SG Holdings Co.,Ltd. revised consolidated earnings forecast for the fiscal year ending March 31, 2025. For the year company expects Operating revenue of JPY 1,470,000 million compared to JPY 1,380,000 million expected previously; Operating income of JPY 90,000 million compared to JPY 96,000 million expected previously; net attributable to owners of the parent JPY 60,000 million compared to JPY 64,500 million expected previously; basic net income per share of JPY 95.93 compared to JPY 103.12 expected previously. Reasons for the revisions: The full-year forecasts were revised to reflect the results of the first six months of the fiscal year (April 1, 2024 to September 30, 2024) and the outlook for the third quarter and beyond.

This revision was made because the results of the Delivery Business for the first six months of the fiscal year fell short of assumptions, and the fact that the Logistics Business and the Real Estate Business exceeded assumptions. With regard to the Delivery Business, the average unit price progressed as expected during the first six months due to the revision of reported fares from April 2024 and efforts to receive appropriate freight tariffs for each transaction. Meanwhile, there was a pause in the improvement of consumer sentiment, and demand for express package delivery services did not recover overall, with the number of packages decreasing more than expected due in part to the intensification of the competitive environment.

In light of this business environment, etc., The company expects the same trend as in the first six months to continue from the third quarter onwards, and have lowered the company?s forecast for the number of packages for the full year from 1.36 billion to 1.32 billion. In the Logistics Business, during the first six months, ocean and air freight rates rose at Expolanka, which operates a forwarding business, against the backdrop of rising geopolitical risks. The volume of ocean and air cargo was strong due to factors such as the impact of the geopolitical risks mentioned above and the acquisition of new customers.

In addition to reflecting these results, the company has also revised its forecasts for ocean and air freight rates and the volume of air cargo upwards for the third quarter and beyond, based on current trends. An upward revision has been made with regard to the Real Estate Business, incorporating the revenue from the sale of real estate in the second quarter. Furthermore, the results and forecasts for the third quarter and beyond have been revised downward for Other Businesses due to a decrease in BPO transactions and a decrease in sales of new vehicles, including large trucks.

With regard to C&F (Logistics Business), which has become a newly consolidated subsidiary, the deemed acquisition date is September 30, 2024, and it has been included in the results forecast for the period from October 1, 2024 to March 31, 2025. As a result, operating revenue is expected to increase, but this is not expected to have a significant impact on operating income, taking into account the fact that, while C&F's operating income will be added, amortization of goodwill, etc. will also arise.

The amount of amortization of goodwill is calculated based on the amount of goodwill that arose at the time of the acquisition of C&F's shares, which is provisionally recorded because the allocation of acquisition costs has not been completed as of the end of the first six months. Based on the above, the full-year forecasts for operating revenue, operating income, ordinary income and net income attributable to owners of the parent have been revised.