CSR REPORT

2 02 0

Environmental Measures; Safety Initiatives; Health Initiatives; Social Initiatives

SENKO Group—nurturing people and supporting their daily lives

Feature 1
Green logistics
developedwith customer
cooperation

Feature 2
Operating close to people and lifestyles,
to meet the needs of modern society

Feature 3
Designing a better future for
local communities through agricultureMoving
Message from the President

SENKO Group—nurturing people

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)," withinitiatives being put in place for the environment, safety,
health and society. Since FY2019, we have been better
outlining the relationship between the SENKO Group'sbusiness activities and the UN's "Sustainable Development
Goals (SDGs)," and presenting our vision within andoutside the Group.
As part of FY2019 initiatives, our efforts for further
advancing modal shift for our "Environmental measures"
led to SENKO receiving two "Special Awards" in the 20th
Logistics Environment Awards, and four awards as"Excellent Business Entities Working on Modal Shift" fromthe Japan Association for Logistics and Transport. We willcontinue our efforts towards reducing our environmental

Contents
Message from the President
Business overview
Medium-term management plan and CSR policy
Relationship between business activities and SDGs
Features
SENKO Group—nurturing people andsupporting their daily lives① Green logistics developed with customer
cooperation② Operating close to people and lifestyles,
to meet the needs of modern society③ Designing a better future for local communities
through agriculture

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Global

Go Beyond Logistics
Make the WorldGo Round Revolutionize
Businessand supporting their daily lives
impact, as well as implementing environmental
conservation activities including the new initiatives wehave started for biodiversity conservation.
For our "Safety initiatives," we have introduced eye
tracking systems and other advanced technologies toenhance our safety management systems. Continuing toensure that our workplaces are safe for our employees towork in is in line with our goal of becoming a corporategroup that attracts people.
Our "Health initiatives" have us being selected as a"2020 Certified Health and Productivity Management
Outstanding Organization for the third consecutive year.
And following on from last year, two of our Group
companies were certified in the SME Category. Moving
forward, we will continue focusing on initiatives aimed atpromoting health so that employees can work in a healthy
and lively manner.
For our "Social activities," we have rolled out a range of
constructive activities like promoting sports and culture

Environmental measures
Environmental measures digest
Environmental Report

Safety Report

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Health initiatives
Health initiatives digest
Social activities
Social activities digest
Social Report

Corporate GovernanceCorporate data

Senko Group Holdings Co., Ltd.
President and Representative Director
CSR Promotion Committee Chairman:

Yasuhisa Fukuda■ Editing policy and scope of reporting

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Safety initiatives
Safety initiatives digest

through judo, golf, Go and much more. We are also
continuing to operate our daycare centers and run blood
donation drives, as well as developing closer links to local
communities through a range of interactive ideas liketraffic safety classes for children, workplace tours andagricultural visits.
As a corporate group that nurtures people and supports
them in their daily lives, the SENKO Group as a whole willcontinue to promote CSR management to gain the trust of
all our stakeholders, and also strengthen our long-term
initiatives of meeting SDGs through our businesses.

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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 Group during thereporting period are presented as "Features."(2) The scope of the report covers activities of the SENKO Group.
(3) Reports cover activities conducted from April 2019 throughMarch 2020, with some covering activities conducted after
April 2020.
(4) Environmental reports are made in accordance with the"Environmental Report Guidelines (2018)" issued by theJapanese Ministry of the Environment.

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Senko Group business domains

4 core business domains of SENKOGroup

As a corporate group which nurtures people and supports them in their daily lives, the SENKO Groupis always determined to create new trends in services and products.

* Number of group companies current as of end of March 2020

Logistics 96 groupcompaniesGroup

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.

■ Salescomposition

Retail productlogistics

Total

570.0

billion yen
131 groupcompanies

Other logistics

68.9%

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

Housing logistics

Operating revenue 392.7 billion yen

Retail product logistics
Sales composition

39.1%

Operatingrevenue

Mass merchandisers, retailers,

222.6 billion yen food, fashion, etc.

Housing logistics

11.1%
Sales composition

Operatingrevenue

63.2 billion yen

Homebuilder products,
associated materials, etc.

Chemicals logistics
Sales composition

13.4%

Operatingrevenue

76.6

billion yen

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

Other logistics
Sales composition

5.3%

Operatingrevenue3

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billion yen

Logistics other than distribution,
residential and chemicals

Trading & Commerce
Business Group 13 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

570.0

billion yen
131 groupcompanies

28.3%

Operating revenue 161.3 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 contact 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

570.0

billion yen
131 groupcompanies

2.8%

Operating revenue 16.0 billion yen

Living Support

companies
10 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
agriculture 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”The SENKO Group launched the five-year medium-termbusiness plan "SIP21" in April 2017.
One of those policies was "Emphasize corporate social
responsibility (CSR)."

Group Strategy Direction

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

Consolidate the Group’s overall strength, deliver"services that surprise and delight," and evolve from"customer satisfaction" (CS) to "customer delight" (CD).

3

Unite as a group to drive
economic and social innovationin and out of Japan.
Group Medium-Term Business Targets
FY2021 Goal

● Operating revenue● Operating income

700.0 billion yen
28.0 billion yen● Ratio of operating profit● Return on equity (ROE)● Equity ratio
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4.0%
10.5%
40.2%

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 activities① 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 activities① 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
Environmental Promotion Committee

Operatingcompanies

Social Contribution Promotion Committee

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Senko Group

Relationship between business activities and SDGs

Nurturing people and supporting them intheir daily lives
SENKO Group business activities and SDGs
Business Support

Trading & Commerce
Priority
themes of
SENKOGroup's
SDGs

Logistics consulting / IT solutions / Contact center /Staffing services / Hotels / Real estate, etc.

Commerce / Oil sales / Sales of daily
commodities, foodstuff, alcohol, etc.

Economic level
Providing new value to society through our businesses
Businesses that nurture people
and support their daily lives

Promoting green logistics by cooperating with customers

Providing services that arehighly resilient to natural
disasters

Harnessing business activities with the aim ofresolving social challenges through initiatives
linked to CSR policies, as well as contributing
to greater barrier-free accessibility in society.

Developing the Living
Support business thatcovers nursing and healthservices and more

SENKO School Farm TottoriCo., Ltd. that aims to achievecommunity development
through agriculture

Global environment sustainability
Spent tires

New rubber

Retreadedtires

Tire casing

Solar power generation andenergy-efficient facilities
installed at PD centers

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2 0 2 0Lower energy and lower carbon use of transportation
infrastructure (use of CNG vehicles, electric trucks)

Using retreaded tires

Cooperation with the
Osaka Bay Environment
Restoration Project

The SENKO Group aims to resolve social challenges
and create new value through its businesses, basedon the core approach that "economic activities" canbe achieved with a "healthy global environment" anda "good relationship with local communities."

Living Support
Nursing & housework services / Fitness /Moving services / Restaurants / Agriculture, etc.

Crefeel Koto
Traffic safety / Human resources
training / Children's Traffic Park, etc.

Priority
themes of
SENKOGroup's
SDGs

Logistics

Transportation / Storage /Logistics processing /In-factory operations /International logistics, etc.

Society level

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

CSR

Safety Programs
Health Initiatives
Social Activities

Human resources andorganization as the foundation

Promote healthmanagement throughout
the entire group

CSR

Environmental
Initiatives

SENKO University fornurturing people andbusiness

Cooperation with society

Traffic safety class forchildren at business
sites

Logistics safety educationand professional driver
training at Crefeel Koto

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

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Feature 1

SENKO Group—nurturing people and supporting their daily lives

Green logistics

developed with customer cooperation
Relationshipwith SDGs

We are utilizing electric trucks free of CO₂ emissions as part ofmeasures to reduce CO₂ emissions generated with truck
transportation. We are also working with customers to promote
green logistics, such as switching to electric trucks fordeliveries thanks to the cooperation of customers.

Tokyo Nohin Daiko's electric trucks inthe fashion streets of Tokyo

Tokyo Nohin Daiko Co., Ltd.
President and Representative
Director

Hiroyuki Ito

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2 0 2 0European luxury brand group LVMH Moet Hennessy Louis
Vuitton Japan KK ("Louis Vuitton") is placing a great emphasis on
addressing environmental issues, and asked us to "provide anenvironmentally friendly logistics service" from early on. In
response to this, we were one of the first in the industry to begin
using zero-CO₂ emission electric trucks (light freight vehicles) in2014. With the resulting effects so positive, we added two of theworld's first production model electric truck "e-Canter" to our fleet
in 2019. From July that year, we began operating electric trucks in
the Ginza and Omotesando districts of Tokyo specifically for
Louis Vuitton.

Japan's first hanger-rack body typeelectric truck
The main feature of our e-Canters is that they are of ahanger-rack body type, the first of its type for an electric truck inJapan. The body type is ideally suited to apparel-related logistics,
as garments can be loaded as-is on hangers to prevent wrinkles
caused by packing them in boxes. Another initiative led by the
SENKO Group is the inclusion of lifesaving devices on board, withthe latest AED mounted behind the passenger seat.
Electric trucks have a range of around 100 km from a single
charge, which takes seven to eight hours using a 200 V charger.
With the addition of these trucks, we have installed chargers at ouroperating sites and also went to considerable effort to plan
efficient delivery routes with charging locations along the way incase trucks need to recharge during deliveries.

Reduce environmental impact and helping
to boost corporate value for customers

②
③
①

④

⑤

⑥

① Deliveries to stores in Omotesando, home to many elegant
brand outlets② Design on a special electric truck highlighting the partnershipwith Louis Vuitton③ Electric truck in the delivery entrance at the side of the store④ Garments loaded into trucks as-is on hangers⑤ Garments on hanger rails move automatically to the delivery
entrance⑥ 200 V charger installed at the Higashi Nihon SCM Terminal
logistics site

In Europe, where Louis Vuitton's headquarters is based, there isa high level of demand for environmentally friendly operations, andthe response that companies take affects brands significantly.
Working with customers to develop environmentally friendly
logistics on a global scale like this not only helped to reduce theamount of CO₂ emissions, but also helped to boost the customer's
corporate value and strengthen our relationship of trust with them.
We are planning to roll out collaborative deliveries with thecustomer's group of brands, and ultimately achieve emission-freedelivers for the fashion sector with more efficient transportation.
We are also hoping to make the switch to using electric trucks fordeliveries of other shippers.
We have also embarked on new partnerships aimed ataddressing other social challenges with customers. One we are
involved in is the "BRING Project," an initiative where various
companies work together to collect and recycle used clothing.
Staff uniforms that customers no longer use are collected in bulk
via our delivery network and transported to recycling plants, aspart of our goals to make recycling clothing more efficient andreduce the impact on the environment. As a logistics company
using public roads for business operations, we will continue
working with shippers to develop "Green Logistics" and help
achieve these SDGs.
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2 0 2 010Feature 2

SENKO Group—nurturing people and supporting their daily lives

Operating close to people and lifestyles,

to meet the needs ofmodern society
Relationshipwith SDGs

We have branched out into the Living Support Business as ourchallenge for paving the way for the next 100 years. Operating
sports clubs and providing nursing and welfare brings us closer
to the health and lifestyles of locals, helping us to support local
communities for living in with peace of mind.

Branching out into the Living Support
Business that supports people in their
daily lives

SENKO Group Holdings Co., Ltd.
Director and Managing Executive Officer
General Manager of Living Support Business
Promotion HQ

Kenichi Shiraki
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2 0 2 0As a "corporate group that supports people in their daily lives,"
we have branched out into the Living Support Business with theaim of creating a new business segment that brings us closer toconsumers. We have welcomed to our group local-community
based companies with exceptional motivation and growthprospectives to drive business that contributes to the health,
lifestyle, dietary and other aspects of so many people. Our futuregoals will be to harness the synergy created with each Living
Support Business company to help open more new stores andcreate new services provided by each company and expand
business. With the prospect of facing a super-aging society, we
are aiming to resolve social challenges like longer healthy
lifespans and more extensive nursing and welfare services by
operating business that are closer to peoples' health andlifestyles, as a way of contributing to society.

Providing comfortable homes
and affluent lifestyles for seniors
Visiting care & nursing homes

Nursing homes for enjoying a safe andcomfortable lifestyle
KEIHANNA helper station Co., Ltd. has been providing
visiting care, visiting nursing, day-care and other services
mainly in the northwestern areas of Nara Prefecture. In
addition to providing lifestyle support services, it is also
committed to the operation and management of nursing
homes with the aim of supporting the lifestyles of the elderly
at "homes." The know-how it has developed by providing
more than 20 years of nursing care services is the company's
forte. Highly skilled staff with a mind for hospitality are on
hand to provide a variety of nursing care services and respondto a range of needs to ensure a safe and comfortable lifestyle.
Building on its strengths as part of the SENKO Group,
KEIHANNA helper station is also currently increasing thenumber of nursing homes it operates. In addition to its three
existing facilities, a new nursing home was opened in April
2020 in Shiga Prefecture based on a partnership between
SENKO and homebuilders. In June 2020, it opened a newserviced apartment for the elderly in Ikoma City in Nara
Prefecture. The residence includes a multi-purpose room
coupled with a comprehensive range of activities for an
exciting and meaningful lifestyle, which are available to bothresidents and members of the local community alike. The
community-based facility cherishes the bond between
residents and society, and will ideally play a key forproviding the elderly with an affluent livelihood.

Securing and training nursing care staff
for enhancing the welfare of the elderlyin the local community
As the aged population continues to grow, the nursing andwelfare sector has long suffered from a lack of staff capableof providing services. KEIHANNA helper station operates anursing staff training and development business to enhance
the skills and certifications of its own nursing care staff, andis also focused on increasing the number of nursing carestaff and lifting the level of services provided industry-wide.
It was based on this same line of thinking that it decided toopen daycare centers within its business sites. Making these
services available for the wider community helps people tosecure both employment and child-raising needs, and also
leads to an increase in nursing care staff.
Future plans include more facilities that meet the diverse
requirements of the elderly, and increasing the scope ofservices by providing greater coverage across the southernareas of Nara Prefecture and the whole Kansai region. As acomprehensive nursing care service provider, KEIHANNA
helper station remains committed to enhancing the level of
welfare for the elderly in local communities.

KEIHANNA helper station Co., Ltd.
[Company overview]
Established in 1999, and provides in-home care
support that includes visiting care, visiting nursing,day-care services, and management, as well as
businesses such as the operation of private nursing
homes. In response to demand from society, it isexpanding business to include taxi operations,
welfare services for people with disabilities, training
for nursing care staff, and sales and rentals of welfare
equipment.

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Supporting independence of theelderly with exercise and rehabilitation
Day-care & visiting nursing services

Day-care, visiting nursing and rehabilitation
services with a focus on exercise for a more
independent lifestyle
Venus Co. Ltd. provides day-care and visiting
nursing/visiting rehabilitation services with a focus on"exercise." Its aim is to help people "achieve independence"
so they can do what they want by themselves—even if
require assistance or primary nursing care—by preventing
their physical and mental condition from worsening throughthe use of exercise or rehabilitation.
The key advantage of Venus is that it has developed asystem that offers different stages of services to suit thephysical condition of users. Step-up programs and facilities
available toward achieving independence include: [Venus
Visiting Care Station] for people who require nursing care or
rehabilitation at home after receiving treatment at hospital;[One-day Rehabilitation & Bath Day-care] Venus Care
Center or [Half-day Rehabilitation & Bath Day-care] Venus
Plus for people who are able to go out for rehabilitation,
bathing or dining after their conditions have improved; andincreasing stamina with [Venus Club] for those who havegained further physical strength.

New services for achieving independencewith enjoyable leg and brain training
programs and "dining"
Of the four services outlined above, [Venus Club] is a
day-care service that is specifically focused on exercise. A
range of unique programs have been developed by
combining exercise with cognitive tasks, including
Cognicise for maintaining and enhancing cognitive abilities,
and Mouthacise for maintaining and enhancing chewing andswallowing functions. Users take part in muscle training or
gymnastics using aerobics machines under the supervisionof staff qualified with national certifications, to build up
physical and mental endurance in an enjoyable manner toachieve an independent lifestyle.
A new food delivery service was rolled out to assist elderly
customers achieve independence with "dining" in addition
to exercise. Furthermore, "Venus Club" began a new service
called "Tan-katsu" in February 2020 that aims to increase
protein intake together with exercise, as another way of
increasing physical stamina effectively. The service
encourages users to increase their intake of jelly-typedietary supplements that can replenish their proteins.
Providing assistance to the elderly to build up physicalstrength from a nutritional perspective is another way Venus
is helping to extend the "healthy lifespans" of people.

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2 0 2 0Venus Co. Ltd.
[Company overview]After being founded in 2004, Venus began operating
facilities and services mainly focused on exercise andrehabilitation to help users "achieve independence."
In addition to "Venus Club," "Venus Plus," "Venus
Care Center" and "Venus Visiting Care Station," italso operates "Venus Kids" that promotes
after-school exercise and learning for children. It
operates the most facilities within Osaka Prefectureand supports many people in improving their health.

Supporting peoples' healthy
lifestyles through sports
General sports clubs

Contributing to local healthy activities
with community-based sports facilities
BLUE EARTH JAPAN Co., Ltd. operates sports clubs
mainly in Yamanashi Prefecture with the goal of improving
the health of everyone—from children to the elderly—bygetting them to discover the fun of being active throughsports and fitness. It operates a total of nine general sports
gyms, chiefly across Yamanashi Prefecture and one in
Shizuoka Prefecture, to give users an easy-to-access way tocontinue exercise wherever they reside in the region, and isalso contracted for the operation and management ofvarious government and public sports facilities. With thelargest number of privately-owned facilities in Yamanashi
Prefecture and as a community-based sports club serving
the greatest area in the region, BLUE EARTH JAPAN has
become a venue where members of the local community
can interact and enjoy a healthy lifestyle.
With the aging population continuing to increase in
number today, there are more elderly customers who aretraining to build their physical strength and health to live amore fulfilling life as they grow older. General sports clubs
not only have weight training and machine training facilities
available for use, but also provide various sports and culture
programs like swimming schools, exercise and hot yoga
classes, and pilates sessions to meet the needs of anincreasingly diverse range of customers.

Facilities and programs to meet the broad
range of needs, from children to the elderly
In 2016, BLUE EARTH JAPAN also began operating"MY-BODY," a fitness gym specializing in machine trainingthat is open year-round, 24 hours a day, 365 days a year in
response to growing demand from people wanting to use
sports gyms in a more convenient manner. It opened fivelocations in 2019 and another new one in February 2020,
making a total of 10 locations that are currently available.
Outside of Yamanashi Prefecture, BLUE EARTH JAPAN is
also expanding into Tokyo, Kanagawa, Shizuoka andNagano prefectures as it opens even more locations. A new
initiative aimed at expanding business overseas saw the firstinternational branch opening on Cebu in the Philippines inAugust 2019. To address the social issue of the lack of
playgrounds or places available for children, it is also
expanding business to include sports activities like ballet andjudo, and after-school classes for English and calligraphy.
BLUE EARTH JAPAN aims to continue opening moregeneral sports clubs and "MY-BODY" locations in the
future, to provide locals from Yamanashi Prefecture as wellas members of other regions with venues and services tomaintain their exercise regimen and stay healthy.

BLUE EARTH JAPAN Co., Ltd.
[Company overview]
Established in 1989, and operates 22 general sports
clubs and fitness gyms mainly in Yamanashi
Prefecture as well as Tokyo, Kanagawa, Shizuoka andNagano prefectures. In addition to operating sports
clubs and swimming school businesses, it also
provides sports and educational activities for children.
It is expanding into new businesses including theoperation and management of private nursing homes,
and childcare businesses related to kindergartens andchildren's classes.

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Feature 3

SENKO Group—nurturing people and supporting their daily lives

Designing a better future

for local communities through agriculture
Relationshipwith SDGs

SENKO School Farm Tottori Co., Ltd. is involved in sustainableagriculture operations that utilize advanced technologies like plantfactories and hydroponics. Now in its tenth year, maintaining a close
relationship with the local community has created employment andtraining opportunities for a diverse range of human resources, andcontributed to creating a society with a greater sense of motivationand inspiration for all.

Developing community-based
agriculture to become an
indispensable part of the community
SENKO School Farm Tottori Co., Ltd. debuted in theagribuisness sector in 2010 as a new type of business that the
SENKO Group is focusing on, and is developing a new style ofagriculture that harnesses advanced technologies. Initiatives
include utilizing the buildings of closed-down schools as plantfactories or indoor mushroom bed cultivation units, as well as
installing plastic hydroponics greenhouses in the school yards
to produce leafy vegetables and maitake or shiitake
mushrooms. This venture started out as a welfare-based
agriculture employing the elderly or people with disabilities,
and business has expanded to growing bamboo shoots andpears by contracting regional farm operations and partneringwith local farming households. SENKO School Farm Tottori is
contributing to the sustainable development of regional
communities as an indispensable company for industrial
promotion and employment creation in those regions.

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2 0 2 0From left:
SENKO School Farm Tottori Co., Ltd. President and Representative
Director Takaki Onishi,
Farm Manager Yuko Hasegawa,
SENKO Group Holdings Co., Ltd., Living Support Business Promotion
Division, Agriculture Business Promotion Division Manager Hiromu Ueda

Reliable production of safe, reassuring vegetables at plant factories thatutilize cutting-edge technology
The technology that was adopted to ensure agriculture thatprovides a stable income was fully enclosed plant factories. Jointly
developed with universities and applying know-how acquired
through trial experiments, these plant factories enable artificial
control of humidity, temperature, light spectrum and intensity using
LEDs, CO₂ concentration, nutrient components, and other factors toachieve reliable and efficient production of safe, reassuring organic
vegetables without being affected by the season or weather
conditions. The vegetables are sold through channels that include
local restaurants, hotels and supermarkets, and the logistics
capabilities and networks of the SENKO Group are also harnessed
to extend sales to Kansai-based supermarkets and "Sushi Maru"
operated by restaurant chain group company Life-eat Co., Ltd.

Promoting local production for local
consumption; helping to boost local
employment and industry
Developing together with the local community is in itself
considered a key factor, and SENKO School Farm Tottori ismaking every effort to create new industry in those communities.
An example of this is initiatives based on locally-produced
bamboo shoot cooked in boiling water. The farm partnered withlocal foodstuff processing operators and developed a frameworkto achieve multiple goals: develop neglected bamboo forests in
the region; increase harvest yields of locally-produced bamboo
shoots; and increase employment and revenue of local farming
households. The boiled bamboo shoots were also utilized inschool lunches in the region, as a way of promoting local
production for local consumption.
The issue of decreasing number of farms producing
pears—considered a specialty in the region—was also addressedby partnering with local companies to work on pear cultivation.
The "Pear Owner System" was launched to appeal to a broad
range of owners, in an attempt to promote agriculture as well as
the tourism industry.

Revitalizing pear orchards withthe "Pear Owner System"
The SENKO Group and Donation to
Municipality tax incentives were used
to appeal to owners and revitalize thepear cultivation business.

②

①

③

④

⑤

① Hydroponic operations inside a greenhouse② Produce on sale at local Tottori Prefecture supermarket(Ajisou)③ Maitake sushi (Sushi Maru)④ Harvesting a maitake crop
⑤ A plant factory

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Education of future generations
by experiencing agriculture at
SENKO School Farm TottoriCo., Ltd.
The agricultural experience planned by SENKO
S c h o o l Fa r m Tot to r i i s a n a c t i v i t y t h a t l o c a lelementary school children look forward to eagerly
in recent years. The activity is mainly planned
during summer holidays. Participating children get
to experience planting seedlings or harvesting
vegetables in the plastic hydroponics greenhouses,d i s c ove r t h e f u n o f c o o k i n g w i t h h a r ve s te dvegetables, and also learn about future
developments in agriculture with lectures or toursof plant factories run by farm staff. Continuing toprovide such experiences not only helps to foster
human resources for farming, but also creates asense of familiarity with the SENKO Group amongst
members of the local community, which leads tostronger relationships with the community.

Lawn maintenance work
Production of turf. Employment was
created with weeding work contracted
from Chubu Co., Ltd., a producer of turf
for shipment and export to golf courses
and athletic fields around Japan.

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Environmental
measures

DigestInitiatives in FY2019

Directly linked to SDG initiatives
SENKO's "Green Logistics" contributing to global
environmental conservation
As a company involved in logistics operations, the SENKOGroup has developed and has been promoting "Green Logistics"
from an early stage with the aim of minimizing the impact on theenvironment. Initiatives aimed at curbing CO₂ emissions, such as
using combinations of rail and marine transportation, larger
trucks and consolidating logistics sites, have been recognized by
the Japan Association for Logistics and Transport (JALOT) withnumerous prizes awarded to the SENKO Group. These efforts arealso directly related to initiatives for SDGs, and have beenpraised highly by customers.

Promoting modal shift using ship and rail transportation

Responding to disaster risks(roads cut off)

Reducing CO₂
emissions

Addressing driver shortages
Reducing long driving hours

SENKO Group received the "Logistics Environment Special
Award" from the Japan Association for Logistics and Transport.
The Logistics Environment Award is a recognition system given to organizations
or companies that pioneered initiatives for environmental conservation orcontributed to the development of the logistics industry. The SENKO Group
received two "Special Awards" in the 20th Logistics Environment Awards.

Awards Ceremony held on June 25, 2019

Greater transportation efficiency for residential housing interior materials
by switching to larger transportation vehicles

Transportation of residential housing interior materials between Hyogo and Aichi prefectures was
switched from using trucks to trailers.
The award recognized the increase in efficiency due to the reduction in the number of trucks used(50%), the lower environment impact, and the laborsaving efforts for drivers.

37% reduction)

reduce CO₂ emissions by 65 t-CO₂/year (Kansai site

❶ Load in evening at Kansai BC (trailer A)❷ Receiving (trailer A)
Chubu site

Reduce number of trucks by half

Transport with trailers (1 truck unit round trip + 2 trailers/day)❹ Receiving (trailer B)❸ Connect trailer load (trailer B)

Lower environmental impact by using larger vehicles for less thancontainer loads of foodstuff

The efficiency of frozen and cold transportation between Kyushu, Kansai, Chubu and Kanto regions
was increased by switching from large trucks to semi-trailers. The award recognized the reduction in
CO₂ emissions and measures to address driver shortages. Work style reforms are also being
implemented, with development of this system that allows drivers to return home the same day.

20% reduction)

reduce CO₂ emissions by 358 t-CO₂/year (

17

SENKO
CSR REPORT
2020

Aichi
Prefecture[Relaystation]Changedrivers

Osaka
Prefecture

Fukuoka Prefecture

Switch from large trailer to semi-trailer

Reduce long-distance driving
and other workloads[Relaystation]Changedrivers

Kanagawa Prefecture

Reduce number of trucks by 26%

Senko Group "Environmental Measures" at a Glance!

Received four awards as part of "Excellent Business Entities Working on Modal Shift"
SENKO Co., Ltd. received awards in both the"Improvement Category" and "Effective Utilization
Category," Runtec Co., Ltd. received an award inthe "Effective Utilization Category," and Tokyo
Nohin Daiko Co., Ltd. and ACROSS TRANSPORT
Co., Ltd. together received a joint award in the"Effective Utilization Category."

Excellent Business Entities Working on Modal Shift
awards ceremony held on November 25, 2019

Consolidating sites for larger transportation volumes,
to switch to marine transportation

Eastern and western relay points were built for transporting residential housing materials
from various regions to Hokkaido. Consolidating transportation allowed the use of marinetransportation by switching from truck transportation to RORO ships and ferries.

Eco-Ship mark

60% reduction)

Reduce CO₂ emissions by 62 t-CO₂/year (Iwamizawa City,
Hokkaido

Tomakomai Port

Oarai Port
Hitachinaka Port

Switched to marine transportation
using trailer units

MaizuruPort

West Hub East Hub(Nara Prefecture) (Saitama Prefecture)West Japan
Supplier

East Japan
Supplier

Consolidate products from suppliercompanies at East-West hubs

Utilizing empty space in privately owned containers,
and switching to rail transportation

Tokyo Nohin Daiko Co., Ltd. utilized empty space in containers privately owned by
ACROSS TRANSPORT Co., Ltd. for transporting apparel products from Chiba Prefecture
to Hokkaido. Transportation volume equivalent to 91 loads of 10 t trucks was switched torail transportation.

Eco-Rail mark73% reduction)

Reduce CO₂ emissions by 32 t-CO₂/year (

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Department storesin Sapporo City

Across Transport Co.,
Ltd. Sapporo Center

Sapporo Freight
Terminal Station

Sumidagawa
Freight Terminal

Tokyo Nohin Daiko Co., Ltd.
SCM Terminal(Chiba Prefecture)

Utilize containers privately ownedby Across Transport Co., Ltd.

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All of the SENKO Group working towards environmental conservation
activities aimed at achieving SDGs

Kenji Nakabayashi
SENKO Co., Ltd.
Safety, Quality & Environment
Management Director and Environment
Promotion Group Manager

There is growing interest in the efforts taken by companies for SDGs and ESGs throughout
the global society.
The SENKO Group is implementing a range of initiatives aimed at enhancing corporate
value based on the keyword, "sustainable." Each company has set its own targets under thetheme of "Reducing greenhouse gas (CO₂) emissions," with initiatives including switching topower companies with lower CO₂ emissions, rolling out environmentally friendly trucks,
creating a recycling-oriented society, and proposing Green Logistics. Last fiscal year, we also
embarked on new initiatives for the conservation of biodiversity. The SENKO Group as awhole is working on all of these initiatives together as the corporate mission of conserving
and enhancing the environment, as it promotes activities aimed at achieving these SDGs.

SENKO
CSR REPORT
2020

18

Environmental Report

Environmental Policy

Environmental policy of SENKO Group
Environmental Philosophy

The SENKO Group is aiming to become an "environmentally advanced corporation" to ensure that theplanet 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 likeactivities that reduce our environmental impact and that promote more efficient use of resources, as weplay 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 the environment,
and implement environmental conservation activities continuously and in a proactive manner as a "goodcorporate 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 "from procurement
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 measures to stakeholders in a proactive manner.

Endorsing the Japanese Ministry of the Environment's "COOL CHOICE"
initiative and promoting environmental management systems
SENKO Co., Ltd. is endorsing the national "COOL CHOICE" movement launched by the Japanese Ministry of theEnvironment in FY2018 to encourage companies to make wiser decisions as part of measures to combat global warming. It
is participating in the Light Down Campaign and other environmental initiatives being implemented nationwide.
It has also acquired certification under the "ISO14001" international standards for environmental management, has
obtained "Green Management Certification" from the Foundation for Promoting Personal Mobility and EcologicalTransportation operating under the Ministry of Land, Infrastructure, Transport and Tourism, and is developing activities toreduce the impact on the environment as required by environmental management system certifications.

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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● 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
9 business sites at SENKO Co., Ltd., SENKO Line Co., Ltd.
Formerly Senko Fashion Logistics Co. Ltd.,
Atsugi Senko Transport Co., Ltd.
Minami-Osaka Senko Transport Co., Ltd.
Chushikoku Logistics Co., Ltd., Eikichi Kaiun Co., Ltd.
● Certifying institution
Foundation for Promoting Personal Mobility and EcologicalTransportation

Environmental targets and achievements

Reduce CO2 and Achievements
We track energy consumption and CO 2 emissions from business activities of the SENKO Group, and update ourenvironmental measures with these results. We have continued a range of measures aimed at reducing our environmental
impact, and we aim achieve the CO2 reduction targets in our five-year medium-term management plan, which began in
FY2017 (a reduction of at least 8,310 tons over the five years non-consolidated by SENKO).

*1 The amount of fuel consumption is converted to crude oil (kL) *2 Excludes Nippon Marine Co., Ltd. and Eikichi Kaiun Co., Ltd. *3 Aggregate of Scope 1 and 2[SENKO Group CO2 Emissions
by Energy Source]

INPUT

OUTPUT

Electricity Consumption Fuel Consumption
million kWhkℓElectricity
t-CO2

Fuel
t-CO2

Total
t-CO2

SENKO Co., Ltd.

73.06

14,37835,83637,73073,566

Runtec Co., Ltd.

37.43

19,42017,66451,606

69,270

SENKO Line Co., Ltd.

0

8,624

0

23,36023,360

Other Logistics group, Trading & Commerce,
Living Support companies

29.83

33,231

15,87387,807

103,680

Total

140.3275,653

69,373

200,503269,876[SENKO Group*1 CO2 emissions*2] (Unit: t-CO2)
300,000

Measures to reduce CO2Target achievement rate

84%

CO2 emissions tend to increase as
business grows, but we have achieved
a reduction of 4,113 t-CO2 by applying
the following measures.

250,000
200,000

SENKO Group
Runtec Co., Ltd.

264,630

267,228

269,876

SENKO Line Co., Ltd.
(former Marine
Transportation Division)*3

99,409100,791

103,680

69,88568,417

69,270150,000

SENKO Co., Ltd.
(excluding Marine
Transportation Division)

100,000

90,052

94,27625,441

28,17928,50025,33823,36064,61166,097

66,836

72,68273,566

2015

2016

2017

2018

2019 (FY)50,0000*1 Excludes Nippon Marine Co., Ltd. and Eikichi Kaiun Co., Ltd.
*2 Amount of emissions are aggregate of Scope 1 and 2*3 SENKO Line Co., Ltd. split from SENKO Co., Ltd. from FY2018[FY2019 CO2 Reduction Targets and Achievements] (SENKO Co., Ltd. non-consolidated and 59 group companies) (Unit: t)
Company
Category

FY2019 CO2
Reduction Target

FY2019 CO2
Reduction

Achievementrate

2Energy② Upgrading to energy-saving equipment (LED lighting, air conditioning)conservation① Switching to power companies with low CO emissions

SENKO

2,555

2,010

79%

③ Using renewable energy sources such as solar power generation

Group

625

497

80%

① Upgrading facilities for advanced environmentally friendly
Fueltrucks (EV, natural gas, hybrid)
conservation② Installing environmentally friendly devices such as idling stop assist systems

SENKO

457

484

106%

Group

946

868

92%

SENKO

143

127

89%

Group

189

127

67%

SENKO

3,155

2,621

83%

Group

1,760

1,492

85%

4,915

4,113

84%

SENKO

1,173

925

79%

Group

364

243

67%

Modal shift ratio

70%

70%

100%

Company Initiatives

Priority Implementation Measures

Socialrecycling① Promoting recycling of waste wooden pallets and waste
plastic② Promoting the use of retreaded tires

CO2 toCustomers

Total

Green
logistics① Implementing modal shifts② Proposing environmentally friendly efficiency(larger vehicles, collaborative deliveries, consolidatingsites)C S R

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Environmental Report

Measures to reduce environmental impact

Measures to reduce environmental impact
Greater implementation of environmentallyfriendly trucks
The SENKO Group is implementing environmentallyfriendly trucks with lower CO 2 and NOX emissions, forfacilitating the development of a low-carbon society. In
FY2019, we added two electric trucks and 14 hybrid
trucks to our fleet. The large hybrid truck being used at
Runtec Co., Ltd. uses recovered electrical energy for thechiller unit of the cold storage device as well as the truck's
drive power.

Large hybrid truck usedat Runtec Co., Ltd. from
FY2019Small hybrid truck usedat Tokai Senko Transport
Co., Ltd. from FY2019

Greater installation and switching over to energysaving lighting
Logistics centers are actively being switched over tohigh-efficiency LED lighting with 75% less energy
consumption compared to conventional mercury lamps. In
FY2019, four logistics sites utilized subsidies from the
Ministry of Economy, Trade and Industry (METI) to switch
over to LED lighting. Business sites are progressively
utilizing energy more efficiently and effectively.

Urawa PD Center achieved 100% LED lighting by utilizing
subsidies

Installation of energy-efficient automatic beveragevending machines with CFC-free refrigerant
Smile Corp. handles sales of CFC-free, heat pumpautomatic beverage vending machines. In addition topreventing destruction of the ozone layer, these machines
have the benefit of reducing energy consumption by 30%
compared to conventional models. In FY2019, 108 ofthese machines were installed mainly at SENKO Groupbusiness sites. These have a positive effect on energysaving initiatives run at workplaces.

The energy-efficient automatic
beverage vending machines with
CFC-free refrigerant sold by Smile
Corp. and installed at SENKO
logistics centers

SENKO Group participating in the Light Down
Campaign
The SENKO Group launched the Light Down Campaign
on the summer solstice (June 21 in 2019) and Tanabata(July 7) to encourage illuminated facilities and household
lights to be switched off. The Light Down activity was held
at a total of 19 business sites over two days in FY2019.
Employees were also asked to cooperate in similar
activities at the homes.
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Before (top photo) and after (bottom photo) switching off lights
at Tokyo Nohin Daiko Co., Ltd. Tokyo Bay Fashion Arena

Utilizing rooftop area at logistics centers for the solar power generation business to
supply renewable energy
The SENKO Group began its solar power generation business from FY2013 to prepare for the increasing
uptake of renewable energy, and supplies power to various power companies. In FY2019, the SENKO Group's
first large-scale solar power generation and on-site consumption site began operating at Runtec's Kansai
Branch. This clean energy is used for the storage of customer cargo. In FY2020, Runtec's New Moji Branch(Moji-ku, Kitakyushu City) installed a 0.6 MW scale solar power generation system for on-site consumption, anda large 60 kWh storage battery system. This is used to supply clean energy even during rain or at night time.

1.0 MW from FY2018
We are now generating 16.5 MWPower output up

from 21 sites across Japan* Based on figures confirmed by the Ministry of Economy, Trade and Industry

Runtec's Kansai Branch opened in July 2019
(SENKO Group's first large generation and onsite consumption)

SENKO Group's Japanese sites with solar power generation(FY2020)
There will be 22 sites acrossJapan with solar power
generation in FY2020.
(of which, two have on-site
consumption)
Runtec Co., Ltd.,New Moji BranchSites in operation
April 2020

Runtec's New Moji Branch began operating from April 2020

[Installation Plans for FY2020]
Site NameSENKO Co., Ltd. 20 business sites (selling electrical power)
Runtec Co., Ltd. 2 business sites (on-site consumption)

Timing ofOperation

Address

Generating Capacity

Moji-ku,
Runtec Co., Ltd.,618 kW
April 2020 Kitakyushu City
New Moji Branch(battery storage system) 60 kWh

Embarking on new initiatives for biodiversity conservation

The SENKO Group embarked on new initiatives for biodiversity conservation from FY2019. Nine branches of
SENKO Co., Ltd. and four group companies joined in the "Environmental Tree Planting" initiative for planting
young trees around the grounds of logistics centers. This enhanced communication in the workplace andhelped to grow stronger ties with local communities, and ensures areas of "green" are available for future
generations. We also cooperated with the "Osaka Bay Environment Restoration Project" together with local
environmental conservation groups. As part of this project, eelgrass seaweed grown in pots was returned tothe ocean to create a living environment for marine animals. In FY2019, 35 sets were handed out to be grownfrom seeds at employee households.

Taking part in the "Environmental Tree Planting" at a SENKO Group logistics center

Eelgrass seaweed grown at homes

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Safety
Initiatives

DigestInitiatives in FY2019

Group-wide Health and Safety initiatives
To strengthen initiative aimed at ensuring compliance by logistics companies within the SENKO Group, we hold staff andmanager training at 11 regional blocks around Japan, with content including regulations to be adhered to as a cargovehicle transportation operator and internal company regulations.

Areas with staff and manager training

Face-to-face on-site practical training for local managers

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. Only drivers who have passed strict testing procedures inline with internal certification and test system are permitted to work with tanker lorries Certified drivers also need to update
their training once every five years to hone their awareness of safety and quality. In addition to a broad range ofopportunities for training and learning about transportation safety when handling dangerous goods, we also focus on
making environment safer.

Hands-on fluid training

Valve operation training

FY2019 internal certified workers

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Technical Master (TM)Technical Coach (TC)Technical Pro-driver (TP)

14

15

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Senko Group "Safety Initiatives" at a Glance!

New training for midcareer staff

Introduction of advanced
technologies

New coaching system

Line lighting

Training method using the "Coaching system"
rolled out nationwide in FY2019

Use of line lighting at worker eyelevel to warn of approaching forklift

Certificationassessment
Local training sessions
Skills learning and training
Avoids collisions between forklifts and walking workers

Steps for appointing "Coaching Trainer"

Eye tracking system
Eye tracking systems are being used toprevent accidents and improve skills

New driver three months after joining

Practical training by instructor

Detects the driver's line of sight, used for safety education anddriver training

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Trying out new initiatives to boost motivation of safety awarenessat the workplace

Takami Ito

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

In FY2019 we held practical training sessions for safe driver trainers in each block toprepare for the nationwide roll-out of the "Safe driver training methods for experienced
drivers: coaching" skills that we ran as a trial in model areas from the year before last.
We also ran performance-style training in 11 blocks around Japan to enhance theknowledge of laws by managers and supervisors and their understanding of internal control
and other systems for more appropriate management. This was organized with the aim offurther improving compliance to prevent accidents and disasters attributable to work stylereforms and health.
Moving forward, we aim to address these various issues to meet our CSR goals.

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Safety Report

Safety policy, safety management

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

Basic Approach◎ The SENKO Group deeply recognizes the social mission of the logistics business and promotes
efforts that all employees understand correctly and that contributes to the improvement 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
be healthy 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 initiatives.

Promotion of Safety Management System
We conduct "Safety Skills
Evaluations" (internal audits) every
year in accordance with legislation,and publish the progress ofimprovements as improvement
ranking charts which are
distributed to branch managers
and presidents of groupcompanies. We apply the specificresults to management in eachregion, and run a PDCA cycle forresolving issues to ensure safety.

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[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 (FY2019)
As not all goals were achieved, we will formulate and implement new measures.
FY2019 Goal

FY2019
Achievements

Vehicle accident
frequency rate

0.31 or lower

0.59

Occupational
accident
frequency rate

1.14 or lower

2.31<Priority measures>● Implement effective prevention measures based on various
accident analyses● Improve safety standards further through coordination within thelogistics group● Create an environment where safety can be substantially improved andintroduce leading-edge technology based on the verification of results● Improve implementation and increase checks of various safety
management systems to strengthen safety initiatives performancesystems

Medium-Term Safety Goals (FY2017–FY2021)● Vehicle accident frequency rate (on-road accidents)
FY2019 Achievements

Aim to reduce byhalf vehicle andoccupational accidents
from FY2016 level0.61/0.53(Logistics Group)(SENKO Co., Ltd.)FY2021 Goal

0.25

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

2.49/1.71(Logistics Group)(SENKO Co., Ltd.)FY2021 Goal

0.95

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

Acquiring "Safety Excellence Workplace" certification
As part of safety programs in line withthe safety management system, the
SENKO Group is aiming to have all
workplaces acquire "Safety Excellence
Workplace certification."
As of the end of March 2020, 99% of all
workplaces have acquired certification(1% increase compared to previousyear).
* Safety Excellence Workplace certification:
Certification acquired from the Japan
Trucking Association for workplaces withtraffic safety and other initiatives that are
deemed to meet specific standards.

99% of all SENKO Group workplaces
have acquired certification

G-Mark issued by theJapan Trucking
Association

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Safety Report

SENKO Group Safety Activities

RSG program to become an Only One company
The RSG (Runtec Safety Group) program implemented by Runtec Co., Ltd. is system of activities by groups offive to 10 employees that run voluntary initiatives aimed at identifying issues like preventing accidents,
increasing work efficiency and improving the workplace environment. Twelve groups are selected from some
380 groups around the country to present details of the activities they conducted throughout the year.
Various safety training and programs were also organized to achieve the FY2019 goal of "Reducing thenumber of accidents by 10% compared to the previous fiscal year, zero major accidents, and zero incidents ofdriving under the influence of alcohol."

RSG national presentation

Examples of safety training and activities
Safe driver training

5 times/year

Training for drivers who joined the company less than five years ago

Executive candidate training

5 times/year

Training for executive candidates of product management positions

Field work training

2 times/year

Training for leader and executive candidates

Training for drivers with accident records

1 time/year

Training for drivers who have accident records

Driver candidate contest*

1 time/year

Contest for outstanding staff from each business site

Traffic safety exercises, etc.

4 times/year

Held in spring, summer, autumn, and New Year

RSG national presentation contest

1 time/year

Contest for 12 groups selected from some 380 groups

Traffic safety class for children

6 times/year

Class for 1st and 2nd grade elementary school children nearbusiness sites

Kids' guidance and cleanup day activities

1 time/week

Held along commuting routes to elementary schools nearbusiness sites* Canceled in FY2019 due to novel coronavirus

Safe driver training

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2 0 2 0Executive candidate training

Kids' guidanceTraining for basic body movement

Installation of AI dash cams
Anzen Yuso Co., Ltd. has installed AI dash cams to address the issue of fleet management after drivers leavesites. The system sounds an alarm and records video when the driver brakes or turns suddenly. This allows more
specific safe driver training to be conducted based on the video, even if the driver and supervisor are in different
locations.

Enables ongoing training for new drivers or drivers with accident records

Sudden braking or turning can be verified, even from different locations

3-company joint area training

Special safety enhancement
activities

The location of nearby group companies was used
to hold joint area training for three companies, Tokyo
Nohin Daiko Co., Ltd., SENKO A Line Amano Co.,
Ltd., and Senko Fashion Logistics Co., Ltd. Five
trainers and 13 trainees participated in training on
topics such as morning meetings, essential items(eliminating accidents while reversing) and daily
inspections.

Across Transport Co., Ltd. joined the threecompanies on the left to hold special safetyenhancement activities for one month in July as well
as December. The awareness poster includes
drawings submitted by children of employees fromeach company.

Scene from area
training

Awareness poster

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HealthInitiatives

DigestInitiatives in FY2019

Recognized for the third consecutive year as"Certified Health and Productivity Management
Outstanding Organization (White 500)"
The SENKO Group has made the "SENKO Group Holdings Health Management Declaration"
available inside and outside the company and has long encouraged activities aimed at promoting
health management, as the health of employees is considered a key management issue.
For the third consecutive year, we were recognized for these initiatives on March 2, 2020 withthe "Certified Health & Productivity Management Outstanding Organizations Recognition
Program 2020 (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
Promoting healthy lifestyles at all ages
Seminars on various topics are held for improving health literacy*.
In FY2019, we held the "Health activities seminar for working
women" aimed at female employees at three locations around
Japan.
Volleyball competitions and other sports programs were also heldat each workplace as healthy activities events, and employees areencouraged to participate in club activities. A tennis club was also
formed in 2019 at the head office building in Tokyo.
* Health literacy: the ability to find and understand health information thatsuits your own conditions, and take action for your own health care or toprevent illness.

Tennis club activities

Nurses helping to improve health
We have assigned 22 nurses (occupational health and general
nurses, as of April 2020) to our main business sites in 13 areas
nationwide, to provide specialist health guidance and mental andphysical support to employees.
The "Health management system" was introduced in FY2019 forcentralized management of the results of regular health checkups
and health instruction records, to ensure all group employees
receive the same level of health management.

Occupational nurses assigned around JapanSENKO 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 President and Representative Director SENKO Group Holdings Co., Ltd.

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SENKO Group "Health Initiatives" at a Glance!

Health management initiatives at group companies
Following on from 2019, Toyohashi Senko Transport Co., Ltd. and Harcob Co., Ltd. are two companies that werecertified again in the SME Category of "Excellent Organization of Health & Productivity Management 2020." 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 2020"
Toyohashi Senko Transport Co., Ltd.
Since being certified as an "Excellent
Organization of Health & Productivity
Management," we have been approached byhealth-related companies and we have increased
awareness of employee health even further. In
FY2019 we aimed to increase opportunities forexercise and to boost communication by inviting
trainers from sports clubs to teach us about
various stretches that can be done at home andthe workplace. Many people including families
participated, and it was a great opportunity foreveryone to better understand their body.

Boosting communication with health events

Sukoyaka Activities Session

Trying new things every year!

Harcob Co., Ltd.
In addition to the usual activities like regularly
publishing Sukoyaka News, we are strongly
encouraging employees to have a follow-up test
after their medical checkup. Other efforts to boost
health awareness include no-smoking programs
and yoga mat exercises held from 3PM.
From FY2020, the company has also designatedcertain days as holidays and overtime-free daysas part of efforts to implement work style reforms.
As our workplace has a large number of female
staff, we have organized checkups for illnesses
that affect women of all ages.

Exercises from 3PM everyday

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"Health management for body and mind"
Setting and achieving your own targets and courses

Koichi Furuya

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

The novel coronavirus spread globally at the start of 2020, and I feel that it has made keeping
healthy a lot more difficult. Washing hands and gargling to prevent infections. These may seem
like commonsense, but are difficult to achieve without changing habits. The basics of maintaining
and improving health—"Improving the workplace environment on a daily basis to create a better
workplace for employees" and "Ensure that employees have a balanced diet, exercise
appropriately and have sufficient sleep"—are essential for making sure that employees can workin healthy and lively manner. From this year, we are applying the "Setting and achieving your own
targets and courses" approach throughout the entire group to boost awareness with each andevery employee. We hope to develop various initiatives and aim to become a health managementcompany where those promoting health are an integral part of the team.

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Social
Initiatives

DigestInitiatives in FY2019

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. In FY2018, social contribution activities submitted by group companies were screened by the"Social Contribution Promotion Committee" to select one team for the Outstanding Performance Award and two teams for
the Excellence Award.

Senko Fashion Logistics Co., Ltd., Tokyo Nohin Daiko Co., Ltd.
Five-company joint safety conference"In recognition of positive approach and consistency"

最優秀賞

Received the Outstanding Performance Award in recognition of initiatives such as the positive approachto developing "Traffic Safety Class for Children" and consistently hiring people with disabilities.

Presenting activities held
over the last 12 years after
being awarded the "Excellent
Workplace for Hiring People
with Disabilities" from both
Chiba Prefecture andFunabashi City.

優秀賞

31

SENKO School Farm Tottori Co., Ltd. and the Tohoku Main Branch of SENKO Co., Ltd. wereselected for the Excellence Award. SENKO School Farm Tottori Co., Ltd. was recognized for its
ongoing programs providing agricultural experiences to children using mother and child living
support facilities as well as local elementary school children. Tohoku Main Branch of SENKO Co.,
Ltd. was recognized for the diversity and consistency of activities such as collecting aluminum cansand donating wheelchairs in exchange, and participating in the tree planting festival at Millennium
Hope Hills in Miyagi Prefecture to help plant 10,000 trees.

SENKO School Farm Tottori Co., Ltd.

SENKO Co., Ltd. Tohoku Main Branch

Scene of agricultural experience

Planting 10,000 trees at Millennium Hope Hills

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SENKO Group "Social Initiatives" at a Glance!

Industry-university collaborative project"Hotel Kaie Art Competition"
held together with Tama Art University"Hotel Kaie" opened in February 2020 in Shiomi, Tokyo, and held an exhibition featuring 65 items of textiles, dyed goods
and illustrations created by students at Tama Art University. Hotel Kaie approached the university with the proposal for a
student exhibition space as part of initiatives aimed at fostering the development of artists and to serve as a springboard
for students embarking on future endeavors. The artpiece "Echoes" (Yael Harnik, Israel) was selected for the Grand Prix,and exhibited in the 1F elevator hall.
The artpiece "Echoes" (Yael Harnik, Israel) was selected for the Grand Prix, and exhibited in the 1F elevator hall.
Illustrations personifying the 47 prefectures around Japan, created as a joint project with Tokyo Communication Arts, wasalso on display in the 2F guest room hall. Hotel Kaie will continue serving as a venue for exhibiting the works of budding
artists.

Celebratory event for the "Art Competition" industry-university collaborative
project held with Tama Art University

Various winning work on display in the hotel

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Continuing to contribute with activities
for a more affluent society

Makoto Yamazaki
SENKO Co., Ltd.
Executive Officer Administrative Manager

Social contribution activities of the SENKO Group are aimed at creating a more affluent
society by working with local communities to foster future generations and promote sports andculture, while respecting the essence of diversity. The Traffic Safety Class for Children activity
common to the entire group was held again in FY2019 at 20 locations around Japan, andattracted 1,922 participants. The Children's Traffic Park also had more than 36,000 visitors—
the most ever since opening on the grounds of Crefeel Koto in 2016—and played an importantrole in the education of traffic safety in the region. We are also taking a pro-active approach toother activities, such as operation of six daycare centers around Japan to help women play agreater role, as well as promoting sports and culture through judo, golf, Go and much more.

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Social Report

With Our Employees, With the Regional Community

Teleworking Days
The SENKO Group continues to endorse and promote the Teleworking Days initiative put forward by the Ministry ofInternal Affairs and Communications and the Ministry of Health, Labour and Welfare and other associated ministries from2018. Teleworking has drawn increased focus as a viable method for implementing work style reform, and teleworking has
been utilized mainly at the Tokyo and Osaka head offices from 2019 in particular, with a significant increase from 2018 of
130 more employees (total 331) utilizing the system.
The SENKO Group will continue to maintain a workplace environment that suits a diverse range of working styles.

130
331
Total number
No. of participating departments 36
No. of participating employees

Example of teleworking

Promoting hiring of persons with disabilities
The SENKO Group is aiming to be viewed as a trustworthy
company by contributing to the lifestyle of everyone insociety. To achieve this, we opened the SENKO School
Farm Tottori Co., Ltd. (special subsidiary company) and arefocusing on hiring persons with disabilities as a company
providing employment to a diverse range of employees.
We always maintain a rate of employment higher thanthat required by law, so that persons with disabilities canplay an active role in a range of workplaces.

[Change in employment rate of persons with disabilities(data from June of every year) ]
(%)
5.0
4.0
3.0

3.03

2.2
2.0
1.8
1.0

3.14

2.74

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2.65

2017

2018

2.46

Legally mandated
employment rate
2014

2015

2016

* Figures from SENKO Co., Ltd.

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2.64

2019

(year)

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.

Contributing to the community daycare
centers
The SENKO Group currently operates daycare centersat six locations. These facilities are popular with local
communities, as they are available for children other thanthose of employees, and from October 2019 beganoffering free childcare services for children aged three tofive years old as a licensed daycare facility.

Held atChildren taking part inevacuation training

20 worksites,
attracting 1,922 participants
Christmas party

Actively participating in cleanup days andblood donation drives

Traffic Safety Class for Children held by SENKO Co., Ltd. Higashi Kyushu
Operation Center

We hold cleanup days as part of community contribution
activities as a show of gratitude to the roads we use on adaily basis. A total of 14,619 employees took part in
FY2019.
1,129 people donated blood, which was more than thatin FY2018 and is the second largest number after thehighest recorded in FY2017.

Senko Business Support
Co., Ltd.
Nobeoka Police Department
Traffic Division lieutenant
invited to provide new
employee training

Joint blood donation drivein Kyoto-Shiga region

Crefeel Koto
Example ofusing crosswalks

Cleanup day at theTokyo head office

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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
Appointment/Dismissal

Accounting
Auditors

ReportAppointment/Dismissal
Audit

Board ofCorporate Auditors

Accounting
Audit
Audit

Assist/ReportReportAuditing Dept.

Legal Counsel

Audit

AdviceAppointment/Dismissal

President andRepresentative Director Report

ReportInstructCore companies

Runtec Co., Ltd.
Living Support
SENKO
SHOJI Co., LTD. SENKO
Business Support
AST CORPORATION
Co., Ltd.
Affiliated companies
SMILE CORP.

Internal Controls
Committee
CSR Promotion
Committee

ReportOperating companies

Subsidiaries directlysupervised byholding company

Executive
Officers

Appointment/Supervision

DialogReportReportBoard ofDirectors

Supervise Report
ReportEach 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

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

Compliance-Based Management
Compliance-based management, which complies with laws and regulations and engages in ethical business activities, 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.

Development of Business Continuity Plan
(BCP)
Every Group location has established a business
continuity plan (BCP) in order to swiftly recover businessin 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 business systems
can be maintained.

Backup data center

Customer

Public line

Ordinary
operation

Send, receiveand processdata

Emergency

Switchover

Each business site
Internal
network

Osaka Center

Each business site

(Osaka Prefecture)

Backup Center(Miyazaki Prefecture)
Backup Center
SystemHost system

ordinary
operation

Each business site

Backupdata

Tsunami Evacuation Training
Branches near coastal areas of Kyushu held evacuation
training in preparation of fires and tsunamis that are
expected after an earthquake strikes. Training willcontinue being organized to ensure quick evacuations in
the event of a disaster.

Scene from evacuation training

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 safety, to allow us to quickly
check how the disaster may have affected employees.
We also hold mock training for all group employees twicea year to ensure that they can all quickly report on theirstatus in the event of an actual disaster.

Email report
Cell phone

Online report
Smartphone
Home computer

Send a request
report email

Safetyconfirmation
systemCheck condition(check remotely)
Administration
Department
Branch manager,
etc.

Smartphone
Home computer
Cell phone, 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

Current as of Tuesday, March 31,
2020 (Group Total)

Company overview
Trade Name

Consolidated operating revenue

SENKO Group Holdings Co., Ltd.

Capital26,528 million yen(100 million yen)

Established

September 1916

6,000

Incorporated

July 1946

5,000

Headquarters

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

4,000

Representative

Yasuhisa Fukuda, President and Representative
Director

3,000

Business Sites

611 sites in Japan, 59 sites overseas

Employees

17,644

Vehicles

6,840 (including trailers)03.87 million m2

2016

2017

2018

2019

(FY)

(100 million yen)

250

150

199
172

173

207

173

90

100

60

50

30

2015

2016

2017

2018

2019

(FY)

Total logistics center floor area
(10,000 m3)
400

2015

90

2016

95

2017

2018

(Vehicles)
7,000

366
322

0

85

121

2019

(FY)

Vehicles (including trailers)
387

350

117

120

150

300

2015

Consolidated net income(100 million yen)

0

4,921

1,000

Consolidated ordinary profit

200

4,554

5,700

2,000

Controlled Vessels 69
Logistics Centers

4,340

5,296

5,914

6,000

342

5,000

294

4,745

6,412

6,840

5,180

4,000
3,000

250

2,000
200

0

37

1,000
2015

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2016

2017

2018

2019

(FY)

0

2015

2016

2017

2018

2019

(FY)

Business sites in Japan (611 sites)

Current as of Tuesday, March 31, 2020

Main logistics centers that began operations during FY2019

Hokkaido

6 sites

Runtec Co., Ltd.
Kansai Branch

SENKO Co., Ltd.
Oita PD Center

SENKO Co., Ltd.
Amagasaki PD Center

Tohoku23 sites

Kinki

193 sites

Chushikoku

76 sites

Kanto

164 sites■

Kyushu80 sites

Chubu

69 sites■ SENKO Group Holdings Co., Ltd. Headquarters (Tokyo)

Business sites overseas (59 sites)

Current as of Tuesday, March 31, 2020

Main logistics centers that began operations during FY2019

M-SENKO Logistics CenterNorth America■ Local subsidiaries andoverseas business sites

Kazakhstan

ChicagoWinchester
Los Angeles

AlmatyGermany
Düsseldorf
■

■
■

China

■

MexicoMexico City
Querétaro
Guadalajara■■■

Beijing■■

Dalian

■
■
■

■

■

■

Qingdao■

Zhangjiagang■

SuzhouGuangzhou
Hong Kong■

Changshu■

Shanghai

Vietnam

Seoul
Busan

Pho Noi
Ho Chi Minh

Singapore

Nantong
■
■■
■

■

Korea

■
■

■

■

MyanmarIndonesia

YangonJakartaThailand

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 2020