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Messages from CEO and COO

On December 13, 2017, SG Holdings Co., Ltd. successfully completed its listing on the First Section of the Tokyo Stock Exchange. We could not be reached to this point without the loyal patronage of our customers and the continued support of our many other stakeholders. I would like to offer my deepest thanks to all of them.

The SG Holdings Group plays a vital role in supporting the social infrastructure known as logistics. Aware of that role, we have managed the company to respond to the expectations of our stakeholders. Our IPO will provide an opportunity to further enhance our management structure and strengthen our business base, as we strive to put in place highly transparent management practices.

Looking back, our origins stretch back to March of 1957, when our founder began his hikyaku courier service in Kyoto. Since then, we have pursued our efforts to deliver the valuable cargo entrusted to us to its destination quickly, securely and carefully. Today our business has expanded into a comprehensive logistics group with over 80,000 employees, growth that I think can be attributed to the sense of mission we have brought as we have continued to respond to the expectations of our customers with regards to logistics.

Recent years have seen significant changes in the management environment surrounding the logistics industry in Japan. While the impact of a shrinking, aging population has resulted in an increasingly severe shortage of personnel, at the same time, the market for internet-driven e-commerce continues to grow, further increasing expectations for the logistics industry, which is responsible for the "last mile" to the customer. Looking overseas, the fast-growing countries of Asia are also beginning to attract attention as enormous consumer markets, and it is not difficult to imagine that the demand for logistics will increase even further.

I sense that expectations for the logistics industry will continue to grow, both inside and outside of Japan. We will work together as a group to respond to the expectations of our customers, our local communities and all of our many other stakeholders, while fulfilling our mission as part of the social infrastructure. Further, we will continue to move forward with our long-term management vision of "Becoming Asia's Leading Comprehensive Logistics Group." We hope you will continue to support us in those efforts.

Eiichi Kuriwada
Chairperson and CEO

To achieve its long-term management vision of “Becoming Asia's Leading Comprehensive Logistics Group,” in fiscal year 2016 the SG Holdings Group initiated “First Stage 2018,” its mid-term management plan for fiscal years 2016-2018. The goals are to provide comprehensive logistics solutions primarily by the activities of GOAL®, our cross-sectional sales strategy team, and to establish a global logistics network that integrate operations both overseas and within Japan.

The environment surrounding logistics businesses around us is changing dramatically. These changes include labor shortages associated with a shrinking population; social initiatives involving workstyle reforms; and an increase in package deliveries to individual homes and a diversification of customer needs, including an expansion of both times and locations available for receipt of packages, that have a particular impact on the express package delivery industry.

Given these conditions, we are making proactive efforts in the area of workstyle reforms by strengthening our hiring activities to ensure we have the number of workers needed, by putting in place an environment that provides employees with diverse workstyle options, and by advancing measures to ensure retention, including improved work terms. At the same time, we are investing in infrastructure to improve service quality, and making IT investments to streamline operations. Our project to construct one of the largest transfer centers in Japan is also moving forward, with the goal of starting commercial operations in 2020. We are devoting even greater effort toward strengthening our network to improve transport capabilities, and streamline and enhance the quality of transport.

Through the activities of our GOAL® team, we will also offer solutions for improving customer logistics. In our business and capital alliance with Hitachi Transport System, Ltd., we are moving forward with efforts to improve logistics across a wider scope of customer supply chains, centered on the common objective of “Seamless Collaboration Between the Delivery Business and the Logistics Business.” In our overseas business, we are working to provide logistics solutions that integrate cross border operations, expand our forwarding network centered on Asia, and strengthen local logistics capability.

On December 13, 2017, SG Holdings Co., Ltd. was listed on the Tokyo Stock Exchange. While conditions surrounding the logistics industry continue to change, we will endeavor to ensure the implementation of the above-mentioned initiatives, while working toward even greater growth. We ask for the continued support and understanding of all of our stakeholders as we go forward.

Tadashi Machida
President and COO

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