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Published
Published
September
September
2023
2023

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

Our Philosophy

Universal Mission and Vision

Overview of the SENKO Group

Corporate Group Creating Future Trends
As a corporate group fostering people and supporting people’s lives, we contribute toachieve a genuinely productive global society by continuously challenging efforts tocreate new trends in terms of products and services that shift the future; centeringon our physical and commercial distribution business.

History of the SENKO Group

3

Review of Businesses (At a Glance)

5

Business Activities

7

Logistics
Trading & Commerce
Living Support
Business Support

SloganStrategies for Sustained Growth

Our Thoughts into a Mission & Vision

Moving Global
Go beyond logistics Make the world go round Revolutionize businessCorporate Values
Values that should be shared with all our group employees (IP CReD)

Feature: Manufacturing at the
SENKO Group17

Relationship between Business
Activities and the SDGs

21

A Message from the President

23

Medium-Term Business Plan

27

Foundation for GrowthPassionCommitment

Respect*In the abbreviation “IP CReD,” “IP” means “maintaining identity,” while “CReD” is Latin for “will, belief.”

1

SENKO INTEGRATED REPORT 2023

Diversity

Reference Guidelines
International Integrated Reporting Council (IIRC,
currently the IFRS Foundation) International
Integrated Reporting Framework
SASB (Sustainability Accounting Standards Board)
Guidance for Collaborative Value Creation (Ministryof Economy, Trade and Industry)

Promoting Sustainability Management

31

Environment

33

Social39

Scope of Report

Safety44

Governance47

The scope of coverage includes the activities of
SENKO Group Holdings Co., Ltd. and groupcompanies.

Health51

Reporting Period
This report covers business activities for the period
between April 1, 2022, and March 31, 2023.
However, some activities that took place after April
2023 are also covered.

Data Section

Integrity

Editorial Policy
In order to realize our vision, it is essential that weundertake corporate activities in accordance withthinking that leverages both financial andnonfinancial capital as well as timely, precisely
targeted decision-making. We believe that it is also
important that we disclose information about
strategy and corporate activities in a spirit of goodfaith to earn stakeholders’ understanding. This
report has been compiled to serve as acommunication tool that offers readers a
far-ranging, deep-reaching understanding of all of
the SENKO Group’s business activities, including
financial data as well as information about
environment, social, and governance (ESG)
initiatives, by presenting a multifaceted, integrated
description of how the Group will address social
issues through its businesses and what kind of value
it will create going forward. We’re committed tofulfilling the imperative of accountability bydisclosing information in a timely and appropriatemanner through this report as well as our corporatewebsite, securities reports, the SENKO Group
Report, and other tools.

Ten-year Financial and Nonfinancial
Highlights

53

Disclaimer

Financial Review

55

Consolidated Balance Sheets

57

Share Status and Company Profile

62

The SENKO Group provides no guarantee
concerning the outcome of the forward-looking
statements in this report as they will be affected byvarious factors, including unforeseen changes in
economic conditions.

SENKO INTEGRATED REPORT 2023

2

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

History of the SENKO Group

Embracing value creation beyond logistics
Continuing to contribute to people’s lives andthe development of society
Non-consolidated revenue (millions of yen)

One century has passed since the founding of Tomita Shokai, the SENKO Group’s forerunner, in 1916. The Group has expanded inboth its businesses and its performance by embracing the challenge of pioneering innovation in every era. It transformed itself intoa logistics and information company by introducing an operational system that integrates information and logistics. We continue torealize growth by pioneering businesses that contribute to people’s lives and the development of industry and society, for example
by providing services that integrate distribution and logistics and through our Living Support business, which meets the needs ofcontemporary society. As we look towards the next 100 years, the SENKO Group is more eager than ever to embrace challenges as
it strives to resolve social issues and create new value through its businesses.
1916
1946
1961
1965
1970
1973
1978
1980
1985
1990
1996
1997

Tomita Shokai is founded as a specialized distributor for Nippon
Chisso Hiryo.
SENKO Transport Co., Ltd. is established.
The Company is listed on the Second Section of the Osaka
Securities Exchange.
The Company pioneers the introduction of computers in the
distribution industry.
The Company launches a distribution (logistics) consulting service.
The Company changes its name to SENKO Co., Ltd.
The Company makes a full-scale entry into the house moving
business.
The Company starts implementing comprehensive
multi-functional warehouses (PD centers) with the opening of the
Nanko PD Center in Osaka.
The Company launches a delivery system for
mass-merchandisers/retailers and a distribution business for chain
stores.
The Company is listed on the First Section of the Tokyo Stock
Exchange.
Crefeel Koto, a traffic safety and distribution training facility,
opens in the city of Higashi Omi, Shiga Prefecture.
The Company launches a logistics center business in Dalian, China.

2004
2009
2011
2013
2014
2015
2016
2017

The Company enters the temping agency sector with theestablishment of S-TAFF Co., Ltd.
Tokyo Nohin Daiko Co., Ltd. becomes a subsidiary of the Company.
Smile Corp. becomes a subsidiary of the Company.
AST CORPORATION becomes a subsidiary of the Company.
Runtec Corporation becomes a subsidiary of the Company as it makes
a full-fledged entry into the cold logistics business.
Laem Chabang Logistics Center opens in Thailand.
Care Terrace Co., Ltd. becomes a subsidiary of the Company as it
makes a full-fledged entry into the nursing care business.
The Company changes its name to SENKO Group Holdings Co., Ltd.
and transitions to a holding company structure.
Nippon Marine Co., Ltd. and Eikichi Kaiun Co., Ltd. become
subsidiaries of the Company as it expands its marine transportbusiness.
Skylift Consolidator (Pte) Ltd. becomes a subsidiary of the Company
as it enters the international airfreight business.
Blue Earth Japan Co., Ltd. becomes a subsidiary of the Company as itenters the fitness sector.

1960

832
1970

1980

Ordinary profit (millions of yen)

696,288

2020
2021

2022
2023

Terauchi Co., Ltd. becomes a subsidiary of the Company as it expands its Living Support
business.
Self Grow Inc. becomes a subsidiary of the Company as it looks to accommodate increased
hiring of foreign human resources.
Cartas Co., Ltd. becomes a subsidiary of the Company as it expands its share in the home-use
paper wholesale industry.
ZEROBRANDS Inc. is established and develops a sustainable fashion network with the goal ofeliminating disposal of apparel products.
The Group acquires Chuo Kagaku Co., Ltd. and enters the Products Business.
The Group acquires Nissei Security Services Co., Ltd. and expands its general human resourcesbusiness.

26,151

227,692
180,552
125,165

6,232

4,207
4,581
1990

2000

2010

2023

1916

1950

1980

2000

2015

Founding of Tomita Shokai, theforerunner of SENKO

Development andexpansion of transport
structures

Transformation into a comprehensive
logistics company

Transition from a comprehensive logistics
company to a logistics information company

Becoming a group that creates the trends of the future

In 1980, we began the nationwide expansion of PD
centers, incorporating multiple functions such as storage,
shipping, and distribution processing. In 1985, we started
major home center operations.
In 1996, we opened Crefeel Koto, the Company’scomprehensive training center for transportation safetyand distribution in Shiga Prefecture. We have improved
education for drivers and forklift operators, and are further
boosting quality and productivity on site. In 1981, we hadalready established a local subsidiary in the United States,
and in 1996 we opened our first distribution center in
China as part of our full-fledged expansion overseas.

Expanded in Japan and overseas using logistic centers
equipped with a range of capabilities, and significantly
increased storage area. The Company also became fully
active in M&As, welcoming companies with strengths inapparel/fashion and frozen/chilled shipping to the SENKOGroup, in this way diversifying the logistics services it provides.
Even in Trading & Commerce, the Company added trading
company distributors and other companies to the SENKOGroup and broadened its business domain, for example byproviding integrated trading and logistics services.

Tomita Shokai was established in 1916 asa specialized distributor for Nippon Chisso
Hiryo, a chemical industry conglomerate. In
1941, the company name was changed to
Nicchitsu Unyu, and became a subsidiary of
Nippon Chisso Hiryo.
The post-war policy of breaking up
corporate groups known as zaibatsu led to
Nicchitsu Unyu being dissolved in 1946.
The Japanese character for sen (fan) used in
the name of the new company was areference to one element in the logo of theformer Nippon Chisso Hiryo, which showed
a Japanese “rising sun” on a folding fan.

SENKO Transport’s emblem at the time of its establishment

350,876

Consolidated revenue (millions of yen)

SENKO INTEGRATED REPORT 2023

In 1965, the company installed thefirst computer ahead of competitors,
and in 1970 began to further bolster
its information and proposal-writing
skills, for example by training logistics
consultants. In 1973, to express ourdetermination to take on thechallenges of businesses other thandistribution, the corporate name waschanged to SENKO Co., Ltd.

September 2016 marked the 100th anniversary of the Company. The company’s
name was changed to SENKO Group Holdings Co., Ltd. in April 2017 (as part of thetransition to a holding company structure), and a new corporate philosophy wasformulated. Today’s SENKO Group consists of five domains, each of which
continues to grow its own operations: Logistics, Trading & Commerce, Living
Support, Business Support, and Products.

Crefeel Koto
SENKO INTEGRATED REPORT 2023

4

Overview of the SENKO GroupAt a Glance

Building on the Logistics business, which comprises the basis for our growth, we’re taking advantage of Groupsynergies to develop business that make a positive impact on society, for example through our Trading & Commercebusiness, which integrates distribution and logistics, and through our Business Support business, which provides
advanced solution services. We're also creating and expanding businesses that deliver new value to people andsociety, for example by launching a new Products Business.

CO2 emissions*1 (land transport business)

268,288t-CO2

245,179

CO2 emissions per 1 million yenof revenue

0.98

Living Support

Business Support

Products

20companies

14

18

companies

9companies

4,065

t-CO2

RevenuebillionOperating profit
Ordinary profit

billionROE

Breakdown of revenue

billionRevenue

Business Support

5.6(Hundreds of millions of yen)

5,296

5,724

7.3%

64.7

Percentof totalPowersavings

Environmentally friendly
vehicles as a percentageof the fleet*4

92.3

%

Fuel
savings

%

51.7%

41.1%
*3 Value for SENKO Co., Ltd.

*4 Excluding private, non-sales vehicles.

6,963

Females as apercentage ofmanagement positions

27.3

10.7

(As of June 28, 2023)(As of March 31, 2023)

Females as apercentage of newly
hired graduates

Number ofblood donors

43.4

%

564

%

participants

1.5

%

%

Products

1.5%

Trading &Commerce

23.0

Governance

Safety Excellence
Workplace-certified sites(G Mark workplaces)

Logistics

68.3%

Operating profit
Ordinary profit(Hundreds of millions of yen)

196 199207 207215 222(Regular hiring in April 2023)

SafetyPercentage of
total revenue%

Operating profit and ordinary profit

5,700

Green distribution
modal shift rate*32022 (FY)2021

Social initiatives

187

Number ofcertified sites
Certification ratio

6,231

2020

Social%Living Support%

Net D/E ratio

2022 (FY)*2 Activities to reduce environmental impacts through the reuse and recycling of resources

Percentage offemale directors

billion

Net income attributableto owners of parent

kWh

Diversity¥696.3
¥25.5
¥26.2
¥15.3
10.0
1.05

22,15818,502 18,990

t-CO2

*2

Principal business indicators

2021

Circular economy(recycling-based society)2,100
Scope2
1,670(power savings)
Scope3 (recycling295
based society )Including 19 non-consolidated companies as of March 31, 2023

22,158,000

1.05

1.01

CO2 reduction activity results

Scope1(fuel savings)

companies

Renewable energy solar power generation

271,439 268,288

2020*1 Total, Scope 1 + Scope 2

t-CO2

Trading &Commerce

companies

Data Section

0.98

t-CO2/1 million yen

t-CO2

115

Foundation for Growth

Environment

Delivering new value to people and society: Businessdevelopment at the SENKO Group

Logistics

Strategies for Sustained Growth

248

261

255 262

100%

Nationwide certification
ratio for truck transport
workplaces

Vehicle accident
frequency rate*5

Occupational accident
frequency rate*5

0.859

1.983

%

%

50

%

1.771

0.572
0.563

32.8

36.4

Ratio of external
auditors

1.983

0.859

2020

Ratio of outside
directors

2021

1.696
2022 (FY)

2020

2021

2022 (FY)*5 Scope: SENKO Co., Ltd. and SENKO Group logistics companies(As of June 28, 2023)

ESG indexes for which SENKO has been selected2023 Constituent MSCI Japan *6
ESG Select Leaders Index
FY20195

FY2020

FY2021SENKO INTEGRATED REPORT 2023

FY2022

FY2023

FY2019FY2020

FY2021

FY2022

FY20232023 Constituent MSCI Japan Empowering *6
Women Index (WIN)*6 Neither inclusion in MSCI indexes nor use of MSCI’s logo, trademarks, service marks, or index names on this page should be construed to indicate the support, guarantee, or promotion of
SENKO Group Holdings Co., Ltd. by MSCI or its affiliates. MSCI indexes are the exclusive property of MSCI. The names and logos of MSCI and its indexes are trademarks or service marks of
MSCI and its affiliates.

SENKO INTEGRATED REPORT 2023

6

Overview of the SENKO Group

Logistics

Foundation for Growth

Data Section

Risk dispersion

Group

TOPICS

Combining proprietary strengths
to provide new services that go
beyond logistics

Integrated land/sea shipping company
Ohnami Corporation becomes part of the SENKO Group

Modal shift

Expanding domestic and overseas demand bystrengthening SENKO’s heavy cargo shipping network

We provide logistics solutions that take advantage of our
combined capabilities to customers in a broad range of industries
and sectors, including distribution logistics for general supermarkets,
drugstores, and apparel; housing and chemical logistics, both areas
where we have a long track record of success; and food logistics, amarket where we’ve built a nationwide network for cold (frozen andrefrigerated) logistics.
In addition to providing stable shipping services through a natural
disaster-resilient network served by our own ships, we’ve working toprovide strategic logistics services in support of customers andbusiness activities as a leading logistics environment company, forexample through early support for green logistics.

Facility
aggregation
Just-in-time

Principal companies

SENKO Co., Ltd. / Runtec Corporation / Tokyo Nohin Daiko Co., Ltd. /SENKO A LINE AMANO Co., Ltd. / ACROSS TRANSPORT Corp. /Nippon Marine Co., Ltd.

The SENKO Group offers integrated land/sea shipping
services for heavy cargo via multiple companies with heavy
cargo shipment and marine shipment businesses. In
February 2023, Ohnami Corporation, a former subsidiaryof Hitachi Zosen Corporation with integrated land/sea
shipping capabilities and a successful track record inservices including handling, storage, shipment, andcustoms clearance of heavy and oversize cargo, became
part of the SENKO Group. In addition to applying thecompany’s heavy cargo shipping, export, and packaging
expertise horizontally across the Group to expand its global
heavy cargo shipping business, we will look to leverage theGroup’s network to streamline shipping operations, forexample by utilizing round-trip and combined shipments.
In addition, Ohnami plans to partner with Group
companies to advance its mechanical engineering businessand to expand operations involving the shipment andinstallation of large structural components and precision
machinery.

Review of Businesses

Business strengths

Despite challenges including increases in the cost of electricity and fuel and a rapid decline in freight movements
during the second half of the fiscal year, operating revenues rose 35,267 million yen from the previous year to 475,833
million yen while segment profit rose 472 million yen to 23,748 million yen thanks to factors including efforts to growsales and revise prices and contributions from M&As.

Tapping proprietary strengths to provide new value to customers and society

Percentage of
total revenue

Logistics

Logistics(hundreds of millions of yen)(hundreds of millions of yen)

Revenue

Logistics

4,406

Operating profit

4,758

233

237

68.3%

Strength 1

Shipping expertise
specifically tailored tomeet industry needs
Distribution logistics

FY2022

FY2023*Segment accounting standards have changed.

SENKO INTEGRATED REPORT 2023

The SENKO Group has accumulated extensive shipping expertise for different industries over more than 100 years
since its founding. The quality of our logistics services is highly regarded. In addition, we’re helping improve customers’
corporate value by realizing efficient, low-environmental-impact shipping service through green logistics and an
integrated sea/land modal shift, a proprietary capability of the SENKO Group, which operates its own fleet of ships.
Strength 2

Logistics

7

Strategies for Sustained Growth

FY2022

FY2023

A network that’s resilient in theface of natural disasters
Providing integrated land/sea
shipping via our own fleet

Solving shippers’ business challenges

Value provided
to society
Providing newservices andChemical logistics

infrastructure that go

Housing logistics

conventional domain

Other logistics

beyond theStrength 3

Environmentally friendly green logistics

of logistics

Green logistics expertise
accumulated over many years
SENKO INTEGRATED REPORT 2023

8

Overview of the SENKO Group

Logistics

Strategies for Sustained GrowthFoundation for Growth

Data Section

Group

Distribution logistics

Housing logistics

Percentage of total revenue

Percentage of total revenue

59.7%

13.0 %

Distribution logistics

59.7%¥284.2 billion

Logistics
business¥475.8 billion

Logistics
business¥475.8 billion

Mass retailers, retailers, food, fashion, etc.

Homebuilder products, associated materials, etc.

Building on our logistics track record for chain store operators, we
provide optimal logistics solutions for customers in every segment of the
distribution industry. In fashion logistics, we provide seamless capability
from overseas production to domestic retail with product management,
logistics processing, and quality control (QC) operations.

Our housing logistics business has accumulated a leading track record as
it’s developed alongside progress in industrialized housing. We built TGC-J,
a proprietary logistics system that integrates logistics and information.
Moreover, we earn customer trust with a variety of services, including joint
shipments, just-in-time shipments, and heavy-cargo delivery.

Chemical logistics

13.0 %¥61.7 billion

Other logistics

Percentage of total revenue

Percentage of total revenue

18.7%

8.6 %

Logistics
business¥475.8 billion

Logistics
business¥475.8 billion

Resin raw materials, resin molded products,
processed goods, etc.
Chemical logistics

18.7%¥89.2 billion

9

Housing logistics

SENKO INTEGRATED REPORT 2023

Taking advantage of chemical logistics expertise accumulated since ourfounding, we offer a comprehensive range of operations, from raw
material procurement to order processing, internal plant logistics, storage,
and delivery. We also offer comprehensive outsourcing operations withplanning and management department functions, for example creation oflogistics budgets and development of supply/demand plans.

Other logistics

8.6 %¥40.7 billion

Services for individuals and corporations,
hospital relocations, etc.
We offer a pleasant moving experience designed to ensure peace of mind
by directly connecting domestic and overseas facilities for individuals as well
as office relocation and other services for corporations. We also leverage ourlogistics technologies in support of hospital relocations and patient transfers
as part of a suite of reliable, fine-grained relocation services that ensure nointerruption in hospital functions, earning high praise in the process.
SENKO INTEGRATED REPORT 2023

10

Business design

Trading &Commerce GroupOperating a global Trading &Commerce business that
integrates logistics anddistribution in the pursuit ofmaximum efficiency

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

TOPICSInternational
logistics
solutions

The Group launches the industry’s first sustainable fashion platform

Establishing a new company and helping partners eliminate
disposal of fashion products

Our commerce business provides support for internationaltransactions through the import and export of customers’ products
and raw materials.
In every business and area of operations, from the wholesale ofalcoholic beverages and paper products to the sale of food andlogistics-related products and the sale of fuel using fuel cards, wework to maximize efficiency by integrating logistics and information
systems. Our goal is to create new businesses by connecting adiverse range of supply chains and businesses while moving beyond
the framework of conventional logistics businesses.

Wholesale(alcoholic beverages
and paper)

Logistics ICT“Is it possible to reduce the volume of products targeted
for disposal as surplus inventory?” ZEROBRANDS Inc. wasestablished to resolve this issue as a logistics company
that provides logistics services to fashion companies.
In August 2022, the new company began building
the industry’s first platform to incorporate productremanufacturing, resale, and recycling functions. It plans
to work closely with companies that share its philosophy,
including by developing joint logistics services extending
from product returns to resale, partnerships with inventory
sales channels, and administration of e-commerce sites.
By connecting a diverse range of supply chains andbusinesses, ZEROBRANDS will create a new business that
contributes to the development of a sustainable society bytransforming resold products into valuable offerings.

Principal companies

SENKO Shoji Co., Ltd. / AST CORPORATION / Smile Corp. / AZFIT Co., Ltd. /Marufuji Co., Ltd. / SENKO International Trading Co., Ltd.

Review of Businesses

Business strengths

Despite the contribution from Cartas Co., Ltd., a home-use paper wholesaler that became a consolidated subsidiary
last fiscal year, and efforts to revise prices, grow sales, and improve the cost picture, factors including declining demandfor packaging materials used in takeout and delivery services and rising purchase price weighed on performance as
operating revenues rose 13,697 million yen from the previous year to 159,821 million yen. Segment profit fell 26 million
yen to 2,421 million yen.

The SENKO Group’s
approach of integratingproducts and logistics
connects customers to theworld.

Trading & Commerce

Percentage of
total revenue

Trading & Commerce

Trading & Commerce(hundreds of millions of yen)(hundreds of millions of yen)

Revenue

Trading &Commerce

1,461

Operating profit

1,598

25

24

23.0%

FY2022

FY2023*Segment accounting standards have changed.

11

SENKO INTEGRATED REPORT 2023

FY2022

FY2023

SENKO discovers business
opportunities and procures
products from various suppliers.
Taking advantage of Group
companies’ logistics expertise, wehelp craft and successfully executebusiness designs.
From production plants to small
retail shops, we realize optimal
supply chain management (SCM)
through integrated logistics
operations and proprietary,advanced IT systems. The SENKOGroup’s approach of integratingproducts and logistics in its
businesses provides comprehensive
support for customers’
development of their businesses.

Business design

Rationalizing operations
and logistics

Trade andcustoms
operations
Support for
procurement
and purchasing
Specialized
tradingcompanies

Marketing
Product planningand purchasing

Logistics
ICT

Systems
solutions
Material handling
deployment
supportBusiness
supportClient companies
Distribution and retail,drugstores,
home centers,
EC businesses

Contact centers
Other

Logistics network

Joint shipping, logistics processing, inventory control

Execution
supportSENKO INTEGRATED REPORT 2023

12

Regional
revitalization

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

Living SupportGroup

TOPICS

Helping create communities where
everyone can lead a fulfilling life withpeace of mind by positioning ourselvesclose to consumers’ lifestyles

Striving to further enhance Living Support services

Support for the
next generation

We entered the Living Support business to meet social needs as acorporate group that supports people’s lives. Group companies’
businesses earn praise for contributing to the sustained developmentof local communities, including operating sports gyms and fitness
programs that focus on health in an era when people are living into
their 100s, providing nursing care and nursing services, operating
agricultural businesses that contribute to regional industry and job
creation (plant factories), and offering services in areas like houseworkand childcare.
Going forward, we’ll work to expand our business domain andincrease the sophistication of our services so that we can support
consumers throughout their lives.

HealthPrincipal companies

An era in whichpeople live into
their 100s

Care Terrace Co., Ltd. / Blue Earth Japan Co., Ltd. / Venus Corporation /Terauchi Co., Ltd. / Procare Co., Ltd. / Senko School Farm Tottori Co., Ltd.

ARS Co., Ltd. operates a nationwide business that
dispatches specialized staff to deal with problems thatdemand urgent service, including electrical andplumbing issues and problems involving locks andkeys. Other businesses encompass a broad range of
operations, including dispatching ARS employees andstaff from some 3,000 partner companies nationwide
to provide virus and bacteria sterilization,
housecleaning, pest extermination, and related
services and developing and administering an online
service that pairs customers with service providers.
For ARS, the benefits from joining the SENKO Group
include the ability to expand its in-house facilities anddevelop new corporate systems. The company plans
to develop a full line of lifestyle services, for example
by having its call center accept orders forhousekeeping and other services provided by otherGroup companies.

Roles of the business

Thanks to factors including growth in customer volume and store foot traffic as a result of the post-pandemic
normalization of daily life and contributions from new stores and M&As, operating revenues rose 10,172 million yen
from the previous year to 38,985 million yen, while segment profit rose 894 million yen to 186 million yen.

Responding to social needs:
Putting down local roots andsupporting consumers’
lifestyles

Living Support

Living Support(hundreds of millions of yen)(hundreds of millions of yen)

Revenue

Percentage of
total revenue

390

LivingSupportOperating profit

288

2
-7
FY2023

5.6%
FY2022

FY2023*Segment accounting standards have changed.

SENKO INTEGRATED REPORT 2023

FY2022In our Living Support business, we
strive to identify trends in society anddiscover new social value. The SENKOGroup is committed to making a
positive impact on society by
redoubling investments centering on
businesses related to health, lifestyles,
and food in a way that meetscontemporary social needs.
We will also accelerate the creationof businesses and new services that fit
into consumers’ lives while maximizing
synergies with group companies. In thisway, we will contribute to theextension of health lifespan, enrichnursing care and social welfare, andrealize sustainable local communities.

ues and soci
al n
l iss
a
n
ee
o
i
d
eg

Agriculture

Sports gyms
Fitness

GeneralwholesaleNewbusinesses
that precisely
target changes insociety andlifestyleneedssReview of Businesses

Living Support

13

ARS Co., Ltd., a provider of urgent services, joins the SENKO GroupR

Plant factories

ChildcareHousework
serviceNursing care

Other

Points ofcontact
withconsumers

Business development that takes
advantage of the Group’s strengths(1)
Resolvingsocial issues(2)
Diversifying
businesses(3)
Connections withother businessdomains
SENKO INTEGRATED REPORT 2023

14

Resolution oflogistics issues

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

Business SupportGroup

TOPICS

Optimizing logistics throughsolution consulting, ICT support,
and other services while creating
logistics services that increasecustomers’ corporate value
To realize an optimal logistics system that accommodates a diverse
array of customer needs, we’re developing a logistics consulting
business as well as an information systems business that develops
and administers IT solution systems.
We're also enhancing business process outsourcing (BPO) services
that let businesses outsource certain operations, for example contact
center operations, for staffing agencies and mail order businesses.
These services provide omnidirectional support for customers’
business activities, for example by resolving issues like labor shortages
and allowing them to focus on core operations that create value.

BPO(Outsourcing)

Expanding the domain of SENKO’s Business Support Business

Expanding SENKO’s human resources business by acquiring asecurity company

Temping andeducation
Contact centers

Principal companies

The Group is working to expand its businesses into avariety of industries and sectors that require humanresources by establishing a human resources business.
Building on the previous addition of two temporary
staffing agencies that focus on foreign workers, theGroup in February 2023 acquired all shares of Nissei
Security Services Co., Ltd., which provides traffic control
and guidance for movements of heavy equipment at
major general contractors’ construction sites andsecurity for universities and other customers.
Going forward, the company will meet customers’
security needs, for example at the Group’s logistics
facilities and housing manufacturers’ construction
sites, while strengthening its recruiting capabilities
against the backdrop of the trust enjoyed by the
SENKO Group. In addition, it plans to develop a generalhuman resources business to help a diverse range ofhuman resources contribute to society by expanding
its security and temporary staffing businesses.

Logi Solution Co., Ltd. / SENKO INFORMATION SYSTEM Co., Ltd. / Senko
Real Estate Co., Ltd. / S-TAFF Co., Ltd. / Senko Business Support Co., Ltd.

Review of Businesses

Business strengths

Thanks to factors including efforts to grow sales and improve the cost picture and contributions from M&As, operating
revenues rose 3,107 million yen from the previous year to 10,733 million yen, while segment profit rose 152 million yen
to 1,252 million yen.

Offering overall optimization for customers’ business activities (value chains)

Business
Support

11

76

13

1.5%

Contact centers
Form/document processing

Staffing
Site acquisition
ICT support
FY2022

FY2023*Segment accounting standards have changed.

FY2022

FY2023Foreign worker employment support
Marketing services
Technical training

Infrastructure
Human resources andlabor management
Technological development
Procurement

Improving the corporate
value created by customers’core operations

107

Datacenters

Services

Operating profit

Sales
Marketing(hundreds of millions of yen)

Shipping logistics(hundreds of millions of yen)

Manufacturing

Business Support

Revenue

Percentage of
total revenue

Principal activities

BPO services offeredby the SENKO Group

Business Support

Purchasing
logistics

Business Support

The SENKO Group is uniquely capable of offering comprehensive proposals outlining optimal supply chain management(SCM) that integrate logistics, information, and distribution. We support the streamlining of management throughoutsourcing of business processes and various issues encountered in the course of pursuing business activities. We offer adiverse array of high-quality solution services, including staffing, technical training, ICT support, and business site acquisition.

Support activities

15

SENKO INTEGRATED REPORT 2023

SENKO INTEGRATED REPORT 2023

16

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

Feature: Manufacturing at the SENKO Group

Entry into the Products
Business

Manufacturing at Chuo Kagaku (1)Chuo Kagaku’s approach to product development is founded on a constant focus on how food culture and consumers’
lifestyles can be improved through food containers, a goal that it embraces as its mission. In product development, which canbe broadly divided into material development and container shape and design,
Chuo Kagaku emphasizes the primacy of materials. As a result, the company isable to create products that communicate a friendly, approachable ambiancewhile stimulating consumers to purchase them; examples of this ability include its
creation of the first microwave-safe containers and its development of productsthat retain an attractive appearance even when printed on (thanks to a glossy
surface and design that attracts consumers’ attention). It also engages in three
types of recycling–chemical, material, and thermal–while giving top priority tocustomers’ safety and peace of mind.

The SENKO Group recently launched a new Products Business Promotion HQ. to draw
on its involvement in an array of supply chains, from manufacturing to sale, which is a
key strength of its flagship Logistics Business.
This business will entail an effort to strengthen SENKO’s manufacturing operations
centering Chuo Kagaku Co., Ltd., which recently became part of the Group.

Review ofBusinesses

Chuo Kagaku became a consolidated subsidiary during the fourth quarter of the year, during which ProductBusiness revenue totaled 10,604 million yen for an operating loss of 180 million yen. During the fiscal year
ended March 2023, Chuo Kagaku generated operating profit of 446 million yen on operating revenues of
48,505 million yen.
Products Business(fiscal year ended March 2023)

Percentage of total revenue

Products Business(fiscal year ended March 2023)

Revenue (hundreds of millions of yen)

106

Products Business(fiscal year ended March 2023)

Operating loss

(hundreds of millions of yen)

Products
Business

1.5%

Businesses and history
During the more than 60 years that have passed since its 1961 establishment as a pioneering food packaging
and container manufacturer dedicated to supporting rich and fulfilling food culture through a focus on theconcepts of “protection, support, and variability,” Chuo Kagaku has played an essential role in people’s lives bymeeting the needs of society in every era. Lifestyles have changed significantly over time, but the company’s
food packaging and containers have served as essential products in a variety of settings thanks to its ability tosupply products that meet the needs of each era by ensuring consumer safety and peace of mind from thefactory floor to the dining room table while making possible convenient lifestyles, safeguarding food producthygiene, maintaining quality, and providing variability.

Commitment to its philosophy
Chuo Kagaku has embraced “Ingenuity from Everyone” as its corporate philosophy. This philosophy has been
passed down intact from founding president Koji Watanabe, and at its essence calls on all employees to think
for themselves. Behind that philosophy lies a desire for each and every employee to offer up ideas in a varietyof business settings as if they were an executive, including not only improving the company's performance, butalso ensuring safety and peace of mind for themselves andcustomers.

Market environment in the company’s businessdomains
Currently, plastic is facing numerous challenges. That said,
this tough, lightweight, and inexpensive material plays anessential role in food distribution and embodies food culture
itself. Accordingly, Chuo Kagaku is working to make all
possible improvements through its businesses in order tominimize the material’s environmental impacts.

17

SENKO INTEGRATED REPORT 2023

Manufacturing at Chuo Kagaku (2)Supplying products that draw on its strengths

Chuo Kagaku’s strengths include the technological and design capabilities that allow it to perceive market needs quickly andstart developing materials to meet them as well as the human resources who make that possible. Backing up thosetechnological capabilities are the accumulation of expertise in each process andsupply chains that let the company realize customer feedback immediately acrossoperations extending from the procurement of raw materials and other inputs
from suppliers to material development, marketing (product planning anddevelopment), manufacturing, quality control and assurance, sales, logistics (bymeans of which products can be delivered directly to customers), and subsequent
recycling. To date, the company has drawn on these strengths to supply a broad
range of containers and other products. Going forward, it will continue to leveragethese strengths to supply a variety of products.

Manufacturing at Chuo Kagaku (3)-2Company
overview

Manufacturing principles and focus

China business: A key segment for Chuo Kagaku

Chuo Kagaku saw the potential in the Chinese market, which is home to the world’s largest population, early on and launchedits business as the country’s only foreign-based plastic food packaging and container manufacturer in 1994. Today, a quarterof a century later, its technological capabilities, design appeal, and commitment to delivering quality that ensures safety andpeace of mind as a Japanese company have earned it the trust of customers in the
Chinese market. Plastic food packaging and containers play an essential role inpeople’s dietary lives, but the need for environmental responsibility grows greaterwith each passing year in China, too. By developing environmentally friendly
materials and products and offering a broad line of environmentally responsible
products, Chuo Kagaku meets its customers’ needs as a general manufacturer ofpackaging and containers.
Going forward, it will strive to expand the scale of its operations as a core SENKO
business as it continues to export containers manufactured in China to othercountries worldwide, with a particular focus on Southeast Asia.
Principal environmentally
responsible products of Chuo
Kagaku’s Chinese business•Heat-resistant biodegradable plastic (T-PLA) (developed using proprietary technology from the Chinese business)•Products that meet various market needs, for example biodegradable plastic bags and molded-pulp containers•Paper containers (non-plastic containers that are manufactured in-house)•Cutlery manufactured by a joint venture using natural materials (recently launched)

Manufacturing at Chuo Kagaku (4)Synergies with the SENKO Group

Chuo Kagaku became part of the SENKO Group in December 2022. The
acquisition is expected to yield synergistic effects since the company’s philosophy
resonates with the SENKO Group’s commitment to improving consumer
convenience. One such effect of particular significance will be the streamlining of
the businesses operated by the Group, which has a core focus on logistics, throughstrengthened relationships and partnerships with its customers.
A secondary effect will be to empower Chuo Kagaku’s employees to pursue more
ambitious dreams thanks to access to the SENKO Group’s capital, which will boost
their motivation in a meaningful way. Going forward, Chuo Kagaku will work to playa central role so that it can contribute to the Group’s new Products Business.
SENKO INTEGRATED REPORT 2023

18

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

Feature: Manufacturing at the SENKO Group

Chuo Kagaku’s manufacturing facilities

Environmental initiatives at Chuo Kagaku

Chuo Kagaku operates eight plants in Japan and three in China. The facilities manufacture food packaging
and containers with processes ranging from sheet molding to container forming, while thoroughly managing
safety and hygiene.

Sheet molding

02

Sheet molding

Raw materials are added to a mixer andextruder to manufacture raw sheet material
that will be used to produce food packaging
and containers while adding various additives.

Raw material
hopper

Mixer

Extruder03

Winding of raw sheet

The raw material is wound by awinder in the quantities
required for the next process.

Container formingto
06 Supply
cutting machine

Containers areformed by applying
dies to raw sheet togive it the desired
shape.

Infrared heaterDie-forming
machineDie-formed containers
are sent to a cutting
machine.

Cutting machineDie

Raw sheet

07 Cutting

Forming
Blade

Meeting customers’ needs
Chuo Kagaku leverages extensive experience andexpertise to offer an array of food packaging andcontainer products that meet customers’ needs,
starting with the development of safe, environmentallyfriendly materials.

2013

2020

About
222,000 tons

2030 target*Estimates are based on Chuo Kagaku’s collection of ESG
data, disposal of used products, and other information.
Specific values may change going forward, for example
due to the revision of categories used in calculations.

Products

08

Increase in proportion of environmentally
responsible products soldIncrease in volume of functional containers soldMeasures to reduce food waste(versus
FY2013)

100%
-5
7
%

×

8

×

2. Environmentally responsible materials and products

05 Container
forming

Raw sheet produced by the
sheet molding process is
supplied to a die-forming
machine.

About
284,000 tons

Transition to lighter-weight PSP,
OPS, and C-APG products

Development of environmentally
responsible materials and products

46%
reductionby 2030About
411,000 tons

Additives
Raw sheet

04 Supply of raw sheet●Greenhouse gas (CO2) emissions
by Chuo Kagaku

Transition to C-APG for PET products

Resource recycling

Unused raw materials andrecycled offcuts discarded at theplant are combined for use in
the manufacturing process.

Automatic packaging of cut
containers

Cut containers are inspected for misaligned cuts
and other defects and then packaged if none arefound.

09 Packing and shipment

Packed cartons are loaded onto product-specificpallets. A specialized machine scans the barcodeson the cartons’ labels and sends them on to theshipment process.

SENKO INTEGRATED REPORT 2023

Chuo Kagaku has established its own Basic Policy on the Environment andCorporate Code of Conduct, and it’s implemented an environmental
management system to help ensure it complies with local environmental laws
and ordinances.
In addition, the company is taking a range of steps to help realize acarbon-neutral society and meet the Japanese government’s target (of reducing
greenhouse gases by 46% from FY2013 levels by 2030), including by utilizing
recycled materials and biomass-derived raw materials, adopting lessenergy-intensive manufacturing processes, boosting shipping efficiency,
reducing plastic waste, and developing products that help decrease food waste.

■Chuo Kagaku initiatives to reduce greenhouse gas emissions(FY2030 targets)

Winderof raw
01 Additionmaterials

19

1. Environmental management

Formed containers aresupplied to a cutting
machine, which cuts rows of
products at once.

Chuo Kagaku is working to develop and increase use of the following environmentally responsible materials and products to help
reduce CO2 emissions and food waste:•TALFA, the manufacture of which generates about 49% fewer CO2 emissions (compared to the company’s polypropylene) by using
natural talc procured directly from a mine located adjacent to Haicheng Chuo Kagaku in China•C-APG, the manufacture of which generates about 27% fewer CO2 emissions (compared to the company’s A-PET) by allowing usedplastic beverage containers to be recycled into plastic food packaging and containers•MAPKA, a material that uses paper as its principal raw material and generates about 41% fewer CO2 emissions (compared to thecompany's polypropylene) thanks to its use of at least 50% biomass materials•Biomass-derived materials, the manufacture of which generates about 7% fewer CO2 emissions (compared to the company's CF orCT) along with bio-CF and bio-CT by using sustainable, plant-based organic resources•Lightweight containers made of foamed materials, which help reduce environmental impacts by lowering the amount of petroleum
resources used in containers•Functional containers (gas-barrier packaging and airtight packaging technologies), the development of which helps reduce foodwaste by lengthening shelf life

For more information about Chuo Kagaku, please see the URL to the right. >>>URL

https://www.chuo-kagaku.co.jp/

More about SENKO Group manufacturing
Okumura Co., Ltd.

URL

https://www.okumura-int.co.jp/

This respected manufacturer of slippers was founded more than 120 years ago. It sells high-value-added products
developed based on its philosophy of soothing, healing, and conditioning through a network of sales channels that
extends beyond department stores, chain stores selling miscellaneous products, and drugstores to encompass premium
interior furnishings shops, resort hotels, and high-end restaurants.

Takano Machinery Works, Co., Ltd.

URL

https://www.takanokikai.co.jp/

Since its founding in 1976, Takano Machinery Works has manufactured and sold printing machinery and sold printing
materials. It focuses on selling plates for letterpress printing and on manufacturing water-developed plate-making
equipment, and it ships more plate-making equipment to domestic customers than any other Japanese manufacturer.
It also supplies about 30% of the Japanese market for photosensitive resin plates.

SENKO INTEGRATED REPORT 2023

20

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

Relationship between Business Activities and the SDGs
The SENKO Group aims to resolve social challenges
and create new value through its businesses, basedon the core approach that economic activities can beachieved with a healthy global environment and agood relationship with local communities.

SDGs and the business activities of the SENKOGroup, which fosters professional development
and supports consumers’ lifestyles

Priority
SDG
themes of
the
SENKO
Group

Trade / Oil sales / Sales of
convenience goods, food, andalcoholic beverages, etc.

Nursing and housework services /Fitness / General wholesale andretail / Childcare / Restaurant
operations / Agriculture, etc.

Crefeel Koto

Business Support

Trading &Commerce

Living Support

Traffic safety / Human
resources training / Children’s
Traffic Park, etc.

Logistics consulting / IT solutions / Contact center
operations / Temping services / Hotel operations /Real estate, etc.

Priority
SDG
themes of
the
SENKO
Group

Logi stics
Shipping / Storage /In-factory operations /Logistics processing /International logistics, etc.

Products

Manufacture of food containers /Manufacture of housewares, etc.

Economic level
Providing new value for society through business operations

Businesses that nurture people and support their daily lives

Through our businessactivities, we look to resolve
social issues throughinitiatives that interconnect
with sustainability measuresand to contribute to therealization of a barrier-freesociety.

Society level

We promote dialog and cooperation with the local community and various stakeholders
associated with the SENKO Group to build a good relationship with society.

Human resources andorganization as the foundation

Cooperation with society

Sustainability
Promoting a green
transformation incollaboration withcustomers

Providing resilient
logistics service thatcan withstand natural
disasters

Developing a Living
Support business thatoffers nursing care,childcare, and healthservices

Developing a full line of Manufacturing
lifestyle support
products that support
servicesdietary convenience

Social initiatives
Safety initiatives
Health initiatives

Sustainability of the global environment

21

SENKO INTEGRATED REPORT 2023

Reducing the energy use and carbon
dependency of shipping infrastructure(Adopting liquefied natural gas-powered trucks
and electric trucks)

Recycled plastic
pallets

Building workplaces
that make the most of
human resources’
diversity, individuality,
and abilities

Children’s Traffic Park:A park where kids canraise their traffic safety
awareness while having
fun with their families

Initiatives to raise driverawareness of theimportance of reducing
the number of traffic
accidents

Environmental level
Sustainability

Installing solar powerand energy-saving
equipment at PD
centers

Fostering thedevelopment of people
and business through
SENKO University

Cooperating with the
Osaka Bay
Environment
Restoration Project

Environmental
initiatives

Minimizing the environmental impact of business activities
Recognizing our responsibility for energy consumption and greenhouse gas
emissions as a logistics company, we’re working to maximize understanding
and related reductions.

SENKO INTEGRATED REPORT 2023

22

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

A Message from the President

Providing new value by embracing
large-scale manufacturing as a pillarof growth
SENKO Group Holdings Co., Ltd.
President and Representative Director
Chairperson, Sustainability Promotion Council

our business domains as we pursue manufacturing witha focus on household goods and other familiar lifestyle
products now that Chuo Kagaku Co., Ltd. has become
part of the Group.
At the same time, the risks faced by our businesses
include Japan’s aging population and shrinking birthrate,and it will be necessary to take steps including utilizationof foreign workers in order to deal with the shrinking
labor population, which is expected to decline by 1
million people annually. Our approach will be to expand
our businesses globally through M&As in an effort toaccommodate changes in the market, including bybolstering our overseas businesses with a focus on
growth in the forwarding and trading businesses.

Reorganization
About the Group’s vision (philosophy) andgoals

Approach to changing markets, risks, andopportunities

As a corporate group with highly public businesses
that involve fostering people and supporting their lives,
the SENKO Group has embraced the goal of becoming a“group that creates the trends of the future” by fulfillingits mission of contributing to achieving a genuinely
productive global society by continuously challenging
efforts to create new trends in terms of products andservices that shift the future, with a focus on its physicaland commercial distribution business.

Even as the economic environment in which the Group
operates experiences a gradual recovery accompanied
by a progressive reversion of socioeconomic activities toa “new normal” following the COVID-19 pandemic, ourview is that challenges remain, including abrupt foreignexchange rate fluctuations against the backdrop of
soaring energy and food prices worldwide and fiscal
tightening in Europe and the United States.
While global inflation and rising energy costs drive
concerns about the risk of a downturn in overseas
business conditions, we expect gradual economic
growth thanks to factors including the ongoing recovery
from the pandemic and improvements in theemployment and income environment.

We express that philosophy in our slogan of “Moving
Global: Go beyond logistics, make the world go round,and revolutionize business.” We've earned trust as acompany and contributed to society in general and all of
its people, including shareholders, customers, andemployees, by expanding our business activities toinclude a broad array of logistics operations–not only
manufacturing, but also sales, centering on our logistics
centers, as well as living support.

23

SENKO INTEGRATED REPORT 2023

While rising electricity, fuel, and prime costs will
impact performance, we believe it will be possible to deal
with these challenges by working hard and transitioning
prices to appropriate levels. We're also looking to expand

We revamped some of the structures underlying ourorganization in April 2023. The International Business
HQ., which had been part of SENKO Co., Ltd., ourlogistics operating company, was transferred to SENKOGroup Holdings, and its name was changed to theInternational Business Operation HQ. These changes
were made to strengthen our management structures bymaking separate departments responsible for domestic
and international logistics, and they're part of an active
effort to spur the globalization of not only Logistics, butalso Trading & Commerce and other business segments.
Our approach will be to take robust action to realize
further growth in international businesses throughstrong partnership among businesses under theleadership of the International Business Operation HQ.

Launching the Products Business Promotion
HQ. as a new business
The Products Business Promotion HQ. was launched inJune 2023. The Group’s flagship Logistics Business isinvolved with an array of supply chains, frommanufacturing to sales. Drawing on that strength, welaunched the Products Business as our fifth corebusiness, augmenting Logistics, Trading & Commerce,
Living Support, and Business Support, and acquired Chuo
Kagaku Co, Ltd. through a tender offer for its shares.
The decision was driven by the expectation that theacquisition of the company, a manufacturer of foodpackaging and containers, would serve to improvelogistics while expanding sales channels, in part due tothe significant overlap in customers between Chuo
Kagaku and the SENKO Group.
As we move to embrace large-scale manufacturing, weplan to expand the domain of household goods in the
future, and we see considerable promise in productcategories handled in large volumes by the Group, forexample apparel. Reflecting the large number of inquiries
from manufacturers in Southeast Asia concerning capitaland operational tie-ups and related topics, the Products
Business Promotion HQ. will work with the newly formed
International Business Operation HQ., which is responsible
for business domains other than logistics, to actively
pursue manufacturing on the global stage.

Building on 20 consecutive fiscal years of
rising revenue and 14 consecutive fiscal
years of rising ordinary profit
During the fiscal year ended March 2023, the Groupgenerated revenue of 696.3 billion yen, up 73.1 billion
yen from the previous year. Operating profit rose 760
million yen to 25,540 million yen, while ordinary profit
rose 50 million yen to 26,150 million yen.
Despite a variety of challenges including an abrupt
decline in logistics volume from January to March 2023,
the Logistics Business realized its 20th consecutive fiscal
year of increased revenue and its 14th consecutive fiscal
year of increased ordinary profit as efforts to grow sales
and revise prices combined with contributions from new
subsidiaries to fuel performance.
SENKO INTEGRATED REPORT 2023

24

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

A Message from the President

At the same time, continuous progress in M&As helped
boost revenue, and ongoing development by logistics
centers also contributed to increased sales. Although
we're planning for revenue of 790 billion yen andoperating profit of 29 billion yen during the fiscal year
ending March 2024, we expect to exceed future revenue
targets thanks in part to potential large-scale M&As.

Focusing on sustainability management
In the face of calls to realize a sustainable society on a
global scale, companies can no longer earn praise fromsociety just by generating profits.
The Group strives to deliver new value by connecting
people and society through its various businesses in linewith its basic policy of helping realize a sustainable
environment and society and working to achievesustained growth for the Group.
Companies are being called upon to manage theiroperations in a way that values environmental protection
and diversity, which is one of the values embraced by theGroup’s corporate philosophy, among other priorities,

and one of the characteristics that distinguishes theGroup is its concerted pursuit of sustainability activities,
for example in an effort to realize sustainable
management throughout its supply chains, including
both customers and Group companies.
Also distinguishing the Group is its pursuit ofpioneering human resources education at Crefeel Koto,in which it invested three times the profit it was
generating at the time, some 30 years before
expressions like human capital gained currency. Similarly
defining are the Group’s efforts to augment ESG
management with a health (H) component so that
employees’ health can be maintained and improved not
only during their employment with the company, but
throughout their lives.

Increasing SENKO’s corporate value
Unfortunately, our price-to-book ratio (PBR) is on
track to fall below 1, but we will continue working torealize management founded on awareness of capitalcosts and share value. Since PBR can be considered to be

the product of return on equity (ROE) and price-earnings
ratio (PER), it's necessary to foster awareness of theneed to improve profitability (ROE) and PER (shareprice).
With regard to improving profitability, we will boost
our operating profit margin from the current level ofabout 3.7% to 4.5% by achieving operating revenue of 1
trillion yen and operating profit of 45 billion yen in
FY2027, the final year of our Medium-Term Business
Plan.
With regard to increasing our share price, we’re
working to maintain and improve payout ratio levels.
With regard to the payout ratio, our basic policy
concerning the allocation of profits declares, “While
securing the internal reserves necessary for futurebusiness development and to bolster our management
structure, ... [we will issue] stable dividends that arelinked to business results.” Our goal is to maintain apayout ratio of at least 40% by FY2027. Our goal is toincrease PBR beyond 1 as our profitability and shareprice increase.

We will also dedicate resources to explaining our
growth strategy in detail so that investors can recognize
the Group’s future potential. Furthermore, reflecting thefact that securing human resources will be one of thegreatest management challenges for SENKO, we will
strive to become a group that attracts a diverse range ofhuman resources who feel motivated while enjoying
individual growth by publicizing not only conventional
financial information such as the scale of our assets, butalso the human side of our operations, including an
employee-friendly workplace environment with benefits
such as childcare facilities at logistics centers, while
introducing cultural and sports activities.
The Group will continue to realize sustained growth
while treating changes in the business environment asopportunities, embracing the challenge of new fields andtechniques, and working to improve corporate value sothat it can meet the expectations of investors andshareholders.

SENKO GHD value creation model
INPUT

The SENKO Group’s business modelMoving Global■Manufacturing capital●Group companies: 176●Living and Business Support Businesses
Number of operating companies: 41●Total storage floor space: 4.47 million m2●Total number of group vehicles (tractor
heads): 6,960●Number of ships under management: 72■Natural capital●Energy utilization (crude oil equivalent):
183,421 kl■Social relationship capital

Pursuit of a diverse array of businesses
through domestic and international networks●Group companies: 176●Living and Business Support Businesses
Number of operating companies: 41●Number of facilities: 727 (669 in Japan and58 overseas)■Human capitalGobeyondlogistics

Make theworld goround

Medium-TermBusiness Plan
(FY2023 to FY2027)●Number of employees: 23,727●Drivers and operators: 16,189●Living and Business Support
Number of employees: 3,138■Intellectual capital●Logistics expertise(Crefeel Koto, SENKO’s in-house training
facility)●Consulting and system proposal
capabilities(200 information SEs and 100 logistics SEs)

■Financial capital●Total assets: ¥581,850 million●Equity ratio: 27.6%

Newbusinesses

w
Ne insts domaw
BusineNe ainsssm
Suppordotw
Ne ains
Living S
mupportdo

ProducTrading&
Comme
rce
Logistics

B

Revolutionize
businessusiness
Formulabasetion and ex
to strengthen a ecution of str
atnd enhance fun egies
ctionsdse ct
rea pac
In l imcia
soon
ati thdw
un
Fo r groof

OUTPUT
Key issues (materialities)

OUTCOME[Long-term social value]

Logistics

E

Revenue¥475.8 billion

Operatingprofit¥23.7 billion●Realization of healthy, fulfilling lifestyles●Development of resilient social and industrial
infrastructure●Contributions to the realization of a sustainable
society[Short- and medium-term social value]

Environment•Climate change measures•Circular economy

S

Trading & Commerce

S

Social/Safety•Diversity and inclusion •Safety•Responsible procurement structures

Governance

Health¥2.4 billion■Natural capital●CO2 emission reductions: 4,065 t-CO2●Modal shift ratio: 64.7%●Number of solar power installations: 29●Solar power generation: 22,158,000 kWh
Revenue¥39.0 billion

Operatingprofit¥200 million

Business Support

H•Infectious disease measures•Management of employees’ physicaland mental health¥159.8 billion

OperatingprofitLiving Support

G•Risk management•Compliance •Information disclosure

Revenue

Contributions to the SDGs and carbon neutrality●Realization of connections between businesses●Design based on new values●Realization of connections with the world (society)towards a better future

Revenue¥10.7 billion

Operatingprofit¥1.3 billion

Revenue¥10.6 billion

Products
Operating-¥200 million
loss■Social relationship capital●Cumulative number of visitors to Crefeel Koto
Children’s Traffic Park: 174,019●Number of annual participants in traffic safetyclasses: 518■Human capital●Number of participants in educational and training
programs at Crefeel Koto: 1,300●Cumulative number of graduates of SENKO
University: 360●Number of female employees: 5,040●Percentage of management positions held byfemales: 10.7%●Percentage of jobs held by people with disabilities:
2.02%■Intellectual capital●Number of patents in Products Business: 58*Figures are current as of March 31, 2023, or indicate March 2023 results.

25

SENKO INTEGRATED REPORT 2023

SENKO INTEGRATED REPORT 2023

26

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

Medium-Term Business Plan
Overview of the Medium-Term Business Plan

Examples of progress made under the Medium-Term Business Plan

Under the basic policy of “striving to achieve sustained growth by supplying new value to people and society throughthe deepening and creation of businesses,” the SENKO Group formulated a five-year Medium-Term Business Plancovering FY2023 to FY2027.
We will take steps to achieve the goals set forth in the Medium-Term Business Plan and realize further growth inkeeping with the following four connection-related slogans:In keeping with the Medium-Term Business Plan, we’re working to further expand and globalize existing businessdomains in our Logistics and Trading & Commerce Businesses. We will progressively implement initiatives geared tocreate and foster the development of growth businesses in the Living Support, Business Support, and new Products
Businesses. Initiatives (1) through (3) below provide examples of measures undertaken during FY2023.

Medium-Term Business Plan slogans

Example (1): Opening logistics centers throughout Japan

Connecting supply chains

Connecting the world

Go beyond logistics
Moving beyond the framework of
conventional logistics businesses
Connecting supply chains

Make the world go round
Becoming an international business thatconnects the world by undertaking
business activities worldwide

Connectedness
Connecting all businesses

Connecting to the next generation

Revolutionize business
Providing new value
Connecting all businesses in the world

Passing the baton
Becoming a business where the next generation of
employees, who will be responsible for the future,
can grow and flourish professionally

Our Logistics Business team is accelerating efforts to open
logistics centers to facilitate an expansion of the business.
Seven facilities began operating in 2022: Saitama PD Center(Iwatsuki-ku, Saitama) and Sendai-kita PD Center (Rifu-cho, Miyagi
Prefecture) in April, Kasai No. 2 PD Center (Edogawa-ku, Tokyo) in
May, ACROSS TRANSPORT Sapporo Center (Kitahiroshima, Hokkaido)
in July, Ayase Logistics Center (Ayase, Kanagawa Prefecture) inAugust, and Kita-Kobe PD Center (Nishi-ku, Kobe) and Keiyo PD
Center (Ichihara, Chiba Prefecture) in December.
Saitama PD Center

Example (2): Opening new outlets in the Living Support Business
In April 2022, Keihanna Helper Station Co., Ltd. changed its nameto Care Terrace Co., Ltd. and opened Twinkle Kashiba, a privatehouse-type nursing home that also offers day service.
Venus Corporation, which operates a nursing care business,
opened Venus With, its first small-scale, multifunctional home-careservice in Sakai, Osaka Prefecture, in December 2022. The facility is
supporting the lives of local residents by combining home-visit
nursing care with small-scale, multifunctional home care to provide
an integrated mix of services including outpatient, inpatient, andhome-visit components.

Venus With

Key issues identified by the Medium-Term Business Plan
As a corporate group with highly public businesses that involve fostering people and supporting their lives, we will
work to address five key issues: (1) expanding and deepening existing businesses, (2) creating and fostering thedevelopment of growth businesses, (3) implementing ESG+H (health) management, (4) practicing more sophisticatedmanagement, and (5) increasing motivation and realizing personal growth among employees.

27

1 Expanding and deepening existing
businesses

In the Logistics Business, we will work to expand our businesses in growth domains such as
drugstores, online sales, and chain stores and advance into new business segments such as logistics
center operations and chemicals. In our Trading Business, we will expand our businesses bydeveloping new products, pursuing international businesses, and entering into M&As.

2 Creating and fostering thedevelopment of growth businesses

In our Living Support Business, we will pursue safe and secure businesses while aiding in therecovery from the pandemic. In our Business Support Business, we will expand related businesses,
including in real estate and temporary staffing. At the same time, we will lay the groundwork for new
businesses.

3 Implementing ESG+H management

We will implement initiatives to reduce CO2 emissions in an effort to realize carbon neutrality by
2050, offer diversity and inclusion education, strengthen the entire Group’s risk management
structures, and pursue initiatives to boost health through sports and cultural events.

4 Practicing more sophisticatedmanagement

We will introduce investment standards that reflect an awareness of capital costs; strengthen IT
security and employee IT education; pursue research, planning, and development of advanced
technologies for realizing power and labor savings; and create Group synergies throughcollaboration among business groups.

5 Increasing motivation and realizing
personal growth among employees

We will cultivate an organizational culture that encourages employees to embrace ambitious goals
through a program of “challenge and change activities,” revitalize the Group through the exchange of
information and human resources by Group companies, train a new generation of executive
leadership at SENKO University, and expand our employee stock ownership plan.

SENKO INTEGRATED REPORT 2023

Example (3): Earning recognition as a Certified DX Business from the Ministry of Economy,
Trade and Industry
Digital transformation (DX) certification is a program run by the Ministry of Economy, Trade and Industry to certifythat businesses are “DX-ready,” meaning they have prepared to transform their businesses through digital technology.
The Group launched a DX Promotion Project in 2021 to prepare to implement its DX strategy. We earned certification in
February 2023 following a favorable evaluation of various initiatives, including efforts to use AI to forecast freight volume,
computerize payment processing, and foster the development of DX human resources.
Going forward, we will strategically pursue a transformation in our businesses and services through digitalization
while furthering the DX to underpin the reorganization of
the entire Group’s businesses, maintain and strengthenbusiness competitiveness through the use of digital data,
secure new customers, create new businesses throughnew digital technologies, and boost productivity throughuse of digital technologies.

SENKO INTEGRATED REPORT 2023

28

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

Medium-Term Business Plan

Targets and key measures by business segment under the Medium-TermBusiness Plan
Expanding and deepening existing businesses● Expanding existing business domains

Creating and fostering the development of growth businesses● Pursuing additional globalization

Logistics● Further expanding the Living Support and Business Support businesses ● Embracing the challenges of new businesses (manufacturing, etc.)

capabilities and the stability of our directly operated approach

Revenue(hundreds of millions of yen)

Operating profit(hundreds of millions of yen)
Operating profit margin

346

6,450

● Strengthening logistics facilities and vehicle structures andpursuing M&As

Cold logistics

800

delivery network

FY2027
TargetFY2023Results

FY2023Results

Operating profit(hundreds of millions of yen)
Operating profit margin

48

6.0%

5.4%

● Establishing a global network by expanding our facilities

Lifestyle domain● Realizing a fast recovery from the downturn caused by the

COVID-19 pandemic and expanding the number of outlets weoperate● Pursuing M&As in the health, lifestyle, and food domains

2● Increasing our market share by increasing the amount of

FY2027
TargetFY2023Results

FY2023Results

FY2027
Targetshipping space

Business Support
Trading & Commerce
Revenue(hundreds of millions of yen)

1,950

Revenue(hundreds of millions of yen)

Operating profit(hundreds of millions of yen)
Operating profit margin

38

1,598
24

300

Product sales● Strengthening EC sales and expanding the range of unique

FY2023Results

FY2027
TargetFY2023Results

FY2027
Target● Maintaining and increasing trademarks through operation of a

joint venture with a Chinese electronics material trading
company

Operating profit(hundreds of millions of yen)
Operating profit margin

20

1.8%

13

FY2027
TargetFY2023Results

Commerce

1.5%

500

26

107

and increasing market share

Revenue(hundreds of millions of yen)

11.7%

products we offer

Household paper wholesaling

Products

Operating profit(hundreds of millions of yen)
Operating profit margin● Streamlining operations at our three wholesale companies

2.0%

Food domain

0.5%

Marine shipping
FY2027
Target

Health domain

390

International logistics

5.0%

Revenue(hundreds of millions of yen)

● Accelerating facility development and further expanding our

237

4,758

Living Support

Domestic logistics● Expanding orders based on comprehensive proposal

FY2023Results

8.5%

106

FY2027
TargetFY2023Results

Real estate, information, staffing, etc.

4.0%

-1.8
FY2027
TargetFY2023Results

FY2027
Target● Entering new fields● Realizing a fast recovery from the downturn caused by the

COVID-19 pandemic● Pursuing M&As, for example in the staffing business

Revenue targets by segment

Distribution
logistics(Unit: Hundreds of millions of yen)

FY2023

FY2027

Amount of increase

Rate of increase

Food logistics

869

1,150

281

32.3%

Chain store logistics

943

1,250

307

32.6%

Fashion logistics (including EC logistics)

525

650

125

23.8%

Other logistics

506

750

244

48.2%

2,842

3,800

958

33.7%

Chemical logistics

892

1,300

408

45.7%

Housing logistics

617

750

133

21.6%

Other logistics, etc.

407

600

193

47.4%

4,758

6,450

1,692

35.6%

Logistics

Subtotal

Subtotal
Trading & Commerce

1,598

1,950

352

22.0%

Living Support

390

800

410

105.1%

Business Support

107

300

193

180.4%

Products

106

500

394

371.7%

6,963

10,000

3,037

43.6%

Logistics

630

770

140

22.2%

Trading & Commerce

292

430

138

47.3%

922

1,200

278

30.2%

Total
International
revenue*
Subtotal*Above figures include international revenue. *Classifications have been changed based on a careful examination of customers and the nature of newly
consolidated business operations.

29

SENKO INTEGRATED REPORT 2023

Key measures in ESG and groupmanagement
Specific CO2 emissions(land transport business)

Reduce 10% compared to FY2021

Percentage of management
positions held by females

At least 15%● Implementing in-house environmental measures andpromoting modal shift● Reforming programs to take advantage of a diverse workforce

and expanding employment opportunities● Introducing advanced technologies to realize automation andlabor savings● Practicing health management through sports and culturalactivities
We will pay a performance-linked dividend in addition to astable dividend, and we will strive to enhance shareholder
returns while working to further improve the payout ratio.

SENKO INTEGRATED REPORT 2023

30

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

Promoting Sustainability Management
SENKO Group Sustainability Policy

Indicators and targets

The SENKO Group has adopted a Sustainability Policy that commits it to strive todeliver new value by helping realize a sustainable environment and society,working to achieve sustained growth for the Group, and connecting people andsociety through its various businesses.

GovernanceIn keeping with the above policy, we will provide value that helps facilitate the resolution of a variety of issues.
To implement the policy, Compliance, Risk Management, Environmental Promotion, and Social Value Improvement
Committees are involved in a variety of activities related to sustainability. Furthermore, our Sustainability Promotion
Council, which meets twice a year and which oversees those committees as well as the Sustainability Promotion
Department, discusses important matters and reports to the Board of Directors on topics such as the content of its
discussions and the results of related activities. The Board of Directors, which oversees the Council, accepts reports
from the Sustainability Promotion Council on topics such as the content of its discussions and the results of related
activities.
The Sustainability Promotion Council, which is chaired by the president and representative director, who has final
responsibility for all sustainability-related initiatives, consists of outside directors and other executives. The
Sustainability Promotion Department, which is overseen by the Sustainability Promotion Council, works on an
operational level with sustainability officers and sustainability coordinators from major Group companies and businessheadquarters to undertake various initiatives and reports on related matters to the Sustainability Promotion Council.
Compliance Committee
Risk Management Committee
Sustainability Promotion Council
Chairperson: President and Representative Director

Environmental Promotion Committee
Social Value Improvement Committee

Risk management
The Group strives to deliver new value by connecting people and society through its various businesses in line with its
basic policy of helping realize a sustainable environment and society and working to achieve sustained growth for theGroup. In keeping with the above policy, we work to resolve environmental (E), social (S), governance (G), and health (H)issues and consider addressing climate change to be a top-priority issue.

Strategy
Our basic policy is to operate with a strong sense of ethics in accordance with a variety of laws and international
norms, and to that end we approved the United Nations Global Compact in October 2020 and formulated the SENKO
Standards of Business Conduct in April 2021.
We also formulated the SENKO Group Basic Procurement Policy as a series of policies that suppliers are expected tounderstand and comply with.
Going forward, we will continue to strive to realize sustained growth for the environment and society and to increase
our corporate value in line with the above policies.

31

SENKO INTEGRATED REPORT 2023

Climate change
We are taking a variety of steps to reduce our CO2 emissions in order to realize the goal of achieving a carbon-neutral
society by 2050 as set forth in the Paris Agreement. Under the five-year Medium-term Business Plan that began in
FY2023, we are striving to realize sustained business growth through environmentally oriented activities such as
strategic investments using CO2 emissions per unit of revenue in our ground transport business as the principal
indicator, with a FY2027 target of realizing a 10% reduction relative to FY2021. We are not only assessing Scope 1 and
2* CO2 emissions, but also calculating emissions both upstream (via procurement) and downstream (via shipment andbeyond) of our corporate activities (i.e., Scope 3* emissions) in a more detailed manner. We are also moving ahead with
an effort to calculate Scope 3 emissions for logistics operations in our customers’ supply chains and recommend
efficient logistics measures.
*Scope 1: Greenhouse gases directly emitted by the company in question as a result of its fuel use.
Scope 2: Greenhouse gases emitted as a result of the use of supplied electricity.
Scope 3: Greenhouse gases emitted indirectly by the company via its supply chains.

Human capital
We've established quantitative targets for the implementation of diversity and inclusion as well as healthmanagement, and we’re working towards those goals.
The following table summarizes indicators related to our policies on human resources development, including
workforce diversity, and the development of the company’s internal environment as well as FY2023 results using theindicators in question and FY2027 targets.
Indicator

FY2023 result

FY2027 target*1

Percentage of management positions held by females*2

10.7%

15.0%

Utilization of childcare leave by male employees*3

9.9%

50.0%

*1 FY2027 targets include SENKO as well as all consolidated subsidiaries.
*2 Includes SENKO as well as all consolidated subsidiaries. In the context of this indicator, management positions include employees in assistant manager and higher
positions (or their equivalents).
*3 The FY2023 result for utilization of childcare leave by male employees includes only companies that announced their results in accordance with the Act on the
Promotion of Women's Active Engagement in Professional Life (Act No. 64 of 2015) and the Act on Childcare Leave, Caregiver Leave, and Other Measures for the
Welfare of Workers Caring for Children or Other Family Members (Act No. 76 of 1991) as the figures do not include some overseas and domestic consolidated
subsidiaries. Percentage utilization of childcare leave and related programs and time off taken for the purpose of childcare was calculated for each company as
defined in Article 71 Paragraph 4 Item 2 of the Ordinance for Enforcement of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare ofWorkers Caring for Children or Other Family Members (Ordinance of the Ministry of Labor No. 25 of 1991), and the average of those figures was used to calculate
the disclosed percentage.

Analysis of materialities
Against the backdrop of the growing global importance of sustainability-related initiatives such as EnvironmentSocial-Governance (ESG) management and the Sustainable Development Goals (SDGs), we analyzed material factors(materiality) based on the continual evolution of megatrends with the potential to impact the Group’s businesses.
Specifically, we determined that the Group’s business segments are related to 28 of 77 sectors identified by the
Sustainability Accounting Standards Board (SASB) in its standards. We estimated each industries’ importance as apercentage of our sales and its potential impact on our businesses and then identified issues that need to be addressed
through our businesses based on the materiality required for those 28 sectors. We established material factors(materiality) related to environment (E), social (S), governance (G), and health (H) management based on a close
examination of their relationships with key measures in the Group’s management.

E
S S

Environment●Climate change measures●Circular economy

Social●Diversity and inclusion●Assurance of safety●Responsible procurement structures

G
H

Governance●Risk management●Compliance●Information disclosure

Health●Infectious disease measures●Management of employees’ physicaland mental health

SENKO INTEGRATED REPORT 2023

32

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

ESG+H Initiatives

E Environment
TCFD initiatives

Scenario analysis (Logistics Business)

Governance and risk management

Category

Public policy, law,and regulations(Carbon pricing)Transition risks

For more information about governance, please see “Promoting Sustainability Management” (page 31).
With regard to risk management, the Risk Management Committee has created a Natural Disaster Risk
Subcommittee, which is working to increase the SENKO Group’s resilience by inspecting and reviewing its business
continuity plan (BCP) and through other initiatives to address climate change. The committee reports on the identified
risks, risk prevention measures, risk amelioration measures, and related topics to the Sustainability Promotion Council.
In addition to establishing an Environmental Initiative Policy to guide the Group’s efforts to protect the environmentand reduce environmental impacts and spreading awareness of the policy among employees and other workers, theEnvironmental Promotion Committee manages environmental targets in areas including CO2 reductions, renewableenergy use, and waste recycling. The Committee also reports on progress towards the Group’s environmental targets to
the Sustainability Promotion Council.
The Sustainability Promotion Council discusses important matters based on reports from the Risk Management
Committee, Environmental Promotion Committee, and other bodies andreports to the Board of Directors on topics such as the content of its discussions
and the results of related activities. The Board of Directors accepts reports
related to risk management from the Sustainability Promotion Council, which it
oversees.

Technologies(Delays inrenewable energy
and energy-saving
technologies)

Business impact*1

Anticipated risks andopportunities

Impact on theGroup• Abrupt changes in fuel prices• Electrical fees due to adoption ofenvironmentally friendly vehicles• Fluctuations in shipping
fuel costs

Intermediate
Intermediate Intermediate Intermediate(+)*2• Introduction of regulations suchas carbon taxes• Rising cost burdens

Significant• Difficulty in achieving GHG
reduction targets• Increased cost of procuring
renewable energy, energy
savings, and carbon credits

2030
1.5°C

Countermeasures

2050

4°C

1.5°C

—

Significant

4°C—• Management of the Group’s energy use
and energy-saving measures• Assurance of power from renewablesources—

Physical risks

We recognize that dealing with climate change is a key priority in the effort to protect the global environment and amaterial factor (materiality) in our implementation of sustainable management. Consequently, the Group has
undertaken a serious effort to address climate change. It signed the United Nations Global Compact in October 2020,
and takes action in support of the implementation of principles related to addressing environmental issues and otherpriorities. Having endorsed the Task Force on Climate-related Financial Disclosures (TCFD) in September 2022, wedisclosed information related to climate change to facilitate good communication with a broad range of stakeholders,
including shareholders and investors.

Scenario analysis
During FY2023, we conducted a scenario analysis of risks and opportunities associated with climate change based on
the TCFD framework for our flagship Logistics business, as well as our Trading & Commerce, Living Support, and BusinessSupport businesses, where climate change is likely to have a smaller impact. This effort entailed identifying specifictransition and physical risks and opportunities and studying medium- and long-term measures to address them.
With regard to our flagship Logistics business, deepened our scenario analysis and evaluated the extent of financial
impacts under the 1.5°C and 4°C scenarios for 2030 and 2050 for those risks and opportunities we anticipated facing
in FY2022 which we deem to be serious and studied how to apply the results to strategies affecting investment andfinancing. In the future, we plan to conduct similar analyses for the Products Business, which was created following ouracquisition of Chuo Kagaku Co., Ltd. as a consolidated subsidiary.
Scenario analysis results
We are working to ascertain the risks and opportunities posed by climate change in order to boost the resilience ofour management, and we are involved in ongoing initiatives to maximize opportunities while dealing with the risks wehave identified.
Among the serious risks we identified, an FY2023 assessment of the financial impact of the adoption of carbon tax
throughout the Group calculated an impact of about 5 to 6 billion yen in 2030 assuming carbon tax pricing of USD 130
per ton of CO2 in 2030 under the 1.5°C scenario. With regard to the adoption of carbon tax, we will both participate in
the GX League and assess associated trends while taking a variety of steps to reduce various CO2 emissions, for example
through use of renewable energy and active adoption of environmentally friendly vehicles and resource-friendly tires, inan effort to lower our tax burden.
In addition, we will work with other companies to develop truck bodies and containers that help improve loading
efficiency and contribute to the Group’s transport applications in an effort to develop technology for environmentallyfriendly vehicles. With regard to adoption of such vehicles, we will provide even lower-carbon logistics services tocustomers while actively undertaking investments to lower CO2 emissions.
Through these initiatives, we will work to go beyond merely mitigating risk so that we can secure and expand
opportunities.

33

SENKO INTEGRATED REPORT 2023

Opportunities

Scenario analysis and scenario analysis results• Disclosure of CO2 emissions, including
Scope 3• Pursuit of the visualization of CO2
emissions• Provision of options geared to further
decarbonization, for example use ofenvironmentally friendly vehicles andships, implementation of a modal shift,and consolidation of logistics facilities

Markets(Changes in thesize of thecustomer base)• Selection of lower-carbon services
by customers• Stagnation in market share
if we fail to provide
low-carbon services

Significant—

Significant—

Acute risks(Extreme weather)• Interruptions in the operation ofroad, rail, marine, and airtransport• Rising cost of continuing
Logistics business
operations(Equipment damage notcovered by insurance, etc.)

—

—

Low

Low

Chronic risks(Sea level rise)• Need for measures to prevent
flooding at logistics facilities andreassess siting• Increased costs, forexample to assess risk at,
and relocate, logistics
facilities

Chronic risks(Rising
temperatures)• Risk of heat illness• Increased employee attrition• Increased employee healthimpacts• Increases in insurance
premiums, hiring costs,
etc.

Technologies(Adoption ofrenewable energy
andenergy-saving
technologies)• Increased use of renewableenergy and energy-saving
technologies, for example
switching to renewable energy• Stable supply of low-cost,
low-CO2 energy• Revenue from the sale ofpower generated at groupfacilities

Technologies(Development of
next-generation
technologies)• Increased adoption of
next-generation logistics
technologies that improve vehicle
loading and operational efficiency,
for example joint logistics services• Savings in logistics costs,
for example due to
implementation of a modal
shift and adoption oftandem-trailer trucks• Reduced CO2 emissions

Intermediate—

Intermediate—• Proposal of logistics services that take into
account climate change risk, for example
optimized shipping patterns andoptimized shipping routes

Markets(Next-generationenergy transport)• Growing demand for transport ofliquefied hydrogen by trucks withthe widespread adoption of fuelcell trucks• Growing demand for transport ofliquefied ammonia by ships• Increased revenue related
to liquefied hydrogen andliquefied ammonia
shipment

Low—

Intermediate—• Expansion of existing businesses anddevelopment of next-generation energy
transport structures

Markets(Circular economy)• Increased reuse and recycling of
EV batteries, solar panels, andwaste plastic• Increased revenue related
to logistics services
associated with reuse andrecycling

Low

—

Low

—

• Targeting of existing and new customers
based on demand for climate change
countermeasures• Development of logistics platforms

Reputation(Stakeholder
reputation)• Praise from investors and others
in response to accurate disclosureof information about how we are
addressing climate change risk

• Increased corporate value
and fund procurement
under better terms

Strategy
Basic approach• Promotion of transition to environmentallyfriendly vehicles (EVs, HVs, LNG-powered
vehicles, environmentally friendly DSLs,etc.) and tandem-trailer trucks• Promotion of modal shift• Study of the introduction of FCVs and
LNG- and ammonia-fueled ships• Initiatives as a GX League member
company—• Development of BCPs and staging of
associated training• Purchase of supplies• Collaborative support among facilities• Dispersion of facilities• Provision of alternative transport routes—• Development of a safe workplaceenvironment• Promotion of automation and labor-free
operations• Cultivation of employee awareness ofhealth and safety; strengthening of
initiatives to promote health—• Installation of solar power facilities andshift to private consumption of generated
power• Transition to LED lighting andenvironmentally friendly air-conditioning
control• Transition to solar power, wind power, etc.

—

• Deepening of disclosure of information to
stakeholders• Fund procurement through means such as
green bonds*1 • We evaluated business impacts by calculating financial impacts on SENKO under each scenario in terms of effects on operating profit and evaluated the results using athree-stage scale (significant, intermediate, and low).
“Significant” indicates an impact of greater than 5 billion yen; “intermediate,” an impact of 1 to 5 billion yen; and “low,” an impact of less than 1 billion yen. A dash indicatesthat impacts were not evaluated based on our assessment that the magnitude of any impact at present would be small.
• The scenario analysis drew on resources including “World Energy Outlook 2022” (crude oil prices) and “World Energy Outlook 2021” (carbon tax prices), both published by
the IEA.
*2 • Since fuel costs are expected to decline under the 1.5°C scenario, the financial impact is positive despite being classified as a risk.

SENKO INTEGRATED REPORT 2023

34

Overview of the SENKO Group

Foundation for Growth

Strategies for Sustained Growth

Data Section

ESG+H Initiatives

E Environment
Scenario analysis (Trading & Commerce, Living Support, and Business Support
businesses)
Category

Transition risks

Public policy, law,and regulations(Carbon pricing)

Physical risks

Impacted businesses
Trading &Commerce

LivingSupportBusiness
support• Increased logistics costs○• Increased energy procurement
costs

○

○

• Increased raw material
procurement costs○○• Increased productdevelopment costs○• Increased service development
costs

○

○

○

○

• Selection of environmentally friendly
products and services by customers• Displacement from markets due toenvironmentally unfriendly products• Stagnating market share if
SENKO fails to supply
environmentally friendly
products and services

○

○

○

• Extensive damage to facilities,
equipment, inventory, real-estate
properties, etc.

• Increased costs associated withbusiness continuity

○

○

○

• Interruptions to business due to supply
chain disruptions• Sales opportunity losses due tointerruptions in store andfacility operation

○

○

○

• Increased human toll for employees andcustomers due to extreme weather• Increased employee healthimpacts and attrition

○

○

○

Chronic risks(Sea level rise)• Need for measures to prevent flooding atoutlets and facilities and reassess siting• Development of structures (informationand logistics networks) for supplying
products in a sustainable manner• Increased costs, for example toassess risk at, and relocate,stores and facilities○○

Chronic risks(Rising
temperatures)• Increase in heat illness risk experienced
by employees due to rising temperatures• Human toll of increased tropicalinfectious diseases• Increased employee healthimpacts and attrition• Increased demand for accurate
assessment of CO2 emissions, including
Scope 3

• Increased demand for services
related to the accurate
assessment, visualization, andreduction of CO2 emissions• Use of green energy• Progress in equipment incorporatingenergy-saving technologies• Reduced costs due to SENKO’s
adoption of equipment withgreen energy andstate-of-the-art energy-saving
technologies at its facilities

Markets(Circular
economy)• Increased demand for environmentallyfriendly products and services

Markets(Increased
catastrophic
damage)• Increased demand for facilities that canbetter withstand frequent typhoons andtorrential rainfall

Reputation(Stakeholder
reputation)• Improvement in reputation as a result ofproviding environmentally friendly
products and services• Improvement in reputation as a result offactors including improvements in thelabor environment• Improvement in reputation from theperspective of business partners as aresult of ensuring a stable supply in theevent of a natural disaster

SENKO INTEGRATED REPORT 2023

• Increased demand foralternative products due toprogress in reduced use ofplastics• Increased revenue fromaccommodating growing
customer demand forenvironmentally friendly
products and services○• Development of structures fordeveloping environmentallyfriendly products and services• Pursuit of joint research within
the SENKO GroupCO2 reduction initiatives and results
We assess energy use and CO2 emissions associated with our business activities and apply the results to ourenvironmental protection activities. We’re currently implementing a variety of initiatives to reduce environmental
impacts while working to achieve the CO2 reduction target set forth in the five-year Medium-Term Business Plan thatstarted in FY2023, specifically a 10% reduction from FY2021 levels in CO2 emissions from the land transport businessper unit of revenue (expressed as tons of CO2 emissions per million yen of revenue).
Results for FY2023 were 0.98, a 3% reduction compared to FY2021.
Breakdown of FY2023 CO2 emission sources
OUTPUTINPUT

SENKO Group total*2

Fuel use*1(kℓ)

Power use
(Thousands of kWh)Scope 1(t-CO2)

Scope 2(t-CO2)Total(t-CO2)

129,212

210,744347,62287,518435,140*1 Fuel use is calculated in terms of crude oil (kL). *2 The SENKO Group total encompasses all consolidated companies in Japan, including SENKO Co., Ltd.

CO2 emission results, annual trend*3• Development of BCPs andstaging of associated training• Purchase of supplies• Dispersion of vendors andfacilities• Collaborative support among
facilities• Development of a safe
workplace environment• Cultivation of employee
awareness of health andsafety; strengthening of
initiatives to promote health○○• Research into, and active
adoption of, next-generationenergy and next-generation
technologies

FY2022

FY2023

SENKO Group total(t-CO2)―420,648

435,140

CO2 emissions per unit of revenue(t-CO2/¥1 million)

―

0.86

0.79

Of which, ground transport business emissions(t-CO2)

245,179

271,439

268,288

CO2 emissions per unit of revenue(t-CO2/¥1 million)

1.01

1.05

0.98

*3 Segment classifications and tabulation methods changed starting in FY2023. Since the ground transport business as well as CO2 emissions per unit of revenue
have been redefined, figures for past fiscal years have been recalculated.

FY2023 CO2 emission reduction target and results (t-CO2)○• Development and provision ofservices that utilize expertise
accumulated through SENKO’slogistics business

FY2021CO2 reduction target

Results

Achievement rate

4,000

4,065

102%

FY2023 priority measures and reductions (t-CO2)
CO2 reduction (t-CO2)

Priority measure○○• Strengthened development of
products that use recycledplastic and plastic alternatives○• Development of resource
recycling mechanisms throughuse of the Group’s aggregate
capabilities, from collection
through reuse• Increased revenue due toincreased use ofdisaster-resilient facilities• Increased brand value• Increased corporate value andfund procurement under better
terms• Use of solar power
self-consignment at SENKOGroup facilities• Pursuit of joint procurement
within the SENKO Group

Markets(Increased
demand forenvironmentallyfriendly products
and services)○

Countermeasures• Consolidation of logistics in
SENKO’s logistics group• Reassessment of shipment
frequency• Increased product and service
development costs

Technologies(Adoption ofrenewableenergy andenergy-saving
technologies)

Opportunities• Increased shipping and procurement
costs• Increased costs associated withregulatory strengthening

Impact on theGroup

Technologies(Development ofenvironmentallyfriendly products
and services)

Acute risks(Extreme
weather)

35

Anticipated risks andopportunities

Environmental targets and results

○

○

○

○

• Strengthening of disastermeasures and resilience atexisting facilities• Deepening of disclosure of
information to stakeholders• Fund procurement throughmeans such as green bonds

Scope 1

Fuel savings(1) Promoting the transition to energy-saving vehicles(2) Promoting the transition to environmentally friendly forklifts(3) Installing other environmentally friendly equipment

Scope 2

Power savings(1) Switching to a new power company and revising fees(2) Transition to energy-saving equipment (LEDs, air conditioning)(3) Utilizing renewable energy from solar power installations

Scope 3

Recycling-based society(1) Recycling discarded wood pallets (2) Promoting use of retread tires

2,100

1,670
295

4,065

Total

FY2023 green logistics proposals and CO2 emission reductions

CO2 emission reduction benefits from proposed improvements to customers’ logistics systems,
including modal shifts, facility consolidation, joint transport and deliveries, and use of larger vehicles

Number of contracts

CO2 reduction (t-CO2)

42

1,270

We participated in the GX League, which provides a venue for companies to collaborate while embracing the challenge oftransforming social systems by realizing economic growth through initiatives designed to achieve carbon neutrality by 2050.
We’re working to lower environmental impacts and protect the environment, for example by adopting advanced, environmentallyfriendly trucks; installing rooftop solar power systems on our logistics centers; and pursuing initiatives to protect biodiversity.

SENKO INTEGRATED REPORT 2023

36

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

ESG+H Initiatives

E Environment
Broad praise for SENKO’s green transformation (GX)

Initiatives to reduce environmental impacts

We’re actively pursuing a variety of initiatives to reduce CO2 emissions. Those initiatives have won broad praise, andwe were recognized once again in FY2023 as a business with noteworthy achievements in this area.

We’re working to lower environmental impacts and protect the environment, for example by adopting advanced,
environmentally friendly trucks; installing rooftop solar power systems on our logistics centers; and pursuing initiatives
to realize a recycling-based society.

Runtec receives the 2022 Minister’s Award for Excellence in Environmental Protection by a Transportation Business
Runtec Corporation has been actively introducing
trucks with patented hybrid electric freezers developed
jointly with the manufacturer as well as large hybrid
trucks. The company received the 2022 Minister’sAward for Excellence in Environmental Protection by aTransportation Business in recognition for the leading role
its activities play in the industry, including a variety ofongoing initiatives to lower CO2 emissions, for example
installing refrigeration equipment that uses energysaving natural refrigerants and private-consumption solar
power systems at logistics facilities and implementing amodal shift from truck transport to JR container transportand marine transport, and offering environmental
protection education to employees.

Deploying advanced environmental trucks
7 EVs

Number of vehicles

Tokyo Nohin Daiko Nishinihon Co., Ltd.

1April 2022

Tokyo Nohin Daiko Co., Ltd.

2

June 2022

Tokyo Nohin Daiko Co., Ltd.

1

September 2022

Saitama Main Branch, SENKO Co., Ltd.
(currently the Urawa Branch)2

December 2022

ACROSS TRANSPORT Corp.

1

January 2023

At the award ceremony (from right, Runtec president Yoshiki Kanaga and Minister ofLand, Infrastructure, Transport and Tourism Tetsuo Saito)

Working with customers, SENKO Co., Ltd. has reduced
CO2 emissions while using fewer vehicles and drivers byconsolidating freight being shipped between the Kanto
and Kansai regions and transporting it together with
dolly-linked tandem-trailer trucks.
Freight trailers are connected to cargo trucks with a dollythat allows them to be split apart near their respective
destinations so that cargo can be simultaneously delivered
to its respective suppliers. Drivers can be changed at relay
stations along the route, allowing them to make day trips.

Hokkaido SENKO Co., Ltd.

2 (LNG)

June and July 2022

Tokai Senko Transport Co., Ltd.

1 (CNG)

July 2022

Esaka Logistics Service Co., Ltd.

1 (CNG)

December 2022

*LNG: Liquefied natural gas truck

In 2022, we began self-consignment of surplus power generated by a solar power system covering the roof of SENKO
Sennan PD Center among SENKO Group companies. Then in April 2023, we installed the Group’s first system consistingof Solar Mobiway, a line of solar panels designed to be installed on road surfaces developed by Mirai-Labo Co., Ltd.;
Repurposed EV Storage Battery, which consists of used EV batteries; and G-CROSS, a system that combines a
generator with replaceable battery modules, at Wangan-Yatomi PD Center. Working through a capital tie-up,
Mirai-Labo and the SENKO Group plan to help realize a decarbonized society through iterative improvements to theMirai-Labo’s Solar Mobiway line of road surface solar panels, which make it easy to retrofit existing parking lots, with aview towards installing the panels throughout the Group.

After initiative

37

Bound forAmagasaki

SENKO INTEGRATED REPORT 2023

Bound for
Hikone420 kmBound forAmagasaki

Bound for
HikoneBound for Bound for
Amagasaki Amagasaki

Bound for Bound for
Amagasaki Hikone

Bound forAmagasaki

Bound forHanedaBound for
HikoneCompany A, Atsugi

Bound forAtsugiCompany B, Haneda

Bound forHanedaBound for Bound for
HanedaAtsugiAtsugi LC, SENKO Atsugi Branch

Bound forAmagasaki

Bound for Bound for
HanedaAtsugiCompany B,
HikoneCompany B
HanedaBound forAtsugiSolar Mobiway

Separationof truck/trailerDriverchangeOff-street parking lot, Hamamatsu-Inasa IC,
Shin Tomei Expressway

Hikone IC, Meishin
Expressway

HanedaHikone IC, Meishin
Expressway

Nishinomiya IC,
Meishin Expressway

Company B

140km

505 km

Separationof truck/trailer

Hanshin Vehicle Center, SENKO Hanshin Main Branch

Bound forAmagasaki

Company A, Amagasaki

Company A
AtsugiCompany B, Amagasaki

SagamiharaAikawa IC

Nishinomiya IC,
Meishin Expressway

Company A

475 kmCompany B
Hikone

CNG: Compressed natural gas truck

Developing a solar power business using rooftop space at logistics centers

Bound forAtsugiCompany B
Amagasaki

A liquefied
natural gas (LNG)
truck used by
Hokkaido SENKO
Co., Ltd.

Tandem-trailer trucks

Before initiative

Bound forHanedaAn electric truck
used by ACROSS
TRANSPORT Corp.

4 NGVsSENKO receives an Excellence in Logistics Partnership category award

Company A
Amagasaki

Date of introduction

Freight is consolidated in the same area by large trucks and then shipped over the
long-distance trunk portion of the journey using tandem-trailer trucks.

Repurposed EV Storage Battery

G-CROSS

Wangan-Yatomi PD Center

Initiatives to realize a recycling-based society
The Group is undertaking initiatives to realize a
recycling-based (circular) economy that reduces
new natural resource use and encourages therecycling and reuse of existing resources, byutilizing an approach known as “waste distribution”
to collect resources.
We’re collecting plastic garment bags used toprotect apparel, which used to be discarded aswaste, at the time of product delivery; compressing
them so they take up less space at our logistics
centers; delivering them to recyclers; and thendistributing them again as recycled garment bags.

Apparel waste plastic recycling
Collection ofwaste plastic

Compression
at warehouse

Recycling

Tokyo Nohin Daiko Co., Ltd.

SENKO INTEGRATED REPORT 2023

38

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

ESG+H Initiatives

S Social
Human capital

Human resources development at Crefeel Koto

Strategy
Basic approach
Our mission is as follows: As a corporate group fostering people and supporting people’s lives, we contribute toachieve a genuinely productive global society by continuously challenging efforts to create new trends in terms of
products and services that shift the future; centering on our physical and commercial distribution business. In order tocontinue to realize this mission and continue to provide new value to people and society through our involvement inpeople's lives and in industry, we believe it’s important to increase motivation and realize personal growth amongindividual employees. Based on the above, we’ve codified the Group’s basic approach to human capital in a humanresources development policy that focuses on training human resources so that employees themselves can tap theirindividuality and abilities to the maximum extent possible. By adopting the policy of “respecting human rights andworking to create workplaces where employees can do their jobs in a safe, energetic, and healthy manner while
manifesting their individuality” to guide our development of SENKO’s internal environment, we're striving to realize arelationship where both the company and its employees can help one another reach greater heights of performance.

SENKO’s vision of the ideal employee, as the outcome of its human resources development program
The SENKO Group, which exists to create new value in the world in keeping with its slogans of “go beyond logistics,”“make the world go round,” and “revolutionize business,” needs human resources who continuously embrace newchallenges while valuing passion.
In addition, as a corporate group operating businesses that provide direct support for people’s lives, we require humanresources who can act in a spirit of good faith with a sense of responsibility.
Furthermore, to transcend generations and connect the world, we need a diverse range of human resources who
encompass a variety of attributes and who can respect the diversity of others.

Integrity

Passion

Human resources who continuously embrace challenges and change
Change&Challenge

Human resources who can act in a spirit ofgood faith with a sense of responsibility

Commitment

Respect

Specific initiatives
Development
The SENKO Group offers various types of training that align with the career stages and individual characteristics ofindividual trainees for all employees in an effort to secure and endow them with the desired traits described in our vision.
In addition, in order to become a corporate group that fosters employees’ development, it’s necessary to create spaces
for learning that let participants get away from daily work so they can concentrate. We've established purpose-driven
educational and training facilities to help all SENKO Group employees, from executives to drivers and other workers on
the front lines of our logistics facilities, to embrace challenges and change themselves.

39

SENKO INTEGRATED REPORT 2023

Opening of SENKO University
SENKO University opened in 2016 as part of an effort to ensue the more robust future development of not only the
Logistics Business, but all the Group’s businesses.
The University serves as a venue for intellectual exchange within the Group and as a place where human resources
who will occupy executive leadership positions in the future can undergo prioritized education designed to endow themwith advanced knowledge and skills. The program currently consists primarily of two courses: a Department of Executive
Human Resources and a Department of Advanced Professional Human Resources. The Department of Executive Human
Resources seeks to prepare students to rebuild SENKO’s business portfolio by getting to the bottom of new social andcustomer issues, while the Department of Advanced Professional Human Resources seeks to prepare students to play aleading role in digital innovation. A total of 491 students had
graduated from the University’s courses by FY2023.
Courses and number of graduates
Fiscal year

Number of graduates

FY2017 to FY2022

131

FY2023

360*

Total

491

*Including 261 e-learning students.

Diverse human resources who can respect the diversity of others

Diversity

We offer a variety of training programs at Crefeel Koto, a
traffic safety and logistics training facility dedicated toensuring that logistics skills accumulated in the course ofoperating its businesses will be passed down and refined.
Crefeel Koto, one of the largest training facilities of its kind inJapan, offers professional driver training programs using its
driving course, and trainees who have prepared to offer such
instruction (truck drivers and forklift operator instructors) go
on to become instructors by offering guidance tailored to meetthe needs of various Logistics Business operations at facilities
nationwide.

One-on-one meetings
In order to build equal relationships between the company and individuals, respect each and every employee’s
personal values and individuality, and help individual workers extend their skills and abilities, it’s essential to create
spaces that foster “flat” dialog with supervisors so that
Number of employees with coaching certifications
subordinates can realize self-growth through the lessons offor one-on-one meetings
experience. In FY2021, we introduced biweekly one-on-one
meetings as a venue for dialog with supervisors to foster
Fiscal year
Number of certified employees
subordinates’ growth, and we’re working to roll out theThrough FY2023
24
program throughout the Group.

Future Design Project
The Future Design Project was launched in FY2023 toprovide a venue for connecting the individual characteristics(strengths) of the close to 180 Group companies and creating
future synergies. We will continue the project, both to provide
a place where young people with diverse values can stimulate
one another as they trace a vision for the Group’s future and toserve as a venue for identifying candidates for future executive
leadership positions and orchestrating exchanges of humanresources.
SENKO INTEGRATED REPORT 2023

40

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

ESG+H Initiatives

S Social
Diversity and inclusion

Human rights initiatives

The Group’s Medium-term Business Plan (which covers FY2023 to FY2027) sets the goal of increasing the percentage
of management positions held by women (including those in assistant manager positions) to 15%. We’re undertaking
various initiatives so that we can build workplaces where
employees can make the most of their individuality andPercentage of management positions held
abilities without regard to gender or nationality. The effort toby females
15.0
implement those initiatives goes beyond existing executiveand management-level employees. In addition, we’repursuing this project, which targets female managers and10.7
manager candidates in a broad range of operating
10.4
companies, including in the Logistics, Trading & Commerce,
9.1
8.5
Living Support, and Business Support Businesses, and whichseeks to foster participants’ motivation and leadership skills,
while holding discussions on a broad variety of themes,
2019
2020
2021
2026 (Target) (FY)2022
including management, human resources programs, hiring,*As of FY2023, the scope of tabulation for Group companies was changed toand training, from the female perspective and ultimately
consolidated subsidiaries only.
advising the company’s executive-level leadership.

Promoting hiring of foreigners and mid-career hires
The Group began accepting foreign human resources via a technical intern training program administered by theJapanese government in FY2018 to deal with labor shortages, and the program has accepted more than 200 trainees todate in areas including logistics and automotive repair work.
In addition, the number of foreign workers in the Group has been growing with each passing year since 2021 with theaddition of Self Grow Co., Ltd. and Kyoudou Project Co., Ltd., which have strengths in temporary staffing with foreign
workers.
Going forward, the Group will continue to actively hire skilled foreign workers in businesses affected by labor
shortages while accommodating the establishment of new programs resulting from a current, government-led effort torevamp the technical intern training program.
Working to meet foreign workers’ needs on an organizational level through staffing agencies and other companies in the Group
Trading &Commerce
Logistics
workers(PD Centers,
etc.)
Accommodations (Kaie)

Logistics

Automotive
mechanics(Automotive
repaircompanies)
Restaurant
industry(Sushi Maru)

Promoting the
temporary staffing
Supply ofbusiness
Labor needs
human&resources
Supporting foreign
employment

Nursingcare humanresources(Venus,etc.)

Business
Support

Providinghumanresources foroutside cargoshippers

LivingSupportCreation of a position responsible for mid-career hiring and foreigner worker support
We created a position in the Human Resources Department to oversee mid-career hiring and support for foreign workers, andwe’re working both to secure human resources with a diverse range of experience and insight and to expand the Group’s hiringof foreigners and acceptance of technical trainees.

41

SENKO INTEGRATED REPORT 2023

Basic approach
The Group supports the United Nations Global Compact, which encompasses 10 principles spanning four areas, andwe respect the International Bill of Human Rights, including the Universal Declaration of Human Rights, as well as thebasic rights described in the International Labour Organization (ILO) core conventions as set forth in the ILO Declaration
on Fundamental Principles and Rights at Work as the minimal acceptable level of rights. We support guidelines such as
the OECD Guidelines for Multinational Enterprises, the ILO Multinational Enterprises Declaration, and the United
Nations Human Rights Council’s Guiding Principles on Business and Human Rights, and we conduct our businessactivities in accordance with those principles. We also comply with all national and regional laws in the conduct of ourbusiness activities.

SENKO Group Human Rights Policy
We established and published this Human Rights
Policy with advice from outside experts in March2023 to facilitate related initiatives by clarifying the
SENKO Group’s approach to human rights.
The policy has been approved by the Board of
Directors. The SENKO Group strives to respect thehuman rights of all stakeholders involved in its
business activities and to work with everyone involved
with those activities, including business partners.

SENKO Group Human Rights Policy(1) Scope of the policy(2) Human rights risks associated with our business activities(3) Human rights due diligence(4) Corrective action and relief(5) Complaint resolution mechanisms(6) Education and training(7) Information disclosure
Enacted in March 2023
SENKO Group Human Rights Policy
https://www.senkogrouphd.co.jp/ir/pdf/human_rights.pdf

Human rights due diligence
To identify and evaluate negative impacts of the Group’s business activities on human rights in line with our Human
Rights Policy, we launched an effort in
FY2024 to identify human rights risks
Overview of our approach to human rights
by business by holding advancetraining and workshops for theCommunicating how we
Identifying and evaluating
dealt with impacts
negative impacts in companies’
executive leadership of divisions andbusinesses, supply chains, andmajor Group companies under thebusiness relationships
guidance of outside experts and the2
5
Sustainability Promotion Department
and pursuing engagement (dialog)with the SENKO Group Labor Union
1
Federation. Based on the results ofIncorporating responsiblethat effort, we will offer feedback to
corporate action into
6 When appropriate,businesssites
andundertakecorporate policies andundertaking or
initiatives according to the nature ofcooperating withmanagement systems
corrective action
risks identified.
In addition, progress on human
43rights due diligence and information
about associated issues are reported
to the Sustainability Promotion
Council, which meets twice a year
and whose membership includes
SENKO directors and officers, among
others.

Tracking andinvestigating implementation
status and results

Halting, preventing, andameliorating negative impacts

Due diligence process and the means that support it
Source: OECD (2018), OECD Due Diligence Guidance for Responsible Business Conduct

SENKO INTEGRATED REPORT 2023

42

Overview of the SENKO Group

Strategies for Sustained Growth

ESG+H Initiatives

ESG+H Initiatives

S Social

S Safety

SENKO Group Social Contribution Promotions Policy

SENKO Group’s Safety Policy

To provide new value to people and society, the SENKO Group will effectively utilize its

SafetyPhilosophy

management resources (human resources and business infrastructure) to pursue activities
centering on the following three areas in order to help realize a sustainable society.
In addition, we will encourage active participation in related activities by the Group’s employees
and support voluntary action by them.

Contributing to local
communities

Addressing
environmental issues

Contributing to society
through culture and sports

CLOSE
UP!

Principal FY2023 initiatives
Updating the Children’s Traffic Park, a park where kids can raise their traffic safety awarenesswhile having fun with their families, on the seventh anniversary of its opening

In 2016, we built Children’s Traffic Park at Crefeel Koto, a facility that opened in 1996 to help professional drivers
master safe driving techniques. In May 2023, weupdated the park, which consists of an EV Driving
Course, Athletic Zone, Kids’ Train, and Center
House, with a new educational attraction called“A Driving Adventure: Adventure on SENKO
Island” designed to let children have fun whileraising their traffic safety awareness to mark theseventh anniversary of the park’s opening.
Aerial view of the Children’s Traffic ParkA Driving Adventure: Adventure on
SENKO Island

Foundation for Growth

The SENKO Group will “achieve an eventual goal of zero workplace accidents” basedon the spirit of respect and by prioritizing safety over everything else.
1. We can and must prevent all accidents and disasters.
2. Managers are responsible for the safety of employees.
3. Every employee must believe in "eliminating all accidents.”
4. Safety ensures high quality and high productivity.

Basic
Approach○ The SENKO Group deeply recognizes the social mission of the logistics business and promotes efforts that
all employees understand correctly and that contributes to the improvement of safety by ensuring safety inbusiness activities is the basis of our business.
○ The top management will actively lead the field from the bottom to the top to unite and strive to securesafety and improve safety in business activities.
○ The basis of safety is to be strongly conscious of each person working in the SENKO Group to be healthymentally and physically, to practice proper health management.

Priority
Measures1. We comply with relevant laws and regulations and fulfill our social responsibilities.
2. We thoroughly carry out risk assessment and reduce all safety risks.
3. We prevent health problems by enhancing health management system and promoting independent health.
4. We actively disclose information on safety and health activities.

Achievement of safety goals (FY2023)

Priority Measures

FY2022 result

FY2023 target

FY2023 result

Vehicle accident
frequency rate

0.979

0.930

0.859

Occupational
accident
frequency rate

1.829

1.575

1.983

Participating in the Children’s Museum Project
Saitama Senko Logiservice Co., Ltd. and ACROSS TRANSPORT Corp. are participating in the Children’s Museum
Project, an initiative to raise drivers’ awareness of the need to reduce the number of traffic accidents, by wrapping atruck with graphics depicting children’s wishes for traffic safety.
In January 2023, Saitama Senko Logiservice
unveiled the truck at its Ranzan Center. Localkindergarten students participated in the eventand viewed the completed truck.
In February 2023, ACROSS TRANSPORT held a
reception at Kamo Elementary School in the cityof Fukuyama, Hiroshima Prefecture, and sent a
letter of thanks to the children who drew pictures
Ranzan Center, Saitama Senko Logiservice Co., Ltd. ACROSS TRANSPORT Corp.
for the truck.

FY2023 result

43

SENKO INTEGRATED REPORT 2023

Expenditures on social contribution activities:¥193.6 million

Data Section

1. Improving health and safety management
structures and creating safety synergies
2. Putting in place an environment so that
SENKO becomes a company where
employees can work with peace of mind
3. Strengthening visualization of safety
management
4. Promoting continued adoption ofadvanced safety technologies
5. Expanding education and training andrevamping educational methods based on
lessons learned from the pandemic

Medium-term safety goals (FY2023 to FY2027)
Based on the Medium-Term Business Plan that started in FY2023, we will promote group-wide safety programs,
including using the latest driver assistance technology and other measures.

We aim to reduce
vehicle andoccupational
accidents by 25%
from the FY2023
level.

Vehicle accident
frequency rate
(On-road accidents)

Occupational accident
frequency rate

(Occupational accidents resulting
in at least four lost workdays)

FY2023 result

FY2027 target

0.859

0.735 or less

1.983

1.244 or less
SENKO INTEGRATED REPORT 2023

44

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

ESG+H Initiatives

S Safety
Building a foundation for safety
Ensuring internal sharing of
information using thecompany’s systems
In keeping with our Health and
Safety Management Rules, we
set annual targets, implement
and review associated measures,practice the PDCA improvement
cycle, and conduct internal auditsof our level of performance in eacharea (Safety Skills Evaluations).
We’ve established a robust
foundation for safety by using thecompany’s systems to visualize
the results of those efforts.

Principal FY2023 initiatives

Aggressively offering safety education that brings together thecompany’s technologies
Trainer program

Skill Contest

We introduced the trainer
program in 2004 to ensure thatworkers in the field involved withlogistics quality have a uniform
skill level. Drivers and forklift
operators who have been trainedand educated at Crefeel Koto,
SENKO’s in-house training facility,
are appointed to serve as trainers
to help reduce accident rates by
spreading what they’ve learnedat branches and sales offices. The
program has earned high praisefrom customers.

We’ve been holding the SENKOGroup Skill Contest since 2006
to improve the skills of drivers
and operators. Employees fromthroughout Japan and aroundthe world compete on the basisof their logistics skills in truck andforklift driving events so that
SENKO can provide safety andpeace of mind to its customers.

Introducing arch-shaped light displays to give
workers visual warnings of nearby forklifts

Installing sonar to detect obstacles whenbacking up

Stored products create blind spots in warehouses,
posing the risk of collisions between workers andforklifts. To address this risk, we had installed
arch-shaped light displays on 478 forklifts (8% of our
total fleet) to warn workers of nearby forklifts as of theend of FY2023. In this way, we’re working to prevent
accidents involving collisions between workers andforklifts in warehouses, which are characterized by highnoise levels and numerous blind spots.

A large proportion of truck accidents occur while thevehicle is backing up. To provide greater safety, SENKO
had installed sonar sensors to warn drivers of obstacles
behind their truck on 602 trucks (44% of our total fleet)
as of the end of FY2023.

Acquiring “Safety Excellence Workplace”
certification

Structures for managing hazardous goods areas

As part of safety programs in line with the safety
management system, the SENKO Group is aiming tohave all workplaces that operate vehicles acquire“Safety Excellence Workplace certification.” As of theend of March 2023, 100% of all workplaces had
acquired certification, marking the second consecutive
year of 100% coverage.
*Workplaces that have been certified as having an outstanding level of safety
under the Truck Shipping Business Safety Evaluation Program are entitled todisplay the “G Mark.” The Japan Trucking Association launched the program,which is being promoted by the Ministry of Land, Infrastructure, Transport
and Tourism, in July 2003 as the government-designated organization
responsible for its implementation.

Implementing our safety management system
We conduct “Safety Skills
Evaluations” (internal audits)every year in accordance withlegislation, and publish theprogress of improvements asimprovement ranking charts
which are distributed to branchmanagers and presidents ofgroup companies on a regularbasis. We apply the specificresults to management in eachregion, and run a PDCA cycle
for resolving issues to ensure
safety.

Safety Skills Evaluation Operating Cycle

Feedback● Implementation ofsafety skills
evaluation system● Assess improvement
activities● Regional branch or groupcompany Health and
Safety Committee checks
improvement progress

Act

Check

Plan

Do

● Feedback is provided tobranch managers andgroup company presidents
by the regional branch orgroup company Health and
Safety Committee● Set branch index andtarget, and decide on
safety activity plans

100% of all SENKO Group
workplaces have acquired
certification.

Sensor installation locations:
2 at top and 4 at bottom

We strive to differentiate ourselves from othercompanies by assigning a hazardous goods areaadministrator to each of five geographic areas so that
we can provide low-risk logistics services.
The number of hazardous goods found amongproducts being shipped to consumers is trending up,
and we’re working to differentiate ourselves from othercompanies by fostering awareness of how products cancause accidents and providing low-risk logistic services.

Hazardous goods
administrators are
assigned to fivegeographic areas.

Building management structures for each area
Assigning and training area administrators● Conduct and promote
improvement activities
under the responsibility ofthe safety manager■Offering practical education through study groups(videoconferences) and guidance during patrols(1) Ascertaining storage quantities and implementing
appropriate management (oversight)(2) Ensuring appropriate handling and storage(3) Educating employees (providing education
that’s useful at home, too)
G-Mark issued by theJapan Trucking Association

45

SENKO INTEGRATED REPORT 2023

SENKO INTEGRATED REPORT 2023

46

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

ESG+H Initiatives

G Governance
Basic Policy
SENKO is a logistics company involved in highly public work that fosters people’s development and supports theirlives. We make every effort to ensure that all corporate activities thoroughly comply with laws, based on the awarenessthat good corporate governance is the foundation of business, as well as regarding governance as a high priority for
management.

Corporate Governance System
We have adopted the following corporate governance system, one that we consider to be optimal, in order to ensure
management transparency and legal compliance based on the company’s size, lines of business, organizational
structure, and other features.

General Meeting of Shareholders
Appointment/dismissal

Accounting auditors

ReportAppointment/dismissal

Board of Corporate
Auditors

Audit

Board of Directors

Accounting
audit

ReportAssist/report

Audit

Auditing Dept.

Consultation
Submission offindings/advice

President andRepresentative Director

ReportLegal counsel

4

The Company has concluded an audit contract with Grant Thornton Taiyo LLC as the accounting auditor, under the terms of theCompanies Act and the Financial Instruments and Exchange Act, and will receive guidance in relation to accounting. Our audit
staff includes six certified public accountants and another 18 employees.

5

The Auditing Department performs internal audits at the Company and subsidiaries with the aim of verifying the status of risk
countermeasures, identifying the status of managing operations and of improvements, and ensuring the effectiveness of theoperation management system. As well, the Auditing Department reports its findings to the Representative Director and theBoard of Corporate Auditors.

6

We established the Nomination and Remuneration Advisory Committee to enhance corporate governance by increasing thefairness, transparency, and objectivity of procedures related to director nominations, compensation, and similar tasks. The
Committee deliberates matters related to those tasks in response to requests for advice from the Board of Directors and reports
its findings to the Board.

Internal Controls Committee

Compensation for officers includes basic compensation, performance-based pay (bonuses), performance-based
stock, and restricted stock compensation. Guided by internal rules, we determine the specific amounts of thecompensation and number of assigned shares, taking into account factors such as the position of the officer, theperformance in the individual fiscal year, and the level of contribution to performance made by each person. In addition,
the Nomination and Remuneration Advisory Committee deliberates the general approach to remuneration structuresand related decisions and reports on its findings to the Board of Directors, which makes final decisions while respecting
the Committee’s findings.
The performance-based stock compensation program was revised in FY2024 to add achievement of ESG goals to theevaluation criteria.
Total FY2023 remuneration by officer category and number of corresponding officers

Sustainability Promotion Council

ReportSupervise

Subsidiaries directlysupervised by SENKOGroup Holding Co., Ltd.
Companies affiliatedwith Living
Support/BusinessSupportCore companies
SENKO Shoji
Co., Ltd.

SENKO Co.,Ltd.

AST Corporation

RuntecCorporation

Smile Corp.

ReportReportCommittees

Total amount of each type of compensation, etc. (millions of yen)

Officer category

Totalcompensation(millions of
yen)

Basic
remuneration

Performancebased pay(bonuses)

Performancebased stockcompensation

Restricted
stockcompensation

Directors(excluding outside directors)

168

82

58

15

12

9

Corporate auditors (excluding
outside corporate auditors)

45

33

11

–

–

2

Outside officers

55

44

10

–

–

6

ReportOperating companies
AdviceNomination and Remuneration
Advisory Committee

ReportInstruct
Audit

Executive Officers

ReportSelection/
supervision

Our Board of Corporate Auditors, which meets at least once a month, reports on, discusses, and makes decisions about legally
mandated matters as well as important matters related to audits.

Policy on determining compensation for officers

Appointment/dismissal
ReportDialog3

Number of
eligible
officers

The Financial Services Agency and the Tokyo Stock Exchange began applying a number of major principles that
contribute to the realization of effective corporate governance as the Corporate Governance Code in June 2015. SENKO
includes all elements of the Corporate Governance Code on its website to clarify the Company’s position on working toenhance corporate governance based on this code.
●Corporate governance report ●Initiatives based on corporate governance principles

1

2

47

The Company’s Board of Directors meets at least once a month and deliberates on issues as required by laws and regulations aswell as important management concerns in addition to being an organization that oversees the execution of business.
Furthermore, so that the Directors, Executive Officers, and key employees execute their duties appropriately and efficiently, theCompany has established the Regulations of the Board of Directors and the Regulations for Administrative Authority to clarify
authority and responsibility. We also verify the status of the implementation of operations and strive to have even moretransparent management.
To implement the sustainable management of the entire group, the Group has established a Sustainability Promotion Council tooversee the activity policies and plans that guide committees related to compliance with applicable business laws, corporate risk,
the environment, and social contribution activities.
We’ve also established an Internal Controls Committee to increase the sophistication of the Group’s internal control activities andensure their thorough implementation. The committee’s responsibilities include oversight of the evaluation of the development
and administration of the internal control system.

SENKO INTEGRATED REPORT 2023

https://www.senkogrouphd.co.jp/ir/governance/

Compliance-based management
Compliance-based management, which complies with laws and regulations and engages in ethical business activities,
is the base for a company to fulfill its social responsibility and earn the trust of stakeholders.
The SENKO Group has established, based on a thorough understanding of the Group’s social obligations, the SENKO
Standards of Business Conduct, which prescribe all items that executives and employees must observe for every aspectof their jobs.
SENKO INTEGRATED REPORT 2023

48

Overview of the SENKO Group

Foundation for Growth

Strategies for Sustained Growth

Data Section

ESG+H Initiatives

G Governance
List of directors and corporate auditors

Director
Managing
Executive Officer
General Manager
of Administration
HQ.

Shigeru
Ono

Position

Director
Managing
Executive Officer
General Manager
of International
Business
Operation HQ.
Director

President andRepresentative
Director
General Manager
of Strategic
Planning HQ.
General Manager
of Products
Business
Promotion HQ.

NoburoSasaki

Yasuhiro
MasudaHidekiTsutsumi

Director

Director

Managing
Executive Officer

Managing
Executive Officer

General Manager
of Living Support
Business HQ.

Responsible for
Trading &Commerce

Kenji
Sugimoto
Director
Responsible for
Logistics

Corporate Auditor

Yasuhisa
FukudaSkill matrix
Corporate
management
andmanagement
strategy

Humanresources andhumanresourcesdevelopment

Financial andaccounting

Yasuhisa Fukuda

●

●

●

Noburo Sasaki●●

Shigeru Ono●

Yasuhiro Masuda●

Hideki Tsutsumi●

Kenji Sugimoto

●

●

●
●

Name

Independent
outsideLegal affairs
and riskmanagement

Global

IT·DX

●

●

●

Sustainability(ESG+H)

●
●

●

●
●
●

●

●

●

Hiroko Ameno

★

●

●

Yasuyuki Sugiura

★

●

●

Yoko Araki

★

●

●

Fumiko Okuno

★

●

●

Yoshiki Kanaga●

Masanobu Uenaka

●
●

●

●

●
●

Masami Washida
Sinichiro Kohara★

Yoshiro Okano

★

●

●

●
●

●

●

Note: The above table is not meant to serve as an exhaustive list of all individuals’ knowledge, experience, and skills.

YoshikiKanagaDirector
Responsible for
Refrigerated &Frozen Logistics

HirokoAmeno

YasuyukiSugiuraDirector(Outside)

Director(Outside)

Business risks
Risks related to the condition of SENKO’s businesses, accounting, and other operations that could have a material
impact on the judgment of investors are described in its securities reports.

Risk Management System

49

Yoko
Araki

FumikoOkuno

Masanobu
UenakaDirector(Outside)

Director(Outside)

Full-time
Corporate Auditor

Masami
WashidaSinichiro
KoharaYoshiroOkano

Full-time
Corporate Auditor

Corporate Auditor(Outside)

Corporate Auditor(Outside)

SENKO INTEGRATED REPORT 2023

SENKO’s key management issues include ensuring stable earnings and establishing a sound management base bymanaging all risks associated with the execution of operations. The risk management system is described below.

1

To systematically and effectively mitigate the risks that the Group faces, and to take corrective action, we have established the Risk
Management Regulations. Every department that controls risk is also tasked with formulating and distributing regulations, etc., aimed at
reducing risks that affect the entire group and for taking effective action when such risks materialize.

2

When a risk materializes and is expected to cause serious damage, the department controlling this risk and the department in which therisk is expected to arise collaborate on reporting to the Board of Directors.

3

The Auditing Department verifies the status of risk countermeasures, etc., and reports to the Representative Director and the Board of
Corporate Auditors.

Establishing business continuity plans (BCPs)
Every Group location has established a business continuity plan (BCP) in order to swiftly recover logistics in the eventof a disaster. In an emergency, support and recovery activities will be carried out promptly under the direction of thehead office and the manager of the department taking countermeasures on the ground using the BCP. We use cloudservices to ensure information systems will continue to be available in the event of a natural disaster, allowing logistics
structures to be maintained.
SENKO INTEGRATED REPORT 2023

50

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

ESG+H Initiatives

H Health
Health management vision

SENKO Group Culture Festival held for the first time in 2023
SENKO is involved with a variety of programs designed to revitalize employees and theorganization through enjoyment of culture and sports and to create a smile-filled future. Aspart of those programs, the SENKO Group Culture Festival was held for the first time in 2023.
More than 300 employees participated in the event, whose main theme was “strengthening
connections between employees.” It was livestreamed, which helped make it a major
success by allowing as many workers as possible to participate. It served as a meaningfulchance to provide connections and new-employee experiences through culture.

Health Management Declaration
Reflecting our effort to become a group that creates thetrends of the future through innovation, we’ve identified
ESG+H (health) management as a key issue in our
Medium-Term Business Plan, and we consider promoting
employee health to be a top management priority.
As part of our ongoing implementation of healthmanagement, we’ve communicated the SENKO Group HealthManagement Declaration both inside and outside the company
to help the Group come together to achieve its goals
concerning this issue. The Health Management Declaration
incorporates our wish that employees enjoy lifelong health andhappiness, both while they work in a healthy and happymanner as employees and after they retire as working adults.

Health management strategy map
To guide our implementation of health management, we’ve
formulated a health management strategy map that illustrates
the connections between specific initiatives by linking
management issues that the Group wishes to resolve throughhealth management and employee health issues that merit
improvement.

Employees who aren’t able to meet each other in the course of their normal work
were able to deepen their bonds.

Culture and sports activities led by various operational teams
Various operational teams related to culture and sports helped deepen the connections between people and between
people and the organization, boosting many employees’ interest in culture and sports by letting them experience what
it’s like to push human potential to the limits as an athlete and by sharing excitement and enthusiasm.

Principal health management initiatives
Hosting seminars, study groups and events
We host a variety of seminars and health events based on the health management strategy map and leverage themto improve employees’ health literacy, maintain and improve physical and mental health, and boost work engagement.
• Women’s health seminar• Line care seminars• Workplace environment improvement
study groups• Nursing staff training study sessions

At a strength measurement session

51

SENKO INTEGRATED REPORT 2023

• Establishment of a consulting service for diseases specific to women• Adult-onset disease prevention seminars• Strength and gait measurement sessions• Health improvement activities planned in each geographic area ofJapan

Employees listen to their gait measurement results.

Participants drew on their respective strengths in different areas to bring excitement
and fun to the venue.

A poster advertising the consulting service for diseases
specific to women■Go Club
The Senko Group is helping popularize the culture of the gameof go by hosting a go festival and sponsoring the Senko Cup, aprofessional tournament for female players, and the Senko Cup
International Go Tournament. Members of the Go Club, which
was formed in 2015, participated in a variety of tournaments in
FY2023, with one member placing as runner-up in individualcompetition at the Shizuoka Go Festival (an “amateur champion”
tournament) and the team notching a second-place finish in the
55th Kyoto-Shiga Occupational Group Go Tournament. They
continue to work to boost their performance.
■Golf ClubSENKO’s Golf Club won the 9th Japan Club Team Golf
Tournament for the second year in a row, placing first out of 257
teams from around Japan (including 1,028 players). In addition,
the club worked with Gamo Golf Club, which the Group owns, tohost the facility’s first charity golf tournament. Proceeds were
donated to the town of Hino, Shiga Prefecture, which is using
them to fund youth development programs.
■Judo ClubSENKO’s Judo Club competed at the FY2022 All-Japan SeniorJudo Weight-class Championship, with members placing second
and third in women’s individual competition. The team isworking together so that they can achieve even more ambitious
goals while balancing training with their job responsibilities.
SENKO INTEGRATED REPORT 2023

52

Overview of the SENKO Group

Strategies for Sustained Growth

Data Section

Foundation for GrowthTen-year Financial and Nonfinancial Highlights
FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023Operating revenues

Business results (millions of yen)
Operating revenues

333,883

398,447

434,000

455,435

492,127

529,609570,030

572,405

623,139696,288

Operating costs and expenses

299,039

357,431386,321405,757

440,671471,129

503,687

500,653

534,352

595,013

Selling, general and administrative expenses

22,72227,36630,181

32,59534,36938,84745,68650,23564,01575,738Operating profit

12,122

13,64917,497

17,081

17,087

19,631

20,656

21,516

24,771

25,535

Ordinary profit

11,305

13,234

17,17817,301

17,316

19,876

20,74422,227

26,103

26,151

9,503

11,681

12,081

14,24915,233

15,341

12,893

10,547

10,677

17,841

17,596

20,036

Net income attributable to owners of parent

6,503

7,073

8,542

8,950

Comprehensive income

7,045

9,804

8,630

12,249Per-share information (yen)Net assets per share

539.52581.46613.71661.61

741.44785.08823.61909.55985.67

1,075.69

Net income per share

51.89

55.06

60.43

61.67

62.64

76.90

79.51

93.87

104.09102.90Net income per share after adjustment for residual shares

45.17

50.41

56.32

58.74

58.08

71.31

73.75

78.44

91.99

91.11

Annual dividend

16.00

17.00

20.00

22.00

22.00

26.00

26.00

28.00

34.00

34.00

Financial position (millions of yen)
Net assets

72,302

92,743100,009

114,090

118,056

126,895

134,181

146,120

160,854

179,103

Total assets

243,570

285,309269,461

285,958

333,972

340,491

356,308

436,066

480,818

581,850

Cash flows from operating activities

10,68919,22816,14920,84824,56727,02231,09831,85831,88547,694

Cash flows from investing activities(24,956)(17,978)(2,288)(3,678)(37,020)(15,770)(18,030)(46,309)(46,141)(52,319)

Cash flows from financing activities

14,551

6,209(21,492)(8,626)

9,940(13,224)(9,155)36,757

5,773

17,730Cash and cash equivalents at end of year

17,66725,476

17,76526,197

23,79522,801

27,14250,371

42,19356,147

3.63%

3.43%

4.03%

3.75%

3.47%

3.71%

3.62%

3.76%

3.98%

3.67%

33.70%

35.00%

35.10%

30.90%

30.50%

27.60%

529,6092019/3570,030 572,405

2020/32021/3Operating profit
19,631

20,656

21,516

2019/32020/32021/3(Millions of yen)

623,1392022/3696,2882023/3(Millions of yen)
24,771

25,5352022/32023/3

Net income attributable(Millions of yen)
to owners of parent
14,249
11,681

12,081

2019/32020/3

15,233

15,3412022/32023/3

Decision-making indicators
Operating profit margin (%)
Equity ratio (%)

27.80%

28.40%

32.60%

35.10%

Return on assets (ROA) (%)

5.01%

5.00%

6.19%

6.23%

5.59%

5.89%

5.95%

5.61%

5.70%

4.92%

Return on equity (ROE) (%)

9.80%

9.50%

10.10%

9.50%

8.90%

10.10%

9.90%

11.00%

10.80%

10.00%

Price earnings ratio (PER)

8.63

14.17

11.35

11.63

13.22

11.95

10.54

11.16

8.63

9.18

Final share price at end of fiscal year (yen)

448

780

686

717

828

919

838

1,048

898

945

Price book-value ratio (PBR)

0.83

1.34

1.12

1.08

1.12

1.17

1.02

1.15

0.91

0.88

Number of employees

8,738

11,562

11,992

13,915

14,496

16,004

16,69319,194

20,72523,727

Number of drivers

2,534

4,000

4,024

4,105

5,051

5,397

5,450

6,004

6,226

6,708

Number of operators

3,692

4,528

4,496

4,575

5,143

5,429

5,602

6,135

6,011

9,481

79

86

86

111

133

132

131

141

161

176

2021/3

Net assets ( )Equity ratio ( )35.00(Millions of yen)
(%)

35.10
30.90

146,120
126,895 134,181

30.50

27.60

160,854

179,1032022/32023/3

Nonfinancial information

Number of group companies
Modal shift ratio (%)
Total warehouse floor space (tens of thousands of square meters)

—

—

—

63.4%

65.7%

69.8%

70.0%

74.9%

76.1%

64.7%

252

280

293

322

342

366

387

392

406

447

3,352

4,540

4,745

4,426

5,179

5,525

5,790

6,229

6,727

6,960

Number of ships under management

19

18

18

18

68

69

69

69

69

72

Of which, number of owned ships

11

11

11

11

34

34

33

38

40

40

Number of vehicles (tractors)*During the fiscal year ended March 31, 2023, the company finalized the provisional accounting treatment for business combinations. As a result, principal management
allocation of the cost of acquisition resulting from the finalization of provisional accounting treatment.

indicators and other figures related to the fiscal year ended March 31, 2022, reflect important revisions to the initial

Outside recognitionis participating (SENKO Group Holdings Co., Ltd. and SENKO Group companies)

Initiatives in which the Group

2023 Constituent MSCI JapanESG Select Leaders Index*1
2023 Constituent MSCI Japan Empowering
Women Index (WIN)*1*1 Neither inclusion in MSCI indexes nor use of MSCI’s logo, trademarks, service marks, or index names on this page should be construed to indicate the support, guarantee, or promotion of SENKO Group
Holdings Co., Ltd. by MSCI or its affiliates. MSCI indexes are the exclusive property of MSCI. The names and logos of MSCI and its indexes are trademarks or service marks of MSCI and its affiliates.

53

SENKO INTEGRATED REPORT 2023

ISO14001

ISO14001

ISO14001●Certified organization / 4 branches of SENKO
Co., Ltd. and Sankyo Freight Co., Ltd.
Tokyo Nohin Daiko Co., Ltd.
●Certification No. / JQA-EM1492●Certifying institution / JQA (Japan Quality
Assurance Organization)●Certified organization / Smile Corp.
●Certification No. / JQA-EM7663●Certifying institution / JQA (Japan
Quality Assurance Organization)●Certified organization / Harcob
Co., Ltd.
●Certification No. / EMS542855●Certifying institution / BSIGroup Japan

2019/32020/32021/3Return on equity (ROE)

11.00
10.10

2019/3

10.80

9.90

2020/32021/32022/3(%)

10.00

2023/3

Green Management Certification●Certified organization / 9 business sites at
SENKO Co., Ltd.; SENKO Line Co., Ltd.; Atsugi
Senko Transport Co., Ltd.; Chushikoku Logistics
Co., Ltd.; Eikichi Kaiun Co., Ltd.; Minami Kyushu
Senko Co., Ltd.; Tokyo Nohin Daiko Co., Ltd.;
Kitanihonunyu Corporation●Certifying institution / Foundation for Promoting
Personal Mobility and Ecological Transportation

SENKO INTEGRATED REPORT 2023

54

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

Financial Review
During the fiscal year under review, the Group’s pursuit of M&As combined with Group-wide efforts to grow sales andrevise the fee and cost picture to address challenges including rising electricity, fuel, and prime costs and a fall-off in
special demand associated with the pandemic. As a result, we achieved year-on-year increases in operating revenue,
operating profit, ordinary profit, and net income attributable to owners of parent.
FY2022 (1H)

FY2023 (fiscal year
under review)Operating revenues(hundreds of millionsof yen)Operating revenues(hundreds of millionsof yen)Change(hundreds ofmillions of yen)

Percentagechange (%)

Food logistics

822

869

46

5.6

Chain store logistics

837

943

106

12.6

Fashion logistics

495

525

30

6.1

Other logistics

396

506

110

27.7

2,550

2,842

292

11.4

Housing logistics

617

617

0

0.0

Chemical logistics

849

892

43

5.1

Other logistics

390

407

18

4.5

4,406

4,758

353

8.0

1,461

1,598

137

9.4

Living Support

288

390

102

35.3

Business Support

76

107

31

40.7

Products

—

106

106

—

Adjustment

0

3

3

—

6,231

6,963

731

11.7

Distribution
logistics
Logistics
Business

Trading & Commerce

Total

55

Vs. previous fiscal year

Logistics
Business

Despite challenges including increases in the cost of electricity and fuel and a rapid decline infreight movements during the second half of the fiscal year, operating revenues rose 35,267 million
yen from the previous year to 475,833 million yen while segment profit rose 472 million yen to
23,748 million yen thanks to factors including efforts to grow sales and revise prices andcontributions from M&As.

Trading &Commerce

Despite the contribution from Cartas Co., Ltd., a home-use paper wholesaler that became aconsolidated subsidiary last fiscal year, and efforts to revise prices, boost sales, and improve the cost
picture, factors including declining demand for packaging materials used in takeout and delivery
services and rising supply costs weighed on performance as operating revenues rose 13,697 million yen
from the previous year to 159,821 million yen. Segment profit fell 26 million yen to 2,421 million yen.

LivingSupportThanks to factors including growth in customer volume and store foot traffic as a result of the
post-pandemic normalization of daily life and contributions from new stores and M&As, operating
revenues rose 10,172 million yen from the previous year to 38,985 million yen, while segment profit
rose 894 million yen to 186 million yen.

Business
SupportThanks to factors including efforts to grow sales and improve the cost picture and contributions
from M&As, operating revenues rose 3,107 million yen from the previous year to 10,733 million yen,while segment profit rose 152 million yen to 1,252 million yen.

Products

Chuo Kagaku, which became a consolidated subsidiary during the fiscal year under review, realized
an operating loss of 180 million yen on business revenue of 10,604 million yen.

SENKO INTEGRATED REPORT 2023

Assets, liabilities, and net assets

Total
assetsTotal assets as of March 31, 2023, were 581,850 million yen, an increase of 101,032 million yen
from the previous year. Current assets came to 201,773 million yen, up 30,739 million yen from theend of the previous fiscal year. That result reflects increases of 13,490 million yen in cash and cash
equivalents; 5,303 million yen in trade accounts, notes receivable, and contract assets; 6,013 million
yen in merchandise and finished goods; 2,290 million yen in raw materials and supplies; and 1,920
million yen in other current assets. Non-current assets were 380,077 million yen, an increase of70,293 million yen from the previous fiscal year. That result reflects increases of 58,973 million yen
in property, plant and equipment; 1,226 million yen in intangible assets; and 10,093 million yen in
investments and other assets.

Liabilities

Total liabilities as of March 31, 2023, increased 82,783 million yen from the end of the previous
fiscal year to 402,747 million yen. Current liabilities totaled 165,357 million yen, up 27,710 million
yen from the end of the previous fiscal year. That result reflects increases of 5,383 million yen in tradeaccounts and notes payable, 2,015 million yen in electronically recorded obligations, 4,208 million
yen in short-term loans, 2,260 million yen in lease obligations, and 13,100 million yen in othercurrent liabilities. Non-current liabilities totaled 237,389 million yen, up 55,072 million yen from theend of the previous fiscal year. That result reflects increases of 37,546 million yen in long-term loans,
9,052 million yen in long-term lease obligations, 1,428 million yen in retirement benefit liabilities,
1,093 million yen in asset retirement obligations, 2,853 million yen in deferred tax liabilities, and
2,871 million yen in other non-current liabilities.

Net assets

Net assets as of March 31, 2023, were 179,103 million yen, an increase of 18,248 million yen fromthe previous year. That result reflects increases of 10,247 million yen in retained earnings, 2,327
million yen in foreign currency translation adjustment, and 4,578 million yen in non-controllinginterests. As of March 31, 2023, the equity ratio was 27.6%, a decrease of 2.9 percentage points
from the end of the previous fiscal year.

Capital expenditures and depreciation
Capital expenditures in the fiscal year under review totaled 41,853 million yen. Principle expenditures included
19,401 million yen on building expansion and related projects (primarily in the Logistics business), 8,490 million yen inproperty purchases and related transactions (primarily in the Logistics business), and 4,444 million yen on vehicle andtransport equipment (primarily in the Logistics business).
Depreciation in the fiscal year under review rose to 22,429 million yen from 19,817 million yen the previous fiscal year.

Cash flows
Cash and cash equivalents at the end of the fiscal year under review rose 13,953 million yen from the end of theprevious fiscal year to 56,147 million yen.
Net cash provided by operating activities came to 47,694 million yen. This was mainly due to income before income
taxes of 25,736 million yen, depreciation of 22,429 million yen, and increased funds due to a decrease in tradereceivables and contract assets of 9,704 million yen, which collectively offset a decrease in funds due to a decrease inaccrued liabilities of 3,243 million yen and income taxes paid of 9,223 million yen.
Net cash used in investing activities came to 52,319 million yen. This was mainly due to purchase of property, plantand equipment of 34,578 million yen and purchase of shares of subsidiaries resulting in change in scope of consolidationof 15,500 million yen.
Net cash provided by financing activities came to 17,730 million yen. This was mainly due to net decrease of
short-term loans of 5,149 million yen, repayments of long-term loans of 13,424 million yen, repayments offinance/lease liabilities of 6,603 million yen, and dividends paid of 5,089 million yen, which offset proceeds fromlong-term borrowing of 48,346 million yen.
SENKO INTEGRATED REPORT 2023

56

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

Consolidated financial statements
Consolidated balance sheets(Millions of yen)

As of March 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and cash equivalents
Trade accounts and notes receivable, and contract assets
Electronically recorded obligations - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and equipment, vehicle and vessels
Accumulated depreciation
Machinery and equipment, vehicle and vessels, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Retirement benefit asset
Guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Business commencement expenses
Total deferred assets
Total assets

57

SENKO INTEGRATED REPORT 2023

(Millions of yen)

As of March 31, 2022

As of March 31, 2023

Liabilities
45,09391,893
3,543
14,18395845
15,411(34)

58,583
97,197
4,476
20,197909
3,136
17,332(59)

171,033

201,773

Current liabilities
Trade accounts and notes payable
Electronically recorded obligations - operating
Current portion of bonds payable
Short-term loans
Lease obligations
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for loss on disaster
Other

50,6759,076
24
36,335
4,632
5,052
6,585
427
416
24,42056,058
11,091—40,543
6,892
5,113
7,544
420
170
37,521

137,646

165,357

40,00022,08186,746
15,970
573
196
336
7,050
950
5,120
3,291

40,00022,054
124,292
25,022
608
256
494
8,479
2,044
7,973
6,163

182,317237,389

319,963402,747

28,47931,54591,737(8,159)28,47931,318
101,984(7,712)

143,602

154,070

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans

1,472
70
755
916

1,668
(2)
3,082
1,690

Total accumulated other comprehensive income

3,215

6,439

Total current liabilities
Non-current liabilities
Bonds payable
Convertible bonds with share acquisition rights
Long-term loans
Lease obligations
Provision for retirement benefits for directors (and other officers)
Provision for special repairs
Provision for share awards
Retirement benefit liability
Asset retirement obligations
Deferred tax liabilities
Other

187,259(96,162)
91,096
101,063(73,248)
27,815
13,528(10,611)
2,917
90,31323,823(8,890)14,932
4,562
231,639

215,311(103,396)
111,914
100,872(70,635)
30,23622,004(18,454)3,549
114,478
38,250(13,425)
24,824
5,608
290,612

12,104
11,94924,054

11,727
13,55325,28017,957279
7,703
14,388
5,115
9,066
(418)
54,091

20,248541
10,207
17,034
5,571
11,360(780)
64,184

309,784

380,0770—Share acquisition rights
Non-controlling interests

388
13,648366
18,2260—Total net assets

160,854

179,103

480,818

581,850

480,818

581,850

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity

Total liabilities and net assets

SENKO INTEGRATED REPORT 2023

58

Overview of the SENKO Group

Strategies for Sustained Growth

Data Section

Foundation for Growth

Consolidated financial statements

Consolidated statements of income(Millions of yen)

Fiscal year ended
March 31, 2022

(April 1, 2021 - March 31, 2022)

Fiscal year ended
March 31, 2023

623,139696,288

Operating costs and expenses

534,352

595,013

Operating gross profit

88,786

101,274

Selling, general and administrative expenses

64,01575,738Operating profit

24,771

25,535Interest income

100

132

Dividend income

286

198

Share of profit of entities accounted for using equity method

402

370

Revenue from subsidies

531

244

Rental income from land and buildings

356

402

Other

1,670

1,925

Consolidated statements of changes in equity

Total non-operating income

3,349

3,273

Fiscal year ended March 31, 2022 (April 1, 2021 - March 31, 2022)

Interest expenses
Other
Total non-operating expenses
Ordinary profit

1,244

1,668

772

989

2,016

2,658

26,103

26,151

Extraordinary income
1,469

Subsidy income

248

279

Gain on sale of non-current assets

111

253

Gain on sale of investment securities

—

40

359

2,043

Impairment losses

31

1,540

Loss on tax purpose reduction entry of non-current assets

253

279

Loss on retirement of non-current assets

182

271

Loss on office withdrawal—

184

Compensation expenses

298

132

Loss on cancellation of leases

202

50

Provision for loss on disaster

416—

Loss on COVID-19 impact

211—

Loss on sale of non-current assets

43—

Total extraordinary income
Extraordinary losses

Loss on disaster

28

—

12

—

Provision of allowance for doubtful accounts

3—

Total extraordinary losses

1,684

2,458

Income before income taxes

24,77825,736

Income taxes - current

8,831

8,907

Income taxes - deferred

(230)

507

Total income taxes

8,601

9,415

Net income

16,177

16,320Net income attributable to owners of parent

SENKO INTEGRATED REPORT 2023

Balance at beginning of period

16,320

(337)
47
781
927
—
1,419
17,596

207
(81)
2,353
773
463
3,715
20,036

16,609987

18,566
1,469(Millions of yen)
Accumulated other comprehensive income

SharecapitalCapitalsurplusRetainedearnings

TreasurysharesTotalshareholders’ equity

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges26,56429,806

81,211(4,638) 132,944

1,759

32

1,915

1,915
(4,708)15,233

3,830(4,708)15,233

—
—
—

3,830
(4,708)15,233(3,661)
100
(136)

—
—
—

(3,661)100(136)

RemeaForeign
surements
currencyof definedtranslation
benefitadjustment
plans

57

(10)

Total
Share
accumuacquisition
lated otherrightscomprehensive
income1,839

410

Noncontrollinginterests

Total net
assets

10,926

146,120

Issuance of new shares
Dividends of surplus
Net income attributable toowners of parent
Purchase of treasury shares
Disposal of treasury shares(3,661)
139

(39)
(136)

Change in ownership interestof parent due to transactions
with non-controlling interests

Provision of allowance for doubtful accounts for subsidiaries and associates

Net income attributable to non-controlling interests

Shareholders’ equity(April 1, 2022 - March 31, 2023)

16,177

Changes during period—

Gain on bargain purchase

Fiscal year ended
March 31, 2023

(April 1, 2021 - March 31, 2022)

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Equity equivalent amount in equity-method affiliates
Total other comprehensive income
Comprehensive income
Total comprehensive income attributable to:
Owners of parent
Non-controlling interests

Operating revenues

Non-operating expenses(Millions of yen)

Fiscal year ended
March 31, 2022

(April 1, 2022 - March 31, 2023)

Non-operating income

59

Consolidated statements of comprehensive income

943

979

15,233

15,341

Net changes in items otherthan shareholders’ equity, net
Total changes during period
Balance at end of period

—

(287)

38

697

927

1,375

(21)

2,721

4,075

1,915

1,739

10,525(3,521)

10,658

(287)

38

697

927

1,375

(21)

2,721

14,73428,47931,54591,737(8,159) 143,602

1,472

70

755

916

3,215

388

13,648160,854

Fiscal year ended March 31, 2023 (April 1, 2022 - March 31, 2023)
Shareholders’ equity

Balance at beginning of period(Millions of yen)
Accumulated other comprehensive income

SharecapitalCapitalsurplusRetainedearnings

TreasurysharesTotalshareholders’ equity

Valuationdifferenceonavailablefor-salesecurities

28,47931,54591,737(8,159) 143,602

1,472(5,093)
15,341—(5,093)
15,341————(5,093)
15,341

(0)
217
3

—
—
—

(0)
217
3

Deferred
gains orlosses onhedges70

RemeaForeign
surements
currencyof definedtranslation
benefitadjustment
plans

755

916

Total
Share
accumuacquisition
lated otherrightscomprehensive
income3,215

388

Noncontrollinginterests

Total net
assets13,648160,854

Changes during period
Issuance of new shares
Dividends of surplus
Net income attributable toowners of parent
Purchase of treasury shares
Disposal of treasury shares

(230)
3

Change in ownership interestof parent due to transactions

(0)
447

with non-controlling interests
Net changes in items other

—

196

(72)

10,467196(72)(7,712) 154,070

1,668

(2)

than shareholders’ equity, net
Total changes during period
Balance at end of period—(227) 10,247

28,47931,318 101,984

447

2,327

(22)

4,578

773

3,224

2,327

773

3,224

(22)

4,578

18,248

3,082

1,690

6,439

366

18,226

179,103

7,781

SENKO INTEGRATED REPORT 2023

60

Overview of the SENKO Group

Consolidated statements of cash flows(Millions of yen)

Fiscal year ended
March 31, 2022

(April 1, 2021 - March 31, 2022)

61

24,77819,8171,071
2(2,232)
874
218
186
416
(386)
(251)
1,244
(68)
253
(248)
—
—
31
182
—
298
202
(5,123)(592)
3,654(1,685)22(837)

Fiscal year ended
March 31, 2023

(April 1, 2022 - March 31, 2023)

25,73622,4291,333
158(2,504)
583
398
158
(246)
(330)
(167)
1,668
(253)
279
(279)
(1,469)
(40)
1,540
271
184
132
50
9,704
(1,050)(3,243)
878
(377)
1,827

Subtotal

41,83057,371

Proceeds from subsidy income
Interest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities248
377(1,249)(9,321)
31,885279
936(1,669)(9,223)47,694

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Payments for investments in capital of subsidiaries and associates
Purchase of investment securities
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Purchase of shares of subsidiaries resulting in change in scope of consolidation
Other
Net cash provided by (used in) investing activities(2,071)
2,028(30,311)907(730)(5,668)(653)(1,097)354(8,837)(60)(46,141)(2,934)
3,476(34,578)799(1,131)—(1,666)(2,023)
1,631(15,500)(391)(52,319)

Cash flows from financing activities
Net increase (decrease) in short-term loans
Proceeds from long-term loans
Repayments of long-term loans
Repayments of finance lease obligations
Proceeds from issuance of bonds
Redemption of bonds
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidation
Other
Net cash provided by (used in) financing activities

4,671
22,563(4,035)(5,359)10,000(13,288)(3,630)(4,704)
(148)
(249)
(45)
5,773

(5,149)48,346(13,424)(6,603)—(24)(0)(5,089)
(275)
(29)
(18)
17,730304

848

Net increase (decrease) in cash and cash equivalents(8,177)

13,953

Cash and cash equivalents at beginning of period

50,371

42,193

Cash and cash equivalents at end of period

42,19356,147

Effect of exchange rate change on cash and cash equivalents

SENKO INTEGRATED REPORT 2023

Data Section

Foundation for Growth

Share Status and Company Profile

Consolidated financial statements

Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for share awards
Increase (decrease) in provision for loss on disaster
Interest and dividend income
Foreign exchange losses (gains)
Interest expenses
Loss (gain) on sale of non-current assets
Loss on tax purpose reduction entry of non-current assets
Subsidy income
Gain on bargain purchase
Loss (gain) on sale of investment securities
Impairment losses
Loss on retirement of non-current assets
Loss on office withdrawal
Compensation expenses
Loss on cancellation of leases
Decrease (increase) in trade receivables and contract assets
Decrease (increase) in inventories
Increase (decrease) in accrued liabilities
Increase (decrease) in accrued consumption taxes
Decrease (increase) in consumption taxes refund receivable
Other

Strategies for Sustained Growth

Share Status(As of March 31, 2023)

Company profile(As of March 31, 2023)

Listed exchange:

Prime Market, Tokyo Stock Exchange

Trade name:

SENKO Group Holdings Co., Ltd.

Stock code:

9069

Established:

September 1916

Authorized shares:

294,999,000

Incorporated:

July 1946

Outstanding shares:

157,070,496

Head Office:2-8-10 Shiomi, Koto-ku, Tokyo, Japan

Representative:

Yasuhisa Fukuda, President andRepresentative Director

Share capital:

28,479 million yen

Number of shareholders: 29,489

Administrator ofshareholders’ register

Mitsubishi UFJ Trust and Banking
Corporation
Osaka Stock Transfer Agent Division
3-6-3, Fushimimachi, Chuo-ku,
Osaka 541-8502, Japan

Group employees: 23,727
Group companies: 176

Number
Percentageof shares
held(Thousands)

Major shareholders
The Master Trust Bank of Japan, Ltd.

20,19613.02%

Custody Bank of Japan

18,037

11.63%

Asahi Kasei Corporation

11,676

7.53%

SENKO Group Employee’s Stockholding

7,616

4.91%

STATE STREET BANK AND TRUST COMPANY

5,569

3.59%

JPMORGAN CHASE BANK

4,067

2.62%

Mitsubishi UFJ Trust and Banking Corporation

4,060

2.62%

Isuzu Motors Ltd.

4,039

2.60%

Sekisui Chemical Co., Ltd.

3,393

2.19%

Aioi Nissay Dowa Insurance Co., Ltd.

3,169

2.04%

Main group companies
Domestic
SENKO Co., Ltd.
Runtec Corporation
Tokyo Nohin Daiko Co., Ltd.
SENKO A Line Amano Co., Ltd.
Nippon Marine Co., Ltd.
ACROSS TRANSPORT Corp.

Shareholders by type

SENKO Shoji Co., Ltd.

Treasure stock

Smile Corp.

1
1,947,369
1.24%

Financial institutions
39
61,686,118
39.27%

Individuals andothers28,87826,694,468
17.00%

Overseas
financial
institutions
and individuals

Chuo Kagaku Co., Ltd.

Overseas
Dalian Tri-Enterprise Logistics Co., Ltd.

Shareholders
by type261
30,718,286
19.56%

Other domestic corporations
277
33,508,341
21.33%AST Corporation

Shanghai Senko International Freight Forwarding Inc.
Guangzhou Senko Logistics Co., Ltd.
Senko International Logistics Pte. Ltd.

Securities firms
33
2,515,914
1.60%

Shanghai Smile Corp.
HONG KONG SMILECORP LIMITEDKOREA SMILE CORP LIMITED
SMILECORP VIETNAM CO., LTD.

SENKO INTEGRATED REPORT 2023

62