Summary of Financial Results for the Third Quarter of Fiscal Year 2013
(Nine Months Ended September 30, 2013)[Japanese GAAP]
October 25, 2013
Company name: Senshukai Co., Ltd.
Stock exchange: Tokyo Stock Exchange, First Section
Stock code:
8165
URL: http://www.senshukai.co.jp
Representative:
Mr. Michio Tanabe, President and Representative Director
Inquiries:
Mr. Hiroyuki Hoshino, Director, Executive Officer,
General Manager of the Corporate Development Division Tel: +81-6-6881-3220
Scheduled date of filing of Quarterly Report: November 13, 2013
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 2013 (January 1, 2013 – September 30, 2013)(1) Consolidated operating results (cumulative)(Percentages represent changes from the same period of the previous fiscal year)
Operating income
Ordinary income
Net income%
Million yen%
Million yen%
Million yen
%
(1.2)
1,575
2,012 490.9
1,190
6.6
127 (88.7)
340 (66.7)(55)
3Q 2013: 2,346 (up 297.6%)
3Q 2012: 590 (down 38.6%)

Net sales
Million yen
3Q 2013
100,954
3Q 2012102,219
Note: Comprehensive income (million yen)

Diluted net income per
share
Yen
Yen
27.49
(1.28)-Net income per share
3Q 2013
3Q 2012(2) Consolidated financial position
Total assets
Million yen
3Q 201392,564
Fiscal Year 2012
92,887
Reference: Shareholders’ equity (million yen) 3Q 2013:

Net assets
Million yen
46,32644,932
46,326Equity ratio

Net assets per share
%
Yen
50.0
1,069.67
48.4
1,037.48
Fiscal Year 2012: 44,932

2. Dividends
1Q-endDividend per share
3Q-end
Yen
Yen
10.00
12.00
-

2Q-endYen-

Year-end

Fiscal Year 2012
Fiscal Year 2013
Fiscal Year 2013 (forecasts)
Note: Revision to the most recently announced dividend forecast: None

Total

Yen
10.00

Yen
20.00

12.00

24.00

3. Consolidated Outlook for Fiscal Year 2013 (January 1, 2013 – December 31, 2013)(Percentages represent changes from the same period of the previous fiscal year)
Net income
Net sales
Operating income
Ordinary income
Net income
per share
Million yen%
Million yen%
Million yen%
Million yen%
Yen
Full Year 2013
144,500
(0.9)
4,000
89.6
4,400 59.1
3,500 72.5
80.82
Note: Revision to the most recently announced consolidated outlook: None

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

(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: Yes
4) Restatements: None
Note: Subject to “Changes in accounting policies that are difficult to distinguish from changes in accounting-based
estimates” since the Company has revised its depreciation method from the first quarter. Please refer to “2. Matters
Related to Summary Information (Notes), (3) Changes in Accounting Policies and Accounting-based Estimates, andRestatements” on page 3 for further information.

(4) Number of shares outstanding (common shares)
1) Number of shares outstanding at end of period (including treasury stock)
3Q 2013:47,630,393 sharesFiscal Year 2012:

47,630,393 sharesFiscal Year 2012:

4,321,445 shares

3Q 2012:43,309,210 shares

2) Number of shares of treasury stock at end of period
3Q 2013:

4,321,785 shares

3) Average number of shares outstanding during the period
3Q 2013:43,308,820 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, “1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Qualitative Information Regarding
Consolidated Outlook.”Senshukai Co., Ltd. (8165) Financial Report for the Third Quarter of Fiscal Year 2013

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)

3(1) Changes in Significant Subsidiaries during the Period

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

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

3

3. Quarterly Consolidated Financial Statements

4(1) Quarterly Consolidated Balance Sheets

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

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

6

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

7(3) Going Concern Assumption

8(4) Significant Changes in Shareholders’ Equity

8(5) Segment and Other Information

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Senshukai Co., Ltd. (8165) Financial Report for the Third Quarter of Fiscal Year 2013

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Qualitative Information Regarding Consolidated Results of Operations
In the cumulative third quarter (January 1, 2013 to September 30, 2013) of the current fiscal year, businesssentiment in the Japanese economy continued to gradually recover as the rebound in share prices bolsteredconsumption of some luxury items, and the manufacturing sector's earnings recovery drove an increase in capital
expenditures. However, the outlook for the domestic economy remained unclear due to rising raw materials prices
and a hike in electricity rates.
In this environment, the Senshukai Group pulled together to achieve the targets of its medium-term management
plan which concludes in this fiscal year.
Net sales in the cumulative third quarter decreased 1.2% year-over-year to 100,954 million yen.
As for profits, due to an improvement in the gross profit margin in the mail-order business, and the cutting of selling,
general and administrative expenses, operating income rose 1,134.8% year-over-year to 1,575 million yen.
Ordinary income rose 490.9% year-over-year to 2,012 million yen. Net income totaled 1,190 million yen, comparedwith a net loss of 55 million yen in the same period of the previous fiscal year, due to loss on sales and retirement of
noncurrent assets and other factors.
Overview by segment(Mail-order Business)
Consolidated sales in the mail-order business, comprising the catalog and the hanpukai businesses, decreased 1.0%
year-over-year to 90,712 million yen in the cumulative third quarter, due to a slight decline in sales of autumn itemsin the catalog business, and lower sales caused by a decline in the number of members in the hanpukai business.
The gross profit margin improved due to the improvement in cost-of-sales ratio thanks to higher sales of strategic
products, fewer valuation losses on goods resulting from the efficient implementation of bargain and clearance sales,
and other factors. Operating income totaled 1,184 million yen, compared with an operating loss of 293 million yen
in the same period of the previous fiscal year, due to lower distribution-related costs and cuts made to printing costs
from review in the paper used in printing catalogs.
1) Catalog business
Consolidated sales in the catalog business decreased 0.4% year-over-year to 84,702 million yen in the cumulative
third quarter.
2) Hanpukai business
Consolidated sales in the hanpukai business decreased 9.3% year-over-year to 6,009 million yen in the cumulative
third quarter.
(Bridal Business)
Consolidated sales in the bridal business, centered on the house wedding business, increased 4.0% year-over-year to
7,051 million yen in the cumulative third quarter. However, operating income decreased 63.5% year-over-year to 68
million yen as higher sales were offset by an increase in expenses for new store openings.
(Corporates Business)
Consolidated sales in the corporates business, which provides products and services to corporations, increased 0.3%
year-over-year to 2,838 million yen, and operating income increased 1.4% year-over-year to 283 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 62.4% year-over-year to 352 million
yen in the cumulative third quarter due to withdrawal from pet business. Operating income totaled 39 million yen,
compared with an operating loss of 46 million yen in the same period of the previous fiscal year.

-2-Senshukai Co., Ltd. (8165) Financial Report for the Third Quarter of Fiscal Year 2013

(2) Qualitative Information Regarding Consolidated Financial Position(Balance sheet position)
Assets totaled 92,564 million yen at the end of the third quarter, down 322 million yen from the end of the previous
fiscal year.
Current assets decreased 492 million yen to 45,755 million yen. The main factors were increases of 4,724 million
yen in merchandise and finished goods, and 585 million yen in other, and decreases of 3,646 million yen in accounts
receivable-other and 2,259 million yen in cash and deposits. Noncurrent assets increased 169 million yen to 46,808
million yen. The main factors were decreases of 684 million yen in property, plant and equipment and 415 million
yen in intangible assets, and an increase of 1,269 million yen in investments and other assets.
Current liabilities decreased 233 million yen to 36,829 million yen. The main factors were increases of 2,472
million yen in other and 2,280 million yen in short-term loans payable, and decreases of 4,294 million yen inaccounts payable-factoring, and 876 million yen in notes and accounts payable-trade. Noncurrent liabilities
decreased 1,483 million yen to 9,409 million yen. The main factors were an increase of 911 million yen in other, anddecreases of 1,697 million yen in long-term loans payable and 700 million yen in bonds payable.
Net assets increased 1,393 million yen to 46,326 million yen. The main factors were increases of 1,121 million yen
in valuation difference on available-for-sale securities, and 321 million yen in revaluation reserve for land.
Consequently, the equity ratio was 50.0%.
(3) Qualitative Information Regarding Consolidated Outlook
Senshukai maintains its consolidated outlook for the current fiscal year (January 1, 2013 to December 31, 2013) thatwas released on July 25, 2013, 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.
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(Changes in accounting policies that are difficult to distinguish from changes in accounting-based estimates)
The Company and its domestic consolidated subsidiaries depreciate the property, plant and equipment acquired on
or after January 1, 2013, using the depreciation method stipulated in the revised Corporation Tax Act from the firstquarter of the current fiscal year, in line with revisions to the Corporation Tax Act.
This change has no significant effect on the amount of income for the cumulative third quarter of the current fiscal
year.

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Senshukai Co., Ltd. (8165) Financial Report for the Third Quarter of Fiscal Year 2013

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Million yen)
3Q 2013(As of Sep. 30, 2013)

Fiscal Year 2012
(As of Dec. 31, 2012)
AssetsCurrent assets
Cash and deposits

7,452

5,193

Notes and accounts receivable-trade

6,663

6,702

Merchandise and finished goods

16,644

21,368

Accounts receivable-other

9,951

6,305

Other

5,824

6,409

Allowance for doubtful accounts

(289)

(223)

46,24845,755

Buildings and structures, net

14,05013,555Land

11,908

11,133

Other, net

2,215

2,800

Total property, plant and equipment

28,17427,489Goodwill

2,278

2,164

Other

3,995

3,693

Total intangible assets

6,273

5,858

Investment securities

5,950

7,185

Other

6,558

6,592

Total current assets
Noncurrent assets
Property, plant and equipment

Intangible assets

Investments and other assets

Allowance for doubtful accounts

(317)

(317)

Total investments and other assets

12,19013,46046,63946,80892,88792,564

Total noncurrent assets
Total assets-4-Senshukai Co., Ltd. (8165) Financial Report for the Third Quarter of Fiscal Year 2013

(Million yen)
3Q 2013(As of Sep. 30, 2013)

Fiscal Year 2012
(As of Dec. 31, 2012)
Liabilities
Current liabilities
Notes and accounts payable-trade

8,073

7,197

Short-term loans payable

3,405

5,686

Current portion of bonds

700

700

Accounts payable-factoring

13,993

9,699

Income taxes payable

207

137

Provision for sales promotion expenses

307

561

Other

10,373

12,846

Total current liabilities

37,06236,829Bonds payable

1,850

1,150

Long-term loans payable

6,993

5,296

34

37

Other

2,015

2,926

Total noncurrent liabilities

10,892

9,409

47,955

46,238

Capital stock

20,35920,359

Capital surplus

21,03821,038Retained earnings

13,581

13,498Treasury stock(2,775)(2,776)

Total shareholders’ equity

52,203

52,119(578)

542

Noncurrent liabilities

Provision for retirement benefits

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

-5-

438

388

(7,041)(6,720)(89)(4)(7,271)(5,793)44,932

46,32692,88792,564

Senshukai Co., Ltd. (8165) Financial Report for the Third Quarter of Fiscal Year 2013

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income(For the Nine-month Period)
3Q 2012(Jan. 1, 2012 – Sep. 30, 2012)(Million yen)
3Q 2013(Jan. 1, 2013 – Sep. 30, 2013)

Net sales

102,219

100,954

Cost of sales

53,97351,756Gross profit

48,24549,197

Selling, general and administrative expenses

48,11747,622127

1,575Interest income

4041Dividends income

84

78

Gain on adjustment of account payable

85

184

Other

486

373

Total non-operating income

696

677

Interest expenses

186

162

Commission fee

187

-

Other

110

78

Total non-operating expenses

483

240

340

2,012

Operating income
Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income
Gain on sales of noncurrent assets

1

4Gain on sales of investment securities

22

51

Total extraordinary income

23

55

95

606

Extraordinary loss
Loss on sales and retirement of noncurrent assets
Impairment loss-

53

Loss on valuation of investment securities

183-

Total extraordinary losses

278

659

Income before income taxes and minority interests

85

1,409

Income taxes

140

218

Income (loss) before minority interests

(55)

1,190

Net income (loss)

(55)

1,190

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Senshukai Co., Ltd. (8165) Financial Report for the Third Quarter of Fiscal Year 2013

Quarterly Consolidated Statements of Comprehensive Income(For the Nine-month Period)
3Q 2012(Jan. 1, 2012 – Sep. 30, 2012)(Million yen)
3Q 2013(Jan. 1, 2013 – Sep. 30, 2013)

(55)

1,190

Valuation difference on available-for-sale securities

269

1,121

Deferred gains or losses on hedges

377

(49)

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

(1)

61

-

23

Income (loss) before minority interests
Other comprehensive income

Total other comprehensive income

645

1,156

590

2,346

Comprehensive income attributable to owners of the parent

590

2,346

Comprehensive income attributable to minority interests--

Comprehensive income
Comprehensive income attributable to-7-

Senshukai Co., Ltd. (8165) Financial Report for the Third Quarter of Fiscal Year 2013

(3) Going Concern Assumption
Not applicable.
(4) Significant Changes in Shareholders’ Equity
Not applicable.
(5) Segment and Other Information
I 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
Corporates
Sub-total
business

Others(Note 1)

Total

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

Bridalbusiness

Sales to customers

91,669

6,779

2,830

101,279939

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

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 (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.
II 3Q 2013 (Jan. 1, 2013 – Sep. 30, 2013)
1. Information related to sales and profit or loss for each reportable segment(Million yen)

Reportable segment
Corporates
Sub-total
business

Others(Note 1)

Total

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

Bridalbusiness

Sales to customers

90,712

7,051

2,838

100,601

352

100,954-

100,954

Inter-segment sales

493

-

25

518

101

620

(620)

-

Total

91,205

7,051

2,863

101,120454

101,574(620)

100,954

1,184

68

283

1,536

39

1,576

(1)

1,575

Net sales

Segment profit

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 (1) million yen adjustment to segment profit comprises elimination for inter-segment transactions.
3. Segment profit is adjusted to be consistent with operating income shown on the quarterly consolidated statements ofincome.

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

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