SG Holdings Co., Ltd. hereby announces the financial results for the first quarter of the fiscal year ending March 31, 2022.

　In the first quarter of the fiscal year ending March 31, 2022, the total number of packages handled remained steady backed by heightened demand for express package delivery resulting from new lifestyles becoming more widespread while there is no end in sight for novel coronavirus infections (hereinafter referred to as “COVID-19”), and operating revenues increased by 9.4% to 347,543 million yen due to capturing burgeoning demand from existing and new customers amid the global shortage of marine containers in the Logistics Business. Operating income was 28,912 million yen (up 4.4% year-on-year) due to appropriate cost controls.
　The main results are described below.

* The percentages in parentheses represent year-on-year changes

Overview by Segment

　In the Delivery Business, the number of packages handled increased due to continued high BtoC demand in addition to receiving business centered on BtoB packages due to active sales activities. In addition, TMS(*2) orders increased as a result of proposal sales by GOAL(*1). Furthermore, the average unit price rose due to an increase in relatively large BtoB packages and continued efforts to receive appropriate freight tariffs. As a result, operating revenues increased by 4.6% year on year to 254,387 million yen and operating income increased by 29.4% to 20,226 million yen.
　In the Logistics Business, being able to respond to the increase in volume from existing customers and accept new business in marine transportation even amid the rise in marine and air freight charges caused by the shortage of containers resulted in operating revenues increasing by 89.1% year-on-year to 77,077 million yen and operating income increased by 180.1% year-on-year to 5,724 million yen.
　In the Real Estate Business, operating revenues decreased by 88.5% year-on-year to 1,987 million yen and operating income decreased by 83.3% year-on-year to 1,402 million yen due to the sale of real estate holdings being planned for the second half of the fiscal year.
　As for the other Businesses, operating revenues decreased by 13.7% year-on-year to 14,090 million yen and operating income increased by 1.5% year-on-year to 947 million yen.

Future Outlook

　Vaccinations are progressing since the priority vaccination of medical personnel, and although there have been signs of economic recovery, COVID-19 is spreading due to virus variants, and the outlook remains uncertain. While taking steps to prevent COVID-19 among employees, the Group will strive to provide shipment services flexibly adaptable to ever-changing customer needs, fulfilling its role as a logistics group supporting the social infrastructure.

*1 The GO Advanced Logistics group - wide advanced logistics project team with the objective of providing advanced logistics solutions.
*2 The Transportation Management System, a solution providing added value other than express package delivery.

Revision of Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2022

　Based on the latest trends in earnings, the earnings forecast for the fiscal year ending March 31, 2022 announced on April 30, 2021 was revised.

1) Revision of Consolidated Earnings Forecast Figures for the Six Months Ending September 30, 2021
　 (from April 1, 2021 to September 30, 2021)

2) Revision of Consolidated Earnings Forecast Figures for the Fiscal Year Ending March 31, 2022
　 (from April 1, 2021 to March 31, 2022)

* The Company conducted a split of the shares of its common stock on a 2-for-1 basis effective November 1, 2020. Basic net income per share was calculated based on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

Revision of Dividends

　In conjunction with the consolidated earnings forecast revision, the Group has revised its dividend forecast upward by 2 yen to 38 yen per share (including an interim dividend forecast of 19 yen per share).

* The Company conducted a split of the shares of its common stock on a 2-for-1 basis, and the amount of dividends paid at the end of the second quarter of the previous fiscal year is the amount prior to the split.
* The dividends paid at the end of the second quarter of the previous fiscal year include a special dividend of 10.00 yen.