Establishment of a Sales Structure for Stationary Storage and Other Applications for Shipping Containers

「Cargo transportation demand in Japan remains uncertain due to the shortage of crew members resulting from the logistics industry’s “2024 problem.” As a rail transportation provider, the Group is focusing on developing new demand, including by providing user-specific containers with wrapping and custom-order features, and acquiring long-term, stable lease contracts, with the aim of serving as a solution to the expected shortage of transportation capacity. It is also working to maintain and improve profitability by selling containers that have been in service for 15 years as reused containers.」

「From the third quarter of the previous consolidated fiscal year, for the sale of containers for rail transportation occurring on a recurring basis, the Company changed from recording the net gain on disposal as non-operating income to recording the sales proceeds as net sales and the amount issued as merchandise as cost of sales, except for certain containers disposed of as scrap.」

「This change was made under the policy of seeking to further enhance corporate value through the effective use of assets held. The Company decided to sell, on a full-scale and systematic basis, containers that could no longer be used for transportation due to age for use as stationary storage units and other purposes, and established a container sales organization and system in October 2023 to better reflect the actual nature of the transactions.」