YLK Group endeavors to minimize the impact of exchange rate
uctuations on foreign-currency-denominated receivables and payables
by utilizing forward exchange contracts, and does not take such risk
that would exert a major impact on the Groups business. However, in
preparing the Groups consolidated nancial statements, the Company
translates the financial results of overseas consolidated subsidiaries
into yen, and changes in exchange rates could affect the consolidated
business results and nancial conditions of the Group.
7. Statutory Regulations
The Company is licensed by the Ministry of Land, Infrastructure,
Transport and Tourism as a provider of type 2 freight use forwarding
services, based on Article 20 of the Freight Use Forwarding Business
Law, and conducts air and ocean freight forwarding operations the
primary business of the YLK Group. While this license has no expiration
date, if and when an event of the Company justifies suspension or
withdrawal of the business as stipulated on Article 33 of the law,
the Companys business could be partially or completely suspended
for a set period or permission to engage in such business could be
withdrawn. As of preparation of this document, the YLK Group has not
encountered any such event, but if and when such situations, including
withdrawal of permission to conduct business, may occur for whatever
reason, they could have a material impact on the Groups business
results and nancial conditions.
In addition, the YLK Group is subject to various statutory regulations
in different parts of the world. Major ones include social regulations
(such as those ensuring safety) and legal regulations associated with
transportation services. In Japan, the Company has obtained approval
and required licenses, including the aforementioned permission
to provide type 2 freight use forwarding services, from the relevant
authorities. If statutory regulations pertaining to such approval and
licenses are amended or if approval and licensing status currently held
are cancelled, the fiscal performance and financial conditions of the
Group could be adversely affected.

Approval and licenses currently held by the Company are listed
below:
Approval and Licensing Designation
Issuing Authority
Requirements for
Approval and Licensing
Validity
Type 2 freight use forwarding services
Minister for Land, Infrastructure, Transport and Tourism
Business license
Open
Air service agency business
Minister for Land, Infrastructure, Transport and Tourism
Application to operate as a business
Open
Customs brokerage services
Director-General of Customers in each jurisdictional area
Business license
Open
General cargo transportation services
Director of District Transport Bureaus in each jurisdictional area Business registration
Open
Warehousing services
Director of District Transport Bureaus in each jurisdictional area Business registration
Open
Medical devices manufacturing business:

packaging, labeling or storage category
Prefectural Governors
Business license
Sept. 26, 2010 to

Sept. 25, 2015
Retail or rental business of specially

controlled medical devices
Prefectural Governors
Business license
June 12, 2007 to

June 11, 2013
8. Relationship with the NYK Group

(1) Role of the Company within the NYK Group
As of March 31, 2011, the NYK Group consisted of Nippon Yusen
Kabushiki Kaisha (NYK), 687 consolidated subsidiaries and 112
companies accounted for by the equity method. These companies
primarily conduct integrated logistics business centered largely on
ocean transportation.
The business of the Company, one of consolidated subsidiaries
of NYK, and its Group companies, centers largely on the use of air
transportation. No other company within the NYK Group conducts
business operations using air transportation in the same manner as
the Company, which is licensed by the Ministry of Land, Infrastructure,
Transport and Tourism as a provider of type 2 freight use forwarding
services.
Moreover, the Company strives to ensure its independence as a
listed company. As such, the Company does not need prior approval
from NYK for its own decision-making.
Business transactions take place under the same conditions as general

transactions, taking market conditions into consideration.
a) Transactions with NYK
The main business relationships between the Company and NYK are
transactions in which NYK consigns the transportation of ocean cargo
to the Company. Business transactions in this scal year amounted
to 594 million.
b) Transactions with other consolidated subsidiaries of NYK
The Companys main business relationships with other companies
in the NYK Group are transactions involving ocean transportation
and related peripheral business, which are consigned to UNI-X
Corporation and 51 other companies. In this fiscal year business
transactions amounted to 7,662 million.
(2) Business relationship with NYK and its consolidated subsidiaries

(excluding the YLK Group)
The Companys main business relationships with NYK and its
consolidated subsidiaries during this fiscal year are as follows.
17
Consolidated Balance Sheets

March 31, 2011 and 2010
Thousands of
U.S. Dollars (Note 1)
Millions of Yen
ASSETS
2011
2010
2011
25,089
16,740
$ 301,733
1,986
1,623
23,886
30,169
29,007
362,831
841
732
10,116
2,993
4,729
35,996
CURRENT ASSETS:
Cash and cash equivalents (Note 11)
Time deposits (Note 11)
Trade notes and accounts receivable (Note 11)
Deferred tax assets-current (Note 9)
Other current assets
Allowance for doubtful accounts
Total current assets
(195)
(141)
(2,349)
60,883
52,690
732,213
6,716
6,856
80,773
17,582
17,851
211,447
Furniture and xtures
4,368
4,255
52,530
Machinery, equipment and vehicles
1,015
1,039
12,210
54
29,686
30,003
357,014
(12,670)
(11,937)
(152,376)
17,016
18,066
204,638
823
990
9,899
2,028
1,992
24,388
Goodwill
52
12
620
Deposits
1,837
1,725
22,090
Deferred tax assetsnon-current (Note 9)
2,254
2,261
27,110
Other assets
3,470
3,707
41,733
PROPERTY, PLANT AND EQUIPMENT:

Land (Note 4)
Buildings and structures (Note 4)
Construction in progress
Total
Accumulated depreciation
Total property, plant and equipment
INVESTMENTS AND OTHER ASSETS:

Investments in securities (Notes 5 and 11)
Investments in unconsolidated subsidiaries and afliate companies
Total investments and other assets

TOTAL
18
10,464
10,687
125,840
88,363
81,443
$1,062,691
Thousands of
Millions of Yen
LIABILITIES AND EQUITY
2011
2010
2011
15,328
14,521
CURRENT LIABILITIES:
Trade notes and accounts payable (Note 11)
Current portion of long-term debt (Notes 6 and 11)
$ 184,337
35
1,063
424
Accrued income taxes (Note 11)
1,046
562
12,585
Accrued bonuses to employees
1,615
1,232
19,427
19
4,512
4,076
54,266
22,538
21,462
271,058
4,537
65
54,561
3,617
3,923
43,491
356
358
4,287
1,728
1,728
20,785
21
Deferred tax liabilities-current (Note 9)

Other current liabilities
Total current liabilities
LONG-TERM LIABILITIES:
Long-term debt (Notes 6 and 11)
Accrued pension and severance costs for:
Employees (Note 7)
Directors and corporate auditors
Provision for alleged Anti-Monopoly Act violation
Negative goodwill
Deferred tax liabilities-non-current (Note 9)
Other long-term liabilities
Total long-term liabilities
75
75
904
150
164
1,803
10,465
6,318
125,852
4,301
4,301
51,726
EQUITY (Notes 8 and 17):

Common stock, no par valueauthorized; 160,000,000 shares in 2011 and 2010,
issued; 42,220,800 shares in 2011 and 2010
Capital surplus
Retained earnings
Treasury stock-at cost; 50,734 shares in 2011 and 50,296 shares in 2010
4,812
4,812
57,866
51,375
47,691
617,855
(69)
(68)
(828)
Accumulated other comprehensive income

Unrealized gain on available-for-sale securities
142
160
1,707
Foreign currency translation adjustments
(7,397)
(5,228)
(88,957)
Total
53,164
51,668
639,369
2,196
1,995
26,412
Minority interests in consolidated subsidiaries

Total equity
TOTAL
55,360
53,663
665,781
88,363
81,443
$1,062,691
See notes to consolidated nancial statements.
19
Consolidated Statements of Income

Years Ended March 31, 2011 and 2010
Thousands of
Millions of Yen
NET SALES
2011
160,788
2010
123,453
2011
$1,933,716
124,514
36,274
92,127
31,326
1,497,460
436,256
31,327
4,947
29,016
2,310
376,757
59,499
COST OF SALES
Gross prot
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Note 14)
Operating income
OTHER INCOME (EXPENSES):
Interest and dividend income
Interest expense
Foreign currency exchange gain-net
Equity in earnings of unconsolidated subsidiaries and afliate companies
Amortization of negative goodwill (Note 16)
Loss on impairment of xed assets (Note 4)
Loss on revaluation of investments in securities
Loss on adoption of accounting standard for asset retirement obligations
Others-net
Other income (expense)-net
INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS
144
(20)
570
304
3
(66)
(155)
(11)
171
940
5,887
164
(31)
528
221
3
(229)
(19)
57
694
3,004
1,739
(241)
6,845
3,659
36
(797)
(1,868)
(137)
2,066
11,303
70,802
INCOME TAXES (Note 9):

Current
Deferred
Total income taxes
1,968
(140)
1,828
1,100
(6)
1,094
23,672
(1,682)
21,990
NET INCOME BEFORE MINORITY INTERESTS
4,059
1,910
48,812
438
365
3,621
1,545
MINORITY INTERESTS IN NET INCOME OF CONSOLIDATED SUBSIDIARIES

NET INCOME
Yen
PER SHARE:
Basic net income per share (Note 17)
Cash dividends
85.85
18.00
5,270
$
43,542
U.S. Dollars
36.63
16.00
$1.032
0.216
Consolidated Statement of Comprehensive Income

Years Ended March 31, 2011
Millions of Yen
NET INCOME BEFORE MINORITY INTERESTS
2011
4,059
Thousands of
2011
$ 48,812
OTHER COMPREHENSIVE INCOME (Note 15):

Unrealized gain (loss) on available-for-sale securities
Share of other comprehensive income in associates
(18)
(217)
(2,233)
(26,852)
(59)
(710)
Total other comprehensive income
(2,310)
(27,779)
COMPREHENSIVE INCOME (Note 15)
1,749
$ 21,033
1,437
$ 17,278
312
3,755
TOTAL COMPREHENSIVE INCOME ATTRITUTABLE TO (Note 15):

Owners of the parent
Minority interests
20
Consolidated Statements of Changes in Equity

Thousands
Millions of Yen
Accumulated other
comprehensive income
Outstanding
Number of
Shares of
Common
Stock
BALANCE, APRIL 1, 2009
Common
Stock
Capital
Surplus
Retained
Earnings
Treasury
Stock
Unrealized
Foreign
Gain (Loss) on
Currency
AvailableTranslation
for-sale
Adjustments
Securities
Minority
Interests in
Consolidated
Subsidiaries
Total
Total
Equity
42,171
4,301
4,812
46,668
(68)
(6,214)
49,501
1,748
51,249
Net income for the year ended March 31,

2010
1,545
1,545
1,545
Cash dividends (16.0 per share)
(675)
(675)
(675)
Purchase of treasury stock
(0)
(0)
(0)
(0)
Disposal of treasury stock
(0)
Adjustment of retained earnings due to

recognition of unrecognized actuarial
differences by a foreign consolidated
subsidiary
59
59
59
Adjustment of retained earnings for newly

consolidated subsidiaries
94
94
94
Net change in the year
158
986
1,144
247
1,391
42,171
4,301
4,812
47,691
(68)
160
(5,228)
51,668
1,995
53,663
Adjustments due to change in the scal

period of consolidated subsidiaries
563
563
563
Net income for the year ended March 31,

2011
3,621
3,621
3,621
BALANCE, MARCH 31, 2010
Cash dividends (17.0 per share)
(716)
(716)
(716)
(1)
(1)
(1)
(1)
Adjustment of retained earnings due to

recognition of unrecognized actuarial
differences by a foreign consolidated
subsidiary
216
216
216
(18)
(2,169)
(2,187)
201
(1,986)
42,170
4,301
4,812
51,375
(69)
142
(7,397)
53,164
2,196
55,360

Thousands of U.S. Dollars (Note 1)

Accumulated other
comprehensive income
Common
Stock
Capital
Surplus
Retained
Earnings
Treasury
Stock
Unrealized
Foreign
Gain (Loss) on
Currency
Available-forTranslation
sale
Adjustments
Securities
Minority
Interests in
Consolidated
Subsidiaries
Total
Total
Equity
$51,726
$57,866
$573,555
$(821)
$1,924
$(62,870)
$621,380
$23,998
$645,378
Adjustments due to change in the scal period of

consolidated subsidiaries
6,774
6,774
6,774
Net income for the year ended March 31, 2011
43,542
43,542
43,542
Cash dividends ($0.204 per share)
(8,622)
(8,622)
(8,622)
(6)
(6)
(6)
Adjustment of retained earnings due to recognition

of unrecognized actuarial differences by a foreign
consolidated subsidiary
2,605
2,605
2,605

(217)
(26,087)
(26,304)
2,414
(23,890)
$51,726
$57,866
$617,855
$(828)
$1,707
$(88,957)
$639,369
$26,412
$665,781
21
Consolidated Statements of Cash Flows

Thousands of
Millions of Yen
OPERATING ACTIVITIES:
Income before income taxes and minority interests
Adjustment for:
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in accrued pension and severance costs
Interest and dividend income
Interest expense
Loss (gain) on foreign currency exchange, net
Equity in earnings of unconsolidated subsidiaries and affiliate companies
Decrease (increase) in trade notes and accounts receivable
Increase (decrease) in trade notes and accounts payable
Loss on sale of property, plant and equipment, net
Loss on impairment of fixed assets
Loss (gain) on sale of investments in securities
Loss on write-down of golf club membership
Loss (gain) on sales of membership
Increase (decrease) in allowance for doubtful accounts
Loss on adoption of accounting standard for asset retirement obligations
Other-net
Total
Interest and dividend received
Interest paid
Fine for alleged Anti-Monopoly Act violation paid
Income taxes paid
Net cash provided by operating activities
INVESTING ACTIVITIES:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of investments in securities
Proceeds from sale of investments in securities
Proceeds from sales of membership
Increase in investments in unconsolidated subsidiaries and affiliate company
Lending of loans receivable
Collection of loans receivable
Payments for transfer of business
Other-net
Net cash used in investing activities
FINANCING ACTIVITIES:
Short-term bank loans, net
Proceeds from long-term loans payable
Repayment of long-term debt
Repayment of obligations under finance lease
Cash dividends paid
Cash dividends paid to minority shareholders
Other-net
Net cash used in financing activities
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS OF NEWLY CONSOLIDATED SUBSIDIARIES,
BEGINNING OF YEAR
INCREASE (DECREASE) IN BEGINNING BALANCE OF CASH AND CASH EQUIVALENTS
DUE TO CHANGES IN FISCAL PERIODS OF CONSOLIDATED SUBSIDIARIES
CASH AND CASH EQUIVALENTS, END OF YEAR
22
2011
2010
2011
5,887
3,004
$ 70,802
1,780
16
72
(145)
20
(17)
(304)
(1,978)
1,302
6
66
(35)
155
3
(5)
(85)
11
366
7,115
149
(29)
(1,560)
5,675
1,743
6
81
(164)
31
(7)
(221)
(5,260)
3,258
13
229
67
19
13
21
450
3,283
177
(49)
(1,728)
(843)
840
21,409
192
868
(1,739)
241
(210)
(3,659)
(23,789)
15,658
68
797
(423)
1,868
36
(56)
(1,020)
137
4,394
85,574
1,788
(354)
(18,760)
68,248
(2,375)
3,096
(1,182)
22
(12)
74
6
(6,204)
7,965
(143)
48
1,295
(3,018)
2,130
(986)
399
(18)
42
(55)
(9,511)
9,241
140
(1,636)
(28,567)
37,238
(14,211)
266
(150)
894
70
(74,616)
95,795
(1,719)
573
15,573
(45)
4,500
(1,000)
(53)
(715)
(120)
(1)
2,566
(1,123)
8,413
16,740
(3)
(500)
(82)
(674)
(108)
(0)
(1,367)
565
(1,598)
18,196
(540)
54,119
(12,026)
(640)
(8,603)
(1,443)
(7)
30,860
(13,505)
101,177
201,326
142
(64)
(770)
25,089
16,740
$301,733
Notes to Consolidated Financial Statements

1. BASIS OF PRESENTING CONSOLIDATED FINANCIAL STATEMENTS

The accompanying consolidated financial statements have been prepared in
accordance with the provisions set forth in the Japanese Companies Act and
Financial Instruments and Exchange Act and their related accounting regulations
and in conformity with accounting principles generally accepted in Japan
("Japanese GAAP"), which are different in certain respects as to application and
disclosure requirements of International Financial Reporting Standards.
Under Japanese GAAP, a consolidated statement of comprehensive income
is required from the fiscal year ended March 31, 2011 and has been presented
herein. Accordingly, accumulated other comprehensive income is presented in the
consolidated balance sheets and the consolidated statements of changes in equity.
Information with respect to other comprehensive income for the year ended March
31, 2010 is disclosed in Note 15. In addition, net income before minority interests
is disclosed in the consolidated statement of income from the year ended March
31, 2011.
In preparing these consolidated nancial statements, certain reclassications

and rearrangements have been made to the consolidated financial statements
issued domestically in order to present them in a form which is more familiar to
readers outside Japan. In addition, certain reclassications have been made in the
2010 nancial statements to conform to the classications used in 2011.
The consolidated financial statements are stated in Japanese yen, the
currency of the country in which Yusen Logistics Co., Ltd. (the "Company") is
incorporated and operates. The translations of Japanese yen amounts into U.S.
dollar amounts are included solely for the convenience of readers outside Japan
and have been made at the rate of 83.15 to $1, the approximate rate of exchange
at March 31, 2011. Such translations should not be construed as representations
that the Japanese yen amounts could be converted into U.S. dollars at that or any
other rate.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Consolidation
The consolidated nancial statements as of March 31, 2011 include the accounts of the Company and its 35 signicant (35 in 2010) subsidiaries (together, the "Group")
listed below:
Consolidated Subsidiaries
Equity
Ownership
Percentage*1
Capital Stock*1
Yusen Logistics (Americas) Inc.*13 *14
100.00%
US$
14,000 thousand
Yusen Logistics (Hong Kong) Limited*13 *14
100.00
HK$
55,000 thousand
Yusen Air & Sea Service (China) Ltd. *13
100.00*5
HK$
11,000 thousand
Yusen Logistics (Singapore) Pte. Ltd.*13 *14
100.00
S$
16,700 thousand
Yusen Logistics (Benelux) B.V. *13 *14
100.00*2
EUR
700 thousand
Yusen Air & Sea Service (Deutschland) GmbH.*13
100.00*2
EUR
4,000 thousand
Yusen Air & Sea Service (U.K.) Ltd.*13
100.00*2
STG
1,050 thousand
Yusen Logistics (Australia) Pty. Ltd.*13 *14
100.00*3
A$
1,500 thousand
Yusen Logistics (Canada) Inc. *13 *14
100.00
C$
5,000 thousand
Yusen Logistics (France) S.A.S.*13 *14
100.00*2
EUR
4,700 thousand
Yusen Logistics (Taiwan) Ltd.*13 *14
100.00*4
NT$
150,000 thousand
Yusen Air & Sea Service (Beijing) Co., Ltd.

Yusen Logistics (Italy) S.P.A.*13 *14
PT. Yusen Air & Sea Service Indonesia*13
75.00*10
RMB
9,312 thousand
100.00*2
EUR
774 thousand
80.00*6
US$
177 thousand
Yusen Logistics (Europe) B.V. *13 *14
100.00
EUR
18,518 thousand
Yusen Logistics (Korea) Co., Ltd.*13 *14
100.00
KRW
2,000 million
*1
*2
Yusen Shenda Air & Sea Service (Shanghai) Ltd.
50.00*9
RMB
16,457 thousand
*3
Yusen Air & Sea Service Management (Thailand) Co., Ltd.*13
49.00*7
THB
10 million
*4
Yusen Air & Sea Service (Thailand) Co., Ltd.*13
100.00*8
THB
100 million
Yusen Air & Sea Service (Vietnam) Co., Ltd.*13
49.00*7
US$
600 thousand
Yusen Air & Sea Service Philippines Inc.*13
51.00
PHP
200,000 thousand
RMB
8,009 thousand
*7
*8
100.00
*5
Yusen Air & Sea Service (India) Pvt.Ltd.
100.00
*11
INR
90 million
Yusen Keihin Trans Co., Ltd.
100.00
36 million
Yusen Logistics (Kitakanto) Co., Ltd.
100.00
50 million
Yusen Air & Sea Service (Guangdong) Ltd.
*5
*6
*9
Yusen Logistics (Tsukuba) Co., Ltd.
100.00
50 million
*10
Yusen Logistics (Shinshu) Co., Ltd.
90.00
50 million
*11
Yusen Logistics (Tohoku) Co., Ltd.
100.00
30 million
Yusen Logistics (Kyushu) Co., Ltd.
100.00
30 million
*12
*13
Yusen Logistics (Chugoku) Co., Ltd.
80.00
30 million
Yusen Logistics (Hokuriku) Co., Ltd.
100.00
20 million
Yusen Logitec Co., Ltd.
100.00
20 million
Yusen Travel Co., Ltd.
100.00
270 million
Ryowa Diamond Air Service Co., Ltd.

Yusen Loginet Co., Ltd.
99.17*12
100.00
50 million
20 million
*14
as of March 31, 2011

owned 100.00% by Yusen Logistics (Europe)
B.V.
owned 80.00% by the Company, 20.00% by
Yusen Logistics (Singapore) Pte. Ltd.
Yusen Logistics (Hong Kong) Limited
owned 100.00% by Yusen Logistics (Hong
Kong) Limited
owned 49.00% by Yusen Air & Sea Service
(Singapore) Pte. Ltd.
owned 51.00% by Yusen Air & Sea Service
Management (Thailand) Co., Ltd., 49.00% by
owned 50.00% by Yusen Logistics (Hong Kong)
Limited
owned 75.00% by Yusen Logistics (Hong Kong)
Limited
owned 100.00% by Yusen Logistics (Singapore)
Pte. Ltd.
owned 99.17% by Yusen Travel Co., Ltd.
These subsidiaries changed their scal year
end from December 31 to March 31 of each
year. The Company included operating results
of these subsidiaries for the 12-month period
ended March 31, 2011 in the consolidated
statements of income, and included their
operating results for the 3-month period
ended March 31, 2010 in the consolidated
statements of changes in equity representing
the effect of changes in the scal year-ends of
these consolidated subsidiaries.
These consolidated subsidiaries changed their
company names after March 31, 2011.
23
Under the control or influence concept, those companies in which the

Company, directly or indirectly, is able to exercise control over operations are
fully consolidated, and those companies over which the Group has the ability to
exercise signicant inuences are accounted for by the equity method.
Investments in three (three in 2010) unconsolidated subsidiaries and
two (two in 2010) afliate companies are accounted for by the equity method.
Investments in the remaining unconsolidated subsidiaries and affiliate
companies are stated at cost, which is determined by the moving-average
method. If the equity method of accounting had been applied to the investments
in these companies, the effect on the accompanying consolidated financial
statements would not be material.
The excess of the cost of an acquisition over the fair value of the net assets
of the acquired subsidiary at the date of acquisition is being amortized over a
period of ve years. The goodwill resulting from the acquisition of the business of
NYK Logistics (Japan) Co., Ltd. is being amortized over a period of three years.
All significant intercompany balances and transactions have been
eliminated in consolidation. All material unrealized profit included in assets
resulting from transactions within the Group is eliminated.
b. Unication for Accounting Policies Applied to Foreign Subsidiaries for the
Consolidated Financial Statements
In May 2006, the Accounting Standards Board of Japan (the ASBJ) issued ASBJ
Practical Issues Task Force (PITF) No.18, Practical Solution on Unification
of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated
Financial Statements. PITF No.18 prescribes: (1) the accounting policies
and procedures applied to a parent company and its subsidiaries for similar
transactions and events under similar circumstances should in principle
be unified for the preparation of the consolidated financial statements, (2)
financial statements prepared by foreign subsidiaries in accordance with
either International Financial Reporting Standards or the generally accepted
accounting principles in the United States of America tentatively may be used
for the consolidation process, (3) however, the following items should be
adjusted in the consolidation process so that net income is accounted for in
accordance with Japanese GAAP unless they are not material: 1) amortization
of goodwill; 2) scheduled amortization of actuarial gain or loss of pensions that
has been directly recorded in the equity; 3) expensing capitalized development
costs of R&D; 4) cancellation of the fair value model accounting for property,
plant, and equipment and investment properties and incorporation of the cost
model accounting; 5) recording the prior years' effects of changes in accounting
policies in the income statement where retrospective adjustments to nancial
statements have been incorporated; and 6) exclusion of minority interests from
net income, if contained.
c. Business Combination
In October 2003, the Business Accounting Council (the BAC) issued a Statement
of Opinion, Accounting for Business Combinations, and in December 2005,
the ASBJ issued ASBJ Statement No.7, Accounting Standard for Business
Divestitures and ASBJ Guidance No.10, Guidance for Accounting Standard for
Business Combinations and Business Divestitures. The accounting standard for
business combinations allowed companies to apply the pooling of interests method
of accounting only when certain specic criteria are met such that the business
combination is essentially regarded as a uniting-of-interests. For business
combinations that did not meet the uniting-of-interests criteria, the business
combination was considered to be an acquisition and the purchase method
of accounting was required. This standard also prescribed the accounting for
combinations of entities under common control and for joint ventures.
In December 2008, the ASBJ issued a revised accounting standard
for business combinations, ASBJ Statement No.21, Accounting Standard
for Business Combinations. Major accounting changes under the revised
accounting standard are as follows: (1) The revised standard requires
accounting for business combinations only by the purchase method. As a result,
the pooling of interests method of accounting is no longer allowed. (2) The
current accounting standard accounts for research and development costs to be
charged to income as incurred. Under the revised standard, in-process research
and development (IPR&D) acquired in the business combination is capitalized as
an intangible asset. (3) The previous accounting standard provided for a bargain
purchase gain (negative goodwill) to be systematically amortized over a period
24
not exceeding 20 years. Under the revised standard, the acquirer recognizes
the bargain purchase gain in prot or loss immediately on the acquisition date
after reassessing and conrming that all of the assets acquired and all of the
liabilities assumed have been identied after a review of the procedures used in
the purchase allocation. This standard was applicable to business combinations
undertaken on or after April 1, 2010. The Company adopted this standard on
April 1, 2010.
d. Cash Equivalents
Cash equivalents are short-term investments that are readily convertible
into cash and that are exposed to insignicant risk of changes in value. Cash
equivalents include time deposits of which mature or become due within three
months of the date of acquisition.
e. Investments in Securities
Securities are classified into three categories, depending on management's
intent: trading, available-for-sale or held-to-maturity. The Company classies
all investments in securities as available-for-sale securities. Marketable
available-for-sale securities are reported at fair value, with unrealized
gains and losses, net of applicable taxes, reported under accumulated other
comprehensive income in a separate component of equity. Non-marketable
available-for-sale securities are stated at cost determined by the movingaverage method. For other than temporary declines in fair value, nonmarketable investment securities are reduced to net realizable value by a
charge to income.
f. Property, Plant and Equipment
Property, plant and equipment are stated at cost. Depreciation of property,
plant and equipment of the Company and domestic consolidated subsidiaries is
computed substantially by the declining-balance method at rates based on the
estimated useful lives of the assets, except for the buildings and structures at
Toyooka distribution center, Iwata distribution center and Yusen Air Fukumoto
building which are depreciated on the straight-line method. The depreciation of
property, plant and equipment of foreign consolidated subsidiaries is generally
computed by the straight-line method over the estimated useful lives of the
assets. The range of useful lives is principally as follows:
Buildings and structures ............................3-60 years
Furniture and xtures ................................2-20 years
Machinery, equipment and vehicles...........4-6 years
g. Other Assets
Amortization of intangible assets included in other assets is computed by the
straight-line method. Software for internal use is amortized over a five-year
period.
h. Long-lived Assets
The Group reviews its long-lived assets for impairment whenever events or
changes in circumstance indicate the carrying amount of an asset or asset
group may not be recoverable. An impairment loss would be recognized
if the carrying amount of an asset or asset group exceeds the sum of the
undiscounted future cash ows expected to result from the continued use and
eventual disposition of the asset or asset group. The impairment loss would be
measured as the amount by which the carrying amount of the asset exceeds its
recoverable amount, which is the higher of the discounted cash ows from the
continued use and eventual disposition of the asset or the net selling price at
disposition.
i. Allowance for Doubtful Accounts
The Group provides an allowance for doubtful accounts based on the aggregated
amount of estimated credit losses for doubtful receivables plus an amount for
receivables other than doubtful receivables calculated using historical write off
experience over a certain period.
j. Accrued Bonuses to Employees
Employees are paid bonuses in June of every year. The bonuses include amounts
for services rendered during the previous fiscal year which are recorded as
accrued bonuses on the balance sheet as of the respective scal year-end.
k. Accrued Pension and Severance Costs

Employee's retirement and pension plansThe Company and certain domestic
consolidated subsidiaries have a non-contributory funded defined benefit
pension plan and an unfunded retirement benet plan. Certain of the Companys
domestic consolidated subsidiaries have a contributory funded defined
contribution pension plan, while certain foreign consolidated subsidiaries have
either a non-contributory funded dened benet pension plan or a contributory
funded dened contribution pension plan.
The liability for employees' retirement benets is accounted for based on
projected benet obligations and plan assets at the balance sheet date.
In July 2008, the ASBJ issued ASBJ Statement No. 19, Partial Amendments
to Accounting Standard for Retirement Benefits (Part 3), which removed the
option of using a discount rate determined by taking into consideration the
fluctuations in yield of bonds over a certain period, as provided in Note 7 of
Interpretive Note to the Accounting Standard for Retirement Benefits. The
yield of a long term safe bond on closing date should be used for the calculation
of the discount rate in this accounting standard. The Company applied the
revised accounting standard effective April 1, 2009, however, there was no effect
from this change.
Retirement allowance for directors and corporate auditorsRetirement allowance
for directors and corporate auditors for certain subsidiaries are recorded to
state the liability at the amount that would be required if all directors and
corporate auditors retired at each balance sheet date.
l. Asset Retirement Obligations
In March 2008, the ASBJ published the accounting standard for asset retirement
obligations, ASBJ Statement No.18 Accounting Standard for Asset Retirement
Obligations and ASBJ Guidance No.21 Guidance on Accounting Standard
for Asset Retirement Obligations. Under this accounting standard, an asset
retirement obligation is dened as a legal obligation imposed either by law or
contract that results from the acquisition, construction, development and the
normal operation of a tangible xed asset and is associated with the retirement
of such tangible xed asset. The asset retirement obligation is recognized as
the sum of the discounted cash ows required for the future asset retirement
and is recorded in the period in which the obligation is incurred if a reasonable
estimate can be made. If a reasonable estimate of the asset retirement
obligation cannot be made in the period the asset retirement obligation is
incurred, the liability should be recognized when a reasonable estimate of asset
retirement obligation can be made. Upon initial recognition of a liability for an
asset retirement obligation, an asset retirement cost is capitalized by increasing
the carrying amount of the related xed asset by the amount of the liability. The
asset retirement cost is subsequently allocated to expense through depreciation
over the remaining useful life of the asset. Over time, the liability is accreted
to its present value each period. Any subsequent revisions to the timing or the
amount of the original estimate of undiscounted cash ows are reected as an
increase or a decrease in the carrying amount of the liability and the capitalized
amount of the related asset retirement cost. This standard was effective for
scal years beginning on or after April 1, 2010.
The Company applied this accounting standard effective April 1, 2010.
The effect of this change was to decrease operating income by 1 million ($ 9
thousand) and income before income taxes and minority interests by 12 million
($ 147 thousand). The asset retirement obligations that the Group recognized
upon applying this standard aggregated 14 million ($ 167 thousand).
m. Provision for alleged Anti-Monopoly Act violation
On March 18, 2009 the Company received the notice of a cease-and-desist
order and a surcharge payment order from the Japan Fair Trade Commission
(the "JFTC") for violations of Article 3 of the Anti-Monopoly Act (prohibition
of unreasonable restraint of trade). In the period that followed, the Company
scrutinized, confirmed and carefully examined the JFTC orders. Determining
that it was unable to accept the orders as a result of these steps, the Company
resolved at an Extraordinary Meeting of the Board of Directors held on April 17,
2009 to le an application for the commencement of hearings with the JFTC and
received the notices of the acceptance of hearings on July 3, 2009. The hearings
were conducted twice during the current fiscal year and still continue as of
the lling date of the consolidated nancial statements. The estimated losses
arising from surcharge payment order were recorded as a provision in the
balance sheet as of March 31, 2011 and 2010.
n. Leases
In March 2007, the ASBJ issued ASBJ Statement No. 13, Accounting Standard
for Lease Transactions, which revised the previous accounting standard for
lease transactions issued in June 1993. The revised accounting standard for lease
transactions was effective for scal years beginning on or after April 1, 2008.
Under the previous accounting standard, nance leases that were deemed
to transfer ownership of the leased property to the lessee were capitalized.
However, other nance leases were permitted to be accounted for as operating
lease transactions if certain as if capitalized information was disclosed in
the note to the lessees nancial statements. The revised accounting standard
requires that all finance lease transactions be capitalized to recognize lease
assets and lease obligations in the balance sheet. In addition, the accounting
standard permits leases which existed at the transition date and do not transfer
ownership of the leased property to the lessee to continue to be accounted for
as operating lease transactions.
The Company applied the revised accounting standard effective April 1,
2008. In addition, the Company continues to account for leases which existed at
the transition date and do not transfer ownership of the leased property to the
lessee as operating lease transactions.
All other leases are accounted for as operating leases.
o. Income Taxes
The provision for income taxes is computed based on the pretax income included
in the consolidated statement of income. The asset and liability approach is
used to recognize deferred tax assets and liabilities for the expected future tax
consequences of temporary differences between the carrying amounts and the
tax bases of assets and liabilities. Deferred taxes are measured by applying
currently enacted tax laws to the temporary differences.
p. Accounting for the Consumption Tax
In Japan, the consumption tax is imposed at a at rate of 5% on all domestic
consumption of goods and services (with certain exemptions). The consumption
tax imposed on the Group's domestic sales to customers is withheld by the
Group at the time of sale and is subsequently paid to the national government.
The consumption tax withheld upon sale and the consumption tax paid by the
Group on the purchases of goods and services are not included in the related
amounts in the accompanying consolidated statements of income.
q. Appropriation of Retained Earnings
Appropriations of retained earnings are reected in the nancial statements for
the following year upon shareholders' approval.
r. Treasury Stock
Under the Japanese Companies Act, the Company is allowed to acquire its own
shares to the extent that the aggregate cost of treasury stock does not exceed
the maximum amount available for dividends. Treasury stock is stated at cost
in the equity of the accompanying consolidated balance sheets. Net gain on
disposal of treasury stock is presented under "Capital surplus'' in the equity of
the accompanying consolidated balance sheets.
s. Foreign Currency Transactions
All short-term and long-term monetary receivables and payables denominated
in foreign currencies are translated into Japanese yen at the exchange rates at
the balance sheet date. The foreign exchange gains and losses from translation
are recognized in the consolidated statement of income.
t. Foreign Currency Financial Statements
The balance sheet accounts of foreign consolidated subsidiaries, and foreign
subsidiaries accounted for by the equity method are translated into Japanese
yen at the current exchange rate as of the balance sheet date except for equity,
which is translated at historical rate. Differences arising from such translations
are shown as "Foreign currency translation adjustments" under accumulated
25
other comprehensive income in a separate component of equity.

Revenue and expense accounts of foreign consolidated subsidiaries are
translated into Japanese yen at the average exchange rates.
u. Derivatives
The Group uses derivative nancial instruments to manage their exposures to
uctuations in foreign exchange and interest rates. Foreign exchange forward
contracts are utilized by the Group. The Group does not enter into derivatives
for trading or speculative purposes.
Derivative financial instruments and foreign currency transactions are
classified and accounted for as follows: (a) all derivatives are recognized as
either assets or liabilities and measured at fair value, and gains or losses on
derivative transactions are recognized in the consolidated statement of income
and (b) for derivatives used for hedging purposes, if derivatives qualify for hedge
accounting because of high correlation and effectiveness between the hedging
instruments and the hedged items, gains or losses on derivatives are deferred
until maturity of the hedged transactions.
The foreign exchange forward contracts employed to hedge foreign
exchange exposures in the Group's operating activities measured at the fair
value and the unrealized gains/losses are recognized in income.
v. Per Share Information
Net assets per share is computed based on the outstanding shares of common
stock at relevant balance sheet dates.
Basic net income per share is computed by dividing net income available
to shareholders by the weighted-average number of shares of common stock
outstanding for the period.
Diluted net income per share for the years ended March 31, 2011 and 2010
is not presented since the Company had no securities with dilutive effect.
Cash dividends per share presented in the accompanying consolidated
statements of income are dividends applicable to the respective years including
dividends to be paid after the end of the year.
w. New Accounting Pronouncements
Accounting Changes and Error CorrectionsIn December 2009, ASBJ issued
ASBJ Statement No. 24 Accounting Standard for Accounting Changes and Error
Corrections and ASBJ Guidance No. 24 Guidance on Accounting Standard for
Accounting Changes and Error Corrections. Accounting treatments under this
standard and guidance are as follows:
(1) Changes in Accounting Policies - When a new accounting policy is
applied with revision of accounting standards, the new policy is applied
retrospectively unless the revised accounting standards include specific
transitional provisions. When the revised accounting standards include
specific transitional provisions, an entity shall comply with the specific
transitional provisions.
(2) Changes in Presentations - When the presentation of financial statements
is changed, prior period financial statements are reclassified in accordance
with the new presentation.
(3) Changes in Accounting Estimates - A change in an accounting estimate is
accounted for in the period of the change if the change affects that period
only, and is accounted for prospectively if the change affects both the period
of the change and future periods.
(4) Corrections of Prior Period Errors - When an error in prior period financial
statements is discovered, those statements are restated.
This accounting standard and the guidance are applicable to accounting
changes and corrections of prior period errors which are made from the
beginning of the fiscal year that begins on or after April 1, 2011.
26
3. BUSINESS COMBINATION
On October 1, 2010, the Company acquired certain of the net assets of NYK
Logistics (Japan) Co., Ltd. (NLJ) as well as NLJs operations related to
international ocean freight forwarding, related agency services, container
consolidation, and other services.
The Company and Nippon Yusen Kabushiki Kaisha (NYK LINE) have agreed
to integrate their logistics businesses with the purpose of establishing a firm
position as a world-class logistics service provider through the reorganization and
optimization of their logistics business units. This acquisition was an integration of
their domestic logistics businesses as a part of the overall integration.
The results of operations of NLJ are included in the Groups consolidated
nancial statements of income from the date of acquisition.
In accordance with the ASBJ Statement No.21, Accounting Standard for
Business Combinations and ASBJ Guidance No.10, Guidance on Accounting
Standard for Business Combinations and Accounting Standard for Business
Divestitures, this acquisition was accounted as an acquisition with cash
consideration of a business under common control.
The aggregate acquisition cost was 143 million ($ 1,719 thousand) in cash in
accordance with the Business Transfer Agreement. Goodwill of 59 million ($702
thousand) which represents the expected excess earnings power in the future
from the business integration is reported within the Japan segment. The amount
of the goodwill is net of taxes and is subject to amortization using the straightline method over a period of three years.
The proforma information giving effect as if the combination had been
completed at the beginning of the current scal year is not presented due to minor
effect on the consolidated statements of income.
4. LONG-LIVED ASSETS
The Group reviewed its long-lived assets for impairment as of the year ended
March 31, 2011 and 2010. Due to a signicant decline in market value of certain
xed assets which were planned to be disposed by sale, the Group recognized an
impairment loss of 66 million ($797 thousand) and 229 million as other expense
for the years ended March 31, 2011 and 2010 respectively. The impairment loss
of 66 million for the year ended March 31, 2011 was recorded on idle assets in
Osaka. The impairment loss for the year ended March 31, 2010 consisted of 136
million on certain land, building and structure in Aichi and 93 million on idle
assets in Osaka. The carrying amounts of the relevant assets were written down to
the recoverable amounts. The recoverable amounts of those assets planned to be
disposed by sale were measured at their net selling price determined by quotation
from a third-party vendor.
5. INVESTMENTS IN SECURITIES
The cost and aggregate fair values of the investments classied as "available-for-sale securities" at March 31, 2011 and 2010 are as follows:
(1) Available-for-sale securities for which market quotations are available:
Millions of Yen
Securities for which market value exceeds costEquity securities

Government bonds
Securities for which market value does not exceed costEquity securities
Total
2011
2010
2011
Cost
Fair Value
(Carrying
Amount)
Difference
Cost
Fair Value
(Carrying
Amount)
Difference
Cost
Fair Value
(Carrying
Amount)
Difference
264
41
447
42
183
1
304
59
582
60
278
1
$3,174
495
$5,372
503
$2,198
8
105
410
90
579
(15)
169
74
437
70
712
(4)
275
1,262
$4,931
1,089
$6,964
(173)
$2,033
(2) Proceeds from sale of available-for-sale securities and total amounts of gain and loss on sale of available-for-sale securities:
Millions of Yen
2011
74
39
4
Proceeds from sale of available-for-sale securities

Total amount of gain on sale of available-for-sale securities
Total amount of loss on sale of available-for-sale securities
2010
41
14
81
2011
$894
472
49
(3) The impairment losses of securities for the year ended March 31, 2011 amounted to 155 million ($ 1,868 thousand) which consists of 16 million ($ 188 thousand) for
available-for-sale securities and 139 million ($ 1,680 thousand) for the securities of non-consolidated subsidiaries.
The impairment losses of securities for the year ended March 31, 2010 was 19 million, which was for available-for-sale securities.
6. SHORT-TERM BANK LOANS AND LONG-TERM DEBT

There were no short term bank loan at March 31, 2011 and 2010.
Long-term debt at March 31, 2011 and 2010 consisted of the following:
Millions of Yen
Thousands of
U.S. Dollars
2011
2010
2011
Unsecured loans from banks and other

financial institutions, due serially to
2016 with average interest rates of
0.50% (2011) and 1.08% (2010)
4,500
1,000
$54,119
Finance lease obligation

Total
Less current portion
Long-term debt, less current portion
72
4,572
(35)
4,537
128
1,128
(1,063)
65
866
54,985
(424)
$54,561
Annual maturities of long-term debt including nancial lease obligation at March

31, 2011, were as follows:
Year Ending March 31
Millions of Yen
2012
2013
2014
2015
2016 and thereafter
Total
35
18
11
2,504
2,004
4,572
Thousands of
U.S. Dollars
424
212
137
30,118
24,094
$54,985
As is customary in Japan, the Company maintains substantial deposit balances with banks with which it has borrowings. Such deposit balances are not legally or
contractually restricted as to withdrawal.
General agreements with respective banks provide, as is customary in Japan, that additional collateral must be provided under certain circumstances if requested by
such banks and that certain banks have the right to offset cash deposited with them against any long-term or short-term debt or obligation that becomes due and, in case
of default and certain other specied events, against all other debt payable to the banks. The Company has never been requested to provide any additional collateral.
7. RETIREMENT AND PENSION PLANS

The Company and certain consolidated subsidiaries have severance payment plans
for employees, directors and corporate auditors. Under most circumstances,
employees terminating their employment are entitled to retirement benefits
determined based on the rate of pay at the time of termination, years of service
and certain other factors. Such retirement benefits are made in the form of a
lump-sum severance payment from the Company or from certain consolidated
subsidiaries and annuity payments from a trustee. Employees are entitled to
larger payments if the termination is involuntary, by retirement at the mandatory
retirement age, by death, or by voluntary retirement at certain specic ages prior
to the mandatory retirement age.
Accrued pension and severance costs for employees at March 31, 2011 and 2010
consisted of the following:
Millions of Yen
Projected benefit obligation

Fair value of plan assets
Unrecognized actuarial gain
Prepaid pension cost
Accrued pension and severance
costs for employees
Thousands of
U.S. Dollars
2011
10,492
(6,101)
(1,037)
263
2010
10,601
(5,931)
(1,075)
328
2011
$126,184
(73,379)
(12,473)
3,159
3,617
3,923
$ 43,491
27
The components of net periodic benet costs for the years ended March 31, 2011
and 2010 are as follows:
Thousands of
U.S. Dollars
Millions of Yen
Service cost
Interest cost
Expected return on plan assets
Amortization of unrecognized
actuarial loss
Past service cost
Total
2011
593
261
(215)
2010
608
269
(193)
2011
$7,130
3,137
(2,577)
208
259
2,500
(30)
817
0
943
(366)
$9,824
Assumptions used for the years ended March 31, 2011 and 2010 are set forth as
follows:
2011
Principally 2.0%
2010
Principally 2.0%
Principally 3.0%
Principally 3.0%
Recognition period of actuarial

gain/loss
Principally 10 years
Principally 10 years
Amortization period of prior

service cost
1 year
1 year
Discount rate
Expected rate of return on
plan assets
8. EQUITY
Japanese companies are subject to the Companies Act of Japan (the "Companies
Act"). The significant provisions in the Companies Act that affect financial and
accounting matters are summarized below:
a. Dividends
Under the Companies Act, companies can pay dividends at any time during the
scal year in addition to the year-end dividend upon resolution at the shareholders
meeting. For companies that meet certain criteria such as; (1) having the Board
of Directors, (2) having independent auditors, (3) having the Board of Corporate
Auditors, and (4) the term of service of the directors is prescribed as one year
rather than two years of normal term by its articles of incorporation, the Board of
Directors may declare dividends (except for dividends in kind) at any time during
the scal year if the company has prescribed so in its articles of incorporation.
The Company meets all the above criteria.
Semiannual interim dividends may also be paid once a year upon resolution
by the Board of Directors if the articles of incorporation of the company so
stipulate. The Companies Act provides certain limitations on the amounts
available for dividends or the purchase of treasury stock. The limitation is dened
as the amount available for distribution to the shareholders, but the amount of net
assets after dividends must be maintained at no less than 3 million.
be appropriated as a legal reserve (a component of retained earnings) or as

additional paid-in capital (a component of capital surplus) depending on the equity
account charged upon the payment of such dividends until the total of aggregate
amount of legal reserve and additional paid-in capital equals 25% of the common
stock. Under the Companies Act, the total amount of additional paid-in capital
and legal reserve may be reversed without limitation. The Companies Act also
provides that common stock, legal reserve, additional paid-in capital, other capital
surplus and retained earnings can be transferred among the accounts under
certain conditions upon resolution of the shareholders.
c. Treasury Stock and Treasury Stock Acquisition Rights
The Companies Act also provides for companies to purchase treasury stock
and dispose of such treasury stock by resolution of the Board of Directors. The
amount of treasury stock purchased cannot exceed the amount available for
distribution to the shareholders which is determined by specic formula.
Under the Companies Act, stock acquisition rights are presented as a
separate component of equity.
The Companies Act also provides that companies can purchase both treasury
stock acquisition rights and treasury stock. Such treasury stock acquisition rights
are presented as a separate component of equity or deducted directly from stock
acquisition rights.
b. Increases/Decreases and Transfer of Common Stock, Reserve and Surplus

The Companies Act requires that an amount equal to 10% of dividends must
9. INCOME TAXES
The Company and domestic consolidated subsidiaries are subject to Japanese national and local income taxes which, in the aggregate, resulted in a normal effective
statutory rate of approximately 40.4% for the years ended March 31, 2011 and 2010.
The tax effects of signicant temporary differences resulted in deferred tax assets and liabilities at March 31, 2011 and 2010 are as follows:
Millions of Yen
2011
Deferred tax assets:
Accrued pension and severance costs for employees
Accrued bonuses to employees
Accrued enterprise tax
Accrued pension and severance costs for directors and corporate auditors
Allowance for doubtful accounts
Depreciation
Tax loss carryforward
Loss on impairment of xed assets
Loss on write-down of golf club membership
Others
Total
Less valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Depreciation
Prepaid pension expenses
Others
Total deferred tax liabilities
Net deferred tax assets
28
2010
2011
1,348
665
67
138
159
366
30
473
126
131
185
3,688
(475)
3,213
1,440
526
51
144
197
339
41
446
124
138
240
3,686
(519)
3,167
$16,213
7,998
804
1,664
1,916
4,407
363
5,687
1,518
1,571
2,220
44,361
(5,711)
38,650
77
46
72
195
3,018
79
39
139
257
2,910
929
549
869
2,347
$36,303
The reconciliation of the difference between the normal effective tax rate and the actual effective tax rate reected in the accompanying consolidated statements of income
for the years ended March 31, 2011 and 2010 is as follows:
Normal effective tax rate
Adjustments:
Entertainment expenses and other non-deductible permanent differences
Dividend income not taxable
Effective of elimination of intercompany dividends received
Per capital levy of local tax
Lower income tax rates applicable to income in certain foreign countries
Valuation allowance on deferred tax
Foreign tax credits
Equity in earnings of afliated companies and unconsolidated companies
Other-net
Actual effective tax rate
2011
40.4%
2010
40.4%
2.3
(8.1)
8.5
1.0
(11.1)
0.1
(0.7)
(2.1)
0.7
31.0%
2.2
(1.6)
1.8
2.0
(7.1)
2.7
(1.4)
(3.0)
0.4
36.4%
10. LEASES
The Group has various lease agreements whereby the Group acts as lessee.
lessee and whose lease inception was before March 31, 2008 to continue to
be accounted for as operating lease transactions if certain as if capitalized
information is disclosed in the note to the nancial statements. The Company
applied the ASBJ Statement No.13 effective April 1, 2008 and accounted for such
leases as operating lease transactions. Pro forma information of leased property
whose lease inception was before March 31, 2008 was as follows:
Pro forma information of leased property whose lease inception was before March 31, 2008
ASBJ Statement No.13, Accounting Standard for Lease Transactions requires
that all finance lease transactions be capitalized to recognize lease assets
and lease obligations in the balance sheet. However, the ASBJ Statement No.
13 permits leases without ownership transfer of the leased property to the
(1) Acquisition cost, accumulated depreciation:
Millions of Yen
2011
Machinery,
Equipment
and Vehicles
Acquisition cost
Accumulated depreciation
Net leased property
Furniture and
Fixtures
55
(48)
7
2010
Machinery,
Equipment
and Vehicles
Total
5
(5)
0
60
(53)
7
61
(46)
15
2011
Furniture and
Fixtures
5
(4)
1
Total
66
(50)
16
Machinery,
Equipment
and Vehicles
$666
(578)
$ 88
Furniture and
Fixtures
$59
(57)
$ 2
Total
$725
(635)
$ 90
(2) Obligations under nance leases:

Millions of Yen
Due within one year

Due over one year
Total
2011
5
2
7
2010
13
3
16
2011
$63
28
$91
The amount of obligations under finance leases includes the imputed interest expense portion. Depreciation expense which was not reflected in the
consolidated statements of income, computed by the straight-line method over the lease term was 8 million ($93 thousand) and 13 million for the years
ended March 31, 2011 and 2010, respectively.
The minimum rental commitments under non-cancelable operating leases at March 31, 2011 and 2010 were as follow:
Millions of Yen
Due within one year

Due over one year
Total
2011
1,501
3,788
5,289
2010
1,696
4,902
6,598
2011
$18,059
45,554
$63,613
11. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES

In March, 2008, the ASBJ revised ASBJ Statement No.10 Accounting Standard for
Financial Instruments and issued ASBJ Guidance No.19 Guidance on Accounting
Standard for Financial Instruments and Related Disclosures. This accounting standard
and the guidance was applicable to nancial instruments and related disclosures at the
end of the scal years ending on or after March 31, 2010. The Group applied the revised
accounting standard and the new guidance effective March 31, 2010.
(1) Group policy for nancial instruments
The Group limits the use of nancial instruments for fund management purposes
to short term bank deposits. The Group also makes it the basic policy to use the
cash management system operated within the Group and bank loans to fund its
ongoing operations. Derivatives are used, not for speculative purposes, but to
manage exposure to nancial risks as described in (2) below.
(2) Nature and extent of risks arising from nancial instruments
Receivables such as trade notes and trade accounts are exposed to customer credit
risk. Although receivables in foreign currencies are exposed to the market risk of
uctuation in foreign currency exchange rates, the position, net of payables in foreign
29
currencies, is hedged by using forward foreign currency contracts. Investment

securities, mainly equity securities of customers and suppliers of the Group, are
exposed to the risk of market price uctuations.
Payment terms of payables, such as trade notes and trade accounts, are less
than one year. Although payables in foreign currencies are exposed to the market risk
of uctuation in foreign currency exchange rates, those risks are netted against the
balance of receivables denominated in the same foreign currency as noted above.
Loans, principally from financial institutions, in long-term debt are mainly for
nancing related to business integration and investment in property.
Derivatives, which are forward foreign currency contracts, are used to manage
exposure to market risks from changes in foreign currency exchange rates of
receivables and payables. Please see Note 12 for more detail about derivatives.
resulting from fluctuations in foreign currency exchange rates. Such foreign

exchange risk is hedged principally by forward foreign currency contracts. In
addition, when foreign currency trade receivables and payables are expected from
forecasted transaction, forward foreign currency contract may be used under the
limited contract term of quarter year.
Investment securities are managed by monitoring market values and nancial
position of issuers on a regular basis.
The execution and management of derivative transactions are approved by
CFO or the board of directors according to the internal guidelines which prescribe
the authority and the limit for each transaction. Counterparties to these derivative
transactions are limited to major nancial institutions in order to mitigate credit
risks.
(3) Risk management for nancial instruments

Credit Risk Management
Credit risk is the risk of economic loss arising from a counterparty's failure to
repay or service debt according to the contractual terms. The Group manages
its credit risk from receivables on the basis of internal guidelines, which include
monitoring of payment term and balances of major customers by each business
administration department to identify the default risk of customers in early stage.
The maximum credit risk exposure of financial assets is limited to their
carrying amounts as of March 31, 2011.
Liquidity risk management

Liquidity risk comprises the risk that the Group cannot meet its contractual
obligations in full on maturity dates. The Group manages its liquidity risk by
holding adequate volumes of liquid assets, along with adequate nancial planning
by the corporate treasury department.
Market risk management (foreign exchange risk and interest rate risk)
Foreign currency trade receivables and payables are exposed to market risk
(4) Fair values of nancial instruments

Fair values of nancial instruments are based on quoted price in active markets.
If quoted price is not available, other rational valuation techniques are used
instead. As the valuation needs various assumptions, the fair values of nancial
instruments are subject to change when different assumptions are used. Also
please see Note 12 for the detail of fair value for derivatives.
(a) Fair value of nancial instruments

Millions of Yen
March 31, 2011

Cash and cash equivalents
Time deposits
Trade notes and accounts receivable
Investments in securities
available-for-sale securities
Total
Trade notes and accounts payable
Current portion of long-term debt
Accrued income taxes
Long-term debt
Total
Carrying amount
25,089
1,986
30,169
Fair value
Unrealized gain/loss
25,089
1,986
30,169
579
579
57,823
15,328
35
1,046
4,537
20,946
57,823
15,328
35
1,046
4,537
20,946
Millions of Yen
March 31, 2010

Time deposits
Total
Long-term debt
Total
Carrying amount
16,740
1,623
29,007
Fair value
16,740
1,623
29,007
712
712
48,082
14,521
1,063
562
65
16,211
48,082
14,521
1,063
562
65
16,211
Thousands of U.S.Dollars
March 31, 2011

Time deposits
Total
Long-term debt
Total
30
Carrying amount
Fair value
$301,733
23,886
362,831
$301,733
23,886
362,831
6,964
6,964
$695,414
$184,337
424
12,585
54,561
$251,907
$695,414
$184,337
424
12,585
54,561
$251,907
Current assets and liabilities

The fair value of all current assets and liabilities (cash and cash equivalents, time
deposit, trade notes and accounts receivable, trade notes and accounts payable,
current portion of long-term debt, and accrued income taxes) is considered to be
equivalent to their carrying amount due to their short- term maturities.
Investments in securities (available-for-sale securities)
The fair values of investments in securities are measured at the quoted market
price of the stock exchange of the equity instruments, and at the quotes obtained
from the nancial institution for certain debt instruments.
All investments in securities are classied as available-for-sale securities.
The information of the fair values of investments in securities is included in Note 5.
Long-term debt
-Long-term loans payable
The fair value of long-term debt on floating rates approximates carrying
amount due to the oating rate determined by the market interest rate in the
short term.
- Lease obligations
The fair value of lease obligations approximates carrying amount.
Derivatives
The information of the fair value for derivatives is included in Note 12.
(b) Financial instruments whose fair value cannot be reliably determined

Carrying Amount
Millions of Yen
March 31, 2011
2011
244
Investments in equity instruments that do not have a quoted market price in an active market
2010
279
2011
$2,934
(5) Maturity analysis for nancial assets and securities with contractual maturities
Millions of Yen
March 31, 2011
Due in one year or less

Time deposits
Available-for-sale securities with contractual maturities
Total
Due after one year

through ve years
Due after ve years

through ten years
Due after ten years
25,089
1,986
30,169
57,244
42
42
March 31, 2011
Due in one year or less

Time deposits
Available-for-sale securities with contractual maturities
Total
Due after one year

through ve years
Due after ve years

through ten years
Due after ten years
$301,733
23,886
362,831
$688,450
$503
$503
12. DERIVATIVES
The Group enters into foreign exchange forward contracts to reduce the exposure to uctuations in interest rates risks and foreign exchange rates associated with certain
assets and liabilities denominated in foreign currencies.
All derivative transactions are entered into to hedge interest and foreign currency exposures incorporated within its business. Accordingly, market risk in these
derivatives is basically offset by opposite movements in the value of hedged assets or liabilities.
Because the counterparties to these derivatives are limited to major international nancial institutions, the Group does not anticipate any losses arising from credit risk.
Derivative transactions entered into by the Group have been made in accordance with internal policies which regulate their authorization.
The Group had the following derivatives contracts outstanding at March 31, 2011 and 2010:
Derivative transactions to which hedge accounting is not applied.
Millions of Yen
2011
Contracts Outstanding
Due Within One Year
Foreign currency forward contracts:

Selling U.S. dollar
Buying U.S. dollar
Buying Swiss franc
Buying Hong Kong dollar
Buying Thai baht
Buying euro
Buying Swedish kronor
Buying Canadian dollar
8
319
162
69
657
460
2010
Unrealized
Gain (Loss)
(0)
2
(2)
(0)
16
12
Due Within One Year
185
391
36
178
19
322
3
11
2011
Unrealized
Gain (Loss)
(0)
7
1
(2)
1
(6)
(0)
0
Due Within One Year
98
3,835
1,946
832
7,907
5,523
Unrealized
Gain (Loss)
(2)
28
(20)
(7)
197
145
31
The contract or notional amounts of derivatives which are shown in the above table do not represent the amounts exchanged by the parties and do not measure the Group's
exposure to credit or market risk.
Derivative transactions to which hedge accounting is applied.
There is no derivative transactions to which hedge accounting was applied for the year ended March 31, 2011 and 2010.
13. COMMITMENTS AND CONTINGENT LIABILITIES

The Group was contingently liable for guarantees of trade payables and bank loans owed by their unconsolidated subsidiaries, afliate companies and a third party company
in the amount of 36 million ($438 thousand) and 46 million at March 31, 2011 and 2010, respectively.
14. BREAKDOWN OF SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, general and administrative expenses for the years ended March 31, 2011 and 2010 are summarized as follows:
Millions of Yen
Labor and payroll cost

Provision for accrued bonuses to employees
Provision for accrued pension and severance costs for:
Employees
Directors and corporate auditors
Provision for doubtful accounts
Depreciation
Other
Total
2011
2010
14,059
1,319
13,406
953
$169,082
15,866
2011
706
112
79
1,223
13,829
31,327
806
101
61
1,112
12,577
29,016
8,490
1,346
951
14,712
166,310
$376,757
15. COMPREHENSIVE INCOME

For the year ended March 31, 2010
Total comprehensive income for the year ended March 31, 2010 was the following:
Other comprehensive income for the year ended March 31, 2010 consisted of the
following:
Millions of Yen
Millions of Yen
2010
Total comprehensive income attributable to:
Owners of the parent
Minority interests
Total comprehensive income
2,688
411
3,099
2010
Other comprehensive income:
Unrealized gain (loss) on available-for-sale securities
Share of other comprehensive income in associates
Total other comprehensive income
158
991
40
1,189
16. SEGMENT INFORMATION

For the year ended March 31, 2011 and 2010
In March 2008, the ASBJ revised ASBJ Statement No.17 Accounting Standard for Segment Information Disclosures and issued ASBJ Guidance No.20 Guidance on
Accounting Standard for Segment Information Disclosures. Under the standard and guidance, an entity is required to report nancial and descriptive information about
its reportable segments. Reportable segments are operating segments or aggregations of operating segments that meet specied criteria. Operating segments are
components of an entity about which separate nancial information is available and such information is evaluated regularly by the chief operating decision maker in
deciding how to allocate resources and in assessing performance. Generally, segment information is required to be reported on the same basis as is used internally for
evaluating operating segment performance and deciding how to allocate resources to operating segments. This accounting standard and the guidance are applicable to
segment information disclosures for the scal years beginning on or after April 1, 2010.
The segment information for the year ended March 31, 2010 under the revised accounting standard is also disclosed hereunder as required.
1. Description of reportable segments
The Group's reportable segments are those for which separate nancial information is available and regular evaluation by the Company's management is being performed
in order to decide how resources are allocated among the Group. The Group mainly provides global logistics services. In order to provide its services over large region,
the regional headquarters which are located in Japan, USA, Netherlands, Hong Kong, and Singapore control the group companies in Japan, Americas, Europe, East Asia,
and South Asia and Oceania, respectively. Thus, the Group's reportable operating segments are based on geographical service providing structures, which consist of ve
regions: Japan, Americas, Europe, East Asia and South Asia and Oceania.
32
2. Methods of measurement for the amounts of sales, prot (loss), assets, liabilities and other items for each reportable segment
The accounting policies of each reportable segment are consistent with those disclosed in Note 2, Summary of Signicant Accounting Policies.
Information about sales, prot (loss), assets, liabilities and other items is as follows.
Millions of Yen
2011
Reportable Segment
Japan
Sales
Sales to external customers
Total
Segment prot
Segment assets
Other:
Depreciation
Amortizations of goodwill
Investments in unconsolidated subsidiaries and
afliate companies accounted for by the equity
method *1
Increase in property, plant and equipment and
intangible assets
Americas
Europe
South Asia and

Oceania
East Asia
Reconciliation
Total
(2,787)
(2,787)
(15)
(3,532)
Consolidated
Total
77,424
211
77,635
333
45,589
12,843
628
13,471
749
7 ,264
14,200
822
15,022
527
11,178
30,768
937
31,705
2,001
15,826
25,553
189
25,742
1,352
12,038
160,788
2,787
163,575
4,962
91,895
160,788
160,788
4,947
88,363
1,102
10
119
152
98
309
5
1,780
15
1,780
19
502
502
730
1,232
869
56
64
104
185
1,278
1,278
Reconciliation
Consolidated
Total
Millions of Yen
2010
Reportable Segment
Japan
Sales
Total
Segment prot
Segment assets
Other:
Depreciation
method *1
intangible assets
Americas
Europe
South Asia and

Oceania
East Asia
Total
61,047
180
61,227
944
45,324
10,198
584
10,782
(5)
8,149
11,219
669
11,888
(472)
9,988
21,813
502
22,315
651
15,107
19,176
156
19,332
1,198
10,779
123,453
2,091
125,544
2,316
89,347
(2,091)
(2,091)
(6)
(7,904)
123,453
123,453
2,310
81,443
1,019
0
136
183
108
297
5
1,743
5
1,743
9
502
502
494
996
706
29
42
50
143
970
970
Reconciliation
Consolidated
Total
2011
Reportable Segment
Japan
Sales
Total
Segment prot
Segment assets
Other:
Depreciation
method *1
intangible assets
Americas
Europe
East Asia
South Asia and

Oceania
Total
$931,138
2,538
933,676
$ 4,007
$548,273
$154,460
7,553
162,013
$ 9,007
$ 87,360
$170,775
9,884
180,659
$ 6,341
$134,433
$ 370,028
11,274
381,302
$ 24,063
$190,329
$307,315
2,265
309,580
$ 16,257
$144,781
$1,933,716
33,514
1,967,230
$ 59,675
$1,105,176
(33,514)
(33,514)
$ (176)
$(42,485)
$1,933,716
1,933,716
$ 59,499
$1,062,691
13,257
118
1,435
1,826
1,175
3,716
66
21,409
184
43
21,409
227
6,031
6,031
8,785
14,816
10,457
668
775
1,255
2,220
15,375
15,375
NOTES: 1. The breakdown for the reconciliation in each item for the year ended March 31, 2011 and 2010 are as follows:
Millions of Yen
Sales:
Elimination of inter-segment transactions
Total
2011
2010
(2,787)
(2,787)
(2,091)
(2,091)
2011
$(33,514)
$(33,514)
33
Millions of Yen
2011
Segment prot:
Elimination of inter-segment transactions
Others
Total
2010
(11)
(4)
0
(15)
2011
(2)
(4)
0
(6)
$ (135)
(43)
2
$ (176)
Millions of Yen
2011
Segment asset:
Elimination of inter-segment receivables and payables
Elimination of inter-segment investments and equity accounts
Common assets *2
Others
Total
2010
(5,477)
(6,693)
8,726
(88)
(3,532)
2011
(3,772)
(6,925)
2,882
(89)
(7,904)
$ (65,874)
(80,490)
104,942
(1,063)
$ (42,485)
*1: The reconciliation column for investments in unconsolidated subsidiaries and afliate companies accounted for by the equity method contains the investments which are not attributable to
any reportable segments.
*2: The common assets mainly consisted of cash and deposits and investment securities.
2. Segment prot is reconciled to operating income in the consolidated statements of income.

(1) Industry Segments
The Group operates principally in the following three industry segments:
(1) Air and sea cargo
(2) Travel
(3) Other
The segment information of the Group in respect to the years ended March 31, 2010, classied by industry segments is presented below:
Millions of Yen
2010
Industry Segment
Air and Sea Cargo
a. Net sales and operating income

Net sales:
Net sales to outside customers
Total sales
Operating expenses
Operating income
b. Assets, depreciation and capital expenditures
Assets
Depreciation
Capital expenditures
Travel
Other
Elimination/
Corporate
Total
Consolidated
Total
120,181
120,181
118,198
1,983
3,160
3,160
3,018
142
112
1,355
1,467
1,281
186
123,453
1,355
124,808
122,497
2,311
(1,355)
(1,355)
(1,354)
(1)
123,453
123,453
121,143
2,310
72,592
1,577
925
5,770
47
41
6,538
119
4
84,900
1,743
970
(3,457)
-
81,443
1,743
970
Notes: The amounts of the common assets included in the column "Elimination or Corporate" were 2,882 million for the years ended March 31, 2010, which mainly consisted of surplus funds (cash and securities).
(2) Geographical Segments
Millions of Yen
2010
Geographic Segment
Japan
a. Net sales and operating income

Net sales:
Net sales to outside customers
Total sales
Operating expenses
Operating income
b. Assets
61,047
180
61,227
60,283
944
45,324
Americas
10,198
584
10,782
10,787
(5)
8,149
Europe
11,219
669
11,888
12,360
(472)
9,988
East Asia
21,813
502
22,315
21,664
651
15,107
South Asia
and Oceania
19,176
156
19,332
18,134
1,198
10,779
Total
123,453
2,091
125,544
123,228
2,316
89,347
Elimination/
Corporate
(2,091)
(2,091)
(2,085)
(6)
(7,904)
Consolidated
Total
123,453
123,453
121,143
2,310
81,443
Notes: The amounts of the common assets included in the column "Elimination or Corporate" were 2,882 million for the years ended March 31, 2010, which mainly consisted of surplus funds (cash and securities).
(3) Net Sales in Foreign Countries

Net sales in foreign countries for the years ended March 31, 2010 amounted to 63,124 million.
34
Related information
1. Information about services
Millions of Yen
2011
Air and
Sea Cargo
Travel
156,945
3,732
2010
Other
Air and
Sea Cargo
Total
111
160,788
Travel
120,181
Other
3,160
Total
112
123,453
2011
Air and
Sea Cargo
Travel
Other
Total
$ 1,887,493
$ 44,877
$ 1,346
$ 1,933,716
2. Information about geographical areas

(1) Sales
Millions of Yen
2011
2010
Japan
Americas
Europe
East Asia
South Asia and

Oceania
Others
Total
76,579
12,992
14,424
30,973
25,818
160,788
Japan
60,329
Americas
10,323
Europe
South Asia and

Oceania
East Asia
11,444
21,972
Others
19,382
Total
123,453
2011
Japan
Americas
Europe
East Asia
South Asia and

Oceania
Others
Total
$ 920,975
$ 156,245
$ 173,470
$ 372,494
$ 310,498
$ 34
$ 1,933,716
Notes: Sales are classied in countries or regions based on location of customers. The countries and regions classied in the above geographical areas are as follows:
(1) Americas: U.S.A., Canada
(2) Europe: U.K., Germany, France, Italy, Netherlands
(3) East Asia: China, Hong Kong, Taiwan, South Korea
(4) South Asia and Oceania: Singapore, Indonesia, Australia, Thailand, Vietnam, Philippines, India
(5) Others: Other than those above
(2) Property, plant and equipment

Millions of Yen
2011
2010
Japan
Americas
Europe
East Asia
South Asia and

Oceania
Total
Japan
Americas
Europe
East Asia
South Asia and

Oceania
Total
11,782
1,861
1,421
823
1,129
17,016
12,069
2,097
1,753
930
1,217
18,066
2011
Japan
Americas
Europe
East Asia
South Asia and

Oceania
Total
$ 141,695
$ 22,386
$ 17,086
$ 9,894
$ 13,577
$ 204,638
(3) Information about major customers

The Group have omitted information about major customers, as sales to any customers is not over 10% of sales of consolidated.
(4) Information about loss on impairment of xed assets

Millions of Yen
2011
2010
Total
Japan
Americas
Europe
East Asia
South Asia and

Oceania
Total
229
229
Japan
Americas
Europe
East Asia
South Asia and

Oceania
66
66
2011
Japan
Americas
Europe
East Asia
South Asia and

Oceania
Total
$ 797
$ 797
35
(5) Information about amortization of goodwill and negative goodwill

Millions of Yen
2011
Japan
Goodwill at March 31, 2011
Amortization of negative goodwill
Negative goodwill at March 31, 2011
Americas
Europe
East Asia
10
49
3
2
South Asia and

Oceania
Elimination /
Corporate
5
3
-
Total
4
-
19
52
3
2
Millions of Yen
2010
Japan
Americas
0
0
3
5
Europe
East Asia
South Asia and

Oceania
Elimination /
Corporate
5
8
-
Total
4
4
-
9
12
3
5
2011
Japan
Americas
Europe
East Asia
$118
587
36
21
South Asia and

Oceania
$66
33
-
Elimination /
Corporate
Total
$43
-
$227
620
36
21
17. PER SHARE INFORMATION

Per share information for the years ended March 31, 2011 and 2010 are summarized as follows:
Yen
U.S. Dollars
2011
Net assets per share
Basic net income per share
2010
1,260.69
85.85
2011
1,225.21
36.63
$15.162
1.032
Diluted net income per share is not presented since there were no securities with dilutive effect for the years ended March 31, 2011 and 2010.
Per share information is computed based on the following:
Millions of Yen
2011
Net income
Net income not subject to distribution to common shareholders
Net income subject to current and future distribution to common stock
2010
3,621
3,621
2011
1,545
1,545
$43,542
43,542
Number of Shares of Common Stock
2011
Weighted-average shares for the period
2010
42,170,233
42,170,622
18. RELATED PARTY TRANSACTIONS

Major transactions and major balances the years ended March 31, 2011 and 2010, respectively, with related parties are as follows:
Transaction for the Year
Name
Address
Amount of
Capital
Nature of
Business
Ownership
Interest (%)
Relationship
Description
of the
Transactions
Millions
of Yen
Loan
5,767
Thousands of
U.S.Dollars
Balance at End of Year

Account Name
Millions
of Yen
Thousands of
U.S. Dollars
69,362
Other current
assets
(Loan receivable)
82

(Accrued interest
receivable)
Transaction with subsidiaries of a common parent:

NYK
FTC
(Singapore)
Pte. Ltd.
36
Singapore
$5,000
thousand
Finance
Financing
Interest
received

Transaction for the Year
Name
Address
Amount of
Capital
Nature of
Business
Ownership
Interest (%)
Relationship
Description of
the Transactions
(Owns the
Company's
shares)
0.0
Purchasing
cruise
tours
Operating
cost
Millions of Yen
Balance at End of Year

Account Name
Millions of Yen

(Prepaid cost)
503
Transaction with subsidiaries of a common parent:

NYK
Cruises
Co., Ltd.
Tokyo, Japan
NYK
FTC
(Singapore)
Pte. Ltd.
2,000
million
Marine
transportation
Travel business
Loan
Singapore
$5,000
thousand
Finance
1,366
Trade notes and
accounts payable
6,215
Financing
Interest
received
15

(Loan receivable)
88
2,035

(Accrued interest
receivable)
Notes: Consumption taxes are excluded from the amount of transactions. Business policy on terms and conditions Interest on loans is decided in consideration of market rate.
Information of parent company

Nippon Yusen Kabushiki Kaisha (NYK LINE) (Listed in Tokyo Stock Exchange, Nagoya Stock Exchange and Osaka Securities Exchange)
19. SUBSEQUENT EVENT

. The Company made an appropriation of retained earnings, proposed by the board of directors and approved by shareholders at the general meeting on June 29, 2011,
as follows:
Cash dividends (9 ($0.11) per share)
Millions of Yen
380
$4,564
. As released in "Execution of the Basic Agreement on Integration of Overseas Businesses of NYK and Yusen Logistics" on December 22, 2010, the Company and Nippon
Yusen Kabushiki Kaisha (NYK LINE) (head office: Chiyoda-ku, Tokyo, Japan; president: Yasumi Kudo) (hereinafter "NYK") have conducted the reorganization and
integration of the logistics businesses in order to gain a position as a world-class logistics service provider by reorganizing and optimizing logistics business units. The
outlines of the important transactions are as follows
1. The U.S. logistics businesses have been integrated through an absorption-type merger. Yusen Logistics (Americas)Inc. (formerly, Yusen Air & Sea Service (USA) Inc.),
which is a consolidated subsidiary of the company, became the surviving company and NYK LOGISTICS (AMERICAS) INC., which is a consolidated subsidiary of NYK,
became the extinct company.
After the merger became effective, the company acquired the shares of Yusen Logistics (Americas) Inc. from NYK GROUP AMERICAS INC.,etc. As a result, the
shareholding ratio of the company is 51.0%.
(1) Outline of the business combination
(2) Calculation of Acquisition cost
1. Name, business and recent performance of the acquired company

1) Name of the acquired company
NYK LOGISTICS (AMERICAS) INC.
2) Business of the acquired company
International ocean freight-forwarding, contract logistics, domestic
transportation., etc.
3) Performance of the acquired company for period ending 31 March 2011.
Millions of Yen
Sales
Operating Loss
Ordinary Loss
Net Loss
67,784
(17)
(28)
(683)
2. Date of the business combination

April 1, 2011
3. Legal form of the business combination
Absorption-type merger
4. Name of the company after the business combination:
Yusen Logistics (Americas) Inc.
(Formerly, Yusen Air & Sea Service (U.S.A.) Inc.)
5. Ratio of voting rights acquired
19.7%
Thousands of
U.S. Dollars
$815,205
(198)
(338)
($8,215)
1. Type of shares and merger ratio

1 share of common stock of NYK LOGISTICS (AMERICAS) INC.
: 531 shares of common stock of Yusen Logistics (Americas) Inc.
2. Basis for calculation of the merger ratio
In order to ensure the fairness and appropriateness of the merger ratio, the
Company and NYK decided individually to request a third-party appraiser
that is independent from the two companies to calculate the merger ratio.
Yusen Logistics has appointed PricewaterhouseCoopers Co., Ltd.
(hereinafter PwC) as its third-party appraiser and NYK has appointed
KPMG FAS Co., Ltd. (hereinafter KPMG) as its third-party appraiser.
The company and NYK agreed on the shareholding ratio after careful
consideration by referring to the results calculated by these third-party
appraisers, and by taking into account all factors such as the nancial condition,
the state of assets, and the future outlook of each integration subsidiary.
3. Number of shares delivered
569,763 shares
(3) Amounts of assets and liabilities acquired on the day of the business
combination
Millions of Yen
Current Assets
Fixed Assets
Total assets
Current Liabilities
Fixed Liabilities
Total liabilities
8,912
8,417
17,329
7,476
463
7,939
Thousands of
U.S. Dollars
$107,175
101,228
$208,403
89,910
5,569
$ 95,479
37
(4) Contents of share acquisition

1. Number of acquired Shares and Acquisition cost
Number of acquired Shares: 221,980 shares of common stock
Acquisition cost: 4,083 million ($ 49,109 thousand)
2. Status of share acquisition after the transfer
Number of Shares
before the Transfer
(shareholding ratio)
Number of Shares
after the Transfer
(shareholding ratio)
NYK Group Americas Inc.:

563,922 shares
NYK Logistics (Japan) Co.,
Ltd.: 5,841 shares
Total: 569,763 shares
(80.3%)
Yusen Logistics
Co., Ltd.:
140,000 shares
(19.7%)
Yusen Logistics
Co., Ltd.:
361,980 shares
(51.0%)
NYK Group Americas Inc.:

347,783 shares
(49.0%)
(3) Amounts of assets and liabilities acquired on the day of the business
combination
Millions of Yen
Current Assets
Fixed Assets
Total assets
Current Liabilities
Fixed Liabilities
Total liabilities
14,610
12,510
27,120
12,595
3,324
15,919
Thousands of
U.S. Dollars
$175,711
150,450
$326,161
151,472
39,972
$191,444
3. NYK Group Europe Ltd., which is the holding company of the NYK Group in
U.K., transferred all of the shares of Yusen Logistics (UK) Ltd. (formerly, NYK
LOGISTICS (UK) Ltd.), which is a U.K. logistics business company of the NYK
Group, to Yusen Logistics (Europe) B.V. which is a European holding company of
Yusen Logistics Group.
(1) Name of the company transferring shares
NYK Group Europe Ltd.
2. The European holding companies related to the logistics businesses of the

two groups have been integrated through an absorption-type merger. Yusen
Logistics (Europe) B.V. (formerly, Yusen Air & Sea Service (Europe) B.V.), which
is a consolidated subsidiary of the company, became the surviving company and
NYK LOGISTICS (EUROPE CONTINENT) B.V., which is a consolidated subsidiary
of NYK, became the extinct company.
(2) Name, business and recent performance of the acquired company

1. Name of the acquired company
Yusen Logistics (UK) Ltd. (formerly, NYK LOGISTICS (UK) Ltd.)
2. Business of the acquired company
transportation, etc.
3. Performance for period ending 31 March 2011.
(1) Outline of the business combination

1. Name, business and recent performance of the acquired company
1) Name of the acquired company
NYK LOGISTICS (EUROPE CONTINENT) B.V.
2) Business of the acquired company
Holding company of European logistics companies of NYK Group
Millions of Yen
Sales
Operating Income
Ordinary Loss
Net Loss
24,476
155
(6)
(315)
Thousands of
U.S. Dollars
$294,359
1,868
(70)
($3,788)
3) Performance for period ending 31 March 2011.

Millions of Yen
Sales
Operating Income
Ordinary Loss
Net Income
38,180
143
(3)
118
Thousands of
U.S. Dollars
$459,174
1,720
(34)
$ 1,419
2. Date of the business combination

April 1, 2011
3. Legal form of the business combination
Absorption-type merger
4. Name of the company after the business combination:
Yusen Logistics (Europe) B.V.
(Formerly, Yusen Air & Sea Service (Europe) B.V.)
5. Ratio of voting rights acquired
53.7%
(2) Calculation of Acquisition cost
1. Type of shares and merger ratio
1 share of common stock of NYK LOGISTICS (EUROPE CONTINENT) B.V.
: 88.75 shares of common stock of Yusen Logistics (Europe) B.V.
38
(3) Date of share transfer

April 17, 2011
(4) Contents of share acquisition
1. Number of acquired Shares and Acquisition cost
Number of acquired Shares: 40,930,000 shares of common stock
Acquisition cost: 2,054 million ($ 24,702 thousand)
Number of Shares after the acquisition (shareholding ratio): 40,930,000
shares of common stock (100%)
4 .Yusen Logistics (Hong Kong) Limited (formerly, Yusen Air & Sea Service
(H.K.) Ltd.) purchased a part of the logistics business of NYK LOGISTICS
(HONG KONG) LTD., a consolidated subsidiary of NYK, in the form of a business
transfer to Yusen Logistics (Hong Kong) Limited
(1) Corporate Name of the Transferor
NYK LOGISTICS (HONG KONG) LTD.
(2) Business transferred
transportation, etc.
(3) Assets and Liabilities to be Transferred
2. Basis for calculation of the merger ratio

In order to ensure the fairness and appropriateness of the merger ratio, the
Company and NYK decided individually to request a third-party appraiser
that is independent from the two companies to calculate the merger ratio.
Yusen Logistics has appointed PricewaterhouseCoopers Co., Ltd.
(hereinafter PwC) as its third-party appraiser and NYK has appointed
KPMG FAS Co., Ltd. (hereinafter KPMG) as its third-party appraiser.
The company and NYK agreed on the shareholding ratio after careful
consideration by referring to the results calculated by these third-party
appraisers, and by taking into account all factors such as the nancial condition,
the state of assets, and the future outlook of each integration subsidiary.
Current Assets
Fixed Assets
Total assets
Current Liabilities
Total liabilities
3. Number of shares delivered

15,975 shares
(5) The date of the business transferred

April 1, 2011
Millions of Yen
Thousands of
U.S. Dollars
107
2,165
2,272
76
76
$ 1,289
26,037
$27,326
909
$ 909
(4) Cost for the business transferred

2,145 Millions of Yen ($ 25,800 thousand)
Independent Auditors Report
39
Corporate History
Yusen Air & Sea Service

NYK Logistics
Yusen Logistics
1955
Feb. Established Kokusai Ryoko Kosha
for handling of general travel and air
cargo industry.
2000 and after
Dec. Invested in Tosho Unyu Co., Ltd. in

Naka-ku, Yokohama City, Kanagawa.
Building up global network and organization by

expanding its business to Eastern Europe and
BRICs
Mar. Transferred the goodwill from

International Travel Consultants Inc.
(ITC), the member of International Air
Transport Association (IATA).
1988
2000
Jun. Established Yusen Air & Sea Service

(Australia) Pty. Ltd.
Jun. Acquired a customs broker license and

started customs clearance.
Oct. Established Yusen Air & Sea Service

(Canada) Inc.
Feb. Established Yusen Air & Sea Service

(Chugoku) Co., Ltd. in Kurashiki City,
Okayama.
1959
Sep. NYK Line acquired stocks which Osaka
Shosen Kaisha (O.S.K. Line) owned, and
made a subsidiary company by naming it
Yusen Air Service Co., Ltd.
1961
Nov. Changed English corporate name to Yusen
Air & Sea Service Co., Ltd.
1968
(U.S.A.) Inc.
1973
Aug. Established Yusen Air & Sea Service
(H.K.) Ltd.
1979
Mar. Established Yusen Air & Sea Service
(Singapore) Pte. Ltd.
Dec. Acquired the license of domestic
airfreight forwarder.
1983
Dec. Setting up Logistics Department in Harbor
Division of NYK Head Quarter
Establishment of "Japan Intermodal
Transport (later, JIT Co., Ltd.) in Japan,
mainly handling ocean freight forwarding.
First half of 1980

Establishment of subsidiaries in Asian countries,
following precedent one in Thailand
1984
Feb. Acquired the license of international
airfreight forwarder.
1989
Nov. Established Yusen Air & Sea Service
(France) S.a.r.l.
1990
Jul. Established Yusen Air & Sea Service
(Taiwan) Ltd.
1991
Jul. Established Yusen Air & Sea Service
(Kitakanto) Co., Ltd. in Utsunomiya City,
Tochigi.
1992
Apr. Established Yusen Air & Sea Service
Philippines Inc.
(Tsukuba) Co., Ltd. in Ibaraki.
1994
Apr. Established Yusen Travel Co., Ltd. in
Chiyoda-ku, Tokyo.
Oct. Transferred the sales section of the travel
department to Yusen Travel Co., Ltd.
1996
Jan. Established Yusen Air & Sea Service
(Italia) S.r.l.
(Shinshu) Co., Ltd. in Okaya City, Nagano.
Nov. Registered as over-the-counter stocks
to Japan Securities Dealers Association.
1997
(Tohoku) Co., Ltd. in Yamagata City,
Yamagata.
Sep. Established Yusen Air & Sea Service

(China) Ltd. in Hong Kong.
2001
Jul. Established Yusen Air Staff Service Co.,
Ltd. in Chuo-ku, Tokyo.
Logistics (Shanghai) Co., Ltd. in China.
(Europe) B.V. to succeed Yusen
Air International B.V. to preside
the European business corporation.
2002
Jan. Yusen Air & Sea Service (Singapore) Pte.
Ltd. invested in PT. Pusaka Yudhanusa
of Indonesia, and changed name to PT.
Yusen Air & Sea Service Indonesia.
Jun. Established Yusen Air Logistics (Xiamen)
Co., Ltd. in China.
(Czech) s.r.o.
Established Yusen Air & Sea Service
(Thailand) Co., Ltd. and Yusen Air & Sea
Service Management (Thailand) Co., Ltd.
(Korea) Co., Ltd. in South Korea.
Dec. Established Yusen Shenda Air & Sea
Service (Shanghai) Ltd. in China.
2003
Sep. Tosho Unyu Co., Ltd. changed its name
to Yusen Air & Sea Service Keihin Trans
Co., Ltd.
(Beijing) Co., Ltd. in China.
2004
Second half of 1980
Apr. Established Yusen Air Logistics (Nagoya)

Co., Ltd. in Nagoya City, Aichi.
Integration of brand name to NYK Logistics

internationally
Expansion of network in Europe and Americas

through buyouts or establishment of subsidiaries
Jun. Invested in Ryowa Diamond Air Service

Co., Ltd. in Chuo-ku, Tokyo.
2004
1986
Nov. Established Yusen Air & Sea Service Do

Brasil Ltda.
Oct. Established Yusen Air International B.V.

and Yusen Air & Sea Service (Benelux)
B.V. in the Netherlands.
1987
(Deutschland) GmbH.
40
Apr. Established Yusen Air & Sea Service

(U.K.) Ltd.
1998
(Kyushu) Co., Ltd. in Hakata-ku,
Fukuoka City, Fukuoka.
Established Yusen Air & Sea Service
(Hokuriku) Co., Ltd. in Komatsu city, Ishikawa.
Jun. Established the Istanbul Representative

Ofce in Turkey.
(Vietnam) Co., Ltd.
Nov. Established the Krakow Representative
Ofce in Poland.
Shareholders Information
(As of March 31, 2011)
Head Ofce
Sumitomo Fudosan Shiba-Koen Tower
2-11-1, Shiba-Koen Minato-ku, Tokyo 105-0011, Japan
Phone: +81-3-6703-8231
Fax: +81-3-3578-3552
URL: http://www.jp.yusen-logistics.com
2005
Established
Feb. Listed on the First Section of the Tokyo

Stock Exchange.
February 28, 1955

Logistics (Shenzhen) Ltd. in China.
4,301 million
2006
(Guangdong) Ltd. in China.
Paid-in Capital
Common Shares
Number of authorized shares: 160,000,000
Number of shares outstanding: 42,220,800
Apr. Established Dubai Representative Ofce

in United Arab Emirates.
Number of Shareholders
Jun. Yusen Air & Sea Staff Service Co., Ltd.

changed its name to Yusen Air Loginet
Co., Ltd.
Number of Employees (Consolidated)
2007
General Meeting of Shareholders
4,756
5,623
Oct. Merger of "NYK Logistics (Japan) Co., Ltd."

with "JIT Co., Ltd." in Japan
The 57th General Meeting of shareholders

in June 29, 2011 in Tokyo, Japan.
2007
Independent Registered Public Accounting Firm

(India) Pvt. Ltd.
Deloitte Touche Tohmatsu LLC

MS Shibaura Building, 13-23, Shibaura 4-chome, Minato-ku, Tokyo 108-8530, Japan
May Established Yusen Air & Service (RUS)

LLC. in Russia.
Transfer Agent
Jun. Yusen Air Logistics (Nagoya) Co., Ltd.

changed name to Yusen Air Logitec
Co., Ltd.
2008
Logistics (Suzhou) Co., Ltd. in China.
(Mexico) S.A.de C.V.
2009
Nov. Commenced discussions for reorganization
and integration of logistics business with
Nippon Yusen.
2010
Feb. Basic letter of agreement concerning
integration of businesses of Yusen Air & Sea
Service Co., Ltd. and NYK Logistics (Japan)
Co., Ltd.
May Transfer of business agreement between
Yusen Air & Sea Service Co., Ltd. and NYK
Logistics (Japan) Co., Ltd.
Oct. Inauguration of Yusen Logistics Co., Ltd.
The Mitsubishi UFJ Trust and Banking Corporation

4-5, Marunouchi 1-chome, Chiyoda-ku,Tokyo 100-8212, Japan
Stock Listing
First Section of the Tokyo Stock Exchange
Stock Price
Years ended March 31
2007
(Yen)
2008
2009
2010
2011
High
3,750
3,210
2,140
1,446
1,522
Low
2,330
1,066
841
932
975
*Stock prices are based on the Tokyo Stock Exchange trading.
Major Shareholders
Name
Nippon Yusen Kabushiki Kaisha (NYK)
Number of
Percentage of Shares
shares held
Held
(Hundred of Shares)
251,321
59.53%
BBH for Fidelity Low-Priced Stock Fund
42,215
10.00%
The Master Trust Bank of Japan, Ltd.

(Trust Account)
12,693
3.01%
Japan Trustee Services Bank, Ltd.

(Trust Account)
11,610
2.75%
Trust & Custody Service Bank, Ltd. (Pension Trust Account)
6,338
1.50%
Yamato Holdings Co., Ltd.
6,058
1.43%
Morgan Stanley & Co. Inc.
5,884
1.39%
Japan Trustee Services Bank, Ltd.

(Trust Account 9)
5,407
1.28%
Bank of Tokyo-Mitsubishi UFJ, Ltd.
5,376
1.27%
Tokio Marine & Nichido Fire Insurance Co., Ltd.
4,064
0.96%
For Contact:
Corporate Communications & IR Department,Yusen Logistics Co., Ltd.
E-mail: yljpird@jp.yusen-logistics.com
41
Yu s e n L o g i st i c s C o . , L t d .
Annual Report 2011
Sumitomo Fudosan Shiba-Koen Tower 2-11-1, Shiba-Koen Minato-ku, Tokyo 105-0011, Japan

NYK Report

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2011

Yusen Logistics Co.,Ltd.

GO FORWARD, Yusen Logistics

able to satisfy diversified customer needs in all services that

For Dramatic Progress

(Companies to be Integrated only)

(Companies to be Integrated only)

Yusen Logistics Annual Report 2011

Consolidated Financial Highlights

Per Share Data

U.S. Dollars (Note)

Basic net income

Return on equity (ROE) (%)

Net income to total assets (%)

Thousands of U.S. Dollars

Equity ratio (%)

2007 2008 2009 2010 2011

2007 2008 2009 2010 2011

Free Cash Flows

2007 2008 2009 2010 2011

ROE / Net income to total assets (%)

2007 2008 2009 2010 2011

Yusen Logistics Annual Report 2011

2007 2008 2009 2010 2011

2007 2008 2009 2010 2011

I was appointed to President of Yusen Logistics Co., Ltd. on April 1, 2011.

Yusen Logistics Annual Report 2011

An Interview with the President

Will you explain the trend in the freight

How do you evaluate your scal 2010

We achieved growth in sales and

After the Lehman Bankruptcy in 2008, our freight forwarding

We recorded a decrease in sales and income in fiscal 2009,

volume dropped in 2009 but returned to an uptrend in 2010,

mainly due to the worldwide recession triggered by the Lehman

thanks to a global economic recovery. In addition to growth in

Bankruptcy. In fiscal 2010, however, we achieved growth in

Asia, demand has picked up in the developed countries in Europe

sales and profits. Net sales increased by 30.2% year-on-year

and Americas. Demand for international freight forwarding is on

to 160.8 billion and ordinary income by 82.5% to 6.1 billion,

an uptrend in the medium to long term, as manufacturing bases

thanks mainly to global economic recovery and our group-wide

and retailers procurement have become globalized.

cost reduction efforts. In the rst half, our business recovered

However, the Great East Japan Earthquake of March 11,

substantially thanks to an increase in international freight

2011 has further delayed a recovery in Japan-related freight,

forwarding handling volume, particularly in Asian countries

growth of which had already been slow due to the appreciation

and the effects of our Project Plus One an upgraded version

of the yen and overseas inventory adjustment.

of the Urgent project to improve balances that was launched

New Medium-Term Business Plan GO FORWARD, Yusen Logistics

Yusen Logistics Annual Report 2011

By the end of March

The U.S., UK, Hong Kong, etc.

From July, integration of

China, UAE, and others

From Oct., integration of

What are the targets in GO FORWARD,

We aim to achieve 500 billion in net

In the previous business plan for scal 2008-2010, we initially