SBS Business Report
For the year ended December 31, 2011 (Security Code: 2384)

Business Hi g h l i g h t s
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 client
needs

Entry in Top 10 of the industry(Human resources,
Environment-related,
Marketing)

Logistics
92.6％

For the year ended December 31, 20112012 Forecast¥127.0billionthe logistic functions in all directions

Other 5.4％

Property Management
2.0％

Net Sales

3PL Corporate Group which has

Operating
Income¥2.9

Dividend per
Share

¥30

billion

3 Strategies

Expand 3PL
and 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※ Dividend per share shown is calculated on the basis of stock split/share trading unit system we recently switched to.
※ Please refer to the notes on the last page for details about stock split and adoption of the share trading unit system.

Logistics
Business

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

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

Specialized●Same-day Delivery ●3PL
Logistics

Logistics Support
Business

Property
Management
Other

Others●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

Message fro m t h e P r e s i d e n t
SBS Business Report

Promise to advance full speed ahead
for the next 25 years and achieve
further growth.
Representative Director and President: Masahiko Kamata

QA

Can you tell us about the Company's
business results of the current year
under review (year ended
December, 2011)?

of net income by the switchover to theconsolidated tax return system, but interms of the actual contents, the result
was not really satisfactory.

For someone like me in the leading
position, it was surely a difficultyear. After the Great East Japan Earth-

Q

What are the current domestic
trends in the logistics industry?

more or less restored, but to recover theA

Due to the progressing deflation

amount of cargo took some more time.

companies relocating to the overseas

The Group also felt impact of the flooding

propelled by the appreciation of yen, thein Thailand, the European financial crisis,

domestic logistics businesses are still ex-

and some other adversary events, so inperiencing severe conditions, and I thinkterms of business environment the severethat this trend will continue for somesituation continued. But even though thetime at least. The number of logistics en-

circumstances were by no means favor-

terprises is also decreasing, with many

able, the Group managed to increase thecompanies engaging in restructuring,income especially thanks to the activities

that is, entering into alliances to competeof the companies, which newly joined theagainst others. And my view of the situa-

Group through mergers and acquisitions,tion is that the fight for survival will get

and we also achieved an increase of 18%

even more intense in the future.

quake, we put all our strength into revival
effort, and by June the facilities of theGroup that incurred damages have been

and the increase in the number of2

Massage from t h e P r e s i d e n t
SBS Business Report

Q
A

What kind of measures haveyou adopted in these severe
circumstances?
We strove hard to raise the powerof the company to make enticing

offers to the customers focusing on 3PL,
enforced measures to lower the costs,
striving to improve the Group in terms of
its competitive power. Also, in order toprepare ourselves for the future overseas
expansion, we invited an Indian forwarderto the Group, promoting the functional
enhancement of the international logistics

growing market. In addition to thereinforcement of the Group's competitive
power domestically, we will aim at further
development by advancing into the overseas
markets. We will continue investing in theoverseas development in the future, and will
actively promote our expansion overseas byefficiently employing the collective strengthof the Group by tight cooperation between
the companies of the Group in Japan andthose overseas. Besides India, we plan toexpand our business scale centering on
China and the ASEAN member nations.

functions. We also endeavored to reinforce
the compliance issues in the area of internal
control, putting emphasis on construction

Q

What are the prospects for this year
(year ending December, 2012)?

A

In terms of sales, it is already pos-of organization control with high transparency, this way ensuring that the Group canaccomplish its social responsibilities. I believethat we managed to create a structure thatwill enable us to win straight victories evenin the present harsh situation with its accelerating tendency of rearrangement in theindustry.

Q

Does the Group intend to makea full-fledged expansion into
the overseas in the future?

sible to see the results of the various

measures we adopted starting from thesecond half of the previous year, and we
expect the operating performance of
this term to recover. But although we intend
to lay emphasis on steadily promoting thepresent businesses, we will also aim atconstruction of a more solid group including
such measures as reorganizations or having
new companies entering the Group. I
should also add that we have steadily

Atlas, which is an Indian company,

raised the level in the area of CSR activities

whose shares we acquired last year,

last year and received high acclaim fromis an international logistics company

the society.* We intend to continue ourowning 26 offices in India and overseas

efforts to manage the Group so as tobases in 14 other countries. By having thisensure high standards of CSR, gaining fur-company enter the Group, we were able

ther trust from the society.

A

to gain a powerful logistics network
overseas based in India, which is a quickly

3＊ For details, please refer to page 6.

Massage fro m t h e P r e s i d e n t
SBS Business Reporton our long-term vision for the future,Q

In the end, can I ask you to give amessage for the shareholders?

A

Thanks to the stable support of oura group even more trusted by the society

shareholders, the SBS Holdings

as one of the leading companies of thewill celebrate its 25th anniversary of estab-industry. To our shareholders, I would likelishment this year. Without letting the successto say that we will further improve the

go to our heads and falling into self-conceit,

profitability of the business, and return

we intend to advance full speed ahead foryour contributions by improving the stock

the next 25 years also, and achieve yet fur-

prices and with dividends. I can assure you

ther growth. We will strive to expand thethat you can put your trust in our Group.

making a great leap leveraging the expectedindustry realignment, and striving to become

enterprise both carefully and boldly based■ A few words about Atlas
Atlas (Atlas Logistics Private Limited) is a global company engaged in logistics with
headquarters in Bangalore, India, owning 26 offices in India and overseas bases in 14 other countries.
〈Asian bloc〉

Atlas(Bangalore, India)〈North America〉〈Europe〉

4Special Fea t u r e A r t i c l e s
SBS Business Report■ Major events of the SBS Group in 2011

March

July

Supporting the areas damagedby the earthquake as one.

Logistics centers damaged by tsunami
resume operations.

The Group provided a total of 500 large-size vehicles
for transportation of emergency-relief goods to theareas damaged by theGreat East Japan Earthquake. It also donated acontribution and theemployees conducted a
voluntary fund-raising
campaign.

Three centers located in the Sendai area, which suffered a great deal of damage from tsunami, resumed
operations either by
repairs or relocations by
July. This meant that logistics centers handling lowtemperature foods for thewhole Southern Tohoku
Area were restored.

April

October(acquired by TL Logicom Co., Ltd.)NIPPON RECORD CENTER Company,
Limited. becomes a member of the SBS Group.
A subsidiary of JVC KENWOOD Group, NIPPONRECORD CENTER Company, Limited. became amember of the Group. With this addition, the Groupacquired the 3PL work handling music and video mediums, at the same time gaining the logistics knowhow of handling products of a wide variety
often produced in smalllots, a know-how we canuse to aim for further
business expansion.

5(Foods Lec)

The ﬁrst overseas subsidiary is acquired
as a ﬁrst step to reinforce the international
logistics function.
An Indian international logistics company, Atlas
Logistics Private Ltd., enters the Group becoming
our first overseas subsidiary. The Group tackles
expansion of its international logistics network, enrichment of
the service menu, andstrengthening its international logistics function.

May to OctoberDecember

The Group as one conducts various
power saving measures.

Acquisition of G-mark certiﬁcation
promoted to ensure safe operation.

To deal with shortages of electric power supply
after the earthquake, the Group as a whole leads
the industry in adopting
various power saving
measures such as
implementation of coolbiz or creating "green
curtains".

As an effort to ensure safe operation, the Group
promotes acquisition of G-mark certification. The
number of offices certified with G-mark has
increased from 52 to 67
by the end of the year,
reaching the percentage
of 50 percent largely
exceeding the national
average of 20 percent.

Special Fea t u r e A r t i c l e s
SBS Business Report

CSR activities of the SBS GroupAs a logistics enterprise shouldering social

comprehensively evaluate the environmental

infrastructure, the SBS Group fully recog-

measures conducted by various companies.

nizes the importance of its social responsibil-

In the 15th survey results published on theity, is actively striving to ensure high stan-

30th of January, the SBS group ranked 13th

dards of CSR in its management and is con-in the transportation section, showing thetributing to creation of a truly rich society.

high acclaim it received for its environmental

With the increasing aggravation of the en-measures. The Group intends to actively pro-vironmental problems, the environmental

mote yet higher standards of CSR in its man-considerations in business activities are be-agement including environmental measures

coming a very important managerial task.

in the future.

Following the SBS Group Environmental
Policy stipulated to serve as the basic action
policy for environmental preservation the
SBS Group is creating and implementing a
number of environmental projects.
Since 1997, Nikkei Inc. annually releases its

15th Nikkei Environment
Management Survey

SBS Group: 13th place in the"Nikkei Environment Management Survey" totransportation section

Publication of 2011 SBS Group CSR Report
To inform the society of the CSR activities of theGroup, we published the "2011 SBS Group CSR
Report." This CSR report tells of the annual results of the2011 SBS GroupCSR Reportmeasures adopted by the Group in the areas of safety,
environmental preservation, and other importantmanagerial tasks, and is at the same time a declarationof intention regarding the targets and tasks we aim toachieve in the future.
You can download the CSR report from the website of
SBS Holdings. Please refer to it for further details.
http://www.sbs-group.co.jp/eco/img/eco2011.pdf

6

Consolidated Financial Highlights
SBS Business Report

Although the business environment continued to be severe, net sales of the Group
increased compared to the preceding year due to the expansion of the 3PL work and theeﬀects of mergers and acquisitions. On the other hand, the demand for logistics which
deteriorated after the Great East Japan Earthquake recovered slower than was expected,
and as the operating ratio of facilities, vehicles, and personnel shifted to low ﬁgures, boththe operating income and the ordinary income decreased. Nevertheless, the net income
increased by the switchover to the consolidated tax return system and other measures.

■ Net Sales■ Operating Income(Millions of yen)

(Millions of yen)
150,000

147,097

YOY Change

139,405

1.1%up115,710 119,824 121,148

120,000

YOY Change

8,000
7,000

48.9%down

6,794

6,000
5,000

90,000

4,262

4,000
60,000

3,325

3,000

2,888
2,177

2,000

30,000

1,000
0

2007

2008

2009

2010

2011

0

2007

■ Ordinary Income■ Net Income(Millions of yen)

(Millions of yen)

8,000

7,901

YOY Change

61.5%down

7,000

5,000

3,995

4,000

3,748

2010

2011

YOY Change

17.8%up

4,054

3,000

4,291

1,988

2,000

3,000

1,653

2,000

2009

5,000

4,000

6,000

2008

2,140

2,522

960

1,000

1,000
0

7

2007

2008

2009

2010

2011

0

2007

2008

2009

2010

2011

Consolidated Financial Highlights
SBS Business Report■ Cash Flows Status■ Net Income per Share(yen)
35,000Cash Inflow

Balance

31,072

Cash Outflow(Millions of yen)

30,00015,00025,00020,00016,273

17,514

3,711
Operating
Activities

20,51015,00010,000

7,712

7,382

0

2007

2008

2009

2010

5,000

2011

Balance at
Beginning of Term

5,000

（3,765）nvesting
Activities

0

FY2011■ Sales by Segment(Millions of yen)

2011

Net Sales

OperatingOperating
Net Sales
IncomeIncome1,265 107,002

1,761

2,413

1,101

6,402

2,262

Other

6,540

（211） 7,531

141

Adjustment

（832）

Total

113,026

121,148

Balance at
End ofTerm

2010

Property
Management

Logistics

9,212
Balance at
End of Term

10,000

1,884
Financing
Activities

23

98（1,112）

2,177 119,824

4,262

Cash flow status
Due to acquisition of subsidiary shares inmergers and acquisitions, net cash used ininvesting activities amounted to 3,765 million
yen, but capital procurement resulted in the
cash and the cash equivalent at this end of theconsolidated ﬁscal year constituting 9,212

Sales by Segment

million yen.

● Logistics Business：although in general thelogistics made little increase in performance dueto the downturn in consumer spending, theimpact of the appreciation of yen, and otherreasons, the efforts to expand the business scaleof the 3PL work bore fruit resulting in an
increase in net sales.
● Logistics Support Business： in the property

management, there were no sales oflogistics-related property, and as the demand for
temporary workers in the other segment
continued to decrease, net sales decreased.

8

Consolidated Financial Highlights
SBS Business Report■ Total Assets / Net Debt Equity /Net Debt Equity Ratio
Total Assets

Net Debt Equity(Millions of yen)
1,200

105,913 108,488

900

248％

Net Debt Equity Ratio

（％）
300

107,201
96,408242％■ Net Assets / Equity Ratio
Net Assets(Millions of yen)
25,000100,747
250

223％

20,00019,434Equity Ratio

25,065 （％）
22,616
18,59820,23840

15,000600

47,38145,884

46,25137,287

165％

300

0

200

2007

2008

2009

157％

2010

10,00039,090

2011

150

100

5,000

0

18.1％ 16.8％

18.6％

2007

2009

2008

23.2％

2010

24.5％

2011

Basic Policies regarding the Profit Distribution■ ■ Dividend per Share

Basic Policies regarding the Profit Distribution
SBS Group regards the return of proﬁts to all

（yen）
35

30.0

30
25

23.0

30.0

30.0

business policies. Based on our group s businessachievement and ﬁnancial situations, we will23.0

address for the stable shareholder return20

through our eﬀorts to further strengthen ourmanagement base and to increase in return on

15

equity. We are expecting our dividend to remain

10

the same as we announced at the beginning of
the year at 3,000 yen per share for the year

50

shareholders to be one of its most important

ending December 2011.
2008

2009

2010

2011

2012
(Forecast)※Dividend per share shown is calculated on the basis of stock
split/share trading unit system we recently switched to.

For the year ending December, 2012, we
intend to pay dividend of 30 yen per share. The
Group adopted the share trading unit system asof January 1, 2012, splitting every share into
100 shares, but for every share trading unit (100shares) the dividend is 3,000 yen, which is thesame amount it was during the current term.
＊Please refer to the notes on the last page for details about
stock split and adoption of the share trading unit system.

9

20

0

Corporate Profile & Stock Information
SBS Business Report

Corporate ProﬁleCompany name

Stock Information(As of December 31, 2011)

SBS Holdings, Inc.

Representative
director and president

Masahiko Kamata

FoundedDecember 16, 1987

Paid-in Capital¥3,833.93 million

Net sales¥121.1 billion (for the year ended December 31, 2011)

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
Major consolidated
subsidiaries(As of December 31, 2011)

Number of shares authorized

515,684 shares

Number of shares issued

130,684 shares

Share trading unit

None

Number of shareholders

3,813

Major Shareholders(As of December 31, 2011)

Shareholder Name

Number ofshares held
(shares)

Ratio ofshare held(%)

Logistics, property management, marketing,Masahiko Kamata

64,12850.16

human resources, etc.

Japan Trustee Services Bank, Ltd. (Trust account)

5,462

4.27

TL LOGICOM Co., Ltd.

SBS Holdings Employee Share Ownership
Association

4,460

3.48

Hiroshi Date

3,848

3.01

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

3,348

2.61

Junichi Ouchi

3,094

2.42

Sogo Butsuryu System Co., Ltd.

MELLON BANK, N. A. TREATY CLIENTOMNIBUS

2,000

1.56

SBS Finance Co., Ltd.

Hiroyuki Yoshioka

A-MAX Co., Ltd.

3E Corporation

1,889

1.47

Marketing Partner Co., Ltd.

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

1,560

1.22

1,142

0.89

Foods Lec Co., Ltd.
Zentsu Co., Ltd.
SBS Logitem Co., Ltd.
SBS Staﬀ Co., Ltd.
Atlas Logistics Private Limited

Forward

The ratio of share held are calculated based on the number ofshares excluding 2,856 of treasury shares. Treasury shares does
not include 4,245 shares held by our employee share ownershipassociation.

PAM Co., Ltd.

Board of Directors and Auditors(As of March 27, 2012)

Representative director and president

Masahiko Kamata

Managing director

Kenichi Iriyama

Directors

Fumiaki Miyasaka

Distribution of Shares by Shareholder Type(As of December 31, 2011)
Treasury stock

Japanese Corporations

Shin-ichiro Watanabe

4,331 shares（3.31％）

Full-time auditor

Tamio Wakabayashi

Auditors

Shigetaka Shomatsumoto

7,123 shares（5.45％）

2,856 shares（2.19％）

Non-Japanese Corporation

Masato Takeda

Securities ﬁrms

1,098 shares（0.84％）

Financial institutions

9,921 shares（7.59％）Jiro Iwasaki
The auditors Shigetaka Shomatsumoto, Masato Takeda and Jiro Iwasaki
are the external auditors.

Individuals and others

105,355 shares（80.62％）

Note Regarding Adoption of the Stock Split/Unit Stock System
In accordance with the Action Plan for the Consolidation of Trading Units announced by Japanese Stock Exchanges Conference on November 27, 2007,
our company divided its shares and adopted the unit stock system deﬁning 100 shares as one unit. There will be no actual impact of the shareholders
due to the adoption of the stock split/unit stock system. As the eﬀective date of the adoption is January 1, 2012, this system will not be applied to thedividends for the ﬁscal term ended December 31, 2011.

● Brief outline of the system● Impact on the shareholders: no actual changes made.

Record date: December 31, 2011
Eﬀective date: January 1, 2012

【Investment unit】
If the stock price is ¥100,000【Amount of dividend received】
If the dividend is ¥3,000 per share

Up to now :1 shareUp to now :¥100,000 x 1 share = ¥100,000¥3,000 x 1 share = ¥3,000

After adoptionof the stock split/
unit stock system :100 shares(one unit)

After adoptionof the stock split/
unit stock system :¥1,000 x 100 shares (one unit) = ¥100,000¥30 x 100 shares (one unit) = ¥3,00010