CSR REPORT

2019

Environmental Measures; Safety Initiatives;
Health Initiatives; Social Initiatives<Features>
Overcoming social challenges with modal shift
Human and eco-friendly integrated land and sea transportation
Integrated land and sea transportation resilient to disasters
The future of integrated land and sea transportation that
Senko is aiming forMoving Global
Go beyond logistics
Make the world
go roundRevolutionize
business

1

S E N K O
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2 0 1 9Senko Group Holdings

Message from the President

Promoting CSR management asa corporate group supporting
peoples' lifestyles and industry
In April 2017, the Senko Group made the transition to aholding company structure, and is currently focusing on a
five-year medium-term business plan dubbed "Senko
Innovation Plan 2021 (SIP21)."
One of the management policies of SIP21 is to "emphasize
corporate social responsibility (CSR)," with initiatives being
put in place for the environment, safety and society. In
addition to new "Health initiatives" as one of our priority
actions, we have been promoting the physical and mental
health of all employees, and was certified as an "Excellent
Organization of Health & Productivity Management" for thesecond consecutive year in February 2019.
As part of FY2019 initiatives, our efforts for further
advancing modal shift for our "Environmental measures"
led to Senko receiving the "Grand Prize" for the 19th
Logistics Environment Award, as well as three "Special
Awards" from the Japan Association for Logistics andTransport. We also received four awards as part of the"Excellent Business Entities Working on Modal Shift." Wewill continue our efforts towards reducing ourenvironmental impact, as well as reducing working hours
and responding to driver shortages.
For "Safety initiatives," we established a new form ofsafety training with "coaching techniques" to encourage
employees to become more aware. The use of more
efficient training methods helps to improve and maintainsafety levels.
Initiatives for "Social initiatives" include running"Children's Traffic Safety Workshops" to help children
learn about traffic safety, as well as operating daycare
centers to help contribute to local communities. We arealso placing considerable effort for boosting interest in
traditional cultures, by becoming a special sponsor forinternational Go tournaments.
As a corporate group supporting the lifestyle ofpeople and industry, the Senko Group as a whole willcontinue to promote CSR management to gain the trustof all our stakeholders. We are also taking a long-term
approach to business under the banner of "Sustainable
Development Goals (SDGs)" adopted by the United
Nations.
Senko Group Holdings Co., Ltd.
President and Representative Director
CSR Promotion Committee Chairman:

Yasuhisa Fukuda

Contents
Message from the President
Business overview
Medium-term management plan and
CSR policy■ Features
Overcoming social challenges withmodal shift① Human and eco-friendly integrated
land and sea transportation② Integrated land and sea
transportation resilient to disasters③ The future of integrated land andsea transportation that Senko isaiming for■ Environmental measures
Environmental measures digest
Environmental Report■ Safety initiatives
Safety initiatives digest
Safety Report

2
3
5

7
9
11
13
15
19
21

■ Health initiatives
Health initiatives digest

25■ Social initiatives
Social initiatives digest
Social Report
Corporate GovernanceCorporate data

27
29
31
33

■ Editing policy and scope of reporting
The Senko Group established the CSR Promotion
Committee and since FY2008, has published the"CSR Report" covering topics such as "environmental
conservation" and "road safety" that have always
been given top managerial priority.
The editing policy is as outlined below.
(1) CSR activities characteristic to the Senko Groupduring the reporting period are presented as"Features."(2) The scope of the report covers activities of the Senko
Group.
(3) Reports cover activities conducted from April 2018
through March 2019, with some covering activities
conducted after April 2019.
(4) Environmental reports are made in accordance withthe "Environmental Report Guidelines (2018)" issued
by the Japanese Ministry of the Environment.

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Senko Group business domains

4 core business domains of
SENKO GroupAs a "trendsetting corporate group" that nurtures people and supports them in their daily lives,
the Senko Group is determined to create new trends in services and products that drive the future.

* Number of group companies current as of end of March 2019

Logistics 91companies
group■ Salescomposition

We have expanded our logistics to support customers inindustries relating to housing and construction materials andchemical products, in addition to retail industries encompassing
general supermarkets, drugstores, home improvement stores,
and apparel.
Furthermore, for the food sector we have freezing andrefrigeration warehouses as well as a nationwide low-temperature(both chilled and frozen) logistics network which uses methods
including refrigerated trucks and railway containers.
We also have business centers outside Japan (local companies,etc.) to create a multimodal transportation system between Japanand the world, and for our global logistics center business.

Retail productlogistics

Total

5,296

billion yen

Other logistics
Chemicals logistics[Major companies]
SENKO Co., Ltd. / RUNTEC Coporation / Tokyo Nohin Daiko Co.,Ltd.
SENKO A LINE AMANO Co.,LTD / ACROSS TRANSPORT Co.,Ltd. etc.

70.8%

Housing logistics

Operating revenue 3,754 billion yen

Logistics
Sales composition

39.3%

Operatingrevenue

2,083

billion yen

mass merchandisers, retailers,food, fashion, etc.

Housing Logistics
Sales composition

11.7%

Operatingrevenue622billion yen

Homebuilder products,
associated materials, etc.

Chemicals Logistics
Sales composition

13.9%

Operatingrevenue

738 billion yen

Resin materials, resin molded
products, processed goods, etc.

Other Logistics
Sales composition

5.9%

Operatingrevenue3

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2 0 1 9310 billion yen

Except Retail Product,
Logistics, Housing Logistics,
Chemicals Logistics

Trading & Commerce
Business Group 15 groupcompanies

We are involved in business related to oil sales, commercial trading, and international
trade. We sell fuel, logistics-related commercial materials like logistics equipment andsupplies, everyday items, packaging materials, foodstuff, liquor, and more.
We also cover international trade, such as importing and exporting customers’ raw
materials and products, as well as other international transactions.
[Major companies]
SENKO SHOJI CO., LTD. / AST CORPORATION / SMILE CORP. / Marufuji Co., Ltd., etc.

■ Sales composition

Total

5,296

billion yen

26.9%

Operating revenue 1,423 billion yen

Other business groups
Business Support

companies
12 group

We operate a logistics consulting business and an information system business fordeveloping and managing IT solution systems, to create an optimum logistics system
to meet the diverse needs of our customers.
We also have a call center business serving our customers in the real-estatedevelopment and personnel service sectors, as well as online shopping businesses.

[Major companies]
Logi Solution Co., Ltd. / SENKO INFORMATION SYSTEM Co., Ltd. / Senko Real EstateCo., Ltd. / S-TAFF Co., Ltd. / Senko Business Support Co., Ltd., etc.

■ Sales composition

Total

5,296

billion yen

2.3%

Operating revenue 119 billion yen

Living Support

companies
14 group

We have developed businesses to support the everyday life of consumers, such as
nursing care, fitness, housework services, and moving services.
"SENKO School Farm TOTTORI" also uses closed-down schools for welfare-based
agricultural to grow and sell leafy vegetables and mushrooms.

[Major companies]
KEIHANNA helper station Co., Ltd. / Blue Earth Japan Co., Ltd. / Venus Co. Ltd. /Senko Living Plaza Co., Ltd. / Senko School Farm TOTTORI Co., Ltd., etc.
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Senko Group

Medium-term Management Plan and CSR Policy

Enhancing corporate value andhelping to create a better futuresociety
Implementing CSR management as a united group

Senko Group growth strategy

SIP21(Senko Innovation Plan 2021)
Group Strategy Direction

The Senko Group launched the five-year
medium- term business plan "SIP21" in April 2017.
One of those policies was "Emphasize corporatesocial responsibility (CSR)."

Medium-Term Business Plan

"SIP21" (Senko Innovation Plan 2021) is our growthstrategy for supporting industry and daily living, tochallenge ourselves to create new trends while
unlocking another 100 years of business.

1 Expand business areas
Accelerate international business expansion, further
enhance existing domestic businesses, and enternew business areas, such as Living Support andBusiness Support. Also, actively promote business
partnerships and M&As to support the above.

2 Enhance brand value

Realization of Moving Global
Go beyond logistics, Make the world
go round, Revolutionize business

Unite as a group to drive
economic and social innovationin and out of Japan.
Medium-Term Business PlanFY 2022 Forecast

5● Operating revenues

700.0 Billion● Operating profit

28.0 billion● Ratio of operating profit

4.0%● Return on equity

10.5%● Equity ratio

40.2%

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2 0 1 9Consolidate the Group’s overall strength, deliver“services that surprise and delight,” and evolve from“customer satisfaction” (CS) to “customer delight” (CD).

3 Improve employee satisfaction (ES)Through the creation and active utilization ofdiverse programs, boost employee satisfaction to
attract diverse personnel, help them to grow, andincrease the value of their working environment.

4

Emphasize corporate social
responsibility (CSR)

Grow alongside society, while preserving andfostering industry, culture, and nature in each area.

5 Gain trust from capital markets
Work to maximize the corporate value of the entire
Group, while strengthening financial soundness.

Medium-Term Policy of Senko Group CSR
The Senko Group as well as its suppliers and business partners are striving to place a greater
emphasis on compliance and CSR.

Priority Measures
1 Environmental Measures① Focus on meeting energy-saving targets as a Specified Corporation② Make improvements related to "Reduce with energy-saving," "Recycling rate" and "Green productprocurement rate" and contribute to a recycling-oriented society.
③ Organize environment-related information of group companies, and aim to achieve the sameenvironmental targets.
④ Actively install fixtures with a low environmental impact, such as LED lighting and low-emission vehicles.
⑤ Increase use of alternative energy sources, such as installing solar panels on new facilities andincreasing the number of large CNG vehicles.
⑥ Actively promote modal shift to customers as a way of implementing green logistics.

2 Safety Initiatives① Establish a health and safety management system that caters to the characteristics of group companies.
② Utilize big data to centralize various types of safety-related systems.
③ Actively install (active safety) technologies to prevent accidents from occurring.
④ Create opportunities to share and learn about safety technologies.

3 Health Initiatives① Manage the health information of all group employees to promote the importance of staying healthy.
② Enhance health management to eliminate accidents caused by health problems.
③ Conduct stress checkups to develop management systems for preventing mental health problems.
④ Work with health insurance unions to strengthen health promotion activities.

4 Social Initiatives① Hold traffic safety classes and local clean-up drives to contribute to the local community.
② Organize volunteer activities, such as education support programs outside Japan.

Promotion System of CSR

Individual committees for "Compliance," "Corporate Ethics," "Risk Management," "Environmental
Promotion" and "Social Contribution Promotion" are in charge of running various CSR activities in order tofulfill our social responsibility across a broad scope.
The CSR Promotion Committee, which is chaired by the president of Senko Group Holdings Co., Ltd.,
supervises each of these committees.

Compliance Committee
Corporate Ethics Committee
CSR Promotion
Committee
Committee Chairman:
President

Risk Management Committee
Social Contribution Promotion Committee

Operatingcompanies

Environmental Promotion Committee

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Feature

Overcoming social challenges with modal shift

Human and eco-friendly

integrated land and sea transportation
Group companies are implementing a "modal shift" with the view of global environmental conservation.
With advances currently being made to work style reform, modal shift is also gaining attention as a way
to unshackle truck drivers from long working hours. The Senko Group is harnessing its marinetransportation capabilities as it actively proposing the switch to integrated land and sea transportation.

Senko Line co., Ltd.
President andRepresentative Director

Otoya Yamada

7

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2 0 1 9Senko Group's overall strength means
effective modal shift
One of the most pressing challenges that companies arefacing today is how to cut back CO₂ emissions resulting fromtheir business activities. By combining multiple combinations oftransportation methods such as trucks, ships and rail, there are
more opportunities to come up with ways to transport goods
efficiently while also reducing our impact on the environment.
As a comprehensive logistics company, the Senko Groupnaturally covers land transportation as well as playing an activerole in marine transportation, which means that this type ofmodal shift is our forte.
We have three shipping companies within our group, and weare harnessing these resources to the fullest extent to help
reform our customers' logistics with integrated land and sea
transportation.

Minimizing time lost to transshipping,as well as an effective means forovercoming labor shortage issues

Boosting efficiency with masstransportation means like ships
The reason why modal shift can reduce the impact on
the environment is because different types oflong-distance mass transportation like ships and rail canbe combined along transportation routes where only
trucks had been used, which significantly limits theamount of energy used for transportation.
Cargo ships can carry several hundred truckloads ofcargo each time. An example of this is with RORO ships,
where cargo is loaded while still on its trailer (with truck).
A single ship has the capacity to carry 160 trucks.

160 trucks

While a modal shift to ships may at first appear to have alonger lead time compared to truck transportation, utilizing
RORO ships and other means of loading containers andtrailers as-is as part of a modal shift seamless with landtransportation means cargo can be transported in a timecomparable to transportation by truck.
The shift to this modal shift eliminates the need forlong-distance driving in trucks, and also helps to alleviate
driver shortages.

=

Transportation
efficiency

1ship

Examples of modal shift by the Senko Group
Example 1

Japan Novopan Industrial Co., Ltd. <Osaka → Tokyo/Kanagawa>▶Transportation method: truck → ship → truck▶CO₂ emissions: 10.2% reduction▶Driver operating time: 81.6% reduction

Revise transportation relying solely only drivers, and utilize ships
to reduce driver workload

Construction material used to be transported long-distance by truck fromthe plant in Sakai City, Osaka Prefecture to sites in Tokyo and Kanagawa,however was switched to RORO ship between Izumiotsu Port and Chiba
Port as part of a modal shift.
Kashima Plant

Ariake Port

Shinmonji Port
Fukuoka
Logistics Center

Example 2

Sakai Plant

Atsugi
Logistics Center

Chiba Port

Izumioitsu Port

Marine route
Land route

ADEKA Corporation <Ibaraki → Fukuoka>

Seamless connections between truck and ship transportation for▶Transportation method: truck → ship → truck efficient transportation with complete temperature control.
Trucks had been used to transport processed oils from the Kashima Plant▶CO₂ emissions: 34.7% reduction
in Ibaraki Prefecture to the logistics center in Fukuoka Prefecture, however▶Driver operating time: 87.6% reduction
was switched to ferry transportation between Ariake Port and Shinmonji
Port as part of a modal shift

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Feature

Overcoming social challenges with modal shift

Integrated land and sea transportation

resilient to disasters

Senko's integrated land and sea transportation ensures superior value by maximizing its marinetransportation capabilities from a BCP perspective as part of preparedness for unpredictable disasters.
The following is an actual example of how Senko provided alternative transportation to ensure
customers' business continuity during heavy flooding in western Japan in July 2018.
Senko Co., Ltd.
Higashi-kyushu Vehicle Branch
Branch Manager

Hidehiko Tonomura

Supporting customers with the group's
marine transportation capabilities andseamless connectivity during emergency
situations when rail is unavailable
Asahi Kasei Corporation transports goods produced at its plant in
Nobeoka City in Miyazaki Prefecture by freight train to destinations
throughout Honshu. Sudden heavy flooding in western Japan cut
off the JR Sanyo Main Line, and company staff approached Senko:"Is there anything you can do to help?"
In situations where rail transportation cannot be used, the firstalternative that comes to mind is the use of ships. Yet marine
shipping companies were likely to become overloaded if all
manufacturers affected by the flooding were to start using marinetransportation, and were thus reluctant to accept shipping orders.
Under these conditions, Senko came up with the plan of loading
goods onto JR containers at Nobeoka, and using a combination ofships, rail and trucks to transport the goods to their destinations in
Honshu. We also coordinated with Senko Line Co., Ltd. to create
and execute a plan for handling high-volume shipments to the
Chūkyō Metropolitan Area, by assigning temporary cargo ships
between Hososhima Port and Yokkaichi Port.

9S E N K O
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2 0 1 9Heavy flooding in western Japan in
July 2018 cut off the JR Sanyo Main
Line, the logistics lifeline

In addition to this example, the Senko
Group also successfully provided
alternative transportation for approx.

3,700 Japan Freight Railway
Company cargo containers.

But the Senko Group was there...

certificate ofappreciation from Japan

Quickly drew up a transportation plan to efficiently
connect trucks, ships and rail loaded with cargo intrain containers, as part of an alternative means ofmass volume, long-distance transportation
Loadingday
1 day
2 days① Truck② Ferry③ Truck④ Train⑤ Truck

We received a

Freight Railway Company as a result.

Nobeoka (plant) → Oita Port Truck (trailer)
Oita Port → Port of Kobe Ferry

Port of Kobe → JR Osaka center Truck (trailer)
JR Osaka center → JR Ishikawa center Train

JR Ishikawa center → Kanazawa (destination) Truck

Rail cut off byheavy flooding
×× × ×××

Port of Kobe

② Ferry③ Truck④ Train
JR Osaka center= modal shift route using ordinary rail

Oita Port① Truck
NobeokaKanazawa⑤ Truck
JR Ishikawa center= alternative integrated marine-land route after disaster

Combination of logistics infrastructure(ships, rail, trucks)++

Senko Group's integrated land andsea transportation

Using rail containers for deliveries
without transshipments

Alternative means of transportation are not always
available after disaster strikes. We have shipping
companies in our group and have a thorough overview ofthe entire situation to enable us to organize alternativetransportation using ships to prioritize urgent cases. It iswith this capability that we were able to provide effective
support in situations like these.

There were concerns about the lack of trucks required
for transporting cargo over land between the Port of Kobe
and Kanazawa. Instead, Senko organized the use of
freight trains between Osaka and Ishikawa prefectures.
By loading cargo into rail containers from Nobeoka, wewere able to achieve multimodal transportation using
trucks, ships and trains without transshipping.

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Feature

Overcoming social challenges with modal shift

The future of integrated landand sea transportationthat Senko is aiming for

Modal shift is gaining attention in society now—how will it develop in the future? The Senko Group isseeking to further enhance its systems and improve its services to respond to the growing needs ofcustomers. Here is an insight into the type of integrated land and sea transportation that the Senko
Group envisions in the future.

The future of modal shifts is for resolving
human issues as well as environmental ones

Senko Group Holdings Co., Ltd.
Representative Director,
Marine Transportation
Businessusupervisor

Akira Taniguchi
11

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2 0 1 9Modal shift started gaining attention in the late 1990s as one
means of environmental conservation aimed at reducing CO₂
emissions during transportation. More recently, the rapidly aging
population in Japan has led to a shortage of drivers and thegovernment has also introduced work style reform—there are
increasing expectations for modal shift being a means of resolving
labor shortages. There is likely to be an ever growing need in theshift from long-distance mainline transportation using trucks, tomarine and rail transportation where drivers are not needed. The
Senko Group has always operated its own ships, which it has used
to propose to customers a broad range of transportation modes.
We will further be harnessing the relative strengths of trucks, railand ships in an effective manner as part of our aims to achieve amodal shift that expands the selection of transportation routes that
we are able to provide.

Group-wide capability for proposing
the growth of joint transportation withcargo ships
One of the concepts we are suggesting is adopting a
new approach to joint transportation using cargo ships.
Until now, transporting goods by cargo ship requiredaround 500 to 700 tons of freight in total to betransported. With joint transportation, multiple
companies are able to ship around 100 tons each. Yet
joint transportation often failed to take off, because fromthe customer's perspective, there were many thatthought that it would be less troublesome to organize
land transportation on their own. Now this approach isreaching its limit given the current situation with theshortage of drivers. This is where we have stepped in andharnessed our group capabilities to develop integrated
land and sea transportation that is easier for customers
to use. Our initiatives in the future revolve aroundproposing such approaches. We are not only limited toship transportation—we provide a selection from a
combination of transportation by trucks, rail, RORO ships
or cargo ships to suit customer requirements. Customers
are free to choose a means of transportation that suits
their own business situation.

Senko Group marinetransportation companies
Senko Line Co., Ltd.
Began operations in April 2018 as a 100%shipping subsidiary of Senko Co., Ltd. Building on
the extensive know-how of the Senko Group, its
main characteristic is playing a key role for
integrated land and sea transportation withcoast-wise marine transportation, warehousing andland transportation.

Nippon Marine Co., Ltd.
A long-established shipping company founded in
1900. With a superior capability in domestic cargomarine shipping, it is one of the leading marine
shipping companies in Japan. In addition todomestic shipping, Nippon Marine also operates
some of the world's rarest special-purpose vessels
between Japan and Chile, transporting sulfuric acidon the outbound route and copper ore on theinbound.

Further strengthening ties with ourthree marine transportationcompanies for greater synergy
Senko Group's marine transportation capability is thedriving force behind its integrated land and sea
transportation. The Senko Group has three marinetransportation companies: Nippon Marine Co., Ltd. andEikichi Kaiun Co., Ltd. that joined the group in April 2017,
and Senko Line Co., Ltd. that began operating in April
2018 to inherit Senko's marine transportation business.
With this system in place, there are now approximately
70 ships under the control of our three companies, which
greatly expands our transportation capability. Each ofthese three companies has its own strengths, allowing us
to provide customers with a broad range of possibilities.
The Senko Group will be increasing its coordination withthe three companies into the future. We will continue
working on expanding the modal shift and coming up
with alternative forms of transportation resilient to natural
disasters, to provide more reliable transportation forcustomers as well as further building up our marinetransportation business.

Eikichi Shipping Co., Ltd.
Provides services such as domestic transportation(cargo ships, towing), harbor tug operations (tugboats) and high-speed patrols mainly around theSeto Inland Sea area. Towing services are capableof transporting large freight and high-volume cargothat cargo ships are unable to handle.

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Environmental
Digestmeasures[Initiatives in FY2019]

Helping to reduce CO₂ emissions
Senko's highly praised "Green Logistics"

The Senko Group is proposing and providing "Green Logistics" that features a combination of rail and marinetransportation to reduce our environmental impact. As a company contributing to environmental conservation measures,
received the "Grand Prize" for the 19th Logistics Environment Award, as well as three "Special Awards" from the Japan
Association for Logistics and Transport. We also received four awards as part of the "Excellent Business Entities Working
on Modal Shift."

We received the "Logistics Environment Grand Prize" and "Special
Award" from the Japan Association for Logistics and Transport
We also acquired the "Eco-Rail Mark" and "Eco-Ship Mark"accreditation under a system launched by the Japanese Ministryof Land, Infrastructure and Transport to certify logistics companies
actively making an effort to protect the environment by using morethan a specific ratio of marine and rail transportation.
Awards Ceremony held on June 29, 2018

Switching to rail transportation for shipping beverages
between Kyushu and Kansai

Osaka Freight
Terminal

Kyoto Plant

Kobe Freight
Terminal

Akashi Plant

Shift to rail transportation
on round trip

Tosu Freight Terminal

Tosu City, Saga Prefecture(logistics center)

Shifted from long-distance truck transportation to round trip rail transportation forshipping beverage manufacturer products.
Our reduction in CO₂ emissions and efficient truck operations were highly recognized.

64% reduction)

CO₂ emissions reduced by 990t-CO₂/year (Switched to rail transportation as well as efficient truck
operation for shipping chemical products
Switch from long-distance truck transportation to rail transportation for shipping
chemical manufacturer products.
This helped reduced CO₂ emissions and cut down driver work time.

KomakiPD Center

Shift to rail transportation
SapporoFreight Terminal
SendaiFreight Terminal
Fukuoka
Freight Terminal

Destination

Nagoya Plant

Nagoya Freight Terminal

Effective use as collection
trucks day and night

Other

64% reduction)

CO₂ emissions reduced by 101t-CO₂/year (13

S E N K O
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2 0 1 9Senko Group "Environmental Measures" at a Glance!

Switched to ferry transportation for shipping products
between Kanto and Kyushu

Switched from land to ferry transportation for chemical manufacturer's oil products.
This reduced CO₂ emissions and driver work time.

Fukuoka
Logistics Center

Kitakyushu PortTokyo Port

Kashima Plant

Switched to ferry transportation using frozen and cold trailers

35% reduction)

CO₂ emissions reduced by 37t-CO₂/year (RORO ship transportation between Kansai-Kanto,
also reducing driver workload

Shifted from long-distance truck transportation to unmanned RORO ship transportation
for shipping residential homebuilder products. This reduced CO₂ emissions and helped
save transportation labor.

In Kanagawa
Prefecture

Atsugi Logistics Center

Chiba Port

Izumioitsu Port

Sakai Plant

Switched to unmanned RORO ship transportation

10% reduction)

CO₂ emissions reduced by 23t-CO₂/year (Received four awards as part of "Excellent Business Entities
Working on Modal Shift"Senko Co., Ltd. received awards in the "Improvement Division,""New Development Division" and "Effective Utilization Division,"and Runtec Corporation in the "Effective Utilization Division."

Received the November 2018 Japan Association
for Logistics and Transport "Award for Excellent
Business Entities Working on Modal Shift"

CSR VOICE
Implementing low environmental impact
activities throughout all our business domains

Kimio Izawa

Senko Co., Ltd.
Safety, Quality & Environment
Management Director andEnvironment Promotion GroupManager

There is growing demand for environmental conservation efforts from society and markets around theworld, including establishing the Paris Agreement, SDGs being adopted at the UN, and more stringent
environmental regulations.
Here at the Senko Group, we understand just how important the relationship between businessactivities and the environment is. With this in mind, we are implementing environmental measures ineach business segment with the goal of "reducing greenhouse gas (CO₂) emissions."
In principle, this involves cutting down energy usage mainly during our warehousing operations,
greater fuel efficiency for our vehicle transportation business, reducing industrial waste to achieve a
recycling-oriented society, and implementing green logistics. As such, we have developed a range ofsustainable initiatives for reducing our environmental impact by coordinating our business activities andenvironmental activities.

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Environmental Measures

Environmental Policy

Environmental policy of senko group
Environmental philosophy
The Senko Group is aiming to become an "environmentally advanced corporation" to ensure thatthe planet we leave behind for future generations continues to be blessed with an abundance of
nature. We achieve this by actively and voluntarily adopting ongoing environmental conservation
measures like activities that reduce our environmental impact and that promote more efficient useof resources, as we play our role for the future and meeting our obligations toward society.

Basic Policy
1. Strive to comply with legislations, rules, agreements and internal regulation related to theenvironment, and implement environmental conservation activities continuously and in aproactive manner as a "good corporate citizen."
2. Top management defines its own "environmental targets," establishes an environmental
activity promotion system and develops environmental management regulations, and strives
to implement ongoing efforts to enhance environmental performance.
3. In addition to supporting efficient, low environmental impact logistics for customers "fromprocurement to disposal," strive to conduct activities that reduce environmental impact from a
product life cycle perspective through trading, information and other associated businesses.
4. Strive to make all Senko Group employees and contracted partner companies aware of these"environmental targets" and provide the relevant education. Also strive to disclose information
on environmental activities to stakeholders in a proactive manner.

Promotion of Environment Management System
The Senko Group has acquired
certification under the "ISO14001"
international standards for environmental
management, as well as "GreenManagement Certification" by theFoundation for Promoting Personal
Mobility and Ecological Transportation
operating under the Ministry of Land,
Infrastructure, Transport and Tourism.
We are implementing activities aimed at
reducing our environmental impact basedon this Environment Management System.
Senko Co., Ltd., Sankyo Freight Co., Ltd.,
Smile Corp. and Harcob Co., Ltd. havealready completed their transition to the
new ISO14001 certification (2015 version).

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ISO14001

ISO14001● Certified organization
4 branches of Senko Co., Ltd.
Sankyo Freight Co.,Ltd.
● Certification No.
JQA-EM1492● Certifying institution
JQA (Japan Quality Assurance
Organization)● Certified organization
SMILE CORP.
● Certification No.
YKA0772699● Certifying institution
LRQA (Lloyd's Register
Quality Assurance)

ISO14001

Green Management Certification● Certified organization
Harcob Co., Ltd.
● Certification No.
EMS542855● Certifying institution
BSI Group Japan● Certified organization
SENKO Co., Ltd. (13 offices), SENKO Line CO.,LTD.
Senko Fashion Logistics Co., Ltd.
Atsugi Senko Transport Co., Ltd., ANZENYUSO CO., LTD.( 3 offices)
Chushikoku Logistics Co., Ltd., EIKICHI KAIUN
CO., LTD.
● Certifying institution
Foundation for Promoting Personal Mobility andEcological Transportation

Environmental Targets and Achievements

Reducing CO₂ and Our Achievements
Senko Co., Ltd. and Senko Line Co., Ltd. track energy consumption and CO₂ emissions from business activities, andupdate our environmental activities with these results. We have continued a range of programs aimed at reducing ourenvironmental impact, and we aim to achieve the CO₂ reduction targets in our Five-Year Medium-Term Management Plan
SIP21, which started in fiscal year 2018: a reduction of at least 8,310 tonnes over the five years of the plan.

[FY 2019 CO₂ Emissions by Energy Source]

INPUT

Diesel oil

12,652 kℓ

Heavy oil

9,447 kℓ

Gasoline

256 kℓKerosene

31 kℓElectricity

71 million kWh

CNG (compressed natural gas)

37,000 m3City gas

145,000 m3

LP gas629 t[FY 2019 CO₂ Emissions by Cause] (Unit: t-CO₂)
Others(city gas, CNG, kerosene)
485 1%

Gasoline
592 1%
Forklifts(diesel oil)
2,401 2%
LP gas
1,886 2%

Boilers
285 0%

Shipping(heavy oil)
25,338 26%

Measures to reduce CO₂

Of_ces andwarehouses, etc.
(electricity)
36,729 37%

Total CO₂
emissions
98,020Automobiles(diesel oil)
30,304 31%[Change in annual CO₂ emissions]Target Achievement Rate

122%

(t-CO₂)100,000

90,052

94,276

95,336

98,020

2016

2017

2018

80,000CO₂ emissions tend to increase as business grows,
but we have achieved a reduction of 2,548t-CO₂ byapplying the following measures.

60,00040,00020,000
0

2015

(FY)

[FY2019 CO₂ Reduction Targets and Achievements] (Senko Co., Ltd. benchmark)Energy conservation

Company Initiatives

Ongoing Activities and FY2019 Initiatives
Energy-saving
logistics centers

Improved vehicle
fuel consumption● Switching high/low voltage departments to new power company.

● Increasing solar power sales and considering captive use.
● Switching to energy-saving equipment (LED lighting/air conditioning).
● Switching to newer post long-term vehicles.
● Introducing non-fossil fuel (natural gas) vehicles.
● Switching to energy-saving vehicles and environmentally friendly

forklifts.

FY2019 CO₂
Reduction Target

FY2019 CO₂
Reduction

Achievementrate

1,530t2,073t

135%

480t

447t

93%

80t

28t

35%

2,090t2,548t122%

1,259t1,173t93%

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2 0 1 9● Reducing fuel consumption with stop/start technology and eco-

Socialrecycling

driving systems, etc..

Industrial waste
recycling● Increasing the recycling volume and rate
● Cultivating recycling contractors for wooden pallets● Using retreaded tires

Other

CO₂ toCustomers

Energy conservation +recycling total
Green logistics● Supporting the promotion of modal shifts● Switching to eco-friendly materials and products● Supporting joint delivery

16

Environmental Measures

Measures to reduce environmental impact

Measures to reduce environmental impact
Certified patents
Introducing trucks equipped with
"Hybrid Electric Chiller Units"
Runtec Corporation has newly
developed "Hybrid Electric Chiller
Units" together with various
manuf a c t ur e r s . I t a c q u i re d apatent for a system that generates
electrical power from the truck
engine and stores it in the battery,which is then used to operate thechiller unit. This reduces fuel andidling time, and helps to limit CO₂
emissions.

17

Introduction of natural gas trucks
We are introducing CNG trucks that use natural gas asfuel with fewer CO₂ and NOx emissions in urban areas fortransportation for apparel, medical supplies andfoodstuff. The Senko Co., Ltd. Mie Branch has also
introduced a large natural gas truck capable of loading
two JR containers as part of efforts of two eco-friendly
logistics, modal shift and reducing exhaust gas
emissions, which has proven popular with customers.

Patent certificate(Patent No. 6353958)

Large frozen and cold truck equipped with "Hybrid Electric Chiller Unit"

CNG truck with lower CO₂ and NOx emissions

Minimizes idling
Truck with storage type cabin cooler

Greater installation and switching overto energy-saving lighting

Mie Senko Logi has added two large trucks with a"storage type cabin cooler" to its fleet to help support
idling stop initiatives. This helps to limit idling while thetruck is waiting, which reduces fuel usage and exhaustgas emissions. It is has proven popular as it makes it
quieter inside the cabin which means a less stressfulenvironment for drivers, as well as eliminates exhaustgases and noise at customer sites.

LED and other types of high-efficiency lighting is actively
being installed at logistics centers and business sites.
Their long operating life reduces the frequency for
replacing lighting fixtures, and also enhances safety due tothe reduction in potential accidents falling down from highpositions. Some logistics centers are also switchingexisting fixtures to LED lighting and new air-conditioning
systems by utilizing government subsidy systems. Even
more business sites are now using energy more efficiently.

Truck equipped with "storage type cabin cooler" to support idling stop initiatives

The existing Ibaraki PD Center switched over to 100% LED lighting

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Solar power business using center rooftops
The Senko Group began its solar power generation business from FY2013 toprepare for the increasing uptake of renewable energy. Two business sites—Kazoand Higashi-Fuji—began operating in FY2019, with a total of 20 sites throughout
Japan in operation as of the end of March, 2019.
In FY2019, Senko Group's first large-scale solar power generation and selfconsumption site will open with Runtec's new Kansai Branch (located in Nishinomiya
City, Hyogo Prefecture). Self-consumption on a 1 MW scale is planned.

Kazo PD Center Stage 2(operating from August 2018)

1.9MW from FY2017
We are now generating 15.5MW from 20 sites across Japan

Power output up

Higashi-Fuji PD Center(operating from April 2018, solar power
generation operating from December 2018)* Based on figures confirmed by the Ministry of Economy, Trade and Industry

Sites in operation
FY2019 plans

There will be 21 sites
across Japan with solar
power generation in FY2019
Runtec Corporation
New Kansai Branch
Runtec's new Kansai Branch planned to be operating from July 2019

[Installation Plans for FY2019]
Site Name

Timing of Operation

Address

Generating Capacity

Runtec Corporation
New Kansai Branch

July 2019

Nishinomiya City,
Hyogo Prefecture

1MW

Reducing Waste and Promoting Recycling
A new initiative for reducing waste andpromoting recycling is the utilization of"retreaded tires," where spent tires arereused for truck tires. The amount of CO₂
emissions generated with retreaded tires
is less than 50% compared to producing
new tires, and we are using these tires
more often.
In FY2019, the total amount of nonrecyclable waste increased 12%* year on
year. Meanwhile, the recycling volume
was 74%.
* Senko Co., Ltd. non-consolidated base[Retreaded tires subcontracting system]
New tires

Spent tires
SHOP

Tire manufacturer
sales stores
Vehicle business sites

Retreaded tire plant

New rubber
SHOP

Tire manufacturer
sales stores

Retreadedtires

Tire casing

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Safety
Initiatives

Digest[Initiatives in FY2019]

New "Coaching" training skill trialed inmodel areas and rolled out nationwide
The Senko Group recognizes that ensuring and improving safety is the core of business activities. More effective training
methods are also being developed and used for safety training provided to drivers. In FY019, a new training method
dubbed "Coaching" to make 'drivers more self-aware' was trialed in four areas in Japan. Coaching trainers are being
instructed and will be deployed throughout Japan.

Establishing a training system for veteran drivers
to increase their capabilities with 'self-awareness'

Training to acquire skills

Encouraging drivers to become more self-aware

Seminars by external lecturers

Listening training

Training for coaching theory

Managers taking part in courses

Effective training with "Coaching"
The Senko Group had previously used the "Teaching" system for training safety by conveying knowledge
and techniques. The newly introduced "Coaching" system is based on the 'interactive communication'
approach involving asking questions and listening. This is an effective method for experienced drivers as it
encourages them to become more aware, and develop their own thinking abilities and applied skills.

FY2019 / Trialed in model areas(Tohoku, Kita-kanto, Kyoto-Shiga, Kyushu)
Acquire skills(Crefeel Koto)

Practical training(10 drivers or more)

Certification assessment(knowledge, practical)

Managers'
seminarAppointed "Coaching Trainer"

FY2019 / Start "Coaching system" with ride-along instruction

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2 0 1 9Senko Group "Safety Initiatives" at a Glance!

Initiatives for reducing risks of dangerous
goods

In addition to a broad range of opportunities for training and learning about transportation safety when handling
dangerous goods, we also focus on making the working environment safer.

Nationwide management system for dangerous goods"Dangerous Goods Supervisors" are assigned to 12 areas around Japan. They provide information related to dangerous
goods, and work to improve associated knowledge and skills.

Dangerous goods (tanker) training

Tanker driver certification test

Measurements and improvements at dusty
work environments
Independent measurement surveys of work environments
at each business site were conducted using measuring
instruments, in line with legal reforms enacted in 2017 toprevent health problems caused by dust. Improvements
were made at locations that exceed concentration control
limits with the cooperation of customers.

[Measurement standard: example]

Measurements conducted at

137 locations /37 business sites[Measurement location ①]
Work involving sorting materials and loading into containers
Measurement A "Nearby dust measurement"
Measurement B "Measurement near work area
where dust is generated"
Enter measurement value

0.379mg/m3

ResultBelow concentration control

Measuring amount of airborne dust

Measuring dust in work area

Example of measurement value of dust in work area

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Safety Initiatives

Safety policy, safety management

Senko Group Safety Policy
Safety Philosophy
The Senko Group will “achieve an eventual goal of zero workplace accidents” based on
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 ofsafety by ensuring safety in business 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 tosecure safety and improve safety in business activities.
◎ The basis of safety is to be strongly conscious of each person working in the Senko Group to behealthy mentally and physically, to practice proper health management.

Priority Measures
1. 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.

Promotion of 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. We apply the
specific results to management ineach region, and run a PDCA
cycle for resolving issues toensure safety.

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2 0 1 9[Safety Skills Evaluation Operating Cycle]● Implementationof Safety skills
evaluation system● Assess improvement
activities● Regional branch or groupcompany Health and Safety
Committee checks
improvement progress

Feedback

A

P

Act

C

Check

Plan

D

Do

● Feedback is provided tobranch managers and groupcompany presidents by theregional branch or groupcompany Health and Safety
Committee● Set branch index and target,and decide on safety activity
plans● Conduct and promote
improvement activities under
the responsibility of the safety
managerAchievement of Safety Goals (FY 2019)
As not all goals were achieved, we will formulate and implement new measures.
FY 2019 goals

FY 2019
achievements

Vehicle accident
frequency rate

0.33 or lower

0.57

Occupational
accident
frequency rate

1.36 or lower

1.56<Priority measures>● Reduce vehicle accidents and occupational accidents involving
young employees● Develop and strengthen the management system to accommodate
the aging of employees● Create an environment where safety can be substantially improved
and introduce leading-edge technology based on the verification of
results● Strengthen the links between safety management systems andprevent accidents and disasters

Medium-Term Safety Goals (FY 2018—FY 2022)
Based on our Five-Year Medium-Term Management Plan SIP21, we will promote Group-wide safety initiatives,
including using the latest driver assistance technology and other measures.
● Vehicle accident frequency rate (on-road accidents)

vehicle accidents,
occupational accidents
We aim to reduce by half
vehicle and occupational
accidents from the
FY 2017 level.

FY2019 Achievements

0.64/0.33(Logistics group)(Senko Co., Ltd.)FY2022 target

0.25

or lower(Senko Co., Ltd. and Logistics Group)● Occupational accident frequency rate
(occupational accidents with at least four lost workdays)
FY2019 Achievements

1.41/0.82(Logistics group)(Senko Co., Ltd.)FY2022 target

0.95

or lower(Senko Co., Ltd. and Logistics Group)* Figures for the Logistics Group do not include recently acquired companies.

CSR VOICE
Ensuring a better safety management
system to prevent accidents andoccupational hazards before they occur

Takami Ito

Senko Co., Ltd.
Safety, Quality & Environment
Management Department
Health and Safety Group Manager

As series labor shortage plague the entire logistics industry, the Senko Group is committed
to adhering to compliance in order to provide a safe, secure high-quality service. We haveworked on developing various safety related management systems and a framework forlinking those systems together, as a way of preventing accidents and occupational hazards
as well as incidents involving quality.
We completed this framework in FY2017, and have started rolling out and utilizing this as asafety management improvement tool at each branch and group company.
With efforts underway to bring work style reform, we are focusing on introducing advanced
technology revising operating methods with cross-docking and other means oftransportation, and improving working times by deploying system-based IT roll calls, all aspart of efforts of becoming a workplace and company that people are delighted to work at.

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Safety Initiatives

Workplace safety initiatives"Senko Group Craftsmanship Competition 2018"
The Craftsmanship Competition was canceled in FY2018 due to the impact of typhoons, however this year saw 45 groupcompanies including overseas subsidiaries participating in the event held on September 15 and 16. Drivers, operators andoffice (telephone) staff who passed the qualifying rounds tested their skills and knowledge at Crefeel Koto.

Reverse parallel parking challenge

Forklift operating challenge

113 participants including 8 staff from overseas
Tested their superior "Senko-style" skills
District Training and Initiatives to Enhance Safety
We hold nationwide "District training" with the aim of preventing and eliminating situations that have high rates ofaccidents. In FY2019, we ran on-site practical training to enhance safety skills in the following areas.

Driver-related

Operator-related

Eliminating accidents when reversing

Eliminating accidents involving forklifts and people

Area district training session (truck)

Area district training session (reach forklift)

Trainers with the relevant skills hold practical skills
training to suit the conditions at each specific site
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Operation of Safety Management Systems
The Senko Group operates integrated safety management systems. Using management that associates vehicle driving
information with driver, training and skills information ensures the following benefits.

(1) Real-time updates of information and greater accuracy of legally required information(2) Allows supervisors to understand information more efficiently(3) Provides appropriate management of personal information by clarifying browsing
access rights[Safety system overview]
Human resources
information system

Vehicle WEB system
Name master screen

Employee basic information(name, date of birth, etc.)

Work log,
certification information
Accident rapid
reporting system
Vehicle accident history
Driverregister data

Driver healthmanagement system
Health diagnosis
inspection conditions
Education
management system

Driver register screen

Aptitude assessment
Driver register (form)

Special training history

Acquiring "Safety Excellence Workplace" certification"Safety Excellence Workplace" certification issued
by the Japan Trucking Association is a system thatrecognizes individual workplaces with a high levelof traffic safety.
The Senko Group is aiming to have all businesssites certified as part of efforts of our safety
initiatives.

[No. of G-Mark certification]

G-Mark issued by
the Japan Trucking
Association

(No.)
200

156

150

115

116

159

122

100

In FY2019,50
098% of all Senko

Group workplaces have acquired certification
2014

2015

2016

2017

2018

(FY)

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HealthInitiatives

Digest[Initiatives in FY2019]

Recognized for the second consecutive year as"Certified Health and Productivity Management
Outstanding Organization (White 500)"
The Senko Group has been running "health management" for many years as a key
management issue for promoting and improving the health of employees. We continue
to run health promotion activities such as providing comprehensive healthmanagement and the "Healthy Activities" program.
For the second consecutive year, we were recognized for these initiatives on February
21, 2019 with the Certified Health & Productivity Management Outstanding Organizations
Recognition Program 2019 (also called White 500) jointly run by the Ministry of Economy,
Trade and Industry and the Nippon Kenko Kaigi that honor outstanding enterprises
engaging in efforts to advance health and productivity management.

Aiming to be a company with a healthy and lively work style■ Main initiatives for health management
Improving health through Healthy Activities
The Healthy Activities program began in 2007 to encourage every
employee to set their own goals and make exercise a habit in their
daily life, to promote general good health.
Each worksite also plans and holds their own sports events as away of promoting the health of employees.
Tohoku Senko Transport Co., Ltd. ● Softball tournament

Nurses helping to improve health
We have assigned 20 nurses (occupational health and general
nurses, as of April 2019) to our main business sites in nine areas
nationwide. They provide expert health guidance and mental andphysical support based on the results of periodic employee healthcheckups and consultations.

Nurses in the Kansai area

[Senko Group Health Management Declaration]
The Senko Group hereby declares the following regarding the health of employees:◎ Continuing to be “A corporate Group which nurtures people and supports their daily lives.”◎ Ensuring that every Group employee can work in a healthy and lively manner.
◎ Placing the utmost importance on making sure employees can live healthy and happy lives.
In line with these goals, the Senko Group is implementing initiatives for promoting the health of employees,
in order to become a truly affluent global company as a “Corporate Group Creating Future Trends.”
Yasuhisa Fukuda

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2 0 1 9President and Representative Director

Senko Group Holdings Co., Ltd.

Senko Group "Health Initiatives" at a Glance!

Health management initiatives at group companies
Toyohashi Senko Transport Co., Ltd. and Harcob Co., Ltd. are two new companies certified in the SME Category of"Excellent Organization of Health & Productivity Management 2019." We also hope to continue supporting and expanding
health promotion initiatives for employees at our group companies.

■ Company "Health management" initiatives
Companies certified in the SME Category of"Excellent Organization of Health & Productivity Management 2019"
Toyohashi Senko Transport Co., Ltd.

Harcob Co., Ltd.

● Recreational activities, anything we can do now● Supporting health by issuing "Healthy News"We organized "Anything we can do now" to improve thehealth of all employees. In addition to following up withhealth checkups, we provide health-conscious recipes andhold recreational activities to encourage employees to be
more aware of their own bodies.

We all did the "Health Management Declaration," decided
on a supervisor and started our activities. We are focusing
on improving the health of body and mind with initiatives
such as identifying problems, recommending healthcheckups, holding consultations, planning events at each
worksite and distributing regular issues of "Healthy News."

Senko Business Support Co., Ltd.
● Soft volleyball tournament

Senko Fashion Logistics Co., Ltd.
● Yoga and BBQ

Senko Information System Co., Ltd.
● Former JR Fukuchiyama Line walking trail

CSR VOICE"Safety" and "Health" are the two mostimportant initiatives for our company

Koichi Furuya

Senko Group Holdings Co., Ltd.
Management Department
Health Management Division Manager

We consider employees who are healthy as bringing happiness to themselves as well as theirfamily throughout the lives. A healthy body and mind also provides the motivation for working ina healthy and lively manner, and naturally leads to greater satisfaction for customers when it
comes to work duties. To ensure that everyone remains healthy, we think it is important thateach and every employee is aware of their health and gets into healthy habits. We have a motto:"start one thing good for your body, and stop one thing bad for your body." Our team of 20
nurses and employees involved in promoting health are focused on creating the right foundation
so that all employees can maintain and improve the health of their body and mind, so that they
are more healthy and lively.

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Social
Initiatives

Digest[Initiatives in FY2019]

Diversity
Enhancing training systems to create a worksite suited
to anyone, where everyone can perform at their best
Driven by the motto "Moving Global," the Senko Group is harnessing its human resources free from the constrains ofrace, gender, religion or other beliefs, as we work to ensure that "diversity" is our strongest asset.
These efforts include initiatives like creating training systems for local staff in Thailand, and inviting technical interns from
Vietnam. More than simply providing skills guidance to these interns, we are also providing training for host worksites sothat people from both countries work seamlessly beyond their individual cultures or values. In this way we are providing acomprehensive education and training system so that overseas group companies are able to provide the same level of
Senko quality as in Japan.

1
2[Basic Approach]
We make sure all employees are able to play more
active roles through mutual respect for diverse
values, including nationality, culture or handicap,
rather than gender alone.
We make it possible to choose a work style that
accommodates where employees might findthemselves from time to time, as well as changing
values.

Intern training at Noda Senko Logi Service Co., Ltd.

Revising training systems at worksites in Japanand abroad to suit the hiring of more nonJapanese nationals and technical interns.
Creating a workplace that suits anyone,
by respecting each other's cultures and accepting theirdifferences, and improving mutual understanding.

Female staff of the local training team (in charge of safety)
providing guidance to staff in Thailand

CSR VOICE
Continuing to contribute withactivities for a more affluent society

Makoto Yamazaki

Senko Co., Ltd.
Executive Officer
Administrative Manager

At the Senko Group, we are involved in a diverse range of social contribution activities while
coordinating with local communities with the aim of creating a sustainable society.
We are aiming to contribute to local communities through activities common to the entire
group such as traffic safety classes for children and local cleanup activities. We are also playing
an active role with volunteer activities like promoting sports and culture such as judo, golf andGo, hiring persons with disabilities, making females feel more assured at worksites by providing
daycare centers, and providing overseas training.
I personally believe that such activities play a great role for creating a sustainable society andbolstering growth of our group.

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2 0 1 9Senko Group "Social Initiatives" at a Glance!

Promoting Community and Social Contribution
Recognizing social contribution within the groupand rewarding outstanding achievements
The Senko Group established the "Social Contribution Activities Commendation" program in FY2016 to provide rewards
for outstanding initiatives. The "Social Contribution Promotion Committee" examines social contribution activities
submitted by group companies, with Crefeel Koto receiving the grand prize in FY2017 for its innovative approach andlong-term consistency.

Crefeel Koto, Traffic Safety Class for Children, Organizing Committee

最優秀賞"In recognition of its innovative approachand long-term consistency"

Awarded the grand prize for initiatives such as the holding the Traffic Safety Class for Children, contributing to the local
community with the Children's Traffic Park, and organizing workplace tours.

Company representatives receiving the grand prize and outstanding performance
award (May 2018 Awards Ceremony)

Traffic safety class for children

Supporting community and cultural activities
by increasing the popularity of Go
We have held the "Go Festival" at the
Senko Group's training facility "Crefeel
Koto" in Higashiomi City, Shiga
Prefecture since 2016, and sponsoredthe "Senko Cup Female Saikyo Title"
women's Go tournament since 2016. We
were also special sponsors of the"SENKO CUP World Go Women'sChampionship 2019" held in February
2019.
Participants of the SENKO CUP World Go Women's Championship 2019 (front row)

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Social Initiatives

With our employees, with the regional community

Creating the new special leave system, "Volunteer Leave"
Our vision is for employees to expand their horizons through social contribution activities, to lead to greater personal
growth. To achieve this, we created the new special leave system "Volunteer Leave." By ensuring that the company
provides a comprehensive system, we are encouraging employees to take part in social contribution activities as a way ofassisting their self-improvement or enhancing their work-life balance.
This system is available to all Senko Co., Ltd. employees. A broad range of social contribution activities are currently
being held, and we hope that even more employees participate in the future.

Grant method

1. Granted consecutively or non-consecutively
2. Requires prior approval of supervising manager(if certificate is issued)

No restrictions to applicable activities

Receive certificate
and submit tosupervising manager

Applicable activities

Take part involunteer activity

All employees

Approval

Applicable to

Submit application form
to supervising manager

5 days annually

Decide on activity
to participate in

No. days granted[Steps for acquiring leave][Details of the Volunteer Leave system]

Promoting hiring of persons with disabilities
The Senko Group is aiming to be viewed as atrustworthy company by contributing to the lifestyle ofeveryone in society, not just customers and employees.
To achieve this, we opened Senko School Farm
TOTTORI Co., Ltd. (special subsidiary company) and arecommitted to hiring persons with disabilities. We are
implementing efforts to maintain a rate of employment
higher than required by law, and focusing our efforts sothat persons with disabilities can work in a healthy andlively manner at every workplace.

[Change in employment rate of persons withdisabilities (data from June of every year)]
(%)
4.0
3.0

3.01

3.03

2.2
2.0
1.8
1.0

3.14

2.74

2.64

2.65

2017

2018

Legally mandated
employment rate
2013

2014

2015

2016

(year)

Social initiatives at worksites and group companies
Minami-Osaka Senko Transport Co., Ltd.

Senko Group Holdings Co., Ltd.

A joint activity with Sakai City's "Elderly Watching Network" where drivers
call for emergency aid if they notice unusual health conditions when
making home deliveries to elderly people

Providing assistance with tours of Japanese logistics facilities for students
and teachers learning about logistics in China. Contributes to growth of work
skills research in China for training personnel in charge of tomorrow's logistics

Home Delivery Division, Sakai Sales Branch

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2 0 1 9China OfficeWorking with Local Communities
Traffic safety classes around Japan
We have had countless participants in our ongoing"Traffic Safety Class for Children" held at Crefeel Koto,and have run the "School visit workshop" at worksites
and elementary and junior high schools continuously
since FY2014.
We are also developing programs to learn about theimportance of traffic safety while having fun. School visit
workshops teach children how to cross roads safely andgive them the opportunity to ride in a truck and see whatblind spots actually look like from the driver's
perspective. These programs are entertaining for bothchildren and their parents alike.

Heldattracting

Contributing to the community daycare
centers

The Senko Group currently operates daycare centers at
six locations.
These facilities are also available for children other thanthose of employees, and are popular amongst thecommunity.
Senko Nakesha Kindergarten(Senko Co., Ltd. Kazo PD
Center)at 20 worksites,

1,701 participants

Watching overchildren’s' dreams,
aspirations and futures

Actively participating in cleanup days
and blood donation drives

Traffic Safety Class for Children held by Senko Co., Ltd. Mie Branch and
Mie Senko Logi.

We hold cleanup days as part of community
contribution activities as a show of gratitude to the roads
we use on a daily basis. A total of 18,859 employees took
part in FY2019, significantly exceeding the number of theprevious year. Many business sites canceled blood
donation drives that were planned for this year due to thelarge number of disasters, however 972 people took partand donated their blood.
Cleanup day in the Osaka
headquarters community

Minami Kyushu Senko
Co., Ltd.
Riding in a truck

Senko Co., Ltd.
Ibaraki Branch
Using crosswalks

Blood donation drive jointly
held by four companies:
Senko Fashion Logistics,
Tokyo Nohin Daiko , AcrossTransport and Senko A Line
Amano

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Corporate
GovernanceCorporate Governance Approach and System
As a logistics company involved in highly public work, the Senko Group believes that all corporate activities should
thoroughly comply with laws as a way of fulfilling its corporate social responsibility and earning trust from society. To
achieve this, more efforts are being made to hone the system that places corporate governance as one of the highest
priority for management.

General Meeting of Shareholders

Accounting Auditors

Appointment / Dismissal
ReportAccounting
Audit

Appointment / Dismissal
Audit

Board ofCorporate Auditors

Audit

Auditing Dept.
Audit

ReportReportLegal Counsel

Subsidiaries directlysupervised byholding company

Core companies

Executive Officers

Appointment /Supervision

President andRepresentative Director

Operating companies
AdviceReportBoard of Directors

Dialogue

Assist /ReportReportAppointment / Dismissal

Internal Controls
Committee
CSR Promotion
Committee

Report(Directors, Corporate Auditors,
Committee Chairmen, etc.)

InstructSupervise

ReportReportCompliance Committee
Corporate Ethics Committee
Report Risk Management Committee
Environmental Promotion Committee
Social Contribution
Promotion
Committee
ReportRuntec Co., Ltd.
Companies in Living
SENKO SHOJI Co., LTD. SENKO
Support, and
AST CORPORATION
Co., Ltd.
Business Support
SMILE CORP.
Report

Health and Safety Committee
Corporate Management Committee

Compliance with the Corporate Governance CodeThe Financial Services Agency and the Tokyo Stock Exchange, Inc. released the "Japan's Corporate Governance Code"that entered into force in June 2015, incorporating the fundamental principles for corporate governance. We havedisclosed all the elements of the Corporate Governance Code on the Company’s website to clarify our position on working
to enhance corporate governance based on this code.

See the website below for details.
● Report on Corporate Governance● Initiatives for the Corporate Governance Code principles

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

Compliance-Based Management
Compliance-based management, which complies with laws and regulations and engages in ethical business activities, isthe 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 prescribes all items that executives and employees must observe for every aspectof their jobs.

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Enhancing the Risk Management System
We have developed a system for responding to possible risks associated with business, with preparations in case of
emergency situations prioritizing human life, reducing physical damage, restoring business operations quickly, maintaining
the trust of society, and contributing to the local community.

Establishing Business Continuity Plans(BCPs)
Every Group location has established a business
continuity plan (BCP) in order to swiftly recover logistics
in the event of a disaster. In an emergency, support andrecovery activities will be carried out promptly under the
direction of the head office and the manager of thedepartment taking countermeasures on the ground using
the BCP.
When data centers are affected by a disaster, a backup
data center will restore systems within 30 minutes, even
if the server shuts down to ensure that logistics systems
can be maintained.

Backup data center

Public line

Customer
Send,
receive andprocess data
duringordinary
operation

Emergency
Switchover

Each business site
Internal
network

Osaka Center

Each business site

(Osaka Prefecture)

Backup Center(Miyazaki Prefecture)
Backup Center
SystemHost system
Backs updata during

Each business siteordinary
operation

Tsunami Evacuation Training
Branches along the Tokai coast held several tsunami
evacuation training days in preparation of an expected
Nankai trough megathrust earthquake. Training willcontinue being organized to ensure quick evacuations in
the event of a disaster.

Tsunami evacuation training being held

Development of safety confirmation
system and report training
We have developed our own system so if disasterstrikes, employees can use their smartphones or otherdevices to report on their own safety, to allow us toquickly check how the disaster may have affected
employees. We also hold mock training for all group
employees twice a year to ensure that they can all quickly
report on their status in the event of an actual disaster.

Email report
Check condition(check remotely)

Cell phone

Online report
Smartphone
Home computer

Safetyconfirmation
systemSmartphone
Home computer
Cell phone, etc.

Administration
Department
Branch manager,
etc.

Business sites
Safety confirmation
supervisor

Safety confirmation overview

Delivery of emergency supplies
Emergency supplies (including food, water, blankets and gas cartridges) are distributed to five business sites around
Japan, and we use our own delivery network so that these supplies can be transported to any affected regions within a dayof a disaster striking. Food supplies that are close to expiring are donated to livelihood support organizations as part ofsocial welfare activities.
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Corporate
Data
Corporate Data

Current as of March 31, 2018 (Group Total)

Senko Group Holdings Co., Ltd.

Trade Name

Consolidated operating revenue(100 million yen)

(SENKO Group Holdings Co., Ltd.)

6,000

Capital26,528 million yen

Established

September 1916

Incorporated

July 1946

4,000

Head Office

Shiomi SIF Bldg., 2-8-10 Shiomi, Koto-ku, Tokyo
135-0052

3,000

Representative

Yasuhisa Fukuda, President and Representative
Director

2,000

usiness Sites

541 in Japan; 57 overseas

5,000

3,984

4,340

4,554

4,921

5,296

1,000

Group Employees 17,081
Vehicles

6,412 (including trailers)

Vessels

68

Total Warehouse
Space

0

2014

2016

2017

2018

(FY)

3,66 million m2

Consolidated ordinary profit

Consolidated net income(100 million yen)(100 million yen)

199

200

172

173

117

120

173
100

150

2015

132

80

100

85

90

95

71

60
40

50
20
0

2014

2015

2016

2017

2018

(FY)

Total logistics center floor area

2014

2015

2016

2017

(FY)

(Vehicles)

400

7,000

366
350

322
281

2018

Vehicles (including trailers)(10,000 m3)

300

0

5,914

6,000

342

5,000

294

4,530

4,745

6,412

5,180

4,000
3,000

250

2,000
200

0

33

1,000
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2015

2016

2017

2018

(FY)

0

2014

2015

2016

2017

2018

(FY)

Business sites in Japan (572 sites)

Current as of Sunday, March 31, 2019

Main logistics centers that began operations during FY2019

Hokkaido

7 sites

Senko Co., Ltd.
Kazo PD Center

Senko Co., Ltd.
Koga PD Center

Senko Co., Ltd.
Higashi-Fuji PD Center

Tohoku23 sites

Kinki

171 sites

Chushikoku

74 sites

Kanto

154 sites■

Kyushu77 sites

Chubu

66 sites■ Senko Group Holdings Co., Ltd. Headquarters (Tokyo)

Business sites overseas (59 sites)

Current as of Sunday, March 31, 2019

Main logistics centers that began operations during FY2019

Qingpu Logistics Center (Shanghai)

Beijing Logistics Center (Beijing)

North America

Kazakhstan

ChicagoWinchester
Los Angeles
Atlanta■ Local subsidiaries andoverseas business sites

AlmatyGermany
Düsseldorf
■

■
■
■

MexicoSilao
San Luis Potosí
Mexico City
Querétaro
Guadalajara

China

■

■
■■■
■

Shenyang
Beijing■■■

DalianVietnam

■
■
■

■

■

Qingdao■

Zhangjiagang

■

■
■■
■

SuzhouGuangzhou
Hong Kong■

Singapore

Nantong■Changshu

Shanghai

Seoul
Busan

Hanoi
Ho Chi Minh

■

■

Korea

■
■

■

■

Myanmar
YangonIndonesia
JakartaThailand

BangkokLaem Chabang

Australia
Ingleburn

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Senko Group Holdings Co., Ltd.
Contact

Public Relations OfficeTower West 14F, Umeda Sky Bldg.
1-1-30 Oyodonaka, Kita-ku, Osaka 531-6114
Tel:06-6440-5156 Fax:06-6440-5148
URL:http://www.senkogrouphd.co.jp/en

Easier to read and understandwith the use of universal design font.

Published June 2019