We, Sumitomo Warehouse Group, are always seeking to provide high-quality services for customers' satisfaction and to contribute to society through our business endeavors.

In the fiscal year ended on March 31, 2011, the Group shows Operating Revenue with 130,377 million yen (7.2% up year-on-year) as the result of recovery in harbor transportation and international transportation businesses. This recovery of handling volume and reduction in overhead costs brought growth both in revenues and profit, and raised Operating Income up to 9,610 million yen (21.5% up year on year), Ordinary Income up to 10,465 million yen (24.1% up year on year) and Net Income up to 4,372 million yen (42.5% up year on year). These Operating and Ordinary Incomes hit all-time highs.

Regarding the fiscal year ending on March 31, 2012, the Tohoku Earthquake and Tsunami is forecasted to keep its influence on the economic conditions for the time being and much more time would be required for full recovery in production and exports. Notwithstanding such circumstances, we project handling volume in international transportation, especially in overseas, and harbor transportation show stable progress and Operating Revenue reaches 132,000 million yen (1.2% up year on year). On the other hand, we forecast Operating Income to decrease to 9,300 million yen (3.2% down year on year) due to occasional costs for launching a new archive center (tentatively called “Hanyu Archive Center”) and slowdown in real estate business.

We established “Business Strategy 2010” and have been focusing on the core strategies such as providing the best possible solutions through the combinations of our strong points as a solution provider in the fields of logistics and real estate and expanding overseas business in order to reinforce our business foundation and boost our earning capacity in such fields.

The period of the business strategy is already expired and we need to establish a new business plan. However we must inform all of you that we decided to ascertain, in advance, the influences of the Tohoku Earthquake and Tsunami including those of the nuclear accidents and the power shortage consequent thereto. We will establish, in consideration of such influences, the new plan at the appropriate time and till then will keep carrying out the core action plans as we have already declared such as expanding archives management, distribution center and overseas businesses, so as to attain sustainable growth, reinforce our business foundation, and consequently meet the expectations of shareholders, investors and all the people concerned by enhancing our corporate value.
We thank you for your continued support.

Shoichi Abbe
President