KINTETSU WORLD EXPRESS SOUTH AFRICAWHERE LOGISTICS MEETS PRECISION

CORPORATE PROFILE

KWE at a glanceIntroducing your Global Logistics Partner

Kintetsu World Express (KWE) originated in 1948 in Japan. We are a global logistics service partner, offering award winning supply chain management solutions. These solutions include procurement services, vendor management, ocean and airfreight forwarding, warehousing, distribution, transportation and customs brokerage.

We have built a legacy based on solid business values and enduring customer partnerships. This is integral to our business philosophy and we understand the concept of being an extension of, and an indispensable resource to you, our valued business partner.

KWE has a global network across Europe, the Middle East, Africa, Asia and the Americas. Globally, KWE South Africa (Pty) Ltd forms part of the EMEA Region (Europe, Middle East and Africa) and serves as the official gateway into Africa.The EMEA Region is one of the 5 regional management systems supporting the KWE global network, which includes:• Connections to 216 cities across the globe • Almost 1 million square metres of warehousing

KWE offers solutions across all industries and through an integrated management system, resources, network, people, processes and high-end information technology, we are able to provide seamless solutions for clients.

Principles we work by

We are a corporate global service provider that offers and ensures customer satisfaction through a reliable service to customers all over the world.

We at KWE, as part of a global community, together with our clients,shareholders and employees, strive to create optimal working environments through the provision of our services and company values.

Africa Gateway

A focus on African countries and Indian Ocean islands - Through our partnerships with our agents we have extensive coverage of Africa. This footprint allows us to offer a wide range of international and local services to our customers.

Project Cargo

Managing your risk the right way - KWE’s dedicated Global Project Cargo Divisions consists of teams of cross functional, experienced and professional Project Cargo Specialists. We design and implement best practice solutions for the movement of your assets in transit.

Airfreight forwarding is one of our strengths - KWE takes responsibility for the entire transport process providing a safer and faster service. We have a proven track-record in multiple industries.

Airfreight Forwarding

Ocean freight forwarding is a precision service - KWE is a non-vessel operating common carrier (NVOCC).We do not rely solely on our own fleet, but have the flexibility and scalability of using multiple shipping lines’ transportation services. We’re able to sort cargo to and from multiple destinations as well as transport full container loads.

Ocean Freight Forwarding

Experience counts - Our experienced and highly-skilled Customs Compliance Team guides customers through the rules and regulations effortlessly. Our range of assistance and guidance in the Customs business area of SARS is comprehensive and covers multiple areas.

Customs Brokerage

Our global integrated supply chain managed service runs 365 days a year. Our Unified Information Management Portal ensures Supply Chain Visibility and Supply Chain Events Management.

Specialised Aerospace Logistics

Logistics and Supply Chain Management

A strong link in our global chain - KWE provides a supply chain management solution which combines 178 strategically located distribution facilities worldwide.

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Warehouse Management

Over 56 000m2 of warehousing in SA, and counting - KWE provides warehouse management services either on site at the customer’s locality or at facilities owned by KWE, around South Africa. All warehouses have the following security features: CCTV cameras with digital recording, access control, 24 hour security and emergency back-up.

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With the drive towards increased efficiencies and supply chain solutions, this leads to a greater reduction in freight costs through improved planning and forecasting for ocean freight.

KWE is registered as a Non-vessel Operating Common Carrier (NVOCC)that is able to utilise the transport services of a variety of shipping lines.

KWE takes responsibility for theentire transport process providinga safe and reliable service.

We have a proven track-record inthe following industries:

• Aerospace• Automotive and related products• Agricultural products• Healthcare items • Machinery and construction equipment• Specialised freight forwarding solutions for project

work of semi-conductor, out of gauge cargo, and time and temperature sensitive products

Consolidation solutions

With a global footprint of over 31 countries and a total of 377 offices around the globe, we are able to consolidate cargo from multiple suppliers for optimal transport solutions and then consign it via our strategic airline partnerships.

Locally, our services include:

• Preparation of shipping documents • Packaging (DG or normal)• Insurance• Customs brokerage • Domestic and cross border surface transportation• Specialised handling• Expertise in handling high value products • AOG solutions• Charter services• Online visibility solutions• Onsite Part 108 security checks • Long and short term storage solutions

One of KWE’score strengths

Increased focus due to global trends

• Crating, packing and securing• Customs brokerage• Break bulk, bulk and

project cargo• Online visibility solutions

• LCL / FCL cargo• Temperature controlled goods• Cross haul and line haul• Buyers and Shippers

consolidations• Booking

We are able to provide consolidated services for products purchased from various manufacturers based in the same region into a single shipment.

Traditionally, our core business is servicing big industry; we also provide specialised freight solutions to all industry sectors. We’ve provided for:

• International sporting events• Musical productions• Exhibitions• Livestock (Animal relocations)

Our ocean freight services include:

Airfreight Forwarding Ocean Freight

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In addition we are:

• An appointed and, importantly, an Accredited Clearing Agent with SARS, in terms of Section 64E of the Customs and Excise Act, No 91 of 1964

• Have a solid and healthy relationship with SARS since 1997• Are regarded by SARS as a reputable company

with integrity• Have representatives on EXCO level in SAAFF National

and SAAFF Regional (Gauteng)

Customs Brokerage

• Online Customs brokerage• Pre-clearance of shipment performed prior to cargo

arrival to prevent costly delays• Full electronic communication/integration (EDI) with

SARS’s Customs business unit • Tariff classification and determinations are facilitated and

advised upon, in line with the Harmonised Commodity• Description and Coding System • Matters pertaining to import and/or export control

i.e. permits• Assistance and guidance on matters pertaining to Rules of

Origin applications i.e. trade agreements• Matters pertaining to Customs Valuations• Provision of up-to-date information regarding Customs

rulings and SARS matters in general

• Assistance with, and submission of, an Application for a Customs Client Code

• Number, for purposes of Imports, Exports, and other Customs Client types

• Maintaining our customers’ Customs Client profile with SARS’s Customs Business Unit (DA 185)

• Applying to SARS’s Customs Business Unit for Refunds (Customs related)

• Customs rebate provisions• Applying and obtaining a Letter of Authority

from SARS• Port Health protocols (Examinations,

Releases, etc.)• State Vet protocols (Examinations, Releases, etc.)• Import and/or export commodities deemed to

be Prohibited and/or Restricted• Tariff related issues and the various rate of duties

applicable, including making applications for Tariff Determinations to SARS

• ITAC i.e. rebate permits (470.03), etc.• Managing and monitoring Customs stops and/or

Customs detentions

We ensure all our client’s paperwork is in order

Our experienced and highly-skilled Customs Compliance Team guide customers through the rules and regulations effortlessly. Our range of assistance and guidance in the Customs business area of SARS covers:

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Warehouse Management

All warehouses have the following security features: CCTV cameras with digital recording, access control, 24 hour security and emergency

Region

Johannesburg

Jet Park, adjacent to the OR Tambo airport

OR Tambo, South African Airways terminal

OR Tambo airport – in-flight catering

Durban

Mobeni

Prospecton

Cape Town

Airport Industrial Estate

Sq/m

16 500

14 000

500

18 000

6 900

1 000

Our warehouse facilities:

Inventory management

• Parts traceability by serial number, Date of Receipt, attribute management

• FIFO management to ensure systematic cycling of inventory • Inventory “Put Away” process management

Reporting

• KWE provides daily reports of inbound receipts, inventory balance and an order status report to HTM

• KWE’s system generates a full set of reports for clean and effective record keeping

• Inventory counts are supported by system generated reports for reconciliation and record keeping

RF capability

• RF put-away for real- time update of inventory within warehouse storage locations

• RF pick and ship to identify the status of each shipping order• RF inquiry of inventory within the warehouse by part number,

location or system generated lot

In South Africa, KWE provides warehouse management services either on site at the customer’s locality or at facilities owned by KWE, around South Africa.

Manhattan SCALE is a warehouse management system that KWE RSA is implementing in our facilities across the country, and the system will also enable offsite client warehouse management.

Over 56 000m2

of warehousing in SA,and counting

Services include:

• Pick and pack• Product kitting• Kan ban preparation for line feeding support• Re-packing• Container deconsolidation/unpacking• Postponement logistics• Inventory cross dock• Vendor/supplier managed inventory• High value storage• Bond store and general store management• Temporary staffing

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Supply chain management services

At KWE, our business approach encapsulates a ‘Framework Evaluation Methodology technique’. Simply put, we know that one solution may not meet all customer requirements. We therefore place a high level of importance on accurately evaluating existing inventory flows within the supply chain and adapting where needed.

We provide a range of value-added services:

• Supply chain specialists• Supply chain strategy formulation• Inventory management

• Inventory forecasting for materials requirement and demand planning

• Freight and transport management evaluation audits

Throughout our global network, KWE is able to provide end-to-end supply chain management solutions according to our clients’ specific needs.

With state-of-the-art systems and technology, coupled with world class facilities, we are able to seamlessly co-ordinate the flow of cargo from factory to foundation.

KWE’s optimal distribution methods deliver high-level solutions for diverse challenges such as:

• Logistics consulting• PO (Purchase Order) management• Inventory control management• Assembly works• Reverse logistics (RMA): Return

Material Authorisation• Cross-dock operations• VMI (Vendor Managed Inventory)• Transport/forwarding management• Project management• Product inspection

• Procurement of materials• Vendor management • Processing products• Contract logistics• Long and short term

storage solutions• Handling merchandise repair and

returns, including waste disposal• Handling of orders• Inventory management and

information management• Supply chain rationalisation• Analysing results, proposing

and implementing continuously improved solutions

Our services include:

Our fully integrated approach

Logistics and Supply Chain Management

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Specialised Aerospace Logistics

Above the wing

Above the wing, we manage a fully integrated seamless supply chain for all in-flight passenger comfort and catering services. KWE’s advanced integrated materials management systems provide us with global visibility allowing us to accurately track and forecast demand, and subsequently replenish the airline’s global supply chain as and when demand dictates.

The in-flight operation is conducted on a global level integrating and utilising KWE’s vast global footprint. KWE RSA is now entering its 10th year as a trusted partner of the national carrier, and is expecting to expand our service offering; taking bold steps and industry firsts in further pioneering new and innovative concepts for the airline.

Our above and below wing supply chain concept was pioneered by KWE RSA, and is fully customisable to suit any industry’s supply chain needs.

Below the wing

Our below the wing or technical operation includes managing a 24/7/365 14 000m2 off site warehouse containing roughly 200 000 SKUs at the country’s major international airport. KWE handles all the inbound logistics of parts, components and other materials from 1750 suppliers around the world all within stringent customs and excise requirements to meet specific service tiers. We also move and control different aircraft engine types and fully assembled landing gears to and from this facility.

We assist with aircraft A, C and D maintenance checks, retrofits, cargo conversions as well as other offsite projects. Our operations are audited annually by the CAA, FAA, BV and EASA to name a few, and always pass with flying colours. KWE also handles and manages the total supply chain of a major aircraft tyre manufacturer which supplies the carrier.

This operation includes tracking tyres by serial numbers to ascertain their position on various aircraft at time of landing, usage and return for retreading as well as total spares management.

It is the aerospace industry which provides the best illustration of KWE RSA’s provision of their comprehensive logistics services.

“For the national carrier, we manage both above and below the wing operations on their behalf.”

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Africa Gateway Project Cargo

Through long-standing partnerships with our agents we have extensive coverage on the African continent.

This footprint allows us to offer a wide range of international and local services to our customers throughout Africa.

KWE have identified various countries in which we plan to establish our own footprint due to ever increasing demand and volumes moving to these countries.

All services are controlled from a central point at our head office in Johannesburg via a dedicated team of trade and operations experts.

• OOG / Heavy lift cargo• Sensitive / Specialised cargo • Hazardous cargo handling and transport,

and military equipment (weapons systems, arms and ammunition)

• Safety and Risk Management• Packing – normal and specialised

cargo packing• Technical planning for best practice project

design and execution (building logistics concepts, methodologys & complete turn-key solutions)

• Preferential arrangements with Global Underwriters

• Expert Marine Surveyors• Stevedore / Tally services• Route surveys and Route clearance

(superloads)• Port surveys• Site surveys• Specialised vehicles• Specialised services ie: on-site rigging. etc.

• Renewable energy• Oil and gas• Power generation

• Construction• Mining

• Specialised handling equipment ie: Craneage (cranes, hydraulic jacks, skidding and sliding)

• Pre-stowage and lashing / lifting calculations

• Vehicle escorts• Load masters• Air Charters, Sea Charters, etc.• Leveraged carrier negotiations due

to economies of scale (rates, space, extended free stays)

• Staged consignment ruling facilitation• Maintenance & repair / return logistics• 24 / 7 / 365 operations hotline

(Formulated around AOG philosophy)• Dedicated project co-ordinators

(all modes of transport, import, export and specialised knowledge)

Services for Africa:

• Freight Forwarding from South Africa to African Countries (air/sea/road)

• Freight forwarding services for all cross trade (air/sea/road)

• Emergencies – sameday air / road solutions (specific areas) (Dedicated, AOG, UDO)

• RIT / RIB shipments• Transit and border clearances• Door to door / DDP services

• Warehouse services - Packing / unpacking material control - Consolidation and deconsolidation

• Procurement• Route optimisation• Risk management• Transport insurance• Tracking and tracing • Reporting

Our African partners are carefully selected and we monitor their performance closely.Our demanding criteria include:

• High quality calibre for each market area• Demonstrated history of superior performance• Competitive pricing and wide range of solution options• Financial stability

A focus onAfrican countries and IndianOcean islands

KWE’s dedicated Global Project Cargo Divisions consist of teams of cross functional, experienced and professional Project Cargo Specialists.

We design and implement best practice solutions for the movement of your assets in transit starting with pre-project feasibility studies right through to delivery – on time, in full with administration complete.

Our solutions are further enhanced by our systematic approach to risk management that include critical checks and balances providing early warning systems.

These systems, in the hands of our people, empower you to make the right decisions to protect your investments and minimise costly errors. As your Global Logistics Partner, your expectations become our commitments.

Managing your risk the right way

KWE is currently active in the following industries:

Our services include but are not limited to:

Africa

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Our integrated network

KWE can become an indispensable, integrated global logistics partner to your business. By joining the KWE’s integrated network you’re partnering with a powerhouse who has connections all over the world.

KWE - Aiming to be a “True Global Logistics Partner”We want to continue to be a corporate group that provides reliable service and customer satisfaction to customers all over the world and aim for a truly abundant future.

We at Kintetsu World Express shall create new values and optimal environments through our provision of cargo logistics services in order to contribute to the development of a global community together with our clients, shareholders and employees.

Southeast Asia

BangledeshCambodiaIndiaIndonesiaMalaysiaMyanmarPhilippinesSingaporeThailandVietnam

BahrainBelgiumBeneluxCzech RepublicFranceGermanyIrelandItalyNetherlandsRussiaSaudi ArabiaSouth AfricaSwedenSwitzerlandU.A.E.United Kingdom

The Americas

Canada USABrazilMexico

Japan

Japan

Europe, Middle East & Africa

Japan

The Americas

East Asia & OceaniaSoutheast Asia

Europe, Middle East & Africa KWE Group

East Asia & Oceania

AustraliaChina Korea Taiwan

ISO 9001:2008KWE RSA is certified to the ISO 9001:2008 standards as prescribed by ISO. We have fully adopted the ISO 9001:2008 as the ethos of our company and use the quality elements defined by ISO, to create a business system and not a quality system.

Cargo Security: Part 108As a premier airfreight cargo company, we pride ourselves in being compliant to the many laws that govern the movement of cargo, not only in South Africa but also globally. We were one of the first agents in South Africa to be certified against the CAA’s Part 108 security policy. We continuously strive towards maintaining the highest possible standards when it comes to managing our customers’ freight.

ISO 14001Our certification for ISO 9001:2008 means we can now strive to obtain a certification in ISO 14001. As a business group, we enthusiastically embrace environmental preservation practices. Locally, we have already replaced our server infrastructure and effectively reduced electricity usage by approximately 60%. We have also committed to plant a tree for every container sent from Johannesburg to Durban.

C-TPAT & AEOKWE have been certified globally as C-TPAT (Customs trade pact against terrorism) compliant. This standard governs all cargo entering the USA, either by air or ocean. We do pride ourselves in ensuring that all cargo destined for the USA meets their stringent requirements such as ISF etc. We are also AEO (Authorised Economic Operator) compliant. The requirements are similar to C-TPAT and governs all cargo entering Europe.

Financial ComplianceAs a subsidiary of KWE Inc., a public entity listed on the Nikkei stock exchange, we are bound by the Financial Instruments and Exchange Law of Japan (JSOX). Whilst KWE RSA is audited against ISO 9001:2008, we are audited against JSOX as well, so as to ensure financial compliance across the group of companies, thereby protecting the interests of our shareholders, investors and employees respectively.

RA3 Agent,a South African First!The European Union have introduced, complimentary to the ICAO Annexure 17 Regulations (covered under Part 108 of the SACAA Regulations), security measures which cover air cargo or mail carriers operating into the EU from a third country airport. This means that from 1 July 2014 no cargo may be flown on an aircraft into the European Union without strict adherence to the measures that are required under these regulations.

In order to comply with the regulations airlines have already made written declarations of commitment to the EU, all forwarding, courier agents, airlines and consignors must become validated by an EU qualified validator accredited by an EU member state. KWE is fully aligned to these regulations and is officially a RA3 Agent.

Compliancy

Contact usContact:Head Office +27 11 573 5700 / Cape Town +27 21 380 2800Durban +27 31 460 8400 / Port Elizabeth +27 41 504 8800Lanseria +27 11 573 5731

Head Office address:Unit B, Wingfield Park, Jones Road,Jet Park, Boksburg, Gauteng

Postal address:P O Box 2713, Kempton Park, 1620, Gauteng

2015 EDITION

KWE RSA is proud to be certified as a Level 2 B-BBEE Contributing Value Adding Supplier and is committed to the transformation process as defined in the Broad-Based Economic Empowerment Act No 53 of 2003 and the Codes of Good Practice issued in terms of this Act. KWE RSA continues to employ skilled members from all sectors and runs an ongoing Learnership Training Programme, taking in Learners and putting them through various training courses, with the intent of offering employment after graduation. KWE RSA now has an emphasis on preferential procurement and enterprise development, with the view of dealing with smaller, black-women-owned businesses. KWE RSA has had a long standing business agreement with Keodirelang consortium and will continue to do so. The consortium recently changed their name to Amuugu Investments (Pty) Ltd.

Broad-Based Black Economic Empowerment Policy“South Africa’s first democratic government was elected in 1994, with a clear mandate to redress the inequalities of the past in everysphere: political, social and economic. Since then, government has embarked on a comprehensive programme to provide a legislative framework for the transformation of South Africa’s economy. In 2003, the Broad-Based Black Economic Empowerment (B-BBEE) Strategy was published as a precursor to the B-BBEE Act, No. 53 of 2003. The fundamental objective of the Act is to advance economic transformation and enhance the economic participation of black people in the South African economy.”

Source: http://www.thedti.gov.za/economic_empowerment/bee.jsp