Consolidated Financial Results
for the Third Quarter Ended December 31, 2018 [ Japan GAAP ]February 7, 2019The Sumitomo Warehouse Co., Ltd.
Securities code:

9303

Stock exchange listings:

TokyoURL:

https://www.sumitomo-soko.co.jp/

Representative:

Takanori Ono, President

Inquiries:

Akio Kakutani, Executive Officer, General Manager,
Finance & Accounting DepartmentTel:+81 6 6444 1183

Quarterly statement filing date (as planned):

February 13, 2019

Dividend payable date (as planned):－Supplemental material of quarterly results:

None

Convening briefing of quarterly results:

None1. Consolidated financial results for the third quarter ended December 31, 2018 (April 1, 2018- December 31, 2018)
Figures are rounded down to the nearest million yen, except per share figures.
(1) Consolidated operating results
Operating revenue
Millions of yen(％: year-on-year change)

Operating income％

Millions of yen％

Profit attributable toOrdinary income
Millions of yen

owners of parent％

Millions of yen％

Nine months ended December 31, 2018

139,474

6.6

6,555

(14.6)

9,004

(9.2)

4,023

(40.1)

Nine months ended December 31, 2017

130,799

9.27,673

9.7

9,911

9.2

6,718

11.3

Note: Comprehensive income:Nine months ended December 31, 2018: (5,765) million yen；－%Nine months ended December 31, 2017: 22,505 million yen；174.7%
Net income per share
Yen

Diluted net income
per share
Yen

Nine months ended December 31, 2018

46.25

46.12

Nine months ended December 31, 2017

75.98

75.78

* The Company conducted a 1-for-2 reverse stock split on its common shares (a consolidation of every two shares into one share, “shareconsolidation”) on October 1, 2018. Therefore, Net income per share is calculated on the assumption that “share consolidation” wasconducted at the beginning of the previous fiscal year.
(2) Consolidated financial positions
Total assets

Net assets

Capital adequacy ratio

Millions of yen

Millions of yen％

As of December 31, 2018

320,157

182,036

54.9

As of March 31, 2018

342,086

193,59354.2

Note: Owner’s equity
As of December 31, 2018: 175,762 million yen
As of March 31, 2018: 185,247 million yen- 1-2. Dividends
First quarter

Second quarter

YenYenDividend per share
Third quarter
Fiscal year endYenYear ended March 31, 2018

－

8.00

－

Year ending March 31, 2019

－

8.50

－TotalYen

Yen
8.50

Year ending March 31, 2019
(Forecast)

16.50

－

27.50

Note: Correction of dividend forecast from the most recent dividend forecast: None
* Dividend per share for the fiscal year ending March 31, 2019 consists of ¥13.00 for ordinary dividend and ¥14.50 for special dividend.
* The Company conducted “share consolidation” on October 1, 2018. Therefore, Dividend per share for the year ending March 31, 2019
(forecast) reflects such “share consolidation” and Total Dividend per share states “－”. Without taking into account such “shareconsolidation”, Fiscal-year-end Dividend per share for the year ending March 31, 2019 (forecast) would be ¥13.75 and Total Dividend
per share for the year ending March 31, 2019 (forecast) would be ¥22.25 (Dividend per share would be an increase of ¥5.75 comparedwith the last fiscal year). See “Explanation for the proper use of forecasts and other special instructions” for details.

3. Consolidated forecasts for the year ending March 31, 2019 (April 1, 2018-March 31, 2019)
Operating revenue

Full yearMillions of yen％

182,000

3.6

Operating income％Millions of yen

8,950

Ordinary income
Millions of yen(13.1)

11,400％(10.1)(％: year-on-year change)
Profit attributable toNet income
owners of parent
per share
Millions of yen

6,800％

Yen(18.6)

77.92

Note: Correction of financial forecast from the most recent financial forecast: None
* Net income per share in the consolidated forecasts for the year ending March 31, 2019 reflects the effect of “share consolidation”. See“Explanation for the proper use of forecasts and other special instructions” for details.

4. Other(1) Material changes in subsidiaries during this period (Changes in scope of consolidations resulting from change in subsidiaries): None(2) Applying of specific accounting of the consolidated quarterly financial statements: Yes(3) Changes in accounting policies, accounting estimates and retrospective restatement
1) Changes in accounting policies based on revisions of accounting standard: None
2) Changes in accounting policies other than ones based on revisions of accounting standard: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Number of issued and outstanding shares (common stock)
Number of issued and outstanding shares (including treasury stock):
As of December 31, 2018 : 88,186,615 shares
As of March 31, 2018 : 88,186,615 shares
Number of treasury stock:
As of December 31, 2018 : 2,623,132 shares
As of March 31, 2018 : 932,794 shares
Average number of shares:
Third quarter ended December 31, 2018 : 87,003,835 shares
Third quarter ended December 31, 2017 : 88,424,844 shares*The Company conducted “share consolidation” on October 1, 2018. Accordingly, the number of issued and outstanding sharesand the number of treasury stocks at September 30, 2018 and March 31, 2018 and the average number of shares for the second
quarter ended September 30, 2018 and 2017 have been calculated on the assumption that such “share consolidation” wasconducted at the beginning of the previous fiscal year.
* Status of quarterly reviewing processes
This Financial Results is not subject to review based on the Japanese Financial Instruments and Exchange Act.

- 2-* Explanation for the proper use of forecasts and other special instructions
1. The forecasts are based on information currently available and certain assumptions judged to be reasonable. The Company’s actual
results may differ materially from the forecasts as a result of numerous factors outside of Company’s control.
2. At the 141th General shareholders' meeting held on June 27, 2018, “share consolidation” on October 1, 2018 was approved. TheCompany also changed the share trading unit from 1,000 shares to 100 shares on the same date. Without taking into account such“share consolidation”, Dividends forecast and consolidated forecasts for the year ending March 31, 2019 would be as follows:(1) Dividends forecast for the year ending March 31, 2019
Dividend per share for the second quarter¥8.50 (Note 1)
Dividend per share for the fiscal year end¥13.75 (Note 2)(2) Consolidated forecasts for the year ending March 31, 2019 (full-year)
Net income per share for the year ending March 31, 2019¥38.96Note 1: Dividend per share for the second quarter will be paid according to the number of shares prior to the “share consolidation”.
Note 2: The amount has been calculated without taking into account such “share consolidation”.
Note 3: The total annual dividend per share for the year ending March 31, 2019 without taking into account such “shareconsolidation” is projected to be ¥22.25.

- 3-

Consolidated Financial Results(1) Consolidated quarterly balance sheets(Millions of yen)
As of March 31, 2018

As of December 31, 2018

45,90520,824
35
77
4,844
(129)

33,701
22,792
30
22
5,842
(123)

71,55862,265

Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Vessels, netTools, furniture and fixtures, netLand
Construction in progress
Other, net

71,777
3,673
6,401
765
57,517
390
692

71,095
2,889
4,737
821
60,5544,485
600

Total property, plant and equipment

141,219

145,184

2,145
7,102
1,399
1,470

71
5,702
1,409
269

12,118

7,453

Investments and other assets
Investment securities
Long-term loans receivable
Net defined benefit asset
Deferred tax assets
OtherAllowance for doubtful accounts

108,463
506
190
1,409
6,893
(273)

97,413
497
103
397
7,115
(273)

Total investments and other assets

117,190105,253

270,527

257,891

342,086

320,157

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Real estate for sale
Work in process
Other
Allowance for doubtful accounts
Total current assets

Intangible assets
Goodwill
Leasehold right
Software
Other
Total intangible assets

Total non-current assets
Total assets- 4-

(Millions of yen)
As of March 31, 2018

As of December 31, 2018

12,9667,000
17,948
1,953
1,644
6,875

14,481
7,000
16,476
1,724
1,081
6,712

48,38747,47533,00028,80026,642
38
2,755
7,924
943

33,00022,782
23,187
48
2,869
7,956
800

100,105

90,645

Total liabilities

148,492

138,120

Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock

14,922
15,491
99,353(1,231)

14,922
15,483
100,410(3,577)

128,537

127,239

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

52,132
3,571
1,006

44,882
2,696
943

Total accumulated other comprehensive income

56,71048,523

248
8,097

288
5,984

193,593

182,036

342,086

320,157

Liabilities
Current liabilitiesNotes and accounts payable-trade
Current portion of bonds
Short-term loans payable
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Provision for directors' retirement benefits
Net defined benefit liability
Long-term deposits received
Other
Total non-current liabilities

Total shareholders' equity

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets- 5-(2) Consolidated quarterly statements of income and consolidated quarterly statements of comprehensive income(Consolidated quarterly statements of income)(Millions of yen)

Operating revenue
Warehouse income
Harbor transportation income
International transportation income
Land transportation income
Shipping income
Rent income of warehouse and logistics facilities
Rent income of real estate
Other
Total operating revenue
Operating cost
Cost of sales
Personal expenses
Rent expenses
Taxes and dues
Depreciation
Other
Total operating cost
Operating gross profit
Selling, general and administrative expenses
Salaries and allowances and welfare expenses
Provision for bonuses
Retirement benefit expenses
Amortization of goodwill
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividend income
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income- 6-

Nine months ended
December 31, 2017

Nine months ended
December 31, 2018

17,80026,81428,08722,51919,368
4,061
7,328
4,817
130,799

19,26428,651
30,24925,433
19,170
4,168
7,442
5,093
139,474

79,946
15,513
7,614
1,505
5,260
5,906
115,746
15,05287,306
16,440
8,170
1,606
5,201
6,543
125,269
14,205

3,986
192
194
268
2,736
7,378
7,673

4,168
176
158
188
2,957
7,649
6,555

2,143
290
253
2,687

2,423
207
274
2,906

283
166
449
9,911

330
127
457
9,004

(Millions of yen)

Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Penalty income
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Compensation expenses
Loss on disaster
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent- 7-

Nine months ended
December 31, 2017

Nine months ended
December 31, 2018

326
－－
326

69
2,616
165
2,851

52－
170
－
222
10,016
2,648
177
2,825
7,190
472
6,718

183
5,029
－
116
5,329
6,526
3,608
774
4,383
2,142
(1,881)
4,023

(Consolidated quarterly statements of comprehensive income)(Millions of yen)Nine months ended
December 31, 2017

Nine months ended
December 31, 2018

7,190

2,142

15,1591366
75(7,288)－0(125)

15,315(7,908)Comprehensive income

22,505(5,765)(Comprehensive income attributable to)
Owners of parent
Non-controlling interests

21,953552(4,163)(1,602)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income- 8-(431)(62)

(3) Consolidated quarterly statements of cash flows(Millions of yen)
Nine months ended Nine months ended
December 31, 2017 December 31, 2018
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in provisionInterest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity method
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable-trade
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change in scope ofconsolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchase of treasury stock
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 9-10,016
5,544－
268(569)(2,143)
283
(290)
(326)
52
－
(1,261)313
951
12,8372,219(313)(3,425)
11,318

6,526
5,528
5,029
188
(558)
(2,423)
330
(207)
(69)
183
(2,616)(2,014)
1,526(369)
11,052
2,645(328)(3,826)
9,543(9,123)7,854(3,129)
1,261
(939)
(29)
－

(2,910)
5,340(10,454)
89
(558)
(33)
3,013

(143)

－88
(4,162)(313)(5,827)

2,542(6,494)
5,150(7,592)(3,167)(2,803)(110)(12,477)(4)(5,326)24,55919,233

2,023(1,871)
1,580(9,222)(2,399)(2,850)(616)(13,357)(47)(9,689)31,29921,609(4) Segment information
Information related to operating revenue and income (loss) by reportable segment
Nine months ended December 31, 2017
Reportable segment
Adjustment(Note 1)

(Millions of yen)Amount inconsolidated
quarterlystatements ofincome(Note 2)

Logistics

Shipping

Real estate

Total

104,011

19,3687,419

130,799－

130,799

453

220

297

971(971)－

104,464

19,5897,716

131,770(971)

130,799

7,610

(69)

3,743

11,284(3,610)

7,673

Operating revenue
Operating revenue to outside customers
Intersegment transfers
TotalSegment income (loss)

Notes: 1. Adjustment in segment income (loss) of ¥ (3,610) million includes company-wide expenses of ¥ (3,667) million, which are notallocated to the respective reportable segments. Company-wide expenses consist mainly of the expenses not assignable to neitherof the reportable segments for administrative departments of the Company and some of its consolidated subsidiaries.
2. Segment income (loss) is adjusted to coincide with operating income as recorded on the consolidated quarterly statements ofincome.
Nine months ended December 31, 2018
Reportable segment
Adjustment(Millions of yen)Amount inconsolidated
quarterlystatements ofincome(Note 2)

Logistics

Shipping

Real estate

Total(Note 1)

112,769

19,170

7,533

139,474－

139,474

388

406

307

1,103

(1,103)－

113,158

19,577

7,841

140,577(1,103)

139,474

7,725(1,202)

3,750

10,273(3,717)

6,555

Operating revenue
Operating revenue to outside customers
Intersegment transfers
TotalSegment income (loss)

Notes: 1. Adjustment in segment income (loss) of ¥ (3,717) million includes company-wide expenses of ¥ (3,690) million, which are notallocated to the respective reportable segments. Company-wide expenses consist mainly of the expenses not assignable to neitherof the reportable segments for administrative departments of the Company and some of its consolidated subsidiaries.
2. Segment income (loss) is adjusted to coincide with operating income as recorded on the consolidated quarterly statements ofincome.

This document is an English convenience translation of a document that was originally prepared in the Japanese language and is provided forconvenience purposes only. In the event that there is a discrepancy between the Japanese and English versions, the Japanese version shallprevail.

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