Summary of Financial Results for the Second Quarter of Fiscal Year 2009
(Six Months Ended June 30, 2009)
July 30, 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: August 12, 2009
Scheduled date of payment of dividend: September 1, 2009
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the 2nd Quarter of 2009 (January 1, 2009 – June 30, 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
76,30879,211

2Q 2009
2Q 2008%(0.6)

Millions of yen%(474)
1,398 (60.0)

Net income per share

Diluted net income per
share

Yen
15.69
(10.93)Yen-

2Q 2009
2Q 2008

Millions of yen
1,064
313

%
(92.1)

Millions of yen
733
(510)

%
-

(2) Consolidated financial position
Total assets

Net assets

Millions of yen
99,302104,059

2Q 2009
Fiscal Year 2008
Reference: Shareholders’ equity (million yen)

Equity ratio

Millions of yen
46,18644,274

2Q 2009:

Net assets per share
%
46.5
42.5

46,169Yen
988.38947.19Fiscal Year 2008:

44,245

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

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

Yen
8.00
6.00

YearendAnnual

Yen
-

Yen
9.00

Yen
17.00

-

6.00

12.00

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
2,100

Full Year 2009
152,480 (3.7)
1,100 (54.4)
Note: Revision of consolidated outlook during the period: None

-1-

%
-

Millions of yen
1,510

%
-

Yen
32.33

Senshukai Co., Ltd. (8165) Financial Report for the Second 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)
2Q 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
2Q 2009:918,677 shares

3) Average number of shares outstanding during the period
2Q 2009:46,712,132 shares

2Q 2008:

46,714,118 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”(Accounting Standards Board of Japan (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 inaccordance 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 andPreparation Methods of Financial Statements” (Cabinet Office Ordinance No. 50, August 7, 2008).

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

Qualitative Information and Financial Statements
1. Qualitative Information Regarding Consolidated Results of Operations
The Japanese economy in the second quarter (January 1, 2009 to June 30, 2009) of the current fiscal year showedsome signs that the downturn was easing due to benefits from the government’s economic stimulus measures
including fixed cash handouts and the provision of “eco-points” for the purchase of energy-efficient “green”
household appliances, and partial signs of recovery in production and stocks, but the outlook for a recovery inbusiness sentiment remained uncertain due to real deterioration in household spending and the jobs-to-applicantsratio. This suggests it will take some time for personal consumption to recover. Conditions are forecast to remain
weak in the retail industry going forward as consumer sentiment continues to stagnate as consumers hold back onpurchases and shift to low-priced items on declines in summer bonuses and a harsh employment environment.
In this environment, the Senshukai Group pulls together in the second year of its medium-term management plan toachieve the targets of its plan which concludes in Fiscal Year 2010.
In the second quarter, Internet sales in the mail-order business rose 5.6% year-over-year due to the implementationof policies to expand Internet sales, but sales across most catalog media fell short of the Group’s forecasts asincreasingly thrifty consumers held back on purchases, and competition intensified in the mail-order and specialty
retail industries due to consumers’ greater preference for low priced-items.
Consolidated net sales decreased 3.7% year-over-year to 76,308 million yen in the second quarter of the fiscal year.
In terms of profits, operating losses totaled 474 million yen in the second quarter of the current fiscal year,
compared with a gain of 1,398 million yen in the second quarter of last fiscal year, due to a decline in the grossprofit margin from a decline in net sales and an increase in valuations losses from a change in the valuation of
inventories. Ordinary income increased 239.7% year-over-year to 1,064 million yen, due to the booking of foreignexchange gains. Net income was 733 million yen compared with a loss of 510 million yen in the second quarter oflast fiscal year.
Segment information(Mail-order Business)
Consolidated sales in the mail-order business, which comprises the catalog and the hanpukai businesses, decreased
7.3% year-over-year to 68,396 million yen in the second quarter as sales declined in the catalog business due tolackluster consumption, and in the hanpukai business due to a decline in members.
In terms of profits, operating income declined from a 1,618 million yen profit in the previous second quarter to a
453 million yen loss in the current second quarter due to a rise in the cost-to-sales ratio following a change in thevaluation of inventories.
(1) Catalog business
Internet orders account for more than 50% of sales in the catalog business, and the Group continues to promote a
shift from catalogs to the Internet. The Group will continue to focus on increasing Internet orders via affiliates and
SEO policies. Consolidated sales in the catalog business decreased 7.1% year-over-year to 62,758 million yen.
(2) Hanpukai businessTo win new customers to the hanpukai business, the Group introduces hanpukai to users of its office vending box(Choko Tabe BOX). Consolidated sales in the hanpukai business declined 9.8% year-over-year to 5,637 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 46.4% year-over-year to 7,911
million yen. Operating losses declined 184 million yen to 63 million yen.
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Senshukai Co., Ltd. (8165) Financial Report for the Second Quarter of Fiscal Year 2009

Year-over-year changes in value and percentage terms are included as reference given differences in applied
accounting standards.
2. Qualitative Information Regarding Consolidated Financial Position(Balance sheet position)
Assets totaled 99,302 million yen at the end of the second quarter of the current fiscal year, down 4,756 million yen
from the end of the previous fiscal year.
Current assets decreased 4,288 million yen to 45,710 million yen. The main factors were decreases of 1,710 million
yen in merchandise and finished goods, 1,643 million yen in accounts receivable-other and 1,042 million yen inother. Fixed assets decreased 468 million yen to 53,592 million yen, mainly due to decreases in property andequipment of 16 million yen, intangible assets of 73 million yen, and investments and other assets of 377 million
yen.
Current liabilities decreased 15,703 million yen to 38,449 million yen. The main factors were decreases of 7,095
million yen in forward exchange contracts, 7,034 million yen in short-term bank loans, and 1,537 million yen inother. Long-term liabilities increased 9,034 million yen to 14,666 million yen, mainly due to increases in long-term
debt of 5,103 million yen and corporate bonds of 4,267 million yen.
Net assets increased 1,912 million yen to 46,186 million yen. The main factors were increases in deferred hedge
gains (losses) of 1,006 million yen, net unrealized gains on available-for-sale securities of 578 million yen andretained earnings of 312 million yen. Consequently, the equity ratio was 46.5%.
(Cash flow position)
The balance of cash and cash equivalents at the end of the second quarter of the current fiscal year was 8,003
million yen, a decrease of 183 million yen from the end of the previous fiscal year.
Operating activities used net cash of 1,767 million yen. The main contributing factor was a 2,370 million yen
decrease in other current assets, a 1,732 million yen decrease in inventories, depreciation expenses of 1,227 million
yen, and income before income taxes and minority interests of 949 million yen. Negative factors included 3,760
million yen payment for cancellation of derivative contracts, foreign exchange gains of 1,573 million yen, a 1,395
million yen decrease in notes and accounts payable-trade, and a 1,129 million yen decrease in other current
liabilities.
Investing activities used net cash of 1,086 million yen. The main cash inflow was a 200 million yen decrease in time
deposits. The main cash outflows were 925 million yen for purchases of property and equipment and 340 million
yen for purchases of intangible assets.
Financing activities provided net cash of 2,472 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, repayments of long-term debt of 1,130 million yen and cash dividends paid of 420
million yen.
3. Qualitative Information Regarding Consolidated Outlook
The Group expects price competition among companies in different industries to intensify going forward, eventhough the worst is said to be over for some Japanese manufacturing sectors since last autumn’s downturn, at leastaccording to the data, because consumption remains stagnant due to lingering concerns about weakness in theoverall economy.
As we announced on July 17, 2009, we forecast Fiscal 2009 sales of 152,480 million yen, down 5,805 million yen
over the previous fiscal year, operating income of 1,100 million yen, ordinary income of 2,100 million yen, and net
income of 1,510 million yen.

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Senshukai Co., Ltd. (8165) Financial Report for the Second 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 second quarter of the current fiscal year was found not to besignificantly different from the ratio at the end of the previous fiscal year.
2) 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.
3) 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” (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).
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).

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

As an effect of this change, operating income, ordinary income and income before income taxes and minority
interests each decreased by 1,048 million yen. 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.

-6-Senshukai Co., Ltd. (8165) Financial Report for the Second Quarter of Fiscal Year 2009

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

2Q 2009(As of Jun. 30, 2009)
AssetsCurrent assets
Cash and deposits

7,781

7,670

Notes and accounts receivable-trade

11,211

10,888223

524

Marketable securities
Merchandise and finished goods

14,68916,400Raw materials and supplies

98

97

Accounts receivable-other

6,385

8,028

Other

5,662

6,705

Allowance for doubtful accounts

(341)

(316)

Total current assets

45,71049,998

Buildings and structures, net

14,837

15,059Land

11,168

11,168Fixed assets
Property and equipment

Other, net

2,513

2,308

Total property and equipment

28,51928,536

Intangible assets
Goodwill

2,885

2,963

Other

2,505

2,502

Total intangible assets

5,391

5,465

Investment securities

11,894

11,368

Other

7,928

8,893

Allowance for doubtful accounts

(142)

(203)

Investments and other assets

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

19,68020,05853,59254,06099,302104,059

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

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

2Q 2009(As of Jun. 30, 2009)
Liabilities
Current liabilities
Notes and accounts payable-trade

7,144

8,527

Short-term bank loans

2,923

9,957

Current portion of corporate bonds

766

66

16,256

15,789Accrued income taxes

325

194

Allowance for sales promotion expenses

393

346

2,692

9,788

Accounts payable-factoring

Forward exchange contracts
Other

7,946

9,484

Total current liabilities

38,44954,153

Corporate bonds

4,435

168

Long-term debt

9,215

4,112

Long-term liabilities

Liabilities for employees’ retirement benefits

52

45

Other

963

1,305

Total long-term liabilities
Total liabilities

14,666

5,631

53,11559,784

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

21,03821,038Retained earnings

14,376

14,064

Treasury stock

(632)

(631)

Total shareholders’ equity

55,142

54,830

Valuation and translation adjustments
Net unrealized gains on available-for-sale securities(733)(1,312)

Deferred hedge gains (losses)(1,031)(2,038)Land revaluation difference(7,103)(7,103)Foreign currency translation adjustments

(104)

(130)

Total valuation and translation adjustments(8,973)(10,584)

Minority interests
Total net assets
Total liabilities and net assets

-8-

17

29

46,18644,27499,302104,059

Senshukai Co., Ltd. (8165) Financial Report for the Second Quarter of Fiscal Year 2009(2) Quarterly Consolidated Statements of Income(For the Six-month Period)(Million yen)
2Q 2009(Jan. 1, 2009 – Jun. 30, 2009)
Net sales

76,308

Cost of sales

40,510Gross profit

35,797

Selling, general and administrative expenses

36,272

Operating loss

(474)

Other income
Interest income

58

Dividend income

93

Gains on valuation of compound financial instruments

61

Foreign exchange gains

1,531

Other

173

Total other income

1,917

Other expenses
Interest expenses

150

Investment loss on equity method

34

Bond issuance cost

127

Other

65

Total other expenses

378

Ordinary income

1,064

Extraordinary losses
Losses on sales and disposal of fixed assets

16

Losses on valuation of investment securities

43

Impairment loss

54

Total extraordinary losses

114

Income before income taxes and minority interests

949

Income taxes

252

Minority interests in loss

(35)

Net income

733

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Senshukai Co., Ltd. (8165) Financial Report for the Second Quarter of Fiscal Year 2009(3) Quarterly Consolidated Statements of Cash Flows(Million yen)
2Q 2009(Jan. 1, 2009 – Jun. 30, 2009)
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation expenses
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in allowance for sales promotion expenses
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Investment loss (profit) on equity method
Losses (gains) on valuation of compound financial instruments
Bond issuance cost
Losses (gains) on sales and disposal of fixed assets
Losses (gains) on valuation of investment securities
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other current liabilities
Other

949
1,227
54
(35)
47
(151)
150
(1,573)
34
(61)
127
16
43
(295)
1,732
2,370
(1,395)
3(1,129)(278)

Subtotal

1,837Interests and dividends received
Interests paid
Payment for cancellation of derivative contracts
Income taxes (paid) refund

180
(100)
(3,760)75

Net cash used in operating activities(1,767)

Cash flows from investing activities
Purchases of property and equipment
Purchases of intangible assets
Purchases of investment securities
Decrease (increase) in time deposits
Purchases of subsidiary stock
Other

(925)
(340)
(25)
200
(65)
69

Net cash used in investing activities(1,086)

Cash flows from financing activities
Net increase (decrease) in short-term bank loans
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of bonds
Redemption of corporate bonds
Purchases of treasury stock
Proceeds from sales of treasury stock
Cash dividends paid

(8,000)7,184(1,130)
4,872
(33)
(0)
0
(420)

Net cash provided by financing activities

2,472

Effect of exchange rate change on cash and cash equivalents

2

Increase (decrease) in cash and cash equivalents(378)

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

8,186
195

Cash and cash equivalents at end of period

8,003- 10 -

Senshukai Co., Ltd. (8165) Financial Report for the Second 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
2Q 2009 (Jan. 1, 2009 – Jun. 30, 2009)(Million yen)
Mail-orderbusiness

Other businesses

Total

Elimination or
corporate

Consolidated

Net sales(1) Sales to customers

68,396

7,911

76,308-76,308(2) Inter-segment sales

684

715

1,399

(

1,399)-

Total

69,0808,627

77,708(1,399)

76,308Operating loss

(453)

(63)

(516)

42

(474)

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 current fiscal year. As an effect of this change, operating income in the mail-order business decreased by 1,048
million yen in the second quarter of the fiscal year. There is no effect on other businesses.

Geographical segment information
2Q 2009 (Jan. 1, 2009 – Jun. 30, 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
2Q 2009 (Jan. 1, 2009 – Jun. 30, 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 Second Quarter of Fiscal Year 2009

Reference Material
Financial Statements, etc. of the Same Period Previous Fiscal Year
(1) Consolidated Statements of Income(Million yen)
2Q 2008(Jan. 1, 2008 – Jun. 30, 2008)

Accounts

AmountI

Net sales

79,211II

Cost of sales

40,898Gross profit

38,312

III Selling, general and administrative expenses

36,914

Operating income

1,398

IV Other income

417

Interest income

156

Dividend income

94

Other
V

166

Other expenses

1,502Interest expenses

56

Foreign exchange losses

898

Losses on write-down of compound financial instruments

248

Other

298

Ordinary income

313

VI Extraordinary income

4

VII Extraordinary losses

33

Income before income taxes and minority interests

285

Income taxes

789

Minority interests

6

Net loss(510)- 12 -

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

(2) Consolidated Statements of Cash Flows(Million yen)
2Q 2008(Jan. 1, 2008 – Jun. 30, 2008)
AmountAccounts
I Cash flows from operating activities
Income before income taxes and minority interests

285

Depreciation expenses

914

Decrease in allowance for doubtful accounts(97)

Increase in liabilities for employees’ retirement benefits

2

Increase in allowance for sales promotion expenses

143

Interest and dividend income(251)Interest expenses

56

Investment loss on equity method

183

Losses on write-down of compound financial instruments

248

Gains on sales of fixed assets(4)

Losses on sales and disposal of fixed assets

20

Losses on valuation of investment securities

12

Increase in notes and accounts receivable-trade(1,212)

Decrease in inventories

3,433

Decrease in other current assets

3,208

Decrease in notes and accounts payable-trade(4,011)

Increase in accrued consumption taxes

218

Decrease in other current liabilities(1,767)

Other

746

Subtotal

2,129Interests and dividends received

243

Interests paid

(58)

Income taxes paid

(1,881)

Net cash provided by operating activities

432

II Cash flows from investing activities
Purchases of property and equipment(1,178)Proceeds from sales of property and equipment

7

Purchases of intangible assets(277)

Purchases of investment securities(1,763)Purchases of subsidiary stock associated with changes in the scope of consolidation(2,297)

Increase in time deposits(1,000)

Other

377

Net cash used in investing activities(6,132)

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

3,500

Proceeds from long-term debt

5,032

Cash dividends paid

(652)

Other

(0)

Net cash provided by financing activities

7,879

IV Increase in cash and cash equivalents

2,179

V Cash and cash equivalents at beginning of period

3,526

VI Cash and cash equivalents at end of period

5,706* 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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