Summary of Financial Results for the Third Quarter of Fiscal Year 2012
(Nine Months Ended September 30, 2012)[Japanese GAAP]
October 26, 2012
Company name: Senshukai Co., Ltd.
Stock exchanges: Tokyo and Osaka, First Sections
Stock code:
8165
URL: http://www.senshukai.co.jp
Representative:
Mr. Michio Tanabe, President and Representative Director
Inquiries:
Mr. Takeshi Naito, Executive Officer, General Manager of the Corporate Development Division
Tel: +81-6-6881-3220
Scheduled date of filing of Quarterly Report: November 13, 2012
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 million yen)

1. Consolidated Financial Results for the 3rd Quarter of 2012 (January 1, 2012 – September 30, 2012)(1) Consolidated operating results (cumulative)
Net sales(Percentages represent changes from the same period of the previous fiscal year)
Operating income
Ordinary income
Net income

Million yen%

Million yen

3Q 2012102,219
6.6
3Q 2011
95,905 (1.7)
Note: Comprehensive income (million yen)
3Q 2012:Net income per share
3Q 2012
3Q 2011%

Million yen

127 (88.7)
1,130 (31.3)
590 (down 38.6%)%

Million yen

%

(55)
150

(83.0)

340 (66.7)
1,023 (31.6)
3Q 2011: 961 (- %)Diluted net income per
share

Yen

Yen

(1.28)
3.48-(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen

3Q 2012
92,248
Fiscal Year 2011
90,441
Reference: Shareholders’ equity (million yen) 3Q 2012:

Net assets per share%

41,29841,444
41,298

Yen

44.8
45.8
Fiscal Year 2011: 41,444

953.58956.94

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

Yen

Fiscal Year 2011
7.00
Fiscal Year 2012
10.00
Fiscal Year 2012 (forecasts)
Note: Revision to the most recently announced dividend forecast: None

Year-end

Total

Yen

Yen

Yen

-

7.00

14.00

10.00

20.00

3. Consolidated Outlook for Fiscal Year 2012 (January 1, 2012 – December 31, 2012)(Percentages represent changes from the same period of the previous fiscal year)
Net income
Operating income
Ordinary income
Net income
per share

Net sales
Million yen%

Million yen%

Million yen

Full Year 2012
147,500
7.5
3,300
6.2
Note: Revision to the most recently announced consolidated outlook: None

3,500

%

Million yen

%

Yen

8.2

2,850

80.0

65.81

* 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)” on page 4 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 stock)
3Q 2012:47,630,393 sharesFiscal Year 2011:

47,630,393 sharesFiscal Year 2011:

4,321,035 shares

3Q 2011:43,309,544 shares

2) Number of shares of treasury stock at end of period
3Q 2012:4,321,414 shares

3) Average number of shares outstanding during the period
3Q 2012:43,309,210 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 topage 3, “Qualitative Information Regarding Consolidated Outlook.”Senshukai Co., Ltd. (8165) Financial Report for the Third Quarter of Fiscal Year 2012

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

2(2) Qualitative Information Regarding Consolidated Financial Position

3(3) Qualitative Information Regarding Consolidated Outlook

3

2. Matters Related to Summary Information (Notes)

4(1) Changes in Significant Subsidiaries during the Period

4(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

4(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements

4

3. Quarterly Consolidated Financial Statements

5(1) Quarterly Consolidated Balance Sheets

5(2) Quarterly Consolidated Statements of Income and Comprehensive Income

7

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

7

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

8(3) Going Concern Assumption

9(4) Significant Changes in Shareholders’ Equity

9(5) Segment and Other Information

9-1-

Senshukai Co., Ltd. (8165) Financial Report for the Third Quarter of Fiscal Year 2012

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Qualitative Information Regarding Consolidated Results of Operations
In the cumulative third quarter (January 1, 2012 to September 30, 2012) of the current fiscal year, the Japanese
economy remained unclear due to global economic stagnation caused by the European debt crisis and the slowing
Chinese economy, and protracted yen appreciation.
In the retail industry, personal consumption was weak due to the impact of economic deterioration as well as
typhoons and lingering heat in September. The business environment surrounding companies remains harsh.
In this environment, the Senshukai Group pulled together to achieve the targets of its medium-term management
plan which concludes in Fiscal Year 2013.
Net sales in the cumulative third quarter rose 6.6% year-over-year to 102,219 million yen.
As for profits, operating income declined 88.7% year-over-year to 127 million yen due to a decline in the grossprofit margin on higher cost-of-sales ratio and an increase in selling, general, and administrative expenses.
Ordinary income declined 66.7% year-over-year to 340 million yen despite foreign exchange gains and other factors.
Net loss totaled 55 million yen, compared with income of 150 million yen in the same period of the previous fiscal
year, mainly due to the loss on valuation of investment securities.

Overview by segment(Mail-order Business)
Consolidated sales in the mail-order business, comprising the catalog and the hanpukai businesses, increased 6.2%
year-over-year to 91,669 million yen in the cumulative third quarter due to an increase in membership in the catalog
business.
The gross profit margin deteriorated due to an increase in sales of Internet-only products which tend to have a highcost of sales, and an increase in bargain sales in the wake of higher inventory. Also, selling, general andadministrative expenses rose due to an increase in distribution-related costs from an increase in the number ofdeliveries, and an increase in catalog-related costs. As a result, operating loss totaled 293 million yen, comparedwith income of 812 million yen in the same period of the previous fiscal year.
1) Catalog business
Consolidated sales in the catalog business rose 7.5% year-over-year to 85,041 million yen in the cumulative third
quarter.
2) Hanpukai business
Consolidated sales in the hanpukai business decreased 7.9% year-over-year to 6,628 million yen in the cumulative
third quarter.
(Bridal Business)
Consolidated sales in the bridal business, centered on the house wedding business, rose 24.4% year-over-year to
6,779 million yen in the cumulative third quarter due to an increase in the number of weddings from the opening of
new facilities. Operating income totaled 187 million yen, compared with loss of 19 million yen in the same periodof the previous fiscal year.

-2-Senshukai Co., Ltd. (8165) Financial Report for the Third Quarter of Fiscal Year 2012

(Corporates Business)
Consolidated sales in the corporates business, which provides products and services to corporations, decreased
12.0% year-over-year to 2,830 million yen in the cumulative third quarter due to the lower contracting services sales.
Operating income decreased 22.5% year-over-year to 279 million yen.
(Others)
Consolidated sales in other businesses, which consist of the services business (primarily travel and credit card
services) and the pet business (pet goods sales through retail stores), increased 0.5% year-over-year to 939 million
yen in the cumulative third quarter. Operating loss totaled 46 million yen, compared with loss of 29 million yen in
the same period of the previous fiscal year.
Note: As Senshukai changed its reportable segment classifications from the third quarter of the current fiscal year,
the new classifications have been applied to year-ago figures to allow for year-over-year comparisons. Pleasesee “3. Quarterly Consolidated Financial Statements, (5) Segment and Other Information” for details.
(2) Qualitative Information Regarding Consolidated Financial Position(Balance sheet position)
Assets totaled 92,248 million yen at the end of the third quarter of the current fiscal year, up 1,807 million yen fromthe end of the previous fiscal year.
Current assets increased 1,220 million yen to 45,702 million yen. The main factors were decreases of 2,121 million
yen in accounts receivable-other and 1,738 million yen in cash and deposits, and increases of 2,756 million yen inmerchandise and finished goods, 1,124 million yen in other, 643 million yen in notes and accounts receivable-tradeand 506 million yen in short-term investment securities. Noncurrent assets increased 586 million yen to 46,546
million yen, mainly due to decreases of 455 million yen in intangible assets and 828 million yen in investments andother assets, and an increase of 1,871 million yen in property, plant and equipment.
Current liabilities decreased 1,537 million yen to 39,706 million yen. The main factors were an increase of 2,586
million yen in short-term loans payable, and decreases of 1,409 million yen in accounts payable-factoring, 855
million yen in notes and accounts payable-trade, 842 million yen in other, 739 million yen in forward exchange
contracts and 172 million yen in provision for sales promotion expenses. Noncurrent liabilities increased 3,490
million yen to 11,243 million yen. The main factor was an increase of 3,490 million yen in long-term loans payable.
Net assets decreased 146 million yen to 41,298 million yen. The main factors were increases of 377 million yen indeferred gains or losses on hedges and 269 million yen in valuation difference on available-for-sale securities, and adecrease of 791 million yen in retained earnings. Consequently, the equity ratio was 44.8%.
(3) Qualitative Information Regarding Consolidated Outlook
Senshukai maintains its consolidated outlook for the current fiscal year (January 1, 2012 to December 31, 2012) thatwas released on July 20, 2012, but actual results could differ significantly due to a variety of factors. Senshukai willquickly disclose any revisions to its consolidated outlook as they become necessary.

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Senshukai Co., Ltd. (8165) Financial Report for the Third Quarter of Fiscal Year 2012

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 effect accounting
with respect to income before income taxes and minority interests during the fiscal year in which the quarter underreview falls, and multiplying that rate by the income before income taxes and minority interests for the quarter
under review. However, the Company uses legally stipulated effective tax rates to calculate tax expenses for cases inwhich using estimated tax rates gives a noticeably irrational result.
(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements
Not applicable.
(Additional information)
Application of Accounting Standard for Accounting Changes and Error Corrections
Senshukai has adopted the “Accounting Standard for Accounting Changes and Error Corrections” (AccountingStandards Board of Japan (ASBJ) Statement No. 24, December 4, 2009)” and the “Guidance on AccountingStandard for Accounting Changes and Error Corrections” (ASBJ Guidance No. 24, December 4, 2009) for
accounting method revisions and for corrections to past errors from the beginning of the first quarter of the current
fiscal year.

-4-Senshukai Co., Ltd. (8165) Financial Report for the Third Quarter of Fiscal Year 2012

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Million yen)
3Q 2012(As of Sep. 30, 2012)

Fiscal Year 2011
(As of Dec. 31, 2011)
AssetsCurrent assets
Cash and deposits

7,500

5,762

Notes and accounts receivable-trade

6,589

7,232

Short-term investment securities

31

538

Merchandise and finished goods

17,022

19,779Raw materials and supplies

118

119

Accounts receivable-other

8,802

6,680

Other

4,696

5,820

Allowance for doubtful accounts

(278)

(229)

Total current assets

44,48245,702

Buildings and structures, net

13,513

13,443

Land

10,88011,947

Other, net

2,056

2,929

Total property, plant and equipment

26,44928,320Goodwill

2,429

2,315

Other

4,506

4,164

Total intangible assets

6,935

6,480

Investment securities

5,996

5,514

Other

6,921

6,549

Allowance for doubtful accounts

(343)

(317)

Total investments and other assets

12,574

11,74545,95946,54690,441

92,248

Noncurrent assets
Property, plant and equipment

Intangible assets

Investments and other assets

Total noncurrent assets
Total assets-5-Senshukai Co., Ltd. (8165) Financial Report for the Third Quarter of Fiscal Year 2012

(Million yen)
3Q 2012(As of Sep. 30, 2012)

Fiscal Year 2011
(As of Dec. 31, 2011)
Liabilities
Current liabilities
Notes and accounts payable-trade

9,282

8,427

Short-term loans payable

3,843

6,430

Current portion of bonds

736

700

Accounts payable-factoring

13,71012,300

Income taxes payable

146

108

Provision for directors’ bonuses

31-

Provision for sales promotion expenses

613

441

Forward exchange contracts

1,941

1,201

Other

10,93910,097

Total current liabilities

41,24439,706

Bonds payable

2,550

1,850

Long-term loans payableNoncurrent liabilities
3,971

7,462

Provision for retirement benefits

31

33

Asset retirement obligations

364

317

Other

834

1,580

7,753

11,243

48,99750,950Capital stock

20,35920,359

Capital surplus

21,03821,038Retained earnings

12,288

11,496

Treasury stock(2,775)(2,775)

Total shareholders’ equity

50,91050,118Valuation difference on available-for-sale securities(1,008)(739)

Deferred gains or losses on hedges(1,237)(860)

Revaluation reserve for land

(7,041)(7,041)

Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

-6-

(177)

(178)

(9,465)(8,820)41,444

41,29890,441

92,248Senshukai Co., Ltd. (8165) Financial Report for the Third Quarter of Fiscal Year 2012

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income(For the Nine-month Period)
3Q 2011(Jan. 1, 2011 – Sep. 30, 2011)(Million yen)
3Q 2012(Jan. 1, 2012 – Sep. 30, 2012)

Net sales

95,905102,219

Cost of sales

49,85053,973Gross profit

46,05548,245

Selling, general and administrative expenses

44,925

48,117

Operating income

1,130

127

Interest income

33

40

Dividends income

87

84

Foreign exchange gains

39

191

Other

289

379

Total non-operating income

449

696

Interest expenses

171

186

Relief aid expenses

108-

Commission fee-

187

Non-operating income

Non-operating expenses

Other

276

110

Total non-operating expenses

556

483

1,023

340

1

1

Gain on sales of investment securities

139

22

Total extraordinary income

140

23

Ordinary income
Extraordinary income
Gain on sales of noncurrent assets

Extraordinary loss
Loss on sales and retirement of noncurrent assets

42

95

Loss on valuation of investment securities

372

183

Provision of allowance for doubtful accounts

183-

Loss on valuation of golf club membership
Loss on adjustment for changes of accounting standard for
asset retirement obligations
Loss on disaster

1

-

111

-

62

-

Special retirement expenses

122

-

Other

16

-

911

278

Income before income taxes and minority interests

Total extraordinary losses

252

85

Income taxes

101

140

Income (loss) before minority interests

150

(55)

Net income (loss)

150

(55)

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Senshukai Co., Ltd. (8165) Financial Report for the Third Quarter of Fiscal Year 2012

Quarterly Consolidated Statements of Comprehensive Income(For the Nine-month Period)
3Q 2011(Jan. 1, 2011 – Sep. 30, 2011)(Million yen)
3Q 2012(Jan. 1, 2012 – Sep. 30, 2012)

150

(55)

Valuation difference on available-for-sale securities

123

269

Deferred gains or losses on hedges

705

377

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

(7)

(1)

(11)

-

810

645

961

590

Comprehensive income attributable to owners of the parent

961

590

Comprehensive income attributable to minority interests--

Income (loss) before minority interests
Other comprehensive income

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to-8-

Senshukai Co., Ltd. (8165) Financial Report for the Third Quarter of Fiscal Year 2012

(3) Going Concern Assumption
Not applicable.
(4) Significant Changes in Shareholders’ Equity
Not applicable.
(5) Segment and Other InformationI

3Q 2011 (Jan. 1, 2011 – Sep. 30, 2011)

1. Information related to sales and profit or loss for each reportable segment(Million yen)

Reportable segment

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

Bridalbusiness

Corporates
business

Sub-total

Others(Note 1)

Total

Sales to customers

86,304

5,450

3,215

94,970934

95,905-95,905Inter-segment sales

701

-

210

911

63

974

(

974)

-

Total

87,005

5,450

3,425

95,882998

96,880(974)

95,905

Segment profit (loss)

812

(19)

361

1,154

(29)

1,124

5

1,130

Net sales

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 sales
through retail stores.
2. The 5 million yen adjustment to segment profit (loss) comprises elimination for inter-segment transactions.
3. Segment profit (loss) is adjusted to be consistent with operating income shown on the quarterly consolidated
statements of income.

2. Information related to impairment of noncurrent assets, goodwill, etc. for each reportable segment
No major events or changes occurred.
II

3Q 2012 (Jan. 1, 2012 – Sep. 30, 2012)

1. Information related to sales and profit or loss for each reportable segment(Million yen)

Reportable segment
Mail-orderbusiness

Bridalbusiness

Corporates
business

Sub-total

Others(Note 1)

91,669

6,779

2,830

101,279

939

Total

Amounts shown onquarterly
Adjustment
consolidated(Note 2)statements of income(Note 3)

Net sales
Sales to customers

102,219-

102,219

Inter-segment sales

454

-

44

499

95

594

(

594)

-

Total

92,124

6,779

2,874

101,778

1,034

102,813(594)

102,219

Segment profit (loss)

(293)

187

279

174

(46)

127

(0)

127

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 sales
through retail stores.
2. The (0) million yen adjustment to segment profit (loss) comprises elimination for inter-segment transactions.
3. Segment profit (loss) is adjusted to be consistent with operating income shown on the quarterly consolidated
statements of income.

2. Information related to impairment of noncurrent assets, goodwill, etc. for each reportable segment
No major events or changes occurred.

-9-Senshukai Co., Ltd. (8165) Financial Report for the Third Quarter of Fiscal Year 2012

3. Information related to revisions for reportable segments
Following the business transfer between companies within the consolidated group, a part of the business in theothers segment was changed to the mail-order business segment in the third quarter of the current fiscal year. The
reportable segment for the cumulative third quarter of the previous fiscal year is prepared and disclosed based on thecalculation methods after this change.

* 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.

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