Interim Financial Results3PL for E-Commerce Test Site for Logistics Automation and Robotics Name Noda Logistics Center Address Seto Noda-City A+B Building A Building B Land 115,857㎡

For the Fiscal Year Ended December 31, 2018Interim Financial Results

August 10th , 2018SBS Holdings, Inc.

Copyright SBS Holdings, Inc. All rights reserved. FY2018 Financial Results Briefing

Interim Business Resultsand Forecasts

for FY2018

SBS Holdings, Inc.Executive Officer and General Manager

Finance Division

Takashi Endo

１１


Consolidated Performance (YOY Comparison) ２

(Millions of yen)

Amount % of Total Amount % of TotalYOY Change(amount)

YOY Change(%)

Net Sales 71,762 100% 77,178 100% 5,416 7.5%

OperatingProfit

1,743 2.4% 2,337 3.0% 594 34.1%

OrdinaryProfit

2,055 2.9% 2,233 2.9% 177 8.6%

Net Income 1,417 2.0% 1,221 1.6% (196) (13.9%)

2017 2Q 2018 2Q


Consolidated Performance (Actual vs. Planned) ３

(Millions of yen)

３

* Planned data was announced on February 13, 2018.

Planned % of Total Actual % of TotalYOY Change(amount)

Achieved Ratio

Net Sales 75,000 100% 77,178 100% 2,178 102.9%

OperatingIncome

2,000 2.7% 2,337 3.0% 337 116.9%

OrdinaryIncome

2,100 2.8% 2,233 2.9% 133 106.4%

Net Income 1,300 1.7% 1,221 1.6% (78) 94.0%

Interim FY 2018


Performance Trends by Segment （YOY）４

• The sum totals of the operating incomes of each of the aforementioned segments after adjusting for consolidated eliminations are listed as operating income in statements of operations.

• Adjustments for FY2017 and FY2018 are (¥67) million and (¥270) million, respectively.

(Millions of yen)

2017/6Amount Amount

YOY Change(Amount)

YOY Change (%)

Net Sales 67,153 72,432 5,278 7.9%

OperatingIncome 928 1,653

Ratio 1.4% 2.3%

Net Sales 1,302 1,435 133 10.2%

OperatingIncome 653 796

Ratio 50.2% 55.5%

Net Sales 3,306 3,310 4 0.1%

OperatingIncome 229 158

Ratio 6.9% 4.8%

Oth

ers (71) (31.0%)

Segment2018/6

Logistic

s 725 78.1%

Pro

perty

MGM

T

143 21.9%


Performance Trends by Segment (Reference) 5

* The sum totals of the operating incomes of each of the aforementioned segments after adjusting for consolidatedeliminations are listed as operating income in statements of operations.

（Unit : Million Yen）

2017/6Amount Amount

YOY Change(Amount)

YOY Change (%)

Net Sales 67,153 72,432 5,278 7.9%

Operating Income 1,689 2,402Ratio 2.5% 3.3%

Net Sales 1,302 1,435 133 10.2%

Operating Income 695 835Ratio 53.4% 58.2%

Net Sales 3,306 3,310 4 0.1%

Operating Income 268 189Ratio 8.1% 5.7%

Oth

ers (79) (29.6%)

Segment2018/6

Logistic

s 713 42.2%

Pro

perty

MGM

T

139 20.1% Before adjustment

Before adjustment

Before adjustment


Consolidated Balance Sheet Trends

As of December 31, 2016

Total Assets 127.8

As of June 30, 2017

Total Assets 131.8

Current

Assets

45.4

Non-Current

Assets

86.4

Current

Liabilities

44.9

Net Assets

39.0

Non-Current

Liabilities

47.9

+2.5(2.0)

+5.9

＋0.9

+0.5

Billions of yen

+2.8

Current

Assets

47.3

Non-Current

Assets

80.4

Current

Liabilities

42.3

Net Assets

38.5

Non-Current

Liabilities

46.9

6


Stock Acquisition of RICOH Logistics

Common Stock Acquisition August 1st 2018.

Quantity 4,333,333 Stocks 18 billion yen

66.6% voted right

Due Diligence Cost 0.3 billion yen

Object :

Enriching significant Management Resource for second era of SBS group after 30years anniversary.

Ricoh Logistics

100%

ＳＰＣ

Ricoh Logistics

66.6%

33.4%

７


RICOH Logistics System Profile

Ricoh DomesticRoute Logistic

25%

Ricoh DomesticProduction Logistics

16%Ricoh

OverseasFreight Foreword

17%

Ricoh OverseasLogistics

9%

Ohtsuka “Tanomail”

19%

Others15%

Sales Segmentation

Coporate Profile

Comp. Name Ricoh Logistic System, Co. Ltd

Address 1-2-6 Keihin-JimaOta-Ku Tokyo

President Katsuhisa Wakamatsu

Establishment February 1964

Paid in Capital 448 million yen

Officies Domestic 105Overseas 5

Number of Employees4,034 (Parmanent 1,780)

８


RICOH Logistics 3 years trend ９

(Millions of yen)

Consolidated Mar.31st 2016 Mar.31st 2017 Mar.31st 2018

Sales Amount 74,679 71,420 71,725

Operating Income 1,957 2,182 1,929

Operating Income Ratio 2.6% 3.1% 2.7%

Ordinary Income 1,867 2,092 2,057

Net Income 1,278 1,294 1,428

Net Assets 14,502 13,430 13,939

Assets Total 33,634 32,569 33,246


Revised Forecast for 2018

Original Plan % of Total Revised Plan % of TotalYOY Change(amount)

Achieved Ratio

Net Sales 160,000 100% 202,000 100% 42,000 126.3%

OperatingProfit

7,000 4.4% 7,500 3.7% 500 107.1%

OrdinaryProfit

7,200 4.5% 7,200 3.6% 0 100.0%

Net Income 4,400 2.8% 4,000 2.0% (400) 90.9%

FY 2018

(Millions of yen)

１０


Dividend per share

FY2018 Fiscal year-end dividend

Base date: December 31, 2018Expected Amount of Dividend per Share: 21 yen

Keeping Dividend amount per share2018:

Regular Dividend 21 Yen2017:

Regular Dividend 17 YenAdditional Dividend 1 YenDividend for 30 year Anniversary 3 Yen

１４


FY2018 Group Management

SBS Holdings, Inc.President

Masahiko Kamata

１１２


3PL Expanding TrendWinning New or Expansion of Existing customer Getting business inquiry through

WEB.(case study introduction)

Winning business by systematicsales activity

New business

customer（territory）稼働月拠点

Amusement Mar SBS Logicom Inzai

Ｅ-Ｃommerce （Health and beauty）

Mar SBS Logicom Inzai No.2

Retailer（Novelty） Mar Nihon Record Center Atsugi

Retailer（Grocery） May SBS Logicom Konan

Sports Wholesale May SBS Logicom Hadano

▲Publishing

▼WEB

１３


Logistics Topics Last One Mile expansion Drivers hireling going well SBS Logicom, SBS Flec started

servicing in Kanagawa, ChibaWinning New “Same day

delivery” customers Price up by the market leader

brings customers to us Optimization of Truck Analyzing by truck

（SBS Logicom）

Truck Allocation, Loading Planning

１４


Osaka Nanko Logistics Center(Mar. 2019 completion)

Constructions in order Refer photos on WEB

in SBS Logicom Sales Progress 70% occupied Department Store,

Grocery retailer, etc. Expecting Customers Office furniture manufacturer E-Commerce retailer

Virtual Video on WEB inSBS Logicom is broadcasting.

Name Osaka Nanko Logistic Center

Address 2 Chome Nanko Suminoe-Ku Osaka

Land 24,858㎡

Total Floor Area 61,274㎡

ConstructionSteel Reinforced ConcretePartially Reinforced ConcreteConstruction

Drawing &Construction DAIWA HOUSE INDUSTRY CO., LTD

StartConstruction. Oct. 2017

ExpectingCompletion Mar. 2019

１５


Nodaseto project start construction Dec. 2019

Biggest Project Ever in SBS Group.

Total Investment 35 billion yen

Access 7 Minutes from

“Kashiwa Interchange”

Land Acquisition Jun 2018(Under Land Development)

Expecting Major Client 3PL for E-Commerce

Test Site for Logistics Automation and Robotics

Name Noda Logistics Center

Address Seto Noda-City

A+B Building A Building B

Land 115,857㎡ 53,208㎡ 62,649㎡Total Floor Area 265,964㎡ 122,602㎡ 143,362㎡Start Construction Dec. 2019 2021

Expected Completion 2021 Summer 2023 Spring

１６


ACQUISITION OF RICOH LOGISTICS SYSTEM CO, LTD

１７


Strength of RICOH Logistics Logistic for Manufacturer

and B to B Close Connection: RICOH,

OTSUKA CORPORATION Nationwide Network Precision Goods handling Office Supply (B to B) JIT Logistics for production, Overseas Logistics Control measures for inventory management Freight ForwardingWarehouse Automation and IT know how State-of-the-art logistics technology

１８


Expecting Synergy 3PL but totally different fields

-Contributing to each otherReinforcementof nationwide

networkAutomation and

robotics

Boost for Supply Chain MGMT

Reinforcement of overseas business

調達⽣産保管流通販売

Expansion

SBS3PL

顧客獲得

⽤地取得

施⼯監理竣⼯・稼働

賃料・運⽤資⾦回収

Enrichment ofbusiness model for

property MGMT

１９


Resources to be shared

RICOH Logistics Nation wide logistic network

Precision goods handling

Office supply

Overseas network Freight forwarding Warehouse automation by

“Logistics Technology”

ＳＢＳ GROUP Warehouse Development Delivery network in

metropolitan area Nation wide power gate

truck network Temporary Staff dispatcher

Supplying logistic consumption

Maximizing Group Synergy

２０


Similar Corporate Culture “Humans First”“Challenging Spirit”“Open Mind”

-Corporate Culture is synergetic Regional and department cross-cultural workshops to be held

periodically. ≪Topics≫

220 management members from both companies attended meeting at which all disciplines were presented on July 31st 2018. Co-work idea had been exchanged.

２１


Projects to be Launched

(1) Last One Mile

(2) Sharing Logistic Technology and Nation Wide Logistic Network

(3) Overseas Business

(4) Exchanging Logistic Knowhow

２２


Last One Mile

Last One Mile Transportation from Metropolitan area to Nationwide RICOH Logistics + SBS Sokuhai

Support B to B Last One Mile start from Nagoya and Osaka area

Realizing 3PL Service Model with power of “Proposal”,”Analysis”,”Fielding” and “Delivery”

２３


LT and Nation Wide Logistic Network Sharing Precision Transportation Technology and

Nationwide Network State of the Art Logistic Technology will be shared among

SBS group ➢ Winning new client Sales technology of SBS group brings

strong power.

２４


Overseas Business Effectively use of overseas organization Obtaining buying power for SBS and RICOH Logistics overseas

business.(Freight Forwarding's) Activating SBS Thailand and SBS Vietnam for major customer of

RICOH Logistics SBS moves into RICOH Logistics in Hong Kong

DutchCalifornia

Hong Kong

Shang Hai

Shenzhen

RICOH LOGISTICS SITE SBS SITE

Vietnam

Thailand

２５


Exchanging Logistic Knowhow Developing Advanced Warehouses for a new era

Advanced Warehouses will be developed by combining RICOH Logistics’ advanced knowledge /technology and SBS’s property development knowledge using systematic sales technology.

27

２６


M&A realizes corporate growth Using strength of each subsidiary, other subsidiaries fulfill

customer’s requirements which is beyond. By this method, each subsidiaries catching business chance and grow. 億円

300

03 1805 10 1504 06 07 08 09 11 12 13 14 16 170

200

100

Yukijirushi‘04

Tokyu Logistics‘05

全通‘06AC system Corp‘10

Japan Record Center‘11

Atlas Logistics Pvt.Ltd‘11

RICOH Logistics‘18

19 ×× ×× ×× ××

Victor Logistics‘10

JASDAQ上場

TSE 2TSE 1

Billion Yen

２７


Documents

Interim Financial Results3PL for E-Commerce Test Site for Logistics Automation and Robotics Name Noda Logistics Center Address Seto Noda-City A+B Building A Building B Land 115,857㎡