For the Six Months Ended June 30, 2013
（Security Code：2384）

SBS Business Report（Interim）■ S pecial Featu r e

Further acceleration ofthe Group's growth withunification of the brand■ Contents

Business Highlights

01

Message from the President

02

Special Feature

03

Topics06

Consolidated Performance

07

Corporate Profile & Stock Information

10

BUSINESS HIGHLIGHTSSBS 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 theclient needs

Entry in Top 10 of the industry

3 StrategiesProperty
Management2.1％
For the year ended June 30, 20132013 Forecast
Net Sales

Operating Income\128.0 billion\3.1 billion

Expand 3PLand ensurestability (food)

Full-fledged
overseas businessdevelopment with
Asia as theprimary target

M&A anddevelopment oflogistics facilities

Business
StrategyInternational
Strategy

Investment
Strategy

Development ofGroup Management Structure

Low cost operation structure 〜
Environment to extract group synergies

GeneralLogistics●3PL ●Logistics Center Operation●Distributive Processing ●Trucking●International Logistics ●Logistics Consulting

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

Logistics
SupportBusinessthe logistic functions in all directions

Logistics
93.5％

Other 4.3％

(Human resources,environment-relatedand marketing)

Logistics
Business

3PL Corporate Group which has●Same-day Delivery

OthersProperty● Development and sale of logistic facilities
Management
Other

OthersOthers● Human resources ● Environment-related ● Marketing

OthersDisclaimer: 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 SBS Business Report 2013

MESSAGE FROM THE PRESIDENT

Looking back on the firsthalf of the year, the time

the Group implemented
diverse measures towards
further growth

Representative Director and President : Masahiko Kamata

For the SBS Group, 2013 was regarded as aAlso, the Group was successful in a number ofyear of intensive investment that would lay

business negotiations, where we had tofoundations for further growth, and we imple-compete against major companies in themented a wide range of measures in thissame industry. Looking at these achieve-

area during the first half.

ments I can confidently say that the efforts

To boost synergy among the individualin the area of marketing the Group has been

companies and improve the brand value, wemaking for the last several years are begin-made a number of steps to unify all of thening to bear fruit.

companies of the Group under one brand.

On the investment front, we have launched

Also, to offer highly efficient logistics services

a number of intensive efforts, such as start-

handling high-mix low-volume products, weing construction of a logistics center in Na-

developed a large-scale logistics center forgatsuta, Yokohama which shall be one of thethe Nippon Record Center, enabling to grouplargest facilities of the Group, and also start-

all of the bases of the company in one loca-

ing our solar power generation business.

tion. New overseas affiliated companies wereStriving to ensure steady growth of theestablished in Hong Kong reinforcing thebusiness, SBS Group shall make furtherGroup's organization of bases in Asia.

efforts to improve the efficiency and qual-

At the same time, the Group made a number

ity of our operations and to strengthen ourof efforts to expand its 3PL business, for ex-competitiveness. We shall also work with

ample launching large-scale 3PL services formight and main so that within this year we

SHIMACHU, a company operating a chain ofcan bring you the news of the Group being

large home centers, and establishing newlisted in the First Section of the Tokyo Stocklogistics centers following the expansion ofExchange.

business scale at a number of major drugstore chains.

And I sincerely hope that you will continue to support SBS Group in the future.

SBS Business Report 20132

SPECIAL FEATURE

Further acceleration of the Group's growthwith uniﬁcation of the brandFrom June 1 of this year, SBS Group launched the process of brand unification. We created a newbrand mark and a new slogan for the Group, changed the names of fourteen logistics companies of theGroup so that each company name starts with“SBS”. We also quickly promoted unification of design ofvehicles, uniforms worn by the staff, and other assets used by the business.
So far, in order to put to good use the individual strengths of all of the companies comprising theGroup, we employed a multi-brand strategy and did not unify the company name, brand mark, andother attributes of our business, but recently it was decided that to achieve further growth in thefuture, it is important to create a sense of unity within the Group and maximize our brand value.
That is why we decided to commemorate our 25th anniversary of establishment and listing in theSecond Section of the Tokyo Stock Exchange by unification of the Group's brand.
In the future, all of our employees as one shall strive to expand and strengthen the synergy
between the Group companies, endeavoring to offer high quality logistics services both in andoutside Japan on the base of even stronger collective strength, which has always been one of thestrong points of the SBS Group.

Concept of the new logo
The logo is in the motif of theSfrom SBS anddepicts the dynamic intersection of 2 curves. This
design represents the encounter, communion andmutual interaction between SBS, people,
corporations and society, as well as how SBS strives
to exist as a company where all employees can takeon new challenges and pursue their dreams.

Group's slogan
The Group slogan encapsulates the heartfelt
desire of the SBS Group since its inception totreasure the act of pursuing a dream, and by
pursuing that dream to build a better future.

We want to be a Group that customers choose no matter how the times change. Since our inception
we have always pursued our dreams.
We are a business Group with one dream, connecting one with the other with a common will. We firmly
believe that dreams have the power to strengthen and focus the will.
Logistics that brings business and modern living together forms a vital social infrastructure. Our mission
is to protect that infrastructure and advance it further.
By linking our dreams together, we can build a great future. The SBS Group is pursuing its dreams andcontributing to a prosperous society.

To pursue a dream is to build the future!

3 SBS Business Report 2013

For Your Dreams.

SPECIAL FEATURE

With unification of the brand, trucks and uniforms
are now changed to those employing the new common
design of the Group■New common truck design

Trucks painted with the “SBS dream color”,an original color of the Group created on
the base of California Orange to be brightand conspicuous, thus helping to eradicate
accidents■New common design of the uniforms

Polo shirt (side)

Piste jumper (front)

Polo shirt (front)

Piste jumper (back)New uniform combining red and black,colors that accentuate the feeling of
freshness, brisk motion, and strength
created by the logo making it reallystand out, and grey trousers withorange stripes on the side

SBS Logicom
Noda Yoshiharu Logistic Center

SBS Business Report 20134

SPECIAL FEATURE

Promote brand unity by starting company
names with SBS■ Newly Stated Company Names（As of June 1, 2013）
Previous Name

New Name

TL LOGICOM Co., Ltd.

SBS Logicom Co., Ltd.

Foods Lec Co., Ltd.

SBS Flec Co., Ltd.

Zentsu Co., Ltd.

SBS Zentsu Co., Ltd.

SBS Logitem Co., Ltd.

SBS Sokuhai Co., Ltd.

Sogo Butsuryu System Co., Ltd.

SBS Support Logi Co., Ltd.

NIHON KAMOTSU KYUSO Co., Ltd.

SBS Freight Service Co., Ltd.

TL Transport Co., Ltd.

SBS Transport Co., Ltd.

AC system Corporation

SBS Global Network Co., Ltd.

Hokkaido Lec Co., Ltd.

SBS Flec Hokkaido Co., Ltd.

Tohoku Wing Co., Ltd.

SBS Flec Tohoku Co., Ltd.

Wing Transport Co., Ltd.

SBS Flec Kanto Co., Ltd.

Chubu Lec Co., Ltd.

SBS Flec Chubu Co., Ltd.

Kansai Ryutsu System Co., Ltd.

SBS Flec Kansai Co., Ltd.

Kyusyu Lec Co., Ltd.

SBS Flec Kyushu Co., Ltd.

SBS Holdings home page

5 SBS Business Report 2013

SBS Logicom home page

SBS Flec home page

SBS Zentsu home page

TOPICS

Activities of the SBS Group
BANK

Launch of system of same day
transfer of daily wages for
dispatched employeesFebruary(SBS Staff)

Reaching an even higher levelof eﬃciency with establishmentof a new center

May(Nippon Record Center)

Due to bank procedures andother reasons, usually it takes
several days for daily wages
to reach the recipients, butthe Group, first among theleading staffing service
companies, launched a new
original service enabling us to transfer thepayment on the same day the work was done.

Atsugi Sanda DC, a large-sized new center the Group
had been working on, hasbeen completed this spring.
T h i s enabled us to g r o u p
operations, which had beenpreviously conducted inthree centers with the total floor space of 20,000tsubos in a new 15,000 tsubo-center, thus ensuring
an even higher efficiency of logistics services handlinghigh-mix low-volume products.

Using the know-how amassed throughGroup s cooperation with Internet
supermarkets oﬀering home delivery to launcha new service of home-delivered suppers

Adoption of IT roll call system
in Numazu and Shimoda oﬃcesApril(SBS Flec)

June(SBS Freight Service)

The Group is entrusted
w i t h t h e service of homedelivered suppers offered byPalsystem Chiba.Thanks tothe Group s know-how in thearea of home delivery forInternet supermarkets andthe high-quality interaction skills of our sales drivers,
the service is receiving high commendation bothfrom the Palsystem and the customers.

SBS Freight Service
introduced the first IT rollcall system for operation
management in two officesof the company, namely, theNumazu and Shimoda offices.
The system was adopted toreduce the burden of operation administrators andto strengthen and ensure thoroughness of the rollcalls by system management.

Establishment of two aﬃliatedcompanies in Hong Kong

Launch of large-scale 3PL work
handling products of SHIMACHU
Home CentersApril(SBS Group)

The Group established two
affiliated companies in HongKong, one a managing company
for the operations of the Groupon the Chinese market and one
an operational company.
These companies shalldevelop such international logistics businesses as
forwarding, warehousing, and customs clearance
mainly for Japanese companies in Hong Kong andSouthern China.

June(SBS Logicom)

The Group was entrustedwith the 3PL work for
SHIMACHU, shouldering thewhole logistics function forthe home center products.
We established the firstlogistics center to be used
exclusively by SHIMACHU and provide highquality logistics service including delivery to thestores of the company nationwide.

SBS Business Report 2013

6CONSOLIDATED FINANCIAL PERFORMANCEAs the economic environment surrounding the Group is still severe with recovery ofconsumer trend still advancing at a low pace, although the Group implemented a number ofmeasures to boost the sales of the 3PL business and expand into new areas, the net sales
decreased as compared with the corresponding period of last year.
Moreover, as a result of snow damages in Northern Japan and a decline in the operating
ratio of some of our logistics centers, the operating income and the ordinary income alsodecreased.
Net income for the period decreased due to extraordinary losses incurred from transfer
and consolidation of logistics centers as well as the expenses required for branduniﬁcation.

■ Net Sales

1st Half

YOY
Change(Millions of yen)
150,000

120,000

115,710Full Year

119,824 121,148

127,935

1.7％
DOWN

55,91858,022

62,84661,805

2009

2010

2011

■ Ordinary Income2012

1st Half

4,291
3,748
2,767

2,000

1,604

1,653

1,422

1,000

2,901

1,677

2010

2011

2012

2013

2,177

1,332

1,183

703519
2009

2010

2011

■ Net Income2012

1st Half

1,988

1,140

Full Year

81.9％
DOWN

2,140

2,522
1,647

1,367

829
149（476）

02009

2013

YOY
Change(Millions of yen)
4,000

1,000534

290

7 SBS Business Report 2013

0

2,000

2,161

2009

2,888

3,000

3,000

0

Full Year

62.4％
DOWN

5,0002,000

2013

YOY
Change(Millions of yen)

4,000

47.2％
DOWN

4,262

1,000

30,0000

Full Year

YOY
Change(Millions of yen)
5,000

3,000

58,145

1st Half

4,000

90,00060,000■ Operating Income

2010

2011

2012

2013

CONSOLIDATED FINANCIAL PERFORMANCE■ Sales by Segment(Millions of yen)

1st Half of FY2013

1st Half of FY2012

Net Sales

Operating Income

Net Sales

Operating Income

Logistics

57,884（77）58,734683

Property Management

1,350

694

1,209

594

Other

2,857

31

3,191

24

Adjustment（287）

54（289）29

Total

61,805703

62,846

1,332● Logistics business :Net sales decreased due to a downturn of cargo movement resulting from dull consumption trend on the one
hand and a downturn of the logistics business resulting from seasonal factors on the other. The Group also
posted operating loss due to such reasons as the cost increase resulting from snow damages in Northern Japanand a fall of unit prices.
●Logistics support business :In the property management business, net sales and revenue increased due to the contribution made by rent
income from real estate facilities for lease, where the Group increased its equity. In the Other business, although
net sales decreased due to the exclusion of the consolidated subsidiary engaged in shipping agency business,there was an increase in operating income due to improvements in profitability made with some businesses ofthe area.

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

Total Shareholders' Equity

Net Debt-to-Equity Ratio(Millions of yen)
60,00045,000（Times）
3.0

46,251
2.23

37,28730,00020,707

22,5871.65

15,00039,09038,128

09/12

10/12

39,288

2.5

Net Assets(Millions of yen)
30,00024,00020,238Equity Ratio（％）

27,75022,616

27,76325,06540

18,00024,82827,372

1.5

1.57

11/12

27,069 2.0
12,0001.390■ Net Assets, Equity Ratio

12/12

1.45
13/06

1.0

18.6％

23.2％

24.5％

26.2％

26.2％

11/12

12/12

13/06

20

6,000

009/12

10/120＊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 2013

8CONSOLIDATED FINANCIAL PERFORMANCE

Basic Policies regarding the Profit Distribution and Per-Share Dividend■ ■ Dividend per Share
Basic Policy regarding the Profit Distribution

Commemorative dividend¥10.0

SBS Group regards redistribution of proﬁts to our40.0

shareholders as one of the primary tasks of（yen）
40

management.
30.0

30

We endeavor to ensure stable redistribution of30.0proﬁts taking into account the business results
23.0

23.0

achieved by continually improving solid management

20

foundations and raising the returns on equity.
For the year ended December 31, 2012, we paid10

the year-end dividend of 40 yen per share including
10 yen of commemorative dividend for the02008

2009

2010

2011

Company's listing in the Second Section of the2012

Tokyo Stock Exchange.

※Dividend per share shown is calculated on the basis of stock
split‑share trading unit system we recently switched to.

■ Performance Forecast for the Year Ending December 31, 2013 (By Segment)(Millions of yen)

Logistics

Property
Management

OtherConsolidation/
CorporateTotal

Net Sales

119,160

2,660

6,180

‑

128,000

YOY Change

ｰ0.1％

6.2％

1.3％

‑

0.1％

Operating Income

1,800

1,220

80

03,100YOY Change

4.2％

1.2％

81.8％

‑

6.9％

Operating Margin

1.5％

45.9％

1.3％

‑

2.4％

※ Figures of the earnings forecast contain the proceeds of internal sales between segments.

9 SBS Business Report 2013

CORPORATE PROFILE & STOCK INFORMATION■Corporate Proﬁle (As of June 30, 2013)■ Stock Information (As of June 30, 2013)

Company name

Number of shares authorized

51,568,400 shares

Number of shares issued

13,068,400 shares

SBS Holdings, Inc.

Representative
director andpresident

Masahiko Kamata

FoundedDecember 16, 1987

Paid-in Capital¥3,833.93 million

Net sales
Head oﬃce

Unit Stock System

Yes

Number of shareholders

3,388¥127.9 billion■Major Shareholders (As of June 30, 2013)

4-1-3 Taihei, Sumida-ku, Tokyo 130-0012, Japan

Shareholder Name

Number ofRatio ofshares held share held
(hundred shares) (%)

Masahiko Kamata

6,362,800

48.68

SBS Holdings Employee ShareOwnership Association560,800

4.29

Hiroshi Date

390,000

2.98

The Chase Manhattan Bank, N. A.
London Secs Lending Omnibus Account334,800

2.56

Japan Trustee Services Bank, Ltd.
(Trust account)

318,200

2.43

Junichi Ouchi

309,400

2.36

TOBU Properties, Co., Ltd.

285,600

2.18

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

230,700

1.76

State Street Bank and Trust Company

200,000

1.53

Hiroyuki Yoshioka

188,900

1.44(for the year ended December 31, 2012)

Tel: +81-3-3829-2222(main)
Fax: +81-3-3829-2822
Lines of Business Logistics, property management,
marketing, human resources, etc.
Major
consolidated
subsidiaries(including 500 treasury shares)

SBS Logicom Co., Ltd.
SBS Flec Co., Ltd.
SBS Zentsu Co., Ltd.
SBS Sokuhai Co., Ltd.
SBS Staff Co., Ltd.
Atlas Logistics Private Limited
SBS Support Logi Co., Ltd.
SBS Finance Co., Ltd.
A-MAX Co., Ltd.
Marketing Partner Co., Ltd.

Note: Japan Trustee Services Bank, Ltd. (Trust account) is a

PAM Co., Ltd.

of shares its trust account holds includes 258,300 of our shares.

■ Board of Directors and Auditors(As of June 30, 2013)

re-trusted employee share ownership association and the number■Distribution of Shares by Shareholder Type(As of June 30, 2013)

Representative director and president Masahiko Kamata
Managing director

Kenichi Iriyama

Director

Makoto Watanabe

Full-time auditor

Shin-ichiro Watanabe

Auditors

Shigetaka Shomatsumoto
Masato Takeda
Jiro Iwasaki

The auditors Shigetaka Shomatsumoto, Masato Takeda and Jiro
Iwasaki are the external auditors.

Number of share issued: 13,068,400 shares
Treasury stock

Japanese Corporations

68 shares（0.00％）

659,200 shares（5.04％）

Non-Japanese Corporation
965,900 shares（7.39％）

Securities firms

133,252 shares（1.02％）

Financial institutions

983,500 shares（7.53％）

Individuals and others

10,326,480shares（79.02％）SBS Business Report 201310