Consolidated Financial Results
for the Year Ended March 31, 2018[ Japan GAAP ]May 11, 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

Date of general shareholders' meeting (as planned):

June 27, 2018

Dividend payable date (as planned):

June 28, 2018

Annual securities report filing date (as planned):

June 27, 2018

Supplemental material of annual results:

Yes

Convening briefing of annual results:

Yes

１．Consolidated financial results for the year ended March 31, 2018(April 1, 2017-March 31, 2018)
Figures are rounded down to the nearest million yen, except per share figures.
(1) Consolidated operating results
Operating revenue％

Millions of yen

Operating income％

Millions of yen(％: year-on-year change)
Profit attributable toOrdinary income
Millions of yen

owners of parent％

Millions of yen％

Year ended March 31, 2018

175,756

6.4

10,302

12.1

12,684

12.0

8,358

7.1

Year ended March 31, 2017

165,256

(4.1)

9,189

(14.7)

11,327(11.4)

7,802

(3.5)

Note: Comprehensive income:Year ended March 31, 2018 : 20,663 million yen； 71.1%
Year ended March 31, 2017 : 12,077 million yen； －%Net income
per share

Diluted net
income per share

Yen

Yen

Net income toshareholders'equity ratio％

Ordinary income
to total assets ratio％

Operating income
to operating
revenues ratio％

Year ended March 31, 2018

47.42

47.30

4.7

3.9

5.9

Year ended March 31, 2017

43.66

43.59

4.7

3.7

5.6

Note: Investment profit (loss) on equity method:Year ended March 31, 2018 : 466 million yen
Year ended March 31, 2017 : 384 million yen(2) Consolidated financial positions
Total assets

Net assets

Capital adequacy ratio

Net assets per share

Millions of yen

Millions of yen％

Yen

As of March 31, 2018342,642

193,59354.1

1,061.54

As of March 31, 2017

305,751

178,83655.9

957.00Note: Owner's equity
As of March 31, 2018: 185,247 million yen
As of March 31, 2017: 171,059 million yen(3) Consolidated cash flows
Cash flows fromoperating activities
Millions of yen

Cash flows frominvesting activities
Millions of yen

Year ended March 31, 2018

16,639Year ended March 31, 201716,629- 1-

Cash flows fromfinancing activities
Millions of yen

Cash and cash equivalents,
end of period
Millions of yen(13,268)

3,355

31,299(6,303)(9,234)24,559

2．Dividends
Dividend per shareFirst
quarter

Secondquarter

FiscalThird
quarter year end

Total

Ratio of total
Total
Payout ratio amount of dividends
to net assets
dividend paid (consolidated)(consolidated)
Millions of yen
％
％

Yen

Yen

Yen

Yen

Yen

Year ended March 31, 2017

－

7.00

－

8.50

15.50

2,770

35.5

1.7

Year ended March 31, 2018

－

8.00

－

8.50

16.50

2,878

34.8

1.6

Year ending March 31, 2019
－
8.50
－
17.00
－
34.9
(Forecast)* The Company plans to conduct a 1-for-2 reverse stock split on its common shares on October 1, 2018. Therefore, Dividend per sharefor the year ending March 31, 2019 (forecast) reflects such reverse stock split and Total Dividend per share states “－”. Without
taking into account such reverse stock split, Dividend per share for the fiscal year end of the year ending March 31, 2019 and Total
Dividend per share for the year ending March 31, 2019 (forecast) would be ¥8.50 and ¥17.00, respectively. See “Explanation for theproper 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
Millions of yen％

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

Ordinary income
Millions of yen％

Six months

89,000

3.1

5,000

0.2

6,300

2.5

Full year

181,000

3.0

10,4001.0

12,800

0.9

％

Yen

4,200

(1.5)

24.07

8,500

1.7

97.42

Millions of yen* Net income per share in the consolidated forecasts for the year ending March 31, 2019 reflects the effect of a reverse stock split.
Without taking into account such effect, Net income per share in the consolidated forecasts for the year ending March 31, 2019 wouldbe ¥48.71. 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) 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
(3) Number of issued and outstanding shares (common stock)
Number of issued and outstanding shares (including treasury stock):
As of March 31, 2018 : 176,373,231 shares
As of March 31, 2017 : 195,936,231 shares
Number of treasury stock:
As of March 31, 2018 : 11,865,588 shares
As of March 31, 2017 : 17,191,197 shares
Average number of shares:
Year ended March 31, 2018 : 176,264,243 sharesYear ended March 31, 2017 : 178,720,443 shares* Status of auditing processes
This Financial Results is not subject to audits by certified public accountants or auditing firms.
* 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-

2. At the meeting of the Board of Directors held on April 27, 2018, the Company resolved to submit a proposal for the reverse stock
split at the 141th General shareholders' meeting scheduled to be held on June 27, 2018, and plans to conduct the 1-for-2 reverse stock split
on its common shares on October 1, 2018 if such proposal is approved at the 141th General shareholders' meeting. The Company also plansto change the share trading unit from 1,000 shares to 100 shares on the same date. Without taking into account such reverse stock split,
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
Dividend per share for the fiscal year end¥8.50(2) Consolidated forecasts for the year ending March 31, 2019
Net income per share for the six months ending September 30, 2018
Net income per share for the year ending March 31, 2019- 3-

¥24.07¥48.71

Consolidated Financial Results(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2017

As of March 31, 2018

Cash and deposits

30,93345,905

Notes and accounts receivable-trade19,124

20,824

Real estate for sale41

35

Work in process

16

77

Deferred tax assets

787

738

Other

5,565

4,844

Allowance for doubtful accounts

(167)

(129)

56,30072,296

Buildings and structures, net

71,83871,777

Machinery, equipment and vehicles, net

3,814

3,673

Vessels, net

6,878

6,401

856

765

54,23057,517

Construction in progress

253

390

Other, net

656

692

138,527

141,219

Goodwill

2,492

2,145

Leasehold right

5,444

7,102

Software

1,012

1,399

Other

1,122

1,470

Total intangible assets

10,071

12,11892,382

108,463

Long-term loans receivable

113

506

Net defined benefit asset－

190

Deferred tax assets

1,880

1,226

Other

6,724

6,893

Allowance for doubtful accounts

(248)

(273)

Total investments and other assets

100,852

117,007249,451

270,345

305,751

342,642

AssetsCurrent assets

Total current assets
Non-current assets
Property, plant and equipment

Tools, furniture and fixtures, net
Land

Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities

Total non-current assets
Total assets- 4-

(Millions of yen)
As of March 31, 2017

As of March 31, 201812,155

12,966

Current portion of bonds

100

7,000

Short-term loans payable

14,081

17,948

Income taxes payable

1,819

1,953

Provision for bonuses

1,580

1,644

Other

5,733

6,880

Total current liabilities

35,47048,392

Bonds payable

25,00033,000Long-term loans payable

33,17928,800

Deferred tax liabilities

21,53027,19341

38

Net defined benefit liability

2,872

2,755

Long-term deposits received

7,894

7,924

925

943

91,444

100,655

126,915

149,048

Capital stock

21,822

14,922

Capital surplus

19,365

15,491Retained earnings

93,91099,353

Treasury stock(8,936)(1,231)

Total shareholders' equity

126,162

128,537

41,25352,132(10)－Foreign currency translation adjustment

3,231

3,571

Remeasurements of defined benefit plans

421

1,006

44,89656,710Share acquisition rights

197

248

Non-controlling interests

7,579

8,097

178,836

193,593

305,751

342,642

Liabilities
Current liabilities
Notes and accounts payable-tradeNon-current liabilities

Provision for directors' retirement benefits

Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

Total accumulated other comprehensive income

Total net assets
Total liabilities and net assets- 5-

(2) Consolidated statements of income and consolidated statements of comprehensive income(Consolidated statements of income)(Millions of yen)
Year ended

Year ended

March 31, 2017

March 31, 2018

Operating revenue
Warehouse income
Harbor transportation income

22,96835,33524,09135,429International transportation income
Land transportation income
Shipping income

32,68927,80225,02438,02630,213
26,036

Rent income of warehouse and logistics facilities
Rent income of real estate
Other

5,613
9,707
6,114

5,433
9,787
6,738

165,256

175,756

Cost of sales
Personal expenses
Rent expenses

99,37019,691
10,124

107,315
20,925
10,268

Taxes and dues

2,108

2,050

Depreciation
Other

7,335
7,633

7,092
8,065

Total operating cost

146,264

155,716

Operating gross profit

18,992

20,039

Salaries and allowances and welfare expenses
Provision for bonuses
Retirement benefit expenses
Amortization of goodwill
Other

5,022
323
271
435
3,749

5,194
337
247
362
3,595

Total selling, general and administrative expenses

9,802

9,737

Operating income

9,189

10,302Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Other

93
1,850
384
365

101
2,098
466
343

2,693

3,010

439
－

391
83

Other

115

153

Total non-operating expenses

555

628

11,327

12,684

Total operating revenue
Operating cost

Selling, general and administrative expenses

Total non-operating income
Non-operating expenses
Interest expenses
Bond issuance cost

Ordinary income- 6-(Millions of yen)
Year ended

Year ended

March 31, 2017

March 31, 2018

Extraordinary income
Gain on sales of non-current assets
Gain on donation of non-current assets

33－

Compensation income

401－

Gain on sales of investment securities
Gain on reversal of share acquisition rights

342
28
－

32

299
－

467

669

Loss on retirement of non-current assets

174

Loss on valuation of investment securities
Compensation expenses

35
－

157
－

Total extraordinary losses

209

327

Profit before income taxes

11,586

13,026

Income taxes-current
Income taxes-deferred

3,251
202

3,754
500

Total income taxes

3,454

4,254

Profit

8,131

8,771

329

413

7,802

8,358

Total extraordinary income
Extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

- 7-

170

(Consolidated statements of comprehensive income)(Millions of yen)
Year ended
March 31, 2017

Year ended
March 31, 2018

8,131

8,771

5,085
25
(1,194)301

10,925
16
313
583

(273)

53

3,945

11,892Comprehensive income

12,077

20,663(Comprehensive income attributable to)
Owners of parent
Non-controlling interests

11,777300

20,172
491

ProfitOther 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 statements of changes in net assets
Year ended March 31, 2017
(Millions of yen)
Shareholders' equity

Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance

Capital stock

Capital surplus

Retained earnings

21,822

19,23888,782

Treasury stock

Total shareholders' equity(8,952)

120,891

6
21,822

19,238

6

88,788(8,952)

120,897

Changes of items during
periodDividends of surplus(2,680)(2,680)

Profit attributable toowners of parent

7,802

7,802

Purchase of treasury stock
Disposal of treasury stock(0)

Changes in parent's
ownership interests due totransactions with noncontrolling shareholders

126

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period

(4)

(4)

20

20
126

－

126

5,121

15

5,264

21,822

19,36593,910(8,936)

126,162

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance

36,22436,224

Total
Share
NonDeferred Foreign
Remeasurements accumulated acquisition controlling
gains or currencyof definedotherrightsinterests
losses on translation
benefit plans comprehensive
hedges adjustment
income

(25)

(25)

4,598

4,598

124

124

40,92140,921

163

163

Total net
assets7,474

169,451

3

10

7,478

169,461

Changes of items during
periodDividends of surplus(2,680)

Profit attributable toowners of parent

7,802

Purchase of treasury stock(4)

Disposal of treasury stock

20

Changes in parent's
ownership interests due
to transactions with noncontrolling shareholders
Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period

126
5,028

15

(1,367)

297

3,974

33

101

4,110

5,028

15

(1,367)

297

3,974

33

101

9,374

41,253

(10)

3,231

421

44,896

197

7,579

178,836- 9-

Year ended March 31, 2018
(Millions of yen)
Shareholders' equity

Balance at beginning ofcurrent period
Changes of items during
periodTransfer to other capitalsurplus from capital stock

Capital stock

Capital surplus

Retained earnings

Treasury stock

Total shareholders' equity

21,822

19,36593,910(8,936)

126,162(6,900)6,900

Dividends of surplus(2,914)(2,914)

Profit attributable toowners of parent

8,358

8,358
(3,167)(3,167)

15

83

98

(10,789)

10,789Purchase of treasury stock
Disposal of treasury stock
Retirement of treasurystock
Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period(6,900)(3,874)

5,443

7,705

2,374

14,922

15,491

99,353(1,231)

128,537

Accumulated other comprehensive income
Total
Share
NonValuation
Deferred Foreign
Remeasurements accumulated acquisition controlling
difference on gains or currencyof definedotherrightsinterests
available-for- losses on translation
benefit plans comprehensive
sale securities hedges adjustment
incomeBalance at beginning ofcurrent period
Changes of items during
periodTransfer to other capitalsurplus from capital stock

41,253

(10)

3,231

421

44,896

197

7,579

Total net
assets

178,836

Dividends of surplus(2,914)

Profit attributable toowners of parent

8,358

Purchase of treasury stock(3,167)

Disposal of treasury stock98

Retirement of treasurystock
Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period10,879

10

339

584

11,81351

518

12,383

10,879

10

339

584

11,81351

518

14,75752,132

－

3,571

1,006

56,710248

8,097

193,593- 10 -

(4) Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Gain on donation of non-current assets
Compensation income
Gain on reversal of share acquisition rights
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors' retirement benefits
Increase (decrease) in provision for bonuses
Interest 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
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable-trade
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in deposits received
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Proceeds from compensation
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
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities- 11 -

Year ended
March 31, 2017

Year ended
March 31, 2018

11,586
7,736
－
(401)
(32)
435
62
453
(22)
(130)
(1,943)
439
(384)
(33)
174
－
35
(729)
963
117
488
18,812
1,956
(440)
401
(4,100)16,62913,026
7,473
(28)
－
－
362
(37)
449
(3)
58
(2,200)
391
(466)
(342)
157
(299)
－
(1,338)594
110
44
17,952
2,282
(397)
－
(3,197)
16,639(18,060)
24,454(11,626)
46
(950)
(65)
43

(18,464)
10,388(5,632)
1,281(1,177)
(36)
449

－

(143)

(93)
36
(87)
(6,303)(17)
34
49(13,268)(Millions of yen)

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
Proceeds from issuance of bonds
Redemption of bonds
Proceeds from sales of treasury stock
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
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- 12 -

Year ended
March 31, 2017

Year ended
March 31, 2018

5,938
(5,734)
1,925(8,359)
－
(100)
16
(4)
(2,680)(69)(165)(9,234)(480)
611
23,94824,5592,879(7,033)6,650(7,822)
15,000(100)
79(3,167)(2,913)
(73)
(142)
3,355
12
6,739
24,55931,299(5) Segment Information[Segment Information]
1. General information about reportable segments
The reportable segments are the components of our Group, for each of which discrete financial information is available, and whose
operating results are regularly reviewed by the Company’s board of directors to make decisions about resources to be allocated to eachsegment and assess its performance.
The Company, in cooperation with its domestic and overseas subsidiaries, operates “Logistics business” including warehousing, harbortransportation, international transportation and land transportation etc., which, constituting respective parts of total logistics business, have amutual relationship to each other and are deemed to be inseparable in management of the Company, and “Shipping business” consisting
mainly of vessel operations on the routes between the northwest coast of North America and East Asia by our subsidiary Westwood ShippingLines, Inc. In addition to these, the Company promotes “Real estate business” including leasing and sales of real estate etc., with a dedicateddepartment in its head office, mainly in such way as to put its real estate to more effective use.
The Company’s business comprises the segments corresponding to each business as mentioned above, and the Company presents“Logistics”, “Real estate” and “Shipping” as its three reportable segments.

2. Information related to operating revenue, income (loss), assets, and other items by reportable segment
Year ended March 31, 2017
Reportable segment
Adjustment
Logistics

Shipping

Real estate

Total(Note 1)

130,426

25,024

9,805

165,256－(Millions of yen)Amount inconsolidated
statements ofincome(Note 2)

Operating revenue
Operating revenue to outside customers
Intersegment transfers
Total
Segment income (loss)
Segment assets

165,256

629

159

366

1,155

(1,155)－131,055

25,183

10,172

166,411(1,155)

165,256

9,772

(347)

4,569

13,993(4,804)9,189

136,827

17,39944,544

198,771

106,979

305,751

4,200

518

2,506

7,225

511

7,736

66

369

－

435

－

435

5,740

25

－

5,766

－

5,766

5,913

510

5,141

11,565354

11,919Other items
Depreciation
Amortization of goodwill
Investment in associates accounted for byequity method
Additions to property, plant and equipment
and intangible assets
Notes: 1. (1) Adjustment in segment income (loss) of ¥ -4,804 million includes company-wide expenses of ¥ -4,802 million, which are notallocated to the respective reportable segments. Company-wide expenses consist mainly of the expenses not assignable toneither of the reportable segments for administrative departments of the Company and some of its consolidated subsidiaries.
(2) Adjustment in segment assets of ¥ 106,979 million includes company-wide assets of ¥ 107,037 million, which are notallocated to the respective reportable segments. Company-wide assets consist mainly of working funds (cash and deposits),
long-term investments (investment securities) and assets of administrative departments, of the Company and some of its
consolidated subsidiaries, which are not assignable to neither of the reportable segments.
(3) Adjustment in additions to property, plant and equipment and intangible assets of ¥ 354 million consist of the capital
investments not assignable to neither of the reportable segments for administrative departments of the Company and some ofits consolidated subsidiaries.
2. Segment income (loss) is adjusted to coincide with operating income as recorded on the consolidated statements of income.

- 13 -

Year ended March 31, 2018
Reportable segment
Adjustment
Logistics

Shipping

Real estate

Total(Note 1)

139,523

26,036

10,196

175,756－(Millions of yen)Amount inconsolidated
statements ofincome(Note 2)

Operating revenue
Operating revenue to outside customers
Intersegment transfers
Total
Segment income (loss)
Segment assets

175,756

591

386

399

1,376

(1,376)－140,114

26,422

10,595

177,133(1,376)

175,756

9,865

(76)

5,250

15,038(4,736)

10,302

146,246

15,94544,764

206,956

135,686

342,642

4,126

526

2,346

6,999

474

7,473

4

358

－

362

－

362

6,171

22

－

6,193

－

6,193

3,697

542

2,706

6,947

768

7,715

Other items
Depreciation
Amortization of goodwill
Investment in associates accounted for byequity method
Additions to property, plant and equipment
and intangible assets
Notes: 1. (1) Adjustment in segment income (loss) of ¥ -4,736 million includes company-wide expenses of ¥ -4,795 million, which are notallocated to the respective reportable segments. Company-wide expenses consist mainly of the expenses not assignable toneither of the reportable segments for administrative departments of the Company and some of its consolidated subsidiaries.
(2) Adjustment in segment assets of ¥ 135,686 million includes company-wide assets of ¥ 135,991 million, which are notallocated to the respective reportable segments. Company-wide assets consist mainly of working funds (cash and deposits),
long-term investments (investment securities) and assets of administrative departments, of the Company and some of its
consolidated subsidiaries, which are not assignable to neither of the reportable segments.
(3) Adjustment in additions to property, plant and equipment and intangible assets of ¥ 768 million consist of the capital
investments not assignable to neither of the reportable segments for administrative departments of the Company and some ofits consolidated subsidiaries.
2. Segment income (loss) is adjusted to coincide with operating income as recorded on the consolidated statements of income.

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between thistranslated document and the Japanese original, the original shall prevail.

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