Summary of Financial Results for the Second Quarter of Fiscal Year 2014
(Six Months Ended June 30, 2014)[Japanese GAAP]
July 31, 2014
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: August 8, 2014
Scheduled date of payment of dividend: September 1, 2014
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting: Yes(All amounts are rounded down to the nearest millions of yen)

1. Consolidated Financial Results for the 2nd Quarter of 2014 (January 1, 2014 – June 30, 2014)(1) Consolidated operating results (cumulative)
Net sales
Millions of yen(Percentages represent changes from the same period of the previous fiscal year)
Operating income
Ordinary income
Net income%

Millions of yen% Millions of yen

2Q 201474,048 1.8
1,833
12.7
2Q 201372,736 (1.7)
1,626 113.3
Note: Comprehensive income (millions of yen) 2Q 2014: 8 (down 99.7%)
Net income per share
2Q 2014
2Q 2013Millions of yen

%

1,946
(2.4)
914
1,995
69.1
1,241
2Q 2013: 2,761 (up 87.3%)%(26.4)
35.8

Diluted net income per share

Yen

Yen

21.11
28.67

19.96
-

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

2Q 201498,504
Fiscal Year 2013
98,800
Reference: Shareholders’ equity (millions of yen) 2Q 2014: 49,818

49,81850,359Net assets per share
%

Yen

50.6
51.0
Fiscal Year 2013: 50,359

1,150.33
1,162.81

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

Yen

Year-end

Total

Yen

Yen

Yen

-

12.00

24.00

-

12.00

24.00

Fiscal Year 2013
12.00
Fiscal Year 2014
12.00
Fiscal Year 2014 (forecasts)
Note: Revision to the most recently announced dividend forecast: None

3. Consolidated Outlook for Fiscal Year 2014 (January 1, 2014 – December 31, 2014)
Net sales
Millions of yen(Percentages represent changes from the same period of the previous fiscal year)
Net income
Operating income
Ordinary income
Net income
per share% Millions of yen%

Millions of yen

Full Year 2014
146,500 3.5
3,600 (10.4)
Note: Revision to the most recently announced consolidated outlook: None

% Millions of yen

4,000 (13.6)%

Yen

2,300 (43.2)

53.11

* 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 4 for further information.

(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(4) Number of shares outstanding (common shares)
1) Number of shares outstanding at end of period (including treasury shares)
2Q 2014:47,630,393 sharesFiscal Year 2013:

47,630,393 sharesFiscal Year 2013:

4,321,851 shares

2Q 2013:43,308,905 shares

2) Number of treasury shares at end of period
2Q 2014:

4,322,202 shares

3) Average number of shares outstanding during the period
2Q 2014:43,308,375 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) Explanation of Consolidated
Forecasts and Other Forward-looking Statements.”

SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2014

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

2(2) Explanation of Financial Position

3(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements

3

2. Matters Related to Summary Information (Notes)

4(1) Changes in Significant Subsidiaries during the Period

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

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

4

3. Quarterly Consolidated Financial Statements

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
Income7

Quarterly Consolidated Statement of Income(For the Six-month Period)

7

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)8(3) Quarterly Consolidated Statement of Cash Flows

9(4) Notes to Quarterly Consolidated Financial Statements

10(Going Concern Assumption)

10(Significant Changes in Shareholders’ Equity)

10(Segment and Other Information)

10

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SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2014

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the cumulative second quarter (January 1, 2014 to June 30, 2014) of the current fiscal year, the Japanese
economy continued to recover at a moderate pace due to the benefits of economic and monetary measures by theJapanese government and Bank of Japan. In the retail industry, competition is further intensifying across industry
sectors, business categories and marketing channels at a time when trends in personal consumption have become
uncertain due to falloff in demand following the rush of spending ahead of the consumption tax rate hike in April.
In this environment, the Senshukai Group is concentrating on achieving the first fiscal year targets of themedium- to long-term management plan that started in 2014.
Net sales in the cumulative second quarter increased 1.8% year-over-year to 74,048 million yen.
As for profits, due to the cutting of selling, general and administrative expenses in the mail-order business,
operating income rose 12.7% year-over-year to 1,833 million yen.
Ordinary income decreased 2.4% year-over-year to 1,946 million yen and net income decreased 26.4%
year-over-year to 914 million yen.
Overview by segment(Mail-order Business)
Consolidated sales in the mail-order business, comprising the catalog and the hanpukai businesses, increased
0.2% year-over-year to 66,042 million yen in the cumulative second quarter, despite the effect of the consumption
tax hike and other factors.
Regarding profits, operating income rose 8.9% year-over-year to 1,464 million yen, mainly due to the reduction in
printing costs.
(a) Catalog business
Consolidated sales in the catalog business increased 1.1% year-over-year to 62,491 million yen in the
cumulative second quarter.
(b) Hanpukai business
Consolidated sales in the hanpukai business decreased 12.8% year-over-year to 3,551 million yen in the
cumulative second quarter.
(Bridal Business)
Consolidated sales in the bridal business, centered on the house wedding business, increased 25.1%
year-over-year to 5,890 million yen in the cumulative second quarter. This was due to a strong sales at existing
facilities and an increase in the number of weddings from new facilities. Operating income increased 163.3%
year-over-year to 173 million yen.
(Corporates Business)
Consolidated sales in the corporates business, which provides products and services to corporations, decreased
0.6% year-over-year to 1,875 million yen in the cumulative second quarter, and operating income decreased
16.0% year-over-year to 178 million yen.
(Others)
Consolidated sales in other businesses, which provides services business (primarily insurance and credit card
services), decreased 0.1% year-over-year to 239 million yen in the cumulative second quarter, and operating
income increased 255.0% year-over-year to 16 million yen.

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SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2014

(2) Explanation of Financial Position(Balance sheet position)
Assets totaled 98,504 million yen at the end of the second quarter of the current fiscal year, a decrease of 295
million yen from the end of the previous fiscal year.
Current assets increased 8 million yen to 50,186 million yen. The main factors were an increase of 4,623 million
yen in cash and deposits, while there were decreases of 2,066 million yen in other, 1,531 million yen in accounts
receivable-other, 659 million yen in merchandise and finished goods, and 353 million yen in notes and accounts
receivable-trade. Non-current assets decreased 304 million yen to 48,317 million yen. The main factors weredecreases of 142 million yen in intangible assets and 453 million yen in investments and other assets, while there
was an increase of 290 million yen in property, plant and equipment.
Current liabilities decreased 6,358 million yen to 33,276 million yen. The main factors were decreases of 8,941
million yen in other, 3,703 million yen in short-term loans payable, and 1,542 million yen in notes and accounts
payable-trade, while there was an increase of 7,588 million yen in electronically recorded obligations-operating.
Non-current liabilities increased 6,604 million yen to 15,409 million yen. The main factors were an increase of
7,000 million yen in bonds with subscription rights to shares, while there was a decrease of 350 million yen inbonds payable.
Net assets decreased 541 million yen to 49,818 million yen. The main factors was a decrease of 960 million yen
in deferred gains or losses on hedges, while there was an increase of 366 million yen in retained earnings.
Consequently, the equity ratio was 50.6%.
(Cash flow position)
The balance of cash and cash equivalents at the end of the second quarter of the current fiscal year was 11,118
million yen, an increase of 4,623 million yen from the end of the previous fiscal year.
Operating activities provided net cash of 3,514 million yen (year-over-year increase in income of 656 millionyen). The main cash inflows were an increase in notes and accounts payable-trade of 5,740 million yen, adecrease in other current assets of 2,639 million yen, income before income taxes and minority interests of 1,716
million yen, and depreciation of 1,271 million yen. The main cash outflows were a decrease in other current
liabilities of 9,588 million yen.
Investing activities used net cash of 1,290 million yen (net cash provided of 511 million yen in the same period of
the previous fiscal year). The main cash inflows were proceeds from sales of investment securities of 216 million
yen, and proceeds from redemption of investment securities of 150 million yen. The main cash outflows were1,035 million yen for the purchase of property, plant and equipment, and 398 million yen for the purchase ofintangible assets.
Financing activities provided net cash of 2,122 million yen (net cash used of 2,843 million yen in the same periodof the previous fiscal year). The main cash inflow were proceeds from issuance of bonds with subscription rights
to shares of 6,980 million yen and proceeds from long-term loans payable of 1,500 million yen, while main cash
outflows were a 4,180 million yen decrease in short-term loans payable, repayment of long-term loans payable of
1,241 million yen, and cash dividends paid of 520 million yen.
(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
Senshukai currently maintains its consolidated outlook for the current fiscal year (January 1, 2014 to December
31, 2014) that was revised and released on July 25, 2014.

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SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2014

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 effectaccounting with respect to income before income taxes and minority interests during the fiscal year in which thequarter under review falls, and multiplying that rate by the income before income taxes and minority interests forthe quarter under review. 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.
(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements
Not applicable.

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SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2014

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Millions of yen)
Fiscal Year 2013
(As of Dec. 31, 2013)

2Q 2014(As of Jun. 30, 2014)

AssetsCurrent assets
Cash and deposits

6,495

11,118Notes and accounts receivable-trade

6,395

6,041

Merchandise and finished goods

21,296

20,636

Accounts receivable-other

9,609

8,077

Other

6,688

4,621

Allowance for doubtful accounts

(306)

(309)

50,17750,186

Buildings and structures, net

13,754

14,341

Land

12,108

12,105

Total current assets
Non-current assets
Property, plant and equipment

Other, net

2,912

2,618

Total property, plant and equipment

28,77529,066

Goodwill

2,127

2,130

Other

3,604

3,459

Total intangible assets

5,731

5,589

Investment securities

7,514

6,888

Other

6,914

7,086

Allowance for doubtful accounts

(314)

(314)

Intangible assets

Investments and other assets

Total investments and other assets
Total non-current assets
Total assets-5-

14,114

13,661

48,622

48,31798,80098,504SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2014

(Millions of yen)
2Q 2014(As of Jun. 30, 2014)

Fiscal Year 2013
(As of Dec. 31, 2013)
Liabilities
Current liabilities
Notes and accounts payable-trade

6,496

4,953

Electronically recorded obligations-operating

6,204

13,792

Short-term loans payable

6,386

2,682

Current portion of bonds

700

700

Income taxes payable

416

832

Provision for directors' bonuses

30-

Provision for sales promotion expenses

588

443

Other

18,813

9,871

Total current liabilities

39,63533,276

1,150

800

-

7,000

4,814

4,850

34

85

Non-current liabilities
Bonds payable
Bonds with subscription rights to shares
Long-term loans payable
Provision for retirement benefits
Other

2,806

2,673

Total non-current liabilities

8,805

15,40948,44048,685

Total liabilities
Net assets
Shareholders’ equity
Capital stock

20,35920,359

Capital surplus

21,03821,038Retained earnings

16,353

16,719Treasury shares(2,776)(2,776)

Total shareholders’ equity

54,97555,341

774

858

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

1,278

318

Revaluation reserve for land

(6,720)(6,720)5221Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-6-(4,615)(5,522)50,35949,81898,80098,504SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2014

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
Income(Quarterly Consolidated Statement of Income)(For the Six-month Period)(Millions of yen)

Net sales

2Q 2013(Jan. 1, 2013 – Jun. 30, 2013)
72,736

2Q 2014(Jan. 1, 2014 – Jun. 30, 2014)
74,048

Cost of sales

37,22239,082Gross profit

35,51334,966

Selling, general and administrative expenses

33,88733,132

Operating income

1,626

1,833

Interest income

34

20

Dividend income

74

77

Foreign exchange gains

107-

Gain on adjustment of account payable

110

98

Other

207

102

Total non-operating income

535

300

Interest expenses

108

102

Other

57

84

Total non-operating expenses

166

186

1,995

1,946

Gain on sales of non-current assets

00Gain on sales of investment securities

49

0

Total extraordinary income

50

0

579

42

Loss on sales of investment securities

-

147

Other

53

41

Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary losses
Loss on sales and retirement of non-current assets

Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests in income
Net income

-7-

633

231

1,412

1,716

170

801

1,241

915

-

0

1,241

914

SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2014

(Quarterly Consolidated Statement of Comprehensive Income)(For the Six-month Period)(Millions of yen)
2Q 2013(Jan. 1, 2013 – Jun. 30, 2013)

2Q 2014(Jan. 1, 2014 – Jun. 30, 2014)

1,241

915

Valuation difference on available-for-sale securities

896

83

Deferred gains or losses on hedges

536

(960)

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

62

(20)

24

(9)

1,519

(906)

2,761

8

Comprehensive income attributable to owners of parent

2,761

7

Comprehensive income attributable to minority interests-

0

Income before minority interests
Other comprehensive income

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

SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2014(3) Quarterly Consolidated Statement of Cash Flows(Millions of yen)
2Q 2013
2Q 2014(Jan. 1, 2013 – Jun. 30, 2013) (Jan. 1, 2014 – Jun. 30, 2014)
Cash flows from operating activities
Income before income taxes and minority interests

1,412

1,716

Depreciation

1,293

1,271

Increase (decrease) in allowance for doubtful accounts

(30)

(28)

Increase (decrease) in provision for sales promotion expenses

242

(144)

Interest and dividend income

(109)

(98)

Interest expenses

108

102

Loss (gain) on sales and retirement of non-current assets

578

41

Loss (gain) on sales of investment securities

(49)

147

Decrease (increase) in notes and accounts receivable-trade

(255)

529

Decrease (increase) in inventories

(24)

930

Decrease (increase) in other current assets

2,653

2,639

Increase (decrease) in notes and accounts payable-trade(1,303)

5,740

Increase (decrease) in other current liabilities(1,655)(9,588)Other, net

126

669

Subtotal

2,988

3,930

Interest and dividend income received

109

97

Interest expenses paid

(112)

(106)

Income taxes (paid) refund

(126)

(406)

Net cash provided by (used in) operating activities

2,857

3,514

Purchase of property, plant and equipment(553)(1,035)

Proceeds from sales of property, plant and equipment

420

7

Purchase of intangible assets

Cash flows from investing activities

(307)

(398)

Proceeds from sales of investment securities

98

216

Proceeds from redemption of investment securities

900

150

-

(125)

Other, net

(46)

(104)

Net cash provided by (used in) investing activities

511(1,290)(1,000)(4,180)

250

1,500

(1,244)(1,241)

-

6,980

(350)

(350)

Cash dividends paid

(430)

(520)

Other, net

(67)

(65)

(2,843)

2,122

Purchase of shares of subsidiaries

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds with subscription rights tosharesRedemption of bonds

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

14

(13)

Net increase (decrease) in cash and cash equivalents

540

4,333

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly consolidated
subsidiary

7,452

6,495

-

290

Cash and cash equivalents at end of period

7,993

11,118-9-

SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2014

(4) Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Significant Changes in Shareholders’ Equity)
Not applicable.
(Segment and Other Information)
I 2Q 2013 (Jan. 1, 2013 – Jun. 30, 2013)
1. Information related to sales and profit or loss for each reportable segment(Millions of yen)

Reportable segment
Mail-orderbusiness

Bridalbusiness

Corporates
business

Sub-total

Others(Note 1)

65,900

4,708

1,887

72,496239

Total

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

Net sales
Sales to customers

72,736-

72,736

Inter-segment sales

319

-

18

338

84

423

(423)

-

Total

66,220

4,708

1,906

72,835324

73,159(423)

72,736

1,344

65

212

1,623

4

1,627

(1)

1,626

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 statement ofincome.

2. Information related to impairment of non-current assets, goodwill, etc. for each reportable segment
No major events or changes occurred.
II 2Q 2014 (Jan. 1, 2014 – Jun. 30, 2014)
1. Information related to sales and profit or loss for each reportable segment(Millions of yen)

Reportable segment
Corporates
Sub-total
business

Others(Note 1)

Total

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

Bridalbusiness

Sales to customers

66,042

5,890

1,875

73,808239

74,048-74,048Inter-segment sales

403

-

38

441

0

442

(442)

-

Total

66,446

5,890

1,913

74,250240

74,490(442)

74,048

1,464

173

178

1,817

16

1,833

0

1,833

Net sales

Segment profit

Notes: 1. Others represent the businesses which are not included in any of the three reportable segments and consist mainlyof the services business primarily offering insurance and credit card services.
2. The 0 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 statement ofincome.

2. Information related to impairment of non-current 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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