Maruwn Corporation

Interview with the President

Q1 From fiscal 2017, the "business plan system" was renewed.
A1

Yes. Maruwn celebrated its 125th anniversary this year, but the Maruwn Group Management Philosophy based on the our founder’s spirit of "Benefiting Others, Benefit Oneself" is a universal value, and it will not and cannot be changed. However, since the coordinate axes and direction of the business plan could not be clearly stated in the Mid-term Business Plan (concrete execution plan) developed under our Management Philosophy, there was a slightly divergent impression between them. Therefore, at this time, we clarified the Maruwn Group Long-term Management Vision (the desired state of Maruwn ten years from now)", and shared Maruwn Innovation (Action Guidelines for Realization) as the approach. As a result, we believe that the Maruwn Group Management Philosophy and Mid-term Business Plan (Organizational Business Plan and Individual Action Plans) are connected, and that the direction for all employees and concrete daily business plans have converged. It is only half a year since we started but we have made good progress.

See "Management Strategy and Business Plan"

Q2 What is the progress of the Second Mid-term Business Plan (FY 2017 - 2019)?
A2 There is no need for concern. We have started out almost exactly as planned. Although there are some differences by segment, we can consider that we are cruising at a comfortable speed. To mention the well-performing fields in particular, the "Distribution Cargo Department will be in the black in the first half for the first time, and will be transformed from the previous year into a profitable department over the fiscal year" and "The International Cargo Department is growing markedly. We will achieve higher sales and profits in the first half as compared to the mid-term target, and we expect to achieve this even for the full year." We were able to successfully launch a local subsidiary in Vietnam in August.
Q3 Did you not experience problems that you did not expect initially?
A3 A chronic labor shortage (driver shortage) is finally becoming a social phenomenon. As a result of significant increases in home deliveries, in which delivery efficiency is poor due to issues such as absences, problems such as: delays in home delivery cargoes caused by delivery levels in excess of capacity; chronic long working hours for drivers; non-payment of overtime work from long working hours, have became obvious, and negotiations on revision of shipping costs have begun to make shippers understand that prices must rise to pay for labor cost increases to solve these problems. In conjunction with this, the "Promulgation of a New Comprehensive Logistics Strategy Outline" will be carried out soon, so we need to think about how we can approach these issues. There is no home delivery department in Maruwn, but there is no doubt that the burden of waiting time between jobs and loading and unloading work generated at the time of cargo receipt and shipment are increasing, so we believe we need to make efforts to make our shippers understand this.
Q4 From this year, you are sponsoring a team participating in the Dakar Rally.
A4

Yes. From 2017, we are supporting Team Kazama who are participating in the motorcycle (Moto) division of the Dakar Rally with Shinji Kazama (coach) and Shinnosuke Kazama (rider, son). Team Kazama finished their first race this year, receiving a flag for 67th place. According to Shinji Kazama, the "Kazama Spirit" of this team that completed the world-famous Dakar Rally, "the harshest race in the world," stretching over Paraguay, Bolivia, and Argentina, with a temperature difference of about 50°C, an altitude difference of about 5,000 m, and a distance of about 9,000 km, is "Safety consciousness, Health management, and Teamwork." This is exactly the same as Maruwn's approach to work, and we sympathize greatly with their challenge and are sponsoring the team to help realize this spirit. We will continue to support Team Kazama next year, when the rally will start on January 6 and stretch over Peru, Bolivia and Argentina. In the future, I would like to participate in the camion (truck) division with Maruwn logos and I would love to get behind the wheel myself (I hold a large size vehicle license).

See "Sponsorship Activities"

Q5 Finally, please give a word to shareholders and investors.
A5

Maruwn is a modest company, we are not in the news and we do not run TV ads. The stock price has a sense of value, and most of our shareholders are individuals. In order to meet the expectations of these people, we believe that the most important thing is to secure stable profits and maintain stable dividends under sound management. In addition, opportunities for everyone to understand our business are limited to topics on this website and shareholder communications. The renewal of our website at this time is also intended to give shareholders and investors a better understanding of Maruwn's current and future goals, but please tell us what you think of it. Please contact us if you have any comments or requests.

We look forward to your continued support in the future.

October 1, 2017 Yasuji Araki