Briefing Material for Business Results

Section 1 Summary of Financial Results for the Fiscal Year Ending March 31, 2018
Section 2 Forecast for Fiscal year ending March 31, 2019

May 2018

0Section 1
Summary of Financial Results
for the Fiscal Year Ended March 31, 2018
(From April 1, 2017 to March 31, 2018)1

1. Operating Results for the FY Ended March 31, 2018

(Million of yen, % )FY 3/17

FY 3/18
MarginYoY Difference
MarginOperatingrevenues

455,435－

492,127－

Operatingincome17,081

3.8

17,087

Ordinary
income17,301

3.8

Profit attributable toowners of parent

8,950

2.0

Amount%36,692

8.1

3.5

5

0.0

17,316

3.5

15

0.1

9,503

1.9

552

6.2

2

2. Results for the FY Ended March 31, 2018: Operating Revenue

YoY change

Up ¥36.7 billion (+8.1%)

Operating revenue (Billion of yen)

492.1

500.0

455.4
450.0

400.0
FY 3/17

FY 3/18◆ An increase in operating revenue of 36.7 billion yen due to sales promotion, feerevisions and M&A (NIPPON MARINE, EIKICHI SHIPPING, ANZEN YUSO,OKUMURA).
3

3. Operating Revenue by Segment for the FY Ended March 31, 2018
(Billion of yen, % )YoY Difference

FY3/17Retail Product Logistics
Housing Logistics
Chemicals Logistics
OthersDistribution Total
Trade & Commerce
OthersTotal

YoY Difference
Breakdown

FY3/18

177.6
60.9
51.1
28.4
318.0
132.9
4.6
455.4

Amount

%

190.5
60.0
67.8
29.5
347.8
139.3
5.1
492.1

12.9
(0.9)
16.7
1.1
29.8
6.4
0.5
36.7

7.3
(1.5)
32.6
4.0
9.4
4.9
10.4
8.1

2.6

11.7

Ｍ＆Ａ

Others

3.1

9.8
(0.9)
2.8
1.1

13.9
17.0

12.8

0.8

5.6
0.5

17.8

18.9

* International commerce and trade included in the above

International revenue

22.7

25.3

Composition (%)

5.0

5.2

* International commerce and trade including non-consolidated overseas subsidiaries

International revenue

26.6

30.3

<Retail Product Logistics>

3.7

14.0

<Trade & Commerce>◆ An increase in revenue due to factors such as mass-market/retail sales, ◆ An increase in revenue due to sales promotions andfood, apparel-related sales promotion, and M&A (ANZEN YUSO).
M&A (OKUMURA).
<Housing Logistics><Others>◆ Efforts were made toward sales promotion. However, a reduction ofexisting business volume led to a decrease in revenue.

◆ An increase in revenue due to call-center operations,
temporary personnel dispatch businesses, and solar
power sales.

<Chemicals Logistics>◆ An increase in revenue due to factors such as sales promotions andM&A (NIPPON MARINE, EIKICHI SHIPPING).

4

4. Results for the FY Ended March 31, 2018: Profit

YoY change Ordinary profit Up ¥0.02 billion (+0.1%)
18.0

Ordinary profit (Billion of yen)
Ordinary profit Ratio (%)

17.3
16.5

5.0%

17.3
4.0%

3.8%
3.5%

15.0

3.0%
FY 3/17

FY 3/18

Ordinary income increased 15 million yen due to sales promotions, fee revisions, improvements in
productivity, and M&A (NIPPON MARINE, etc.), despite a decrease in business volume from existingclients, increase in fuel prices and outsourcing fees (subcontracting fees, labor fees), and increased costs
for retirement benefit obligation.
55. Operating Revenue by segment for
the FY Ended March 31, 2018 (Comparison with prior year )(Million of Yen, % )Operatingrevenues

YoY Change

FY3/17

FY3/18Amount%317,984

347,752

29,7689.4

132,868

139,317

6,449

4.9

Others

4,582

5,058

476

10.4

Consolidated F/S

455,435

492,128

36,693

8.1

Logistics
Trade & Commerce(Million of Yen, %)OperatingincomeYoY Change

FY3/18MarginMarginAmount%Logistics

13,4194.2

13,709

3.9

290

2.2

Trade & Commerce

3,210

2.4

2,855

2.0

(354)

(11.0)

Others

870

19.0

896

17.7

26

3.0

Adjustment

(417)

-

(373)

-

44

-

5

0.0

Consolidated F/S(Logistics)

FY3/17

17,081

3.8

17,087

3.5

Operating revenue increased due to increased revenue from M&A, and mass-market/retail sale promotions at outlets such as
major drug stores.
Operating income was affected by a growth in outsourcing fees (subcontracting fees, labor fees), fuel prices and increased costs
for retirement benefit obligation, but ended in a profit increase due to a gain in sales.

(Trade & Commerce) Operating revenue increased due to sales promotions and M&A.
Operating income showed a growth but ended in a profit decrease due to distribution fees and purchasing expenses.
(Others)

Operating revenue increased due to businesses such as call-center operations, temporary personnel dispatch businesses, andsolar power sales.

66. Operating Results for the FY Ended March 31, 2018
(Comparison with Plan)(Million of yen, % )FY3/18Plan

FY3/18MarginResults

VS. PlanMarginDifference%

Operating revenues

500,000－

492,127－(7,873)(1.6)

Operating income

18,0003.6

17,087

3.5

(913)

(5.1)

Ordinary income

18,3003.7

17,316

3.5

(984)

(5.4)

Profit attributable toowners of parent

9,900

2.0

9,503

1.9

(397)

(4.0)

◆ Sales promotions and existing business volume for operating revenue fell below the plan,
resulting in lower revenue than planned.
◆ Profits fell due to the lower sales along with outsourcing fees (subcontracting fees, laborfees) and fuel costs that exceeded the plan.
77. Balance Sheet as of March 31, 2018
(Billion of yen)
ASSETSFY 3/18(As of March 31 , 2018)
Current assets
117.1
Cash and deposits
Notes and accounts receivable
Inventories
OthersNoncurrent assets
217.2
Property, plant and equipment
Buildings and structures
Machinery, equipment andvehiclesLand
Construction in progress
OthersIntangible assets
Investments and other assets
Investment securities
Net defined retirement benefit asset

OthersDeferred assets

Change

Note

8.4
(2.2)
8.6
0.3
1.7

40.1
1.6
11.5 Major capex
2.9
12.8
1.1
1.0

●Kazo PD Center●Osaka Nanko Center●Hiroshima PD Center

6.2
1.3
1.6

0.1

(0.0)

334.4

48.5

Total assets

Note)Decrease noncurrent assets 10 billion by sales to REIT

LIABILITIES AND NET ASSETS
FY 3/18
Change(As of March 31 , 2018)
Current liabilities
106.0
12.1
Notes and operating accounts
3.7
payable−trade
Electronically recorded obligations
0.4
Short-term loans payable
Income taxes payable
OthersNoncurrent liabilities
110.3
Bonds payable
Long-term loans payable
Others

Note

3.7
0.6
3.7
32.4
10.2
20.7
1.4

Total liabilities
216.4

44.5

Total net assets
118.1
Capital stock
26.5
Capital surplus
29.7
Retained earnings
55.0
Treasury stock(0.6)
Non-controlling
7.4
interests and others
Total liabilities and net assets
334.4
Interest-bearing debts
119.8

4.0 Equity ratio
4.3
6.3
0.1
(6.7)

(FY 3/17)(FY 3/18)

35.1%
33.7%

48.5

34.7

Debt Equity Ratio(FY 3/17)
29.8%(FY 3/18)
35.8%

8

8. Statement of Cash Flows for FY Ended March 31, 2018
Selected Items
Income before income taxes
Depreciation and amortization
Decrease (increase) in notes
and accounts receivable-trade
Increase (decrease) in notes
and accounts payable-trade(Billion of yen)

Cash flows from operating activities

Cash flows from investing activities

FY 3/17

FY 3/18

20.8

24.6

(3.7)

(37.0)

Proceeds from subsidy income
Income taxes paid
and other items

16.9
12.4
(3.9)
2.3
1.9
(5.3)

Purchase of property, plant andequipment(37.0)

Proceeds from sales ofproperty, plant and equipment

11.1

Purchase of shares ofsubsidiaries and associates(7.3)

and other items

Cash flows from financing activities

Cash and cash equivalents at end of year

(8.6)

26.2

9.9

23.8

Net increase (decrease) loans
payable14.1

Repayments of finance leaseobligations(3.9)

Proceeds from issuance of bonds

10.0

Payments from changes inownership interests in
subsidiaries that do
not result in change in scope of
consolidation(6.9)

Cash dividends paid
and other items

(3.5)

9

9. Principal Distribution Centers That Started Operations
during the FY Ended March 31, 2018

Japan

Name
1

Yokkaichi No. 2 PD Center

2

Ranzan Logistics Center*3

Zama Logistics Center*4

Shin Komaki PD Center

5

Aomori Logistics Center*

6

Shin Fuji PD Center*

7

Hiroshima PD Center

8

Fujiidera Logistics Center*

9
10
11

Keiji Daimon Dangerous Goods
Warehouse (phase 2 of the plan)
Hiroshima No. 2 Center(cold and freezer logistics)
Narashino Center*

Location
Yokkaichi City
Mie Pref.
Ranzan-machi
Saitama Pref.
Zama City
Kanagawa Pref.
Oguchi-cho
Aichi Pref.
Goshogawara City
Aomori Pref.
Fuji City
Shizuoka Pref.
Hiroshima City
Fujiidera City
Osaka Pref.
Moriyama City
Shiga Pref.
Higashihiroshima City
Hiroshima Pref.
Narashino City
Chiba Pref.

Start of operations

Overseas

NH-SENKO Logistics Center

13

Hanoi Logistics Center

ChangwonSouth Korea
Hung Yen
VietnamOperating company

May 2017

10,800 m2

SENKO Co., Ltd.

June 201722,300 m2

Saitama Senko
Logiservice Co., Ltd.

June 201721,200 m2

SENKO Co., Ltd.

July 2017

30,400 m2

SENKO Co., Ltd.

Sept. 2017

4,000 m2

SENKO Co., Ltd.

Oct. 2017

21,500 m2

SENKO Co., Ltd.

Dec. 2017

26,600 m2

SENKO Co., Ltd.

Jan. 2018

11,900 m2

SENKO Co., Ltd.

Feb. 2018

2,000 m2

SENKO Co., Ltd.

Feb. 2018

9,900 m2

RUNTEC Co., Ltd.

Mar. 2018

40,300 m2

ACROSS TRANSPORT
CO.,LTD.

200,900 m2

Japan total
12

Floor area

Oct. 2017

23,400 m2

NH-SENKO LOGISTICS
CO., LTD.

Jan. 2018

16,600 m2

SENKO DISTRIBUTIONSERVICE (VIETNAM) CO., LTD.

Overseas total

40,000 m2

Total

240,900 m2* Rented warehouse

There were 11 domestic and two overseas distribution centers that started
operation in FY 2017, covering a total of 240,000 square meters.

The total storage area as of the end of March 2018 was 3.42 million square meters.

10Section 2
Forecast for the Fiscal Year Ending
March 31, 2019
(From April 1, 2018 to March 31, 2019)11

1. Forecast of Operating Results for the FY Ending March 31, 2019

(Million of yen, % )Results

VS. Plan

FY 3/19

FY 3/18
MarginPlan

MarginChange%Operating revenues

492,127－

530,000－

37,873

7.7

Operating income

17,087

3.5

19,300

3.6

2,213

12.9

Ordinary income

17,316

3.5

19,300

3.6

1,984

11.5

Profit attributable toowners of parent

9,503

1.9

11,500

2.2

1,997

21.0

12

2. Forecast of Operating Results for the FY Ending March 31, 2019
(1st Half, 2nd Half, and Full Year)）(Million of yen, % )FY 3/19
1H
Plan

2H
Margin－Plan

270,000

Full Year
Margin－Plan

530,000

Margin－Operating revenues

260,000

Operating income

9,000

3.5

10,3003.8

19,300

3.6

Ordinary income

9,000

3.5

10,3003.8

19,300

3.6

Profit attributable toowners of parent

5,400

2.1

6,100

2.3

11,5002.2

13

3. Results for the FY Ending March 31, 2019: Operating Revenue

YoY change

Up ¥37.9 billion (+7.7%)

Operating revenue (Billion of yen)

550.0

530.0
500.0

492.1

450.0
FY 3/18 (Results)

FY 3/19 (Plan)

A 37.9 billion yen increase in revenue is projected on sales promotions, fee revisions, M&A atdifferent times (ANZEN YUSO, OKUMURA), and results from new consolidations (*three living
support corporations).
*The three living support corporations (Keihanna Helper Station, Blue Earth, and Venus)

144. Operating Revenue Forecast by Segment for
the FY Ending March 31, 2019
(Billion of yen, % )YoY Change

FY3/17Retail Product Logistics
Housing Logistics
Chemicals Logistics
OthersDistribution Total
Trade & Commerce
OthersTotal

YoY Change
Breakdown

FY3/18

190.5
60.0
67.8
29.5
347.8
139.3
5.1
492.1

Amount

%

208.0
62.6
73.1
29.9
373.6
145.9
10.5
530.0

17.5
2.6
5.3
0.4
25.9
6.6
5.4
37.9

9.2
4.3
7.8
1.7
7.4
4.7
107.8
7.7

3.7

14.5

M&A

Others

3.1

14.4
2.6
5.3
0.4

3.1

22.8

0.9

5.7

5.2

0.2

9.2

28.7

* International commerce and trade included in the above

International revenue

25.3

29.0

Composition (%)

5.2

5.5

* International commerce and trade including non-consolidated overseas subsidiaries

International revenue

30.3

34.9

<Retail Product Logistics>◆ Revenue expected through activities such as mass-market/retail sales, food,apparel-related sales promotions, fee revisions, and M&A at different times(ANZEN YUSO).
<Housing Logistics>◆ Revenue expected through activities such as sales promotions and fee revisions.

4.6

15.1

<Trade & Commerce>◆ Revenue expected through activities such as sales
promotions and M&A at different times (OKUMURA).
<Others>◆ Revenue expected through activities such as newconsolidations (three living support corporations).

<Chemicals Logistics>◆ Revenue expected through activities such as sales promotions and fee revisions.

15

5. Forecast (plan) for the FY Ending March 31, 2019: Profit

Year on year
20.0

17.5

Ordinary profit
Ordinary profit (Billion of yen)
Ordinary profit Ratio (%)

up ¥1.98 billion (+11.5%)

19.3

17.3
3.5%

5.0%

4.0%

3.6%

15.0

3.0%
FY 3/18 (Results)

FY 3/19 (Plan)

Ordinary income of 19.3 billion yen is forecast through activities such as sales promotions, M&A(ANZEN YUSO and OKUMURA) at different times, increased yields due to new consolidations,and decrease of retirement benefit obligation calculations, despite rising costs of outsourcing(subcontracting fees, labor fees) and fuel.
16

6. Forecasted (planned) Operating Revenue by Segment for
the FY Ending March 31, 2019
(Million of Yen, % )Operating revenues

FY 3/18

FY 3/19

Results

Plan

347,752
139,317
5,058
492,127

Logistics
Trade & Commerce
OthersConsolidated F/SYoY Difference
Amount373,606
145,881
10,512530,000%

25,8546,564
5,454
37,873

7.4
4.7
107.8
7.7

(Million of Yen, % )Operating income
Logistics
Trade & Commerce
OthersAdjustment
Consolidated F/S(Logistics)

FY 3/18

Results

13,709
2,855
896
(373)
17,087

FY 3/19
Margin

3.9
2.0
17.7
3.5

Plan

15,310
2,930
1,430
(370)
19,300YoY Difference

MarginAmount

4.1
2.0
13.6
3.6

1,601
75
534
2,213

%

11.7
2.6
59.6
13.0

Increase in operating revenue expected through sales promotions, fee revisions, M&A (ANZEN YUSO) at different times.
Increase in profit expected through the increase in revenue, and profit growth due to a decrease in retirement benefit
obligation calculations.

(Trade & Commerce) Increase in revenue expected through sales promotions and M&A (OKUMURA) at different times.
Increase in profit expected through effects from the increase in revenue.
(Others)

Increase in revenue expected through new consolidations (three living support corporations).
Increase in profit expected through effects from the increase in revenue.

17

7. Principal Distribution Centers Scheduled for Operation in
the FY Ending March 31, 2019

Japan

Name

Start of operations

Osaka City

Apr. 2018

20,400 m2

RUNTEC Co., Ltd.

Api. 2018

16,400 m2

SENKO Co., Ltd.

Apr. 2018

12,000 m2

RUNTEC Co., Ltd.

May 2018

29,800 m2

SENKO Co., Ltd.

Aug. 201829,200 m2

SENKO Co., Ltd.

Operating company

1

Osaka Nanko Center (cold and freezer logistics)

2

Higashifuji PD Center*3

Fukuoka Center (cold and freezer logistics)

4

Nagareyama Logistics Center*

5

Koga PD Center*

6

Kazo PD Center* (phase 2 of the plan)
Three-temperature zone
(cold, freezer, and normal temperature)

Kazo City
Saitama Pref.

Aug. 2018

52,000 m2

SENKO Co., Ltd. andRUNTEC Co., Ltd.

7

Koto warehouse (tentative name)

Higashiomi City
Shiga Pref.

Oct. 2018

3,000 m2

SENKO Co., Ltd.

Fuji City
Shizuoka Pref.
Hisayama-machi
Fukuoka Pref.
Nagareyama City
Chiba Pref.
Koga City
Ibaraki Pref.

162,800 m2

Japan total

Overseas

Total floor space

Location8

Qingpu Logistics Center*

Shanghai
China

May. 2018

18,900 m2

Shanghai Senko International
Freight Forwarding Inc.

9

Beijing Logistics Center(cold and freezer logistics)*

Beijing
China

Sept 2018

9,600 m2

Sinotrans Senko International
Cold Logistics (Shanghai) Co.,
Ltd.

Overseas total

28,500 m2

Total

191,300 m2* Rented warehouse

There are seven domestic and two overseas distribution centers planned for operation in 2018,
covering a total of approximately 190,000 square meters.

The total storage area as of the end of March 2019 is projected to be 3.63 million square meters.

18

8. Dividends( Forecast )Cash dividend per share (¥/share) and dividend payout ratio
Interimdividend

Year-end
dividend

Commemorative
dividend

２６

Dividend payout ratio(consolidated)

２２

２２

２０
１６
54.2%

43.4%

１０

１２
２

８
29.8% ５５

４
４FY endingMar. 2010

５

５

FY endingMar. 2011

FY endingMar. 2012

１７

１４

８
７

30.8%

９
30.9%

１３

２
１１

１１

35.7%

35.1%

１１

１１

FY endingMar. 2017

FY endingMar. 2018

９
33.1%

33.8%

７
FY endingMar. 2013８

８

FY endingMar. 2014

FY endingMar. 2015

９

FY endingMar. 2016

34.3%

１３

FY endingMar. 201919

Part Three
Major Initiatives for the Fiscal
Year 2019 Ending in March20

FY2018 Major Management Policies• Growth and expansion of the Group’s major
businesses• Reinforcement of product developing/pricecompetitive powers• Discovering new business opportunities

Expandbusiness areas
進捗率
Reinforcement of
82.5％
manufacturing systems• Introduction/training on new technology• Establishing a comfortable work place• Acquiring/securing and training human resources

Reinforcement of earning
capacities• Reexamination of business terms and fee revisions• Improving manufacturing efficiency with newtechnologies• Consolidating and automating management tasks

Enhance brand values• Diversifying and reinforcing public relations andpromotional activities• Developing communication and fostering Group
policies• Promoting IR activities per target211. Expansion of Business Fields<Expansion of three-temperature logistics centers>(1) RUNTEC Co., Ltd.
Started operations of three refrigeration and cold storage logistics
centers in 2018
Hiroshima Branch Center 2• Higashi-Hiroshima City,
Hiroshima Prefecture• Total floor space 9,900㎡

Osaka Branch Nanko Center

Fukuoka Branch Center Expansion• Osaka City

• Fukuoka City

• Total floor space 20,400㎡• Expanded space 12,000㎡• Operating from April 2018

• Operating from April 2018

• Operating from February 201822

1. Expansion of Business Fields<Expansion of three-temperature logistics centers>(2) RUNTEC Co., Ltd.
Kazo PD Center (Phase Two) scheduled to open in August 2018

The first three-temperature logistics center to be jointly operated by
SENKO and RUNTEC
Location

Kazo City,
Saitama Prefecture

Site area

45,700 m2
52,000 m2

Total floor
space

Details
Normal25,100 m2
temperature
Refrigeration
26,900 m2
and cold storage23

1. Expansion of Business Fields<Fashion distribution expansion>(1) Logistics center operations on contract for customers
reorganizing distribution bases
Narashino Center

Nagareyama Logistics Center*Operated by: ACROSS TRANSPORT*Operated by: SENKO

 Commissioned operations for Company
O logistics

 Commissioned operations for Company
U logistics• Narashino City, Chiba Prefecture• Nagareyama City, Chiba Prefecture• Total floor space 40,300㎡（Leased）• Total floor space 29,800㎡（Leased）• Operating from March 2018

• Operating from May 201824

1. Expansion of Business Fields<Other logistics centers>
 Logistic centers to be opened in FY2018
Location

Total floor
space

Established
April 2018

Fuji City,
ShizuokaPrefecture

16,400m2

A logistics center for
drugstore corporation W

Scheduled to openin August 2018

Koga PD Center

Koga City,
IbarakiPrefecture

29,200m2

Distribution/logistics for
medicine/medical/sanitary
goods, food, and daily
commodities

Koto Warehouse(Tentative name)

Higashi-omi
City, Shiga
Prefecture

3,000m2

Corresponds to imported
housing construction
materials as a bonded
warehouse

Date of operation

Name

Notes

Higashi-fuji PD Center

Scheduled to open
in October 201825

1. Expansion of Business Fields<Overseas business expansions>(1) Establishing logistics centersPhố Nối Logistics Center

Qingpu Logistics Center

Beijing Logistics Center• Hưng Yên, Vietnam

・Shanghai, China

・Beijing, China• Total floor space 16,600m2

・Total floor space 18,900m2

・Total floor space 9,600m2• Operating from April 2018

・Operating from May 2018

• Transportation/storage offactory-manufactured goods
from Japanese companies

・Medical instruments,
automobile interior sheets,
photosensitive material

・Scheduled for operation in
September 2018
・Three-temperature
warehouse26

1. Expansion of Business Fields<Overseas business expansions>(2) Expanding the refrigeration/cold storage logistics business in Thailand

 Established a joint venture with the major restaurant franchise MKRESTAURANTS

Joint
venturegoals

To become Thailand’s No.1
cold chain corporation

To increase logistics efficiency
and focus on investmentsin the restaurant industry◼March 2018 A joint corporation was establishedCompany name: M-SENKO LOGISTICS CO.,LTD◼Constructed a new logistics center near Bangkok(Warehouse space: 22,000 m2）*Scheduled to start operations in 201927

1. Expansion of Business Fields<Overseas business expansions>(3) Accepted a logistics contract withthe major discount store D’s opening in Singapore
 Entrusted with export operations from Japan to Singapore, and local storage
and distribution operations.
• For local distribution, our Group corporation “Skylift” conducts logistics
operations such as warehousing, storage, inventory management, picking,sorting and delivery• Started operations in
December 201728

2. Reinforcement of manufacturing systems
1)Striving towards four million square meters in storage space The Group’s warehouse space situation
4 million m2

4 million
3.63 million m2
3.42 million m2
3.22 million m2

Increase of
200,000 m2

FY2016
results

FY2017
results

Increase of
370,000 m2

Increase of
210,000 m2

3 million

FY2018plan

Goal forFY202129

2. Reinforcement of manufacturing systems
2) Striving towards 6,700 Group directly-owned vehicles(Vehicles) The Group’s directly-owned vehicle situation

7,000

6,700 vehicles
1,087
increase6,000

o5,613 vehicles
5,179 vehicles

5,000
4,426 vehicles

434 increase753
increase

4,000

FY 2016
performance

FY 2017
performance

FY 2018 plan

Goal for FY 2021

* The increase of 753 vehicles in 2017 includes the 372 vehicles from
ANZEN YUSO CO., LTD, which was incorporated into the Group.
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2. Reinforcement of manufacturing systems3)Introducing new technologies to save manpower andadvance towards mechanization
Unmanned vehicles

Unmanned forklifts• Automated pallet “scooping”,• These vehicles can tow cargo“transportation” and “lowering”
weighing up to 500kg and travel• Travels at 60m/minuteat 60m/minute.
• After arriving at the destination,
the trolley detaches itself andreturns on its own

Arm robot• Alleviates cargo restacking
tasks for items distributed inlarge quantities such as
beverages and liquor.
• Three cases can be restacked
at once.

• The above facilities have already been installed in some business bases, and arescheduled for lateral expansion in other work bases as well.
• In April 2018, the ‘AI Project’ and ‘Robotics Project’ were established to accelerate
manpower conservation and mechanization.
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2. Reinforcement of manufacturing systems
4) Expansion towards foreign workers

 Creation of a corporate group in which foreigners can thrive• Promote employment of foreigners with residence status andtechnical interns for industrial packing and automobile
maintenance, to correspond to labor shortages.
→ Scheduled to welcome 75 technical interns in fiscal year2018.

 Career formation support for foreign human resources• Support career formation by entering partnerships withcolleges/vocational schools in areas such as ASEAN andconduct logistics classes with an internship at our local
subsidiaries.

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2. Reinforcement of manufacturing systems
5) Promoting modal shift(1) Reinforcing the shipping business and establishing Senko Line Co., Ltd.
• On April 1, 2018, Senko Line Co.,Ltd. was established to carry on
SENKO’s shipping businesses.
• The modal shift was reinforced with roll-on/roll-off ships and ferries
with cooperation between Senko Line Co.,Ltd., NIPPON MARINE CO.,LTD. , and EIKICHI SHIPPING CO., LTD.

NIPPON MARINE

Senko Line

EIKICHI SHIPPING
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2. Reinforcement of manufacturing systems
5) Promoting modal shift(2) Kyushu area Integration of vehicle dispatch<Started April 2018>
Centralize and unify vehicle dispatch information at the Oita hub, tocontrol all arriving/departing quantities between Kyushu and mainland
Japan.
This system is scheduled to expand into other regions in the future.
[Selecting transport modes]

Integrated vehicle
dispatch information◼ Ferries/ roll-on/roll-off ships

Oita Hub◼ Train containers
For Osaka

For Tokyo

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3. Reinforcement of earning capacities(1) Fee revisions/business-term revisions⚫ Conduct fee and business-term revisions for operations that are notprofitable or non-commercial.

(2) Improving manufacturing efficiency⚫ Introduce manpower-saving/mechanization/AI technology to improve
productivity per employee.

(3) Automating vehicle dispatch⚫ Automate vehicle dispatch to improve truck operation efficiency.

(4) Integration of management operations⚫ Integrate the management operations of each Group company for increased
efficiency.
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Go beyond 物流を超える、世界を動かす、ビジネスを変える。
logistics, make the world go round, and revolutionize business.

Contact:
Public Relations and Investor
Relations Group, President Office
SENKO Group Holdings Co., Ltd.
Tower West 15F, Umeda Sky Bldg.
1-1-30 Oyodonaka, Kita-ku, Osaka 531-6115

TEL: 06-6440-5156
FAX: 06-6440-5148
URL: http://www. senkogrouphd.co.jp/en/36