Message from the President
Takanori Ono, President
I would like to take this opportunity to express my sincere appreciation to our shareholders and investors for their generous support.
The Sumitomo Warehouse Group is proud to promote a comprehensive logistics business built around warehousing and supported by harbor transportation, international transportation and land transportation, as well as a marine transportation business and a real estate business centered around office building rental. All of these business endeavors are firmly rooted in our Corporate Philosophy: “We will provide earnest and timeless support for logistics functions as the social infrastructure, which is needed by all, while also working to create new services sought after by our customers and society.”
I am pleased to report the results of the fiscal year ended March 31, 2020, the final year of “Challenge 120,” our three-year Medium-Term Business Plan. In our logistics business, revenue increased due to strong results in the warehouse business, which saw the launch of a new warehouse at Yokohama City’s Minami Honmoku Pier, the land transportation business, which recorded higher e-commerce-related cargo handling, and the international transportation business, which posted an increase in integrated international transport. Overall, the logistics business posted record-high operating revenue of ¥156,816 million, a year-on-year increase of 3.6%.
In the marine transportation business, despite an increase in cargo freight rates, revenue decreased year on year due to a drop in the number of containers transported and the impact of a stronger yen. Revenue in the real estate business increased due to the acquisition of real estate for rent and higher rental rates for existing properties. As a result, consolidated operating revenue rose 3.0% year on year to ¥191,721 million. Consolidated operating income increased to ¥11,101 million, up 26.2% year on year, mainly due to the higher revenues in the logistics and real estate businesses, as well as a strong improvement in profitability of the marine transportation business. Ordinary income increased 20.4% year on year to ¥13,596 million.
Under “Challenge 120,” we targeted consolidated operating income of ¥12 billion. While we missed this target due to delayed improvement in the marine transportation business, we successfully recorded record highs in operating revenue, operating income, and ordinary income.
With regard to the annual dividend for the fiscal year, the annual per-share dividend included a special dividend of ¥10 to commemorate our 120th year of business, for a total of ¥47, an increase of ¥1.50 that marked the seventh year of successive increases.
Reviewing the business environment surrounding our Group, since the start of 2020, the novel coronavirus pandemic has caused a standstill in global economic activity as a result of the limits to the movement of people and goods. This is an unprecedented challenge for the globe, and can be considered one of the drawbacks to increased globalization. In addition to the previous issues of labor shortages and intensified cross-industry competition, we must now adapt to a “new normal” in the ways we work while leveraging the surging reliance on digitalization throughout society.
No matter how the business environment may change, the Sumitomo Warehouse Group will continue to manage risks appropriately and remain dedicated to the mission of providing stable logistics services critical to society by steadily promoting our business.
In May 2020, we announced the adoption of a long-term vision, “Moving Forward to 2030,” which sets forth four core missions to achieve in the 10 years leading up to the SDGs target year of 2030. Based on the four missions of Connecting Things, Connecting the World, Connecting People, and Connecting Times, we have begun promoting our fourth Medium-Term Business Plan from this fiscal year. Our core aim is to use this period to strengthen the business foundation as the first step in achieving the long-term vision.
During the new plan, we will promote operational streamlining and labor-saving utilizing the latest technologies, while also strengthening our preparations for natural disasters. As we establish and enhance our global logistics capabilities, we will fulfill our role in supporting SDGs by collaborating with various stakeholders in support of the realization of a sustainable society.
I would like to express my appreciation to our shareholders and investors for their understanding, and look forward to your continued support of these efforts.