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June 7, 2024
To Our Shareholders
Company Name
N a m e o f
RepresentativeInquiries

SENKO Group Holdings Co., Ltd.
President
Yasuhisa Fukuda(Code: 9069 TSE Prime Market)
Shinzo Yoshimura
Executive Officer, Responsible for PR & IR
(TEL. 06-6440-5156)

Supplementary Explanation on Proposal No. 2 of the 107th Annual Meeting of Shareholders

At the 107th Annual Meeting of Shareholders held on June 26, 2024, we will discuss the second proposal, " Disposal of Treasury
Shares Through Third-Party Allotment for the Purpose of Supporting Social Contribution Activities of SENKO MIRAI Foundation ".
In light of the content of the dialogue with shareholders regarding this matter, we have prepared Q&A as a supplementary explanation
as shown below. We would like to announce this.
We would like to ask all of our shareholders to refer to this Supplementary Explanation for their understanding of the proposal.

Notation

Q1

What are the specific ways in which the activities of the SENKO MIRAI Foundation (hereinafter referred to as the"Foundation") lead to an increase in corporate value?

A1

Currently, the expectations of stakeholders surrounding companies are not merely pursuing profits, but are also being
directed toward non-financial activities such as social responsibility and sustainability initiatives. Our group also holds
traffic safety classes and conducts cleanup activities in each region. With many other companies in the same industry
engaged in donation activities through foundations and incorporated associations, we are able to increase the trust andsupport of our business partners and consumers by conducting more proactive social contribution activities, thereby ensuring
our competitive advantage and enhancing our corporate brand value.
In addition, proactive social contribution activities contribute to enhancing employee satisfaction and engagement.
Employees feel proud of the fact that the companies in which they work are contributing to society and their motivation areenhanced. The Group's efforts to fulfill its social responsibilities through these activities also contribute to the recruitment
and retention of excellent human resources.
Furthermore, amid the increasingly fierce recruitment of excellent human resources, particularly in the logistics business,
which is the Group's mainstay, we expect that the Foundation, which has our company’s name, will have contact withstudents and contribute to recruitment. The students (universities) eligible for the Foundation's benefits are not biased toward
any particular region or faculty but are broadly eligible for universities in Japan. To this end, the Foundation will attract andretain human resources through activities such as recruitment and announcement through websites, DM to high schools anduniversities nationwide, as well as communications during school with eligible persons.

Q2

Why don't the Company just make a donation to the Foundation without having to dispose of treasury shares to theFoundation in favor of the Foundation?

A2

The goal of stock corporations’ activities is to maximize profits for the current fiscal year. However, when we makedonations to fund the operations of the Foundation, profits for the current fiscal year will decline, and in the short term,
profits for shareholders will decline. This may result in conflicts of interest with shareholders.
On the other hand, if the Foundation uses dividends on its allocated shares to fund its activities, the incentive to increase ourearnings and increase dividends will benefit both the Shareholders and the Foundation.
Furthermore, the contribution of donations may be discontinued or reduced due to our business performance, temporarychanges in management policies, etc., and stable Foundation activities are not guaranteed. On the other hand, the Company
have continued to pay stable dividends from the past while also factoring in dividend increases and have announced that wewill aim for a dividend payout ratio of 40% by the fiscal year ending March 2027.
In this way, using dividends as funds for activities will increase our corporate value over the long term and enhance theactivities of the Foundation.

Q3

Specifically, what size of benefit projects will the Foundation provide?

A3

The Foundation plans to provide scholarships to about 20 students each year. The number of students eligible for such
scholarships will increase by the same number each year, and in the future, the number will reach about 80. Considering thedifferences between the national and public or private sectors, as well as between the literature and science, the total amount
paid per person is approximately 1.5 to 3 million yen for a four-year period, and the total amount paid by this Foundation
for a single fiscal year is expected to be approximately 40 million yen.

Q4

What is the governance-based system of the Foundation?

A4

The Foundation is currently established as a general incorporated foundation, and upon commencement of its activities, theFoundation is scheduled to change to a public-interest incorporated foundation upon approval from the administrativeagency. In order to receive public interest certification, it is required that the number of council members and directors withwhom we have relationships do not exceed one-third each.
For this reason, the Foundation has established a structure that contributes to the public interest from a neutral standpointby securing the composition of officers who satisfy these requirements. Furthermore, we will appropriately disclose
information on business plans, business reports, and other matters required as public-interest corporations, strengthen ourgovernance system, and ensure operational transparency.

Q5

How will the voting rights of the shares assigned to the Foundation be exercised?

A5

As stated in A4, public interest incorporated foundations operate under certain governance. As a result, the decision-makingof this Foundation is not affected by the intentions of us or individual directors, but in order to eliminate the possibility ofarbitrary voting, it is stipulated in the Articles of Incorporation of this Foundation that they do not exercise their votingrights.

<Schedule>① Monday, May 27, 2024

: Commenced providing electronic notice of the 107th Annual Meeting of Shareholders② Wednesday, June 26, 2024 : Annual Meeting of Shareholders<Published accounts>① Notice of Convocation of 107th Annual Meeting of Shareholders
https://www.senkogrouphd.co.jp/ir/pdf/gsm-107-an.pdf② Disposal of Treasury Shares Through Third-Party Allotment for the Purpose of Supporting Social Contribution Activities ofSENKO MIRAI Foundation
https://www.senkogrouphd.co.jp/ir/news/assets/202405133.pdf

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