SBS Business Report
For the year Ended December 31, 2018
（Security Code:2384）

Business Highlights

SBS RICOH LOGISTICS SYSTEM
Launched operation in SBS Group!
Financial Highlights

Sales exceeded 200 billion yen.
Achieved the record-high sales
and operating income.

I N D EX

Words from the President ・・・・・・・・・・・・・・・・・・・・ 1
Consolidated Financial Results ・・・・・・・・・・・・ 1
Topics ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 2
Special Feature ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 3Corporate Profile & Stock Information ・・・ 6

Words from the President

Led by large-scale M&A
and the existing logistics businesses,
the SBS Group made a good start
for the second-time startup,with achieving a record-high net sales
and operating income.
Masahiko Kamata, President
During the current fiscal year, the logistics industry wasfaced with growing demand for logistics solutions due to therevision of corporate logistics functions against the backdrop
from the expansion of the e-commerce market and soaring
transportation rates. Meanwhile, the industry was also facedwith rising costs, such as personnel, vehicle hire, and fuelexpenses, as well as a worsening labor shortage.
Under these business environment, the Group aggressively
made investments that will become the foundation of thenext-generation SBS Group. For example, the Group worked todevelop its largest-ever logistics facilities, to win new orders for
its 3PL business, and to streamline existing businesses. At thesame time, the Group embarked on large-scale M&As andstreamlining various business flows.
Our group companies have developed marketing activities
that combines websites, web advertisements, PR magazines,etc., and organizational proposal, leading to new orders andexpansion of existing businesses. In unprofitable existing
businesses, cost pressure was absorbed through offering
efficiency improvements and negotiations for rate revisions. In
addition, managers led efforts to create a diverse work styleand a comfortable working environment at the workplace, andworked to reduce the turnover rate.

The acquisition of Ricoh Logistics, which acquired 66.6% of
its outstanding shares in August, is the largest scale M&A for
our group. Our group companies and Ricoh Logistics, which has

strengths in manufacturing logistics and LT (LogisticsTechnology), are highly complementary in the functional
characteristics. Therefore, we expect to generate high synergies
through this collaboration. In May, we completed construction ofa 3-temperature logistics facility in Ibaraki Prefecture, and inJune we acquired a 35,000-tsubo (tsubo means a Japanese unitof area equal to approximately 3.31 sq. meters) site for alogistics facility in Chiba Prefecture. Construction of a logistics
facility in Osaka City, which was completed in March this year,
is expected to become the SBS Group's first 3PL base inwestern Japan, expecting almost full capacity operation.
In the current fiscal year, when the next-generation SBSGroup began, thanks to our large-scale M&A and the growth oflogistics businesses, we achieved net sales of 200 billion yen,which had been our dream since our founding, and marked
record-high operating income of 8.2 billion yen. Looking ahead,
we will work to further increase our corporate value byorganically linking and integrating group companies withindividuality based on the aspiration of "Innovating logistics."
We look forward to the continued support and please expect
the next generation SBS Group.

CONSOLIDATED OPERATING PERFORMANCE IN THE CURRENT FISCAL YEAR

■ Net Sales

YOY Change

33.1％up(Millions of yen)

YOY Change(Millions of yen)

8,240

32.3％up

8,000

250,000

7,514

203,516200,000

150,000■ Operating Profit

141,535

157,996

6,229

6,000

5,347

149,054 152,870
4,000

4,098

100,000
2,000

50,000

02014

2015

2016

2017

0

2018

12014

2015

2016

2017

2018

T opics
May

Last mile delivery withbicycle

December

SBS Flec

SBS Flec began delivering with electricpower assisted bicycles exclusively fordelivery services at the Ichikawa
Delivery Station in Ichikawa City, Chiba
Prefecture, which operates ane-commerce delivery service. We willcontinue to promote the delivery withbicycles, which are safe, efficient, andeconomical, and have the potential toreduce environmental impacts.

May

Introduced a mercury-containing
waste crusher

December

SBS Sokuhai Support is equippedwith a crusher for mercury-containing
waste at the Shinonome Office. In
the process of crushing and removing
mercury-containing industrial wastes
such as fluorescent lamps, thisproduct enables eco-friendly
treatment by absorbing and removing
the mercury gas to prevent its diffusion into the air. We collectand process every quantity from one unit to tons.

MayNovember

SBS Group■ Ordinary Profit

New distribution centers
SBS Flec & SBS Logicom■ Net Income Attributable to Owners of Parent YOY Change

YOY Change

17.5％up

7,832

7,607

0.8％down（Millions of yen)

6,000

6,475

5,772

6,000

SBS RICHO LOGISTICS SYSTEMIn May, the "SBS Flec Ami Distribution
Center" was completed in Ibaraki Prefecture,
the Group's first self-developed 3PL
distribution center for food products that
responds to the three-temperature range.
In addition, we decided to lease the entire
building of SBS Logicom's "D Project Tokyo
Jonanjima II (tentative name)" in November,and attended the Groundbreaking
Ceremony. Operations are scheduled to begin in March 2020.

The SBS Group held 1st SBSGroup Forklift Operator Contest
to raise the safety awareness offorklift operators and prevent
work accidents. We competedfor the advanced driving skills
required for operators and thespecialized knowledge related torelevant laws and regulations,vehicle structure, etc.

8,000

11th Global KAIZEN
Tournament

Since 2010, SBS Ricoh Logistics
has been holding a Global
KAIZEN Tournament with thepurpose of creating a climate andculture for the KAIZEN (meansimprovement in Japanese) andquickly sharing successfulexamples. This year, we shared
one case of reform and four KAIZENs.

The 1st SBS Group Forklift
Operator Contest(Millions of yen)

SBS Staff

SBS Staff, which provides personnel services, has been engaged
in temporary staffing and recruiting service for approximately
20 years. In the logistics industry, which accounts for more than
90% of our customers, we do business not only with the SBS Group,
but also with more than 800 companies a year. We launched
Logistics Pro.com , a job information website specializing in
logistics personnel developedby utilizing our expertise in
human resource services that
we have cultivated to date.

SBS Sokuhai Support

June

Recruitment consulting services
specializing in logistics personnel

4,000

5,111

4,446

4,409

2017

2018

2,725

2,000
4,000

3,648（3,815）

0
2,000

0-2,0002014

2015

2016

2017

-4,0002018220142015

2016

Special
FeatureAiming for dramatic growththrough integration with SBS Ricoh Logistics

Pioneer in precision products distribution
On August 1, 2018, SBS Holdings acquired a
66.6% shares of Ricoh Logistics, a logistics
subsidiary, from Ricoh Co., Ltd. In January
2019, the company name was changed to
SBS Ricoh Logistics Co., Ltd., including six
domestic group companies. (Table on theright)
In 1964, SBS Ricoh Logistics System Co.,

New corporate name
SBS RICHO 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 LOGI KYUSHU Co., Ltd.

Ltd. was established as a logistics subsidiary of the Ricoh Group,a major manufacturer ofprecision equipment. The company is engaged in the 3PL business, which is responsible forthe entire logistics operations of Ricoh group in Japan and overseas. The company also
provides logistics services to customers outside the Ricoh Group, including contractedlogistics services for OTSUKA CORPORATION's tanomail .

Creating New Value through Synergies with Group Companies
The SBS Group has technologies and expertise as a comprehensive logistics group. SBS Ricoh Logistics has
outstanding technologies and know-how cultivated in manufacturing-affiliated logistics, and both possess strengths in
the 3PL business. The operations of the SBS Group and SBS Ricoh Logistics are highly complementary, and we
expect strong synergies in areas such as: strengthening the nationwide distribution network, streamlining bymechanization and automation, strengthening our ability to respond to supply chain management, expanding ourbusiness model in logistics real estate development, and expanding our overseas business.
Synergies generated by combining networks of both parties, customer bases, technologies and expertise will bringnew value to the SBS Group as a 3PL corporate group with omni-directional logistics functions. Looking ahead, wewill launch collaborative projects across the Group for each theme and promote initiatives to realize synergies.

Toward full-oriented 3PL expansion

Synergy of strengths × mutual complementation of issues
SBS Ricoh Logistics

Expected synergy eﬀects

Strength① Strengthening of thenationwide network

3PL to manufacturers
nationwide and overseas
Distribution for BtoB
e-commerce order
Issue
Expansion outside the Ricoh
Group Securing personneland vehicles② Mechanization andautomation③ Expansion of businessmodel in logistics realestate development④ Strengthening of supply
chain management⑤ Expansion of overseas
business

3

Comprehensive Logistics

SBS LogicomStrength
Develop 3-temperature 3PL distribution facilities
for 3PL foods for retailers and wholesalers
Issue
Overseas expansion Business centered on theKanto region
Food distribution SBS Flec SBS Zentsu
Same-day delivery SBS Sokuhai Support
Human resource SBS Staﬀ

SpecialFeature

Leveraging the strengths of Group companies to achieve further growth
The SBS Group has worked to expand its logistics services by leveraging and expanding the strengths of businesses
that joined the Group through M&A. In the same way, SBS Ricoh Logistics will be able to seize new growth
opportunities by leveraging the Group's management resources.The SBS Group will continue to provide optimallogistics services for customers' businesses through the growth of Group companies.

Mr. Kamata (left), President of SBS Group and Mr. Wakamatsu (right), President of SBS Ricoh Logistics

SBS Group'sESG
activities

We classify CSR themes into four categories: the environment, safety, society, andgovernance. We have established priority items and measures for CSR promotion, and arecontinually and multilaterally implementing them. We have established a promotion
organization (Group Meeting) for each of the four issues to promote activities and share
information. The CSR Promotion Committee, which oversees these organizations, iscomposed of representatives from Group companies and is responsible for promoting CSR
activities, such as deciding policies and approving measures across the Group.

Environment■ Commencement of 3rd Mid-to Long-Term Environmental Plan
The SBS Group formulated the Group's Medium-to Long-Term Environmental Planfollowing the Environmental Action Plan 2017.We named this plan "Sincere Challenge."
As with the name, we are committed to this plan in good faith and proactively.
SBS Group Mid-to Long-Term Environmental Plan
Plan name
SloganPriority
issue
Action plan

SINCERE CHALLENGE 2030
"We challenges to make an eco-friendly society with a lot of greenery!"Mid-term: Curtailment of CO₂ emissions (reduction of carbon emissions from vehicles and facilities)
Promotion of resource recycling (effective use and recycling of waste)
Conservation of natural resources (reduction of use of copying paper and water)Long-term: Strengthen reduction of CO₂ emissions from vehicles(Formulation and Implementation ofPlan for Introduction of Next-Generation Vehicles)
Environmental Action 2020

4

SBS Group's

ESG activities

Safty■ Formulation of safety slogan

For the SBS Group, the realization of safety and accident-free operations is a
top priority and is at the core of service quality. We are working to prevent
accidents through multifaceted approaches, such as improving driver safety
awareness and driving skills, supporting health management, and ensuring
vehicle safety.

Professional skills to carry happiness without accident■ Number of G-Mark certified sites

The number of SBS Group offices certified under the GMark is 153,
and the acquisition rate is 86.4％.（As of December 13, 2018）■ Improvement Initiatives
To improve logistics quality, our Group companies holdvarious contests and presentations.
・SBS Zentsu/Home Derivery Division: held 2ndCustomer Contest held（July）
・SBS Zentsu/Home Derivery Division: held 3rdImprovement Case Presentation Meeting（November）
・SBS Flecnet: held 2nd Business Improvement
Presentation Meeting（November）■ Driver contests
Driver contests are held at Group
companies to improve safetyknowledge and driving skills. Drivercontests are also held at competitions
sponsored by the Truck Association.
・SBS Zentsu/Home Derivery Division: held 6th Driver Contest（April）
・SBS Zentsu/Trunk-route Transport Division: held 6th Driver
Contest（June）
・Mr. Tachibanaki, a staff of SBS Frecnet wins 24th Truck
Driver Contest in Nagano Prefecture（July）
・Participated in 50th National Truck Driver Contest（October）・Held 3rd SBS Group Driver Contest（November）
・SBS RICOH LOGISTICS SYSTEM: held 6th Driver Contest
held（November）■ Participation in Traffic Safety Campaign
The SBS Group is engaged in a variety of activities aimed
at eliminating traffic accidents. During the Spring andAutumn, National Traffic Safety Campaigns, volunteers
participate in joint street activities conducted by local
police stations and other organizations, calling on local
residents to prevent accidents and ensure traffic safety.
During the same period, we posted awareness-raisingposters and dangling curtains at all of our business sites.
Employees wear Traffic Safety Ribbons and are always
aware of traffic safety.

SocialThe SBS Group adheres to its management philosophy, and its business activities are based on the fundamental principleof living in harmony with society. As a corporate citizen, we strive to contribute to the resolution of social issues while
also valuing communication with our stakeholders and building relationships of trust.
■ Support the Food Bank
activities
In June 2018, the SBS Group beganproviding logistics support, which is thefoundation of Food Bank activities.

■ Efforts of the Nippon Record Center
The Nippon Record Center is engaged in a variety ofinitiatives to deepen its relationships with local communities.
・Held Training for Supporters of PresymptomaticDiseases（February）
・Held 4th Summer Lesson for Children（August）
・Held 5th Power Walking Seminar（November）■ Employment of Persons with Disabilities
SBS Zentsu was awarded by Saitama Prefecture in September 2018. In October, as
an excellent employee with disabilities, Ms.Yamazaki, a staff of SBS Flecnet wasawarded by Oita Prefecture.

Governnance
The SBS Group aims for sound management. By
strengthening corporate governance to accelerate
and improve management efficiency, and bycontinuing to ensure soundness and transparency,
we will meet the expectations of our stakeholders
as a trusted business. We are also working on
compliance and risk management, which arebecoming increasingly difficult due to changes in thebusiness environment.

■ Disaster Response Initiatives
Each SBS Group company conducts a variety of emergency response
drills, including communication among group companies and theestablishment of substitute bases, in anticipation of emergencies
such as large-scale earthquakes.
・SBS Group: held the 3rd Emergency Response Training（October）
・SBS Ricoh Logistics: Safety Confirmation Training（Regular）
・SBS Holdings: received certification as Company to PromoteRestriction on Mandatory Returns by Tokyo Metropolitan
Government（December）

5

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¥203.5 billion（consolidated）

39,718,200 shares
including 914 fractional shares
Yes（100 shares）

Unit Stock System

2,921

Number of shareholders*For the year ended December 31, 2018
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, 2019）

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 FOWARDING（SHENZHEN）CO., LTD.

SBS Logicom Co., Ltd.
SBS Freight Service Co., Ltd.
Nippon Record Center Co., Ltd.
SBS Global Network Co, Ltd.
SBS Logicom Kanto Co., Ltd.

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

SBS Zentsu Co., Ltd.

SharesHeldRatio ofShares Held（%）

14,888,400

37.48

Japan Trustee Services Bank, Ltd.（trust account） 5,446,900

13.71

1,424,400

3.58

The Master Trust Bank of Japan, Ltd.（Trust Account） 1,238,700

3.11

1,200,000

3.02

TOBU Properties Co., Ltd.

954,800

2.40

NORTHERN TRUST CO.（AVFC）RE IEDU UCITS
CLIENTS NON LENDING 15 PCT TREATY ACCOUNT

896,700

2.25

Junichi Ouchi

875,000

2.20

GOVERMENT OF NORWAY

814,７00

2.05

Hiroshi Date

740,200

1.86

Shareholder
Masahiko Kamata
SBS Holdings Employee Share Ownership Association
SMBC TRUST BANK Designated Securities Trust

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

SBS Sokuhai Support Co., Ltd.
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, 2019）
President

Masahiko Kamata

Directors

Kenichi Iriyama

Directors

Masato Taiji

Directors

Yoshitsugu Sato

Directors

Katsuhisa Wakamatsu

Directors
Directors

Tetsuya Sekimoto
Jiro Iwasaki

DirectorsShuichi Hoshi

Japanese corporationsSecurities firms

1,874,800 shares（4.72％）

230,271 shares（0.58％）

Treasury stock
Non-Japanese corporations
5,092,639 shares（12.82％）

Individuals
andothers

Financial institutions

22,731,678shares（57.23％）

9,788,300 shares（24.65％）

Audit & Supervisory Board Member
Yasuhiro Yamashita（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.

6

512 shares（0.00％）