Summary of Financial Results for the First Quarter of Fiscal Year 2009
(Three Months Ended March 31, 2009)
April 24, 2009

Company name: Senshukai Co., Ltd.

Stock Exchanges: Tokyo and Osaka, First Sections
Stock Code:8165
URL: http://www.senshukai.co.jp
Representative:
Mr. Yasuhiro Yukimachi, President and Representative Director
Inquiries:
Mr. Michio Tanabe, Senior Managing Director
Tel: +81-6-6881-3100
Scheduled date of filing of Quarterly Report: May 15, 2009
Scheduled date of payment of dividend: (All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the 1st Quarter of 2009 (January 1, 2009 – March 31, 2009)(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

1Q 2009
1Q 2008%

35,617
37,467(2.3)

Millions of yen(1,960)524%

Net income per share

Diluted net income per
share

Yen

Yen

(16.30)(94.82)-

1Q 2009
1Q 2008

Millions of yen%

Millions of yen

%

(526)
(3,883)-(761)(4,429)-(74.5)(2) Consolidated financial position
Total assets

Net assets

Millions of yen

1Q 2009
99,798
Fiscal Year 2008
104,059
Reference: Shareholders’ equity (million yen)

Equity ratio

Net assets per share

Millions of yen%

44,43444,274
1Q 2009:

Yen

44.5
42.5
Fiscal Year 2008:

44,428951.11
947.1944,245

2. Dividends(Record date)1Q-endDividend per share
3Q-end2Q-endYen

Yen

Yearend

Yen

Full Year 2008
8.00
Full Year 2009
Full Year 2009 (forecasts)
8.00
Note: Revision of dividend forecast during the period: None

Annual
Yen

Yen

-

9.00

17.00

-

9.00

17.00

3. Consolidated Outlook for Fiscal Year 2009 (January 1, 2009 – December 31, 2009)
Net sales
Millions of yen(Percentages represent changes from the same period of the previous fiscal year)
Net income per
Operating income
Ordinary income
Net income
share% Millions of yen% Millions of yen

2Q 2009 (cumulative)
82,0001,300
Full Year 2009
162,500 2.7
3,200 32.6
Note: Revision of consolidated outlook during the period: None

-1-

1,400
3,400

% Millions of yen

%

Yen

-

-

20.77
58.87

970
2,750

Senshukai Co., Ltd. (8165) Financial Report for the First Quarter of Fiscal Year 2009

4. Other(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
(2) Application of simplified accounting methods and special accounting methods in the preparation of quarterly
consolidated financial statements: Yes
Note: Please refer to “Qualitative Information and Financial Statements, 4. Others” on page 5 for further information.

(3) Changes in accounting principles, procedures and presentation methods for preparation of quarterly consolidated
financial statements
1) Changes caused by revision of accounting standards: Yes
2) Other changes: Yes
Note: Please refer to “Qualitative Information and Financial Statements, 4. Others” on pages 5 and 6 for further
information.

(4) Number of shares outstanding (common shares)
1) Number of shares outstanding at end of period (including treasury stock)
1Q 2009:47,630,393 sharesFiscal Year 2008:

47,630,393 sharesFiscal Year 2008:

917,908 shares

2) Number of treasury stock at end of period
1Q 2009:918,290 shares

3) Average number of shares outstanding during the period
1Q 2009:46,712,357 shares

1Q 2008:

46,714,209 shares*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 page4, “Qualitative Information and Financial Statements, 3.Qualitative Information Regarding Consolidated Outlook.”- Effective from the current fiscal year, the Company has adopted “Accounting Standards for Quarterly Financial Statements”(ASBJ Statement No. 12) and “Guidance on Accounting Standards for Quarterly Financial Statements” (ASBJ Guidance No.
14). In addition, the quarterly consolidated financial statements are prepared in accordance with “Regulations for Quarterly
Consolidated Financial Statements”. The Company has adopted the amended Regulations for Quarterly Consolidated Financial
Statements, pursuant to the proviso of Article 7, Paragraph 1, Item 5 of the Supplementary Provision of the “Cabinet Office
Ordinance Partially Revising Regulation for Terminology, Forms and Preparation Methods of Financial Statements” (Cabinet
Office Ordinance No. 50, August 7, 2008).

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Senshukai Co., Ltd. (8165) Financial Report for the First Quarter of Fiscal Year 2009

Qualitative Information and Financial Statements
1. Qualitative Information Regarding Consolidated Results of Operations
The Japanese economy continued to deteriorate in the first quarter (January-March 2009) as the global recession
spilled over from last year and combined with the financial crisis to weigh on stocks, and cause a slump in corporate
profits. The retail industry suffered from a contraction in personal spending as consumers adopted a more defensive
stance toward spending and became more thrifty as the environment for employment and income deteriorated. Pricecompetition intensified as retailers sought to meet the low-price needs of consumers in an environment ofdeteriorating consumer sentiment and escalating competition across industries and business formats, and together
with poor weather, the outlook for the retail industry remained harsh and uncertain.
In this environment, the Senshukai Group will pull together in the second year of its medium-term management planto achieve the targets of its plan which concludes in Fiscal Year 2010.
Consolidated net sales decreased 4.9% year-over-year to 35,617 million yen in the fiscal year of the current fiscal
year.
In terms of profits, operating income declined from a 524 million yen profit in the previous first quarter, to a 1,960
million yen loss in the current first quarter, due to a rise in the cost-to-sales ratio following a change in the valuationof inventories, and a rise in the SG&A-to-sales ratio following an increase in personnel and other expenses
accompanying the consolidation of a new subsidiary. However, this was roughly in line with the Company’s initial
forecast.
Ordinary losses narrowed 3,356 million yen year-over-year to 526 million yen in the first quarter of the current
fiscal year, due to the booking of foreign exchange gains and a decline in losses on write-down of compound
financial instruments. Net losses narrowed 3,667 million yen year-over-year to 761 million yen.
Segment information
Mail-order Business
Consolidated sales in the mail-order business, which comprises the catalog and the hanpukai businesses, decreased
7.5% year-over-year to 32,215 million yen in the first quarter as sales declined in the hanpukai business due to a
decline in members, and in the catalog business due to lackluster consumption.
In terms of profits, operating income declined from a 679 million yen profit in the previous first quarter to a 1,679
million yen loss in the current first quarter due to a rise in the cost-to-sales ratio following a change in the valuationof inventories.
1) Catalog business
Consolidated sales in the catalog business decreased 7.6% year-over-year to 29,449 million yen.
2) Hanpukai business
Consolidated sales in the hanpukai business declined 7.2% year-over-year to 2,765 million yen.
Other Businesses
The “other businesses” segment consists of the services business which primarily offers travel and credit card
services, the storefront business, the pet business, the corporates business which provides products and services tocorporations, and wedding business. Consolidated sales in this segment increased 29.7% year-over-year to 3,401
million yen, but operating losses expanded 131 million yen to 282 million yen.
Year-over-year changes in value and percentage terms are included as reference given differences in applied
accounting standards.

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Senshukai Co., Ltd. (8165) Financial Report for the First Quarter of Fiscal Year 2009

2. Qualitative Information Regarding Consolidated Financial Position
Balance sheet position
Assets totaled 99,798 million yen at the end of the first quarter of the current fiscal year, down 4,261 million yen
from the end of the previous fiscal year.
Current assets decreased 3,215 million yen to 46,782 million yen. The main factors were an increase in notes andaccounts receivable-trade of 848 million yen, while cash and deposits and accounts receivable-other decreased 2,320
million yen and 1,858 million yen, respectively. Fixed assets decreased 1,045 million yen to 53,015 million yen,mainly due to increases in property and equipment of 80 million yen and intangible assets of 44 million yen, while
there was a decrease in investments and other assets of 1,170 million yen.
Current liabilities decreased 14,585 million yen to 39,567 million yen. The main factors were decreases in forward
exchange contracts of 7,660 million yen and short-term bank loans of 7,097 million yen. Long-term liabilities
increased 10,164 million yen to 15,796 million yen, mainly due to increases in long-term debt of 6,200 million yen
and corporate bonds of 4,300 million yen.
Net assets increased 159 million yen to 44,434 million yen. The main factors were a decrease in retained earnings of
1,181 million yen, while deferred hedge gains (losses) increased 1,209 million yen and net unrealized gains onavailable-for-sale securities increased in 119 million yen. Consequently, the equity ratio was 44.5%.
Cash flow position
The balance of cash and cash equivalents at the end of the first quarter was 5,612 million yen, a decrease of 2,574
million yen from the end of the previous fiscal year.
Operating activities used net cash of 5,798 million yen. The main contributing factor was a 1,301 million yen
decrease in other current assets. Negative factors included 3,760 million yen payment for cancellation of derivative
contracts, foreign exchange gains of 1,802 million yen, an 879 million yen decrease in other current liabilities, andloss before income taxes and minority interests of 863 million yen.
Investing activities used net cash of 544 million yen. The main cash outflows were 313 million yen for purchases ofproperty and equipment and 163 million yen for purchases of intangible assets.
Financing activities provided net cash of 3,565 million yen. The main cash inflows were proceeds from long-term
debt of 7,184 million yen and issuance of bonds of 4,872 million yen, while there were net decrease in short-termbank loans of 8,000 million yen and cash dividends paid of 393 million yen.

3. Qualitative Information Regarding Consolidated Outlook
The Company expects the business environment to remain harsh in Fiscal Year 2009 due to a deceleration inpersonal consumption from further deterioration in the economy, and concerns over poor weather. It thinks it canachieve its initial consolidated forecasts for the current fiscal year (January-December 2009), released when it
announced Fiscal Year 2008 results, as first-quarter consolidated results trended in line with its plan.
It also expects to achieve its non-consolidated forecasts for the same reason.

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Senshukai Co., Ltd. (8165) Financial Report for the First Quarter of Fiscal Year 2009

4. Others(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation)
Not applicable.
(2) Application of simplified accounting methods and special accounting methods in the preparation of quarterly
consolidated financial statements(Simplified accounting methods)
1) Method for estimating the uncollectible amount of general reserve
The uncollectible amount of general reserve was estimated using the historical default rates at the end of theprevious fiscal year as the ratio at the end of the first quarter of the current fiscal year was found not to besignificantly different from the ratio at the end of the previous fiscal year.
2) Valuation of inventories
For inventories at the end of the first quarter of the current fiscal year, a valuation was determined by using areasonable method based on actual inventories at the end of the previous fiscal year. No physical inventory count
was performed.
For inventory write-down is based on the current net sales value of items on which profit margins have declined
significantly.
3) Calculation of depreciation expense for fixed assets
For assets subject to the declining-balance method, depreciation expense for the period is calculated pro rata fromthe full-year amount of depreciation expense for the fiscal year.
4) Judgments about the recoverability of deferred tax assets
Judgments about the recoverability of deferred tax assets are made based on the earnings forecast at the end of theprevious fiscal year and tax planning with regard to items where there have been no significant changes in theoperating environment or in the occurrence of temporary differences following the end of the previous fiscal year.
(Special accounting methods in the preparation of quarterly consolidated financial statements)
The tax expenses were calculated by first estimating the effective tax rate after the application of tax effectaccounting with respect to income before income taxes during the fiscal year, and multiplying that rate by thequarterly income before income taxes. 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. Deferred income taxes
were included and displayed with income taxes.
(3) Changes in accounting principles, procedures and presentation methods for preparation of quarterly consolidated
financial statements
1) Application of “Accounting Standards for Quarterly Financial Statements”
Effective from the current fiscal year, the Company has adopted “Accounting Standards for Quarterly Financial
Statements” (Accounting Standards Board of Japan (“ASBJ”) Statement No. 12) and “Guidance on AccountingStandards for Quarterly Financial Statements” (ASBJ Guidance No. 14). In addition, the quarterly consolidated
financial statements are prepared in accordance with “Regulations for Quarterly Consolidated Financial Statements”.
The Company has adopted the amended Regulations for Quarterly Consolidated Financial Statements, pursuant to
the proviso of Article 7, Paragraph 1, Item 5 of the Supplementary Provision of the “Cabinet Office OrdinancePartially Revising Regulation for Terminology, Forms and Preparation Methods of Financial Statements” (Cabinet
Office Ordinance No. 50, August 7, 2008).

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Senshukai Co., Ltd. (8165) Financial Report for the First Quarter of Fiscal Year 2009

2) Application of “Accounting Standards for Measurement of Inventories”
In prior years, inventories for regular sales purposes were stated at the lower of cost, determined by the monthly
average method, or market. With the adoption of “Accounting Standards for Measurement of Inventories” (ASBJ
Statement No. 9) from the first quarter of the current fiscal year, inventories are stated at cost determined by themonthly average method (the carrying value on the balance sheet is written down to reflect the effect of lower profit
margins).
As an effect of this change, operating loss increased by 960 million yen, and ordinary income and income before
income taxes and minority interests each decreased by the same amount. The effect of these changes on segment
operations is shown in the Segment Information section.
3) Application of “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements”
Effective from the first quarter of the current fiscal year, the Company has adopted “Practical Solution on
Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements” (ASBJ
Practical Issue Task Force (“PITF”) No. 18).
This change has no effect on the amount of income.
4) Application of “Accounting Standards for Lease Transactions”
In prior years, the Company accounted for finance leases where there is no transfer of ownership as ordinary
operating leases for accounting purposes. However, the Company is able to use the following accounting standards
beginning with quarterly consolidated financial statements for fiscal years starting on or after April 1, 2008:“Accounting Standards for Lease Transactions” (ASBJ Statement No. 13); and “Guidance on Accounting Standards
for Lease Transactions” (ASBJ Guidance No. 16). The Company has adopted these standards and guidance
beginning with the first quarter of the current fiscal year, using an accounting method for leases that is based on themethod used for ordinary purchases and sales. Furthermore, for the depreciation of lease assets associated withfinance leases where there is no transfer of ownership, the straight-line method with no residual value is appliedwith the lease period used as the useful life of the asset.
For finance leases where there is no transfer of ownership that started prior to the fiscal year when these standards
were first applied, the Company continues to use an accounting method that is based on the method used forordinary lease transactions.
This change has no effect on the amount of income.
(Supplemental information)
1) Change in useful lives of property and equipment
Effective from the first quarter of the current fiscal year, the Company and its domestic consolidated subsidiaries
have reviewed the useful lives of machinery, etc. as a result of revision to the Corporate Tax Law and consequently
have revised the useful lives as stipulated in the revised law.
This change has no significant effect on the amount of income.
2) Abolishment of the retirement benefit system for directors and corporate auditors
The Board of Directors resolved at a meeting held on January 29, 2009 to abolish the Company’s retirement benefit
system for directors and corporate auditors, and shareholders resolved at their annual general meeting held on
March 27, 2009 to pay current directors and corporate auditors, upon retirement, a lump sum for their term ofservice up through the day of abolishment of the system. Consolidated subsidiaries have also abolished theretirement benefit system for directors and corporate auditors. As a result, the Company has drawn down the entirebalance of liabilities for retirement benefits for directors and corporate auditors, and booked the unpaid amount in
the “Other” account of current liabilities at the end of the first quarter of the current fiscal year.

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5. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Million yen)
Fiscal Year 2008 Summary(As of Dec. 31, 2008)

1Q 2009(As of Mar. 31, 2009)
AssetsCurrent assets
Cash and deposits

5,350

7,670

Notes and accounts receivable-trade

11,736

10,888267

524

Marketable securities

16,215

16,400Raw materials and supplies

Merchandise and finished goods

110

97

Accounts receivable-other

6,170

8,028

Other

7,238

6,705

Allowance for doubtful accounts

(306)

(316)

Total current assets

46,782

49,998

Buildings and structures, net

14,90915,059Land

11,168

11,168Fixed assets
Property and equipment

Other, net

2,539

2,308

Total property and equipment

28,61728,536

Intangible assets
Goodwill

2,961

2,963

Other

2,548

2,502

Total intangible assets

5,509

5,465

Investment securities

10,933

11,368

Other

8,156

8,893

Allowance for doubtful accounts

(200)

(203)

Investments and other assets

Total investments and other assets
Total fixed assets
Total assets-7-

18,88820,05853,01554,06099,798104,059

Senshukai Co., Ltd. (8165) Financial Report for the First Quarter of Fiscal Year 2009

(Million yen)
Fiscal Year 2008 Summary(As of Dec. 31, 2008)

1Q 2009(As of Mar. 31, 2009)
Liabilities
Current liabilities
Notes and accounts payable-trade

8,826

8,527

Short-term bank loans

2,859

9,957

Current portion of corporate bonds

766

66

14,502

15,789Accrued income taxes

73

194

Allowance for sales promotion expenses

374

346

2,127

9,788

Accounts payable-factoring

Forward exchange contracts
Other

10,037

9,484

Total current liabilities

39,56754,153

Corporate bonds

4,468

168

Long-term debt

10,312

4,112

Long-term liabilities

Liabilities for employees’ retirement benefits

44

45

Other

971

1,305

Total long-term liabilities
Total liabilities

15,796

5,631

55,36359,784

20,35920,359Net assets
Shareholders’ equity
Common stock
Capital surplus

21,03821,038Retained earnings

12,882

14,064

Treasury stock

(632)

(631)

Total shareholders’ equity

53,64854,830

Valuation and translation adjustments
Net unrealized gains on available-for-sale securities(1,192)(1,312)

Deferred hedge gains (losses)(828)(2,038)Land revaluation difference(7,103)(7,103)Foreign currency translation adjustments

(95)

(130)

Total valuation and translation adjustments(9,220)(10,584)

Minority interests
Total net assets
Total liabilities and net assets

-8-

6

29

44,43444,274

99,798104,059

Senshukai Co., Ltd. (8165) Financial Report for the First Quarter of Fiscal Year 2009(2) Quarterly Consolidated Statements of Income(For the Three-month Period)(Million yen)
1Q 2009(Jan. 1, 2009 – Mar. 31, 2009)
Net sales

35,617

Cost of sales

19,809Gross profit

15,807

Selling, general and administrative expenses

17,767

Operating loss

(1,960)

Other income
Interest income

30

Dividend income1

Foreign exchange gains

1,733

Other

55

Total other income

1,820

Other expenses
Interest expenses

63

Losses on write-down of compound financial instruments

137

Investment loss on equity method

17

Bond issuance cost

127

Other

41

Total other expenses

387

Ordinary loss

(526)

Extraordinary losses
Losses on sales and disposal of fixed assets

6

Losses on write-down of investment securities

331

Total extraordinary losses

337

Loss before income taxes and minority interests(863)

Income taxes(55)

Minority interests in loss

(47)

Net loss

(761)

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Senshukai Co., Ltd. (8165) Financial Report for the First Quarter of Fiscal Year 2009(3) Quarterly Consolidated Statements of Cash Flows(Million yen)
1Q 2009(Jan. 1, 2009 – Mar. 31, 2009)
Cash flows from operating activities
Loss before income taxes and minority interests(863)

Depreciation expenses

597

Increase (decrease) in allowance for doubtful accounts(11)

Increase (decrease) in allowance for sales promotion expenses

27

Interest and dividend income(32)Interest expenses

63

Foreign exchange losses (gains)(1,802)

Investment loss (profit) on equity method

17

Losses (gains) on write-down of compound financial instruments

137

Bond issuance cost

127

Losses (gains) on sales and disposal of fixed assets

6

Losses (gains) on write-down of investment securities

331

Decrease (increase) in notes and accounts receivable-trade(820)

Decrease (increase) in inventories

195

Decrease (increase) in other current assets

1,301

Increase (decrease) in notes and accounts payable-trade285

Increase (decrease) in accrued consumption taxes(160)

Increase (decrease) in other current liabilities

(879)

Other

(340)

Subtotal(1,820)Interests and dividends received

62

Interests paid

(43)

Payment for cancellation of derivative contracts(3,760)

Income taxes paid

(236)

Net cash used in operating activities(5,798)Cash flows from investing activities
Purchases of property and equipment(313)

Purchases of intangible assets(163)

Purchases of investment securities(25)

Purchases of subsidiary stock

(65)

Other

23

Net cash used in investing activities(544)

Cash flows from financing activities
Net increase (decrease) in short-term bank loans(8,000)

Proceeds from long-term debt

7,184

Repayments of long-term debt

(97)

Proceeds from issuance of bonds

4,872

Purchases of treasury stock(0)

Proceeds from sales of treasury stock0

Cash dividends paid

(393)

Net cash provided by financing activities

3,565

Effect of exchange rate change on cash and cash equivalents

7

Increase (decrease) in cash and cash equivalents(2,769)Cash and cash equivalents at beginning of period

8,186

Increase in cash and cash equivalents due to consolidation of subsidiary
Cash and cash equivalents at end of period

195
5,612

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Senshukai Co., Ltd. (8165) Financial Report for the First Quarter of Fiscal Year 2009

Effective from the current fiscal year, the Company has adopted “Accounting Standards for Quarterly Financial
Statements” (ASBJ Statement No. 12) and “Guidance on Accounting Standards for Quarterly Financial Statements”(ASBJ Guidance No. 14). In addition, the quarterly consolidated financial statements are prepared in accordancewith “Regulations for Quarterly Consolidated Financial Statements”. The Company has adopted the amended
Regulations for Quarterly Consolidated Financial Statements, pursuant to the proviso of Article 7, Paragraph 1, Item
5 of the Supplementary Provision of the “Cabinet Office Ordinance Partially Revising Regulation for Terminology,
Forms and Preparation Methods of Financial Statements” (Cabinet Office Ordinance No. 50, August 7, 2008).
(4) Going Concern Assumption
Not applicable.
(5) Segment Information
Business segments
1Q 2009 (Jan. 1, 2009 – Mar. 31, 2009)(Million yen)
Mail-orderbusiness

Other businesses

Total

Elimination or
corporate

Consolidated

Net sales(1) Sales to customers

32,2153,401

35,617-35,617(2) Inter-segment sales

293

389

683

(

683)

-

Total

32,5093,791

36,300(683)

35,617

Operating loss

(1,679)(282)(1,962)

2(1,960)Notes: 1. The classification of business segments is based on categories adopted for internal management purposes.
2. Principal activities of each business segment(1) Mail-order business: Catalog and hanpukai businesses(2) Other businesses: Product sales, services, and transportation
3. Change in accounting policy
Accounting standards for measurement of inventories
As stated in “Qualitative Information and Financial Statements, 4. Others, (3) Changes in accounting principles,
procedures and presentation methods for preparation of quarterly consolidated financial statements, 2), “AccountingStandards for Measurement of Inventories” (ASBJ Statement No. 9) has been adopted with effect from the first quarterof the first quarter of the current fiscal year. As an effect of this change, operating loss in the mail-order businessincreased by 960 million yen. There is no effect on other businesses.

Geographical segment information
1Q 2009 (Jan. 1, 2009 – Mar. 31, 2009)
Geographic segment information has not been presented because the Company and its consolidated subsidiaries have conducted
over 90% of their total net sales in Japan.

Overseas sales
1Q 2009 (Jan. 1, 2009 – Mar. 31, 2009)
Overseas sales have not been presented because they represented less than 10% of total consolidated sales.

(6) Significant Changes in Shareholders’ Equity
Not applicable.

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Senshukai Co., Ltd. (8165) Financial Report for the First Quarter of Fiscal Year 2009

Reference Material
Financial Statements, etc. of the Same Period Previous Fiscal Year
(1) Consolidated Statements of Income (Summary)(Million yen)
1Q 2008(Jan. 1, 2008 – Mar. 31, 2008)

Accounts

AmountI

Net sales

37,467

II

Cost of sales

19,367Gross profit

18,099III Selling, general and administrative expenses

17,575

Operating income

524

IV Other income

87Interest income

15

Dividend income

1

Other
V

71

Other expenses

4,496Interest expenses

17

Foreign exchange losses

3,855

Losses on write-down of compound financial instruments

577

Other

46

Ordinary loss

(3,883)

VI Extraordinary losses

18

Loss before income taxes and minority interests(3,902)

Income taxes

535

Minority interests in loss

(8)

Net loss(4,429)- 12 -

Senshukai Co., Ltd. (8165) Financial Report for the First Quarter of Fiscal Year 2009

(2) Consolidated Statements of Cash Flows (Summary)(Million yen)
1Q 2008(Jan. 1, 2008 – Mar. 31, 2008)
Accounts
I

AmountCash flows from operating activities
Loss before income taxes and minority interests(3,902)

Depreciation expenses

445

Increase in allowance for sales promotion expenses

110Interest and dividend income(16)Interest expenses

17

Losses on write-down of compound financial instruments
Increase in notes and accounts receivable-trade
Increase in inventories(652)

Decrease in other current assets

1,332

Decrease in notes and accounts payable-trade(1,556)

Decrease in other current liabilities

(189)

Other

3,692

SubtotalII(1,978)Interests and dividends received

59

Interests paid

(23)

Income taxes paid

(1,758)Net cash used in operating activities(3,700)Cash flows from investing activities
Purchases of property and equipment(124)

Purchases of intangible assets(127)

Purchases of investment securities(1,170)

Increase in time deposits

(500)

Other

38

Net cash used in investing activities
III

577(1,836)(1,885)

Cash flows from financing activities
Net increase in short-term bank loans

3,000

Proceeds from long-term debt

3,032

Cash dividends paid

(620)

Other

(0)

Net cash provided by financing activities

5,410

IV

Decrease in cash and cash equivalents

(174)

V

Cash and cash equivalents at beginning of period

3,526

VI

Cash and cash equivalents at end of period

3,351* 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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