SBS Business Report
For the year Ended December 31, 2019（Security Code:2384）

Words from the President ・・・・・・・・・・・・・・・・・・・・ 1
Consolidated Financial Results ・・・・・・・・・・・・ 1
Topics ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 2
Feature ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 3
Corporate Profile & Stock Information ・・・ 5

Words from the President

Net sales and operating income
both reached record highs
for the second consecutive year
due to the effect of mergers andacquisitions and sustained
growth in existing businesses.
Masahiko Kamata , President and Representative Director
Results for the current fiscal year（FY2019）

Group will continue its unique business model that has grown

In the business environment surrounding the SBS Groupby balancing logistics, M&As, and the development of logistics

during the fiscal year under review, the demand for advanced

facilities, while at the same time increasing its competitivenesslogistics functions and delivery services increased due to theby aggressively investing in Information and Logistics

expansion of the e-commerce market, while the shortage oftechnologies and accelerating collaboration with otherdrivers, warehouse workers, and other personnel became moreindustries, for being the top tier of the logistics industry.

serious. In this environment, the Group opened new warehouses

For the fiscal year ending December 2020, we plan toin Nanko (Osaka City), Odaka (Nagoya City), Fukuoka (Fukuoka

increase sales and profits in all segments, and work together toCity), and other locations, and expanded the support system forachieve net sales of 265,000 million yen, operating income ofdelivery drivers to start their own businesses. Through these

11,200 million yen, ordinary income of 11,000 million yen, and net

and other initiatives, we were able to capture robust customer

income attributable to owners of parent of 6,500 million yen.

demand in both 3PL and home delivery services. In addition,

Dividends

SBS RICOH LOGISTICS SYSTEM Co., Ltd., which joined ourAs a result, net sales increased 25.6% from the previous fiscal

Our company considers the return of profits to shareholders
is the one of its most important management policies, andyear to 255,548 million yen and operating income increased

its basic policy on profit distribution is to increase internal

23.5% from the previous fiscal year to 10,176 million yen, bothreserves to build a stronger management base, whileof which were record highs for two consecutive years.

striving to maintain continuous dividend payments andGroup in August 2018, contributed to the full-year performance.

increase dividend in line with business performance. For

Future Business Activities

the fiscal year under review, we have increased our dividend

In the future, we expect the business model of the logistics
business to change structurally as the EC market further

by 2 yen to 30 yen per share from the dividend forecast,

expands and technological innovation utilizing LT (Logistics

existing logistics business. We highly appreciate yourTechnology) progresses rapidly. In these circumstances, ourcontinued support.

due to the large effect of M&As and solid growth in our

Consolidated Results for the fiscal year under review■ Net sales■ Operating income

255,548

250,000

8,000

203,516200,000

149,054

10,000Up

33.7％
10,172（Million yen）

10,000

8,000

7,832

6,079

6,000

5,111
4,446

4,409

6,000

2017

2018

3,000

50,0002016（Million yen）

37.9％

4,000

4,000

4,000

2,000

2,000

2,000

100,000

0

Up

5,000

7,607
6,475

6,229

6,000

152,870

8,240

7,514

YoY

YoY

23.5％
10,176（Million yen）

300,000

150,000

Up

25.6％（Million yen）

income attributable to■ Net
owners of parent

YoY

YoY
Up

■ Ordinary income

2017

2018

2019

0

2016

2017

2018

2019

1

0

1,000

2016

2017

2018

2019

0

2016

2019

T o pics
M
a
r
c
h

Completed Nanko Distribution
Center

A
u
g
u
s
t

SBS Logicom

The SBS Group's first self-developed distribution center inthe Kansai region was completed in Suminoe-ku, Osaka. With a
total floor area of 18,500
tsubo（approx. 61,157㎡）,
it is equipped with atemperature and humidity
control system and highly
functional equipment suchas solar power generator
and LED lighting.

M
a
r
c
h

Received the High Grade Agent,
the highest level certiﬁcation

OS
c e
t p
o t
b e
em
r b
e
r
/

SBS Finance

N
o
v
e
m
b
e
r

SBS Group

In order to improve driver skills and recruit new drivers, Anesaki
Driving School（left in the photo）and Keiyo Driving School（right in the photo）have joined the SBS Group. Both Schools
begin an activity in January,2020 as SBS driving school.

Net D/E ratio (right axis)
Net interest-bearing debt

shareholders' equity（Million yen）
60,00056,52847,18545,00044,943

31,97035,74753,98744,52739,322

15,000

0

1.44
1.26

2016

2017

2018

（Times）
3.0

2019

Awarded the Eco-Driving Activity Contest
for Most Excellence and Excellence
SBS RICOH LOGISTICS SYSTEM Co., Ltd.

■ Net assets / Shareholders equity ratio
Net assets■ Changes in Dividends

Shareholders equity ratio（Million yen）
60,00054,077

（％）
60

（Yen）

45

30

30

20

40

33.0

48,1732.5

45,0002.0

30,00038,510

28.5％

26.6％

1.21

SBS RICOH LOGISTICS SYSTEM

In the Eco-Driving Activity Competition sponsored by the Foundation
for Traffic Ecology and Mobility, the Sako Sales Office won the
Most Excellence Award for the
first time in the 9th Challenge.
In addition to the Fukushima
Sales Office being selected as
the next winner of the ExcellenceAward, the SBS SAN-AI Logistics
East Japan, Tohoku Sales Office,and Miyagi Sales Office werealso awarded certificates forexcellent eco-driving activities.

34,53330,000

1.48

Net D/E ratio

Opened distribution centers inFukuoka and Nagoya

The Distribution Center Fukuoka（Higashi-ku, Fukuoka/right in thephoto）opened in September provides
trade services with Asian countries.
The Distribution Center Nagoya
Odaka（Midori Ward, Nagoya/leftin the photo）opened in Octoberconducts 3PL and last-mile delivery
operations. SBS RICOH LOGISTICS
SYSTEM will aggressively expand
its warehouse area.

Two driving schools joined thegroup■ Net interest-bearing debt/Shareholders' equity/

SBS RICOH LOGISTICS SYSTEM/SBS Logicom

A joint exhibition under the theme of Group synergies to makelogistics more advanced and efficient ! We introduced the eighttypes of logistics services inwhich the two companies
excel. We appealed the SBSGroup's problem-solving
capabilities, which havebeen enhanced with theGroup's expansion.

SBS Finance, which engages in joint purchasing of fuel and tires
and sales of various typesof insurance, has received
the highest rank in theinsurance agent businessrating of Mitsui Sumitomo
Insurance in recognition ofits management, sales,
human resources, andoperational capabilities.

J
u
n
e

Exhibited at the Logistics
Solution Fair with two companies

1.5

15,000

1.0

0＊Net interest-bearing debt = long-term and short-term loans+ bonds - cash and cash equivalents＊Net D/E ratio = Net interest-bearing debt / Shareholders' equity

23.1％

2016

2017

2

2018

25.1％

2019

15

10

0

0

16.0

21.0

30th anniversarycommemorative
22.0
dividend

30.0

3.0
17.0

18.0

2016

2017

2018

2019

Feature

SBS Group's home delivery
business is expanding rapidly withdiverse work styles of drivers!

A pioneer in light freight delivery, SBS Sokuhai Support Co., Ltd.
The SBS Group is a comprehensive logistics company that responds to all kinds of logistics needs, including the development oflogistics facilities as well as transportation and delivery services in a variety of fields, such as 3PL business, three temperature zones,
precision equipment, and railways. Since the establishment in 1987, the SBS Group began with same-day delivery named SBS
Sokuhai Support (formerly Kanto Sokuhai), which offered a previously unheard-of service of delivering small parcels and commercial
cargo that came and went between many stores and businesses in Tokyo and three prefectures on the same day it was picked up.
With more than 30 years of accumulated know-how in delivering with light vehicles operated in urban areas, includingcommercial areas, office districts, and densely populated areas lined with residential complexes, SBS Sokuhai Support has
become a leader in the SBS Group's home delivery business.

Making a breakthrough with the "Last-mile Delivery" for online shopping, expanding the support
system for drivers to open their own businesses.
In recent years, with the expansion of the online shopping market, the demand for so-called homedelivery services to deliver products to individuals' homes and offices has been growing rapidly, and
SBS Sokuhai Support began delivering products of online supermarkets in 2008, and began
full-fledged development of its EC home delivery services by accepting a commission from major
global online shopping sites in 2015, and currently has about 1,800 light vehicles in operation.
At the SBS Group, where diversity in human resources is a source of competitiveness, wehave achieved a high retention rate for our drivers by flexibly responding to the work styles
desired by each one of them. The ability to quickly train well-trained managers and drivers
helps to expand the area.

SBS Group to expand nationwide by leveraging the comprehensive capabilities!
At present, the SBS Group has also started providing home delivery services at
SBS RICOH LOGISTICS SYSTEM, SBS Logicom, SBS Flec, and SBS Zentsu
and is horizontally deploying the home delivery in the areas where each company
is strong with using know-how and network information possessed by SBS
Sokuhai Support.

Premises before delivery,
where is filled with afeeling of tension

Start-up Partner

Full-time driver

Operation Supervisor

F Networks Corporation

Sokuhai Division Tokyo Head OfficePartner Business Support Division

Ryo Fuchigami,

Yuki Kinoshita,

Hiroyuki Omiya,

Representative Director

LeaderComing Tokyo from Fukuoka,
I started my own business asa delivery driver. Becoming a partner with SBS
Sokuhai Support, we could expand our businesseven without funds by utilizing an extensive
support system such as vehicle leasing. As aresult, more than 30 drivers were able to play
active roles in 2 and a half years. In the future, I
would like to develop a system that can solve
driver problems and customer inconveniences. I
aim to provide services that delight everyone bylistening to the concerns of drivers on a daily
basis while driving by myself.

After joining the company in2016 and gaining experience
as a driver, I became the leader of the Chuo
Ward in 2019 and became involved insupporting the site by training new drivers andhandling inquiries. The most rewarding part of
the job is hearing the words, "Thank you". In
training our drivers, I respect the individualityof each of them, and I want to improve thequality of our deliveries through communication
so that they can work with a positive attitude,
which will lead to a positive evaluation fromour customers.

3

Manager

I am in charge of supporting
those who want to open adriver's business from the interview to thestart-up phase, as well as management andoperation. Having been involved in humanresource training for a long time in myprevious job, I try to assess the quality andquantity of work and assign the right person to
the right place, taking into account the growthstage and personality of each driver. We
provide the detailed support system that fully
draws out the individuality and abilities ofeach person and makes them feel "glad to bea partner of SBS".

Social Contribution of the SBS Group
Contributing to solving social issues through our business
The SBS Group is engaged in a variety of social contribution activities, including cross-group initiatives led by the CSR Promotion
Department of SBS Holdings, as well as each company's own initiatives. Here, we focus on our social contribution with the themeof logistics at its core.

Support for food banks through the provision of resources from the SBS GroupThe SBS Group began supporting food banks last year. A food bank is an activity or organization that collects from corporations andother organizations food that has an expiration date but cannot be sold for various reasons and distributes it to people in need(person in distress). We are supporting Second Harvest Japan (2HJ), the largest food bank in Japan, based in Asakusabashi, Tokyo. We
were looking for ways to contribute to society through logistics, and 2HJ's needs
for logistics support coincided, leading to theconclusion of this support agreement. The firstisto provide temporary transportation of goods
Food
Food Importers, Restaurants, Corporation
manufacturers
Wholesalar
Retailers
between food donors and 2HJ sites, and theDonationsecond is to provide advice and recommendations on warehouse management andvehicle operation. In the case of temporary goods transportation, 2HJ usually uses
its own vehicles to pick up donated foodstuffs (at the request of manufacturers,etc.), but when there is no available vehicle or driver (all volunteers), or when there
Food banks
is no way to secure a vehicle or manpower, an SBS vehicle can be used as analternative transportation service. The process of implementing this support is（1）2HJ requests support for SBS Holdings CSR Promotion Department（2）The CSR Promotion Department will search for an empty vehicle for thedesired pickup date and time.
（3）Request for cooperation from the business office that owns available cars
（4）Collection and delivery on the designated date and timeChild and family
services,

NPO

Local publicorganization,

Local
food banks

HouseholdWelfare facilities Social welfareThis completes one round of support. On rare occasions, when the 2HJ warehousecouncils
is full, we receive requests to store supplies, and we respond to these requests asneeded. The cost of these support activities is borne by the CSR Promotion Department through a budget recorded as a social
contribution expense (appropriate fares are paid to sites), allowing sites to participate in these activities without placing a burden on
them. The number of times we have supported them to date is as follows:

The support results of food banks
Date

Logistics

Shipment（Section）

Support cooperates

2018/5/17

Transportation Cracker 209 cases（Misato city〜2HJ Saitamayashio)

SBS Logicom

2018/10/4

Transportation Brown rice 420kg（Ibaraki pref.〜2HJ Saitamayashio)

SBS Logicom

2018/10/18

Preservation

Avocado oil 8,064 bottles（Transportation from to the warehouse of 2HJ as needed.） SBS Zentsu

2018/11/15〜22 Transportation Instant noodles 780 boxes（Asahikawa city〜2HJ Saitamayashio）
2019/6/13

Transportation Chocolate 1.16t（Nishifunabashi〜2HJ Saitamayashio）

SBS Logicom
SBS Logicom＊We paied adequate fares to the companion

We attach a magnet sheet at the timeof the transportation.

The food bank support is a very meaningful initiative that not only contributes to strengthening the food lifeline for people in need,but also contributes to the reduction of food loss, which is a recent social problem. In the future, we will continue to work together
with 2HJ to create a society where people have a place they can rely on when there is an issue for foods.

The SBS Group's main social contribution activities
Category

Details of support

Reception andExhibition

Transportation support between companies wishing to donate food from Second
Harvest Japan (2HJ) and 2HJ's distribution centers. In addition, it provides
advice and suggestions on warehouse operations and vehicle operations.

Implemented
at the request of
2HJ.

Conservation Activities

Sponsoring and support activities (participation in forest conservation
activities and donations of collected items (used books, CDs and DVDs))

Collected items
are accepted at
any time.

Social Contribution Sales Meeting

We sell sweets and bread made at about 20 welfare workplaces in Sumida

2 to 3(Sumida Ward Council of Social Welfare)

welfare projects in Sumida Ward.

Collection of toothbrush(Toothbrush Collection Program)This initiative collects used toothbrushes and recycles them into new plastic
products, such as flowerpots. Aiming to reduce plastic waste and promote theuse of recycled resources

Collection of Randoseru(Japanese school bag) Randoseru for Life Collection

An initiative to send Randoseru* to children in Afghanistan who still lackeducational opportunities due to the civil war and other factors. It is known as anempowerment support to help girls in their schooling, especially because of theircultural lack of understanding of education for girls.

Support details and recipients
Food Bank Support

Partnership (Certified NPO Organization, Second
Harvest Japan)
with thesocial sector Support for Environmental(Public Interest Incorporated Foundation, OISCA)

times/year
Contributing (Sumida Ward Welfare Workplace Network《kai》) Ward (where people with disabilities are involved in the work).
at Olinas
to the local
Accepted
at any time
Proceeds (stamps are purchased by a stamp company) are used for social
community Donation of used stamps

Other(Collectionof useditems, etc.)(LION/TerraCycle Japan G.K.)(NPO, International Consulting Association)* In Afghanistan, Randoseru has become a symbol of education as support has spread.

4

CSR Promotion
Department

Accepted at any time
CSR Promotion
Department
Accepted at
any time
CSR Promotion
Department

CORPORATE PROFILE ＆STOCK INFORMATION■ Stock Information■ Corporate Profile
Company NameSBS Holdings, Inc.

Number of shares authorized

President

Masahiko Kamata

Number of shares issued

FoundedDecember 16, 1987

Paid-in Capital¥3,920.75 million

Net sales¥255.5 billion（consolidated）

39,718,200 shares
including 2,700 fractional shares
Yes（100 shares）

Unit Stock System

2,975

Number of shareholders*For the year ended December 31, 2019
Head Oﬃce

154,705,200 shares

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, marketing,■ Major Shareholders

human resources, etc.
Consolidated
Subsidiaries（January 1, 2020）

SBS RICOH LOGISTICS SYSTEM Co., Ltd.
SBS SAN-AI LOGISTICS HIGASHINIHON Co., Ltd.
SBS SAN-AI LOGISTICS KANTO Co., Ltd.
SBS SAN-AI LOGISTICS TOKYO Co., Ltd.
SBS SAN-AI LOGISTICS CHUBU Co., Ltd.
SBS SAN-AI LOGISTICS KANSAI Co., Ltd.
SBS SAN-AI LOGISTICS KYUSHU Co., Ltd.
RICOH LOGISTICS CORPORATION [USA]RICOH INTERNATIONAL LOGISTICS（HK）LTD.
RICOH INTERNATIONAL FREIGHT FORWARDING（SHENZHEN）CO., LTD.

SBS Logicom Co., Ltd.
SBS Freight Service Co., Ltd.
SBS Global Network Co, Ltd.
SBS Logicom Kanto Co., Ltd.

SBS Flec Co., Ltd.
SBS Flecnet Co., Ltd.

SBS Zentsu Co., Ltd.
SBS Sokuhai Support Co., Ltd.

SharesHeld

Ratio of
Shares Held（%）

14,388,400

36.22Japan Trustee Services Bank, Ltd.（trust account） 6,303,100

15.86

1,374,700

3.46

The Master Trust Bank of Japan, Ltd.（Trust Account） 1,317,700

3.31

SMBC TRUST BANK Designated Securities Trust

Shareholder
Masahiko Kamata
SBS Holdings Employee Share Ownership Association

1,200,000

3.02

TOBU Properties Co., Ltd.

954,800

2.40

Hiroshi Date

830,900

2.09

GOVERNMENT OF NORWAY

826,400

2.08

Junichi Ouchi

800,000

2.01

Masaru Wasami

365,000

0.91

Note: The ratio of shares held against number of shares issued
is truncated after the third decimal place.

SBS Staff Co., Ltd.
SBS Finance Co., Ltd.
SBS Asset Management Co., Ltd.
L-MAX Co., Ltd.

Marketing Partner Co., Ltd.
SBS Logistics Singapore Pte. Ltd.

■ Distribution of Shares by Shareholder Type
（Number of share issued：39,718,200 shares）■ Directors and Auditors （As of March 26, 2020）
President

Masahiko Kamata

Directors

Kenichi Iriyama

Directors

Masato Taiji

Directors

Katsuhisa Wakamatsu

Japanese corporations

Securities firms

1,837,700 shares（4.63％）

629,587 shares（1.59％）

Treasury stock

Non-Japanese corporations
4,640,072 shares（11.68％）

Directors

Hajime Kato

Financial institutions

Directors
Directors

Jiro Iwasaki
Tetsuya Sekimoto

10,916,200 shares（27.49％）Directors

Shuichi Hoshi

Audit & Supervisory Board Member
Yasuhiro Yamashita（full-time）
Audit & Supervisory Board Member
Koki Kakehashi（full-time）
Audit & Supervisory Board Member
Masahito Takeda
Audit & Supervisory Board Member
Masato Matsumoto
Notes: Jiro Iwasaki, Tetsuya Sekimoto and Shuichi Hoshi are outside
directors.
Masahito Takeda and Masato Matsumoto are outside audit &supervisory board members.

5

Individuals
andothers21,694,066
shares
（54.62％）575 shares（0.00％）