((Interim))
For theFh Six
Si M
Monthsh Ended June 30, 2011 (Security Code: 2384)

Bu siness Hi g h lig h ts
SBS Business Report

SBS Group meets the various logistics needs withthe utmost quality.
Sales by Business Segment

Key Objectives and Strategies

Provide high value-added logistics andlogistics support service to meet the clientneeds

3PL Business Group having logistic
function in all directions

Other 5.6％

Property Management
2.1％(Human resources,Environment-related,Marketing)

M&A leverage, development &provision of logistic facilities
Logistics
93.2％

For the year ended December 31, 2011

2011 Forecast
Net Sales

Operating
IncomeDividend perShare¥120.0¥2.7¥3,000billion

billionFortify 3PL &expand
business base

Cultivatemarket bydeployment
in Asia

Balance ofinvestment &financeBusinessStrategyInternational
Strategy

Investment
Strategy

Building low cost operation
structure and group infrastructure
which can exhibit synergies(Performance forecasts have been revised at the first half results announcement.)

Logistics
BusinessGeneral
Logistics●3PL ●International Logistics ●Warehouse Logistics●Distributive Processing ●Special Transportation●Logistics Consulting Others

FoodLogistics●Three-Temperature Nationwide Logistics ●3PL
●Distributive Processing ●Home Delivery●Logistics Consulting Others

Specialized●Same-day Delivery ●3PLLogistics

Logistics SupportBusinessProperty
ManagementOtherOthers●Development and sale of logistic facilities

Others●Human resources ●Environment-related ●Marketing Others

Disclaimer: Forward-looking statements included in this report are based on information and assumptions consisting of uncertain
factors that may influence our performance available to the Company on the date of this report s publication. Due tovarious unforeseen circumstances, however, actual results may differ from such forecasts.

1

M essage from th e Pr e s ide nt
SBS Business Report

Steadily laying the basis for the
future growth of the Group,at all times placing highest priority
on the recovery and revival after
the Great East Japan Earthquake.
Representative Director and President: Masahiko Kamata

First and foremost I would like to express

a number of steps to lay the basis for themy deepest sympathies to all those who

future growth of the enterprise as ahave been aﬀected by the Great East

third-party logistics (3PL) business groupJapan Earthquake that shook the country

that possesses logistics functions in allon the 11th of March this year. Although

directions. ‒ One direction was mergers andthe situation is still quite severe, it is theacquisitions aiming at the reinforcement ofintention of the SBS Group to oﬀer all

3PL and international logistics functions,

possible assistance and support in thewhile another was creation of a low-costarea of logistics to help the revival.

operation system.

Many of our customers have been

It is expected that in the second halfaﬀected by the earthquake, and our Groupof the year the situation in domestic

itself sustained severe damages ‒ both

economy will be even more severe also due

physical and human. We have started

to the impact of the slowdown of thetackling the issues of recovery and revival

global economy, but all the members ofimmediately after the disaster, but its impact

our Group as one shall nevertheless tackle

was much greater than expected. Also, due

the issues of reinforcement of theto such factors as the rise of the fuel prices,

enterprise's foundations required forbusiness environment in ﬁrst half of thecontinuous growth, aiming to become theﬁscal year was very severe.

top enterprise of the logistics industry.

But even though the environment wasby no means mellow, we could still makeAs always, we truly appreciate yourcontinuing support for our activities.

2

Topics 1
SBS Business Report

Impact of the Great East Japan Earthquake and oureﬀorts to support the recovery
We would like to express our deepest sympathies to all those who have been affectedby the Great East Japan Earthquake.
And we are praying from the bottom of our hearts for the earliest possible revival.
Support activities conducted by the GroupSupporting the aﬀected areas by promptly transporting
relief goods and condolence money
Companies of the SBS Group have approached the issue of
supporting the recovery of the affected areas from the point of viewof the logistics, for example by transporting emergency assistancegoods. Such companies of the Group as TL LOGICOM Co., Ltd., NIHONKAMOTSU KYUSO Co., Ltd. and Zentsu Co., Ltd., promptly dispatcheda total of more than 400 large sized vehicles to five prefectures ofTohoku Region with such relief goods as polyethylene tanks, portablecooking stoves, blankets, and food. The whole group is supporting

Kamaishi

the relief efforts including physical support provided by SBS StaffCo., Ltd. Moreover, the company has contributed 10 million yen to be
used for revival of the affected areas, while a fund-raising campaign
carried out by the Group's employees of their own accord resulted in
the sum of over 8 million yen, which was alsoizee-srg icle
aL ehvsent as a contribution.

e-sizge
Lar hicleve●Main disaster relief measures conducted by SBS GroupCompany nameGoods transported

Number of vehiclesDestination

TL LOGICOM

Portable cooking stoves,blankets, food, etc.

About 270
large-size vehicles
About 150
large-size vehicles
About 4large-size vehicles

5 prefectures of theTohoku Region

NIHON KAMOTSU KYUSO Drinking water, food, etc.
ZentsuFood, etc.

SBS Logitem

500,000 masks

1large-size vehicles

Aomori, Iwate
Miyagi, Fukushima,
IbarakiTokyo Relief Goods
Collection Center※Transportation was started in the order listed from the day after the earthquake (March 12).

3IwanumaTopi cs 1
SBS Business Report

Impact of the disaster on the Group and the current state of recovery

Iwanuma Logistics Center reopened in July!
Our Group was affected by disaster in many ways, but the main damage
was inflicted on the Tohoku Region. Particularly devastating was thedamage at the Iwanuma Logistics Center of Foods Lec Co., Ltd. and theKamaishi Office of NIHON KAMOTSU KYUSO, where in addition to the lives
lost in the Tsunami, the buildings, the refrigeration facilities, etc. wereflooded and destroyed; vehicles were swept away, resulting in a situation
rendering business activities absolutely impossible.
The SBS Group started recovery activities on the next day bydispatching survey/support units to the site, and the Iwanuma Logistics
Center was reopened on the 1st of July approximately four months after
the disaster. This center shall strive to deliver a stable supply of food,serving as a logistics center for general and low-temperature foods for
the Southern Tohoku Area. Moreover, it shall contribute to the earliest
possible revival of the affected area by maintaining logistics function andalso by conducting management based on the idea of harmonious
coexistence with the localities, for example creating opportunities foremployment in the region.

Iwanuma Logistics Center
just after the disaster

Reopened in July4

Topi cs 2
SBS Business Report

NIPPON RECORD CENTER Company,Limited. becomes a member ofthe Groupthey are idea-based articles of a wide

On April 1, TL LOGICOM Co., Ltd., which

accurate logistics service at low costs

is a member of our Group, acquired thewith its highly efficient operation control

shares (resulting in 98.5% of ownership)

and about 700 skilled part-time staffof NIPPON RECORD CENTER Company,members.

variety often produced in small lots. NRC
has found a solution offering highly

Limited. (hereinafter "NRC") which at theBy having the company as a member

time was a subsidiary of JVC KENWOOD

of the SBS Group, we can not only newly

Group engaged in logistics, making theacquire 3PL※ work by offering a full package

company its subsidiary.

of logistics services related to music andThe main clients of NRC are such

video mediums, but we can also tap into

companies as Victor Entertainment andthe new business category of dealing

T e i c h i k u Entertainment, and it is awith diverse products in small lots, suchcompany engaged i n l o g i s t i c s a n d

as mail orders. Moreover, by having thespecializing in packaged software incompany develop in our Group t h esuch areas as music, movies, and games.

know-how of low-cost operation it has

It has already established its reputation

cultivated in the long period, we can

as a company with highly precise andalso expect synergy in various areas,reliable logistics technology with a wide

contributing to the quality and efficiency

service range covering everything fromof all the companies of our Group.

small cargo delivery such as shipping
as little as one CD to CD shops all acrossthe country to country-wide simultaneousdelivery on appointed date of newly
released records.

Company's know-how yielding
synergy in various areas
Packaged software CDs or DVDs areproducts very difficult to manage since
Tidily lined up automatic sorters (in a warehouse)※3PL (third - party logistics): receiving orders for a full package of logistics services

5Topi cs 2
SBS Business Report■ Profile of NIPPON RECORD CENTER Company, Limited.
Representative Director

Koichi KatanoEstablishment

1978

Parent company

TL LOGICOM Co., Ltd.(ownership: 98.5%)

Capital

450 million yen

Working force

approximately 900

Description of business

The company was established as a logistics enterprise
specializing in storage, management, and distributionof music and image software, and receives orders for a
full package of logistics services from a number ofmajor companies dealing in music and movies. It boasts
an extensive know-how and track record in the area oflogistics of diversified products produced in small lots,
possessing a framework enabling joint acceptance oforders for and delivery of products of multiple
enterprises and having an excellent information system
to track down the package in real time.
http://www.nrc-jpn.net

ＵＲＬ

Managing about 200,000 CDs,DVDs, etc.
Head office and Kamiochiai DC

Packed-up products are sorted byautomatic sorters by area and shipped.

6

Consolidated Financial Statements
SBS Business Report■ Net Sales■ Operating Income
1st Half

Full Year

147,097

8,000

139,405

7,000

115,710 119,824

120,000

6,794

6,000
5,000

90,00066,264 71,467
60,000

4,262

4,000

58,145 55,918 58,022

3,325

3,000
2,000

30,0001,3061,690

2,888

1,183

1,677

1,000

519

00
2007

2008

2009

2010

2007

2011

■ Ordinary Income

2008

2009

2010

2011

■ Net Income
1st Half

Full Year

1st Half

Full Year(Millions of yen)

(Millions of yen)

8,000

Full Year(Millions of yen)

(Millions of yen)
150,000

1st Half

7,901

5,000

7,000
4,000

4,054

6,000
5,000

3,995

4,000

3,748

3,000

4,291

1,988

2,000
3,000
2,000

1,925

2,161

2,138

1,000

1,604

1,000

290

718

960

1,140

2,140

1,367(476)

(28)

00
2007

72008

2009

2010

2011

2007

2008

2009

2010

2011

Consolidated Financial Statements
SBS Business Report■ Sales by Segment■ Cash Flows Status［〜FY2010］

Logistics Business

Logistics Support Business［FY2011〜］

Logistics Business

Logistics Support Business(Millions of yen)
120,000(Millions of yen)

116,346 114,522
104,801 107,655
20,000100,000

Cash Inflow

Balance

Cash Outflow

3,059
Investing
Activities

7,939
Operating
Activities

80,00060,00040,00053,92230,75015,00024,883
10,000

09/12

10/12

4,099

0
07/12

08/12

11/06

(Millions of yen)

1st Half of FY2011
Logistics

Property
Management

OtherNet Sales

53,922

1,192

2,907

Operating
Income81

Adjustment

ー5,000Total58,022

7,382（14,071）
Financing
Activities△ 219

13（2,613）
Investing
Activities

0FY2010644

2,828
Financing
Activities 9,794

1st Half of FY2011

Balance at
1H - term end

12,168

Balance at
Bigginning of Term

10,909Balance at
Bigginning of Term

20,0002,196Operating
Activities

10,455

Balance at
1H-term
end

519

Note: Net Sales are defined as sales to outside customers.

Changes in Classification of Segment●We revised the segment classification from five to three in terms of management and business scale fromthe current fiscal year.
[Past][New]

LogisticsLogistics
Marketing
HumanResources

Property
Management

Truck transportation, operations of logistic center, warehousing,
distributive processing, forwarding, international logistics, same-day
delivery for corporate client, low temperature logistics, home deliveries
etc. and 3PL in which above logistic services are collectively provided

Lease of logistics facilities as office, residence and warehouse;
development and sale of logistic facilities

Financial
Other

Other

Human resources, environment-related, and marketing

8Consolidated Financial Statements
SBS Business Report■ Net Income per Share■ Net Assets / Equity Ratio

1st Half(Yen)

Full Year

35,000Net Assets（％）

25,00022,616

31,07230,00020,00019,43425,00020,00016,273Equity Ratio(Millions of yen)

21,81020,23840

18,59815,00017,51415,00010,000
5,000

5,503

7,712

10,0009,333 11,194

23.2％ 21.8％
18.1％ 16.8％

18.6％

Dec.
2007

Dec.
2009

5,000(3,883)

(223)

000
2007

2008

2009

2010

2011

Dec.
2008

Dec.
2010

Jun.
2011

Basic Policies regarding the Profit Distribution■ Dividend per Share

Basic Policies regarding the Profit Distribution
SBS Group regards the return of proﬁts to(Yen)

all shareholders to be one of its most

3,500

3,000

3,000
2,500

3,000

important business policies. Based on ourgroup s business achievement and ﬁnancial

2,300

2,300

situations, we will address for the stable

2,300

shareholder return through our eﬀorts to

2,000

further strengthen our management base
1,500

and to increase in return on equity. We areexpecting our dividend to remain the same

1,000

as the previous ﬁscal year at 3,000 yen per

500

share for the year ending December 2011.
02007

920200820092010

2011（Forecast）

Corporate Profile & Stock Information
SBS Business ReportCorporate ProﬁleCompany name(As of June 30, 2011)

SBS Holdings, Inc.

Representative
director and president

Masahiko Kamata

FoundedDecember 16, 1987

Paid-in Capital¥3,833.93 million

Net sales¥119.8 billion (for the year ended December 31, 2010)

Head oﬃce

4-1-3 Taihei, Sumida-ku, Tokyo 130-0012, Japan
Tel: +81-3-3829-2222(main)
Fax: +81-3-3829-2822

Lines of Business

Logistics, property management, humanresources, etc.

No. of Employee

12,233 (4,299 of regular, consolidated staff)

Major consolidated
subsidiaries

TL LOGICOM Co., Ltd.

Stock Information(As of June 30, 2011)

Number of shares authorized

515,684 shares

Number of shares issued

130,684 shares

Share trading unit

None

Number of shareholders

3,712

Major Shareholders(As of June 30, 2011)

Shareholder Name

Number ofshares held
(shares)

Ratio ofshare held(%)

Masahiko Kamata

64,128

50.16

Japan Trustee Services Bank, Ltd. (Trust account)

6,803

5.32

Hiroshi Date

4,348

3.40

SBS Holdings Employee Share Ownership
Association

4,012

3.13

Sogo Butsuryu System Co., Ltd.

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

3,348

2.61

SBS Finance Co., Ltd.

Junichi Ouchi

3,094

2.42

A-MAX Co., Ltd.

The Master Trust Bank of Japan, Ltd.

2,066

1.61

Marketing Partner Co., Ltd.

Mellon Bank, N.A. Treaty Clients Omnibus

2,000

1.56

Forward Co., Ltd.

Hiroyuki Yoshioka

1,889

1.47

PAM, Co., Ltd.

3E Corporation

1,560

1.22

Foods Lec Co., Ltd.
Zentsu Co., Ltd.
SBS Logitem Co., Ltd.
SBS Staﬀ Co., Ltd.

The ratio of share held are calculated based on the number ofshares excluding treasury shares. Treasury shares does not include
4,862 shares held by our employee share ownership association.

Board of Directors and Auditors(As of June 30, 2011)

Representative director and president

Masahiko Kamata

Managing director

Kenichi Iriyama

Directors

Fumiaki Miyasaka
Shin-ichiro Watanabe

Distribution of Shares by Shareholder Type(As of June 30, 2011)

Full-time auditor

Tamio Wakabayashi

Auditors

Shigetaka Shomatsumoto

Japanese Corporations

Masato Takeda

4,281shares（3.28％）Jiro Iwasaki
The auditors Shigetaka Shomatsumoto, Masato Takeda and Jiro Iwasaki
are the external auditors.

Treasury stock
2,856shares（2.19％）

Non-Japanese Corporation
7,636shares（5.84％）

Securities ﬁrms
962shares（0.74％）

Financial institutions
12,085shares（9.25％）

Individuals and others
102,864shares（78.71％）10