ホームトップ > Investor Relations > To Our Shareholders

To Our Shareholders

To Our Shareholders

The following is a brief report on the performance of  Seino Holdings Co., Ltd. for the fiscal year ended March 31, 2018, our 97th term (from April 1, 2017 to March 31, 2018).

In the fiscal year under review, Japan’s economy continued to recover moderately against a backdrop of improvements in corporate earnings and the employment environment, a pickup in personal consumption, among other factors. Despite this improvement, however, the outlook remains uncertain amid concerns over how the Japanese economy will be affected by instability in the international situation and financial and capital markets, and other uncertainties.

In the transportation industry, the Seino Group’s mainstay business, while facing various management challenges, such as rising outsourcing costs and increasing personnel expenses under a strained labor supply/demand environment, we have been steadily increasing freight volumes amid the improving economic landscape and have started to see the results of our initiatives aimed at receiving reasonable transport fees and charges.

Facing such circumstances, the Seino Group has formulated the medium-term management plan “Value-Up Challenge 2020: Take Off Toward Growth,” which commenced in the fiscal year under review. While seeking to stretch our “strengths” accrued up until now, we have united to pursue maximization of our corporate value, and to create new value.

As part of these measures, Seino Holdings Co., Ltd. entered into a capital and business alliance agreement with Hankyu Hanshin Holdings, Inc. and HANKYU HANSHIN EXPRESS Co., Ltd. on December 25, 2017 so that the signing parties could play complementary roles to provide new logistics services to customers inside and outside Japan.

Furthermore, in order to provide logistics supporting three temperature zones across Japan and the Asian region, we made Show-wa Reizo Co., Ltd. (Chuo Ward, Tokyo), which owns three large-scale refrigerating/freezing warehouses in suburban areas of Tokyo’s metropolitan area, and ice manufacturer SHOREIFIT (Chuo Ward, Tokyo) our subsidiaries on October 2, 2017, and at Indonesia’s PT Seino Indomobil Logistics, we started the transportation of refrigerated foods in that country on October 11, 2017.

In addition, on May 30, 2017, we also acquired 100% of the shares of Shin-ota Taxi Co., Ltd. (Minokamo City, Gifu Prefecture), Kani Taxi Co., Ltd. (Kani City, Gifu Prefecture), and Tajimi Taxi Co., Ltd. (Tajimi City, Gifu Prefecture) to make each of them our subsidiaries. We aim to contribute to the local regions and society through the taxi businesses and community bus operations and other businesses of these companies.

As a result, operating revenue for the fiscal year ended March 31, 2018 was ¥596,130 million (up 5.0% year on year), operating profit was ¥27,879 million (up 2.8% year on year), ordinary profit was ¥29,120 million (up 0.7% year on year), and profit attributable to owners of parent was ¥20,046 million (up 10.1% year on year).

Transportation Services Business

In the Transportation Services Business, working under our medium-term management plan, we responded to the issue of the population decline and shortage of labor caused by the aging population and low birth rate by promoting our strategic vision “Gain efficiency through virtuous cycles,” and striving to improve efficiency by making best use of the potential of our personnel.

At Seino Transportation Co., Ltd., the core company of the Transportation Services Business group, we continued negotiations to receive reasonable transport fees and charges, and fuel surcharges, as a measure to place importance on profitability in order to continue to ensure stable transportation quality. In addition, we focused on increasing the volume of freight handled through capturing and keeping new freight consignors. On the other hand, while proceeding with further improving delivery precision for fixed-time, fixed-route deliveries by using a multiple-trip system on routes between Tokyo and Osaka, we strengthened efforts to switch part of the long-distant routes to rail, which led to improved revenues, shortened labor hours and reduced environmental burden.

Moreover, in the field of logistics, by incorporating the “manufacturing/processing work” of our customers in addition to our existing “Logistics + Transportation,” we were able to add factory functions and offer added value.

Furthermore, for the purpose of recruiting and training personnel amid the shrinking population of Japan’s labor force, we promoted the establishment of subsidies for acquiring motor vehicle licenses and the enhancement of social service facilities through the establishment and extension of facilities. We also strove to improve employee retention rates by shortening labor hours through working style reform and reducing the burden of operations. In addition, our safety promotion instructors lead efforts to conduct safety education and training courses for the entire company to improve skills and awareness.

As a result of the above, operating revenue for this segment was ¥443,167 million, up 4.8% year on year, and operating profit was ¥20,965 million, up 4.7% year on year.

Vehicle Sales Business

In passenger vehicle sales, we worked to promote campaigns and other activities centered on establishing original cars with special specifications and new vehicle models. However, the cycle of the new-model effect for the biggest selling car models came to an end and this led to the number of new vehicles sold in the current fiscal year ending slightly lower than that of the previous fiscal year. In used vehicle sales, however, the number of vehicles sold grew year on year as a result of increased retail sales through local-area oriented sales activities. In the service division, we strove to secure revenues by promoting vehicle inspections and vehicle maintenance and garage services, as well as the sales of products that lead to repeat visits such as maintenance packages and automotive coatings.

In truck sales, sales were robust in Japan and the number of vehicles sold at SUBIC GS AUTO INC. in the Philippines increased significantly. Moreover, the number of new vehicles sold increased year on year. While increasing the number of garage services through promoting vehicle maintenance and garage services, such as vehicle inspections, we also focused on sales of used-parts.

As a result of the above, operating revenue for this segment was ¥103,342 million, up 3.1% year on year, and operating profit was ¥4,922 million, down 2.6% year on year.

Merchandise Sales Business

The Merchandise Sales Business engages in the sale of fuel, paper and paper products, and other products. As a result of an increased unit sales price and higher sales volume in the sales of fuel and firm sales of domestic tissue papers, operating revenue for this segment was \31,575 million, up 13.8% year on year, and operating profit was \809 million, up 5.7 % year on year.

Leasing for Real Estate Services Business

In the Leasing for Real Estate Services Business, we strive to effectively utilize business resources by leasing the former truck terminal and store sites, which had been replaced mainly due to the impact of urban development and increasingly cramped conditions.

Operating revenue for this segment was ¥1,598 million, up 3.6% year on year, and operating profit was ¥1,239 million, down 3.1% year on year.

Other Business

Our Other Business segment includes the information services business, the housing sales business, the passenger transportation business, the construction contract business, and the personnel services business. As a result of strong sales for software development, cloud services and information device sales in the information services business and other factors, operating revenue for this segment was ¥16,445 million, up 8.6% year on year, and operating profit was ¥920 million, up 26.6% year on year.

In our outlook for the Japanese economy, we expect that the moderate tone of recovery will continue amid the ongoing improvement in the employment and income environments, with positive effects also expected from various policy measures. Nevertheless, there are lingering uncertainties reflecting concerns such as the impact of various problems in overseas countries and fluctuation in the financial and capital markets.

Facing such circumstances, the Seino Group will steadily implement the various measures of the three-year medium-term management plan “Value-Up Challenge 2020: Take Off Toward Growth,” which is currently in the second year. While seeking to stretch our “strengths” accrued up until now and pursue maximization of our corporate value, we will accelerate our reforms and bold initiatives to create new value.

In our mainstay Transportation Services Business, we are seeing various optimistic signs such as an increase in consumer-related freight and production-related freight against the backdrop of robust increases in domestic private-sector demand as well as positive trends in regard to receiving reasonable transport fees and charges. On the other hand, with increasing personnel expenses and rising outsourcing costs as well as persistently high fuel costs and the like, it is important that the Seino Group not only implement initiatives aimed at securing sustainable revenues and profits, but also take measures in response to the labor shortage.

As part of this response we continue to implement initiatives to receive reasonable transport fees and charges, and fuel surcharges, carry out strategies to acquire new customers and improve the ratio of new customers who continue to consign with us, and work to strengthen the logistics business. In addition, we will work to streamline operations through various efforts including initiatives for expansion of model shifts and introduction of articulated trucks, promotion of the transition to EDI (electronic data interchange), and provision of positional data of transportation vehicles (Ichishiru). As the improvements in time productivity are gained through such measures, we expect to enjoy improvements in not only customer satisfaction but also employee satisfaction.

Meanwhile, bearing in mind that the volume of freight transportation in Japan will shrink as the population declines and the conditions of low birthrate and aging population advance, we plan to further strengthen our cooperation with HANKYU HANSHIN EXPRESS Co., Ltd., which has strength in the international transportation business, in order to realize sustainable growth both in Japan and overseas.

In passenger vehicle sales in the Vehicle Sales Business, we expect that the growth in the number of new vehicles sold will be eroded by the changes in the social structure such as low birthrate and aging population, and declining car ownership among young adults. As a result, we plan on keeping the business stable through expanding our portfolio of businesses relating to used car sales, car part sales, vehicle inspections and automotive repairs while focusing on new vehicle sales of mini-sized vehicles with small engine displacement. In truck sales also, we will make efforts to expand and enhance our portfolio of businesses relating to vehicle inspection and automotive repairs. While carrying out initiatives for used vehicle part sales, and working to boost customer satisfaction through store renewal and introducing the latest equipment, we will carry out sales activities that are locally based.

In the Merchandise Sales Business and Other Business, we will expand our sales by strengthening existing businesses and develop new products designed from the viewpoint of the customer.

In the Leasing for Real Estate Services Business, we will work to develop our leasing and sales of idle real estate while effectively utilizing underutilized real estate.

While making steady efforts to achieve these business challenges, the Seino Group will work to strengthen the business foundation and contribute to our customers’ prosperity to achieve further growth.

To all shareholders, we sincerely ask for your ongoing encouragement and support into the future.


June 2018

Yoshitaka Taguchi,

President and Chief Operating Officer

Takao Taguchi,

Representative Director