IR DAY 2023

Long-Term Vision and Roadmap 2028
Toward Enhanced Corporate Value
through Green Logistics
June 12, 2023

Seino Holdings Co., Ltd.(9076)

Contents

01

The Path to the Early Realization of a PBR of
More Than 1x

02

Medium- to Long-Term Management Direction

03

Intangible Assets Supporting Value Creation

04

Looking Back on the Previous Medium-Term
Management Plan

Our Ideals and Roadmap 2028

Reference2

About Seino Holdings

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

What We Hope to Convey Today Through growth and the application of appropriate capital policies, we areworking toward the early achievement of a PBR of more than 1x and ROEof 8.0% or higher.
 In addition to addressing medium- and long-term issues, such asenvironmental problems and labor shortages, we will build a platform torealize green logistics and increase social and economic value by looking
ahead to the 2024 problem—a pressing issue for our industry.
 We have drawn a map to the future, but we recognize that the resolution isstill low. We look forward to strengthening our disclosure and investor
relations, and to engaging in dialogue with our shareholders and investors
to create a better map that we can share with you.

3

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01

The Path to the Early Realizationof a PBR of More Than 1x

01

The Path to the Early Realizationof a PBR of More Than 1x

We aim to realize a PBR of more than 1x at an early date and achieve ROE of 8.0% or higher over three
to five years. Meanwhile, we have formulated a roadmap for corporate value creation to raise PER froma medium- to long-term perspective. Furthermore, we aim to strengthen disclosure and investor
relations and enhance dialogue with shareholders and investors.
Improve through profit growth andappropriate capital policies

PBR

=

ROE

x

PER

PER

x

EPS

=

Share
price

Increase as a result ofReinforce IR toprofit growth andcommunicate ourgorwth as a leader in share buybacks
green logistics

Quickly realize PBR of more than 1x
5

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ReferenceLong-Term Trends for ROE, EPS,
PER, PBR, and Share Price
10.0%

8.0%

ROE

5.0%

0.0%
-5.0%

EPS growth of 15-20%

400

EPS (left scale)PER (right scale)

200

20

0

0

-200

-20

1.5

PBR (left scale)

3,000
More than
1.0x
2,000

Share price at year-end (right scale)

1.0

Quickly
exceed 1x

0.5
0.0

1,000

FY03/23

FY03/22

FY03/21

FY03/20

FY03/19

FY03/18

FY03/17

FY03/16

FY03/15

FY03/14

FY03/13

FY03/12

FY03/11

FY03/10

FY03/09

FY03/08

FY03/07

FY03/06

FY03/05

0

FY03/04640

3-5 years

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02

Medium- to Long-Term
Management Direction
Our Ideals and Roadmap 2028
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The President’s Thoughts:
My Growth Story Everything we do is centered on the prosperity of our customers. This is ourlinchpin and topmost priority.
 We will promote efficiency through green logistics. By doing so, we will help toaddress environmental measures and labor shortages, which are increasingly
becoming pain points for our customers.
 We believe that efficiency requires one-stop information (intangible assets) andinfrastructure (tangible assets).
 We will address investment in human resources and one-stop information
through collaboration and DX. In infrastructure, we will utilize in-house
investment and make active use of external facilities.

 We do not seek to be a monopoly in logistics. Rather, we will act as an industry
window, helping to design the partnerships that are best for our customers,
including through the use of other companies.
 We believe our business will grow and our corporate value will increase as aresult of the contributions we make to our customers and society.
8

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Thoughts on the Unveiling of Our
Medium-Term Roadmap
 To date, we have announced “medium-term plans,” which focus on profits/losses.
We have transitioned to a “medium-term roadmap,” which sketches a pathway toenhanced corporate value. We are moving away from plans that focus on scale
and profit/loss and toward a style of management that emphasizes cash flow,
capital efficiency (ROE), and capital policy.

Background for the shift away from conventional medium-term plans We faced the reality that in the past, we have sometimes failed to reach the goals
set in our medium-term management plans.
 Given the rapid changes in our operating environment and the option of M&A, we
decided that a three-year plan for operating revenue and operating income (withnumerical targets for each fiscal year), based on growth in each business area, wasno longer suited to the times.
 We are transforming our management approach to one of backcasting from ourideals and revising our response measures as necessary to achieve them. To thisend, rather than changing our operating revenue and profit forecasts each year,
going forward we will announce the rate of growth we are targeting and the
profitability and efficiency targets we aim to reach.
9

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Our Directions for Medium- to
Long-Term Growth (Reiteration)

 Looking ahead to the 2024 problem, build a platform to realize green logistics
 Promote stable growth and efficiency improvements, leveraging the superiority of
our core business: Less than Truckload Shift toward a highly profitable business structure, driven by the growth engines ofhighly efficient logistics and charter transport
 Develop measures that balance growth, profitability, and capital efficiency

10

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Creating together and contributing to the future

We need to optimize sustainable logistics networks in order to address the social
issues facing Japan: a declining birthrate, an aging population, and environmental
problems.
Based on the concept of an open public platform, we will strengthen cooperation withcustomers and various partners to promote environmental consideration throughout
the supply chain, working together to create green logistics.
As we do so, we will strive to create an atmosphere in which all employees keep intune with our corporate philosophy, respecting each other and contributing to a futurein which we “connect hearts and minds” to go beyond logistics and become thecompany of choice for our customers.
11

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The Aims of Team Green Logistics

Developing green logistics by using an open public platform (O.P.P.)
that extends beyond industry and corporate boundaries

Green
Achieving a worldview based oncleaning the air, rather than moving it
 Contribute to the efficiency of the entire
logistics industry by integrating, matching,and sharing digital and physicalresources Build an environmentally friendly logistics
ecosystem

One Stop
Stress-freeconvenience Build a digital platform thateasily connects with peers andother industries
 Provide customers with supply
chain optimization

12

Customerprosperity

SupportWorking on behalfof customers to
reduce pain points
 Help address the hassles
customers face in peripheral
areas, from a logistics
perspective
 Support management so
customers can focus on theircore businesses
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Realizing Green Logistics throughthe Physical Internet

Liberate assets

Strengthen ties withpartner companies

Share information quickly

Increase loading ratios

Connect transportation data held by customers and companies in the transportation services
business on a digital platform, and contribute to the efficiency of the entire logistics industry withassets that can be openly utilized, such as relay centers.
13

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Roadmap 2028
Achieving Growth andImproving Capital Efficiency
Composition of operating revenue in theTransportation Services Business(Seino Transportation)

FY03/23

In 3–5 years

Percentage of
operating revenue
generated by thelogistics and charterbusinesses

Percentage of
operating revenue
generated by thelogistics and charterbusinesses

Approx. 20%

Approx. 35%

Increase our percentage of operating
revenue from the highly profitable
logistics and charter businesses to onethird of the total

Backcasting

8.0%
Operating revenue

5.8%

Operating margin
ROE

4.5%

4.3%

3-5 years

14

Our ideal

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Our Understanding of the Environment and
Growth Opportunities for the Company
External environment
Increasingly severe shortageof truck drivers

Small and medium-sizedtransport operators going out
of business

Shift to in-house operation, due
to concerns about not being
able to fulfill outsourcing needs

Rising logistics costs

Need to cut CO2

Faster technological innovation
driving changes in theindustrial structure

Growth opportunities for Seino
Improve efficiency throughout thelogistics industry

Reduce costs, make use of extra
assets and space(warehouses, trucks)

Create a new business model that
integrates digital and physical

Foster collaboration amongtransport operators, shippers, andlogistics companies

Promoting solutions to social issues across corporate boundaries with an open logistics
platform should boost customer prosperity and lead to growth opportunities for us.
15

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Maintaining Our Leading Edge andExpanding in Growth Areas
We have a track record of meeting the needs of 860,000 companies. As the leader in BtoB
logistics in terms of transportation infrastructure, we provide services optimized to the scale ofour customers. We are accelerating growth through cross-selling, using dedicated sales staff.

Vertical expansion: Provide solutions that contributeto the value chain with a focus on logistics

・・・

Administrative
Resource
procurement
FinanceHR

In addition to our own services, improve convenience by
providing our customers in Less than Truckload with othercompanies’ services
Focus human capital on
our strength in handlingLess than Truckload andour edge in expanding
nationwide without
regional restrictions

Develop digital offerings
that multiply crossselling to customers ofLess than Truckloadwith the use oftransportation

Logistics

Charter

Provide a variety ofProvide one-stop services
transportation methods in collaboration withthat help resolve social partner companies
issues, improve
efficiency, and contributeto the environment

Less than Truckload
Open infrastructure to
improve quantities andunit prices

Last-mile

Forwarder

No. 1 in BtoB logistics, in termsof transportation infrastructure
Track record spanning 860,000
corporate customers

Horizontal expansion: Expand logistics service solutions
16

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Roadmap 2028
Create Value Using a Reverse ROE Tree
Aim to achieve ROE of 8.0% within 3-5 years by improving earning power and actively
promoting shareholder returns
Drivers of ROE improvement

1

Steady growth of the Less than Truckloadbusiness2

Growth of the logistics business

3

Growth of the charter business

4

Operatingrevenue growth
Organic growth of around
4%/year + M&A

ROE of 8.0%
or higher

M&A and open innovation

1

Increase profitability through better
efficiency in the Less than Truckloadbusiness

2/3

Increase the proportion of operating
revenue from the highly profitable logistics
and charter businesses

5

Maintain DOE of 4.0% or more and continue
to steadily acquire treasury stock (¥30.0bn
acquisition planned for FY03/24)

Achieve both economic
and social value

Improved
profitability
Operating margin of around
5.8% (4.5% in FY03/23)

Grow Operating income
by 10% or moreannually
Grow EPS by
15-20% annually

Capital policies
Equity ratio to an appropriate
level (63.2% in FY03/23)

17

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①Less than
Truckload

Growing by Leveraging Our Strengths
and Improving Profitability

Aim for sable growth in Less
than Truckload

Profit growth1.

Receive appropriate freight rates (centering on
long-haul and heavy cargos)

Operating revenue fromLess than Truckload
1.5% growth

Approx.
¥240.0bn*

2.

Increase loading efficiency and control
running costs

3.

Secure quantities

2% annual growth(Expand logistics, promote O.P.P.)

Competitiveness

FY03/18

FY03/23

In five years•

Nationwide network powered by 5,900 flights
per day, comprising 736 locations and 26,532
people•Capable of handling loads of any size, fromsmall to large lots

Issues•Rising facility renovation costs(costs of maintaining infrastructure and networks)*Reference figure for the new Seino Transportation (four-company merger)

18

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Less than
Truckload①

Improving Unit Prices by Collecting
Appropriate Freight Rates

Handling long-haul and heavy cargo,a Company strength

Collecting appropriate freight rates•

Develop policies for freight rates to avoid thefuture risk of not being able to transport cargos
or continue to provide stable transportation•

Collect appropriate freight rates, especially in theareas where we are highly competitive (longhaul, heavy cargos)•

Keep consumer price indexes in mind whensetting rates•

Use fuel surcharges to pass on higher prices inline with market conditions without relying on rate
revisions (a company strength)(94.4% collection rate for Seino Transportation in
FY03/23)

Cargo, by weight and travel distance
Near

Distance

Far

Light

①
③

Weight②

Our areas ofstrength

Heavy

Our areas of strength19②

We can offer various transport options,regardless of cargo volume.

③

We were an early proponent of modal shifts
and relay transportation, so we have the ability
to transport cargo to remote areas and are
relatively unaffected by the 2024 problem.
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①Less than
Truckload

Higher Efficiency due
to Effects of Integration

Four-company integration increases
efficiency and reduces costs
Cost-reduction effects
To
FY03/23

FY03/24

In 3-5years

Higher efficiency•

Accelerate increases in transportation
efficiency due to merger of four Group
companies (Kanto, Nohi, Tokai, and Seino
Transportation)•

Review relay and consolidation bases,
eliminate low loading ratios, and revamp theoperation system to match cargo volumes•

Increase turnover within individual economic
zones by shortening transportation times
from three days to one•

Improve efficiency further by developing the
hub concept-¥2.3bn*

Current-year
plan:-¥0.8bn

Expected–¥6.0bn due totransportation
efficiencies*Figures on a settlement basis

20

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①Less than
Truckload

Securing Cargo Volumes
Securing cargo volumes

Opening up our infrastructure broadly
O.P.P. Kangaroo
Service•Achieve synergies
through expanded
logistics that utilize
leased Logi-Transfacilities and external
warehouses•

In a shrinking market,
secure volume byopening up our own
infrastructure broadly•Work to become a onestop operator withoutcompromising customer
convenience by linking
our transportation
systems with those ofother companies

Relay depot
Bring in

Other companies
Bring inTrunk line
operation

Logistics
Trunk line
operation

Originating
depot

DeliveryDestination
depot

Logistics-related handling volume

O.P.P. Kangaroo Service
handling volume

Synergies due tostronger logistics

Gather like-minded operators
to realize green logistics

11% growth(Up approx. 80,000 tons*)

Approx. 50,000 tons*

FY03/22

Customers

FY03/23

FY03/23*Reference cargo volumes for the new Seino Transportation

21

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②

Logistics

Logistics, a Major Growth Field

Logistics, an area of focus
Operating revenue from logistics

Profit growth
1. Provide highly functional logistics
2. Develop industry-specific solutions
3. Strengths and needs backed by a track recordof growth

Aim grow by 100% (2x)Competitiveness• Carrying capacity based on nationwide
transportation network• Advantage of nationwide operation makes it
possible to offer logistics using the best
locations• Abundant human resources, from dedicatedsalespeople to operational and management
personnel

Approx. ¥60.0bn*
50% growth

FY03/18

FY03/23

In five years

Issues• Ensuring warehouse space and speed*Reference figures for Seino Holdings (management accounting basis),including transportation operating revenue derived from logistics

22

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②

Logistics

Growing through Warehouse
Expansion (Owned and Leased)

Competitor comparison of warehouse space, vehicles, and logistics-related operating revenue
Warehouse space (1,000 m2)

Warehousingrelated overlandtransport

Company A

Long-term
objective

Company B
Company E

Having a relatively large fleet ofvehicles should help drive ourlogistics growth

Company C

Company D
Company G
Company F

Warehousingbusiness

Seino Holdings’
operating revenue
from logistics:¥60.6bn

Company I
Company H

Number of vehicles*The size of the circles represents scale of operating revenue.
*Logistics-related operating revenue is based on FY03/23 account settlements. We have researched the number of vehicles based on company disclosures.

23

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②

Logistics

External
environment

Growth-Related Issues andMeasures for Addressing Them

Increasingly severe labor
shortages

Faster technologicalinnovation driving changes
in the industrial structure

Limits to the amount of value a single
company can provide

Lack of expertise withhighly specialized products

Developing facilities withfunctionality and pricing advantages

Improving advantages in logistics

Strengthen ties with other companies

Cultivate specialized expertise

Utilize assets effectively

Review sales structure by region

Issues forus

Our
response
measures24

Growing awareness ofsustainability

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②

Logistics

Growing by Ensuring Warehouse Space(That Need Not Necessarily Be Our Own)

Realize green logistics by optimizing the entire supply chain through collaboration andgreater efficiency that leverages the advantages of our nationwide presence
Securing warehouse space

Enhancing development

Warehouse space
Aim to grow by around 85% (1.85x)
External
warehouses•

Provide cloud-based logistics at the best
locations, anywhere in Japan, withoutcompromising lead times•

Develop Logi-Trans facilities that connect directly
to our national network•

Locate distribution centers in high-demand areas•

Review the logistics development of ouroperating companies and set up four new
logistics-related departments at Seino Holdings
FY03/2379 people (Seino Transportation)
From 04/23 124 people (Seino Holdings)•

Use the “Mitsukaru Soko” (“Find Warehouse”)
tool for locating empty warehouse space atpartners nationwide in order to step up our
immediate response and development without
incurring fixed costs

28% growth*Approx.
400,000 m2*Approx.
620,000 m2

FY03/20

FY03/23

Our
warehouses

In five years*Seino Holdings’ warehouse space

25

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②

Logistics

Expanding Industry-Specific Solutions

Improving profitability by developing services that ensure expertisein growth markets
Three fields of particular focus

Automotive Battery Logistics
Business Division

Expanding industry-specific solutions•

Formed logi-solutions team at Seino Holdings
in our three fields of particular focus (April
2023)

•

Help customers build supply chains capable ofresponding to changes in their operating
environments, as well as to increased demand•

Invest proactively with a view to facility
expansion and M&A•

Optimize the domestic supply chains of global
companies in accordance with the deployment
of industry-specific solutions by megaforwarders•

Leverage our strength in working with partners
to optimize domestic supply chains

Healthcare Solutions Business Division

Electronics Solutions Business Division*Automotive Battery Logistics Business Division
Entered a business alliance with Tsukasa Kigyou Co., Ltd. to meet new logistics needs arising from the spread of EVs (April 2023).

26

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③Chartered

Growing by Cross-Selling Digital andLess than Truckload

Areas of focus in thechartered business
Operating revenue in thechartered businessProfit growth1.

A changing profit structure due toexpanded use of transportation

2.

Boost delivery capabilities by using a
digital platform (HACOBELL)

Aim for growth of around 100% (2x)Competitiveness•
1.7% growth

Approx.
¥25.0bn*

Utilize our superior digital platform andtask our approximately 500 dedicatedsalespeople across Japan to cross-sellalong with Less than Truckload

Issues•
FY03/22

FY03/23

In five years

New business development through theacquisition and utilization of advanced
wide-area digital data
(data on products and customers, and data
peripheral to transportation)*Reference figures for the new Seino Transportation (four-company merger)

27

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③Chartered

Resolving Industry Issues

The industrywide “2024 problem”

Opportunities for us•

Various effects of overtime caps (labor
shortages, transportation delays, pricenegotiations)••

Measures to resolve labor shortages (securing
human resources, outsourcing, joint deliveries)

Chartered cargo as apercentage of commercial
freight volume

Industry percentage ofsmall and mediumsized operators

In the transportation industry, where themajority of operators are small and mediumsized, there is tremendous room for growththrough industry efficiencies as the 2024
problem looms.
Industry breakdownby number ofvehicles owned

0.5%
Chartered:
Approx.
94%

Number of small and99.5%
medium-sized
Approx.
99.5%
operators

54.7%(Capital of less than
¥300mn)

Vehicles:

1,430,000

Approx. 60,000
companies
operators
0.5%Large(Capital of ¥300mn

Less than
Truckload :Approx. 6%

Commercial freight
tonnage*1
Sources28

10 or fewer vehicles
43.1%
Approx.
35,000 companies

Approx.
0.5%

or more)Approx. 300
Cargo vehicle companies
transport
operators*2

43.1%

11 to 100 vehicles
Approx.
54.7%
27,000 companies

101 or more vehicles
Approx. 1,400
Cargo vehicle companies
transport
operators*2
2.2%*1 Estimated based on truck freight tonnage for Less than Truckload in the Annual Report of road Transport Statistics (fiscal 2021), Ministry of Land, Infrastructure, Transport and Tourism*2 Number of cargo vehicle transport operators (as of March 31, 2022), Ministry of Land, Infrastructure, Transport and Tourism

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③Chartered“HACOBELL,” a Platform forRealizing Green Logistics

We aim to resolve problems in the transportation industry, such as driver shortages andmultiple subcontracting structures, through an open public platform that anyone can use.

Development of sales
channels to our
860,000 corporate
customers

Strengthen partnerships
with transport operators
No. of cargo vehicles
Registered withHACOBELL
37,000

ShipperMatch withdrivers

OutsourcedeliveryDriver
1.4 million

Benefits for shippers

Benefits for transport companies







Ensure a flexible means of delivery
Reduce fixed costs
Easy to use, thanks to superior UIYasukaneMatsumotoCEO, RAKSUL,
Inc.

29



Our ideal

Increase productivity by utilizing
drivers’ free time
Help improve the management andworking environment

By combining Seino Holdings' credibility and track record in the logistics industry,
the sales force of its nationwide network, and HACOBELL's functionality, we expect
to realize a host of synergies. I expect the platform to grow into a foundation for theentire logistics industry.

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③Chartered

Optimizing Transportation
through the Use of Digital Technology

The future physical Internet concept involves connecting transportation data held bycustomers and transportation service providers on a digital platform. These data are then
combined to be utilized openly with relay centers and other assets.

Asset
openness,collaboration

Sales
capabilities

HACOBELL dispatching plan

Huge amount oftransportationrelated data

HACOBELL dispatch management
Shipping company A

Shipping
instruction data

Transport mode
optimization

Charter route
optimization

Charter data

Request dispatch, setvehicle number,confirm request

Shipping company B
Shipping arranged by
HACOBELLHACOBELL activity management

Logistics DX system

30

Route and homedelivery data

Confirm vehicle location, predictarrival time, detect of delays

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④

M&A and Open
Innovation

Accelerate Growth throughProactive Investment
Accelerate growth through proactive
investment, including M&A

Accelerate growth•

Actively develop strategies thatincorporate M&A to quickly reach ourgoals for five years hence•

In addition, deploy open innovation
broadly to create new, market-leading
value

Operating revenue
M&A-driven growth¥631.5bn

23.03
FY03/23

31

Expand functions to accelerate businessgrowth•Expand the logistics domain•

Accelerate development of the threesolutions businesses•

Strengthen the last-mile delivery network•

Expand the three-temperature zonetransportation network

28.3
In5年後
five
years

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④

M&A and Open
Innovation

Leverage Our M&A Experience

Future areas of focus
M&A-driven growth
Cold chain

Last-mile In 2009, we acquired Seibu
Transportation (now SSX), bringing it
into our group, and successfully
improved its earnings.
 Since 2009, we have acquired 22
companies to complement ouroperations in areas we were lacking(investing approximately ¥20.0 billion
over the past five years).

Logistics

 In 2020, we established a dedicated
M&A team.

International

32

Transportation

 We will proactively expand newfunctionality and acquire expertise to
become the industry leader.

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M&A and Open
Innovation④

Taking the Lead Over Competitorsby Establishing a CVC Fund
Investment themes

CVC-driven growth1.

New platforms in areas peripheral tologistics

2.

Process improvements in existing
logistics operations

3.

Expansion of logistics operational areas

Promoting collaboration(among 15 companies)*1
7 companies

Alliance in place

PoC

Under discussion

We took the lead over other major
overland transport companies inestablishing a CVC fund and beginning
open innovation.

•

Established in 2019, ours has become theleading, most active logistics CVC fund.

•We have invested in 21 projects to date.*2•

We are already in the investment
recovery phase.

•

We are currently collaborating withportfolio companies.

3 companies

5 companies*1 Progress at 15 of the 16 separate investees that have some
sort of business collaboration process underway

33•*2 Total number, including FoF investments.
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④

M&A and Open
Innovation

New, Market-Leading Value
Proactive (strategic) new business development with CVC portfolio companies

Jointly launched a newdelivery solution, Sky Hub,pioneering the business of
smart logistics using drones

34

This solution opens up ourassets to networked logistics
platforms, providing
fulfillment services for ecommerce businesses

Jointly developed Japan's first"central dispensing pharmacy"
by installing a dispensing
pharmacy inside a distribution
center to streamline andshorten the pharmaceuticalsupply chain
Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

⑤Striking a Balance between Growth
Investment, Financial Discipline, andCapital Efficiency

Capital
PolicyEquity ratio and ROE

Basic approach to capital policy

8.0%
63.2%
6.1%

Appropriate
level

We will strengthen shareholder returns as much as
possible without impairing the company’s ability toinvest in growth and maintain financial soundness inorder to achieve a ROE of 8.0% or more.
Highlights

FY03/23

FY03/22

FY03/21

FY03/20

FY03/19

3.9%

35

1.

We have transitioned to a stable, active
dividend policy with a DOE of 4.0% or higher.

2.

In FY03/24, we plan to spend ¥30.0 billion toacquire our own shares.

3.

Of the 20.32 million shares of treasury stock wecurrently hold (excluding 5.72 million shares
held in a trust account as an employee
incentive), we will cancel 20 million shares. In
principle, future treasury stock holdings will belimited to no more than 10% of total sharesissued and outstanding.

4.3%

In 3-5 years

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

⑤

Capital
PolicyDividend Policy and DOE of 4.0% or More

Changes in our dividend policy
Until FY03/22

FY03/23

From FY03/24

Consolidated dividend
payout ratio of 30%
Fluctuating according to
profit for the period

Set a target of dividend over equity (DOE)of 2.4% or a 30% consolidated payout
ratio, whichever is higher

DOE of 4.0% or higher
High and stable dividends

Dividends per share and DOE

Around¥95
4.0%

Dividends are approx. 3.3x thelevel of two years ago

32
1.6%

39
1.8%

27

29

1.2%

1.2%

At an ROE of 8.0%,
DOE of 4.0% = ROE of 8.0% x payout ratio of 50%

56

4.0%

100%

2.3%

DOE
4.0%
FY03/19 FY03/20 FY03/21 FY03/22 FY03/23 FY03/24(Forecast)

36

ROE

Dividend
payout
ratio

6.0%
=

67%
x

8.0%

50%

10.0%

40%

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

⑤

Capital
PolicyActive Share Buybacks

Share price and share buybacks

Share buyback policy

We will retire 20mn
shares of treasury stock.

(Share price, in yen)

2,500

In FY03/24, we plan tospend ¥30.0 billion to buyback shares.

2,000¥20.0bn¥3.0bnWe will step up share buybacks to achieve anappropriate stock price level, EPS growth, andROE of 8.0%.

•

To achieve an optimal equity ratio, in FY03/24 weplan to spend ¥30.0 billion to buy back shares.

Policy on retiring shares

1,500¥5.0bn

1,000

•

•

As a general rule, we will hold treasury stock up
10% of total shares issued and outstanding,cancelling any shares above that amount.

•

We will use treasury stock mainly for theconversion of convertible bonds, M&A andbusiness alliances, and employee incentives. We
will take care to avoid dilution.

•

The use of treasury stock is reviewed annuallyby the Board of Directors.

¥1.5bn500

Approx. ¥30.0bn over the past 10 years

37

FY03/2424.03

FY03/2323.03

FY03/22
22.03

21.03
FY03/21

FY03/2020.03

FY03/19
19.03

18.03
FY03/18

FY03/17
17.03

16.03
FY03/16

15.03
FY03/15

14.03
FY03/140

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

⑤

Capital
PolicyStrengthening Growth Investment andShareholder Returns

Through an increase in operating cash flow and the use of interest-bearing debt, we
will make active business investments and reinforce shareholder returns.
Sources of funds

Uses of funds
Investments infacilities and vehicles:¥160.0bn plus

Sources of funds

Uses of funds

Share buybacks
Strategic investment:¥30.0bn

Convertible bonds:¥25.0bn

38

Strategic investment(M&A, etc.)

Investments infacilities and vehicles:¥160.0bn

Operatingcash flow:¥210.0bn

Other

Operatingcash flow:¥300.0bn

Share buybacks: ¥25.0bn
Dividends: ¥30.0bn

Past five years

Other

Use interestbearing debt

Dividends:¥80.0bn

Use surplus cash
Next five years

Other

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Winner
In a nationwide truck
drivers’ contest(Prime Minister'sAward)

03

Intangible Assets That Support
Value Creation

Having Both Tangible and Intangible
Assets: A Source of CompetitivenessWe will step up our investment in intangible assets,
which are a source of value creation, to enhance corporate value.
 Long-term, trust-based relationships with

 A Japanese leader in logistics

860,000 corporate customers
 Outsourced logistics operations forinfrastructure (terminals, warehouses,
trucks)leading global companies

 736 distribution centers throughout

Japan, and 26,000 vehicles
 Expanding logistics

 Instillment of philosophy andPhysicalassetsCustomer
assetscorporate culture No. 1 track record in BtoB trucking
 Diversified transportation network Extensive logistics data
 IT systems

 System of collaboration with

Organizational
assetsstartups
 Corporate sports that increase

sense of contribution

 A balance sheet that facilitates abalance between growth investment
and shareholder returns:
Equity ratio: 63.2%
Cash and deposits: More than ¥100.0bn

40

Financialassets Transportation group employees:

HumanassetsApprox. 27,000
Approx. 17,000 drivers
Approx. 500 dedicated salespeople Four new logistics-related

departments: Approx. 120 people Enhanced engagement and retention

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Human Capital Strategy: Achieving Well-Being =Satisfying Our Management Philosophy

We define well-being as “our employees’ sense of fulfillment, job satisfaction, and personal
growth.” We believe that enhancing employees’ well-being will improve retention and give us
an advantage in recruitment.
Management philosophy:“Develop the company and make employees happy”

Results ofachievingwell-being(1) Increased
retention(2) Enhanced recruiting
capabilities

Achieving well-being: Greater engagement

Basis forachievingwell-being
41(3) Personal growth(4) Fostering a sense ofunity among employees

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Specific Initiatives of Our Human
Capital Strategy
Activity
theme

Indicator

1

Increase
retention

Provide an environment that allows forchallenges (e.g., hand-raising system)
Foster good communication within theworkplace2

Enhancerecruiting
capabilities

Collaborate with Seino Staff Services andoutside companies to adopt new recruiting
methods (referral recruiting, alumni
recruiting, etc.)

Number of alumni referrals
FY2022 FY2025 target
Seino Transportation 101
Seino Group300

Provide a venue for learning the basics ofbeing a working adult and adopting thecompany’s mindset
・Seino-man Basic Training

Percentage of employees receiving training
FY2022 FY2025 target
Seino Transportation 100%
Seino Group
100%

Provide diverse learning opportunities tomeet employees’ needs
・Learn by using YouTube videos

Training time per employee
FY2022
FY2025 target
150 minutes
300 minutes

Utilize public relations and social medic toincrease employee interest andparticipation in corporate sports

Internal questionnaire on company sports“I’m interested in the Seino Athletic Club.”
FY2022
FY2025 target
71.27％
80%

3

4

42

Initiative

Personal
growth(education)

Fostering a
sense ofunity among
employees

We expect greater employee interest in
corporate sports to foster a sense of unity.

Retention
FY202293.2%

FY2025 target
98%

Note: We aim to step up operations at Seino Holdings.

Note: We aim to step up operations at Seino Holdings.

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Issues for Enhancing Engagement

We aim to realize well-being throughout the Group through initiatives based on ourmanagement philosophy (the three pillars of happiness).
•

Economic issues: easy to understand, fair evaluation criteria, and compensation commensuratewith results (labor)•

Pride, future potential: Raise employees’ self-esteem (Seino-man Basic Training, sharing thanks)

Engagement(percentage of positive responses)
80%
55%

Indicators we consider important
My income is commensuratewith my performance.

I have no concerns
about the future.

72.0%

I have a senseof self-esteem.

69.6%

I feel pridein my work.
FY03/23

43

50.3%

50.3%

TargetCopyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Enhancing the Employee Stock Ownership Plan
So That Increased Corporate Value = Economic
Value for Employees
We will provide employees with incentives to enhance corporate value over the
medium to long term. At the same time, we will promote membership in a stock
ownership plan as a way to enhance employee benefits.
Shares held•

We will strengthen the employee stock ownership planso that increased corporate value = economic value for
employees.

•

Overview of employee stock ownership plan
Members: 5,289
Shares held: 2,190,000

2,190,000(16th largest shareholder)•

Incentive plan
FY03/22 to FY03/26 (four years)
At the end of the period, the amount of increase in theshare price during the period will be distributed inproportion to the number of shares accumulated byeach member.

•

Employees can share in the goal and sense ofachievement as we work toward a PBR of more than1x.

700,000

FY03/1644

FY03/23

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

External Human Assets for Value Creation(A Selection of Our Outside Director and Advisory Board Members)

Outside director

Advisory Board member

Meyumi Yamada

Yasukane Matsumoto

Director, istyle Inc.
Outside director of Sompo Holdings,
Inc. and Seven & i Holdings Co., Ld.

CEO, RAKSUL, Inc.

Expected role
To provide advice on how toleverage women’s perspectives tocreate diverse values andsustainable growth45

Expected role
To apply his knowledge based on
his experience in transforming
industrial structures based on thephilosophy of "Change the system,and the world will be a better place."

Advisory Board member

Advisory Board member

Makiko Sato

Kentaro Iemoto

Representative partner, iSGS
Investment Works Inc.

President and CEO,
CLARA ONLINE, Inc.

Expected role

Expected role

To apply her knowledge in the field ofventure investment, based on a trackrecord of investing in startup
companies

To apply his knowledge of sociallyconscious business models basedon past experience
Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Realizing a Sustainable Society through Our
Business Activities (Materiality Items)

By addressing seven materiality items (priority issues) through our business activities, we aim to realize our idealof creating value and becoming a sustainable company, thereby satisfying our purpose of "bringing smiles to all."Materiality items
Activity themes(priority issues)
Contribute toward a sustainable Promote business activities that have low CO₂
1
environment
emissions and resource use

2

Create a safe and secure
working environment

Train employees to foster a safety culture
Create a corporate structure that ensures safety

Respect diversity and promote flexible working
Create an organization in which
styles
3 diverse people can play an
Care for employees mentally and physically
active role
Promote communication among employees
Contribute to society through4 the Transportation Services
Business
5

Promote businesses that
resolve social issues

Practice responsible corporate
6
management
7

46

Foster a sustainable corporate
culturePromote BCP measures
Cooperate with government agencies in theevent of disaster
Contribute toward the resolution of social issues
through transportation services and co-creation
with other companies
Train employees
Create a corporate compliance structure
Establish a whistleblower hotline
Conduct risk management
Enhance employee awareness andunderstanding

Activity targets
35% reduction in GHG emissions (by 2030,
compared with FY2013)
Zero major traffic accidents (fatalities)
Zero serious industrial accidents (fatalities)
5% YoY reduction in occupational accidents
Retention rate: 98%
Engagement: 80% (positive response rate)
Checkup rate among those eligible for secondary
checkups: 100% (regular checkups)
10,000 views per month of training content
Percentage of safety confirmation drills
conducted: 100%

Zero serious information security accidents
G Mark certification rate: 100% (Transportation
Services Business)
Zero violations of laws and regulations

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Leading the Industry in Environmental Initiatives

Launched the Eco-Driving Promotion
Committee to encourage all drivers
to practice environmentally friendly“eco-safe” driving

・ Commenced a “relay rail modal shift”
combining truck and rail transportation
・ Received first certification by the Ministry ofLand, Infrastructure, Transport and Tourism forour “comprehensive efficiency plan” under the
Logistics Efficiency Improvement Act

・Launched a modal shift using RORO ships
・Received the 18th Green Logistics Partnership Conference
Excellent Business Award Special Prize for “Joint TrunkLine Transportation by Four Companies Using DoubleConnected Trucks”
・Introduced the world’s first large hybrid truck

2016

2020

Registered conformancewith ISO 14001(environmental
management system)

2005

2002
Became a corporate
member of Team
Minus 6%

2006

2018

2017

2019

Participated in an eco-driving
activity contest for the first time
and won the Minister of Land,
Infrastructure, Transport andTourism Award・Introduced double-connected trucks (25m fulltrailer)
・Conducted a modal shift (60 trucks’ worth) topartially chartered trains
・Launched a modal shift using ferries
・Started joint transportation of in-house pickup anddelivery services in office buildings

47

2021

・Achieved a model shift on
Chubu-Kyushu, TokyoSanyo/Shikoku routes, movingfrom truck transportation topartially chartered trains
・Expanded the course ofoperation for double-connectedtrucks・ Received the “21st Logistics Environment Award”・ Received the Minister of Land, Infrastructure,
Transport and Tourism Award for the second
time in the Eco-Driving Activity Contest
Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Aiming to Commercialize the Next-Generation
Vehicles Necessary to Realize Green Logistics

We will work to reduce CO2 emissions by 35% by 2030 by promoting
transportation reforms that focus on contributing to our customers andparticipating in the social verification testing of medium-sized and largecommercial electric trucks, our transport mainstay.
As a pioneer in long-haul scheduled truck transportation, we will conduct modal shifts where feasible,use double-connected trucks, and engage in the sharing of transportation. In addition, we will
implement initiatives that contribute to the spread of next-generation vehicles.

48

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

New Initiatives for Reducing CO2 Emissions

TOPIX

Participating in a verification testing usinglarge fuel cell vehicles (FCVs) In June 2023, we began a demonstration run that will lastapproximately two years.
 The demonstration route will be Tokyo Branch  Odawara Branch 
Sagamihara Branch  Tokyo Branch, and the demonstration will bemade available to transportation services business operators.
TOPIX

Participation in NEDO’s Green Innovation Fund
Project and the start of a verification test We are participating in the Green Innovation Fund Project / Smart
Mobility Society Construction, funded by the New Energy andIndustrial Technology Development Organization (NEDO).
 The verification test began in April 2023, with the introduction of one
FCV each at the Tokyo, Fukagawa, Omori, and Keihin Terminal
branches.
 We will verify the integration of energy management with operational
management to determine whether cost reductions on commercial
vehicles are suitable, as well as the reduction in time lost due tofueling.
 We plan to introduce a total of 45 FCVs and EV trucks by 2025.
49

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Promoting the SDGs with New Smart Logistics

To address the logistics crisis in depopulated areas, we areconstructing a new smart logistics system to ensure that“delivering packages is a given” in a sustainable manner.
This system combines combined cargo and passenger
transportation, collaborative delivery, and drone delivery,
contributing to carbon neutrality as well.

・Estimated CO2 reduction per municipality:
Average of 11.6 tons/year
・Number of municipalities where we areconducting demonstration tests andimplementing the system
10

As of FY03/22

32
As of FY03/23

・By using a dedicated app, we aim to enhancesuch functions as prescription drug delivery andemergency notifications.
Drone delivery

Mixture ofpassengers
and cargo

Jointdelivery
Depopulation is occurring at 51.5％* (885)of all cities, towns, and villages across Japan.
*Source: 2020 National Census, Ministry of Internal Affairs and Communications

50

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Reinforcing IR and Dialogue

1. Hold financial results
briefings earlier
2. Hold hybrid briefings
3. Stream video
4. Disclose in English

51

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

04

Looking Back on the Previous
Medium-Term Management Plan
Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Looking Back on the Previous Medium-Term
Management Plan: Shortfalls in Operating
Revenue and Income◆ Operating revenue vs. the plan’s targets ◆FY03/23(Actual)

FY03/23(Previous
plan)

Difference

(A)

(B)

(A)-(B)

625,626

631,507637,200- 5,693

Transportation Services
Business

466,473474,701

482,040- 7,339

Vehicle Sales Business

103,164

94,209102,000- 7,791

Merchandise Sales Business

32,86733,51729,0004,517

Leasing for Real Estate
Services Business

1,732

2,191

2,160

31

(Millions of yen)

Operating revenue

Other Business

FY03/20(Actual)Transportation Services Business

21,38926,88622,0004,886

29,69728,50133,600- 5,099

Transportation Services
Business

23,33921,86926,180- 4,311

Vehicle Sales Business

4,611

4,709

5,250

- 541

870

800

850

- 50

1,382

1,614

1,720

- 106

688

1,174

900

274

Adjustments- 1,194- 1,666- 1,300- 366

Operating margin

4.7%

4.5%

5.3%

- 0.8pt

ROE

6.1%

4.3%

5.3%

- 1.0pt

Operating income

Merchandise Sales BusinessLeasing for Real Estate
Services Business
Other BusinessWe fell short of our targets in the Transportation Services andVehicle Sales businesses.
The company struggled to secure transport volumes due to theeffects of COVID-19, soaring energy and raw materials prices,and rising import costs and prices due to the weak yen.

Vehicle Sales Business
The company was affected by the suspension of shipments due
to an engine certification fraud issue on trucks, and production
adjustments due to supply constraints on passenger car parts.

Merchandise Sales Business
We reached our targets, owing to strong sales of household
paper.

◆ Operating income vs. the plan’s targets ◆Due to the shortfall in operating revenue, Operating income also
fell below our target.

Transportation Services BusinessAlthough we worked to turn the company profitable by growing
the high-margin logistics business, we struggled to secure
profits in the core business of Less than Truckload, as thevolume of goods failed to recover to pre-pandemic levels.

Vehicle Sales Business
By focusing on the maintenance business, we improved the
profit margin to 5.0%.

*The company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) from the start of FY03/22. Accordingly, thisstandard is not applied to the figures for FY03/20. For reference, in FY03/22 the application of this standard had the effect of lowering operating revenue ¥15,001
million and raising operating income, ordinary profit, and profit attributable to owners of parent by ¥395 million each.

53

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Looking Back on the Previous Medium-Term
Management Plan: Strengthening GrowthOriented Investments◆ Investment activities in review ◆Facility investments• In the aim of expanding the logistics domain, we(Millions of yen)

FY03/21 to
FY03/23 actual

FY03/21 to
FY03/23
plannedDifference

(A)

(B)

(A)-(B)•promoted the development of Logi-Trans facilities thatmaximize the advantages of Less than Truckload andlogistics warehouses in high-demand areas, increasing
floor space by 240,000m2 over the three-year period.
Given the time required to acquire land, the company
leased some (158,000m2) to accelerate the development.

Vehicle investments

Facility
investments

69,643

Vehicleinvestments

23,52180,03325,700- 10,390• Our vehicle replacement plan was delayed due to asuspension of shipments stemming from an engine
certification fraud issue at Hino Motors, but we madeenvironmentally friendly investments, such as EVs.

- 2,179

Strategic investments
Strategic
investments

11,3929,100＋2,292

Total

104,556

114,833- 10,277• 09/20 LIVING PRO-SEED, INC. joins the Group
•
•
•

54

Strengthened our LCC home delivery network with aview to expanding our unattended delivery service
nationwide
08/21 MARUKYU UNYU CO., LTD. joins the Group
Expanded our cold chain network and secured
three-temperature zone logistics bases
08/22 HACOBELL INC. joins the Group
Realized an open public platform as a foundation forthe logistics industry
09/22 TIKUTAKUBIN Co., Ltd. joins the GroupStrengthened our last-mile network in the Tokyo
metro area
Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Looking Back on the Previous
Medium-Term Management Plan:
Priority Measures
Slogan of the previous medium-term management plan:“Connecting our values”
For the prosperity of our customers

Promote Seino’s logistics

Strengthen Group functions• Provide new value by optimizing• Optimize Group functionality

the entire logistics process• Promote warehouse development,
including the expansion of LogiTrans facilities

Grow operating revenue from logistics:¥60,608 million(127.9% growth over three years)

Promote O.P.P.

• Provide the best value to customers bythrough integration of the Groupand functional connections

strengthening cooperation with othercompanies and promoting O.P.P.

Increased operating efficiency by merging fourGroup companies (Kanto, Nohi, Tokai, andSeino Transportation)
Impact to date: ¥2,350 million
Expanded our scale and increased
operational efficiency by merging automobile
dealerships (Corolla, Netz)
No. 1 in scale in Gifu (5th in Japan)

Investments in terminals and logistics
facilities:¥62,000 million• Promote a highly convenient platform

Provision of extra warehouse space on“Mitsukaru Soko” (“Find Warehouse”) :650,000m2(More than 700 registeredwarehouses throughout Japan)

Established HACOBELL as a joint venture
38,000 registered vehicles
40,000 drivers(Ranks No.1 for recognition among people
seeking to match cargos and vehicles)

Handling volume for the O.P.P. Kangaroo
Service:
Approx. 5,000 tons/month
Verification testing of smart logistics:
Conducting demonstration tests andimplementing our system at 32
municipalities(The most municipalities in Japanfor such verification testing)for open collaboration

Collaborate in other industries, such aswith Timee, Inc., to provide customers
with support in peripheral areas

Note: From LOGISTICS TODAY55

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

In Closing

 We will achieve stable growth in our core business of Less than Truckload, while
logistics and charter transport will serve as our engines of profit growth. We haverevised our dividend policy, setting dividend target to DOE of 4.0% or higher. We
will further increase corporate value through ongoing dividend increases and sharebuybacks.
 In the face of the 2024 problem, we aim to realize green logistics through “cocreation” that transcends individual corporate and industry boundaries. We will doso by utilizing digital technology to address the emerging risk of being unable toprovide transportation.
 We contribute to customer prosperity by working to resolve issues that are
upstream in the customer’s value chain.

 We intend to strengthen our disclosure and investor relations activities andenhance our dialogue with shareholders and investors.
56

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

(Reiterated) Roadmap 2028
Create Value Using a Reverse ROE Tree
Aim to achieve ROE of 8.0% within 3-5 years by improving earning power and actively
promoting shareholder returns
Drivers of ROE improvement

1

Steady growth of the Less than Truckloadbusiness2

Growth of the logistics business

3

Growth of the charter business4

M&A and open innovation

Operatingrevenue growth
Organic growth of around
4%/year + M&A

1

Increase profitability through better
efficiency in the Less than Truckloadbusiness

2/3

Increase the proportion of operating
revenue from the highly profitable logistics
and charter businesses

5

Maintain DOE of 4.0% or more and continue
to steadily acquire treasury stock (¥30.0bn
acquisition planned for FY03/24)

Achieve both economic
and social value
ROE of 8.0%
or higher

Improved
profitability
Operating margin of around
5.8% (4.5% in FY03/23)

Grow Operating income
by 10% or moreannually
Grow EPS by
15-20% annually

Capital policies
Equity ratio to an appropriate
level (63.2% in FY03/23)

57

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Reference

About Seino Holdings

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

The Industry Leader in Route Trucking

Breakdown of operating
revenue in FY03/23
Other Business: ¥26.8bn

Real Estate Leasing Services
Business: ¥2.1bn

Merchandise Sales Business:¥33.5bn
Two companies:
Seino Trading and Seino Sangyo

Vehicle Sales Business: ¥94.2bn
Toyota Corolla Netz Gifu, Gifu Hino
Motor, and six others

FY03/23
operating revenue:

Seino Information Service, Toyota
Home Gifu, Suito Travel, and 17
others¥631.5bn
Consolidated
subsidiaries:

82

Transportation Services
Business: ¥474.7bn
Seino Transportation, Seino Super
Express and 50 others

Source: Corporate presentation materials

59

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Happy Customers Driving Company GrowthFounding
Spirit
創業の志In 1930, Mr. Taguchi launched a transportation business in Gifu
Prefecture. Operations started with one used truck that was paid for on
an installment basis.
In an era when goods often failed to arrive at their destination, thecompany introduced a service notifying senders when their packages
would arrive. This move built customer trust, which helped theCompany grow.

A Spirit Carried
Forward to Today

Rihachi Taguchi,
founder of Seino
Transportation

Customer prosperity =Company prosperity

The Company commenced long-haul
service on the Tokyo–Osaka route in
1950.

60

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Seino Holdings by the Numbers

01 Founded

02 BtoB logistics

03 Distribution centers

1930

No.1

736

A history of supporting
logistics in Japan

Approx. 26,000
vehiclesA logistics infrastructure
supporting BtoB logistics

05 Customer assets

06 Shareholder returns

860,000

DOE 1.2％ → 4.0%

Transportation group

04 employees

26,532

FY03/22companies
Human resources
supporting
logistics in Japan

Companies
served to date

07 Equity ratio

08 CVC investments

63.2%

21 companies

FY03/24

Transition to stable
and highshareholder returns

Co-creation with technologyoriented startups
61

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

“Bringing smiles to all”
As a corporate group that aims to “bring smiles to all,” customer prosperity is our linchpin. Through our
mission of creating value for customers, we contribute to Japanese society through the transportation
services provided by our mainstay segment, the Transportation Services Business.

PurposeBringing smiles to all

Creating value (Seino Holdings)

MissionThe prosperity of our customers + providing “a little extra” / building a nationthat excels at transportation (transportation group) / going beyond logistics toprovide the best service to customers and contribute to Japanese society
As our customers prosper

Management philosophy

Core philosophies

62

The company develops, bringing joy to customers

Worker–management collaboration / courtesy-centricCore spirits: A DNA marked by a spirit of challenge plus a
spirit of optimism

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Transportation Services Business

A number of delivery options showcase Seino’s transportation capabilities
Less than Truckload (Kangaroo Service)
Seino boasts industryleading transportation
capacity in the area of
BtoB logistics. We
handle a high proportionof deliveries in-house,ensuring goods aretransported safely andreliably to theirdestination.

Charter transport (Mega Express Service)
We use a hub-andspoke system forstacked chartertransport of long, heavy,
or irregularly shaped
items.

63

Less than Truckload (Express Service)
We combine trucking andair freight in a hub-andspoke system to offer nextday delivery nationwide.

Kangaroo Business Center
We use bicycles andspecially designed carts
to pick up and deliver
packages to customers
from nearby KangarooBusiness Centers.

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Transportation Services Business
Less than Truckload

Nationwide Less than
Truckload network

With this service, goods are transported insmall or large lots (up to around 1 ton),using 532 centers nationwide
Trunk line

Collection

Features・Priority on cost・Transport anything
Delivery center(delivery center tostop by)DeliveryCollection center
DeliverycenterNationwide expressdelivery network

With this service, 186 centers across Japanare used to provide next-day delivery
nationwide (Express Service)

Collection
Collection
centerCollection
centerFeatures・Priority on speed
・Small-lot delivery

Trunk line
Hub center(collection point)

Delivery
DeliverycenterHub center(collection point)
DeliverycenterHub-and-spoke method: A transportation method in which cargo is consolidated at a central logistics hub, and thensorted to go to various distribution points nationwide

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Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Transportation Services Business
CharterSingle-vehicle charter

Direct delivery of goods collected by light, 4-ton,
7-ton, 10-ton, and other vehicles to their destinations

Arrangedispatch

Features
Priority on quality

Transport
information

Vehicle matching

Dispatch

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Combined charter

One vehicle picks up items from two or threelocations and delivers them to theirdestinations without transshipment

Mega Express Service

Transportation of medium-sized lots (1 to 2.5 tons),
long, heavy, and irregularly shaped items in
combination at 18 bases in Japan

Features
Priority on costFeatures・Can charter even mediumsized lots
・No waste, green

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Overview of the Vehicle Sales Business

Sales of Passenger Cars
(Toyota Business)

Sales of Trucks(Hino Business)

This business got a new start with theJanuary 2023 establishment of Toyota Corolla
Netz Gifu.

Sales of Hino Motors trucks in
Gifu and Shiga prefectures

No. 1 in Gifu (5th in Japan)
for its sales network and sales track record

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Top market share among
Hino Motors dealers nationwide
Focusing on the profitable maintenance business
Building synergies with the Transportation Services
Business in truck ownership and maintenance

Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.

Earnings forecasts and other forward-looking statements contained in thisdocument are based on information currently available to the Company
and certain assumptions the Company deems to be reasonable. Actual
results may differ materially, due to a variety of factors.

Contact:
Finance and IR Department

Seino Holdings Co., Ltd.
1, Taguchi-cho, Ogaki, Gifu 503-8501, Japan
Phone: +81-584-82-5023
Fax: +81-0584-82-5043
http://www.seino.co.jp/seino/shd/

E-mail: i.r@seino.co.jp

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Copyright© 2023 SEINO HOLDINGS CO., LTD. All Rights Reserved.