SBS Business Report
For the year Ended December 31, 2013

（Security Code：2384）

BUSINESS HIGHLIGHTS 2013

SBS Group meets the various logistics needs withthe utmost quality.
Performance of the current term
Net Sales¥ 132.0 billion

Operating Income
Ordinary Income
Net Income¥ 4.1 billion¥ 1.5 billion

Property
Management
4.2％¥ 3.8 billion

Dividend per share ¥40

Adding logistics

Other 4.4％

（Human resources,
environment-related,marketing and solar
power generation）

Logistics
91.3％

support business toour core logistics

business, providing

logistics services withhigh added value（common dividend ¥30 + commemorative dividend ¥10）

An overview of businesses

Logistic
Business

General
Logistics●3PL ●Logistics Center Operation●Distributive Processing ●Trucking●International Logistics ●Logistics Consulting

Food
Logistics●Three-Temperature Nationwide Logistics ●3PL
●Distributive Processing ●Home Delivery●Logistics Consulting
OthersSpecialized
Logistics

Logistics
SupportBusiness●Same-day Delivery

OthersProperty●Development and sale of logistic facilities
Management
OthersOthersOthers●Human resources ●Environment-related ●Marketing●Solar power generation Others

Important aims and strategy
Expanding 3PL businessand ensuring stablefoundations (by working
with the food industry)Business strategy

Overseasdevelopment focusing
on the Asian markets

M&A anddevelopment oflogistics facilities

International
strategy

Investment
strategyStrengthening of the Group's management foundations
Establishment of a low-cost operation system :creation of an environment enabling synergetic effect

3PL Corporate GroupThree
strategies

which has the logistic
functions in all
directions, aiming tobecome a top-level.

＊The statements made in connection with the forecasts present in these materials are based on assumptions, which include
information available at the present time and uncertain components, which may affect future business results.The actual
business results may differ from the forecasts due to various causes that may affect them in the future.

1 SBS Business Report 2013

MESSAGE FROM THE PRESIDENT

Commemorating the listing of
the Group on the First Sectionof the Tokyo Stock Exchange,

we will make a strong effort
to ensure further growth of what
we call the "Reborn SBS Group".
President : Masahiko Kamata

Ｑ

How did the Group performin the current term
(year ended December 31, 2013)?

substantial increase in the operating profit witha move into the black made by the humanresource business and the good results shown

This term was very difficult for the Group.The

by the solar power generation business, which

Logistics Business, which is the primary businessis a new business for the Group.

of the Group, posted operating losses in the firstAs a result of the above, although the Group as

half of the term due to a decrease in the volume

a whole had to operate in a severe environment,of cargo handled and a decrease in operating

we managed to exceed the results of the previous

ratio in some parts of the Group. From theterm in both sales and operating profit andsecond half, as a result of the effects of the Abe-reached the goals set in the beginning of the term.

nomics, economic conditions showed signs ofrecovery and the Group managed to achieve asubstantial recovery by the end of the year.
We concluded a number of contracts for

What were the current trends in

Ｑ the logistics industry in Japan?

large-scale services, for example for 3PL services

The business climate in the industry is continuingwith the SHIMACHU and achieved a steadyto be quite severe due to the power rate hikegrowth for the Group both in terms of its market-

and increased fuel prices under the depreciation

ing power and of the on-site capabilities.

of yen.

Moreover, the Group acquired sites for logis-

One particularly adverse aspect is that clientstics facilities in Thailand and Yokohama, thus

are continually demanding for reduction in

making necessary preparations towards expand-prices, and an increasing number of enterprises

ing the 3PL business in the future.

which implement competitions of logistics com-

Meanwhile, in the Property Management Business, the Group started construction of a newpanies to find partners offering lower prices thanthe enterprises are paying now.

large-sized center in Yokohama, Kanagawa Pre-For that reason, the price competition between

fecture and the center is due to be completed incompanies in the industry is intensifying further,

November 2014.

and to survive, we need to implement further

Also, 51% of the trust beneficiary right to themeasures to lower the costs of operations.

West Japan Logistics Center which the Group owns

Another problem is the aggravated shortage ofin Kyotanabe, Kyoto Prefecture was transferred todrivers, and in total I would say that the environ-a private placement fund SBS Logifund No. 1.

ment surrounding the logistics industry willIn the Other Business, the Group achieved aremain severe for a while.
SBS Business Report 2013

2

MESSAGE FROM THE PRESIDENT

What is the strategy of the Groupfor the next term
(year ending December 31, 2014)?

Ｑ What is the SBS Logifund No. 1 ?

Ｑ

To expand the 3PL business, it is vital to

In order to remain undefeated in the current

develop new logistics facilities.

severe environment, in 2014, our challenge will

Development of facilities requires a large

be to work under the motto of "Change or Die".

amount of capital, but if we rely on borrowing,This motto was chosen to convey our wish for

the Group's financial balance will inevitably

all of our employees to engage in their duties withdeteriorate.

a sense of impending crisis, work every day neverIn the past, we recovered funds by sales.

fearing changes, always ready for new challenges.

However, we decided to utilize the private

Also, we created the following four points asplacement fund method this time.

the Group's policy for 2014:

The Group collected the funds neededf o r development by transferring the trust
beneficiary right for logistics facilities

Further reinforcement of the
3PL business

Logifund No. 1 formed by a major financial

Promotion of development ofreal estate for logistics purposes

institution.

Promotion of overseas developmentt o a p rivate placement fund named

SBS

By investing this fund in the development of
new facilities, we can now advance with our
growth strategy uniting the 3PL business andthe development of facilities.

Active use of mergers andacquisitions
We will achieve business growth throughMoreover, one more good aspect of adevelopment of the 3PL business and development

private placement fund is that it helps toof logistics facilities on the one hand andmaintain our relationships with the customers

expansion in the overseas market on the other.

when the Group continues its involvement with

Regarding the profits, we are estimating an

the facilities for example by making partial

increase of profits by approximately 10%

investments.

compared with the current term (year ending
December 31, 2013).
Regarding sales operation, we established apowerful company-wide team in the sales
department and intend to acquire newcustomers making full use of internet sites anddirect marketing.

The Group has set its Medium-term

Ｑ business objectives. What are they?
The Group formulated "SBS Growth 2017", andwe aim to achieve net sales of 200 billion yen,operating profit of 8 billion yen, and operating
margin of 4% in 2017, which will be the 30th
anniversary of the Group s establishment.
In order to achieve further growth and continue
being a prosperous enterprise in the future, weshall make concerted efforts together.

3 SBS Business Report 2013

MESSAGE FROM THE PRESIDENT

Medium-term management plan <SBS Growth 2017>■ Corporate vision of the Group■ Numerical Targets

Forming a 3PL Corporate Group which

has the logistic functions in all directions,and strive to become one of the leadersof the industry as a logistics company

Net sales (Organic growth)

Operating income

Net sales (M&A growth)

Operatingincome（Billions of yen）

Net sales（Billions of yen）

Medium-termtargets

representing not only Japan but theentire Asian region■ Medium-term management policy▪Enhance on-site capabilities▪Bring together the Group s capabilities▪Continue to be a group with venturespirit▪Achieve sustainable growth▪Stick with management focusing on
compliance and CSR

Lastly, what is your message to

Ｑ shareholders?

200

200

10

8.0
8

150

121.1

127.9

100

50

0

132.2
4.1

2.2

135.0

155.0
6

4.6

4

2.9

2

2011

2012

2013

2014

2017

0

We shall further improve the profitability
and return the profits to our shareholders as

During this term, after listing on the Second

the form of improvements in stock prices andSection of the Tokyo Stock Exchange, which

dividends.

we achieved in the previous term, the GroupI assure you that you can rely on us.

finally attained its long-cherished dream ofbeing listed on the First Section.
This was possible only thanks to the great
support of our shareholders, and I would liketo use this opportunity to express our sincerest appreciation to all of you.
This year was also a turning point for the
SBS Group; we implemented the unification

Listing on the First Section of
the Tokyo Stock Exchange
On December 16, the SBS Holdings was listedon the First Section of the Tokyo Stock
Exchange.

of the brand, which shall enable us toincrease the group synergy, and also somestructural changes paving the way for a fullfledged overseas development.
From 2014, we intend to accelerate ourgrowth rate aiming to become a logistics corporate group, which can be a strong contender on the global scale.

SBS Business Report 2013

4

HIGHLIGHT

Site for a logistics facility acquired in Thailand,
preparations started to launch construction
Establishing the ﬁrst overseas logistics center, aiming to get orders from Japanese-aﬃliatedcompanies by oﬀering Japanese quality standards
Thailand is becoming one of the leading

The Group plans to construct four logistics centers

industrial nations in the ASEAN region, and manywith the total floor space of approximately 10,000

Japanese-affiliated manufacturers from thesqm, an office building and a dormitory. By the end

automobile industry, electrical engineering industryof June 2014, the two centers, the office building

and other industries are opening their bases in thisand the dormitory are to be completed first.

country.

Putting to good use the Group's know-how about

To expand its logistics business in the ASEAN

the development and administration of logistics

region, the Group acquired a site for logistics

facilities, we intend to create a logistics center offacility in Thailand.

truly high quality offering Japanese-style operation.

The site is situated in Eastern Seaboard, one of theleading industrial areas in Thailand, and the area is a
64,000 sqm (about 20,000 tsubo).
The location is approximately 25 kilometers from theLaem Chabang Port and very favorable, which is thelargest international harbor in the country. This area
is also rapidly developing base for manufacture andlogistics, selected as the site for offices by many
Japanese-affiliated companies.

Launched construction work of the Nagatsuta Logistic Center
Highly eﬃcient large-sized logistics center capable of handling foodstuﬀs and conveniently
located just two kilometers from the Tomei Yokohama Machida IC
In December, the Group carried out the groundbreaking

example, by installing truck berths on all floors toceremony for the Nagatsuta Logistic Center (Midori

improve the cross-docking efficiency, adopting

Ward Yokohama, Kanagawa Prefecture) for which

low-floor berths in some areas, and laying dustproof

we had been implementing site work for some time,

floors. It is also being built with environmental

and started the construction work aiming toconsiderations preserving the existing green tracts ofcomplete the center in November, 2014.

land around it.

The three-storied center with one story beneath theMoreover, we intend to install solar power

ground level and two stories above ground will be a

generation equipment of one megawatt class on thelarge-sized logistics facility exceeding 13,000 tsubo

rooftop.

in total floor space. It will be adjacent to the Tomei
Expressway and Route 246, a majorarterial road, and is conveniently locatedas an interprefectural transportation anddelivery base to cover the metropolitan
area and the Kanto area as a whole.
It has high functionality to ensure
capability for work with foodstuffs, for

5 SBS Business Report 2013

TOPICSFor Cosmos Pharmaceutical
Corporation, establishing anotherlogistics center in Ehime prefecture,
following Kagawa(SBS LOGICOM)

April

Ami Oﬃce, a base for large-sized
vehicles completed

November(SBS Flec)SBS LOGICOM established the
Ehime Center for Cosmos
Pharmaceutical Corporation,a major drugstore chain,launching 3PL services
covering everything from
center management todelivery.
We created an organization capable of supportingas many as 80 stores, and shall offer further support
to the expansion strategy of the company.

A base for large-sized vehicles
engaged in transportationand delivery of products for a
new factory of the MEGMILKSNOW BRAND to all parts ofthe country was completed in
Ami-machi, Ibaraki Prefecture.
In February 2014, the base will start transportationand delivery services on a round-the-clock basis forall of the dairy products produced at this plant, oneof the largest in the country.

Full-ﬂedged entry into the solar
power generation businessShouldering the "reverse logistics"
of GINZA KABUKIZA, the newlandmark in Ginza

August(SBS Group)A 3 megawatt scale solar
power system power plant wascompleted in Shibayama-machi,
Chiba Prefecture.
Together with the alreadyoperating rooftop equipment
installed in Noda, Kawagoe,
and Chikuma logistics centers, the total electric
generating capacity of the business reached the 5
megawatt scale.
The Group intends to expand its solar power
generation business further in the future.

Logistics site of 5000 tsubo
acquired in Isogo Ward,
Yokohama.

October(SBS LOGICOM)SBS LOGICOM acquired alogistics site in Isogo Ward,
Yokohama, conveniently
located close to the railroad,an express highway, and theharbor.
Here in 2015, the company
intends to erect a highly efficient logistics center ofthe 10,000 tsubo scale focusing on international
logistics.

November(SBS Support Logi)

The Kabuki-za, renewed as
the GINZA KABUKIZA.
The company participated in
the development of this giant
complex facility hosting thetheater with an adjacent office
tower from the planning stage,
and shall contribute to the environmental performanceof the facility by thorough recycling and other measures.
＊Reverse logistics: in logistics industry, supply of goods for
consumption or manufacture is called (regular) logistics, whilecollection of waste such as unnecessary equipment and furniture,used containers, remnants, etc. is called "reverse logistics".

First driver contest in the Group
held to improve knowledge ofsafety issues and driving skills

November(SBS Zentsu)

With safety our highest priority,
and as a part of the company's
education/training to eradicate
accidents and improve thequality of transportation
services, the company for the
first time held a drivers' contest.
The contest was conducted as a tournament, so theparticipants voluntarily engaged in practice beforehand,
and the initiative will surely result in increasing theawareness of safety issues among the personnel.
SBS Business Report 2013

6

CONSOLIDATED FINANCIAL PERFORMANCEIn the uncertain conditions with a sense of insecurity driven by business climate overseas and otherfactors, the Group actively developed proposal sales to expand its 3PL business, transferred a part oftrust beneﬁciary rights for logistics facilities and conducted other measures. As a result, the net sales
was increased, and there were also increase of the operating and the ordinary income.
On the other hand, the net income for the year decreased due to expenses required forrelocation/grouping of logistics centers and brand uniﬁcation.

YOY
Change■ Net Sales

YOY
Change■ Operating Income

42.7％

3.3％
UP

(Millions of yen)
150,000

120,000

115,710

119,824 121,148

127,935 132,205

4,262

3,000

60,0002,000

30,000

1,000

2009

2010

2011

2012

2013

0

YOY
Change(Millions of yen)

37.4％

5,000

UP

4,291

3,801

3,748

2,177

2009

2010

2011

2012

2013

YOY
Change

4.6％
DOWN

3,000

2,000

2,522
1,988

2,140
1,647

1,571

2012

2013

1,653
1,000

1,000

0

2,901

(Millions of yen)
4,000

2,767

3,000

2,000

2,888

■ Net Income■ Ordinary Income

4,000

4,141

4,000

90,0000UP(Millions of yen)
5,000

0
2009

7 SBS Business Report 2013

2010

2011

2012

2013

2009

2010

2011

CONSOLIDATED FINANCIAL PERFORMANCE■ Sales by Segment(Millions of yen)

FY2013

FY2012Net Sales

Operating Income

Net Sales

Operating Income

Logistics

120,786

1,219

119,330

1,728

Property Management

5,554

2,550

2,504

1,206

Other

5,865

202

6,100

44

̶

169

̶

（79）

Adjustment
Total

132,205

127,935

4,141

2,901

● Logistics Business :Net sales increased as a result of strengthening of marketing activities and the recovery made from the second halfof the term.
Although the Group opened new logistics centers and implemented relocation/grouping of the existing logistics
centers for the 3PL business, due to a deterioration of the earnings we experienced early in the year, there was adecrease in the operating profit.
● Logistics Support Business :The Property Management Business carried out a number of measures to increase liquidity by establishing a private
placement fund to develop logistics facilities, which resulted in an increase in both sales and profits.
On the other hand, although sales of the newly established solar power generation business made a good
contribution to the Other Business, due to deconsolidation of a subsidiary of the shipping agency business, there
was a decrease in net sales.
There was an increase in operating income due to such factors as the move into the black achieved by the humanresource business.

■ Net Debt, Total Shareholders' Equity（left）,
Net Debt-to-Equity Ratio（right）
Net Debt

Total Shareholders' Equity

Net Debt-to-Equity Ratio(Millions of yen)
60,00045,000（Times）
3.0

46,251
2.23

37,28730,00020,707

22,5871.65

15,00039,09038,128

09/12

10/12

39,215

2.5

Net Assets

Equity Ratio(Millions of yen)
30,00024,00027,75020,23822,61629,265（％）

25,06540

18,00024,82827,372

28,677 2.0
12,000
1.5

1.57
1.39

0

■ Net Assets, Equity Ratio

11/12

12/12

1.37
13/12

1.0

18.6％

23.2％

24.5％

26.2％

26.7％

11/12

12/12

13/12

20

6,000

0

09/12

10/12

0

＊Net Debt=Long-term loans + Short-term loans + Bond-Cash and deposits＊Net Debt-to-Equity Ratio=Long-term loans (net)/Total shareholders' equity

SBS Business Report 20138

DIVIDEND■ Dividends per Share
Basic Policy regarding the Profit Distribution
SBS Group regards redistribution of proﬁts to ourshareholders as one of the primary tasks of
（yen）
40

30

40.0

40.0

management.

40.0

Commemorative Commemorative
dividend
dividend

30.0

30.0

¥10.0

We endeavor to ensure stable redistribution of proﬁts¥10.0

taking into account the business results achieved bycontinually improving solid managementfoundations and raising the returns on equity.

20

For the year ended December 31, 2013, we added 10
yen to the common dividend of 30 yen per share anddistributed the dividend of 40 yen commemorating our

10listing on the First Section of the Tokyo Stock Exchange.
0

For the year ending December 31, 2014, we intend to
2010

2011

2012

2013

2014
（Forecast）

distribute the same amount of 40 yen per share.

※The amount of dividend per share listed is given for after the stock split and switchover to the unit stock system.
※The commemorative dividend distributed in 2012 implemented the listing of the Group on the Second Section of the Tokyo Stock Exchange.

PERFORMANCE FORECASTS (For the year ending December 31, 2014)

Net Sales¥ 135,000 million

Operating
Income¥ 4,600 million

YOYchange2.1％ UP
YOY
change11.1％ UP

Ordinary
Income¥ 4,200 million

Net Income¥ 2,500 million■ By Segment

YOYchange10.5％UP
YOY
change59.1％UP(Millions of yen)

Logistics

Property
Management

Other

Consolidation/
Corporate

Total

Net Sales

123,500

5,300

6,200

‑

135,000

YOY Change

+2.2％

-4.6％

+5.7％

‑

2.1％

Operating Income

1,950

2,400

250

0

4,600

YOY Change+60.0％-5.9％+23.8％‑

11.1％

Operating Margin

1.6％

45.3％

4.0％

‑

3.4％

※Figures of the earnings forecast contain the proceeds of internal sales between segments.

9 SBS Business Report 2013

CORPORATE PROFILE & STOCK INFORMATION■Corporate Proﬁle (As of December 31, 2013)■ Stock Information (As of December 31, 2013)

Company nameSBS Holdings, Inc.

Number of shares authorized

51,568,400 shares

President

Masahiko Kamata

Number of shares issued

13,204,400 shares

FoundedDecember 16, 1987

Paid-in Capital¥3,902.98 million

Net sales
Head oﬃce

Unit Stock System

Yes

Number of shareholders

3,292¥127.9 billion(or the year ended December 31, 2013)

4-1-3 Taihei, Sumida-ku, Tokyo 130-0012, Japan■Major Shareholders (As of December 31, 2013)
Shareholder Name

Number of
Ratio ofshares held share held
(hundred shares) (%)

Masahiko Kamata

5,962,800

45.15

SBS Holdings Employee ShareOwnership Association

576,300

4.36

Japan Trustee Services Bank, Ltd.
(Trust account)

429,300

3.25

SMBC Trust Bank Ltd.

400,000

3.02

The Chase Manhattan Bank, N. A.
London Secs Lending Omnibus Account334,800

2.53

Junichi Ouchi

309,400

2.34

TOBU Properties, Co., Ltd.

275,600

2.08

SBS Finance Co., Ltd.

The Master Trust Bank of Japan, Ltd.
(Trust account)

264,700

2.00

A-MAX Co., Ltd.

Hiroshi Date

215,900

1.63

Marketing Partner Co., Ltd.

State Street Bank and Trust Company

200,000

1.51

PAM Co., Ltd.

Note: Japan Trustee Services Bank, Ltd. (Trust account) is a

Tel: +81-3-3829-2222(main)
Fax: +81-3-3829-2822
Lines of Business Logistics, property management,
marketing, human resources, etc.
Major
consolidated
subsidiaries(including 500 less-than-one-unit shares)

SBS Logicom Co., Ltd.
SBS Flec Co., Ltd.
SBS Zentsu Co., Ltd.
SBS Sokuhai Co., Ltd.
SBS Staff Co., Ltd.
Atlas Logistics Private Limited
SBS Support Logi Co., Ltd.

re-trusted employee share ownership association and the numberof shares its trust account holds includes 221,100 of our shares.

■ Board of Directors and Auditors(As of March 26, 2014)■Distribution of Shares by Shareholder Type(As of December 31, 2013)

President

Masahiko Kamata

Senior director

Kenichi Iriyama

Director

Taiji Sugino
Makoto Watanabe

Director (outside)

Tetsuya Sekimoto

Audit & Supervisory Board
Member (full-time)Shin-ichiro Watanabe

Audit & Supervisory Board
Member (outside)

Shigetaka Shomatsumoto

Number of share issued: 13,204,400 shares
Japanese Corporations

Securities firms

663,300 shares（5.02％）

252,194 shares（1.91％）

Non-Japanese Corporation

Treasury stock

1,251,200 shares（9.48％）

115 shares（0.03％）

Financial institutions

Masahito Takeda

1,470,900 shares（11.15％）

Individuals and others

9,566,691 shares（72.45％）Jiro Iwasaki

SBS Business Report 201310