Medium-Term Business Plan(FY2020-FY2022)

In 2019, the Sumitomo Warehouse Group celebrated the 120th anniversary of our founding.
Under the slogan “Moving Forward to 2030,” we have set forth a long-term vision for continuing to contribute as a member of society through our business for the next 100 years as well, defining the mission of Sumitomo Warehouse with respect to our customers and society.
At the same time, we have established more specific business strategies, positioning the next three years(FY2020 - FY2022), which are the focus of the new medium-term business plan, as a period of strengthening the business foundation in order to realize the long-term vision.

Plan Overview

Main Business Strategies

We will work on the measures below from our customers’ perspective and strengthen the foundation of our business, and will urgently engage in structural reform of businesses that are declining in profitability.

a. Domestic logistics
While communicate more closely with our customers, we will promote digitalization of our operations and provide more stable, higher quality logistics services as a logistics professional.
- Thorough solution and proposal-oriented sales that go a step further
- Reinforcement of warehouse and other facilities in preparation for increasingly devastating natural disasters
- Promotion of operational streamlining and labor saving utilizing the latest technologies
- Provision of diverse logistics solutions through the expansion of logistics facility leasing and other operations
b. International logistics
We will provide multifaceted support for the overseas expansion of our customers, further developing our global logistics and increasing our operational capacity.
- Accelerated strengthening of international logistics infrastructure, including opening of new warehouses, primarily in Southeast Asia
- Further reinforcement of service structure in each region, including expansion of human resources
c. Real estate business
We will maintain stable business operations and strengthen earning power that make up for ups and downs of our logistics and other businesses.
- Ongoing acquisition of profit-earning real estate properties with investment efficiency in mind
- Promotion of development of existing real estate properties that is optimal for customers and the local community, taking advantage of the geographical conditions of each property
d. Contributing to sustainability
Adhering to one of the Sumitomo’s business philosophy, “Benefit self and others, private and public interests are one and the same,” we will contribute to the solution of social issues by collaborating with our customers, local communities, employees, and various other stakeholders.
- Contribution to a sustainable society through the provision and maintenance of a high-quality logistics infrastructure
- Active contribution to SDGs-related businesses promoted by customers, primarily in the form of logistical support
- Strengthening of environmental response at Sumitomo Warehouse-owned facilities
- Thorough safety and quality control and compliance

Consolidated business performance targets

Unit: billion yen

FY2019
(Previous of the Plan)
FY2022
(Final year)
Operating revenue 191.7 210
Operating income 11.1 12

Business investment amount and financial indicators

a.Business investment amount
We will invest a total of around 50 billion yen over the three-year period.

b.Financial indicators
During the period of the plan, we will maintain a solid financial standing while aiming for an ROE of 5% or higher as we seek to improve capital efficiency.

Shareholder return

Policies related to shareholder return
We will continue to enhance shareholder return by increasing dividends and purchasing treasury shares.

a. Dividends
During the period of the plan, we will maintain an annual dividend amount of 47 yen per share regardless of profit levels and aim to continue increasing dividends over the next three years as we have the past seven years. We will not define a payout ratio for the next three years.
b. Acquisition of treasury shares
We will maintain flexibility in acquiring treasury shares during the period of the plan, taking into account economic circumstances, financial standing, and other factors. The specific number of treasury shares to be acquired, the monetary amount, the timing of acquisition, and other details will be disclosed as soon as a resolution is approved by the Board of Directors.
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