For the Six Months Ended June 30, 2014
（Security Code：2384）

SBS Business Report（Interim）■ Spec i a l Fe a t u r eSatisfactory progresswith the expansion of
the SBS Group's businessoverseas■ Contents

Business Highlights

01

Message from the President

02

Special Feature

03

Highlight

05

Topics06

Consolidated Performance

07

Corporate Profile & Stock Information

10

BUSINESS HIGHLIGHTS 2014

SBS Group meets the various logistics needs withthe utmost quality.
FY2014 Forecast
Net Sales

1st Half of FY 2014

¥ 137.0 billion

Operating Income¥ 4.8 billion

Ordinary Income¥ 4.4 billion

Net Income¥ 3.5 billion(Millions of yen)

(Forecast values were revised on July 30, 2014.)

PlannedActuralNet Sales

63,00065,777

Operating Income

1,100

1,480

Ordinary Income

900

1,373

Net Income

500

1,761

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 Group

which has the logistic
Threefunctions in all
strategies
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 2014

MESSAGE FROM THE PRESIDENT

Looking back at the firsthalf of the year,
the concerted sales
efforts of the wholeGroup led to a
successful performance.

President : Masahiko Kamata

In the first half of the year, despite an upward

tion to its forwarding business, entered in thetrend thanks to the impact of Abenomics in thetransportation business within the same coun-

economy, in the logistics industry, against atry. Moreover, we have completed the first

backdrop of sharply rising fuel costs and aggra-

logistics facility to be owned by the Groupvated shortage of drivers, severe conditions

overseas, in Thailand, thus creating a structure

remained.

which enables us to accelerate our businessIn such a situation, the SBS Group made a con-

expansion in the ASEAN region.

certed effort to actively expand the businessIn the other businesses, the first stage of the

toward the goals of the medium-term manage-

plan with the Solar Power Generation Businessment plan "SBS Growth 2017" launched in thishas been completed and the output scaleterm.

reached 5.4 MW. In the second half, according

In the logistics business, which is the mainstay

to the objectives set forth in the second stage

business of the Group, we strived to strengthenof the plan, we intend to continue to further

the proposal sales in order to significantly

develop this business, launching new power

expand the number of new orders, while dealing

stations with the output scale of 2MW. The

with the rush of demand before the consump-

Group also offered for sale an office complex

tion tax hike this March. As a result, followed

in its possession as a part of the measures toby the 3PL order from major meat packing

exchange its assets portfolio. The funds col-companies, the Group received consecutive

lected from this sale will be reinvested inorders from major department stores for theirmergers, acquisitions, and development of

mail-order service business and door-to-door

facilities.

food delivery center operations in the Kanto
and Kansai areas.

Aiming at a steady growth in the future, the
SBS Group shall improve its operating efficiency

Regarding overseas development, the Groupand the quality of services we offer even further,merged two of its affiliated companies in Singa-

striving to take its competitiveness to yet higher

pore, purchased a local logistics company en-levels. And I sincerely hope that you will con-

gaged in container transportation, and, in addi-

tinue to support the SBS Group in the future.

SBS Business Report 20142

SPECIAL FEATURE

Satisfactory progress with the expansionof the SBS Group's business overseas
2014

January

February

March

April

May

A logistics company purchased in Singapore
SLHS purchased all of the shares of GIM GUAN FREIGHT PTE. LTD.
(hereinafter, "GGF"), a logistics company engaged in containertransportation in the country, entering into actual transportation
business.

Improving the Group's bases in the ASEAN
In order to accelerate the expansion of its logistics business in the ASEAN, in January, 2014, the SBSGroup merged two of its affiliated companies in Singapore, namely, the SBS Logistics RHQ Pte. Ltd.
and the SBS Atlas Logistics Holdings Pte. Ltd., naming the resultant company SBS Logistics Holdings
Singapore Pte. Ltd. (hereinafter, "SLHS")
The Group also changed company names of three affiliated companies in Malaysia, Vietnam, andThailand.

[List of aﬃliated companies overseas] (as of June 2014)
TL LOGICOM (Shanghai) Co., Ltd.

Shanghai, China

Shanghai Qingyaliu Plastic Processing Co., Ltd.

Shanghai, China

SBS Logistics Holdings Singapore Pte. Ltd.

SBS
Holdings

SBS Logistics Holdings Hong Kong Ltd.

Hong Kong, China

SBS Logistics Hong Kong Ltd.

Hong Kong, China

SBS Total Logistics Malaysia Sdn. Bhd.

Malaysia

SBS Logistics Vietnam Co., Ltd.

Vietnam

SBS Logistics Thailand Co., Ltd.

ThailandTAS Logistics Co., Ltd.(Development and management of logistics facilities)

ThailandAtlas Logistics Pvt Ltd.

3 SBS Business Report 2014

SingaporeIndia

SPECIAL FEATURE

June

Aﬃliated company in Singapore merged another aﬃliated company
SLHS merged GGF and shall promote further expansion of the transportation operating
department, making improvements in quality and efficiency of services offered.

First logistics facility to be owned by the Group overseas completed in Thailand
First stage of construction work launched near the Laem Chabang Port, which is the largest international
harbor in the country, in December, 2013 on the first logistics facility to be owned by the Group overseas
has been completed in the middle of June, and No. 1 Warehouse and an office building launched
operations from the middle of July. The second stage of construction was completed late in August, with
No. 2 Warehouse and a dormitory building due to open from the middle of September. In the future, theGroup plans to build the No. 3 Warehouse aiming to complete the construction by autumn 2015. Finalplans are for the logistics facility to reach the total floor area of 30,000sqm.
* The facility is developed by TAS Logistics Co., Ltd., a joint venture established by the Group with a partner company inThailand, Trans Air Cargo Co., Ltd.

[Overview of the facility]
Oﬃcial name

TAS LOGISTICS WAREHOUSE

Location

Sri Racha, Chonburi Province, Thailand

Site area

63,840sqm

Overview ofbuildings

No. 1 Warehouse: Single story, 9,788sqm; No. 2 Warehouse: Single story 9,638sqm;
No. 3 Warehouse: Single story 9,638sqm (planned)

Access25km from the port of Laem Chabang, 100km from Suvarnabhumi International Airport,
125km from central Bangkok

China

ShanghaiHong Kong

India

Bangalore
Thailand
ASEAN

Vietnam

Malaysia
Singapore

SBS Business Report 2014

4

HIGHLIGHT

Promoting Solar Power Generation BusinessIn 2013, the SBS Group ventured into the solar power generation
business for the purpose of effective use of the Group's assets andexpansion of supply of renewable energy. At the end of March, the last
power generation facility to be established according to the first stage ofthe plan was launched with generating capacity reaching 5.4 MW.
Moreover, in the second stage of the plan, the Group intends to add a

Shibayama Solar Power Plant

1.8 MW power generation facility, and the generating capacity of theGroup in total at the time of completion of the second stage of the planis expected to reach 7.2 MW, which will mean that among logistics
enterprises, ours will have the largest scale of power generation.
The SBS Group shall continue installing solar power generationequipment in the logistics facilities established by the Group in the future,

Noda Yoshiharu Logistics Center

making strong efforts to use the facilities most effectively and expand the
supply of clean energy.
Already operating facilities (ﬁrst stage of the plan)
Facilities to be equipped with solar power generation equipment(second stage of the plan)

Takasaki Oﬃce
Chikuma Logistics Center
Kawagoe Logistics CenterWest Japan Logistics Center

Yoshikawa Branch

Shibayama Solar Power Plant
Noda Yoshiharu Logistics Center
Kimitsu Branch
Toyohashi
Logistics Center

Shibayama No. 2 Solar Power Plant

OdawaraBranch■ First stage of the plan
Already
operatingfacilities

Shibayama
Solar Power
Plant

Noda
Yoshiharu
Logistics
CenterKawagoe
Logistics
CenterChikuma
Logistics
CenterWest Japan
Logistics
CenterTotal ofalready
operatingfacilities

Generating
capacity (KW)

Generating
capacityin the 2014
fiscal year (KW)

2,826

514

830

604

617

5,391

7,200

■ Second stage of the plan (Scheduled for development in the second half of 2014)
Facilities to beequipped with solar
power generationequipment

Kimitsu
BranchYoshikawa
BranchTakasaki
OfficeShibayamaNo. 2 Solar
Power Plant

Toyohashi
Logistics
CenterOdawaraBranchTotal of Facilities tobe equippedwith solar power
generation equipment

Generating
capacity (KW)

270

230

160

710

220

210

1,800

5 SBS Business Report 2014

TOPICS

Percentage of oﬃces with G markqualiﬁcation increases to 78%

January(SBS Group)

Established "tama", a homedelivery service Website oﬀering
safe cat foodMay

(Marketing Partner)

In the assessment for businessyear 2013 conducted by theJapan Trucking Association(public interest incorporated
association) in December 2013,16 new offices of the Group
were certified with the G marksignifying they all had been applying excellent safety
standards in their operations. Thereby, the number
of offices certified with G mark has reached 97,
amounting to 78% of all offices of the Group.

Marketing Partner,
a company that isdeveloping an
Internet-order-sales
business, establishedan Internet-order-sales site "tama" specializing inpremium cat food for people conscious about thehealth of their pet cats, and the site launchedfull-scale operation from May.

Launch of home delivery service
center work for Takashimaya

Kawaguchi Oﬃce established asa new foodstuﬀs logistics center

March(SBS Zentsu)* The address of the site is http://www.tamaone.jp/.

May(SBS Zentsu)

SBS Zentsu, which is engaged
in general foodstuffs logistics
and delivery of individuallypurchased foodstuffs,
received an order for control
over incoming and outgoingshipments of food andsweets for a home delivery service business newly
launched by Takashimaya, one of the largest
department store chains in Japan.
A center was established in Urayasu and operations
launched there in February.

In connection with a businessexpansion, SBS Zentsu
established Kawaguchi Office
as a new logistics center andtransferred work to it from the
Urawa Office.
The new office boasts double
the total floor area, double the size of refrigerated
space, and six times the space of the freezers ascompared to the old one, adding up to a significant
expansion of scale.
In the future, SBS Zentsu will utilize the office as a joint
distribution base to expand the business further.

Saf ety Safety measures conducted by the

Safe driving training session held
for the ﬁrst time in the Tohoku
district

Group introduced in a textbook
used in a training course for people
engaged in traﬃc control

April(SBS Flec)

Safety measures conducted by SBS
Flec were used by National Agency
for Automotive Safety & Victims' Aid(NASVA, independent administrative
agency) in a textbook the agency
issues to be used in public training
courses for people engaged in traffic
control as an example of measures
to be taken to prevent accidents, etc.
The example is currently used in the textbook for 2014,
but the agency plans to use it for two more years.

June(SBS Group)

From April, 2013, the Grouphas been conducting original
safe driving training sessions toreconfirm such basic driving
skills of the drivers as handlingof the vehicles and confirmationof safety conditions, as well as
to analyze and evaluate their driving skills.
This year, in order to make this initiative available tothe drivers working in the Tohoku district, training
sessions were also held in Sendai.
SBS Business Report 2014

6

CONSOLIDATED FINANCIAL PERFORMANCE

In connection with a considerable increase in the amount of shipments due to a rush of demand before
the increase of consumption tax, the Logistics Business and the Human Resources Business increased theoperations resulting in an increase of net sales as compared with the corresponding period of last year.
And although there was an increase in costs for fuel and chartered vehicles, due to an increase in
proﬁts from net sales, both operating and ordinary income increased.
Moreover, as with a sale of an oﬃce complex and some other properties the Group posted a gain on
sales of noncurrent assets in the extraordinary income, quarterly net income showed a considerable
increase.

■ Net Sales■ Operating Income
1st Half

1st Half

YOY
Change(Millions of yen)
150,000

120,000

Full Year

119,824 121,148

127,935

132,205

6.4％
UP

60,00055,91858,022

62,84661,805

2,000

2010

2011

2012

2013

1st Half

157.0％

4,291

UP

3,801

4,000

3,000

2,767
1,653

1,677

1,000

534

290

7 SBS Business Report 2014

2011

1,373

2012

2013

703

519
2010

2011

2012

2013

1st Half

2014

Full Year

YOY
Change4,000

1,075.3％
UP

3,000

2,140

2,522
1,647

1,571

1,761

829

1,000

149

（476）

0
2014

1,480

1,332

1,367
1,422

UP

2,177

(Millions of yen)

2,000

2,161

110.3％

2,901■ Net Income

Full Year

YOY
Change

5,000

2010

0

2014

(Millions of yen)

0

4,141

4,000

1,000

■ Ordinary Income

2,000

4,262

65,77730,0000

YOY
Change(Millions of yen)
5,000

3,000

90,000

Full Year

2010

2011

2012

2013

2014

CONSOLIDATED FINANCIAL PERFORMANCE■ Sales by Segment(Millions of yen)
1st Half of FY2013

1st Half of FY2014

Operating Net Sales Operating
Net Sales
IncomeIncomeLogistics

61,330605

57,884（77）

Property
Management

1,199

612

1,350

694

Other

3,477

171

2,857

31

（229）

91

（287）

54

61,805703

Adjustment
Total

65,777

1,480

Logistics
92.9％

Logistics Support
Business 7.1％
Others 5.3％
Property Management 1.8％

● Logistics Business :In addition to the launch of new food-related 3PL businesses and new center businesses, the results were alsofavorably influenced by a rush of demand before the increase of consumption tax centering on consumer
goods, beverages, and everyday sundries, all resulting in an increase of net sales.
With an increase in net sales, the Group posted an increase in profits, moving in the area of operating income
from operating loss posted in the corresponding period of last year into the black.
● Logistics Support Business :In the property management business, as a part of real estate facilities for lease were transferred in the last
fiscal year, there was a decrease both in sales and income.
In the other businesses, on the other hand, there was an increase in both sales and profits due to good results
shown by the human resources business as well as the addition of the solar power generation business.

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

Total Shareholders' Equity■ Net Assets, Equity Ratio

Net Debt-to-Equity Ratio

Net Assets(Millions of yen)（Times）(Millions of yen)

60,0003.0

40,0002.5

30,00045,00037,28730,00022,587
15,0001.65

39,09038,12824,82827,372

10/12

38,592

28,67729,98022,616
2.0

11/12

12/12

1.37
13/12

1.29
14/06

（％）
35

25,06520,000

1.5

10,0001.0

027,750

26.2％
23.2％

1.57
1.39

0

39,215Equity Ratio

29,26526.7％

30,699

28.1％

30

25

24.5％
20

10/12

11/12

12/12

13/12

14/06

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 2014

8

DIVIDEND■ Dividends per Share
(yen)
40

30

Basic Policy regarding the Profit Distribution
40.0

SBS Group regards redistribution of proﬁts to our

40.0

shareholders as one of the primary tasks ofCommemorative Commemorative
dividend
dividend

30.0

30.0

¥10.0

management.

¥10.0

We endeavor to ensure stable redistribution of proﬁts
taking into account the business results achieved bycontinually improving solid management foundations

20

and raising the returns on equity.

14.0

For the year ended December 31, 2013, commemorating
our listing on the First Section of the Tokyo Stock

100Exchange. We added 10 yen to the common dividend of
30 yen per share and distributed the dividend of 40 yen.
2010

2011

2012

2013

We intended to pay a dividend of 40 yen per share for2014(Forecast)

the year ending December 31, 2014 also, but as theGroup conducted a 3-for-1 stock split, we intend to※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 commemorates theGroup's listing on the Second Section of the Tokyo Stock Exchange.
※The commemorative dividend distributed in 2013 commemorates theGroup's listing on the First Section of the Tokyo Stock Exchange.

distribute a dividend of 14 yen per share, which will
mean a further increase by 2 yen.

As a result of a 3-for-1 stock split: 14.0 yen per share
Compared with the previous-term(term ended December, 2013) 14.0x3=42.0 yen(Please refer to the reverse cover for details on the stock split.)

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

Net Sales¥ 137,000 million

YOYchange¥ 4,400 million

YOYchangeOrdinary
Income

3.6％
UP

15.8％

Operating
Income¥ 4,800 million

YOYchangeNet Income¥ 3,500 million

YOYchangeUP■ By Segment

15.9％
UP

122.8％
UP(Millions of yen)

Logistics

Property
Management

Other

Consolidation/
Corporate

Total

Net Sales

125,000

5,300

6,700

‑

137,000

YOY Change

+3.5％

-4.6％

+14.2％‑

3.6％

Operating Income

2,050

2,400

350

0

4,800

YOY Change+68.2％-5.9％+73.3％‑

15.9％

Operating Margin

1.6％

45.3％

5.2％

‑

3.5％

※Figures of the earnings forecast exclude the proceeds of internal sales between segments.
(Forecast values were revised on July 30, 2014.)

9 SBS Business Report 2014

CORPORATE PROFILE & STOCK INFORMATION■Corporate Proﬁle (As of June 30, 2014)■ Stock Information (As of June 30, 2014)

Company name

Number of shares authorized

154,705,200 shares

Number of shares issued

39,613,200 shares

SBS Holdings, Inc.

President

Masahiko Kamata

FoundedDecember 16, 1987

Paid-in Capital¥3,902.98 million

Net sales
Head oﬃce

Unit Stock System

Yes

Number of shareholders

3,404¥132.2 billion(for the year ended December 31, 2013)

4-1-3 Taihei, Sumida-ku, Tokyo 130-0012, Japan
Tel: +81-3-3829-2222(main)■Major Shareholders (As of June 30, 2014)
Shareholder Name

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

Masahiko Kamata

17,888,400

45.15

SBS Holdings Employee ShareOwnership Association

1,730,400

4.36

SBS Zentsu Co., Ltd.

Japan Trustee Services Bank, Ltd.
(Trust account)

1,576,300

3.97

SBS Sokuhai Co., Ltd.

SMBC Trust Bank Ltd.

1,200,000

3.02

SBS Staff Co., Ltd.

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

1,035,400

2.61

SBS Support Logi Co., Ltd.

The Chase Manhattan Bank, N. A.
London Secs Lending Omnibus Account1,004,400

2.53

SBS Finance Co., Ltd.

Junichi Ouchi

928,200

2.34

TOBU Properties, Co., Ltd.

826,800

2.08

State Street Bank and Trust
Company 505224

750,000

1.89

Hiroyuki Yoshioka

566,700

1.43

Fax: +81-3-3829-2822
Lines of Business Logistics, property management,
marketing, human resources, etc.
Major
consolidated
subsidiaries(including 1,100 less-than-one-unit shares)

SBS Logicom Co., Ltd.
SBS Flec Co., Ltd.

Atlas Logistics Private Limited

A-MAX Co., Ltd.
Marketing Partner Co., Ltd.

※Japan Trustee Services Bank, Ltd. (Trust account) is a re-trusted■ Board of Directors and Auditors(As of June 30, 2014)

employee share ownership association and the number of shares
its trust account holds includes 553,900 of our shares.
※Rate of stockholdings against number of shares authorized is

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
Masahito Takeda
Jiro Iwasaki

Tstsuya Sekimoto is an outside director.
The auditors Shigetaka Shomatsumoto, Masato Takeda andJiro Iwasaki are outside auditors.

shown with 3rd decimal place truncated.

■Distribution of Shares by Shareholder Type(As of June 30, 2014)
Number of share issued: 39,613,200 shares
Securities firms

Japanese Corporations
1,868,000 shares(4.72%)

771,915 shares(1.95%)

Non-Japanese Corporations

Treasury stock
345 shares(0.00%)

3,578,542 shares(9.03%)

Financial institutions
5,776,900 shares(14.58%)

Individuals and others
27,617,498 shares(69.72%)SBS Business Report 201410