Mid-Term Management Plan

The SG Holdings Group has formulated Mid-Term Management Plan "SGH Story 2027" from the fiscal year ending March 2026 to the fiscal year ending March 2028.

• Set the direction of strategies in each business area from the perspective of market growth and capital profitability
• While expanding the synergies between each business, we will maintain and improve the growth potential and return on capital of the entire Group with good balance

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  The size of the circle indicates the sales scale
• *1
  SGH Story 2024 figures that excludes one-off fluctuations in performance for each business, etc.

• Aiming for consolidated operating revenue of 2.2 trillion yen in FY2030, we will expand operating revenue and income in each segment
• Aiming for ROE of 15% through improved capital efficiency and financial strategy for each business

1. 1.
   Carry out investment in updates + shareholder returns using operating cash flow as the source of funds
2. 2.
   Growth investments will not be limited to operating cash flow, but will also utilize fundraising
3. 3.
   Implement growth investments to develop the source of operating cash flow and achieve sustainable growth

1. *1
   The source is the cash flow from operations after incorporating the return to employees and partner companies.
2. *2
   Against the backdrop of rising long-term interest rates in Japan and the expansion of Global Logistics Business operations, both the cost of equity and the cost of debt are expected to rise by FY2030.

• Since listing, we have continuously achieved ROE that exceeds the cost of equity recognized by our company
• In the FY2020-22 period, ROE reached a record high as a result of rapid growth in business performance, mainly due to the disruption of international logistics and the expansion of domestic express package delivery demand in the wake of the COVID-19 pandemic
• While prioritizing the expansion of logistics solutions other than express package delivery, the return on capital of each business is on the road to improvement

• Based on the results of the current Mid-term Management Plan, we aim to achieve a long-term ROE trend of 15% by FY2030
  (Improving the return on capital of each business, expanding shareholder returns, etc.)

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  Calculation method for ROE: Excluding the gain on sales of investment securities (Extraordinary income from the sale of Logisteeed Ltd. shares) for FY2021 and FY2022

• The management base was greatly strengthened through SGH Story 2024. We will work to create investment effects while making up for any deficiencies ahead of FY2030
• By expanding the scope of our services and adding value to our logistics solutions, we are enhancing Total Logistics
• In global logistics, as part of Total Logistics, we aim to build a business foundation that is less affected by market conditions and customer cargo movements by expanding customer industries and augmenting the areas covered and the logistics domain

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  Exchange rate: Expected to be 1$=151yen

• In order to realize the basic policy of "More advanced Total Logistics and expansion of global logistics infrastructure", we set the following key strategies.
  As the foundation of our business activities, we will promote the resolution of social and environmental issues and the advancement of governance, and we will work to improve corporate value in unison with our business strategy

• *1
  World Supply Co., Ltd. will be reclassified from the Delivery Business to the Logistics Business (reflecting the fact that the company's core business of value creation has shifted to the Logistics Business due to changes in its business structure)
• *2
  Exchange rate: Expected to be 1$=151yen