SBSBusiness Report 2009

SBS Holdings, Inc.

(From January 1, 2008 to December 31, 2008)

1

Mission Statement

Contributing to the profit generation of clientsas a “business infrastructure provider”

Forward-lookingstatement

The information contained in this document concerning operating results projections and descriptions other than objective facts is based on judgments

made using information available to SBS Group as of the date this document was prepared, and includes various risks and uncertainty factors. SBS

Group cautions investors against relying solely on these descriptions when judging an investment in SBS Group. Investors should recognize there is a

possibility actual operating results may vary from the operating results projections described in this document due to various factors, including the

economic environment surrounding the businesses of SBS Group, market trends and exchange rates.

Since its foundation in 1987, SBS Group has proclaimed “business

infrastructure provider” as its business concept and delivered a wide

range of services that meet diversified customer needs. This business

concept signifies that SBS Group provides superior business infrastructure

(incidental operations) that enables our clients to concentrate on the core

competence (main business) that is the source of their competitive edge,

and in the future, we will expand our service areas to encompass every

SCM (supply chain management) operation.

In the years ahead, SBS Group will support growth from every

perspective as its clients’ best partner.

•The cluster of basic functions that enable a company to

concentrate on creative activities in the core competence

that is the source of its competitive dominance.

•The specialized operations that form a common basis

for business development or operations that require

highly cost-efficient activities.

Workflow accelerates(Streamlining and optimization of operations)

Corebusiness

Core business

Business infrastructure is...

2

Message to Shareholders and Investors

On behalf of SBS Group, I would like to express our appreciation for

the exceptional encouragement we have received during the past year.

It is with pleasure that I present this report for SBS Holdings, Inc. for

the 23rd Business Period (from January 1, 2008 to December 31, 2008).

During the fiscal year under review Japan’s economy entered a

recessionary phase. Prices for crude oil and other raw materials and

the cost of certain grains jumped sharply, and the subprime loan

problem in the United States, which had been a source of growing

concern, triggered a global financial crisis that spread to the real

economy. A rapid cooling of the markets in Japan was evident in the

latter half of the fiscal year.

In our logistics business as well, difficult circumstances continued.

In addition to the steep rise in the price of fuel, which accounts for a

large percentage of our costs, the slump in demand expanded. This

included a decline in the movement of goods, which resulted from

lower personal consumption and the deterioration of corporations’

operating results.

Faced with this operating environment, SBS Group sought to further

expand orders through service upgrades and aggressive marketing

development. We simultaneously pursued measures that included

quality and efficiency improvements based on operational improvement

activities, withdrawal from unprofitable operations, review of our branch

offices, and the restructuring of certain group companies. Nevertheless,

factors such as high fuel prices that exceeded our assumptions and

the cancelation of a logistics facility liquidation project because of

the financial contraction compelled us to review our initial plans.

As a result of the above factors, consolidated net sales and earnings

for the current fiscal year fell below the level in the prior fiscal year (for

details please see the Review of Operations on page 10).

By any measure, it was a challenging year for SBS Group. In the year

ahead, we look forward to continuing to receive your unwavering support.

Masahiko KamataPresident, SBS Holdings, Inc.

3

Interview with the President

Regrettably, net sales and earnings for the current

fiscal year did decline. Factors such as a large-scale

real estate asset liquidation project in our financial

business in the prior fiscal year, and the sale of a consolidated

subsidiary, resulted in a net sales decline of more than ¥10 billion.

Ultimately we were able to minimize this decline to ¥7.6 billion

because of positive factors resulting from our business efforts.

Substantively, net sales for the current fiscal year were higher.

On the other hand, although we had planned for a 40% decrease

in operating income and ordinary income as a result of the same

factors that affected net sales, earnings were further depressed

because of the sharp rise in fuel costs and the cancellation of

a real estate asset liquidation project because of the global

financial contraction, and earnings experienced a much broader

decline. We also reported a loss on valuation of investment

securities, an impairment loss in conjunction with a review of

our businesses, as well as extraordinary losses as a result of

pursuing streamlining efforts, including withdrawal from unprofitable

operations and the unification and reorganization of branches, all

of which resulted in substantially lower net income. These were

one-time losses, however, and our actions also included positive

measures that will produce higher earnings in future periods.

We can further explain recent operating performance by

looking at our businesses centered on logistics and our financial

business. Operating results in the financial business are susceptible

to facility development trends and market conditions. The changes

in operating results are shown as a graph in Figure 1. The

orange line branching off in a downward direction shows

operating income excluding the financial business. As you can

see from this graph, even though earnings vary considerably,

our businesses centered on logistics are expanding steadily.

The operating results of SBS Group for the current fiscal year deterioratedcompared with the prior year. What were the reasons?

A

Q

Change in net sales and operating income

160

140

120

100

80

60

40

20

0

(billions of yen)Net sales

8

7

6

5

4

3

2

1

0

(billions of yen)Operating income

2004

45.1

89.3

142.6 147.1139.4

2005 2006 2007 2008

Net salesOperating incomeOperating income (excluding financial business)

Change in operating incomeexcluding financial business

0.7 1.5

1.8

6.0

6.8

3.3

2.5

2.2

Light oil market price (national average)

160

140

120

100

80

(yen)

6 7 8 9 101 2 3 4 5 11 12

Japan Trucking Association data2008 (month)

[Figure 1]

[Figure 2]

4

In our financial business, the deterioration in the

financial situation has mainly affected the

property asset management business and the

property development business, particularly for logistics

facilities. Until recently we completed logistics facilities

liquidations at a pace of one or two facilities each year.

During the current fiscal year, however, this business was

buffeted by the severe financial contraction, and one of the

two scheduled projects was canceled. Because customers

use these facilities under long-term contracts, however, our

logistics facilities recover their investment capital steadily in

the form of rents. Worries such as a loss of asset value are

not a problem. Our objective in structuring liquidations is a

lump-sum recovery of the capital investment in logistics

facilities and other structures provided to customers who

have consigned their third-party logistics business to us, by

means of the liquidation technique, in order to invest the

funds in subsequent investments. Because we will continue

to concentrate on strengthening and further expanding our

third-party logistics business, we will develop logistics

facilities as necessary, and determine whether to apply the

liquidation technique after considering financial conditions

at the time. Our policy is to continue utilizing liquidations of

properties we have developed, in order to remain financially

sound. With regard to the next fiscal year, however, we

have not incorporated this activity into our plans because

future financial conditions are difficult to project.

Please discuss the influence of the deterioration in thefinancial situation on SBS Group’s financial business.

A

Q

5

Interview with the President

Although net sales in our logistics business were

off 1.6% year on year, the main reason was the sale

in the prior fiscal year of Duck Co., Ltd., our moving

services subsidiary, which reduced net sales by about ¥3.7

billion. So net sales were up substantively by about ¥1.8 billion,

or 1.6% year on year. In addition, operating income was ¥2,566

million, up 12.2% or approximately ¥300 million year on year.

I believe this reflects the contribution to net sales and

earnings from the full year operation of our newly developed

logistics center, the effects of performance management based

on a review of our earnings management techniques, cost

reductions achieved through consolidation and reorganization

of our branches and the results of operational improvement

activities we initiated three years ago. Although costs jumped

by about ¥450 million during the current fiscal year because

the price of fuel remained at very high (see page 3 Figure 2),

we were able to absorb this and ensure higher earnings. We

evaluate this as just one example of how we have steadily

improved our site capabilities.

As an investment for the next fiscal year, in October of last

year we installed digital tachographs and drive recorders

(see Figure 3) in about 1,000 vehicles, which correspond to

one-third of all trucks and vehicles owned by SBS Group.

Once these devices go into full operation in the next fiscal

year, we can anticipate direct results such as lower fuel costs

and prevention of accidents. We’ll use the information we gain

to build an integrated vehicle dispatching system and improve

delivery efficiency.

What is the reason the logistics business is stable when operating resultsfor SBS Group overall are under pressure?

A

Q

What is a digital tachographand drive recorder?

A digital vehicle operations recorder. Records data

on various operating conditions such as vehicle

speed, engine rotational speed, acceleration and

gear status while running, which can be used to provide

drivers with safe driving instructions. By also applying

the data for energy-efficient driving, an average fuel

cost improvement of 15%* has been achieved.

Digital tachograph

A device that records image and running data before

and after an accident or when a driver’s rapid

acceleration or sudden deceleration could have

caused an accident. Referred to as a flight recorder

when used in aircraft. The advantages of such

recorders include faster accident processing,

fewer accidents, reduced fuel expenses and the

application of data for development of next-generation

safety devices.

Drive recorder

Digital tachograph unit

*Manufacturer test

[Figure 3]

6

The recession caused by the global financial crisis

shows every sign of being prolonged, and we

believe the unpredictable nature of the economic

environment during the fiscal period ending December

2009 will continue. Business conditions are expected to

become even more severe than in the current fiscal year

because of a further drop in demand, requests from

shippers for lower prices and greater competition among

logistics corporations to survive.

Given such circumstances, we intend to challenge these

obstacles and achieve our business plan in fiscal 2009

through five measures (see Figure 4). We will focus most of

our efforts on “strong business development.” In difficult

times, we believe the number of firms undertaking a

fundamental review of management will increase, as

companies seriously strive to resolve management issues

including logistics reform. To capture such demand

accurately, SBS Group has positioned “strong business

development” as its most important policy and will strive

vigorously to develop new customers. Specifically, we will

Please discuss your efforts for the next fiscal year.

A

Q

complete our Noda Logistics Center as a new base in the

spring of 2009, expand our third-party logistics business

for the furniture and household goods retail trades, develop

new customers by establishing a new business specialty

division and using outbound call centers and the Internet,

and develop proprietary training courses and strengthen

our third-party logistics consultant business.

Based on these considerations, for the fiscal year ending

in December 2009 SBS Group is projecting net sales to

decrease 6.7% year on year to ¥130 billion, operating

income to decrease 6.8% year on year to ¥3.1 billion,

ordinary income to decline 7.4% to ¥3.7 billion and net

income to increase 129.2% to ¥2.2 billion.

To improve shareholder value, our policy concerning

dividends is to continue paying stable dividends that are

unaffected by short-term fluctuations in earnings. For the

next fiscal year, we are planning to pay dividends of ¥2,300

per share.

[Figure 4]

2009

Fundamental

policies

Strong businessdevelopment

Objectives

Cost reductions inevery operation

Concentration onemployee training

Strengthen and maintaina sound financial position

Compliance andinternal control

Net sales

Operating income

Operating income margin

¥1,300 billion

¥31 billion

2.4 %

7

Vigorous activities for operational

Changing the way employees think is the essenceof our operational improvement activities, anddevelopment of our human resources is theultimate objective.Through continuous improvement activities, SBSgroup strives to foster the human resources whowill lead the drive for next-generation logistics.

Joined SBS in November 2006. Assumed current position afterserving as a director of Logione Co., Ltd., the logistics subsidiaryof Daiei, Inc. General Manager, TL LOGICOM Co., Ltd.Improvement Headquarters. Assumed the position of Chairman ofthe Logistics Site Improvement and Revitalization Committee atthe Japan Institute of Logistics Systems (JILS) in August 2008.

Profile

Before joining SBS Holdings in November 2006, I served as

a director of LOGIONE Co., Ltd. and as a member of the

Logistics Site Improvement and Revitalization Committee

at the Japan Institute of Logistics Systems. While serving in

the latter capacity, President Kamata expressed his desire

to use “Improvement” as a core theme to reinvigorate SBS

Group and strengthen its logistics center capabilities, and

asked whether I would cooperate with that effort.

Because I was coordinating the logistics strategy for

Daiei, Inc., the offer stirred my interest, but there was one

condition for me to join the Company. That was that SBS

establishes a full-time internal improvement management

organization. Undertaking improvement activities can create

resistance from people who rely on traditional ideas and

techniques. Individuals responsible for improvement cannot

create a path forward if he or she holds concurrently other

posts, because improvement requires rejecting current

conditions and attempting a new approach. Based on

these discussions, SBS Holdings created the Improvement

Supervisory Department.

The essence of “Improvement” is a change in our way of

thinking. By accumulating personal transformations, we

change the optimal way we perform our work. Such change,

however, must not be transitory. We must maintain our

motivation, retain our intention to improve and continue

challenging ourselves, even when we no longer receive

guidance from the Improvement Supervisory Department

Moreover, the ultimate objective of “Improvement” is

development of our human resources. In 2007 our main effort

was directed at having employees internalize and accept

this basic awareness, and since 2008, we have been making

a full-scale push to foster human resources who are capable

of transforming their work through programs such as

improvement training.

2006 was the First Year of “Operational Improvement” at SBS Group

Change in thinking is the essence of improvement,development of human resources the ultimate objective

Until now

Service improvement requests

Cost reduction requests

Objectives

SBS

Operating incomegrowthPresent customer satisfaction proposals

Firmly establish low-cost operations

Operating incomedeterioration

Improvement activity objectives

Customers

Customers

Michio AmemiyaCorporate OfficerGeneral Manager, Improvement Supervisory Department

8

improvement

Once every six months, SBS Group holds an “SBS Group

Improvement Case Study Meeting” to announce workplace

improvement activities. The fourth meeting was held in

January of this year at Tokyo Big Sight. Ten teams won to

participate in the team selection competition, and the team

from Tohoku Wing Co., Ltd.’s Iwanuma No. 2 Logistics

Center, which worked to improve operating income through

optimal staff assignments, was chosen to receive the

President’s Prize, the First Place award. Individuals from

the mass media also are invited to the meetings, and have

reported the evaluations of the meetings, which indicate

the ideas presented have become increasingly constructive

over time.

One issue, however, is significant. What is important is

whether participants are able to return to their workplaces

and clearly and fervently convey what they learned at the

meetings to other employees in their offices. Because it

aims at increasing operating performance in the workplace,

improvement is meaningless unless every employee,

including part-time and temporary workers, absorbs and

works with an improvement mentality.

Fourth “Improvement Case Study Meeting” held

With economies around the world now slipping into

recession, corporations’ operating results are deteriorating.

While customers who order services from logistics firms are

calling for cost reductions and higher quality service, simply

accepting such requests will not halt the downward trend in

operating income. This means achieving thorough low-cost

operations in each workplace, and upgrading services, are

both necessary to improve earnings.

SBS Group has not adopted a passive stance of waiting for

guidance. We will aggressively propose high-value-added

services while lowering workplace costs by pursuing

improvement activities. I believe this approach will enable

us to develop new business opportunities. As the manager

responsible for SBS Group’s improvement activities, I will

continue focusing on creating an innovative corporate culture

and fostering excellent human resources.

Towards low cost and high quality

Fourth SBS Group Improvement Case Study Meeting Examination results

Ten presentation teams and judges

President’sPrize

Second Place

Third Place

Fourth Place

Fifth Place

Tohoku Wing Co., Ltd. (Foods Lec Group)Iwanuma No. 2 Logistics Center

Sogo Butsuryu System Co., Ltd.KR Imaichi Center

TL Logicom Co., Ltd.Higashi Ogishima Branch

Foods Lec Co., Ltd.Wide Area Transportation Division

TL Logicom Co., Ltd.Machida Branch

EarningsImprovementProject Team

Imaichi Team

TransportationTeam

VehicleDispatch

Team

TransportationTeam

Company Name / Office Team

Improvement of operating incomethrough optimal staff assignments

Improvement in productivity throughincreased efficiency of flat slider work

Enhancement of vehicle managementand efficiency, thorough applicationof 5S and elimination of accidents

Revenue and expenditureimprovements based on improvedloading ratio at Kansai cheese plant

Reduction of delivery costs as a resultof route changes

Theme

Net assets ROE

■Net sales ■Operating income/Operating income margin

■Ordinary income/Ordinary income margin ■Net income

■Total assets ■Net assets/ROE

150,000

120,000

90,000

60,000

30,000

0

(millions of yen)

2008

18,598

2008

2.9

2008

3,325

2008

960

2007

4,054

2006

217

1,197

2004 2005

4,073

2008

108,488

2007

105,913

2006

22,777

79,403

2004 2005

99,587

2007

7,901

20062004 2005

7,911

5.5 5.4

2.4

1.5

663

2,125

20072006

8,720

2004 2005

2.5

26.4

20.9

10.1

15,446

11,853

2007

6,794

2004 2005 2006

668

5,949

1.71.5

4.6

4.2

1,506

200820072004 2005 2006

45,123

89,319

147,097

5.2

139,405

2.4

3,995

142,643(millions of yen) (%)10,000

8,000

6,000

4,000

2,000

0

5.0

4.0

3.0

2.0

1.0

0

(%)6.0

4.8

3.6

2.4

1.2

0

(%)30.0

24.0

18.0

12.0

6.0

0

8,000

6,400

4,800

3,200

1,600

0

(millions of yen)

4,500

3,600

2,700

1,800

900

0

(millions of yen)

120,000

100,000

80,000

60,000

40,000

20,000

0

(millions of yen)20,000

16,000

12,000

8,000

4,000

0

(millions of yen) 19,434

Operating income Operating income margin

Ordinary income Ordinary income margin

9

Financial Highlights

10

Review of Operations

During the fiscal year ended December 2008, Japan’s

economy cooled rapidly in the wake of the global financial

crisis, and business conditions entered a slowdown phase.

As a result, SBS Group strove to upgrade its services and

expand orders, while simultaneously pursuing operational

improvement activities and various measures to review

unprofitable operations. Nevertheless, because of factors

such as high fuel prices that exceeded our assumptions, and

the cancelation of a logistics facility liquidation project

because of the financial contraction, we were compelled to

revise our initial plan.

As a result, for the consolidated fiscal year under review net

sales fell 5.2% year on year to ¥139,405 million, operating

income declined 51.0% year on year to ¥3,325 million and

ordinary income decreased 49.4% year on year to ¥3,995

million. SBS Group also posted extraordinary losses of

¥3,027 million, including a compulsory devaluation of stock

holdings and asset impairment write-downs of business

assets at certain group companies. As a result, net income

was ¥960 million, down 76.3% year on year.

In the logistics business, we focused on new customer

development and measures to strengthen areas where we

possess special advantages, and worked to lower costs by

increasing operating efficiency with improvement activities

and through branch consolidation and reorganization. As a

result, although sales edged down 1.6% year on year to

¥114,894 million, they were substantively ¥1,800 million higher

when the ¥3,700 million decline as a result of the sale of Duck

Co., Ltd. in the prior fiscal year is considered. We achieved

operating income of ¥2,566 million, up 12.2% year on year as

the result of service optimization and cost reductions.

In our marketing business, sales dipped 5.9% year on year

to ¥10,391 million and operating income fell 76.1% year on

year to ¥40 million. Performance was sluggish because of

increasing competition among major firms in the mailing

service business, which accounts for the majority of sales and

earnings in this business area.

In personnel placement, we successfully increased the

number of business offices and created an organization with

29 bases, in order to implement more detailed employment

and support services. We expanded net sales by 20.3% year

on year to ¥7,402 million, and increased operating income

23.0% year on year to ¥483 million.

Sales in our financial business were ¥7,437 million, down

51.0% year on year, while operating income was off 82.7%

year on year to ¥792 million. This reflected the cancellation of

a completed logistics facility liquidation project after the

contract had been signed.

In the information technology business, we continued with

restructuring efforts to restore this business to profitability.

More work remains to be done, however, to return this business

to a profitable structure. In the environmental service business,

resource prices fell significantly. As a result, in these businesses

sales rose 15.8% year on year to ¥1,143 million, and the operating

loss was reduced by ¥23 million year on year to ¥260 million.

The future management environment is expected to remain

severe. Challenges include a decrease in logistics demand,

requests to lower prices and intensifying competition among

firms. To solve the management issues confronting Japanese

firms, including logistics reform, SBS Group will strive by all of its

efforts to develop new customers by positioning “strong business

development” as its most important management policy.

For the consolidated fiscal year ending December 2009, we

project net sales of ¥130,000 million, operating income of

¥3,100 million, ordinary income of ¥3,700 million and net

income of ¥2,200 million.

Summary of Operating Results

Summary by Business SegmentEarnings Outlook for the Next Fiscal Year

11

Consolidated Financial Statements

2007

Assets

Current assets

Fixed assets

Property and equipment

Intangible assets

Investments and others

Total assets

Liabilities

Current liabilities

Non-current liabilities

Total liabilities

Net assets

Shareholders’ equity

Common stock

Additional paid-in capital

Retained earnings

Treasury stock

Valuation/translation adjustment

Unrealized gains (losses) on available-for-sale securities

Deferred losses on hedges

Stock subscription rights

Minority interests in consolidated subsidiaries

Total net assets

Total liabilities and net assets

45,997

62,490

55,446

544

6,500

108,488

50,123

39,766

89,890

18,999

3,833

5,418

10,535

(787)

(742)

(559)

－

3

338

18,598

108,488

40,655

65,257

55,524

611

9,121

105,913

48,609

37,869

86,479

19,077

3,833

5,418

9,913

(88)

45

45

(182)

3

308

19,434

105,913

2008

Consolidated Balance Sheets(millions of yen)

As of December 31, 2008 and 2007

12

Net sales

Cost of sales

Gross profit

Selling, general and administrative expenses

Operating income

Non-operating income

Non-operating expenses

Ordinary income

Extraordinary income

Extraordinary losses

Income before income taxes andminority interests in earnings ofconsolidated subsidiaries

Income taxes-current

Income taxes-refund

Income taxes-deferred

Minority interests in earnings ofconsolidated subsidiaries

Net income

139,405

126,844

12,560

9,234

3,325

1,675

1,005

3,995

1,979

3,027

2,947

1,219

－

734

33

960

147,097

130,632

16,465

9,670

6,794

1,975

868

7,901

2,346

2,845

7,403

2,753

(32)

310

316

4,054

2008 2007

6,147

(3,075)

5,002

(0)

8,073

6,753

－

(6)

14,821

2,800

(9,152)

5,853

(2)

(498)

7,242

12

－

6,753

Net cash provided by operating activities

Net cash used in investing activities

Net cash provided by financing activities

Effect of exchange rate changes oncash and cash equivalents

Net increase (decrease) in cash andcash equivalents

Cash and cash equivalents atbeginning of year

Increase in cash and cash equivalentsdue to new consolidation

Decrease in cash and cash equivalentsresulting from exclusion of subsidiariesfrom consolidation

Cash and cash equivalents at end of year

2008 2007

Shareholders’ equity Valuation/translation adjustment

Commonstock

Additionalpaid-incapital

Retainedearnings

Treasurystock

Totalshareholders’

equity

Unrealized gains(losses) on

available-for-salesecurities

Deferredlosses onhedges

Totalvaluation/translationadjustment

Stocksubscription

rights

Minorityinterests in

consolidatedsubsidiaries

Total netassets

Balance at December 31, 2007

Changes of items during the term

Cash dividends

Net income

Acquisiton of treasury stock

Disposal of treasury stock

Net changes of items otherthan shareholders’ equity

Total changes of items duringthe term

Balance at December 31, 2008

3,833

－

－

－

－

－

－

3,833

5,418

－

－

－

－

－

－

5,418

9,913

(300)

960

－

(39)

－

621

10,535

(88)

－

－

(787)

88

－　

(698)

(787)

19,077

(300)

960

(787)

49

－

(77)

18,999

45

－

－

－

－

(605)

(605)

(559)

－

－

－

－

－

(182)

(182)

(182)

45

－

－

－

－

(787)

(787)

(742)

3

－

－

－

－

－

－

3

308

－

－

－

－

30

30

338

19,434

(300)

960

(787)

49

(757)

(835)

18,598

Consolidated Statements of Income(millions of yen)

Consolidated Statements of Cash Flows(millions of yen)

Consolidated Statements of Changes in Net Assets (millions of yen)

Years ended December 31, 2008 and 2007 Years ended December 31, 2008 and 2007

13

Non-Consolidated Financial Statements

Assets

Current assets

Fixed assets

Property and equipment

Intangible assets

Investments and others

Total assets

Liabilities

Current liabilities

Non-current liabilities

Total liabilities

Net assets

Shareholders’ equity

Common stock

Additional paid-in capital

Retained earnings

Treasury stock

Valuation/translation adjustment

Unrealized losses on available-for-sale securities

Deferred losses on hedges

Total net assets

Total liabilities and net assets

16,156

32,203

1,310

204

30,688

48,360

21,844

16,678

38,523

10,314

3,833

5,163

2,104

(787)

(477)

(294)

(182)

9,837

48,360

12,787

33,626

1,329

271

32,026

46,413

16,040

18,577

34,617

12,019

3,833

5,163

3,022

－

(223)

(223)

－

11,796

46,413

2008 20072,574

1,561

1,013

582

650

945

－

1,514

(569)

47

(616)

6,063

1,564

4,498

368

434

4,431

231

1,902

2,761

(22)

2,783

Operating revenue

Operating expenses

Operating income

Non-operating income

Non-operating expenses

Ordinary income

Extraordinary income

Extraordinary losses

Income before income taxes andminority interests

Income taxes-current

Net income

2008 2007

Shareholders’ equity Valuation/translation adjustment

Commonstock Legal capital

surplus

Totaladditional

paid-incapital

Other retainedearnings Total

retainedearnings

Treasurystock

Totalshareholders’

equity

Unrealizedlosses onavailable-for-sale

securities

Deferredlosses onhedges

Totalvaluation/translationadjustment

Total netassets

Balance at December 31, 2007

Changes of items during the term

Cash dividends

Net losses

Acquisiton of treasury stock

Net changes of items otherthan shareholders’ equity

Total changes of items duringthe term

Balance at December 31, 2008

3,833

－

－

－

－

－

3,833

5,163

－

－

－

－

－

5,163

5,163

－

－

－

－

－

5,163

3,022

(300)

(616)

－

－

(917)

2,104

3,022

(300)

(616)

－

－

(917)

2,104

－

－

－

(787)

－

(787)

(787)

12,019

(300)

(616)

(787)

－

(1,704)

10,314

(223)

－

－

－

(71)

(71)

(294)

－

－

－

－

(182)

(182)

(182)

(223)

－

－

－

(254)

(254)

(477)

11,796

(300)

(616)

(787)

(254)

(1,958)

9,837

Non-Consolidated Balance Sheets(millions of yen)

Non-Consolidated Statements of Income(millions of yen)

Non-Consolidated Statements of Changes in Net Assets (millions of yen)

Additional paid-in capital Retained earnings

Retained earningsbrought forward

As of December 31, 2008 and 2007 Years ended December 31, 2008 and 2007

14

Corporate Profile & Stock Information

Company name

Representative directorand president

Founded

Capital

Net sales

Head office

Lines of business

Major consolidatedsubsidiaries

Representative director and presidentManaging directorDirector

Full-time auditorAuditor

Total number of shares issuable

Shares outstanding

Trading unit share

Number of shareholders

515,684 shares

130,684 shares

None

4,122

Masahiko KamataKenichi IriyamaFumiaki MiyasakaShin-ichiro WatanabeTamio WakabayashiJuichi YonedaShigetaka ShomatsumotoMasato Takeda

SBS Holdings, Inc.

Masahiko Kamata

December 16, 1987

¥3,833.93 million

¥139.4 billion (for the year ended December 31, 2008)

4-1-3 Taihei, Sumida-ku, Tokyo 130-0012, Japan

Tel: +81-3-3829-2222 (pilot number)

Fax: +81-3-3829-2822

Logistics, marketing, personnel placement, etc.

TL LOGICOM Co., Ltd.

Foods Lec Co., Ltd.

Zentsu Co., Ltd.

SBS Logitem Co., Ltd.

SBS Postway Co., Ltd.

Forward Co., Ltd.

PAM Co., Ltd.

SBS Staff Co., Ltd.

A-Max Co., Ltd.

SBS Finance Co., Ltd.

SOLS Co., Ltd.

Sogo Butsuryu System Co., Ltd.

Major Shareholders

Bord of Directors, and Auditors As of March 30, 2009

The auditors, Shigetaka Shomatsumoto and Masato Takeda are the external auditors.

For requests orinquiries concerninginvestment-relatedinformation or otherinvestment-relatedmatters, please useour website:

NameNumber ofshares held

(shares)

Ratio ofshare held

(%)

Masahiko Kamata

SBS Holdings, Inc.

JP Morgan Clearing Corp-Sec

Hiroshi Date

Jyunichi Ouchi

SBS Employee Holding Association

Japan Trustee Services Bank, Ltd. (Trust account)

Hiroyuki Yoshioka

3E Corporation

The Chase Manhattan Bank N.A. London, SL Omnibus Account

64,128

8,486

4,441

3,502

3,094

2,870

2,213

1,889

1,560

1,209

49.07

6.49

3.39

2.67

2.36

2.19

1.69

1.44

1.19

0.92

Distribution of Shares by Type of Shareholder

Distribution of Shares by Number of Shares held (shares)

Financial instruments firms798 shares0.24%

Less than 50

50,000 or more

Less than 100

Less than 10,000

Less than 500

Less than 1,000

Less than 5,0008,486 shares

0.02%

64,128 shares0.02%

17,716 shares97.0%

21,778 shares0.22%

3,630 shares0.12%

11,451 shares1.33%

3,495 shares1.29%

Treasury stock

Private individuals and others

8,486 shares0.02%

101,733 shares97.11%

Financial institutions5,772 shares

0.3%

Other institutions

Foreign institutions9,530 shares0.78%

4,365 shares1.53%

Corporate Profile As of December 31, 2008 Stock Information As of December 31, 2008

http://www.sbs-group.co.jp/english/ir/

Our Website