Financial Results Briefing

for Q2 of FY12/21

Financial Results Briefing

August 6, 2021

SBS Holdings, Inc.

Copyright SBS Holdings, Inc. All rights reserved. Financial Results Briefing for Q2 of FY12/21

Table of content

Financial Results for Q2 of FY12/21 and

Full-Year Forecasts … P2

Growth Strategy of SBS Group … P19


Financial Results for

Q2 of FY12/21 and

Full-Year Forecasts

Takashi Endo, Executive Officer and

General Manager Finance Division


Q2 FY12/21 Consolidated Results [YoY] 2

In addition to the consolidation of the profit and loss of SBS Toshiba Logistics from the fiscal

year under review, home delivery services such as EC and food logistics continue to be strong

at existing group companies. B2B logistics, which had declined due to the impact of COVID-19,

has recovered and grown significantly.

Securitization of the Nanko Distribution Center

Net sales and operating income reached record highs

実績値構成比実績値構成比増減額増減率

売上高 129,139 100% 202,244 100% 73,104 56.6%

営業利益 6,243 4.8% 13,969 6.9% 7,726 123.8%

経常利益 6,277 4.9% 13,936 6.9% 7,658 122.0%

当期純利益 4,131 3.2% 7,809 3.9% 3,677 89.0%

20年度2Q 21年度2Q

(Millions of yen)

Q2 FY12/21Q2 FY12/20

ResultsResults Ratio to

salesRatio to

salesChange Pct. Change

Net sales

Operatingincome

Ordinaryincome

Net income


3

Significant increase in the volume of transactions between companies,

including home appliances, medical equipment, semiconductors, and office

equipment

Higher revenues due to soaring marine and air fares

予想値構成比実績値構成比差異額達成率

売上高 200,000 100% 202,244 100% 2,244 101.1%

営業利益 13,000 6.5% 13,969 6.9% 969 107.5%

経常利益 13,000 6.5% 13,936 6.9% 936 107.2%

当期純利益 7,500 3.8% 7,809 3.9% 309 104.1%

21年度2Q

Q2 FY12/21 Consolidated Results [Vs. Forecast]

Net sales

Operatingincome

Ordinaryincome

Net income

Q2 FY12/21

(Millions of yen)

Ratio to

salesRatio to

sales Change Pct. Change Forecasts Results


2,153

8,1733,929

5,680

151

222

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000


その他

不動産

物流

117,504

182,538

8,255

15,924

3,380

3,780

0

50,000

100,000

150,000

200,000


4

Contribution to consolidated results of SBS Toshiba Logistics in the Logistics business

and recovery and growth in B2B logistics. Property Management business achieved

significant increases in sales and profits due to liquidation of Nanko Distribution Center

129,139

202,244+73,104

+56.6%

6,243

+7,726

+123.8%

13,969

Results by Segment [YoY]

Q2 FY12/20 Q2 FY12/21Q2 FY12/20 Q2 FY12/21

Other

Property

Management

Logistics

Consolidated net sales Consolidated operating income(Millions of yen) (Millions of yen)


△306 △698

2,459

5,260

3,611

(1,000)

1,000

3,000

5,000

7,000

9,000


TLOG

TLOG除く

のれん償却117,504 127,077

55,461

0

50,000

100,000

150,000

200,000


5

In addition to the contribution of SBS Toshiba Logistics (TLOG), sales and profits increased due

to the following: continued robust performance of home delivery and food logistics at existing

Group companies, significant recoveries and growth in the volume of B2B logistics slumped due

to COVID-19, and the impact of soaring marine and air freight rates.

117,504

182,538+65,034

+55.3%

8,173

2,153

+6,020

+279.6%


Logistics Segment [Net Sales and Operating Income]

Q2 FY12/20 Q2 FY12/21Q2 FY12/20 Q2 FY12/21

Excluding TLOG

Amortization of

goodwill


Impact of contribution of SBS Toshiba Logistics, recovery and growth in cargo volume,

which declined due to COVID-19, and the soaring marine and air freight rates

+ 554

20年度2Q

21年度2Q

117.5 billion yen

182.5 billion yen

+ 26

+ 11

6

Contribution of SBS Toshiba Logistics

Contribution of new logistics bases

Soaring marine and air freight rates

Increase in B2B distribution volume,

development of new customers,

rationalization of logistics rates, etc.

+ 65billion yen

+ 55.3%

+ 59

Q2

FY12/20

Q2

FY12/21

(Unit: 100 million yen)

Sales of Logistics Segment [Analysis of Change]


△138

Profits increased due to SBS Toshiba Logistics (TLOG) contributing to earnings, recovering

and growing B2B logistics, and measures to optimize rates and improve productivity.

+ 3,611

2,153 million yen

8,173 million yen

+609

+ 350

7

TLOG's contribution to

incomes

Other cost reductions,

etc.

Rationalization of fees

+ 6,020million yen

+ 279.6%

Establishment of a new

logistics base

Soaring unit price of

diesel oil

△392

Increase in B2B volume,

new customer

development, etc.+ 2,065

Increase in

depreciation of

goodwill, etc.

△85

Operating Income of Logistics Segment [Factor Analysis]

Q2

FY12/20

Q2

FY12/21

(Millions of yen)


624 621

3,305

5,059

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000


開発事業

賃貸事業

1,085 1,069

7,170

14,855

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000


△15 △2

+7,685

8

+1,754

Sales and profits increased due to the transfer of the Nanko Distribution Center (40%

stake in Nagatsuda Distrubution Center in the same period of the previous fiscal year)

8,255

15,924

3,929

5,680+7,669

+92.9% +1,751

+44.6%

Q2 FY12/20 Q2 FY12/21Q2 FY12/20 Q2 FY12/21

Property Management Segment [Net Sales and Operating Income]

Consolidated net sales Consolidated operating income

(Millions of yen) (Millions of yen)

Development

business

Leasing

business

* Development business: Construction and sale (liquidation) of logistics facilities to institutional investors, etc.

* Leasing Business: Leasing of logistics facilities, office buildings, residential properties, etc.


△36

3317

356

59

114

126

△50

0

50

100

150

200

250


太陽光

マーケティング

環境その他

人材

151

222

1,795 1,989

523615

821932

239

243

0

1,000

2,000

3,000

4,000


3,3803,780

9

+194

+110

+2

+91

+400+11.8% +70

+46.8%

+69

+12

△13

+4

Higher sales and profits due to a significant recovery in the Human Resources

business and solid performance in the Solar, Marketing, and Environmental

businesses

Q2 FY12/20 Q2 FY12/21Q2 FY12/20 Q2 FY12/21

Other Segment [Net Sales and Operating Income]


Solar power

Marketing

Environmental,

other

Human resources


End of FY2020 End of June 2021

Total assets: 261.7 billion yen

Fixed assets

1,631

Current

assets

985

Current

liabilities

966

Long-term

liabilities

891

Net assets

758

△59

+131

△144

＋138

＋77

Decrease in

inventories due to

sale of Nanko

Distribution Center

Increase in property,

plant and equipment

and goodwill due to

M&A

Decrease in

accounts payable

and short-term

borrowings

Increase in long-

term loans payable

Accumulation of

profits

10

Assets increased due to the addition of new consolidated companies, such as Toyo

Transportation Warehouse Co., Ltd.

Total assets: 254.5 billion yen

Fixed assets

1,500

Current

assets

1,045

Current

liabilities

1,111

Long-term

liabilities

753

Net assets

681

＋71

Consolidated Balance Sheet [YoY]


売上高

総資産

総資産回転率

11

Despite a decline in the previous fiscal year due to the impact of on-balance-sheet

sales at Toshiba Logistics, the outlook for the fiscal year under review is for a return

to an uptrend in line with sales growth

1,279 1,3221,415

1,580

1,491 1,529

2,035

2,5552,572

4,000

1,045 1,0841,311 1,248 1,223 1,278

1,718 1,800

2,545

2,617

1.25 1.24 1.18

1.23 1.21 1.22

1.36

1.45

1.18

1.55

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

0

1,000

2,000

3,000

4,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021予

Capital Efficiency Indicator [Total Asset Turnover Ratio]

Net S

ale

s a

nd

To

tal A

sse

ts

(Billio

ns o

f yen

)

To

tal a

sse

ts tu

rno

ver ra

tio (tim

es

)

E


16 1527

▲ 38

51 44 44

6168

107

2.7% 3.6% 3.0%4.5%

6.3%5.2% 5.1% 5.8% 5.0%

7.6%

6.2% 5.5%

9.0%

▲12.7%

16.9%

12.9% 11.6%

14.3%

14.2%

19.8%

▲ 50

▲ 30

▲ 10

10

30

50

70

90

110

130

▲15.0%

▲10.0%

▲5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

12

After a V-shaped recovery in FY2016, return on equity continues to achieve a high

level of over 10%

Asset and Capital Efficiency [ROA and ROE]

Ord

inary

Inco

me to

To

tal A

sse

ts / N

et In

co

me to

Sh

are

ho

lders

' Eq

uity

(%)

Net in

co

me (B

illion

s o

f yen

)

Return on equity

(ROE)

Return on assets

(ROA) Net income


274 289 318 280 325 364 397 451 507 573

1,044 1,083

1,311 1,248 1,223 1,278

1,7171,800

2,5452,617

26.3% 26.7%

24.3%

22.5%

26.6%28.5%

23.1%

25.1%

19.9%21.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

0

500

1,000

1,500

2,000

2,500

3,000

13

Improved in the current fiscal year due to the accumulation of profits, despite a

decline in the previous fiscal year due to the impact of M&A

Shareholders’ Equity Ratio

To

tal a

sse

ts a

nd

sh

are

ho

lders

' eq

uity

(Billio

ns o

f yen

)

Sh

are

ho

lders

' eq

uity

ratio

(%)

Shareholders' equity ratio

Total

assetsShareholders'

equity


274 286307

264

319357

393

445

502

567

381 392

512 515471

449

565539

700

649

1.39 1.37

1.66

1.95

1.48

1.26

1.44

1.21

1.39

1.14

0.00

0.50

1.00

1.50

2.00

2.50

0

100

200

300

400

500

600

700

800

14

After reaching a peak in FY2015, it has been on a downward trend due to the

accumulated profits. In the previous fiscal year, it rose temporarily due to the impact of

M&A, but in the fiscal year under review, it improved due to the accumulated profits

Interest-Bearing Debt/Net DE RatioN

et d

eb

t-to-e

qu

ity ra

tio (tim

es

)

Net In

tere

st-B

earin

g D

eb

t an

d S

hare

ho

lders

'

Eq

uity

(Billio

ns o

f yen

)

Shareholders'

equity

Net interest-

bearing debt Net Debt/Equity

Ratio


15

Significant increases in sales and profits due to the consolidation of

Toshiba Logistics and other factors

Net sales and operating income are expected to reach record highs for the

fourth consecutive year

実績値構成比予想値構成比増減額増減率

売上高 257,192 100% 400,000 100% 142,807 55.5%

営業利益 10,960 4.3% 20,000 5.0% 9,039 82.5%

経常利益 10,883 4.2% 19,500 4.9% 8,616 79.2%

当期純利益 6,826 2.7% 10,700 2.7% 3,873 56.7%

2020年度 2021年度

*On August 6, 2021, we made an upward revision to its business forecasts.

Consolidated Business Forecasts for FY12/21

(Millions of yen)

Net sales

Operatingincome

Ordinaryincome

Net income

FY12/21FY12/20

Results Forecasts Ratio to

sales

Ratio to

salesChange Pct. Change


*Operating income in the statement of income is the sum of the above operating

income of each segment, adjusted for consolidation and other adjustments.

16

【Logistics】In addition to capturing profits from SBS Toshiba Logistics,

existing group companies are accelerating their recovery from COVID-19

【Property Management】Increase profits by securitizing real estate for sale

2020年度実績値予想値増減額増減率

売上高 240,818 374,800 133,982 55.6%

営業利益 5,990 13,500利益率 2.5% 3.6%

売上高 9,349 17,000 7,651 81.8%

営業利益 4,558 6,200利益率 48.8% 36.5%

売上高 7,024 8,200 1,176 16.7%

営業利益 254 350利益率 3.6% 4.3%

セグメント

物　流 7,510 125.4%

2021年度

不動産 1,642 36.0%

その他 96 37.8%

Business Forecasts by Segment

SegmentFY12/20 Full-year FY12/21 Full-year

(Millions of yen)

Lo

gis

tics

Pro

pe

rty

Ma

na

ge

men

tO

the

r

Net sales

Operating income

Net sales

Operating income

Net sales

Operating income

Margin

Margin

Margin

Results Forecasts Change Pct. Change


40 4015

0

33

21 22

30

35

54

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

普通配当記念配当

10

30 30

3

18

（planned）

Jun. 2014

3-for-1 stock

split

Quarterly dividend

based on End-Mar.

2016: 16 yen

+ Year-end

dividend: 17 yen

Div

ide

nd

(yen

)

16

17

16

10

17

Basic policy is to continuously maintain dividends and strive to improve the level of

dividends in accordance with business performance

Dividend per share (planned) has actually more than quadrupled over the past 10

years, strengthening shareholder returns.

*On August 6, 2021, we made an upward revision to its business forecasts.

Shareholder Return [Changes in Dividend per Share]

Ordinary

dividendCommemorative

dividend


Growth Strategy of SBS Group

Masahiko Kamata, President


Month M&A, Business promotion, organizational management, etc.

Jan. • Acquired all shares of TOYO WAREHOUSE & TRANSPORTATION CO., LTD. (consolidation

from FY2021 Q2)

Mar.

• Japan Logistics Future Fund made investments in SOYU Co., Ltd. (Project No. 2)

• "Shelf transport robotics system" started operation at the Kita-Kanto Branch of TOSHIBA

LOGISTICS CORPORATION

Apr.

• Established the Group-wide Infrastructure Promotion Department in SBS Holdings

• SBS Logicom acquired all shares of K.U.K LINE (consolidated from FY2021 Q3)

• SBS Flec acquired all shares of HINOMARU KYUSO, K.K. (consolidated from FY2021 Q3)

• Concluded agreement to acquire shares of Furukawa Logistics Corp.

May • Transfer of trust beneficiary interest in Nanko Distribution Center

Jun.• SBS Ricoh Logistics and SBS Toshiba Logistics Corporation won the "Logistics

Rationalization Award" at the Japan Logistics Improvement Case Study Competition

(Jul.)• SBS Ricoh Logistics acquired all shares of JAS Co., Ltd.

• Establishment of "Business Strategy Dept." in SBS Holdings

191H FY12/21 Topics


M&A Strategy of the SBS Group

Development of an M&A strategy from the year following the listing of shares

(2004)

Total investments (2004-2021)：Approx. 75 billion yen

2020/2004 Group net sales: 12times, Operating income: 24times

20

Enhancing corporate

value through the

excellent

organizational culture

and human resources

of national brand

companies

TSE2 TSE1

Net

sales

Net sales

Operating

income

Main M&A

’04 Snow Brand Logistics current: SBS Flec

‘05 Tokyu Logistic current: SBS Logicom

’06 Zentsu current:SBS Zentsu

‘10 VICTOR LOGISTICS current: SBS Logicom

’10 AC system corporation current: SBS Global network

’11 NIPPON RECORD CENTER Co., Ltd. current: SBS Logicom

’18 Ricoh Logistics current:SBS Ricoh Logistics

‘20 Toshiba Logistics current: : SBS TOSHIBA LOGISTICS CORP.

’20 TOYO WAREHOUSE & TRANSPORTATION CO., LTD(旧 SMC

Group)

’21 Furukawa Logistics corp. (FURUKAWA ELECTRIC Group)

operating

income

Unit: billion yen

E


Accelerate "Small M&A"

In parallel with business expansion through large-scale M&A, we are

expanding our service system by bringing in "community-based" businesses

to the Group.

"Japan Logistics Future Fund" Investment Projects completed support and

joined the Group

* Japan Logistics Future Fund……

A fund that supports the independence of small and medium logistics companies suffering from succession difficulties

and a shortage of management resources.

Feb. 2020: Established as equally owned by the Development Bank of Japan and SBS Holdings.

HINOMARU KYUSO,

K.K. (Takamatsu City)

Apr. 2021

Acquired all share

of SBS Flec

(49→100%)

K.U.K LINE

(Osaka City)

JASS Co., Ltd.

(Aizuwakamatsu City)“Japan Logistics

Future Fund”

EXIT projects (No.1)

Apr. 2021

Acquired all share

of SBS Logicom

Jul. 2021

Acquired all share of

SBS Ricoh Logistics

Planned in

Autumn 2021

21


４ＰＬ３ＰＬ

Logistics Facilities

Logistics

DX

Strengths in the Logistics Industry

Organically collaborate with Group companies' strengths to build a

unique business portfolio that encompasses logistics and its related

areas

• Last mile

• B to B same-day

delivery

• Trunk transport

• Transportation of super-

heavy goods

• Modal shift

• 3 temperature zone

transportation

• Facility relocation,

moving

• In-house logistics

• Logistics Consulting

• International integrated transport

• Operation of distribution center

• WMS

• LT planning and introduction consulting

• LT professional organization

• Fulfillment Services

• iGOQ, a vehicle matching system

• Development of logistics facilities

• Facility liquidation

• Real estate leasing

• Solar power

22

Transportation


Logistics Business： Logistics warehouses floor space

Early realization of 1 million tsubo of operating floor space

23

Name * Including tentative namesScale (total floor

area/tsubo*)

Operation

periodType Company

Existing (As of June. 30, 2021) 749,000 tsubo

SBS Toshiba Logistics 200,000 Jan. 2021 M&A SBS Toshiba Logistics

TOYO WAREHOUSE & TRANSPORTATION CO.,

LTD. 18,000 Jan. 2021 M&ATOYO WAREHOUSE &

TRANSPORTATION CO., LTD.

1. Yokohama-Kanazawa 15,430 Apr. 2021Develop

mentSBS Ricoh Logistics

2. Atsugi Mori no Sato 17,400 May 2022 Leasing SBS Ricoh Logistics

3. Noda-Seto A 44,0002023

(planned)Develop

mentSBS Logicom

4. Noda-Seto B 32,000 2024 (planned)Develop

mentUnder planning

5. Ichinomiya Land (Aichi Pref.) 18,000Under

planningDevelop

mentSBS Ricoh Logistics

6. Tomisato Land (Chiba Pref.) 30,000Under

planningDevelop

mentSBS Logicom, etc.

7. Kazo Land (Saitama Pref.) 16,000Under

planningDevelop

ment

Projected floor space expansion (1.-7.) 191,000 tsubo

Total (existing + expected expansion) 940,000 tsubo

* Figures are rounded to the nearest 100 tsubo.


Property Management Business: Overview, Business model

Development of logistics

facilities/Liquidation

• FY21 results: Nanko Distribution Center (May)

Net sales: 14.8billion yen

Operating income: 5 billion yen

• Development results: 22, Total floor area: : Approx.

150,000 tsubo

Of the above, approximately 105,000 tsubo is leased

back.

SBS Group's unique logistics facility development model

Leasing Business

It owns and operates approximately 35 roadside stores,

residential properties, and urban offices, mainly in the

Tokyo metropolitan area.

≪Solar power≫

Solar panels are installed in most of the logistics facilities developed in order to realize a low-carbon society and effectively use assets.

In the future, we will shift from the electric power selling business to the in-house consumption.

Number of facilities: 14 locations

Power generation scale:Approx. 11 megawatts

24

【Minami-Shinjuku SK

Building】Purpose: Office

Site area: 1,143㎡

Total floor area:7.531㎡

【Makuhari Building】Purpose:

Roadside store

Site area: 2,655㎡

Total floor area: 1,595㎡

【Santokoa Kagurazaka】Purpose: Residence

Site area: 493㎡

Total floor area: 1,921㎡


Yokohama Kanazawa Distribution Center to be completed

this autumn!

SBS Group's first R&D facility to begin operation as a large-scale 3PL

center that makes full use of cutting-edge IT/LT (Oct. 2021)

development of logistics facilities: SBS Logicom

Center operation: SBS Ricoh Logistics

Main shippers: Major EC companies

Operational Objectives: Aim to dramatically improve

productivity by combining the latest material handling

facilities with systems that utilize AI/big data.

BCP/ environmental measures: Seismic isolation

structure, floor height and facility design assuming

tsunami damage, emergency generators, self-consuming

photovoltaic power generation facility, whole building

LED lighting, energy-saving air conditioning design using

large ceiling fans in the room, CASBEE-A ranking

(Yokohama City), etc.

AI logic／Big Date

Product A: Unit 2Product B: Unit 1Product C: Unit 2

・・

Shuttle rackJapan's Largest Auto Store

25


Property Management Business: Construction starts

Noda Seto Distribution CenterＡ

Distribution Center Ichinomiya (provisional name)

26

SBS Sokuhai Support

SBS Asset Management Co.,Ltd. Construction starts in February 2022 and is

scheduled to be completed in November 2023

SBS Ricoh Logistics Construction starts in January 2022 and is scheduled to be

completed in March 2023

First logistics facility development in the Chubu region

(provisional name) Noda Seto Distribution Center A

Construction Site 145-1, Ikebukuro, Seto, Noda-shi, Chib, etc.

Transportation 5km from Joban Expressway “Kashiwa” IC

Site area 73,271.57㎡ (22,1664.64 tsubo)

Total floor area

Structural Scale

167,867.79㎡ (50,780.00 tsubo)

RCS-built four-story building

Distribution Center Ichinomiya（provisional name）

Construction Site 27, Higashinakada, Oyama, Chiaki-cho, Ichinomiya-shi,

Aichi

Transportation ・About 4km from Meishin Expressway”Ichiomiya” IC

・About 15 minutes by express train from Nagoya

Railway Nagoya Station to Iwakura Station

About 10 minutes by Meitetsu bus from Iwakura Station

Site area 29,683.52㎡ (8,979.26 tsubo)

Total floor area

Structural Scale

69,578.42㎡ (21,047.47 tsubo)

RCS + S, 4, four-story building


Consolidation of headquarters functions of SBS Group companies

in Nishi-Shinjuku（End of 2021 through Beginning of 2022）

"Koso“

(Collaborative creation)Accelerate group convergence and intersection

Leap to Next Stage!

Work

style

reform

Topics 27

Sumitomo Realty & Development Shinjuku

Grand TowerPart of our proprietary 24-26F and 37F

2,827.26 tsubo (approx. 9300 m2)

Integrati

on

Office

reform

Functional layout rather

than company-specific

zoning

Paperless and free address

Effective use of public

space

Promotion of remote

working


Topics

Renewal of uniform of SBS Group (Spring 2022)

The design is based on a monotone color

scheme that does not stain easily, giving

customers an even greater sense of security

and sophistication.

Employees of SBS Toshiba Logistics and

other group companies wear the relevant

uniforms to create a sense of unity within the

group.

28


Topics

Sponsorship agreement with pro golfer Ryo Hisatsune

(March 2021-)

Ryo Hisatsune Born in 2002

Belongs to：SBS Holdings, Inc.

29

Results this season

May 20-23 GOLF PARTNER PRO-AM Tournament …… 16th.

May 26-28 Taiheiyo Club Challenge Tournament …… 3rd.

Jun.9-11 LANDIC CHALLENGE 8 …… 6th.

Jun.16-18 Japan Create CHALLENGE in Fukuoka RAIZAN ---Champion

Jun.24-26 Daisen dori Cup…… 21st.

Jul. 7-9 JAPAN PLAYERS CHAMPIONSHIP CHALLENGE -- 2nd.

Jul. 28-30 Minami-Akita Country Club Michinoku Challenge Tournament --

-- Champion


Build a foundation to establish a unique

presence as the top tier in the logistics industry1. Expand and strengthen the organic coordination of transportation

and delivery functions

1. Organize functions for international business collaboration

2. Strengthen strategic introduction and proposal of IT and LT

3. Promote sales expansion into competitive 3PL and 4PL fields

4. Launched the "Growth Strategy Project" at SBS holdings.

Strengthen the Group's organizational capabilities by standardizing

various systems and IT systems

Become a "mega venture" that achieves sustainable

growth through logistics and IT!

30Management Policy for FY12/21

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Financial Results Briefing

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