Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

Our Philosophy

Overview of the SENKO Group

Universal Mission and VisionCorporate Group Creating Future Trends
As a corporate group fostering people and supporting people’s lives, we contributeto achieve 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.

History of the SENKO Group

3

Review of Businesses (At a Glance)

5

Business Activities

7

Logistics
Trading & Commerce
Living Support
Business Support

Strategies for Sustained Growth
Relationship between Business Activities
and the SDGs
17

SloganA Message from the President

19

New Medium-Term Business Plan

23

Our Thoughts into a Mission & Vision

Feature: The SENKO Group’s
Decarbonization Strategy

27

Moving Global

Foundation for Growth

Go beyond logistics
Make the world go round
Revolutionize business

ESG+H Initiatives

31

Environment

33

Safety37

Social40

Governance

43

Health47

TOPICS

48

Values that should be shared withall our group employees (IP CReD)

In order to realize our vision, it isessential that we undertake corporate
activities in accordance with thinking
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 andcorporate activities in a spirit of goodfaith to earn stakeholders’
understanding. In compiling thisIntegrated Report, the Group’s first, wehave sought to provide a multifacetedand comprehensive look at the SENKOGroup’s business activities, including not
only financial information, but also ESG(environment, social, and governance)
content. We’re committed to fulfillingthe imperative of accountability bydisclosing information in a timely andappropriate manner through this report
as well as our corporate website,
securities reports, the SENKO Group
Report, and other tools.

Reference Guidelines
International Integrated Reporting
Council (IIRC, currently the VRF)
International Integrated Reporting
Framework
SASB (Sustainability AccountingStandards Board)
Guidance for Collaborative Value
Creation (Ministry of Economy, Tradeand Industry)

Scope of Report

Data Section

Corporate Values

Editorial Policy

Ten-year Financial and Nonfinancial
Highlights

49

Financial Review

51

Consolidated Balance Sheets

53

Share Status and Company Profile58

The scope of coverage includes theactivities of SENKO Group Holdings Co.,
Ltd. and group companies.

Reporting Period
This report covers business activities forthe period between April 1, 2021, andMarch 31, 2022. However, some
activities that took place after April
2022 are also covered.

Disclaimer

Integrity

PassionCommitment

Respect

Diversity

The SENKO Group provides noguarantee concerning the outcome of
the forward-looking statements in thisreport as they will be affected by various
factors, including unforeseen changes in
economic conditions.

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

1

SENKO INTEGRATED REPORT 2022

SENKO INTEGRATED REPORT 20222

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 integrates 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 Inc. 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)

623,139

2020
2021

2022

Terauchi Co., Ltd. becomes a subsidiary of the Company as it
expands its Living Support business.
Self Grow Inc. becomes part of the Group as it looks toaccommodate increased hiring of foreign human resources.
Cartas Co., Ltd. becomes part of the Group as it expands its sharein the home-use paper wholesale industry.
Air Planners (S) Pte. Ltd. becomes part of the Group as it expands
its international logistics business.
COSPA Wellness Co., Ltd. becomes part of the Group as it expands
its presence in the fitness sector.

26,103

227,692
180,552
125,165

6,232

4,207
4,581
1990

2000

2010

2022

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 activein 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 2022

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 consulting on
distribution issues. In 1973, toexpress our determination to take on
the challenges of businesses otherthan distribution, the corporate namewas changed to SENKO Co., Ltd.

September 2016 marked the 100th anniversary of the Company. A new
corporate philosophy was formulated to recognize the corporate name change to
SENKO Group Holdings Co., Ltd. in April 2017 (as part of the transition to a holding
company structure). In Logistics, in addition to increasing development of logistics
centers overseas, we will move forward with plans to use automation andlabor-saving technologies in these centers, while providing customers with highvalue-added distribution services. Also, we will strengthen new areas, such as
Living Support, to build the third pillar of our company, in addition to Logistics andTrading & Commerce.

Cefeel Koto
SENKO INTEGRATED REPORT 2022

4

Overview of the SENKO GroupAt a Glance

Strategies for Sustained Growth

Building on the Logistics business, which comprises the basis for our growth, we’re taking advantage of Group synergies todevelop business that make a positive impact on society, for example through our Trading & Commerce business, 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 and society, for example by entering the Living Support
business, as a group that provides support for people’s lives.

CO2 emissions*1 (land transport business)

271,659

Trading & Commerce

Living Support

CO2 emissions per 1 million yenof revenue

1.01

t-CO2/1 million yen

2020*1 Total, Scope 1 + Scope 2

17

13

companies

12companies

Ordinary profit

billionbillion

Net income attributableto owners of parent
ROEbillionBreakdown of revenue
Other businesses

50.3%

41.9%
*3 Excluding private, non-sales vehicles

Percentage of female
directors

41.2

10.4

27.3

(Regular hiring in April 2022)(As of April 1, 2022)(As of June 28, 2022)%

Traffic safety
activities

Blood drives

306

%

735

participants

participants%

Trading &Commerce

24.6

Governance

SafetyPercentage of
total revenue%

Safety Excellence
Workplace-certified sites

Logistics

69.4%■ Operating profit■ Ordinary profit

6,231

Females as apercentage ofmanagement positions

6.0(Hundreds of millions of yen)

4,921

Power
savings

Fuelsavings%(Living Support,
Business Support)

Operating profit and ordinary profit

5,296

Percentof total

95.2%

Social activities%

Revenue
5,724

76.1

Environmentally friendly
vehicles as a percentageof the fleet*3

Social(G Mark workplaces)

186

Number ofcertified sites
Certification ratio

5,700

7.8%

2022 (FY)

2021

t-CO2

Females as apercentage of newly
hired graduates%

Net D/E ratio

2020

Diversity

billionOperating profit

2022 (FY)2021*2 Activities to reduce environmental impacts through the reuse and recycling of resources

Principal business indicators¥623.1
¥24.8
¥26.1
¥15.2
10.8
0.95

kWh

Green distribution
modal shift rate

t-CO2

*2

Including 18 non-consolidated companies as of March 31, 2022.

Revenue

18,990,000

1.01

Recycling-basedsociety

2,165
Scope2
1,803(power savings)
Scope3 (recycling338
based society )Scope1(fuel savings)

companies

18,342 18,502 18,990

CO2 reduction activity results

t-CO2

companies

271,659

0.99

0.96

4,306

Business Support

Renewable energy solar power generation

242,554 245,405

t-CO2

t-CO2

119

Data Section

Environment

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

Logistics

Foundation for Growth(Hundreds of millions of yen)

171 173

196 199207 207215 222

248

261

100

Vehicle accident
severity rate*4

Occupational accident
frequency rate*4

0.563

1.696

0.591

2.235

%

0.572

32.1

%

2020

2021

2022 (FY)36.4%

Ratio of external
auditors

50

%

1.771

0.563

Nationwide certification
ratio for truck transport
workplaces

Ratio of outside
directors

1.696
2020

2021

2022 (FY)*4 Scope: SENKO Co., Ltd. and SENKO Group logistics companies(As of June 28, 2022)

ESG indexes for which SENKO has been selected2022 Constituent MSCI Japan *5
ESG Select Leaders Index
FY20185FY2019FY2020

SENKO INTEGRATED REPORT 2022

FY2021

FY2022FY2018FY2019FY2020

FY2021

FY20222022 Constituent MSCI Japan Empowering *5
Women Index (WIN)*5 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 2022

6

Overview of the SENKO Group

Logistics

Strategies for Sustained GrowthFoundation for Growth

Data Section

Risk dispersion

Group

T OPICS

Combining proprietary strengths
to provide new services that go
beyond logistics

Helping solve issues in the transport industry

Modal shift

SENKO launches Logistics Bus, a new service forlong-distance shipping on certain core routes

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 Co., Ltd. /Nippon Marine Co., Ltd.

SENKO Co., Ltd. began operating Logistics Bus
service between the island of Kyushu and the mainisland of Honshu (including the Kansai, Chubu, andKanto regions). The service, which sells space basedon customers’ freight volume, is attracting attention
as a highly convenient solution for long-distanceshipping that allows cargo to be loaded andunloaded at multiple “stops” in the manner of an
express highway bus.
Although it’s becoming increasingly difficult toprovide stable service for long-distance shipmentsthat travel in excess of 600 kilometers each way due
to factors including a driver shortage and workstylereforms, SENKO offers stable shipping across adiverse range of channels that include atransportation system using cross-docking as wellas truck, ship, and rail service. Our goal is topopularize the Logistics Bus system to help resolve
issues facing the transport industry.

Example Logistics Bus service from
Kyushu to Kanto
Freight can be loaded and unloaded at multiple
stops (distribution stations) and ports.

Atsugi site

Tosu site

Port of
Oita

Port of
Shimizu

Business overview

Business strengths

Despite the effects of rising fuel prices, we worked to promote services, lower costs, and boost productivity as thevolume of goods, which had fallen dramatically due to the effects of the COVID-19 pandemic during the previous fiscal
year, recovered. Revenue rose 45,188 million yen from the previous year to 432,538 million yen thanks to factors
including contributions from M&As. Segment profit rose 3,615 million yen to 23,013 million yen.

Tapping proprietary strengths to provide new value to customers and society
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

Percentage of
total revenue

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

Revenue

Logistics

3,874

FY2021SENKO INTEGRATED REPORT 2022

Operating profit

230

4,325
194

69.4%

7

Strength 1

Logistics

FY2022

FY2021

Shipping expertise
specifically tailored tomeet industry needs
Distribution logistics

FY2022

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 20228

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

59.0 %

14.2 %

Distribution logistics

59.0%¥255.4 billion

Logistics
business¥432.5 billion

Logistics
business¥432.5 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

Housing logistics

14.2%¥61.8 billion

Other logistics

Percentage of total revenue

Percentage of total revenue

Logistics
business¥432.5 billion

Logistics
business¥432.5 billion

19.9 %

6.8 %Resin raw materials, resin molded products,
processed goods, etc.
Chemical logistics

19.9%¥85.9 billion

9

SENKO INTEGRATED REPORT 2022

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

6.8%¥29.5 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 2022

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

T OPICS

International
logistics
solutions

Creating a group of household paper trading companies to boost synergies

Striving to increase market share in the household paper
wholesale industry through intra-group collaboration

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 ICTIn November 2021, we welcomed Cartas Co., Ltd.,a household paper trading company headquarteredin Chuo-ku, Tokyo, whose operations include thewholesale, planning, and sale of household paperand convenience goods, to the Group.
Group companies AST Corporation and AZFIT Co.,
Ltd. operate broad-reaching businesses in thehousehold paper wholesale segment, and adding
Cartas will serve to further accelerate synergies
within the Group. By moving ahead with efforts toimproveproduct
development
and
price
competitiveness and streamline logistics by taking
advantage of delivery networks and expertise, wewill expand our market share in the household
paper wholesale industry while helping create
pleasant lifestyles for consumers.

Principal companies

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

Business overview

Business strengths

Although we made AZFIT, a household paper products wholesaler, a consolidated subsidiary in April 2021 andworked to increase sales and reduce costs, revenue fell 8,770 million yen from the previous fiscal year to 153,049
million yen due to factors including the application of revenue recognition accounting and other related standards andincreases in purchase price for fuel sales. Segment profit fell 130 million yen to 2,905 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

Operating profit
30

Trading &Commerce

1,618

29

1,530

24.6%

FY2021

11

SENKO INTEGRATED REPORT 2022

FY2022

FY2021

FY2022

We discover business opportunities
and procure products from a variety
of suppliers. Taking advantage ofGroup companies’ logistics expertise,
we help craft and successfully
execute business designs.
From production plants to small
retail shops, we realize optimal supply
chain management (SCM) throughintegrated logistics operations andproprietary, advanced IT systems.
The SENKO Group’s approach of
integrating products and logistics in its
businesses provides comprehensive
support for customers’ developmentof 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 2022

12

Regional
revitalization

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

Living Support
Group

T OPICS

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

Expanding our fitness business and nursing care services in the Kansai region

Plant factories

Support for the
next generation

Principal companies

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

Health*As of April 2022.

An era in whichpeople live into
their 100s

Roles of the businessIn our Living Support business, where we are working to expand the health, lifestyle, and food domains, we madeTerauchi Co., Ltd., a membership-based general wholesaler and retailer, a consolidated subsidiary in January 2021. We
also expanded our business domain by welcoming DIA Cleaning Co., Ltd., which operates cleaning and coin laundrybusinesses, to the Group in 2022.
Revenue in our “other businesses” category, which combines Living Support and Business Support businesses, rose
14,315 million yen from the previous fiscal year to 37,550 million yen thanks to the inclusion of new consolidated
subsidiaries in the Group, increased sales, and reduced costs. Segment profit rose 161 million yen to 99 million yen.

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

Other businesses

Revenue

Percentage of
total revenue(hundreds of millionsof yen)Otherbusinesses

Other businesses

376

Operating profit(hundreds of millionsof yen)

232

6.0%

–1
FY2022

FY2021

FY2022

FY2021*Until FY2022, the Living Support and Business Support business results were reported under the “other businesses” category.

SENKO INTEGRATED REPORT 2022

1

In our Living Support business, we strive to
identify trends in society and discover newsocial value. The SENKO Group is committed
to making a positive impact on society by
redoubling investments centering on
businesses related to health, lifestyles, andfood in a way that meets contemporarysocial needs.
We will also accelerate the creation ofbusinesses and new services that fit into
consumers’ lives while maximizing synergies
with group companies. In this way, we willcontribute to the extension of healthlifespan, enrich nursing care and social
welfare, and realize 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 andlifestyleneedssBusiness overview

Other businesses

13

In July 2022, COSPA Wellness Co., Ltd. (formerly
known as OG Sports Co., Ltd.) joined the Group.
The company is striving to achieve new growth in
the SENKO Group, which has a proven record in
health-related businesses, particularly in thefitness space.
With the addition of a company that operates 62
facilities* in and around the Kansai region,
including fitness, swimming, and tennis clubs, theGroup will be able to expand the area served by its
fitness business, develop new services inconnection with its nursing care business, andotherwise strengthen its businesses in the healthdomain. We will continue to develop our Living
Support business, which supports consumers’
lifestyles.

R

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.

COSPA Wellness Co., Ltd. joins the GroupChildcareHousework
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 2022

14

Resolution oflogistics issues

Overview of the SENKO Group

Strategies for Sustained GrowthFoundation for Growth

Data Section

Business Support
Group

T OPICS

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 employment of foreign workers and supporting mastery of technical skills

Welcoming a foreign worker staffing business to the Group to
meet societal demand

Temping andeducation
Contact centers

Principal companies

As a result of welcoming Self Grow Inc., a
Showa-ku, Nagoya-headquartered company that
operates a foreign worker staffing business withfacilities in the Kanto region and Aichi Prefecture, tothe Group, we’ll be able meet growing demand forforeign worker staffing services as Japan’s labor
population shrinks. We’ll grow our foreign worker skill
mastery and staffing business by taking advantage ofthe expertise of Self Grow, which provides
employment support such as training for technicalinterns to a unique customer base including
machinery and food manufacturing companies,
nursing care facilities, and hospitals, to augment thestaffing business currently operated by groupcompany S-TAFF Co., Ltd. In addition, we’re working
to utilize group companies’ management resources
to expand the scale and geographic coverage of ourtraining business, for example by offering training fortechnical interns through Crefeel Nagareyama (inChiba Prefecture), an in-house training facility.

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

Business overview

Business strengths

In addition to expanding our business domain by welcoming Self Grow Inc., which offers foreign worker staffing andtraining services, to the Group, we launched real estate businesses founded on new schemes, for example by loaning
logistics facilities developed and built by the Group to group companies.
Revenue in our “other businesses” category, which combines Living Support and Business Support businesses, rose
14,315 million yen from the previous fiscal year to 37,550 million yen thanks to the inclusion of new consolidated
subsidiaries in the Group, increased sales, and reduced costs. Segment profit rose 161 million yen to 99 million yen.

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

(hundreds of millionsof yen)1

Contact centers
Form/document processing

Otherbusinesses

232

6.0%

–1
FY2022

Staffing
Site acquisition
ICT support
Foreign worker employment support

FY2021

FY2022

FY2021*Until FY2022, the Living Support and Business Support business results were reported under the “other businesses” category.

15

SENKO INTEGRATED REPORT 2022

Marketing services
Technical training

Infrastructure
Human resources andlabor management
Technological development
Procurement

Improving the corporate
value created by customers’core operations

376

Services(hundreds of millionsof yen)Datacenters

Operating profit

Sales
Marketing

Percentage of
total revenue

Other businesses

Shipping logistics

Revenue

Purchasing
logistics

Other businesses

Other businesses

Manufacturing

Principal activities

BPO services offeredby the SENKO Group

Support activities
SENKO INTEGRATED REPORT 2022

16