Summary of Financial Results for the Third Quarter of Fiscal Year 2014
(Nine Months Ended September 30, 2014)[Japanese GAAP]
October 31, 2014
Company name: SENSHUKAI CO.,LTD.
Stock exchange: Tokyo Stock Exchange, First Section
Stock code:
8165
URL: http://www.senshukai.co.jp
Representative:
Mr. Michio Tanabe, President and Representative Director
Inquiries:
Mr. Hiroyuki Hoshino, Director, Executive Officer,
General Manager of the Corporate Development Division Tel: +81-6-6881-3220
Scheduled date of filing of Quarterly Report: November 13, 2014
Scheduled date of payment of dividend: Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting: None
(All amounts are rounded down to the nearest millions of yen)

1. Consolidated Financial Results for the 3rd Quarter of 2014 (January 1, 2014 – September 30, 2014)(1) Consolidated operating results (cumulative)(Percentages represent changes from the same period of the previous fiscal year)
Operating income
Ordinary income
Net income

Net sales
Millions of yen%

Millions of yen% Millions of yen

3Q 2014102,135 1.2
837 (46.8)
3Q 2013
100,954 (1.2)
1,575
Note: Comprehensive income (millions of yen) 3Q 2014: 697 (down 70.3%)
Net income per share
3Q 2014
3Q 2013Millions of yen%

1,092 (45.7)
346
2,012 490.9
1,190
3Q 2013: 2,346 (up 297.6%)%(70.9)-

Diluted net income per share

Yen

Yen

8.00
27.49

7.33
-

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

3Q 2014
99,712
Fiscal Year 2013
98,800
Reference: Shareholders’ equity (millions of yen) 3Q 2014: 49,988

49,98850,359Net assets per share
%

Yen

50.1
51.0
Fiscal Year 2013: 50,359

1,154.25
1,162.81

2. Dividends
1Q-endDividend per share
3Q-end2Q-endYen

Yen

Year-end

Total

Yen

Yen

Yen

-

12.00

24.00

12.00

24.00

Fiscal Year 2013
12.00
Fiscal Year 2014
12.00
Fiscal Year 2014 (forecasts)
Note: Revision to the most recently announced dividend forecast: None

3. Consolidated Outlook for Fiscal Year 2014 (January 1, 2014 – December 31, 2014)
Net sales
Millions of yen(Percentages represent changes from the same period of the previous fiscal year)
Net income
Operating income
Ordinary income
Net income
per share% Millions of yen%

Millions of yen

Full Year 2014
146,500 3.5
3,600 (10.4)
Note: Revision to the most recently announced consolidated outlook: None

% Millions of yen

4,000 (13.6)%

Yen

2,300 (43.2)

53.11

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
Newly added: -Excluded: -(2) Application of special accounting methods for presenting quarterly consolidated financial statements: Yes
Note: Please refer to “2. Matters Related to Summary Information (Notes), (2) Application of Special Accounting Methods
for Presenting Quarterly Consolidated Financial Statements” on page 3 for further information.

(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(4) Number of shares outstanding (common shares)
1) Number of shares outstanding at end of period (including treasury shares)
3Q 2014:47,630,393 sharesFiscal Year 2013:

47,630,393 sharesFiscal Year 2013:

4,321,851 shares

3Q 2013:43,308,820 shares

2) Number of treasury shares at end of period
3Q 2014:

4,322,308 shares

3) Average number of shares outstanding during the period
3Q 2014:43,308,309 shares* Disclosure regarding the implementation of quarterly review procedures
These quarterly financial results materials are not subject to quarterly review procedures based on the Financial Instruments
and Exchange Act. Thus, at the time of its disclosure, the quarterly financial statement review procedures based on the
Financial Instruments and Exchange Act have not been completed.

* Cautionary statement with respect to forward-looking statements
The above projections are based on information available at the time of release of this report. Actual results could differ
significantly from these projections due to a variety of factors. For further details regarding the projections, please refer to page3, “1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecasts
and Other Forward-looking Statements.”

SENSHUKAI CO.,LTD. (8165) Financial Results for the Third Quarter of Fiscal Year 2014

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

3(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements

3

2. Matters Related to Summary Information (Notes)

3(1) Changes in Significant Subsidiaries during the Period

3(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

3(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements

3

3. Quarterly Consolidated Financial Statements

4(1) Quarterly Consolidated Balance Sheet

4(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
Income6

Quarterly Consolidated Statement of Income(For the Nine-month Period)

6

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)7(3) Notes to Quarterly Consolidated Financial Statements

8(Going Concern Assumption)

8(Significant Changes in Shareholders’ Equity)

8(Segment and Other Information)

8-1-

SENSHUKAI CO.,LTD. (8165) Financial Results for the Third Quarter of Fiscal Year 2014

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the cumulative third quarter (January 1, 2014 to September 30, 2014) of the current fiscal year, the Japanese
economy continued to recover at a moderate pace as corporate profits and employment situation improved withthe support of economic and monetary measures by the Japanese government and Bank of Japan. In the retailindustry, the operating environment remained severe due to the slow pace of the recovery in personal consumption.
Spending by consumers was impacted by the consumption tax rate hike in April. Furthermore, the higher cost ofelectricity and gasoline due to the weaker yen along with other rising prices have lowered the real income of
consumers.
In this environment, the Senshukai Group is concentrating on achieving the first fiscal year targets of the mediumto long-term management plan that started in 2014.
Net sales in the cumulative third quarter increased 1.2% year-over-year to 102,135 million yen.
Operating income decreased 46.8% year-over-year to 837 million yen due to a decline in the gross profit margin
caused primarily by the effect of the weaker yen in the mail-order business.
Ordinary income decreased 45.7% year-over-year to 1,092 million yen and net income decreased 70.9%
year-over-year to 346 million yen.
Overview by segment(Mail-order Business)
Consolidated sales in the mail-order business, comprising the catalog and the hanpukai businesses, decreased
0.4% year-over-year to 90,386 million yen in the cumulative third quarter.
Operating income decreased 55.6% year-over-year to 525 million yen. Although there were reductions inpromotion expenses and printing costs, the gross profit margin declined because of the higher cost of sales.
(a) Catalog business
Consolidated sales in the catalog business increased 0.6% year-over-year to 85,231 million yen in the
cumulative third quarter.
(b) Hanpukai business
Consolidated sales in the hanpukai business decreased 14.2% year-over-year to 5,154 million yen in the
cumulative third quarter.
(Bridal Business)
Consolidated sales in the bridal business, centered on the house wedding business, increased 21.0%
year-over-year to 8,534 million yen in the cumulative third quarter, and operating income increased 20.3%
year-over-year to 82 million yen.
(Corporates Business)
Consolidated sales in the corporates business, which provides products and services to corporations, increased
0.2% year-over-year to 2,843 million yen in the cumulative third quarter, and operating income decreased 22.4%
year-over-year to 220 million yen.
(Others)
Consolidated sales in other businesses, which provides services business (primarily insurance and credit card
services) and childcare business, increased 5.3% year-over-year to 371 million yen in the cumulative third quarter,and operating income decreased 76.9% year-over-year to 9 million yen.

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SENSHUKAI CO.,LTD. (8165) Financial Results for the Third Quarter of Fiscal Year 2014

(2) Explanation of Financial Position(Balance sheet position)
Assets totaled 99,712 million yen at the end of the third quarter of the current fiscal year, an increase of 911
million yen from the end of the previous fiscal year.
Current assets increased 1,539 million yen to 51,717 million yen. The main factors were increases of 2,498
million yen in merchandise and finished goods, 1,217 million yen in cash and deposits, and 782 million yen inother, while there was a decrease of 2,959 million yen in accounts receivable-other. Non-current assets decreased
627 million yen to 47,994 million yen. The main factors were decreases of 312 million yen in intangible assets
and 384 million yen in investments and other assets, while there was an increase of 69 million yen in property,
plant and equipment.
Current liabilities decreased 4,521 million yen to 35,113 million yen. The main factors were decreases of 8,395
million yen in other and 274 million yen in income taxes payable, while there was an increase of 4,319 million
yen in electronically recorded obligations-operating. Non-current liabilities increased 5,804 million yen to 14,609
million yen. The main factor was an increase of 7,000 million yen in bonds with subscription rights to shares,
while there were decreases of 761 million yen in long-term loans payable and 700 million yen in bonds payable.
Net assets decreased 371 million yen to 49,988 million yen. The main factor was a decrease of 718 million yen inretained earnings, while there were increases of 294 million yen in valuation difference on available-for-salesecurities and 37 million yen in deferred gains or losses on hedges. Consequently, the equity ratio was 50.1%.
(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
Senshukai currently maintains its consolidated outlook for the current fiscal year (January 1, 2014 to December
31, 2014) that was revised and released on July 25, 2014.
2. Matters Related to Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period
Not applicable.
(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements(Calculation of tax expense)
The tax expenses are calculated by first estimating the effective tax rate after the application of tax effectaccounting with respect to income before income taxes and minority interests during the fiscal year in which thequarter under review falls, and multiplying that rate by the income before income taxes and minority interests forthe quarter under review. However, the Company uses legally stipulated effective tax rates to calculate tax
expenses for cases in which using estimated tax rates gives a noticeably irrational result.
(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements
Not applicable.

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SENSHUKAI CO.,LTD. (8165) Financial Results for the Third Quarter of Fiscal Year 2014

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Millions of yen)
Fiscal Year 2013
(As of Dec. 31, 2013)

3Q 2014(As of Sep. 30, 2014)

AssetsCurrent assets
Cash and deposits

6,495

7,712

Notes and accounts receivable-trade

6,395

6,379

Merchandise and finished goods

21,296

23,794

Accounts receivable-other

9,609

6,649

Other

6,688

7,470

Allowance for doubtful accounts

(306)

(290)

50,17751,717

Buildings and structures, net

13,754

14,233

Land

12,10812,096

Total current assets
Non-current assets
Property, plant and equipment

Other, net

2,912

2,514

Total property, plant and equipment

28,77528,844

Goodwill

2,127

2,087

Other

3,604

3,331

Total intangible assets

5,731

5,419

Investment securities

7,514

7,087

Other

6,914

6,956

Allowance for doubtful accounts

(314)

(312)

Intangible assets

Investments and other assets

Total investments and other assets
Total non-current assets
Total assets-4-

14,114

13,73048,622

47,99498,80099,712SENSHUKAI CO.,LTD. (8165) Financial Results for the Third Quarter of Fiscal Year 2014

(Millions of yen)
3Q 2014(As of Sep. 30, 2014)

Fiscal Year 2013
(As of Dec. 31, 2013)
Liabilities
Current liabilities
Notes and accounts payable-trade

6,496

6,743

Electronically recorded obligations-operating

6,204

10,524

Short-term loans payable

6,386

6,147

Current portion of bonds

700

700

Income taxes payable

416

141

Provision for directors' bonuses

30-

Provision for sales promotion expenses

588

439

Other

18,813

10,417

Total current liabilities

39,635

35,113

1,150

450

-

7,000

4,814

4,052

34

85

Non-current liabilities
Bonds payable
Bonds with subscription rights to shares
Long-term loans payable
Provision for retirement benefits
Other

2,806

3,021

Total non-current liabilities

8,805

14,60948,44049,723

Total liabilities
Net assets
Shareholders’ equity
Capital stock

20,35920,359

Capital surplus

21,03821,038Retained earnings

16,353

15,635

Treasury shares(2,776)(2,776)

Total shareholders’ equity

54,97554,256774

1,068

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

1,278

1,316

Revaluation reserve for land

(6,720)(6,724)52

71

Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-5-(4,615)(4,268)50,35949,98898,80099,712SENSHUKAI CO.,LTD. (8165) Financial Results for the Third Quarter of Fiscal Year 2014

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
Income(Quarterly Consolidated Statement of Income)(For the Nine-month Period)(Millions of yen)

Net sales

3Q 2013(Jan. 1, 2013 – Sep. 30, 2013)
100,954

3Q 2014(Jan. 1, 2014 – Sep. 30, 2014)
102,135

Cost of sales

51,75654,155Gross profit

49,19747,979Selling, general and administrative expenses

47,622

47,142

Operating income

1,575

837

Interest income

4131Dividend income

78

79

Gain on adjustment of account payable

184

169

Other

373

204

Total non-operating income

677

484

Interest expenses

162

147

Other

78

82

Non-operating income

Non-operating expenses

Total non-operating expenses

240

229

2,012

1,092

Gain on sales of non-current assets

44Gain on sales of investment securities

51

0

Total extraordinary income

55

4

Ordinary income
Extraordinary income

Extraordinary losses
Loss on sales and retirement of non-current assets

606

49

-

150

Loss on sales of investment securities

-

147

Other

53

41

Loss on valuation of investment securities

Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests in income
Net income

-6-

659

389

1,409

707

218

360

1,190

347

-

0

1,190

346

SENSHUKAI CO.,LTD. (8165) Financial Results for the Third Quarter of Fiscal Year 2014

(Quarterly Consolidated Statement of Comprehensive Income)(For the Nine-month Period)(Millions of yen)
3Q 2013(Jan. 1, 2013 – Sep. 30, 2013)

3Q 2014(Jan. 1, 2014 – Sep. 30, 2014)

1,190

347

1,121

294

Deferred gains or losses on hedges

(49)

37

Foreign currency translation adjustment
Share of other comprehensive income of entities accounted
for using equity method

61

9

23

9

1,156

350

2,346

697

Comprehensive income attributable to owners of parent

2,346

697

Comprehensive income attributable to minority interests-

0

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to-7-

SENSHUKAI CO.,LTD. (8165) Financial Results for the Third Quarter of Fiscal Year 2014

(3) Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Significant Changes in Shareholders’ Equity)
Not applicable.
(Segment and Other Information)
I 3Q 2013 (Jan. 1, 2013 – Sep. 30, 2013)
1. Information related to sales and profit or loss for each reportable segment(Millions of yen)

Reportable segment

Net sales
Sales to customers
Inter-segment sales
or transfers
Total

Amounts shown onquarterly
Adjustment
consolidated(Note 2)statement of income(Note 3)Mail-orderbusiness

Bridalbusiness

Corporates
business

Sub-total

Others(Note 1)90,712

7,051

2,838

100,601

352

100,954-

100,954

493

-

25

518

101

620

(620)

-

91,205

7,051

2,863

101,120454

101,574(620)

100,954

Total

Segment profit
1,184
68
283
1,536
39
1,576
(1)
1,575
Notes: 1. Others represent the businesses which are not included in any of the three reportable segments and consist of theservices business primarily offering travel and credit card services, and the pet business distributing pet goods
through retail stores.
2. The (1) million yen adjustment to segment profit comprises elimination for inter-segment transactions.
3. Segment profit is adjusted to be consistent with operating income shown on the quarterly consolidated statement ofincome.

2. Information related to impairment of non-current assets, goodwill, etc. for each reportable segment
No major events or changes occurred.
II 3Q 2014 (Jan. 1, 2014 – Sep. 30, 2014)
1. Information related to sales and profit or loss for each reportable segment(Millions of yen)

Reportable segment

Net sales
Sales to customers
Inter-segment sales
or transfers
Total

Corporates
Sub-total
business

Others(Note 1)

Total

Amounts shown onquarterly
Adjustment
consolidated(Note 2)statement of income(Note 3)Mail-orderbusiness

Bridalbusiness

90,386

8,534

2,843

101,763371

102,135-

102,135

612

-

89

702

0

703

(703)

-

90,998

8,534

2,933

102,466371

102,838(703)

102,135

Segment profit
525
82
220
828
9
837
0
837
Notes: 1. Others represent the businesses which are not included in any of the three reportable segments and consist mainly of
the services business primarily offering insurance and credit card services, and childcare business.
2. The 0 million yen adjustment to segment profit comprises elimination for inter-segment transactions.
3. Segment profit is adjusted to be consistent with operating income shown on the quarterly consolidated statement ofincome.

2. Information related to impairment of non-current assets, goodwill, etc. for each reportable segment
No major events or changes occurred.
* This financial report is solely a translation of summary of “Kessan Tanshin” (in Japanese, including attachments), which has
been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience ofreaders who prefer an English translation.
-8-