[Company analysis] Nippon Express Co., Ltd. (日本通運)

「Nippon Express Co., Ltd. (日本通運)」is Japan's largest comprehensive logistics company. Mainly specialized in B2B freight forwarding and logistics operations. Especially in the international air freight forwarding field, it greatly exceeds the industry's second largest「Kintetsu World Express(近鉄エクスプレス)」. The number of consolidated employees is approximately 67,909.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Nippon Express Co., Ltd.
Company name (Japanese)	日本通運
Date of establishment	Friday, October 1, 1937
Headquarters location	〒105-8322 東京都港区東新橋1丁目9番3号
Capital	70,175
Consolidated sales	2,138,501
Consolidated operating profit	79,598
Consolidated total assets	1,536,677
Consolidated capital	560,444
Capital adequacy ratio	36.5%
Consolidated number of employees	67,909

 

 

 

2. Summary and Features

 
Until the Meiji era, freight transportation system in Japan heavily depends on water transportation. Mainly from Nihonbashi, via the "Edo River(江戸川)" and "Tone River(利根川)", the regular route to the riverside of inland regions such as the Kanto region was established. However, in 1937, as a part of the wartime economic control during the Sino-Japanese War, water transportation companies in Japan became integrated, in order to secure smooth war supplies. This is the beginning of「Nippon Express(日本通運)」, the state-owned Japanese transportation company.

 

However, as a state-owned enterprise,「Nippon Express」was abolished after the Sino-Japanese War and restarted as a private enterprise. Because of its establishment background, this company has strengths in transportation business in the public sector, and it can collectively carry out relocation business of government offices and transportation business for government / local government. In addition,「Nippon Express」was designated as a private business operator to cooperate in the emergency transportation of emergency relief supplies during an emergency situation in Japan.

 

The general consumers in Japan have the image that they are strong in moving business. Besides,「Nippon Express」used to provide home delivery services, in the past, but now they are withdrawing. They also initiated travel business under the name of「Nippon Express Travel」for quite long time. but in 2002 and 2007, their travel business experienced significant reduce, and in 2012 the business was separated into a subsidiary. Now, it is a small and medium-sized travel agency with about 300 employees.

Nowadays,「Nippon Express」has a weak presence in the consumer logistics market. However, in the fields of  heavy goods transportation, arts transportation, animal transportation, business office relocation, international transportation, 「Nippon Express」is the best transportation company in Japan. In addition, this company is the only Japanese shipping company that covers all transportation methods such as land, courier, and air. 

 

 

 

3. Major Business

 

■ Domestic transportation
They are developing business centering on B2B transportation such as large-scale products, art transportation, animal transportation, large-scale business relocation, international transportation.

■ International shipping
Utilizing the worldwide network of「Nippon Express」, they provide logistics services to customers not only in Japan but around the world.

■ Professional transportation
In addition to general transportation operations, they are carrying out transportation operations in various areas such as security, waste collection and transportation, food and pharmaceuticals. 「Nippon Express」has the top market share in Japan, especially in the moving and relocation business of ordinary households and business establishments. 

■ Warehouse storage
At present,「Nippon Express」has the No. 1 warehouse area and network in Japan, and they also have many logistics centers that support the supply of raw materials and product inventory.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		1,864,301	1,995,317	2,138,501
Consolidated operating profit		57,431	70,269	79,598
Consolidated total assets		1,521,800	1,518,024	1,536,677
Consolidated net assets		552,985	547,494	560,444
Breakdown of sales	Japan Logistics business	1,143,290	1,190,027	1,244,544
	America Logistics business	70,869	76,604	81,130
	Europe Logistics business	73,895	89,911	107,746
	East asia Logistics business	93,157	106,649	110,641
	Southen Asia・Oceania Logistics business	63,826	75,867	84,208
	Security transportation business	54,740	57,200	72,598
	Construction・Heavy goods transportation	46,512	47,388	47,636
	Logistics support business	318,009	351,667	389,996