Sumitomo Warehouse Medium-Range Business Plan "Business Strategy 2010"

For the Purpose of Making Greater Strides in the 21st Century

Sumitomo Warehouse has over the more than 100 years since its founding delivered steady results to its shareholders and other stakeholders through its long-term approach to management. For the Group to make even greater strides in the coming 100 years as business becomes increasingly global and competition among companies in the industry grows fiercer, we have established clear targets that we believe are imperative to work toward. On this basis, we have formulated a medium-range business plan we call Business Strategy 2010. The plan covers the five-year period from fiscal 2006 through fiscal 2010.

Propose and deliver optimal value to our customers through effective combinations of our facilities and solution know-how .For optimizing our customers' total supply chains, we keep trying to make our operations still more solution-orientated. This enables us to provide and realize logistics strategies and more efficient logistics services from a global perspective, along with an optimal combination of our facilities and solution know-how. Our aim is to be a logistics and real estate solution provider that makes a substantial social contribution by improving the productivity of the global economy and supporting the development of local economies.

 

Basic Objective of Business Strategy 2010

1) Optimal solutions that draw on a blend of our strengths

The key strengths of our Group lie in our inventory management capabilities across the entire supply chain, our logistics infrastructure in Japan and abroad centering on warehouses, and our ability to devise and manage global logistics. Drawing on the best blend of these strengths, we are moving forward with measures to form networks linked to the information systems of our customers and reinforce our delivery center operations, with the aim of offering our customers optimal solutions.

2) Expansion of overseas business

We offer extensive support for the global activities of our customers in logistics. Our focus is on building up our overseas network of bases, especially in China and Southeast Asia, which are playing an ever-more important role in the supply chains of modern corporations.

3) Optimal use of Land and property assets

We are working to achieve a better geographical distribution of our warehousing facilities to reflect changes in economic conditions and environment by focusing our investment on the greater Tokyo metropolitan area and actively adopting measures to respond to growing demand for logistics. At the same time, we are moving ahead with the development of commercial and logistics facilities, with the aim of attaining the optimal utilization of our existing real estate.

4) Reinforcing of our management platform and emphasizing returns to shareholders

The compliance management we have put into place further augments our corporate governance and risk management. Moreover, we aim to continue to distribute an annual dividend payment of ¥10 per share based on a non-consolidated dividend payout ratio of 40% and thereby ensure a fair share of profits is returned to shareholders.

Quantitative Targets of Business Strategy 2010 Plan

(Billions of yen)

  Fiscal 2008
(Third Year)		 Fiscal 2010
(Final Year)
Operating revenues 118 130
Operating income 8 11
ROE (%) 5.3 6.2

Note : We are now reviewing the target figures etc. in reflection of the change of economic circumstances.

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