(Translation)
November 29, 2023
The Sumitomo Warehouse Co., Ltd.
Action to Implement Cost of Capital and Stock Price Conscious Management

1. Analysis of Current Situation(1) Stock price and PBR (Price Book-value Ratio)［Trends in the Company’s stock price]

3 mil
2 mil
1 mil
Trading (share)

Stock price (yen)［Trends in the Company’s PBR]
The Company’s PBR has remained below 1x.

Since the formula “PBR = ROE (Return on Equity) × PER (Price-earnings Ratio)” is established, we
recognize the need to work on improving “earning power” (ROE) and “expected value” (PER) in
order to improve the PBR level.

1(2) ROE (Return on Equity)
Our ROE has been in the 10% range for the last two fiscal years (FYE March 2022 and FYE March2023); however, in light of the ROE forecast for FYE March 2024, we recognize that we need tosecure an ROE level that exceeds the cost of shareholders’ equity.
[Our ROE trends]
Fiscal Year Ended Mar. 31, 2019
Fiscal Year Ended Mar. 31, 2020
Fiscal Year Ended Mar. 31, 2021
Fiscal Year Ended Mar. 31, 2022
Fiscal Year Ended Mar. 31, 2023

3.8%
5.2%
4.8%
10.0%
10.7%

［Cost of Shareholders’ Equity]
Cost of shareholders’ equity = risk-free rate + β × market risk premium
2. Plan(1) Policy(i) The Company will progressively implement the business strategies set forth in the Fifth MediumTerm Business Plan for the Sumitomo Warehouse Group for the period from fiscal year 2023 tofiscal year 2025 and improve its ability to generate profits.
(ii) We will continue to provide substantial shareholder returns and aim to maintain a suitable capital
structure.
(iii) Through dialogue with shareholders and investors and increased disclosure of information, we willstrive to gain an understanding of the Group’s future growth potential and contribute to theevaluation of a fair share price.
(2) Objectives(i) We aim to achieve an ROE of 7% during the period of the Fifth Medium-Term Business Plan, while
maintaining a sound financial base.
(ii) The Company will pay a minimum annual dividend of 100 yen per share, with a target dividend on
equity ratio (DOE) of around 3.5% to 4.0%, taking into consideration improvements in profitability
in each fiscal year.
(iii) By March 2028, we aim to reduce our cross-shareholdings by approximately 10 billion yen(equivalent to approximately 10% of the book value at the end of March 2022), of whichapproximately 6 billion yen (equivalent to 6% of the book value at the end of March 2022) istargeted to be reduced during the period of the Fifth Mid-Term Business Plan.

2(3) Initiatives(i) Improvement of profit-generating ability through aggressive business investments
While maintaining a sound financial base, we will promote aggressive business investments valuedat 85 billion yen over the three-year period of the Fifth Medium-Term Business Plan.
・Logistics BusinessWe will continue to invest in warehouses, which form the business foundation, and establish acompetitive advantage through digitization and automation of operations and promotion of DX.
・Real Estate BusinessWe will improve profitability by replacing our real estate holdings for lease, etc. In addition, byexpanding into sales, we aim to develop our business with an awareness of capital efficiency.
(ii) Maintain a suitable capital structure
In addition to returning profits to shareholders through dividends, the Company will flexibly
implement treasury share acquisitions, taking into consideration economic conditions, market
trends, business investments, as well as profit levels.
At the Board of Directors meeting held on August 4, 2023, the Company resolved to acquire andcancel Treasury Shares up to 750,000 shares or 2 billion yen worth of shares (acquisition period:
from August 7, 2023 to December 22, 2023).
(iii) Increased dialogue with and disclosure of information to shareholders and investors
We will promote active dialogue with shareholders and investors through individual IR meetings,etc., and increase the disclosure of information on our corporate website, etc.
END
This document has been translated from a part of the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

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