NYK Takes Measures to Enhance Yusen Logistics’ Global Management

NYK will enhance the global management capabilities of NYK Group company Yusen Logistics Co., Ltd. ("YLK") by shifting YLK's global headquarters ("GHQ") functions to Yusen Logistics Global Management Co., Ltd. ("YLGM") from April 2025. By restructuring YLK's current organization structure, in which the GHQ and Japan-region business coexist, and making them independent organizations with distinct roles and functions, NYK and YLK aim to achieve agile decision-making and further enhance group management.

As part of this restructuring, NYK resolved at its Board of Directors meeting held today to conduct a company split (absorption-type split) in which all shares of YLK held by NYK will be succeeded by YLGM. (For details, please refer to the IR information.)

YLK has positioned corporate transformation ("CX") as its basic strategy in the third phase of its long-term vision "TRANSFORM 2025," which was launched in 2017. In April 2024, as part of this strategy, the headquarters functions handled by five regional headquarters (RHQ) were consolidated into YLK's GHQ to strengthen the network that directly links the GHQ and each operating company. The establishment of YLGM is intended to segregate the roles and responsibilities of the GHQ and the Japan-region business and to address the unique challenges faced by each region.

- July 31, 2024: NYK establishes YLGM
- October 31, 2024: NYK's Board of Directors resolves to spin off (absorption-type split) all shares of YLK held by NYK to be succeeded by YLGM
- November 27, 2024: YLK concludes an absorption-type split agreement with YLGM
- January 10, 2025: Company split takes effect
- April 1, 2025: YLK transfers its GHQ function to YLGM, which will begin operations under a new structure

- Clarification of functions: YLGM will lead the global management of the Yusen Logistics (YL) Group through strategic planning for the entire organization. YLK, as an operation company, will leverage its business foundation and market insights to transform into an organization capable of responding effectively to the business environment and pursuing sustainable growth.

- Facilitating further growth of the YL Group on a global scale: By strengthening GHQ functions, YL will accelerate growth in global markets by enhancing management protocols throughout its group to drive optimal decision-making.

The NYK Group has positioned logistics as a core business in its medium-term management plan announced in March 2023. This year, the NYK Group has made global investments, including the acquisition of a UK-based platform company that provides delivery services for e-commerce businesses and an auto parts delivery company in the Netherlands. As the center of global management, YLGM will lead the overall strategy of the YL Group and support business in each region, including Japan. By connecting the group companies worldwide, YLGM will create new business opportunities and accelerate global growth.

This initiative is in line with the NYK Group CX Story, which aims to advance "talent development," "organization development," and the "enhancement of governance" to strengthen our group's logistics business.

For details of this initiative, please refer to YLK's press release.

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