MITSUI-SOKO HOLDINGS Co., Ltd.
Financial Results Briefing for the Fiscal Year Ended March 2026
May 20, 2026
Event Summary
[Company Name]
MITSUI-SOKO HOLDINGS Co., Ltd.
[Company ID]
9302-QCODE
[Event Language]
JPN
[Event Type]
Earnings Announcement
[Event Name]
Financial Results Briefing for the Fiscal Year Ended March 2026
[Fiscal Period]
FY2026 Annual
[Date]
May 20, 2026
[Number of Pages]
34
[Time]
10:30 – 11:30
(Total: 60 minutes, Presentation: 41 minutes, Q&A: 19 minutes)
[Venue]
Webcast
[Venue Size]
[Participants]
[Number of Speakers]
3
Hirobumi Koga
Nobuo Nakayama
Takeshi Nishimura
Representative Director, President Executive
Officer
Representative Director, Senior Managing
Executive Officer
Director, Managing Executive Officer
1
Presentation
Moderator: Thank you for your patience.
We will now begin the presentation of the financial results of MITSUI-SOKO HOLDINGS Co., Ltd. for the fiscal
year ended March 31, 2026.
First of all, I would like to introduce today's attendees. Mr. Hirobumi Koga, Representative Director, President
Executive Officer.
Koga: This is Koga. Thank you very much.
Moderator: Mr. Nobuo Nakayama, Representative Director, Senior Managing Executive Officer.
Nakayama: My name is Nakayama. Thank you very much.
Moderator: Mr. Takeshi Nishimura, Director, Managing Executive Officer.
Nishimura: My name is Nishimura. Thank you very much.
Moderator: Today, President Koga will first explain the progress of Mid-term Management Plan 2022, and
then Senior Managing Director Nakayama will explain the financial results and business outlook.
This will be followed by a Q&A session, scheduled to end around 11:30 a.m. Explanatory materials are
available on our website. Please note that all questions and answers will be accepted via text submission using
the Q&A button. Please click the Q&A button at the bottom of the screen.
If we receive similar questions, we may select a representative question. Please note that we may not be able
to answer all questions due to time constraints. Thank you for your understanding. On-demand distribution
will be available at a later date.
Now, President Koga, please accept my best regards.
Koga: Hello everyone. I am Koga, President and Representative Director of MITSUI-SOKO HOLDINGS Co., Ltd.
Thank you for taking the time out of your busy schedule to attend today’s financial results briefing for the
fiscal year ended March 31, 2026.
Let me first explain the summary of the results for the fiscal year ended March 31, 2026, and the forecast for
the fiscal year ending March 31, 2027.
2
See page 3.
As CFO Nakayama will explain in detail later, the results for the fiscal year ended March 31, 2026, showed YoY
increases in both revenues and profits, mainly due to strong cargo volume in air cargo transportation and the
effect of new tenants moving into major buildings in the real estate business.
For the fiscal year ending March 31, 2027, we plan to increase both revenues and profits, anticipating an
increase in cargo handling due to a recovery in cargo movement in the logistics business, a contribution to
earnings from the expansion of new operations, and the full contribution from the effect of new tenants
moving into major buildings in the real estate business.
Regarding shareholder returns, for the fiscal year ending March 31, 2027, we expect to increase dividends
due to earnings growth based on a payout ratio of 30%, and we forecast an annual dividend of JPY50, an
increase of JPY1 from the previous year.
As announced in February 2026, the Company is also working to expand shareholder returns through the
repurchase of up to 5.5 million shares and JPY34 billion in treasury stock.
3
See page 5.
From here, I would like to explain the progress of Mid-term Management Plan 2022. I would like to reiterate
its outline.
Under the slogan of “going on the aggressive by deepening,” the plan aims to achieve operating profit of JPY23
billion through various initiatives in Mid-term Management Plan 2022, which ends in the fiscal year ending
March 31, 2027.
We have positioned this as a growth phase in which we will go on the aggressive with the Group's unique
business model, with three pillars of our growth strategy: top-line growth by mobilizing the Group's collective
strength, reinforcement of operational competitiveness, and building management foundation to support the
deepening.
The environment surrounding logistics, including the recent situation in the Middle East, is changing at a
dizzying pace, and customers are placing even greater emphasis on building a robust supply chain as a
management issue.
The Company sees these changes in needs as opportunities, and by continuing to implement various strategies,
we are making steady progress toward achieving our numerical targets.
4
See page 6.
I would like to explain the progress of our business performance under Mid-term Management Plan 2022.
Both the logistics and real estate businesses performed well, with operating profit for the fiscal year ended
March 31, 2026, totaling JPY22.1 billion. In addition, we expect to achieve our operating profit target of JPY23
billion for the fiscal year ending March 31, 2027, the final year of the mid-term management plan.
5
See page 7.
The following is an explanation of operating profit trends by business segment.
In the logistics business, the expansion of the top line and measures to improve operational efficiency have
been successful, and earnings have steadily increased. During the four years from the fiscal year ended March
2023 to the fiscal year ended March 2026, the Company accumulated profits of JPY9.7 billion, from JPY14.8
billion to JPY24.5 billion.
In the final year of the plan, we plan to further increase the amount to JPY800 million, partly due to the start
of operations at the Busan warehouse in South Korea and the year-round contribution of a new warehouse
in Obu, Aichi Prefecture.
In the real estate business, the Hakozaki Building is strengthening its earnings base by increasing its value and
becoming a multi-tenant building.
From Q4 of the fiscal year ended March 31, 2026, all major buildings, including the Hakozaki Building, became
in full operation, and from the fiscal year ending March 31, 2027, the effects of these operations will
contribute to the full-year results, leading to a projected operating profit of JPY4.5 billion for the final year.
6
See page 8.
I will explain the leasing situation of major buildings in the real estate business.
As I mentioned earlier, in the real estate business, we have been working on leasing of major buildings, and
progress has been favorable, exceeding our initial expectations.
MSH Nihonbashi Hakozaki Building has been in full operation since Q4 of the fiscal year ended March 31, 2026,
thanks to the occupancy of Tokyo Metro and other tenants.
Leasing of the MSC Center Building and MSC Onarimon Building, which were temporarily vacant as a result of
the relocation of the Company's group headquarters, was completed as planned.
In May 2024, vacancies occurred at the MSH Nihonbashi Hakozaki Building due to the renewal of the contract
with IBM Japan, and the combined occupancy rate of the three buildings fell to 60% temporarily. However,
the occupancy rates of Hakozaki, Shibaura, and Onarimon have been 100% since Q4 of the fiscal year ended
March 31, 2026.
In addition, in May 2025, we consolidated the headquarters of our group companies in the Tokyo area. In the
Hakozaki Building, which has been consolidated, we will activate communication across organizational
boundaries to foster a sense of group unity and accelerate the creation of synergies.
7
See page 9.
I would like to explain the shareholder returns under Mid-term Management Plan 2022.
Dividends for the fiscal years ended March 31, 2025, and 2026 were maintained at the level of the fiscal year
ended March 31, 2024, from the viewpoint of stable dividends, given that the decrease in profit due to tenant
replacement at the Hakozaki Building is transitory.
In the fiscal year ending March 31, 2027, the transient decrease in real estate income will be resolved, and
based on the policy of flexible dividends linked to business performance based on a payout ratio of 30%, we
expect to increase dividends due to growth in business performance, and specifically, we plan to pay an annual
dividend of JPY50 per share.
In addition, as part of our efforts to strengthen shareholder returns, we announced the acquisition of treasury
stock in our February 2026 earnings announcement. Details will be explained on the next page.
8
See page 10.
I would like to explain the review of the allocation of funds under Mid-term Management Plan 2022 and the
repurchase of treasury stock.
First, we reviewed the allocation of funds toward the final year of the mid-term management plan.
As a result of the review, taking into account the situation where investment is expected to be lower than
initially expected due to the use of operating leases and rising construction costs, we have decided to
repurchase up to 5.5 million shares and JPY34 billion of our own stock to improve capital efficiency and
increase shareholder returns with respect to a portion of the funds.
In order to realize the benefits of the share buyback as soon as possible, the Company has partially utilized
ASR, which enables large-scale acquisition in a short period of time, and has already repurchased 3.29 million
shares of its own stock for approximately JPY12 billion by the end of March 2026.
9
See page 11.
I will now explain the topics for the fiscal year ended March 31, 2026.
First, we will address our efforts in the B2B2C area, which is our focus area. In response to robust EC demand,
we have opened a new 7,200-tsubo logistics base in Kawaguchi City, Saitama Prefecture, with the aim of
increasing handling of logistics for expanding consumer electronics manufacturers.
In addition, in order to strengthen the technical logistics function, which provides a one-stop service for lastmile delivery and after-sales services including equipment installation, maintenance, inspection, and repair,
we transferred and consolidated logistics bases in the Tokyo metropolitan area and reorganized the Toda
Works into a specialized technical logistics base.
We are promoting top-line expansion by responding to increasing demand and taking steps to strengthen our
capabilities.
This is followed by initiatives related to chief logistics officers, CLOs. Under the revised Logistics Efficiency Act,
which will take effect in April 2026, specified shippers above a certain size are required to appoint a CLO.
Under the CLO, shipper companies are required to treat the optimization of the entire supply chain as a
management issue, including the formulation of plans to improve logistics efficiency.
We have established a new organization to support CLOs by combining the full-spec logistics capabilities we
have built up to date with our supply chain design know-how.
We will work together with our customers to create new value by understanding the current status of their
logistics issues and proposing improvements to meet the demands of society.
10
See page 12.
I would like to explain our co-creation efforts to strengthen our management foundation.
We have decided to invest in Collabo CREATE CO., LTD., a new company established in April 2026 by SUZUKEN
CO., LTD., a leading pharmaceutical wholesaler, with the aim of solving logistics challenges in the healthcare
sector and delivering new value.
In the Mid-term Management Plan 2022, we have identified healthcare as one of our focus areas, and in this
area, we have been providing high value-added logistics services that can handle the entire process from
manufacturing to sales, mainly for foreign manufacturers and distributors of ethical drugs and medical devices,
based on our strengths in highly functional facilities and high-quality logistics operations.
Through this investment, we aim to further expand our business in the healthcare field by organically
combining our logistics functions and know-how for pharmaceutical manufacturers with the wholesale
logistics and other functions and expertise of the invested companies to meet the increasingly sophisticated
and diverse healthcare logistics needs of our customers.
The Group will strive to further enhance its presence in the industry by increasing the number of opportunities
to make proposals to our customers through new and different sales approaches, such as the wholesaler’s
perspective and the last mile.
11
See page 13.
This will be the topic of a DX-related initiative.
In recognition of our commitment to digital transformation, we are the only company in the warehousing and
transportation industry to be selected as one of the DX Stocks 2026 by the Ministry of Economy, Trade and
Industry, METI, and others.
We recognize that our highly effective DX strategy, with a clear budget allocation and roadmap, has been
highly evaluated for its challenging efforts in collaboration with partner companies, aiming to solve issues and
create value for the entire logistics industry as social infrastructure.
On that basis, we would like to introduce two specific new measures.
First, a new organizational operation center was established to further improve the efficiency of daily import
and export forwarding operations. Based on the business standardization that has been cultivated up to now,
we will further improve the quality and efficiency of operations by consolidating operations and people in the
new organization and combining them with AI technology.
In addition, with the aim of enhancing the sophistication of actual logistics, we have begun field trials of AIbased container placement planning and cargo handling operation procedure planning at port terminals.
This project contributes to the optimization of container terminal operations, which account for 99% of
Japan's international trade, and is being undertaken jointly with Hitachi, Ltd. and Mitsui E&S Co., Ltd., utilizing
the Ministry of Land, Infrastructure, Transport and Tourism's system.
12
We have started a field demonstration at our Rokko terminal located at the Port of Kobe and are accelerating
efforts toward actual operations.
We will continue our efforts to realize overwhelming field capabilities by integrating the power of people and
technology to further improve profitability.
See page 14.
ESG and human capital initiatives.
On the environmental front, we have made a commitment to obtain SBT certification, a science-based
greenhouse gas reduction target, in order to accelerate the decarbonization of our entire supply chain. By
striving to reduce our own GHG emissions, we will provide robust logistics services with a low environmental
impact and contribute to the realization of a sustainable society.
In terms of strengthening human capital, we introduced a new restricted stock incentive plan through an
employee stock ownership plan. This is intended not only to provide employee benefits and help build assets,
but also to share the advantages and disadvantages of stock price fluctuations with shareholders and raise
their awareness of the need to increase corporate value.
In addition, we have been certified as one of the Health and Productivity Management Outstanding
Organization 2026, continuing from last year. We recognize that our ongoing efforts to address issues such as
the work environment and the promotion of work-life balance so that all employees can work with vitality
and enthusiasm have been highly evaluated.
We continue to strengthen our human capital, which is the source of the Group’s value.
13
See page 15.
Let me explain the external evaluation regarding ESG.
In February 2026, we received a special award in the environmentally sustainable company category at the
ESG Finance Awards Japan hosted by the Ministry of the Environment.
We understand that the Company’s stance to both expand its business domain and solve social issues through
the provision of sustainable logistics services such as Mitsui-Soko SustainaLink, which visualizes and improves
logistics risks from the perspectives of the environment, labor, and BCP, has been highly evaluated.
The Company has also been selected by the Ministry of Economy, Trade and Industry and the Tokyo Stock
Exchange as one of the SX Nominated Companies 2026 on May 18, 2026.
We recognize that this is a recognition of our commitment to sustainable growth and enhancement of
corporate value by focusing on environmental responsiveness and DX promotion as stated in our mid-term
management plan, under the PURPOSE of "Empower society, encourage progress" to contribute to the
development of society and industry through logistics.
The Group has been a pioneer in the logistics industry in taking measures to help customers solve social issues,
including the establishment of SustainaLink and a specialized organization to support CLOs. We will continue
to implement management and business reforms in response to changes in the social environment.
14
See page 16.
We will explain our mid- to long-term initiatives, including asset utilization.
As announced in February 2026, we concluded a capital and business alliance agreement with Mitsui Fudosan
Co., Ltd. and raised approximately JPY18.4 billion through a third-party allocation of funds for the purpose of
effectively utilizing existing assets and further investment in the logistics business.
The Group's real estate business is not a so-called asset turnover business, as the Group traditionally
redevelops and manages land that is no longer suitable for logistics use due to changes in the surrounding
environment into offices and residences.
While there will be no change in this policy going forward, in light of recent changes in the environment, such
as soaring construction costs, we have come to the conclusion that collaboration with an external partner is
essential to effectively utilize our assets and upgrade our facilities from a medium- to long-term perspective.
We have now established a strong partnership with Mitsui Fudosan, one of Japan’s leading comprehensive
real estate developers, with whom we have had a long-standing business relationship and with whom we also
have a capital relationship.
The funds raised through the capital and business alliance will be used for the construction of logistics bases
dedicated to healthcare in the Kanto and Kansai regions, which are growth areas, and for investments to
further strengthen the foundation for growth in the next mid-term management plan and beyond.
We have already established a joint project team to accelerate efforts to create synergies such as the effective
utilization of assets held and the enhancement of procurement capabilities.
15
We will also introduce our efforts to reorganize existing logistics bases in the Hokuriku area. The Company
plans to invest approximately JPY2.5 billion to improve operational efficiency through a scrap-and-build
approach that will consolidate nine existing, aging locations.
We will strengthen the foundation to support sustainable growth by promoting initiatives to enhance asset
value in both the logistics and real estate businesses.
See page 17.
Finally, I would like to explain the strengths of our group that we have developed through our past efforts.
Even in a business environment where the pace of change accelerates year after year, we have achieved
steady growth by continuing to respond appropriately to change.
Building on the foundation of the overwhelming field capabilities and integrated solution services that we
have promoted since the previous mid-term management plan, in the current mid-term management plan,
we have promoted the three growth strategies mentioned at the beginning of this document, and at the same
time, we have worked to deepen our unique business model.
These ongoing efforts are reflected in our business performance, and we are confident that we have made no
mistakes in the path we have taken. We will continue to refine our ability to provide sustainable supply chains
by leveraging the integrated group strength that is our strength and will continue to accurately meet the
supply chain optimization needs of our customers.
16
While steadily achieving the operating profit target of JPY23 billion for the final year of the mid-term
management plan, the entire Group will work together to enhance corporate value for the next stage of
growth and further contribute to society.
That is all from me.
I would like to thank all of our investors once again for their support and ask for your continued and
unwavering support.
Moderator: Next, Mr. Nakayama, Senior Managing Director, will explain the financial results and the business
outlook. Mr. Nakayama, Senior Managing Director, thank you very much.
Nakayama: My name is Nakayama. Thank you very much for your cooperation.
I will now explain the details of the financial results for the fiscal year ended March 31, 2026, in accordance
with the explanatory materials.
See page 19.
As for the results for the fiscal year ended March 31, 2026, as shown in the materials you see, both revenues
and profits increased compared to the previous fiscal year. In the logistics business, cargo movements related
to imports of food ingredients and other bulk cargo bottomed out, although there were variations by cargo
type and region.
Overseas, the recovery trend was similarly strong, and handling of automobile-related airfreight shipments
also increased.
17
In the real estate business, income increased due to an increase in rent income as a result of new tenants
moving into the MSH Nihonbashi Hakozaki Building.
See page 20.
I will explain our business performance by segment. See operating profit in the bottom row. First, the logistics
business as a whole reported an increase in earnings. I will continue with a breakdown of the logistics business
in turn.
In warehousing/port transportation, profits increased due to the operation of a new healthcare logistics base,
the full-scale operation of an EC logistics base in Kansai, and the full-scale operation of a new base in Europe.
Despite the severe business environment, we were able to secure a solid profit compared with other
companies in the industry.
Airfreight forwarding recorded an increase in profit mainly due to the increase in handling as explained at the
beginning of this report.
As for the 3PL/LLP segment, both consumer electronics manufacturer logistics and mass retailer e-commerce
logistics saw strong cargo movement, resulting in an increase in profit.
In land transportation , the Company made progress in improving efficiency and revising rates, despite factors
that drove up costs. The increase was also due to favorable cargo movements of daily sundries and other
products.
18
As a result, operating profit in the logistics segment increased significantly by JPY3.1 billion from the previous
year. In the real estate business, as I have said before, the new tenants have contributed to an increase of
JPY1.5 billion in income.
See page 21.
I will explain the YoY change in operating profit from the perspective of increase and decrease factors. See
step chart.
One and two are the volume factors for the logistics business. Of these, one is the increase and decrease due
to base cargo movement. As I mentioned earlier, air freight shipments, mainly related to automobiles,
remained strong.
Two is an increase in volume due to the start of new operations. There was a full-year contribution from a
new base in Europe, a new healthcare logistics base, and the full-scale operation of a new base for ecommerce logistics.
Three is the margin, i.e., the unit selling price and cost factor. In air transportation, freight rates remained
almost unchanged from the previous year, and there was no impact on operating profit. In the non-air
transportation segment, margins were maintained through various efficiency measures and efforts to collect
appropriate fees, despite upward pressure on costs.
The factors one through three explained so far are the reasons for the increase or decrease in the logistics
segment.
As explained earlier, the real estate business in four increased profit.
19
Corporate expenses in five increased mainly due to DX-related investment expenses.
See page 22.
I will explain the status of cash flows.
Operating cash flow was a cash inflow of JPY23.7 billion, and investing cash flow was a cash outflow of JPY9.6
billion, mainly due to the multi-tenant construction of the Hakozaki Building and new warehouse construction
in Korea.
With regard to financial cash flow, we conducted a third-party allotment to Mitsui Fudosan to finance a
logistics base dedicated to healthcare. On the other hand, there were cash outflows such as share buybacks
as a measure to enhance shareholder returns and dividend payments, resulting in a cash outflow of JPY3.4
billion.
20
See page 23.
I would like to explain the status of our balance sheet.
The capital adequacy ratio remained healthy at 45.7% as a result of the accumulation of JPY11.2 billion in net
profit from strong performance in the fiscal year ended March 31, 2026, and a JPY10.7 billion capital increase
through third-party allocation of new shares.
The D/E ratio improved to 0.6 times, and the rating by R&I, a rating agency, was upgraded from single-A
negative to single-A flat.
21
See page 25.
I will now explain the outlook for the fiscal year ending March 31, 2027.
Details will be explained later, but as stated in the document, we plan to increase both operating profit and
net profit for the fiscal year ending March 31, 2027.
While the industry’s earnings environment is becoming increasingly severe due to labor shortages and rising
costs, we expect cargo movements of large shipments and other cargoes to gradually begin to improve in the
logistics business, as well as an increase in logistics volume in healthcare logistics and equipment
transportation.
In addition, we will achieve the final year target of the current mid-term management plan of JPY23 billion in
operating profit by building on the on-site capabilities and proposal capabilities that we have strengthened
over the years.
22
See page 26.
I will explain our business performance outlook by segment. See operating profit in the bottom row. I will
explain a breakdown of the logistics business in turn.
In warehousing/port transportation, we expect higher revenues and profits on the back of the start of new
operations in healthcare logistics, a full-year contribution from operations started in FY2026, and improved
cargo movement of imports. We will work on various measures to increase profits across the Company and
acquire actual flow using good practices horizontally and logistics diagnoses as a hook.
In the airfreight forwarding, 3PL/LLP segment, and land transportation, we expect continued strong cargo
movement and plan operating profit at the same level as in the fiscal year ended March 31, 2026.
The real estate business is expected to post higher earnings due to full-year operations of the Nihonbashi
Hakozaki Building, MSC Onarimon Building, and other buildings.
23
See page 27.
I would like to focus on the key factors behind the increase or decrease in the operating profit forecast.
See step chart. With regard to the increase and decrease due to cargo movement of base cargo in one, we
expect an increase in handling mainly due to improved cargo movement of imports and an increase in the
volume of equipment transportation and other cargo.
Two is an increase in volume due to the start of new operations. The Company expects to increase its handling
volume due to the start of new operations and full-year contributions from healthcare logistics, as well as the
operation of new bases for home appliance and furniture logistics.
Regarding the margin in item three, while the step chart shows no change, please understand that although
there is upward pressure on costs, we expect to be able to maintain margins through various efficiency
improvement measures and efforts to collect appropriate fees.
As explained earlier, the real estate business in four is expected to increase profit.
In five, corporate expenses include costs associated with the execution of DX investments and cyber security
improvement costs.
24
See page 28.
I will explain the outlook of cash flows.
Within the forecast for investment cash flow, we expect capital expenditures of JPY17.5 billion. The main
breakdown is funds for new construction of healthcare warehouses and a warehouse at the New Port of Busan,
South Korea, which started in the fiscal year ended March 31, 2025.
As for the forecast of financial cash flow, cash outflow is expected to come from the repurchase of treasury
stock, which started in the fiscal year ended March 31, 2026.
25
See page 29.
I would like to explain the outlook of our balance sheet.
Shareholders' equity at the end of the fiscal year ending March 31, 2027, is expected to remain unchanged
due to shareholder return measures and other factors.
The D/E ratio at the end of the fiscal year ending March 31, 2027, is expected to be 0.63 times, almost the
same level as that at the end of the previous fiscal year.
ROE for the fiscal year ending March 31, 2027 is expected to improve due to further profit growth in the
logistics business, full-year contributions from new tenants such as the Nihonbashi Hakozaki Building in the
real estate business, and the elimination of one-time expenses associated with the head office relocation in
the fiscal year ended March 31, 2026.
26
See page 31.
Finally, we would like to present the status of our dialogue with shareholders and investors during the year
ended March 31, 2026.
The main themes of the dialogue were human capital and governance. We also conducted a hearing survey
on the cost of capital and received results of 7% to 8%.
I report to the Board of Directors on the content of my dialogue with investors. Based on dialogue with
investors, we are working diligently to reform our organizational culture and build a mechanism for succession
planning. We will continue to hold dialogues with shareholders and investors as needed.
This concludes my explanation. Thank you very much.
27
Question & Answer
Moderator [M]: Okay, I will now present some frequently asked questions. Initial question.
Participant [Q]: How do you see the impact of the reorganization of Sony's TV business?
Koga [A]: Koga will answer.
The reorganization announced that the Sony Group will establish a new company to succeed the home
entertainment business, in which TCL will take a 51% stake and Sony a 49% stake, making it a joint venture,
and that the Malaysian site responsible for manufacturing will be transferred to TCL.
Although we are not aware of any details beyond what has been publicly announced, we are not yet in a
position to answer regarding a specific impact at this stage, as the new company is scheduled to begin
operations in April 2027.
Of course, there are uncertainties in the future, but we see this as an opportunity for us to be deeply involved
in the restructuring of the supply chain in line with changes in the TV and consumer electronics industry.
Our longstanding relationship of trust with Sony and the fact that TCL, Sony’s new partner, is already doing
business with us will allow us to approach the new structure smoothly. We will continue to propose optimal
solutions that take advantage of our platform and accurately capture the logistics needs that arise in the
process of change in order to further strengthen our partnership.
That is all.
Participant [Q]: Do you expect to achieve JPY23 billion in operating profit for the fiscal year ending March 31,
2027? Based on the results for the fiscal year ended March 31, 2026, it seems likely that operating profit will
increase a bit more.
Nakayama [A]: Nakayama will answer you.
As I have explained earlier, the business environment surrounding us in the fiscal year ended March 31, 2026,
was characterized by high prices, soaring labor costs, and other factors that put upward pressure on costs.
Under such circumstances, profits increased significantly due to the fact that large-volume cargo movements
had generally bottomed out and were on the way to recovery, air cargo movement was strong, and new
tenants moved into major buildings in the real estate business.
As for the fiscal year ending March 31, 2027, the upward pressure on costs that I have just mentioned will
continue, and in addition, as you have already mentioned, there are many uncertainties due to the global
situation.
Even under such circumstances, we will aim to achieve our target of JPY23 billion in operating profit by
improving operational efficiency, reviewing transaction terms, and expanding new highly profitable
businesses, which we have been working on for some time.
That is all.
Moderator [M]: Next question.
28
Participant [Q]: Has the situation in the Middle East been affected? How should we look at the impact on
future performance? What are the pluses and minuses?
Nakayama [A]: Nakayama will answer you.
The situation in the Middle East has not had any impact on our business performance.
As for possible negative impacts, for example, manufacturers’ production may stagnate and cargo movements
may slow down due to the current naphtha supply problem, or costs may increase due to soaring oil prices.
In such cases, there would be a time lag between our receipt of appropriate fees and the payment of such
fees. These are the negative factors that we are currently anticipating.
On the positive side, we may be able to receive emergency transportation and other projects from our
customers to address such disruptions to their supply chains. Alternatively, customers may initiate a review
of their supply chains.
We are always close to our customers and cooperate with them in various ways from the perspective of not
stopping their logistics, so from this perspective, we believe that our business opportunities will increase. We
are aware that this is a positive aspect.
That is all.
Participant [Q]: You have maintained an annual dividend of JPY49 so far, but do you intend to maintain the
dividend forecast of JPY50 for the fiscal year ending March 31, 2027, with a lower limit of JPY49 in the event
of a downturn in earnings?
Koga [A]: Koga will answer.
As explained earlier, for the most recent two years, we have maintained the dividend at JPY49 from the
viewpoint of stable dividends, since the so-called temporary tenant replacement in the real estate business is
a factor in the decrease in profit and is therefore a temporary event.
In the fiscal year ending March 31, 2027, in the real estate business, as I explained earlier, buildings were in
full operation, and we are now in a position to return profits in line with our original dividend policy. In
addition to this, due to steady growth in business performance, we forecast a dividend of JPY50 per share,
which is higher than the previous year's level.
We are conscious of the dividend level of JPY49 per share per year, which is the minimum level we have
maintained so far. We would like to continue to actively return profits to shareholders by viewing dividends
as a base for stable dividends while at the same time flexibly paying dividends based on performance.
That is all.
Moderator [M]: Now, we will introduce the questions submitted through the Q&A button as time permits.
Let me introduce the first question.
Participant [Q]: Could you please explain the results of the forwarder business for the last fiscal year, breaking
them down into volume and unit price, and also tell us the outlook for the current fiscal year?
Nakayama [A]: Nakayama will answer this question.
I explained earlier the trends by segment for the fiscal year ended March 31, 2026, and the forecast for the
fiscal year ending March 31, 2027. As I mentioned earlier regarding the volume issue, cargo movement has
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been recovering both domestically and internationally since the previous fiscal year. For the current fiscal year,
we expect this recovery to progress further.
However, we recognize that upward pressure on unit costs continues to be strong both domestically and
internationally. As I mentioned earlier, we would like to respond to this situation by improving efficiency,
reviewing prices, and shifting focus to highly profitable businesses.
The other is the current state of ocean and air freight rates amid such cost increases. As you are aware, the
number of flights has been reduced on some air routes, and routes for sea transportation are also restricted
or have to be rerouted. In addition, fuel costs are rising.
In light of this situation, airlines and other carriers are periodically reviewing and revising their prices in terms
of additional charges and fuel surcharges to shippers, and these surcharges have recently become very large.
We are working together with our customers in this area, and from the viewpoint of not stopping their logistics,
we are responding to this issue by asking our customers to bear some of the burden.
As for uncertainties, how far the turmoil in the Middle East will continue and the continuation of fuel subsidies
will not last forever. We will work together with our customers to address this area of rising costs.
That is all.
Moderator [M]: Thank you very much. Next question.
Participant [Q]: What business opportunities do you see arising for your company as a result of the mandatory
CLO installation?
Koga [A]: As I explained earlier, as of April 1, 2026, shippers with a certain amount of cargo volume are
required to have a chief logistics officer, CLO, in their companies. At about the same time, we established the
CLO Relation Team.
What this means is that a CLO is not just a person in charge of logistics, but also someone who understands a
company’s inventory and supply chain as a whole, and who functions as an executive-level role. This is what
the Ministry of Land, Infrastructure, Transport and Tourism is requesting from us.
When CLOs are established, there are various KPIs such as reducing cargo waiting time and improving
efficiency.
We have been receiving an increasing number of questions from CLOs about their problems and what they
should do. Our aim is to promote the optimization of actual logistics by providing the functions of a
comprehensive logistics company and working together with CLOs to develop logistics strategies for their
companies. This is the purpose of this project.
That is all.
Moderator [M]: Thank you very much. Next question.
Participant [Q]: Regarding the leasing of Hakozaki, Shibaura and Onarimon on page 8 of the document, have
you been able to achieve higher rent levels than in the past due to recent favorable office market conditions?
Koga [A]: Thank you very much.
Originally, the Hakozaki space was leased en bloc to IBM Japan for the past 30 years or so, and the rent level
was determined through negotiations with the client based on rent market trends.
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Again, the lease agreement was renewed at a reasonable rent level, although the lease was changed from a
bulk lease to a 10-floor lease. However, rather than fully leasing the entire property, the multi-tenanting of
the property has reduced the overall real estate income because there are a few areas that do not fall within
the scope of the rental property, such as the common areas, and the restaurant on the 5th floor.
However, with regard to the current leasing situation, we have been studying market rates and have been
trying to lease at a good level so as not to fall below the market rate, and we believe that we have achieved
this.
That is all.
Moderator [M]: Thank you very much. Next question.
Participant [Q]: On page 16 of the document, regarding the alliance with Mitsui Fudosan, the healthcarerelated business is leading the way, but what is the scope for future expansion? Mitsui Fudosan has focused
on industrial development and is strengthening the development of bases for semiconductors, space, and
biotechnology. Are there any areas in which your company can be involved?
Koga [A]: One of the main goals of our capital and business alliance with Mitsui Fudosan is to maximize the
value of our real estate holdings and make effective use of them, although there is of course a direct goal of
raising capital and using the funds for healthcare warehouses. After all, we are in the logistics business, and
our intention with this partnership is to work together with the support of professionals.
At the same time, as you pointed out, the semiconductor business is growing rapidly, including at the Sony
Group, and Mitsui Fudosan is trying to establish a semiconductor base in Kyushu and form a consortium for
this purpose.
We are currently discussing with Mitsui Fudosan various ways in which we can cooperate, and the space
business is one that we will focus on in the future.
The purpose of this alliance is to strengthen our capabilities as a comprehensive logistics provider by
leveraging Mitsui Fudosan’s strengths.
That is all.
Moderator [M]: Thank you very much.
We have received many questions from you. Since we have some time, I would like to introduce one last
question.
Participant [Q]: Is there a possibility of additional share buybacks?
Koga [A]: We have bought back our own shares this time. We will, of course, consider additional share
buybacks in the future, taking into account our stock price level, profit level, cash allocation, and other factors,
and we intend to execute them appropriately when the timing is right. We do not believe this should be ruled
out.
That is all.
Moderator [M]: Thank you very much.
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I will now conclude the question-and-answer session at this point. If you have any questions that we were
unable to answer, we apologize for the inconvenience, but we ask that you direct them again to the contact
person listed in the financial report.
Finally, we ask for your cooperation in completing the survey. For all participants, after the briefing session,
the screen will switch to a questionnaire entry screen. Thank you very much for your cooperation.
This concludes the presentation of financial results for the fiscal year ended March 31, 2026. Thank you for
taking time out of your busy schedule to attend this briefing.
[END]
Document Notes
1.
2.
3.
4.
Portions of the document where the audio is unclear are marked with [inaudible].
Portions of the document where the audio is obscured by technical difficulty are marked with [TD].
Speaker speech is classified based on whether it [Q] asks a question to the Company, [A] provides an
answer from the Company, or [M] neither asks nor answers a question.
This document has been translated by SCRIPTS Asia.
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