APL Logistics: Financial Results for Q2*

Singapore, 13 November 2019

Our parent company, Kintetsu World Express (“KWE”), has posted Q2 2019 results. With respect to APL Logistics (“APLL”):

Logistics services for automotive showed weaker performance compared to a year earlier due to a decrease in the handling volume mainly in the U.S. For retail-related logistics service, the handling volume showed a steady growth mainly in major customers, and consumer and other industrial fields also showed solid growth.

As a result, net sales of APLL decreased 6.0% to 88,647 million yen, but operating income rose 66.7% to 4,590 million yen through efforts to improve operating margin including reduction of selling, general and administrative expenses. Segment income was 1,613 million yen (segment loss of 232 million yen a year earlier) as amortization of goodwill related to APLL acquisition is still included in this segment.

The exchange rate was U.S. $1 = \110.05 and U.S. $1 = \108.68 for the six months ended September 30, 2019 and 2018, respectively (APLL used the average rate for the period from January 1 to June 30 because APLL’s fiscal year-end is December 31).

*reference from KWE Q2 financial result public release