(Translation)
March 30, 2023
To Whom It May Concern,
Company name:

The Sumitomo Warehouse Co., Ltd.

Representative:

Takanori Ono, President

Security ID Code:9303 (Listed on TSE Prime Market)

Reference:

Shinji Hirota
General Manager
Business Promotion Department
Tel: +81-6-6444-1189

Notice of Sumitomo Warehouse Group’s Fifth Medium-Term Business Plan

We hereby announce that the Board of Directors of The Sumitomo Warehouse Co., Ltd.
(the “Company”), at a meeting held today, approved the Fifth Medium-Term Business Planfor the Sumitomo Warehouse Group for the period from fiscal years 2023 to 2025.

1. Review of Fourth Medium-Term Business Plan
Based on the ten-year long-term vision “Moving Forward to 2030,” which is the target
year of the SDGs, the Sumitomo Warehouse Group has positioned the period of the FourthMedium-Term Business Plan as a period of “strengthening the business foundation” towardrealization of the long-term vision. As a result of executing our business strategy, we wereable to largely achieve our plans.
(1) In the logistics business, the warehouses that commenced operation during the Fourth MediumTerm Business Plan period have steadily gotten up and running, and the harbor transportation
business and the international transportation business have expanded. In the land transportation
business, e-commerce demand was steadily captured. Thus, we were able to achieve steady
growth in both businesses.
(2) In the shipping business, while business performance improved significantly, we decided toconcentrate our management resources on our core businesses of logistics and real estate as aresult of reviewing our group’s business portfolio under the business structure reform policy
set forth in the Fourth Medium-Term Business Plan and transferred the shares of our shippingsubsidiaries and vessels in June 2022.
(3) In the real estate business, we proceeded with the acquisition of new properties to generate
long-term stable earnings.
(4) In response to climate change, we disclosed information in accordance with the TCFD
framework and made efforts to provide services that reduce environmental impact, such asmodal shifts.
1(5) With respect to shareholder returns, we are on track to achieve a tenth consecutive year ofdividend increases, and we proceeded with the acquisition and cancellation of treasury sharesas planned.
(6) As a result of the above, we achieved our performance and return on equity (ROE) targets inthe second year of the plan.
FY2022 consolidated operating revenue and consolidated operating income(Billions of yen)
Plan
Consolidated operating revenue

Forecast
210.0

Difference

228.0

+18.0

［207.2］
Consolidated operating income

12.0

26.1
［15.8］+14.1(Note) Figures in square brackets indicate operating revenue and operating income
excluding the shipping business.
Business investment (three-year cumulative total)(Billions of yen)
Plan
Business investment

Forecast
50.0

Difference43.0(7.0)

ROE; Shareholder Returns
PlanAchievements/Plans

ROE

Targeting 5% or more

10.0% (actual for fiscal year ending
March 2022)

Dividend per

Maintain annual dividend

FY2020: 48 yen (actual)shareof 47 yen and continue toincrease dividends

FY2021: 97 yen (actual)
FY2022: 100 yen (plan)
Dividend increase for ten consecutive
terms (plan)

Acquisition
andcancellation
oftreasury
shares

To purchase treasury
shares flexibly, taking into
consideration theeconomic situation,
financial condition, etc.

(three-year cumulative total)
Number of shares acquired:
4,389,300 shares (actual)
Number of shares to be cancelled:
4,389,300 shares (plan) (Note)
Total amount of shares acquired:
7,554 million yen (actual)（Note）Of the 4,389,300 shares, 2,954,700 shares have been cancelled, and 1,434,600
shares will be cancelled on March 31, 2023.

22. Fifth Medium-Term Business Plan
(1) Basic Policy(i) This period will be the “second step” to accelerate growth toward the target year of 2030 of
the long-term vision “Moving Forward to 2030.”(ii) The Company will further promote business restructuring and transform itself into a corporate
structure that is resilient and capable of steady growth and is less susceptible to deteriorationin the domestic and overseas economic environment.
(iii) The Company aims to generate steady cash flow every year and increase its corporate value
over the medium to long term.
(2) Plan Period
FY2023–FY2025 (three years)(3) Business Strategy
The Company will concentrate its management resources on its core businesses of logistics
and real estate.
(i) In the logistics business, the Company will continue to expand its domestic and overseas
bases, and will expand its business, especially overseas. In addition to addressing
environmental issues, the Company will aim to achieve sustainable growth in the logistics
business by promoting investment in DX and “people” to develop human resources andimprove its on-site capabilities and ability to make proposals to customers over the medium
to long term.
(ii) In the real estate business, the Company aims to expand the scale of earnings by acquiring
new properties and expanding its business domain to include the sales business.
(4) Performance Targets
Consolidated operating revenue (FY2025): 230 billion yen(Billions of yen)
Forecast for

FY2025

FY2022 (Note)(Final year of the plan)

Logistics business

197.9

213.5

Real estate business

10.7

18.0

Inter-segment revenue

(1.4)

(1.5)

207.2

230.0

Total(Note) The forecast for FY2022 is based on the figures in the consolidated
financial results for the third quarter of the fiscal year ending March 31,
2023 [Japanese GAAP], excluding the shipping business.

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Consolidated operating income (FY2025): 18 billion yen(Billions of yen)
Forecast forFY2025

FY2022 (Note)(Final year of the plan)

Logistics business

15.6

17.5

Real estate business

5.2

6.0

(5.0)

(5.5)

15.8

18.0

Company-wide expenses
Total(Note) The forecast for FY2022 is based on the figures in the consolidated
financial results for the third quarter of the fiscal year ending March 31,
2023 [Japanese GAAP], excluding the shipping business.

(5) Capital Expenditures
85 billion yen (three-year cumulative total)(1) By business segment(2) By ordinary investment and strategic investment(Billions of yen)(Billions of yen)

Logistics

40.0

Ordinary investment

15.0

Real estate

40.0

Strategic Investment70.0(Breakdown)
Corporate

Total

5.0

85.0

Business Investment（60.0)

Environment, DX, “People”(10.0)

Total

85.0

(6) Financial Indicators
We aim to achieve an ROE of 7% while maintaining a sound financial base.

(7) Shareholder Returns(i) Dividends
The Company will pay a dividend on equity (DOE) of around 3.5% to 4.0%, taking into
consideration the improvement in profitability in each fiscal year, wit h a minimum annual
dividend of 100 yen per share, while continuing to make the necessary business investments toenhance its corporate value from a medium- to long-term perspective.
(ii) Acquisition of treasury shares
The Company will flexibly implement treasury share acquisition, taking into consideration
economic conditions, market trends, business investments, and profit levels.
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(8) ESG Management and DX Promotion(i) Environment
・Reduce environmental impact and address climate change issues.
We aim to reduce greenhouse gas (GHG) emissions of Scopes 1 and 2 on a non-consolidated
basis by 50% from the FY2018 level by FY2030.
During the period of the Fifth Medium-Term Business Plan, we will promote the increased useof energy-saving equipment and solar power generation systems, the use of renewable energy,
the conversion of company vehicles to electric vehicles (EVs), and the installation of charging
stations for EVs.
(ii) Society
・Strengthen investment in “people”
In addition to promoting measures for women’s advancement and diversity, we will encourage
the realization of growth of each and every employee by expanding education and training
programs (including the implementation of DX training), which will lead to the sustainablegrowth of our group.
・Contribution to the 2025 World Exposition in Japan, named “Expo 2025 Osaka, Kansai, Japan.”(iii) Governance・Reduce cross-shareholdings
Over the next five years, we aim to reduce our cross-shareholdings by approximately 10billion yen (equivalent to approximately 10% of the book value at the end of March 2022), ofwhich approximately 6 billion yen (equivalent to 6% of the book value at the end of March2022) is targeted to be reduced during the period of the Fifth Medium-Term Business Plan.
(iv) Promotion of DX
Through further promotion of DX, we will not only improve administrative and operational
efficiency but also increase the added value we provide to customers.
-END-(Note) The information in this document is based on various assumptions and suppositions made by the Company and does notconstitute a commitment or guarantee of future plans, target figures, or implementation of measures described herein.
Actual results may differ significantly due to various factors, i ncluding future changes in the business environment.
This document has been translated from a part of the Japanese original for reference purposes only. In the ev ent of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

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