I would like to express my deepest gratitude for the support of shareholders and investors.

In the current socioeconomic environment, while social and economic activities are returning to normalcy after the impact of COVID-19, the economic recovery is far from strong, with rising prices and a weakening yen, and negative growth in real GDP excluding the impact of price fluctuations at present. In addition, the outlook remains uncertain due to concerns about a slowdown in global economic growth against a backdrop of increasing geopolitical risks and other factors.

In addition to this, the logistics industry is facing a major turning point with the so-called “2024 problem” for logistics, in which restrictions on maximum overtime hours for truck driving operations has become effective from April 1, 2024. The shortage of transportation capacity, starting with this problem is a critical issue that will affect Japan's economic growth. To overcome this problem, not only logistics companies but also society as a whole must proceed with initiatives aimed at the realization of sustainable logistics.

In this environment, the Group sees low productivity in logistics as one of the major causes of transportation capacity shortages, and is therefore proceeding with improving delivery efficiency through the use of DX, optimization of transportation networks, and automation and labor saving. In addition to these initiatives, we are continuing our efforts to receive appropriate freight tariffs to maintain service quality, and have revised the reported fares for express package delivery services from April 1, 2024.

In order to achieve sustainable growth as Japan faces long-term population decline and contracting economy, we will strive to achieve stable growth in express package delivery services, which are the Group's operating base, and expand businesses other than express package delivery services, such as 3PL and global business, which will be future growth drivers.

Along with the “2024 problem,” the Group considers decarbonization to be an important social issue. As a company that is responsible for the social infrastructure of logistics, it is our responsibility to promote decarbonization. Under the “Decarbonization Vision” announced in April 2022, the Group is working toward the goal of carbon neutrality by 2050. In addition to reducing our own greenhouse gas emissions, we are also working to create new services, such as focusing on providing logistics services that contribute to the reduction of environmental impact of customers' entire supply chains.

We appreciate the ongoing understanding and support of our shareholders and Investors.