Consolidated Financial Results
for the Second Quarter Ended September 30, 2018 [ Japan GAAP ]November 6, 2018

The Sumitomo Warehouse Co., Ltd.
Securities code:

9303

Stock exchange listings:

Tokyo

URL:

http://www.sumitomo-soko.co.jp/

Representative:

Takanori Ono, President

Inquiries:

Akio Kakutani, Executive Officer, General Manager,
Finance & Accounting DepartmentTel:+81 6 6444 1183

Quarterly statement filing date (as planned):

November 9, 2018

Dividend payable date (as planned):

December 3, 2018

Supplemental material of quarterly results:

Yes

Convening briefing of quarterly results:

Yes

1. Consolidated financial results for the second quarter ended September 30, 2018 (April 1, 2018-September 30, 2018)
Figures are rounded down to the nearest million yen, except per share figures.
(1) Consolidated operating results
Operating revenue
Millions of yen(％: year-on-year change)

Operating income％

Millions of yen％

Profit attributable toOrdinary income
Millions of yen

owners of parent％

Millions of yen％

Six months ended September 30, 2018

90,0404.3

3,943(20.9)

5,317(13.4)

1,703(60.1)

Six months ended September 30, 201786,302

8.2

4,987

7.9

6,143

5.1

4,265

11.1

Note: Comprehensive income:Six months ended September 30, 2018: (1,103) million yen；－%Six months ended September 30, 2017: 11,520 million yen；－%
Net income per share
Yen

Diluted net income
per share
Yen

Six months ended September 30, 2018

19.52

19.46

Six months ended September 30, 2017

47.91

47.79

* The Company conducted a 1-for-2 reverse stock split on its common shares (a consolidation of every two shares into one share, “shareconsolidation”) on October 1, 2018. Therefore, Net income per share is calculated on the assumption that “share consolidation” wasconducted at the beginning of the previous fiscal year.
(2) Consolidated financial positions
Total assets

Net assets

Capital adequacy ratio

Millions of yen

Millions of yen％

As of September 30, 2018332,647

191,008

55.4

As of March 31, 2018

342,086

193,59354.2

Note: Owner’s equity
As of September 30, 2018: 184,386 million yen
As of March 31, 2018: 185,247 million yen- 1-

2. Dividends
First quarter

Second quarter

Yen

Yen

Dividend per share
Third quarter
Fiscal year end
Yen

Year ended March 31, 2018

－

8.00

Year ending March 31, 2019

－

8.50

Year ending March 31, 2019
(Forecast)

Total

Yen

Yen

－

8.50

－

27.50

16.50

－

Note: Correction of dividend forecast from the most recent dividend forecast: None
* Dividend per share for the fiscal year ending March 31, 2019 consists of ¥13.00 for ordinary dividend and ¥14.50 for special dividend.
* The Company conducted “share consolidation” on October 1, 2018. Therefore, Dividend per share for the year ending March 31, 2019
(forecast) reflects such “share consolidation” and Total Dividend per share states “－”. Without taking into account such “shareconsolidation”, Fiscal-year-end Dividend per share for the year ending March 31, 2019 (forecast) would be ¥13.75 and Total Dividend
per share for the year ending March 31, 2019 (forecast) would be ¥22.25 (Dividend per share would be an increase of ¥5.75 comparedwith the last fiscal year). See “Explanation for the proper use of forecasts and other special instructions” for details.

3. Consolidated forecasts for the year ending March 31, 2019 (April 1, 2018-March 31, 2019)
Operating revenue

Full year

Millions of yen％

182,000

3.6

Operating income％

Millions of yen

8,950

Ordinary income
Millions of yen(13.1)

11,400％(10.1)(％: year-on-year change)
Profit attributable to
Net income
owners of parent
per share
Millions of yen

6,800

％

Yen

(18.6)

77.92

Note: Correction of financial forecast from the most recent financial forecast: None
* Net income per share in the consolidated forecasts for the year ending March 31, 2019 reflects the effect of “share consolidation”. See“Explanation for the proper use of forecasts and other special instructions” for details.

4. Other(1) Material changes in subsidiaries during this period (Changes in scope of consolidations resulting from change in subsidiaries): None(2) Applying of specific accounting of the consolidated quarterly financial statements: Yes(3) Changes in accounting policies, accounting estimates and retrospective restatement
1) Changes in accounting policies based on revisions of accounting standard: None
2) Changes in accounting policies other than ones based on revisions of accounting standard: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Number of issued and outstanding shares (common stock)
Number of issued and outstanding shares (including treasury stock):
As of September 30, 2018 : 88,186,615 shares
As of March 31, 2018 : 88,186,615 shares
Number of treasury stock:
As of September 30, 2018 : 910,630 shares
As of March 31, 2018 : 932,794 shares
Average number of shares:
Second quarter ended September 30, 2018 : 87,262,685 shares
Second quarter ended September 30, 2017 : 89,017,653 shares*The Company conducted “share consolidation” on October 1, 2018. Accordingly, the number of issued and outstanding sharesand the number of treasury stocks at September 30, 2018 and March 31, 2018 and the average number of shares for the second
quarter ended September 30, 2018 and 2017 have been calculated on the assumption that such “share consolidation” wasconducted at the beginning of the previous fiscal year.
* Status of quarterly reviewing processes
This Financial Results is not subject to review based on the Japanese Financial Instruments and Exchange Act.

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* Explanation for the proper use of forecasts and other special instructions
1. The forecasts are based on information currently available and certain assumptions judged to be reasonable. The Company’s actual
results may differ materially from the forecasts as a result of numerous factors outside of Company’s control.
2. At the 141th General shareholders' meeting held on June 27, 2018, “share consolidation” on October 1, 2018 was approved. The
Company also changed the share trading unit from 1,000 shares to 100 shares on the same date. Without taking into account such“share consolidation”, Dividends forecast and consolidated forecasts for the year ending March 31, 2019 would be as follows:(1) Dividends forecast for the year ending March 31, 2019
Dividend per share for the second quarter¥8.50 (Note 1)
Dividend per share for the fiscal year end¥13.75 (Note 2)(2) Consolidated forecasts for the year ending March 31, 2019 (full-year)
Net income per share for the year ending March 31, 2019¥38.96Note 1: Dividend per share for the second quarter will be paid according to the number of shares prior to the “share consolidation”.
Note 2: The amount has been calculated without taking into account such “share consolidation”.
Note 3: The total annual dividend per share for the year ending March 31, 2019 without taking into account such “shareconsolidation” is projected to be ¥22.25.

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Consolidated Financial Results(1) Consolidated quarterly balance sheets(Millions of yen)
As of March 31, 2018

As of September 30, 2018

45,90520,824
35
77
4,844
(129)

38,374
21,362
33
23
5,560
(118)

71,55865,235

Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Vessels, net
Tools, furniture and fixtures, net
LandConstruction in progress
Other, net

71,777
3,673
6,401
765
57,517
390
692

72,071
2,990
4,833
829
60,4852,001
615

Total property, plant and equipment

141,219

143,827

2,145
7,102
1,399
1,470

76
5,712
1,513
240

12,118

7,542

Investments and other assets
Investment securities
Long-term loans receivable
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts

108,463
506
190
1,409
6,893
(273)

108,193
498
162
384
7,075
(272)

Total investments and other assets

117,190

116,041

270,527

267,411

342,086

332,647

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Real estate for sale
Work in process
Other
Allowance for doubtful accounts
Total current assets

Intangible assets
Goodwill
Leasehold right
Software
Other
Total intangible assets

Total non-current assets
Total assets- 4-

(Millions of yen)
As of March 31, 2018

As of September 30, 2018

12,9667,000
17,948
1,953
1,644
6,875

12,9657,000
16,908
2,729
1,920
6,946

48,387

48,47033,00028,80026,642
38
2,755
7,924
943

33,00022,337
26,194
44
2,829
7,945
816

100,105

93,168

Total liabilities

148,492

141,638

Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock

14,922
15,491
99,353(1,231)

14,922
15,484
99,573(1,201)

128,537

128,779

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

52,132
3,571
1,006

52,3422,300
964

Total accumulated other comprehensive income

56,71055,607

248
8,097

303
6,318

193,593

191,008

342,086

332,647

Liabilities
Current liabilities
Notes and accounts payable-trade
Current portion of bonds
Short-term loans payable
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Provision for directors' retirement benefits
Net defined benefit liability
Long-term deposits received
Other
Total non-current liabilities

Total shareholders' equity

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets- 5-

(2) Consolidated quarterly statements of income and consolidated quarterly statements of comprehensive income(Consolidated quarterly statements of income)(Millions of yen)Six months ended
September 30, 2017

Six months ended
September 30, 2018

11,777
17,757
18,131
14,783
13,039
2,707
4,887
3,217

12,72918,282
19,226
16,273
12,407
2,787
4,955
3,377

86,302

90,040Operating cost
Cost of sales
Personal expenses
Rent expenses
Taxes and dues
Depreciation
Other

52,601
10,262
5,001
1,011
3,486
3,930

55,814
10,845
5,392
1,102
3,464
4,310

Total operating cost

76,29480,929Operating gross profit

10,008

9,110

Selling, general and administrative expenses
Salaries and allowances and welfare expenses
Provision for bonuses
Retirement benefit expenses
Amortization of goodwill
Other

2,470
382
132
177
1,857

2,559
385
109
184
1,927

5,020

5,166

Operating income

4,987

3,943

Non-operating income
Interest and dividend income
Share of profit of entities accounted for using equity method
Other

1,110
185
176

1,294
126
252

1,471

1,673

191
124

221
78

315

299

6,143

5,317

Operating revenue
Warehouse income
Harbor transportation income
International transportation income
Land transportation income
Shipping income
Rent income of warehouse and logistics facilities
Rent income of real estate
Other
Total operating revenue

Total selling, general and administrative expenses

Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income- 6-(Millions of yen)Six months ended
September 30, 2017

Six months ended
September 30, 2018

319
－
－

11
2,616
165

319

2,793

44
－
－

159
5,029
66

44

5,255

Profit before income taxes

6,419

2,855

Income taxes-current
Income taxes-deferred

1,881
(25)

2,750
464

Total income taxes

1,856

3,215

Profit (loss)

4,562

(359)

297

(2,062)

4,265

1,703

Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Penalty income
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Loss on disaster
Total extraordinary losses

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent- 7-

(Consolidated quarterly statements of comprehensive income)(Millions of yen)Six months ended
September 30, 2017

Six months ended
September 30, 2018

4,562

(359)

7,260
8
(288)
50

255
－
(841)
(41)

(72)

(116)

6,957

(744)

Comprehensive income

11,520(1,103)(Comprehensive income attributable to)
Owners of parent
Non-controlling interests

11,201319

600(1,703)

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income- 8-(3) Consolidated quarterly statements of cash flows(Millions of yen)Six months ended Six months ended
September 30, 2017 September 30, 2018
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in provisionInterest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity method
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable-trade
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Collection of loans receivable
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchase of treasury stock
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

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6,419
3,672
－
177
255
(1,110)
191
(185)
(319)
44
－
(960)
211
(45)
8,349
1,198
(198)
(1,735)
7,614

2,855
3,680
5,029
184
271
(1,294)
221
(126)
(11)
159
(2,616)
(693)
118
(466)
7,310
1,546
(231)
(2,034)
6,591(5,209)5,567(2,379)
1,252
(685)
(328)
－
19
105
(1,655)(1,083)
3,987(6,956)
16
(478)
(21)
3,013
20
(226)
(1,728)1,512(2,546)350(5,726)(3,165)(1,517)(53)(11,147)(79)(5,267)24,55919,291

1,252(1,322)
1,000(8,432)(1)(1,482)(142)(9,130)(240)(4,507)
31,29926,792

(4) Segment information
Information related to operating revenue and income (loss) by reportable segment
Six months ended September 30, 2017
Reportable segment
Adjustment(Note 1)

(Millions of yen)Amount inconsolidated
quarterlystatements ofincome(Note 2)

Logistics

Shipping

Real estate

Total

68,307

13,0394,955

86,302－86,302

317

111

197

625

(625)

－

Total

68,624

13,1505,152

86,928(625)

86,302

Segment income (loss)

5,050

(49)

2,503

7,504

(2,516)

4,987

Operating revenue
Operating revenue to outside customers
Intersegment transfers

Notes: 1. Adjustment in segment income (loss) of ¥ (2,516) million includes company-wide expenses of ¥ (2,509) million, which are notallocated to the respective reportable segments. Company-wide expenses consist mainly of the expenses not assignable to neitherof the reportable segments for administrative departments of the Company and some of its consolidated subsidiaries.
2. Segment income (loss) is adjusted to coincide with operating income as recorded on the consolidated quarterly statements ofincome.

Six months ended September 30, 2018
Reportable segment
Adjustment(Millions of yen)Amount inconsolidated
quarterlystatements ofincome(Note 2)

Logistics

Shipping

Real estate

Total(Note 1)

72,615

12,407

5,017

90,040－90,040

263

278

202

743

(743)

－

Total

72,87912,685

5,219

90,784(743)

90,040

Segment income (loss)

4,896

(802)

2,432

6,526

(2,582)

3,943

Operating revenue
Operating revenue to outside customers
Intersegment transfers

Notes: 1. Adjustment in segment income (loss) of ¥ (2,582) million includes company-wide expenses of ¥ (2,543) million, which are notallocated to the respective reportable segments. Company-wide expenses consist mainly of the expenses not assignable to neitherof the reportable segments for administrative departments of the Company and some of its consolidated subsidiaries.
2. Segment income (loss) is adjusted to coincide with operating income as recorded on the consolidated quarterly statements ofincome.

This document is an English convenience translation of a document that was originally prepared in the Japanese language and is provided forconvenience purposes only. In the event that there is a discrepancy between the Japanese and English versions, the Japanese version shallprevail.

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