During the fiscal year ended March 31, 2026 (“the fiscal year under review”), amid continuing geopolitical risks overseas, the Japanese economy experienced a moderate recovery trend domestically, driven by the expansion of inbound demand and increased corporate capital investment. On the other hand, prolonged price increases and rising labor costs led to a lack of strength in consumer spending, with the outlook remaining uncertain.
In the transportation industry, which is the mainstay business of the Seino Group, as the volume of freight transportation in Japan shrank year on year, the conditions surrounding corporate activities continued to be severe mainly due to a shortage of drivers, responses to labor hour regulations, and persistently high energy prices.
Operating under such conditions, in the third year of “Medium- and Long-Term Management Direction — Vision and Roadmap 2028,” the Group aimed for an ROE (return on equity) of 8.0% or higher in order to quickly realize a PBR (price book-value ratio) of at least 1.0 times through growth and appropriate capital measures. Under the plan, we worked to maintain our competitive edge in our core business of LTL (Less-than-Truckload) transportation, while positioning the logistics and charter (FTL) business, which are our key initiatives, as growth engines and promoted measures focusing on the right balance of growth, profitability, and capital efficiency with the aim of making higher-profit margins integral to our operations.
Additionally, we have further strengthened collaboration with MD LOGIS CORPORATION, which was consolidated in the fiscal year ended March 31, 2025 (“the previous fiscal year”). By integrating their advanced logistics know-how with the Group’s transportation network and systems, we have promoted the enhancement of value-added logistics services both domestically and internationally. This consolidation effect has contributed to the earnings in the Transportation Services Business throughout the fiscal year.
As a result, operating revenue for the fiscal year under review was ¥812,965 million (up 10.3% year on year), operating profit was ¥37,605 million (up 25.8% year on year), ordinary profit was ¥37,264 million (up 32.5% year on year), and profit attributable to owners of parent was ¥23,638 million (up 22.8% year on year).
Regarding the Transportation Services Business, in our mainstay LTL transportation business, we have leveraged our nationwide route network to advance the collection of appropriate transport fees across various weight and distance categories. We have also worked on optimizing the operation system according to cargo volume and improving loading efficiency, striving for cost optimization and profitability enhancement, and promoting various initiatives. Furthermore, as a continuous response to the “2024 problem,” where driver overtime is capped, we promoted the optimization of the entire transportation network through O.P.P. (*) initiatives, aiming for Collaborative Transportation across corporate boundaries and complementing inefficient areas.
On the other hand, due to the sluggishness in consumer spending caused by rising prices, the volume of cargo handled remained slightly below the previous year’s level. Additionally, due to driver shortages and responses to labor hour regulations, outsourcing and subcontracting costs continued to trend upward. Nevertheless, we advanced efforts to reduce manpower through digital technology and AI, such as enhancing dispatch operations and automating inquiry responses.
In terms of expansion efforts, Seino Transportation Co., Ltd. relocated its Nagoya Kita branch (Kiyosu City, Aichi Prefecture) into a new building, rebuilt its Yokohama branch (Yokohama City), and opened its Kanazawa warehouse at the Kanazawa branch (Kanazawa City, Ishikawa Prefecture). Seino Super Express Co., Ltd. relocated its Matsumoto sales office (Matsumoto City, Nagano Prefecture) and its Yokkaichi sales office (Yokkaichi City, Mie Prefecture). We are working to improve transportation quality by reorganizing logistics facilities and strengthening the functions of existing offices to enhance logistics infrastructure.
As a result of the above, operating revenue for this segment was ¥630,890 million (up 13.9% year on year) and operating profit was ¥27,425 million (up 32.2% year on year).
* O.P.P.: An acronym for open public platform. We are building an open logistics platform that enables collaboration and can be used by anyone, whether internal or external to the company and in any business domain. This platform aims to create efficiencies and enhance the value for each user, and further contribute to industry, the environment, and daily life as social infrastructure through its concept and methodology.
In passenger vehicle sales of the Vehicle Sales Business, the supply environment for new vehicles was affected by external factors such as continued supply restrictions due to manufacturers’ compliance with regulations and the postponement of registration timing due to the abolition of the environmental performance tax at the time of vehicle acquisition. As a result, the number of new vehicles sold fell year on year. Despite this, we worked to improve profitability by strengthening the direct sales system and reviewing the negotiation process to secure profit per unit.
In used vehicle sales, we aimed to streamline the used vehicle preparation process and worked on enhancing the display vehicles and improving turnover rates at each store, resulting in steady retail sales volume.
In truck sales, due to the continued suspension of production of some vehicle types resulting from past manufacturer certification misconduct, as well as the impact of manufacturers’ production plans during the transition period between model changes, the number of new vehicles sold fell below the previous year’s results.
In terms of office expansion efforts, TOYOTA COROLLA NETZ GIFU CO., LTD. relocated its Corolla Takayama branch (Takayama City, Gifu Prefecture) into a new building and integrated its Corolla Nakatsugawa branch and Netz Nakatsugawa branch (Nakatsugawa City, Gifu Prefecture). Additionally, Gifu Hino Motor Co., Ltd. integrated its Hagiwara sales office (Gero City, Gifu Prefecture) and Takayama branch (Takayama City, Gifu Prefecture). We are promoting the renewal and reorganization of stores and service factories to improve customer satisfaction (CS) and streamline store operations.
As a result of the above, operating revenue for this segment was ¥110,346 million (down 4.3% year on year) and operating profit was ¥6,917 million (down 3.4% year on year).
The Merchandise Sales Business engages in the sale of fuel, paper and paper products, and other products. Although the sales unit price for fuel sales decreased due to the effect of government subsidies aimed at mitigating fuel price increases, sales of nursing care goods, particularly domestic tissue papers for nursing care, remained firm. As a result, operating revenue for this segment was ¥40,926 million (up 5.5% year on year) and operating profit was ¥1,314 million (up 12.4% year on year).
In the Real Estate Leasing Services Business, we worked to utilize our holdings of land and former sites to maximize their potential and transform this business into one that provides more valuable leasing services for each region. As a result, operating revenue for this segment was ¥2,456 million (up 4.3% year on year), and operating profit was ¥1,810 million (up 4.6% year on year).
The Other Business segment includes the information services business, the personnel services business, the construction contract business, the housing sales business, and the taxi business. Operating revenue for this segment was ¥28,345 million (up 5.8% year on year), and operating profit was ¥2,270 million (up 24.1% year on year).
The future outlook for Japan’s economy anticipates a moderate recovery due to improvements in employment and income environments. However, concerns remain about continued price increases, uncertainties in overseas economies, geopolitical risks such as the Middle East situation and conflicts involving Iran, leading to fluctuations in energy prices and a decline in consumer sentiment, resulting in a continued uncertain outlook.
In the transportation industry, which is the mainstay business of the Seino Group, the business environment continues to be characterized by numerous uncertainties, including driver shortages amid a declining working population and fuel price trends caused by the Middle East situation.
Even amid such conditions, the Seino Group, under the slogan “‘Team Green Logistics’ –Create Together, Contribute to the Future,” will address social issues such as environmental response and supply chain maintenance. We will promote the realization of a sustainable society and the efficiency of the logistics industry, while working to create new value through co-creation with diverse stakeholders.
As part of this effort, on April 1, 2026, the Company and Fukuyama Transporting Co., Ltd. established a joint venture company, “TGL San’in Co., Ltd.,” through a joint stock transfer of Hinomaru Seino Transportation Co., Ltd. and San’in Fukuyama Transporting Co., Ltd., which are under each company’s umbrella, to promote collaborative transportation and optimize the network in the San’in region. We aim to advance business efficiency and sales collaboration to provide stable logistics services.
Additionally, on April 22, 2026, our company signed a basic agreement on business partnership with AZ-COM MARUWA Holdings Inc. to promote initiatives utilizing each other’s logistics functions and management resources, aiming to improve efficiency in the logistics industry and build a robust logistics infrastructure.
Furthermore, to achieve further growth in the Transportation Services Business and create new value, we have subdivided the business area into six segments and established strategic departments within the Company. By strengthening the promotion of initiatives across the Group and accelerating the creation of new value through O.P.P., we aim to realize a “Supporting Society Through Logistics.”
In passenger vehicle sales in the Vehicle Sales Business, we will enhance customer satisfaction by optimizing our branch network through the renewal of branches and service workshops and the optimization of locations based on commercial area analysis. Additionally, we will focus on recruiting, developing, and retaining personnel, including mechanics, and enhancing our training programs to promote “store creation chosen by customers.”
In truck sales, although supply restrictions continue for some new vehicles due to past manufacturer certification misconduct, we will strengthen proposals for financial products such as leasing and insurance. Additionally, by offering preventive maintenance proposals to reduce the risk of costly breakdowns on the road, we will conduct sales tailored to customer needs, thereby focusing on our highly profitable maintenance business.
In the Merchandise Sales Business, Real Estate Leasing Services Business, and Other Business, we will advance the expansion of business domains and strengthen existing businesses to stabilize the revenue base of the Group as a whole.
To all shareholders, we sincerely ask for your ongoing encouragement and support into the future.
June 2026
Yoshitaka Taguchi,
President and Chief Executive Officer
Takao Taguchi,
Representative Director