SBS Business Reportfor the Year Ended December 31, 2022
January 1, 2022 to December 31, 2022
Message from the President
Consolidated Business Results
Special Feature
Establishment of Sustainability Policy
SBS Next Stage 2025
News
Corporate Profile and Stock Information

Message from the President

We achieved historic new highs
for both net sales and operating income
in FY2022 for the fifth consecutive fiscal year.
Our next target is to increase 100 billion yen
in EC logistics-related net sales byaccelerating the introduction of LT
Masahiko Kamata, President and Representative Director
domestic logistics volumes of electronic equipment ande-commerce products.

In FY2022, economic activity in Japan and abroad
showed signs of gradual recovery, and full-fledged economic
revitalization is expected, despite the re-expansion of
COVID-19, sharp increases in resource and fuel prices, andrapid fluctuations in exchange rates. Against this backdrop,
while placing top priority on preventing infectious diseases
and ensuring the safety of our customers, business partners
and employees, the Group has worked to acquire 3PL, 4PL
businesses in our mainstay Logistics business andproactively respond to growing logistics demand, such as
e-commerce delivery.

Regarding net income attributable to owners of parent, aloss on fire related to the fire at our consolidated subsidiary's
logistics facilities（Ami Logistics Center No.2 of SBS FlecCo., Ltd.）was recorded as an extraordinary loss on June 30,
2022. Of the insurance proceeds received for noncurrent
assets that were burned down or damaged by the fire, theamount corresponding to the aforementioned loss on fire
was recorded as extraordinary income. As a result, net
income increased by 942 million yen（+8.7%）to 11,732
million yen. This was also a record high for the fourthconsecutive fiscal year.

In addition, in our growth-strategy centered on М&A, we
further expanded our group's service lineup by leveraging
synergies among SBS Group companies, and put in place astructure to strongly support social logistics needs. In FY2022,
net sales increased by 51,996 million yen（+12.9%）year on
year to 455,481 million yen, operating income increased by
1,137 million yen（+5.5%）to 21,844 million yen, and ordinary
income increased by 914 million yen（+4.5%）to 21,404
million yen. All net sales, operating income, and ordinary
income reached record highs for the fifth consecutive year.
This was due to the strong performance of the logistics
businesses of the Group companies in line with risingmarine and air freight rates in the overseas business, theimpact of foreign exchange rates, and the increase in

We sincerely apologize again for causing concern andinconvenience among all stakeholders starting withshareholders due to the above-mentioned fire at Ami
Logistics Center No.2, which fortunately, did not result inhuman suffering. The SBS Group will commit itself to theprevention of reoccurrence by implementing thoroughcountermeasures and continuing to be united as one inworking on the Group s business activities and growthstrateg y. We a re grateful for all the su p por t of ou r
shareholders and look forward to their continued support.

Consolidated Business Results for the Fiscal Year Under Review■

Net Sales/
Operating Income（Right Axis）
Net sales

Operating income（Million yen）

Ordinary Income/Net Income
Attributable to Owners of Parent
Ordinary income（Million yen）

500,000■

455,481

40,000Net income attributable toowners of parent（Million yen）

20,48920,00021,404250,000

125,000

0

30,00020,00020,706

10,00010,176 10,960

2019

2020

2021

2022

0

ROE

ROA

（％）

295.39271.67

（yen）
300

25.0

250

20.0

200

10,000

5,000

0

■

Shareholders Equity/
Total Assets/
Shareholders Equity Ratio（Right Axis）
Shareholders
equityShareholders
equity ratio

Total assets

296,898 （％）（Million yen）

300,000

254,55060

277,19745

225,000

15,00021,844

255,548 257,192

EPS

30.0

403,485
375,000■

Earnings Per Share（Right Axis）/
Return On Equity/
Return On Assets

10,172

10,883
10,79011,732

10.0

6,079 6,826

2019

2020

15.0

5.0

2021

2022

0

153.06
14.3

5.8
2019

171.88

19.4

17.9

14.2

150,000

5.0
2021

7.5
2022

30

25.1

100

7.7

2020

150

180,047

19.9

75,00050
045,1280

201950,7552020

21.9
60,6712021

23.7
70,3812022

150

Special
FeatureVision of LT Lab, Cutting-edge
Robotics Testing Facility

SBS Group established LT Lab which is a testing facility for increasing the accuracy of the latest
Logistics Technology（LT）during introduction and early stabilizing LT in Logistics Center Saitama（SBS SAN-AI LOGISTICS CO., LTD）on December 1, 2022. We will make the latest robot solutions
available to respective Group companies based on accumulated data in the lab to resolve medium-to
long-term challenges such as staff shortages and increasing productivity at logistics sites.

Indispensable presence for rational
LT introduction in logistics sites
The SBS Group proactively introduced robot
solutions in its logistics sites and accumulated
knowledge about LT. In our LT Lab, virtualenvironments according to the requirements ofcustomers are built and advance testing iscarried out to thoroughly collect operation
knowledge and experience.
Consequently, the risk of not fully utilizing
introduced robots in the sites can be reduced.

① Specialists of logistics sitessLT LabhStrengt

Members with extensive careers in logistics
sites operate the lab by utilizing theirexpertise.

② Thorough simulations

Designing perfect LT for each site by using
performance
analysis of solutions from
同業他社（3PL企業）では在庫特性に
multiple LT vendors.
例の無い取り組み
とらわれないLT literacy③ Fostering
特定のメーカーにとらわれない
あらゆるパターンを想定した
国内外からの仕入れロボットの動作検証が可能
The lab proactively
welcomes visits fromvarious stakeholders for educational
Daily data accumulation
purposes.

Ongoing testing for both the EC logistics specialized center tobe established in a new logistics facility and existing sites

Continuous introduction and testing of robots

Currently, the lab is testing robot solutions to be used in Logistics Center
Ichinomiya（SBS RICOH LOGISTICS SYSTEM/Operation scheduled to startin April 2023）as well as solutions for the EC logistics specialized center in
Building A, Seto, Noda（tentative）（SBS Asset Management/Operation
scheduled to start in January 2024）.
Without being limited to new facilities, the lab also aims to introduce
robotics solutions broadly in existing sites with packaging by synchronizing
the Warehouse Management System（WMS）with other equipment. The lab
is working hard for the early introduction of cutting-edge robotics solutions inlogistics sites and mastering technology in a systematic manner.

Rollout of the EC Logistics Omakase-kun（Entrustment） EC Logistics Platform !
The SBS Group has developed a new one-stop EC Logistics
Omakase-kun（Entrustment） service to cover operations fromwarehousing to shipping and delivery including EC site operation. In
addition to contributing to the growth of Japan s rapidly growing EC
product sales market, the SBS Group aims for 100 billion
yen increase in EC logistics-related net sales（one trillion
yen increase in total logistics-related net sales）by 2030.
service website
Hiroki Hasegawa, Actor, Image character of EC Logistics Omakase-kun（Entrustment）

Establishment of Sustainability Policy and Sustainability Promotion Committee■ Establishment of Sustainability Policy

Our group has always been committed to ensuring sustainable growth and resolving social issues. Today, the environment surrounding us
has changed significantly, and it has become even more important to cope with both creating a sustainable society through resolving social
issues and enhancing sustainable corporate value. In light of these circumstances, we have established the Sustainability Policy to indicate
the values and goals that our employees should emphasize in promoting sustainability management.

Sustainability Policy of the SBS Group
Basic Principles
In the spirit of our management philosophy of respecting people andfulfilling its social responsibility, the SBS Group aims to contributeto the stability of people's lives and the realization of a sustainable
society through logistics, which is social infrastructure. To achievethis, under the following policy, we will actively promote sustainable
initiatives by having all employees of our group recognize
themselves as members of the international community.
Basic Policies① We value people's connections and people's thoughts② We connect with society and meets society's expectations③ We connect with the earth and considers its future■ Establishment of the Sustainability Promotion Committee

SBS Holdings
Board of Directors

SBSG Operating
Companies

SBSG Sustainability Promotion Committee（

Chairman: Representative Director of
SBS Holdings
Members: Representative Directors ofeach company）

Representative○

Representative○

SBSG Risk-Management
Committee

SBSG Environment Management
Promotion Committee

Company B

Representative○

SBSG Compliance
Committee

Company A

Business
Collaboration

Company C

Representative○

Company D

Representative

SBSG Transport Safety
Promotion Committee○

Company Ｅ・・・（1）Purpose of establishing the committee：We have established thecommittee to develop and strengthen our management system inaccordance with the above-mentioned sustainability policy, and topractice sustainability management throughout the Group to achieve both
the realization of a sustainable society and the enhancement ofsustainable corporate value.
（2）Role of the Committee：The committee is positioned as an advisory bodyto the Board of Directors and is responsible for formulating sustainability
strategies and activity policies for the SBS Group as a whole, and monitoring
KPI indicators and the status of coordination of activities within the Group.
（3）Structure of the Committee：This committee is chaired by ourrepresentative director and is composed of our directors and therepresentative directors of each Group company.
（4）Date of establishment of the committee：January 18, 2023

SBS Group（SBSG）
Sustainability Promotion Structure

SBSG Information-Security
Promotion Committee*The members of the above meetings are composed of the general managersof administrative divisions, related divisions, and persons in change

The Formulation of the SBS Group s Mid-Term Management Plan SBS Next Stage 2025
SBS Holdings Inc. formulated a management plan titled SBS Next Stage 2025 for a 3-year period from FY 12/2023 to FY 12/2025. The
logistics industry is entering a revolutionary phase amid the shift to a decarbonized society, the growth of awareness of the sustainability ofthe supply chain, the shortage of manpower caused by structural problems, etc. Recognizing such a change in the business environment as aturning point for proceeding to the next growth stage, our company will implement measures for making a further leap forward.

【Management Philosophy and Management Vision】
Based on our management philosophy, The SBS Group set the following
three mid-term management visions.

Mega-Ventures Growing with Logistics Technology ( LT)×IT
We will solidify our position as the industry leader,
meet the logistics needs of all our customers, and strive
to be a company that coexists with and is trusted by society.

【Priority Measures】

Considering our corporate history and current business environment,
the SBS Group set four priority measures, and aim to execute themwithout fail during the period of our management plan.
① Enhance the overall strength of the Group(group platform strategy and unique strategies of each company)② Develop and expand logistics business infrastructure③ Improve/differentiate operational productivity through LT x IT
④ Strengthen the foundations of sustainability management
and human capital initiatives【Financial Goals】
1. Contribute to the creation ofvalue for customers throughthe provision of services.

The SBS Group aim to achieve net sales of 500 billion yen and operating
income of 27.5 billion yen in FY 12/2025. Through organic growth, excluding
the effects of M&A, the company will strive to achieve an average annual
growth rate of 4.5% in 3 years, our revenue structure, and increase
operating income margin from the current value of less than 5% to 5.5% byimproving. In parallel, it aims to raise shareholders equity ratio from the 20%
level to 30%, to improve the soundness of its financial standing.

Management
Vision2. Emphasize ESG as social infrastructure
and contribute to all stakeholders
3. Continuously return profits to shareholders inline with business performance
A company that delights its customers and shareholders andbrings happiness to its employees.
A company that values its people and thrives whenemployees work with vitality and enthusiasm.
A company that fulfils its social responsibilities, coexists withsociety and contributes to social development.

［100 million yen］

Result in FY 2022 Forecast for FY2023
Management
Philosophy

Net sales
Operating income
Shareholders' equity ratio

4,555

4,570

Forecast for FY2025

5,000

218

228

275

23.7%

25.5%

30.0%

Note: The forecast does not include the effects of M&A
Note: Rounded to the nearest unit

News
Received a Japan Star award in the Japan Packaging Contest
Provided an online presentation on our award winning product in the award winner product showcasing
SBS Toshiba Logistics

SBS Toshiba Logistics Corporation received the Outstanding Logistics Improvement Award for its initiatives to improvesite operations at the All Japan Logistics Improvement Case Conference 2022 in June. In the 23rd Logistics Environment
Award held also in June, SBS Toshiba Logistics received one Sustainable Activity Award and four Special Awards. In the2022 Japan Packaging Contest held in August, the company received the Chairman of Japan External Trade
Organization（JETRO）Award in the Japan Star award category, which is the most prestigious award category, and two
Industrial Packaging Awards in the Packaging Category Award, making the company an award winner for 20 consecutive
years. In November, the company gave an online presentation on Lithium-ion Battery:100% Recycled EPS and Minimized
Storage as a Japan Star award winning product in the Japan Packaging Contest Award Winner Showcase 2022.

Endorsement of activity to promote women s active participation
and advancement in the workplace by Shintomi Town inMiyazaki Prefecture for fully supporting Viamaterras Miyazaki
SBS Holdings

Viamaterras Miyazaki, a female soccer clubin Miyazaki, aims to join Japan s .WE
League female professional soccer league.
Shintomi Town employs players from
Viamaterras Miyazaki as government workers
to create a supportive environment wherefemale players can pursue dual career paths
in soccer and work. SBS Holdings endorsed
and supported the town s activities througha corporate version of the hometown tax.

Participation in the White Logistics Movement
SBS Zentsu

SBS Zentsu endorsed the White Logistics Movement advocated by the
Ministry of Land, Infrastructure, Transport and Tourism, Ministry of Economy,
Trade and Industry, and Ministry of Agriculture, Forestry and Fisheries, andsubmitted a declaration of voluntaryaction for the realization of sustainable
White Logistics Movement
logistics in October. The company aims
to improve the productivity of trucking,increase the efficiency of logistics,
and create a working environment
where employees can work safely,
energetically, and without worry.

Opening of new facilities including the Ichikawa Cold
Center, an environmentally-friendly freezing andrefrigeration center
SBS RICOH LOGISTICS SYSTEM, SBS Zentsu

SBS Zentsu launched operations of Ichikawa Cold Center which specializes
in freezing and refrigeration logistics in October. This brand new environmentallyfriendly cold center features solar panels installed on the roof and uses freezers
with natural refrigerants. SBS RICOH LOGISTICS SYSTEM opened the 3PL
business and distribution processing-capable Logistics Center Atsugi in May.

Hosting a lecture and tour for students from the
University of Tokyo for the development of advanced
logistics specialists
SBS Holdings

To increase interest in the logistics
industry among young people, as partof an endowed course offered to the
Research Center for Advanced Scienceand Technology of the University ofTokyo, SBS Holdings provided a tour of
the SBS RICOH LOGISTICS SYSTEM
Yokohama Kanazawa Logistics Centerin April while the LT Planning Division
provided a lecture in June.

Hosting SBS Group Driver Contest for the ﬁrst timein three years
SBS Group, SBS Sokuhai Support, SBS Zentsu

In November, the SBS Group 5th Driver
Contest was held for the first time in three
years for improving the safety knowledge
and driving technique of drivers anddisseminating safety awareness in theGroup as a whole. In addition, SBS Zentsu
held the 8th Home Delivery Division Driver
Contest in April while SBS Sokuhai Support
hosted the 2nd Sales Driver Customer
Service Manners Contest in October.

Consolidation of the headquarters function of theGroup in Nishi-shinjuku
Large-size screen and cutting-edge LT technology
welcome visitors
SBS Group

23 companies in the SBS Group
were relocated together in
Sumitomo Fudosan Shinjuku
Grand Tower. The entrance of the
new head office features a large
size 4K screen. A cutting-edge
robot showroom displaying a wide
variety of LT equipment is also
housed in the new head office.

Renewal of the group s uniform design

EMC INC. and SOYU Co., Ltd. from Japan Logistics
Future Investment joined the SBS GroupSBS Group

SBS RICOH LOGISTICS SYSTEM, SBS Flec

From April, staff members started working in new
uniforms. The dark-color based stylish uniforms
impart a sense of security and sophisticated image.
The uniform is being worn in
all Group companies including
new Group members, SBS
Toshiba Logistics and SBS
RICOH LOGISTICS SYSTEM,
which enhances the senseof unity as a Group.

SBS RICOH LOGISTICS SYSTEM acquired
all shares of EMC INC. in November forenhancement of its service parts logistics
business through cooperation of the twocompanies. SBS Flec, which had acquired
all the shares of SOYU Co., Ltd., mergedwith SBS Flecnet. This acquisition andmerger realized a more robust distribution
network in Chiba City and Noda City in
Chiba, which is a key base for SBS Flec.

Corporate Profile and Stock Information■ Corporate Profile
Company NameSBS Holdings, Inc.

Representative Director

Masahiko Kamata

Established

December 16, 1987

Capital3.92 billion yen

Net Sales

455.4 billion yen（consolidated)＊For the year ended December 31, 2022

Location

8-17-1, Nishi-Shinjuku, Shinjuku-ku, Tokyo, 160-6125, Japan
Sumitomo Fudosan Shinjuku Grand Tower 25F
Tel: 03-6772-8200（main switchboard）

Business Activities

Consolidated
Subsidiaries（January 1, 2023）

Logistics business, property management business,marketing business, human resources business, etc.

■ Stock Information
Number of Shares Authorized

154,705,200 shares

Number of Shares Issued

39,718,200 shares

SBS RICOH LOGISTICS SYSTEM CO., LTD.
SBS SAN-AI LOGISTICS CO., LTD.
RICOH LOGISTICS CORPORATION［USA］
RICOH INTERNATIONAL LOGISTICS（H.K）Ltd.
Ricoh International Freight Forwarding（Shenzhen）Co., Ltd.
SBS Logistics（Thailand）Co., Ltd.
SBS Vietnam Co., Ltd.
Jass Co., Ltd.
SBS Global Network Co., Ltd.

SBS Logicom Co., Ltd.
SBS Freight Service Co., Ltd.
SBS Logicom Kanto Co., Ltd.
Kyokushin Unyu Kaihatsu（K.U.K. LINE）

SBS Flec Co., Ltd.
SBS Flecnet Co., Ltd.
Hinomaru Kyuso K.K.

SBS Sokuhai Support Co., Ltd.
SBS Zentsu Co., Ltd.
SBS Furukawa Logistics Corp.
SBS Staff Co., Ltd.
SBS Finance Co., Ltd.

4,849

Number of Shareholders■ Major Shareholders（as of December 31,2022）
Shareholder Name

Number of
Shares Held

Shareholding
Ratio
（%）

Masahiko Kamata

14,388,400

36.22

Custody Bank of Japan, Ltd.（trust account）

SBS Toshiba Logistics Corporation
TL Logi Service Co., Ltd.
Toshiba Logistics（Shanghai）Co., Ltd.
Toshiba Logistics（Hangzhou）Co., Ltd.
Toshiba Logistics（Dalian）Co., Ltd.
Toshiba Logistics Hong Kong Co., Ltd.
Toshiba Logistics（Singapore）Pte. Ltd.
Toshiba Logistics（Philippines）Corporation
TL Forwarding Service（Philippines）Corporation
Toshiba Logistics（Thailand）Co., Ltd.
TL Service（Thailand）Co., Ltd.
Toshiba Logistics Malaysia Sdn. Bhd.
Toshiba Logistics Vietnam Co., Ltd.
Toshiba Logistics India Private Limited
Toshiba Logistics America, Inc.
Toshiba Logistics Europe GmbHYes（100 shares）

Unit Stock System

5,057,200

12.73

The Master Trust Bank of Japan, Ltd.（trust account） 2,458,700

6.19

1,224,500

3.08

Sumitomo Mitsui Trust Bank, Limited（trust account Ko-18） 1,200,000

3.02

Masaru Wasami

1,078,600

2.71

TOBU Properties Co., Ltd.

1,001,000

2.52

Sumitomo Mitsui Trust Bank, Limited（trust account Ko-13） 1,000,000

2.51

Junichi Ouchi

601,400

1.51

UEDA YAGI TANSHI Co., Ltd.

500,600

1.26

SBS Holdings Employee Share Ownership Association＊The ratio of shares held against the number of shares issued is truncatedafter the second decimal place.

■ Distribution of Shares by Shareholder Type（number of shares issued: 39,718,200 shares）
Japanese corporations

Securities firms

3,297,211 shares（8.30％）

641,322 shares（1.61％）

Non-Japanese corporations

Treasury stock

3,616,610 shares（9.11％）

Financial institutions
10,373,000 shares（26.11％）

Individuals
and others
21,789,329 shares（54.86％）

Toyo Warehouse & Transportation Co., Ltd.
Marketing Partner, Inc.
SBS Asset Management Co., Ltd.
LMAX Co., Ltd.

■ Directors （as of March 28, 2023）
Representative Director

Masahiko Kamata

Director

Masato Taiji

Director

Yasuhito Tanaka

Director

Natsuki Gomi

Director

Katsuhisa Wakamatsu

Outside Director

Jiro Iwasaki

Outside Director

Shuichi Hoshi

Outside Director

Yoshinobu Kosugi

Director（Full-time Audit & Supervisory Committee Member）

Takashi Endo

■ Change in Dividends
61.0

（Yen）
60

55.0

50
40
30

30.0

35.0

20
10

Outside Director（Audit & Supervisory Committee Member）

Masato Matsumoto
Outside Director（Audit & Supervisory Committee Member）

Sachie Tsuji

0

2019

2020

2021

2022

728 shares（0.00％）