NYK LOGISTICS INNOVATE AND DELIVER

NYK LOGISTICS INNOVATE AND DELIVER

integrity

Be respectful and considerate to our customers and colleagues. Stay warm, cordial, courteous, and caring.

innovation Continually think of new ideas for improvement, even when conditions appear satisfactory. Remain open to betterment.

intensity Carry through with and accomplish your tasks. Never give up. Overcome challenges. Remain motivated.

NYK Group Values

NYK LOGISTICS INNOVATE AND DELIVER

New Horizon 2010Medium - Term NYK Group management plan

running from fiscal 2008 to fiscal 2010 (April 1, 2008 – March 31, 2011)

Supply Chain Solutions

• Working with all Divisions and Functional Groups• Integrating multiple NYK Services and Technologies• Collaborating on Solution Design and Development• Design and build replicable Logistics Solutions that integrate multiple NYK services

and technologies – Fill operational and process gap between customer acquisition and order

fulfillment• Flawless Implementation of customer solutions

– Follow tested integrated implementation methodology to reduce variability between scope design and solution deployment/operate

• Institutionalize a culture of continuous improvement– Deploy performance metrics through Balanced Scorecard at the customer level

NYK LOGISTICS INNOVATE AND DELIVER

NYK LOGISTICS INNOVATE AND DELIVER

NLA Visibility System: Tracking

NLA Visibility System: Inventory Visibility FunctionTotal Visibility / Total Inventory

Supplier /Consignee

Cargo MgtINSD / 3PL

Ocean / Air TransportNYK / Yusen / TCL / NWL /

Bulk Ship/ 3PL

DeconsolidationD.C. By-Pass

UWDC / 3PL

DistributionGST / ETA/ 3PL

StoreShelf

End-To-End Inventory

Create P.O.

Full Gate In

CargoShipped

Full Gate Out

Loadedon Truck

Outbound to D.C.

Ordered At Origin In Transit Inland Delivered

NLA Visibility System: Inventory Visibility Function

Cargo Received

Event Capture

Author: T. McKeon v1.2Last Updated: August 9, 2004

Outboundto Store

Container Manifest Container Inventory by Vessel Detailed Container Status Events

CargoReceived

in Warehouse

Loadedon Rail

Gate Out

EmptyAvailableLoaded on

Vessel/Plane

Actual Sail/Flight Date

Arrival atPort

WarehouseShipping

Order

Factory

“On Order” Inventory Totals Search By Customer P.O. Search By Availability

“Outbound” Inventory Detail By Item Code, Customer, Region Event Notifications

“On Hand / In Warehouse” Inventory Damaged / Destroyed / Returned Counts Totals Across Multiple Warehouses

In Warehouse Report Allocation Reporting Service Contract Snapshot

“In Transit” Inventory Totals

FinalDelivery

Item #/CountBEW 9,010PFF 3,524

Cycle CountsP.O. Sent toManufacturer

In Transit / Tracking Detail Tracking by Vessel/Voyage, Container, P.O. Inquiry By Vendor Invoice, B/L, Item #, Description

In Transit Detail

In Transit to Warehouse

On Hand / In Warehouse

Outbound to Customer

Inbound to Warehouse

WarehouseShipment Order

Cargo Shippedfrom Warehouse

Staged Cargo

HQConsignee

Booking

NYK Logistics Total Supply Chain Capability

NYK Logistics (Americas) Inc.NYK Logistics (Americas) Inc.Service OfferingsService Offerings

NYK Logistics (Americas) Inc.NYK Logistics (Americas) Inc.Service OfferingsService Offerings

Transportation Services • Intermodal

• OTR (TL+LTL)

• Project Cargo

• International

• Ocean

• NVOCC / CHB

• Warehouse

• Air Freight

• Preprint / Expedited Services

• Reverse Logistics

• Mexico Logistics

NYK LOGISTICS INNOVATE AND DELIVER

Intermodal Services Contracts / Equipment:NYK has rail contracts with all Class I Railroads in North America and access to nearly 100,000 rail containers.

Service / Coverage:NYK is above Tier 1 ranking in terms of equipment reservations, rail line haul services, & rail terminal performance ensuring a consistently higher lever of Intermodal service across all countries in North America.

Priority:NYK receives the highest level IMC priority for equipment and service. In addition to standard intermodal service, NYK offers expedited intermodal service which is comparable to over the road service at reduced rates.

Green:NYK is a “Green Company”, has ISO 14001 certification, & has been recognized as a leader in the transportation industry for our efforts to reduce carbon emissions.

NYK LOGISTICS INNOVATE AND DELIVER

• Robust industry purchasing power & leverage• Full truck load, partial truck load, & LTL truckload capabilities• Non-asset based flexibility & benefit with asset-based mentality• Single point of contact with centralized dispatch• Regional presence & insight with complete North American coverage • Thousands of carriers through single source solution• Minimum $100,000 cargo insurance• Always market competitive rates

OTR Services

NYK LOGISTICS INNOVATE AND DELIVER

LTL Services

• NYK offers our customers a select group of carriers • Unparalleled service within the 48 states, Canada, & Mexico• A complete web-based management program available 24 / 7 / 365 • Dedicated management of our customers shipping needs• Expedited, time definite guaranteed LTL service• Local LTL knowledge & professional expertise

By selling LTL, NYK adds value to your company because we know what makes our product offering attractive

to LTL shippers & consignees

NYK LOGISTICS INNOVATE AND DELIVER

Service Offerings & Market DevelopmentService Offerings & Market Development

• Truck (Open equipment: flats, steps, lowboys, etc.)• Dry Vans (53’ & 48’ equipment)• LTL & Intermodal• Super permit loads (19 axle or goldhofer platform trailers)• Ocean Containers (move intact or move as breakbulk)• Barge service (including intracontinental)• Over-dimensional rail service• On-site supervision• Unloading / Uncrating• Dunnage Removal / Rough Set Installation• Local distribution• Crane Service• Complete cradle-to-grave project management

Special Projects Services

NYK LOGISTICS INNOVATE AND DELIVER

NYK LOGISTICS INNOVATE AND DELIVER

International Services

• NVOCC (Non-Vessel Operating Common Carrier)• CHB (Customs House Brokerage)• Customer, Vendor, & Supplier Assessment• Purchase Order Management• Vendor Compliance• Origin Consolidation• Import / Export Technology• Security Education & Training• Homeland Security Compliance• Supply Chain Security (C-TPAT)• Facilities Inspection & Evaluation• Global Logistics Infrastructure

NYK LOGISTICS INNOVATE AND DELIVER

International Network Solutions Division

STANDARD CONSOLIDATION SERVICES

• Order Monitoring• Late Shipment Status Reporting• Carton Condition & Marking Inspection• Custom Loading • Bill of Lading Preparation• Ocean Carrier Booking Delivery• Commercial Document Collection• Negotiable Cargo Receipt• Container Manifest Preparation• Transmittal Advice• Document Distribution• Sailing Advice

INSD: A full service, neutral consolidator with global coverage

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NYK LOGISTICS INNOVATE AND DELIVER

STANDARD VALUE-ADDED SERVICES

• Bar Code Scanning• GOH Handling• Asia Warehousing & Distribution• Multi-Country Consolidation• INSD Self Appraisals• Performance Reports• Pre-Distribution• Vendor Education• Vendor Compliance metrics• ACE Participants• C-TPAT & supply chain security

International Network Solutions Division

NYK LOGISTICS INNOVATE AND DELIVER

Ocean Transportation Services • Founded 1885

• Member of the Grand Alliance

• Top 10 World’s Largest Shipping Company – 777 Vessels

• Worldwide Service Network Asia, Europe, Oceania, North & South America

• MLB, All-Water, & Intermodal Options

• Large Container Inventory (40’ HC, 45’, & reefer containers)

• Customer Service through Global Office Network

• E-Commerce Applications

• C-TPAT Certified - ISPS Certification

• ISO14001 Environment Certification

• Company Owned Terminal Operations

NYK LOGISTICS INNOVATE AND DELIVER

NVOCC Services NYK provides a complete Non-Vessel Operating Common Carrier

(NVOCC) option for global coverage of freight

• Over 19 contracted global carriers

• Overflow provider

• Alternative for customers using NVOCC that require a full logistics package

in addition to value-added services

• Full Container Loads with our global carriers

• Less than Container Loads (LCL) options available;

• Sailing flexibility with expedited and deferred services to support varying

& seasonal inventory demands

NYK LOGISTICS INNOVATE AND DELIVER

CHB Services

• NYK will assist customers in understanding the C-TPAT program and aid them throughout the process from MOU to VALIDATION.

• NYK will assist customers in establishing training programs for their employees.• NYK will assist customers in assessing their security systems by:

– Reviewing procedures and policies and comparing them with industry best practices– Helping to identify risks for the customer and developing programs to manage that risk– Developing pilot asset protection programs– Providing business solutions to security problems– Developing training solutions to meet government standards

• Centralized Remote Location Filing & Record Keeping• Compliance Consulting• Proactive program recommendations• ISA, Internal Controls & Training Programs

• US & Mexican CHB Services• Freight Forwarding, Warehousing, & Distribution Services• US Customs Bonded Warehouse• Foreign Trade Zone• Tolling Operations & Contract Services

Warehouse Services • Transloading Cross-Dock Facilities• EDI Integration• Small Parcel Processing• ASN/RF Receiving• Lot / Expiration Control• Consolidation / Deconsolidation• Serial Number Capture• Replenishment• Cycle Counting• Specialized Reporting• Returns Processing• Web-Based Inventory Visibility• Palletizing, Labeling, & Packaging Programs• Compliance Labeling UCC128

• WhereNet Yard Management System• Large Capacity Trailer Yard• Real-Time WMS• Automatic Event Billing & Invoicing• Pick & Pack Operations• Harbor Drayage• Assembly, Kitting & Repacking• Marking & Ticketing• Bar Code Scanning• RFID Container Tracking• 24 Hour Guard Service• Electronic Surveillance• ISO 9001-2001 Certified• QMS Employee Quality Program

NYK LOGISTICS INNOVATE AND DELIVER

Air Freight Services • NFO (Next Flight Out) – Same day service, goods delivered within the 48 mainland states with 23 hours of initial pick up. Excludes Alaska, Hawaii, & International Cargo.

• Next Day AM – Cargo that is picked up by 15:00 (M-F) & delivered by 12:00 NOON the next business day in most major markets.

• Next Day – Cargo that is picked up by 15:00 (M-F) & delivered by 17:00 the next business day. Alaska & Hawaii points are next day from 11 western states only. International rates do not apply.

• 2nd Day AM – Cargo that is picked up by 15:00 (M-F) & delivered by 12:00 on second business day.

• 2nd Day – Cargo that is picked up by 15:00 (M-F) & delivered by 17:00 on second business day.

• 3rd Day – Cargo that is picked up by 15:00 (M-F) & delivered by 17:00 on third business day.

• Economy – Expedited ground cargo that is picked up by 15:00 (M-F) & delivered by 17:00 between the third business and fifth business day (More time definite and higher sense of urgency than LTL service).

• Charter – Exclusive use of aircraft (Lear jet to Airbus) to transport cargo 24 / 7.

• NFO (Next Flight Out) – Same day service, goods delivered within the 48 mainland states with 23 hours of initial pick up. Excludes Alaska, Hawaii, & International Cargo.

• Next Day AM – Cargo that is picked up by 15:00 (M-F) & delivered by 12:00 NOON the next business day in most major markets.

• Next Day – Cargo that is picked up by 15:00 (M-F) & delivered by 17:00 the next business day. Alaska & Hawaii points are next day from 11 western states only. International rates do not apply.

• 2nd Day AM – Cargo that is picked up by 15:00 (M-F) & delivered by 12:00 on second business day.

• 2nd Day – Cargo that is picked up by 15:00 (M-F) & delivered by 17:00 on second business day.

• 3rd Day – Cargo that is picked up by 15:00 (M-F) & delivered by 17:00 on third business day.

• Economy – Expedited ground cargo that is picked up by 15:00 (M-F) & delivered by 17:00 between the third business and fifth business day (More time definite and higher sense of urgency than LTL service).

• Charter – Exclusive use of aircraft (Lear jet to Airbus) to transport cargo 24 / 7.

• Mission Critical

• Trade Show Logistics

• Oversized

• High Value

• Maintenance & Parts Recovery

• White Glove - Inside Delivery

• LTL Recovery

• Cargo consolidations to all points in Alaska, Hawaii, and Puerto Rico

In the current economic condition with other global air freight providers reducing overhead,

make sure your air freight gets there on time with NYK!

ISO 9002 Certified

Specialized Services

NYK LOGISTICS INNOVATE AND DELIVER

NYK LOGISTICS INNOVATE AND DELIVER

Preprint / Expedited Services

• Contracts with more than 5,000 carriers that understand the time sensitive market

• NYK pre-negotiates contracts with our carrier partners, securing capacity and unequaled service at competitive prices

• Access to 100,000 pieces of rolling stock

• Full EDI support with real-time, web-enabled shipment tracking and reporting

• Always 24 / 7 availability

• Eliminates most, if not all, of your company’s warehouse personnel

- Reduces your company’s overhead

• Ability to mix jobs on site at warehouses which optimizes the truckloads

- Allows NYK to provide a much lower rate

• NYK handles most (if not all) of the extensions

- Saves overhead / overtime

• Greatly reduces liability risk for late / missed deliveries

- If an error occurs during the shipping process – the risk is to NYK

• Knowing your inserts will arrive on time - Peace of mind!

Benefits of NYK Preprint / Expedited Services:

NYK LOGISTICS INNOVATE AND DELIVER

Reverse Logistics Services

Surplus and return merchandise, usually in LTL lots, move from customer return channel to NLAT Reverse Consolidation Centers

Products from multiple locations are consolidated into full truckloads with similar / same destination

Over 40 state of the art, fully secured, warehouse facilities across the country that include comprehensive information management systems Over 300 return orders processed each day and an average of 75 consolidated full truck load return moves per day

Surplus and return merchandise, usually in LTL lots, move from customer return channel to NLAT Reverse Consolidation Centers

Products from multiple locations are consolidated into full truckloads with similar / same destination

Over 40 state of the art, fully secured, warehouse facilities across the country that include comprehensive information management systems Over 300 return orders processed each day and an average of 75 consolidated full truck load return moves per day

LIFE - CYCLE ASSET VISIBILITY

Core Logistics

Capabilities

Redistribution & Remarketing Management

Repair &

Refurbishment

Recycle & Disposition Operations

Transportation

Sorting & Segregation

Consolidation

Inventory Management

Repackaging

Liquidation to Secondary Markets

Inspection

Plug & Play Testing

End of Life Disposal

Disposition & Reporting

Asset Recovery

Parts Harvesting

NYK LOGISTICS INNOVATE AND DELIVER

Mexico Services

Facilities• Branch office in Celaya, MX• Border facility with a Secure 100 trailer yard in Laredo, TX• 23,000 ft2 of warehousing available in Tijuana, MX• 260,000 ft2 of warehousing available in Laredo, TX• Railroad Spur, Union Pacific served

Security• Security guard service available• Specialty Mexican cargo insurance available upon request• E-track visibility capability• Trailers include security features including satellite tracking & door sensors• Full operating authority in all Mexican states

Equipment• 40’, 48’, & 53’ air-ride equipment• Boxcars• Specialized Reefers, Flatbeds, & TOFCs• Drop deck equipment available• Transborder / NAFTA – all steel-wheel service• Passport – Steel-wheel / rubber-wheel combination

NYK LOGISTICS INNOVATE AND DELIVER

Industry Differentiators

• “Best of the Best” by Logistics Management Magazine• “One of the Most Sustainable Corporations in the World” by Global 100• “One of the World’s Most Ethical Companies” by Ethisphere• “Circle of Excellence” by Distribution Business Management Association• “NDTA Quality Award” by the National Defense Transportation Association• “Carrier of the Year” awards from the Electronics, Auto, & Chemical industry

Why Choose NYK?Why Choose NYK?

NYK has a history of providing exceptional services and has received many honors including:

Connecting All The Links In The Supply Chain

NYK Innovate and Deliver!

Ocean OTR Air

Intermodal LTL Warehousing and A & D

NYK LOGISTICS INNOVATE AND DELIVER