I would like to express my deepest gratitude for the support of shareholders and investors.

The current socioeconomic environment is changing rapidly, and the business environment surrounding companies is becoming increasingly complex. In Japan, the shortage of labor is becoming more serious due to factors such as the declining population and aging of society, and inflation and continued/accelerating wage increases are expected. For overseas business, although there are concerns about changes in international relations brought about by the change of government in the United States and an increase in geopolitical risks due to the continuation of wars and conflicts, it is assumed that the global economy will remain on a growth trajectory in the medium to long term. In addition, responding to social issues such as decarbonization is an essential element in continuing corporate activities, and it is gaining more and more importance.

With this understanding of the environment, we have formulated our new Mid-Term Management Plan, “SGH Story 2027,” and taken this opportunity to re-examine “SGH Vision 2030. Grow the new Story. New logistics, nurturing a new society together.” which was formulated in 2024 to define it in simpler terms to show what we want to be, which is “to become an indispensable presence (=infrastructure) for our customers and society.” This is also connected to the “Hikyaku no kokoro” (the spirit of Edo-era express messengers) that is the origin of the Group’s founding, and to doing our best for our customers with all our heart.
In order to achieve our vision, we will expand the scope covered by “new logistics,” which are the Total Logistics services provided by the Group, and contribute to the realization of a sustainable society by creating new value in a “new society” through the resolution of the increasingly diverse and complex logistics issues in a changing society, while “nurturing together” with the desire to achieve sustainable growth with the businesses of our customers.

With the aim of expanding the scope of our Total Logistics, in Japan, we will continue to steadily grow our Delivery Business, including our express package delivery service, and maintain logistics infrastructure, while also expanding our domestic service area by utilizing the low-temperature logistics area that we acquired by making Chilled & Frozen Logistics Holdings Co., Ltd. part of the Group. For overseas business, we will expand the foundation of our global logistics by acquiring a customer base targeting the sales and logistics areas of our customers’ supply chains, expanding industries covered, expanding our service areas, expanding our business scale and profitability by expanding the geographical areas covered, and improve quality and streamline operations. Morrison Express Worldwide Corporation (“Morrison”), of which we plan to acquire shares in July 2025, is expected to have significant synergies with our existing business, and we believe it will contribute greatly to expanding our global logistics infrastructure.
Furthermore, by organically combining logistics services and networks inside and outside Japan, we will further expand our role as infrastructure and support the entire supply chains of our customers as their partner.
At the same time, we will continue to expand our solutions for social issues such as disaster relief, as well as reverse logistics for solving issues such as recycling and reuse of resources, with the aim of achieving sustainable growth and a decarbonized society.

By using the cash generated through these business strategies to provide shareholder returns and invest in future growth, we will work to increase corporate value and the share price. To achieve this, we will formulate a business portfolio strategy based on return on capital and growth potential. Additionally, we aim to improve our medium to long-term ROE by controlling our cost of capital based on our financial strategy. We will also build relationships of trust with capital markets through proactive information disclosure and dialogue.