SG Holdings Co., Ltd. announces that it has formulated the Mid-term Management Plan “SGH Story 2027” spanning the period from the fiscal year ending March 31, 2026 until the fiscal year ending March 31, 2028.

1. Review of the Mid-term Management Plan “SGH Story 2024”
   (fiscal year ended March 31, 2023 - fiscal year ending March 31, 2025)

In “SGH Story 2024,” with the basic policy of “creation of next-generation competitive advantages to realize sustainable growth,” we engaged in enhancement of comprehensive logistics solutions, expansion of management resources leading to the creation of competitive advantages, and further advancement of governance.
Due to factors such as the weakening of consumption caused by the progression of inflation in Japan and the intensification of the competitive environment, the number of packages handled in the express package delivery service decreased, and as the impact of the spread of the COVID-19 pandemic began to subside, the decline in the volume of freight and freight rates in the forwarding business progressed more than expected, resulting in both operating revenue and operating income falling below the planned levels.
Meanwhile, initiatives to receive appropriate freight tariffs are progressing more than planned, and investment in facilities such as large-scale transfer centers is steadily progressing, while significant progress has been made in expanding resources for growth up to 2030 through strategic investments such as the acquisition of shares in Chilled & Frozen Logistics Holdings and the decided to acquire shares in Morrison Express Worldwide Corporation (acquisition scheduled to be completed in FY2025).
We recognize that the challenges we face continue to be to expand the scale of each service and improve profitability in light of the severe competitive environment, and to take steps to maintain our transportation network in light of the inflationary environment and the decline in the labor force.

2. About the New Mid-term Management Plan “SGH Story 2027”
   (fiscal year ending March 31, 2026 - fiscal year ending March 31, 2028)

As the business environment undergoes dizzying changes, we have defined our aspiration in SGH Vision 2030, “Grow the new Story. New logistics, nurturing a new society together” as “being an indispensable presence, or infrastructure, for customers and society.”
Based on this aspiration for 2030, the basic policy of the new Mid-term Management Plan “SGH Story 2027” is “More advanced Total Logistics and expansion of global logistics infrastructure,” and we will formulate and engage in the following key strategies.

　■Expansion of domestic service areas and global logistics infrastructure

(1)   Strengthening the revenue foundation by expanding the competitiveness and efficiency of express package delivery services
(2)   Building one of the best cold chains in Japan by expanding low-temperature logistics solutions
(3)   Increasing the added value of domestic logistics and expanding the TMS* business area
(4)   Expanding the customer base and improving profitability of global logistics

　■Expansion of management resources to support growth

(5)   Maintaining and strengthening the service infrastructure, including strengthening partnerships with partner companies
(6)   Maximizing corporate value through investment in human capital
(7)   Improving business competitiveness through investment in DX, R&D, and the latest technology

　■Initiatives aimed at sustainable management

(8)   Addressing social and environmental issues such as decarbonization
(9)   Enhancing governance to increase corporate value

[Numerical Targets]

See the link below for detailed briefing materials.
https://ssl4.eir-parts.net/doc/9143/ir_material19/247711/00.pdf

*TMS: Transportation Management System. A value-added transportation service other than express package delivery that provides optimal logistics services for client companies by strengthening charter services such as “chartered and direct” and utilizing the Group and external transport companies.