Summary of Financial Results for the First Quarter of Fiscal Year 2012
(Three Months Ended March 31, 2012)[Japanese GAAP]
April 27, 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: May 14, 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 1st Quarter of 2012 (January 1, 2012 – March 31, 2012)(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
Million yen%

1Q 201234,062
1Q 2011
31,776
Note: Comprehensive income (million yen)

Net income per share
1Q 2012
1Q 2011

Million yen

7.2
(1.2)
1Q 2012:%

Million yen

(741)
714
35.0
1,142 (down 5.2%)%

Million yen(216)
881 (17.1)
1Q 2011: 1,204 (- %)

%

(178)
675

(37.3)

Diluted net income per
share

Yen

Yen

(4.12)
15.59-(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen

1Q 201293,634
Fiscal Year 2011
90,441
Reference: Shareholders’ equity (million yen) 1Q 2012:

42,28341,44442,283

Net assets per share
%

Yen

45.2
45.8
Fiscal Year 2011: 41,444

976.32956.94

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

Yen

Fiscal Year 2011
7.00
Fiscal Year 2012
Fiscal Year 2012 (forecasts)
10.00
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%

2Q 2012 (cumulative)
73,9006.3
1,700 (29.1)
1,800 (31.6)
Full Year 2012
148,000
7.8
4,000 28.7
4,000 23.7
Note: Revision to the most recently announced consolidated outlook: None

Million yen%

Yen

1,500 (30.8)
3,000 89.5

34.63
69.27

4. Other(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 (Others)” 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 stock)
1Q 2012:47,630,393 sharesFiscal Year 2011:

47,630,393 sharesFiscal Year 2011:

4,321,035 shares

1Q 2011:43,309,633 shares

2) Number of shares of treasury stock at end of period
1Q 2012:4,321,172 shares

3) Average number of shares outstanding during the period
1Q 2012:43,309,318 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 First 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 (Others)

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

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 Three-month Period)

7

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

8(3) Going Concern Assumption

9(4) Segment and Other Information

9(5) Significant Changes in Shareholders’ Equity

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

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Qualitative Information Regarding Consolidated Results of Operations
In the first quarter (January 1, 2012 to March 31, 2012) of the current fiscal year, the Japanese economy was
expected to improve due to reconstruction demand in the aftermath of the Great East Japan Earthquake and the shift
from yen appreciation to yen depreciation, but it just treaded water due to surging crude oil prices and otherdeep-rooted worries.
In the retail industry, personal consumption recovered overall driven by consumption related to reconstruction
demand and a recovery in the consumption of high-priced items, but the outlook for the overall retail industry
remained uncertain.
In this environment, the Senshukai Group pulled together to achieve the second fiscal year targets of its
medium-term management plan which concludes in Fiscal Year 2013.
Net sales in the first quarter rose 7.2% year-over-year to 34,062 million yen.
As for profits, operating loss totaled 741 million yen, compared with operating income of 714 million yen in thesame period of the previous fiscal year, due to an increase in the purchasing cost ratio in the mail-order business anda general increase in selling, general, and administrative expenses.
Ordinary loss totaled 216 million yen, compared with ordinary income of 881 million yen in the same period of theprevious fiscal year, due to gain on valuation of compound financial instruments and foreign exchange gains. Net
loss totaled 178 million yen compared with net income of 675 million yen in the same period of the previous fiscal
year.

Overview by segment(Mail-order Business)
Consolidated sales in the mail-order business, comprising the catalog and the hanpukai businesses, increased 7.9%
year-over-year to 30,952 million yen in the first quarter. Sales rose year-over-year in each month: in January andFebruary as falling temperatures boosted sales of autumn and winter items, and in March in reaction to the year-ago
slump caused by the Great East Japan Earthquake, and growing sales of spring items from mid-month supported byrising temperatures.
Although sales rose, operating loss totaled 751 million yen, compared with operating income of 813 million yen in
the same period of the previous fiscal year, as the cost-of-sales ratio rose due to an increase in bargain sales andclearance sales, catalog and other selling expenses rose due to promotional spending on television commercials andother media and the issue of new catalogs, and depreciation rose following systems-related investment last year.
1) Catalog business
Consolidated sales in the catalog business rose 9.4% year-over-year to 28,795 million yen in the first quarter.
2) Hanpukai business
Consolidated sales in the hanpukai business decreased 9.0% year-over-year to 2,156 million yen in the firstquarter.
(Bridal Business)
Consolidated sales in the bridal business, which provides mostly house wedding services, rose 40.4% year-over-year
to 1,964 million yen in the first quarter in reaction to last year's Great East Japan Earthquake, and the opening of"CANOVIANO Fukuoka." Operating loss totaled 71 million yen compared with loss of 203 million yen in the same
period of the previous fiscal year.

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

(Corporates Business)
Consolidated sales in the corporates business, which provides products and services to corporations, decreased
39.6% year-over-year to 775 million yen in the first quarter due to the end of a contract with a major outsourcing
client from last year. Operating income declined 1.7% year-over-year to 124 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), decreased 7.4% year-over-year to 370 million
yen in the first quarter. Operating loss totaled 42 million yen, compared with loss of 23 million yen in the same
period of the previous fiscal year.
(2) Qualitative Information Regarding Consolidated Financial Position(Balance sheet position)
Assets totaled 93,634 million yen at the end of the first quarter, up 3,192 million yen from the end of the previous
fiscal year.
Current assets increased 1,231 million yen to 45,713 million yen. The main factors were a decrease of 1,344 million
yen in accounts receivable-other, and increases of 1,188 million yen in merchandise and finished goods, 732 million
yen in other, and 453 million yen in notes and accounts receivable-trade. Noncurrent assets increased 1,961 million
yen to 47,920 million yen, mainly due to a decrease of 140 million yen in intangible assets, and increases of 1,405
million yen in property, plant and equipment and 695 million yen in investments and other assets.
Current liabilities increased 1,720 million yen to 42,964 million yen. The main factors were a decrease of 1,293
million yen in forward exchange contracts, and an increase of 3,541 million yen in short-term loans payable.
Noncurrent liabilities increased 632 million yen to 8,385 million yen. The main factors were a decrease of 350
million yen in bonds payable and an increase of 1,078 million yen in other.
Net assets increased 839 million yen to 42,283 million yen. The main factors were a decrease of 481 million yen inretained earnings, and increases of 859 million yen in deferred gains or losses on hedges and 421 million yen invaluation difference on available-for-sale securities. Consequently, the equity ratio was 45.2%.
(3) Qualitative Information Regarding Consolidated Outlook
At the time of release of this report, Senshukai has not changed the consolidated outlook for the current fiscal year
(January 1, 2012 to December 31, 2012) released on February 9, 2012.
2. Matters Related to Summary Information (Others)(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.

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

(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
The Company 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 First Quarter of Fiscal Year 2012

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Million yen)
1Q 2012(As of Mar. 31, 2012)

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

7,500

7,706

Notes and accounts receivable-trade

6,589

7,043

Short-term investment securities

31

6

Merchandise and finished goods

17,022

18,211

Raw materials and supplies

118

126

Accounts receivable-other

8,802

7,457

Other

4,696

5,428

Allowance for doubtful accounts

(278)

(266)

Total current assets

44,48245,713

Buildings and structures, net

13,513

13,518Land

10,88011,944

Noncurrent assets
Property, plant and equipment

Other, net

2,056

2,392

Total property, plant and equipment

26,44927,855Intangible assets
Goodwill

2,429

2,391

Other

4,506

4,404

Total intangible assets

6,935

6,795

Investment securities

5,996

6,396

Other

6,921

7,218

Allowance for doubtful accounts

(343)

(345)

Investments and other assets

Total investments and other assets
Total noncurrent assets
Total assets-5-

12,574

13,26945,95947,92090,441

93,634

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

(Million yen)
1Q 2012(As of Mar. 31, 2012)

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

9,282

9,298

Short-term loans payable

3,843

7,384

Current portion of bonds

736

736

Accounts payable-factoring

13,71014,172

Income taxes payable

146

43

Provision for directors’ bonuses

31

-

613

605

Forward exchange contracts

1,941

647

Other

10,93910,076

Total current liabilities

41,24442,964

Bonds payable

2,550

2,200

Long-term loans payable

3,971

3,900

Provision for sales promotion expenses

Noncurrent liabilities

Provision for retirement benefits

31

33

Asset retirement obligations

364

338

Other

834

1,913

7,753

8,385

48,99751,350Capital stock

20,35920,359

Capital surplus

21,03821,038Retained earnings

12,28811,806

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

Total shareholders’ equity

50,91050,428

Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities(1,008)(587)

Deferred gains or losses on hedges(1,237)(378)

Revaluation reserve for land

(7,041)(7,041)

(177)

(136)

(9,465)(8,144)

41,44442,28390,441

93,634Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-6-Senshukai Co., Ltd. (8165) Financial Report for First Quarter of Fiscal Year 2012

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income(For the Three-month Period)
1Q 2011(Jan. 1, 2011 – Mar. 31, 2011)(Million yen)
1Q 2012(Jan. 1, 2012 – Mar. 31, 2012)

Net sales

31,776

34,062

Cost of sales

16,467

18,137Gross profit

15,30815,925

Selling, general and administrative expenses

14,594

16,666714(741)Interest income

11

14

Dividends income

11Gain on valuation of compound financial instruments

27

189

Operating income (loss)
Non-operating income

Foreign exchange gains

169

318

Other

98

103

Total non-operating income

308

627

Interest expenses

59

56

Relief aid expenses

64

-

Other

17

45

Total non-operating expenses

141

101

881

(216)

Non-operating expenses

Ordinary income (loss)
Extraordinary income-

1

Gain on sales of investment securities

Gain on sales of noncurrent assets

137

22

Total extraordinary income

137

23

Loss on sales and retirement of noncurrent assets

16

18

Provision of allowance for doubtful accounts
Loss on adjustment for changes of accounting standard for
asset retirement obligations
Loss on disaster

181

-

111

-

12

-

Extraordinary loss

Other

12

-

Total extraordinary losses

335

18

683

(211)

Income (loss) before income taxes and minority interests
Income taxes

8

(32)

Income (loss) before minority interests

675

(178)

Net income (loss)

675

(178)

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

Quarterly Consolidated Statements of Comprehensive Income(For the Three-month Period)
1Q 2011(Jan. 1, 2011 – Mar. 31, 2011)(Million yen)
1Q 2012(Jan. 1, 2012 – Mar. 31, 2012)

675

(178)

Valuation difference on available-for-sale securities

(178)

421

Deferred gains or losses on hedges

686

859

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

10

32

10

8

529

1,320

1,204

1,142

1,204

1,142

-

-

Income (loss) before minority interests
Other comprehensive income

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests-8-Senshukai Co., Ltd. (8165) Financial Report for First Quarter of Fiscal Year 2012

(3) Going Concern Assumption
Not applicable.
(4) Segment Information
I 1Q 2011 (Jan. 1, 2011 – Mar. 31, 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)Sub-total

Others(Note 1)

Total

1,284

31,376399

31,776-

31,776

76

413

24

438

(438)

-

1,398

1,361

31,790424

32,214(438)

31,776

(203)

126

736

(23)

712

1

714

Mail-orderbusiness

Bridalbusiness

Corporates
business

Sales to customers

28,693

1,398Inter-segment sales

336

-

Total

29,029Segment profit (loss)

813

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.
2. The 1 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 in the consolidated first quarter.
II 1Q 2012 (Jan. 1, 2012 – Mar. 31, 2012)
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)Sub-total

Others(Note 1)

Total

775

33,691

370

34,062-

34,062

16

150

21

172

(172)

-

1,964

792

33,842

392

34,234(172)

34,062

(71)

124

(699)

(42)

(741)

0

(741)

Mail-orderbusiness

Bridalbusiness

Corporates
business

Sales to customers

30,952

1,964Inter-segment sales

133

-

Total

31,085

Segment profit (loss)(751)

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.
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 loss shown on the quarterly consolidated statements ofincome.

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

(5) Significant Changes in Shareholders’ Equity
Not applicable.
* 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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