(Translation)

October 26, 2018

To whom it may concern
Company name : The Sumitomo Warehouse Co.,Ltd.
Representative : Takanori Ono, President
Security ID Code: 9303 (Listed on 1st section of TSE)
Reference:

Akio Kakutani,
Executive Officer, General Manager,
Finance & Accounting Department

Notice of Posting of Extraordinary Loss and Revisions to Consolidated Forecasts
The Sumitomo Warehouse Co., Ltd. (“the Company”) announces that it will post an
impairment loss as an extraordinary loss for the second quarter ended September 30,
2018, and has also decided to revise the consolidated forecasts for the six months ended
September 30, 2018 and the full year ending March 31, 2019 that were announced onAugust 7, 2018.
1. Posting of extraordinary loss
In addition to “Logistics Business” and “Real estate Business”, the Company Group
operates “Shipping Business” consisting mainly of vessel operations along the PacificNorthwest, through its subsidiary Westwood Shipping Lines, Inc., etc.
Although ocean freight is recovering in Shipping Business, it remains below
expectations. In addition, fuel costs have skyrocketed due to higher crude oil prices
and charted vessels rates and inland transportation charges in North America haveincreased. As a result of these factors, earnings are below the business plan.
Accordingly, the Company has revised its business plan and reviewed the recoverable
amount of the Shipping Business’s non-current assets (goodwill, vessels, andequipment, etc.), and decided to post an approximately ¥5 billion impairment loss on
the Shipping Business’s non-current assets as an extraordinary loss for the second
quarter ended September 30, 2018.

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2. Revision to consolidated forecasts(1) Revision to consolidated forecasts for the six months ended September 30, 2018
(April 1, 2018 to September 30, 2018)
Operatingrevenue

OperatingincomeOrdinary
incomeProfitattributableto owners ofparent

Net
incomeper share

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Previous forecasts (A)89,000

4,100

5,400

3,400

19.48

Revised forecasts (B)90,000

3,950

5,300

1,700

9.74

Change (B-A)

1,000(150)(100)(1,700)－Rate of Change (%)
1.1％(3.7％)(1.9％)(50.0％)－(Reference)
Results in the same period
in the previous year (six86,302
4,987
6,143
4,265
23.96
months ended September30, 2017)(2) Revision to consolidated forecasts for the year ending March 31, 2019 (April 1, 2018 toMarch 31, 2019)
Operatingrevenue

OperatingincomeOrdinary
incomeProfitattributableto owners ofparentNet
incomeper share

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Previous forecasts (A)181,000

9,100

11,500

8,500

97.42

Revised forecasts (B)

182,000

8,950

11,400

6,800

77.92

1,000

(150)

(100)

(1,700)－Rate of Change (%)
0.6％(Reference)
Results in the previous year
175,756(year ended March 31,2018)(1.6％)(0.9％)(20.0％)－10,302

12,684

8,358

94.84

Change (B-A)(3) Reason for revisions
For the second quarter ended September 30, 2018, the Company will post an
extraordinary loss for about ¥5 billion impairment loss on the Shipping Business’s
non-current assets. Moreover, we decided to sell some of its cross-shareholdings to
improve asset efficiency, and post approximately ¥2.6 billion in gain on sales ofinvestment securities as an extraordinary income. Accordingly, we have revised its
consolidated forecasts for the six months ended September 30, 2018 and the full year
ending March 31, 2019 as shown above.
In addition, the Company announced revision of Dividend forecast for fiscal Yearending March 2019, which was originally announced on May 11, 2018. For details,
please refer to “Notice of revision of Dividend forecast for fiscal year ending March2019” disclosed today.
2Notes:
1. The Company has conducted a 1-for-2 reverse stock split on its common shares (aconsolidation of every two shares into one share, “share consolidation”) on October 1,
2018. In line with this, net income per share as noted in “(Reference) Results in theprevious year (year ended March 31, 2018)” is calculated on the assumption that“share consolidation” was conducted at the beginning of the previous year. The net
income per share in the full year on the assumption that “share consolidation” wasnot conducted is shown below.
Previous forecast (A): ¥48.71
Revised forecast (B):

¥38.96(Reference) Results in the previous year (year ended March 31, 2018) ¥47.42
2. The forecasts are based on information currently available and certain assumptions
judged to be reasonable. The Company’s actual results may differ materially fromthe forecasts as a result of numerous factors outside of Company’s control.
*This document is an English convenience translation of a document that was originallyprepared in the Japanese language and is provided for convenience purposes only. In theevent that there is a discrepancy between the Japanese and English versions, theJapanese version shall prevail.
End3