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

　In the consolidated cumulative second quarter of the fiscal year ending March 31, 2022, as restrictions on economic activity continued due to novel coronavirus infections (hereinafter referred to as “COVID-19”), new lifestyles such as the utilization of e-commerce became more widespread, and operating revenues increased by 14.4% to 726,054 million yen, while operating income was 58,856 million yen (up 12.1% year-on-year). 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 in express package delivery services during the consolidated cumulative second quarter increased slightly year-on-year. Although the number of BtoB packages handled did not reach the level prior to COVID-19, it increased year-on-year. Meanwhile, the number of BtoC packages handled remained steady due to new lifestyles represented by the spread of Internet and other forms of mail order sales becoming well established, but there was a reactionary decline due to the sudden increase in demand that occurred during the same period of the previous year. Average unit price continued to rise due to efforts to receive appropriate freight tariffs. In addition, TMS (*2) performed well as a result of proposal sales by GOAL (*1). As a result, operating revenues increased by 3.0% year-on-year to 507,374 million yen and operating income increased by 12.8% to 37,980 million yen.
　In the Logistics Business, as marine and air freight tariffs remained high because there is no resolution in sight for the global shortage of marine containers, we stably secured container space to meet customer demand. In Japan, we received contracts for new business such as 3PL (third party logistics) through comprehensive solution proposals made by GOAL. As a result, operating revenues increased by 106.0% year-on-year to 185,360 million yen while operating income increased by 132.0% to 14,750 million yen.
　In the Real Estate Business, the sale of real estate holdings is planned for the second half of the fiscal year ending March 31, 2022. As a result, operating revenues decreased by 80.1% year-on-year to 3,796 million yen while operating income decreased by 73.7% to 2,498 million yen.
　In Other Businesses, operating revenues decreased by 11.1% year-on-year to 29,524 million yen while operating income increased by 28.4% to 2,452 million yen.

Future Outlook

　There is no end in sight for COVID-19 and the outlook remains uncertain. As a logistics group supporting social infrastructure the Group will continue to ensure steps to prevent infections and contribute to the realization of a sustainable society through the provision of services ahead of the times and optimal logistics solutions.

*1 The GOAL (GO Advanced Logistics) project team
A group-wide advanced logistics project team with the “goal” of working with customers to resolve logistics issues through the provision of advanced logistics solutions.
*2 The Transportation Management System, a solution providing added value other than express package delivery services.

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

　Based on the results of the second quarter, the earnings forecast for the fiscal year ending March 31, 2022 was revised from the previous forecast with operating revenues increasing by 105,000 million yen to 1,450,000 million yen and operating income increasing by 11,000 million yen to 125,000 million yen. The results for the second half of the fiscal year were calculated based on the assumption that the high marine and air freight tariffs associated with the marine container shortage would continue for some time during the second half of the fiscal year.

* 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 earnings forecast revision, the Group has revised its dividend forecast by increasing it by 3 yen from the previous forecast to 41 yen per share (including an interim dividend forecast of 20 yen per share).

* The Company conducted a split of the shares of its common stock on a 2-for-1 basis on November 1, 2020, 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.

For further information, please visit our IR・ESG website.
https://www.sg-hldgs.co.jp/en/ir