Summary of Financial Results for the Second Quarter of Fiscal Year 2013
(Six Months Ended June 30, 2013)[Japanese GAAP]
July 25, 2013
Company name: Senshukai Co., Ltd.
Stock exchanges: 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 9, 2013
Scheduled date of payment of dividend: September 2, 2013
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting: Yes(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the 2nd Quarter of 2013 (January 1, 2013 – June 30, 2013)(1) Consolidated operating results (cumulative)
Net sales
Million yen
2Q 201372,736
2Q 201274,031
Note: Comprehensive income (million yen)

(Percentages represent changes from the same period of the previous fiscal year)
Operating income
Ordinary income
Net income%
Million yen%
Million yen%
Million yen%(1.7)
1,626 113.3
1,995
69.1
1,241
35.8
6.5
762 (68.2)
1,180 (55.2)
914 (57.8)
2Q 2013: 2,761 (up 87.3%)
2Q 2012: 1,474 (down 45.7%)

Net income per share
Yen
28.67
21.12

2Q 2013
2Q 2012

Diluted net income per
share
Yen
-

(2) Consolidated financial position
Total assets
Million yen
2Q 2013
91,296
Fiscal Year 2012
92,887
Reference: Shareholders’ equity (million yen) 2Q 2013:

Net assets
Million yen
47,26044,93247,260Equity ratio

Net assets per share
%
Yen
51.8
1,091.25
48.4
1,037.48
Fiscal Year 2012: 44,932

2. Dividends
Dividend per share
3Q-endYen
Yen
Yen
Fiscal Year 2012
10.00
Fiscal Year 2013
12.00
Fiscal Year 2013 (forecasts)
Note: Revision to the most recently announced dividend forecast: None
1Q-end2Q-endYear-end

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: Yes

* 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: 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 4 for further information.

(4) Number of shares outstanding (common shares)
1) Number of shares outstanding at end of period (including treasury stock)
2Q 2013:47,630,393 sharesFiscal Year 2012:

47,630,393 sharesFiscal Year 2012:

4,321,445 shares

2Q 2012:43,309,253 shares

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

4,321,636 shares

3) Average number of shares outstanding during the period
2Q 2013:43,308,905 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 4, “1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Qualitative Information Regarding
Consolidated Outlook.”Senshukai Co., Ltd. (8165) Financial Report for the Second 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

4

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 Sheets

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

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

7

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

9(4) Going Concern Assumption

10(5) Significant Changes in Shareholders’ Equity

10(6) Segment and Other Information

10

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

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Qualitative Information Regarding Consolidated Results of Operations
In the cumulative second quarter (January 1, 2013 to June 30, 2013) of the current fiscal year, the Japanese economy
showed signs of recovery, particularly the export sector, as share prices rebounded on expectations for economic
stimulus measures from the new administration, and the correction of the yen's appreciation. However, the outlook
for the domestic economy and personal consumption remained unclear due to uncertainties over the government's
future growth strategy, Europe's debt crisis, and the slowdown of the Chinese economy.
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 second quarter decreased 1.7% year-over-year to 72,736 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 113.3% year-over-year to 1,626 million yen.
Ordinary income rose 69.1% year-over-year to 1,995 million yen due to foreign exchange gains and other factors.
Net income rose 35.8% to 1,241 million yen due to loss on sales and retirement of noncurrent assets and otherfactors.
Overview by segment(Mail-order Business)
Consolidated sales in the mail-order business, comprising the catalog and the hanpukai businesses, decreased 1.4%
year-over-year to 65,900 million yen in the cumulative second quarter, due to weak sales of spring and summer
items in the catalog business resulting from lower temperatures in April, and a decline in sales in the hanpukai
business.
The gross profit margin improved due to fewer valuation losses on goods thanks to the early implementation of
bargain and clearance sales. Operating income rose 245.6% year-over-year to 1,344 million yen due to lower
distribution-related costs thanks to more efficient logistics, 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 0.8% year-over-year to 61,826 million yen in the cumulative
second quarter.
2) Hanpukai business
Consolidated sales in the hanpukai business decreased 10.2% year-over-year to 4,074 million yen in the
cumulative second quarter.
(Bridal Business)
Consolidated sales in the bridal business, centered on the house wedding business, decreased 0.6% year-over-year to
4,708 million yen in the cumulative second quarter, despite an increase in average sales per wedding/reception, due
to fewer weddings. Operating income decreased 72.5% year-over-year to 65 million yen.
(Corporates Business)
Consolidated sales in the corporates business, which provides products and services to corporations, increased 0.3%
year-over-year to 1,887 million yen, and operating income increased 19.7% year-over-year to 212 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 58.6% year-over-year to 239 million
yen in the cumulative second quarter due to withdrawal from pet business. Operating income totaled 4 million yen,
compared with an operating loss of 43 million yen in the same period of the previous fiscal year.

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Note: As Senshukai changed its reportable segment classifications from the third quarter of the previous fiscal year,
the new classifications have been applied to year-ago figures to allow for year-over-year comparisons. Pleasesee “3. Quarterly Consolidated Financial Statements, (6) Segment and Other Information” for details.
(2) Qualitative Information Regarding Consolidated Financial Position(Balance sheet position)
Assets totaled 91,296 million yen at the end of the second quarter, down 1,591 million yen from the end of theprevious fiscal year.
Current assets decreased 1,751 million yen to 44,496 million yen. The main factors were increases of 540 million
yen in cash and deposits and 268 million yen in notes and accounts receivable-trade, and decreases of 1,882 million
yen in accounts receivable-other and 822 million yen in other. Noncurrent assets increased 160 million yen to46,799 million yen. The main factors were decreases of 448 million yen in property, plant and equipment and 388
million yen in intangible assets, and an increase of 997 million yen in investments and other assets.
Current liabilities decreased 3,494 million yen to 33,567 million yen. The main factors were decreases of 2,510
million yen in notes and accounts payable-trade and 1,009 million yen in short-term loans payable. Noncurrent
liabilities decreased 424 million yen to 10,468 million yen. The main factors were an increase of 907 million yen inother, and decreases of 985 million yen in long-term loans payable and 350 million yen in bonds payable.
Net assets increased 2,328 million yen to 47,260 million yen. The main factors were increases of 896 million yen invaluation difference on available-for-sale securities, 536 million yen in deferred gains or losses on hedges and 486
million yen in retained earnings. Consequently, the equity ratio was 51.8%.
(Cash flow position)
The balance of cash and cash equivalents at the end of the second quarter of the current fiscal year was 7,993
million yen, an increase of 540 million yen from the end of the previous fiscal year.
Operating activities provided net cash of 2,857 million yen (year-over-year increase in income of 1,260 million yen).
The main cash inflows were a decrease in other current assets of 2,653 million yen, income before income taxes andminority interests of 1,412 million yen and depreciation and amortization of 1,293 million yen. The main cash
outflows were a decrease in other current liabilities of 1,655 million yen, and a decrease in notes and accounts
payable-trade of 1,303 million yen.
Investing activities provided net cash of 511 million yen (net cash used of 1,813 million yen in the same period of
the previous fiscal year). The main cash inflows were 900 million yen in proceeds from redemption of investment
securities and 420 million yen in proceeds from sales of property, plant and equipment. The main cash outflows
were 553 million yen for the purchase of property, plant and equipment, and 307 million yen for the purchase ofintangible assets.
Financing activities used net cash of 2,843 million yen (year-over-year decrease in outlays of 670 million yen). The
main cash outflows were repayment of long-term loans payable of 1,244 million yen, a decrease in short-term loans
payable of 1,000 million yen and cash dividends paid of 430 million yen.

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

(3) Qualitative Information Regarding Consolidated Outlook
Senshukai has revised the consolidated outlook for the current fiscal year (January 1, 2013 to December 31, 2013)
as follows, as net sales are expected to continue to decline in the second half.
Consolidated Outlook for Fiscal Year 2013 (January 1, 2013 – December 31, 2013)
Net sales

OperatingincomeOrdinary income

Net income

Net income pershare

Million yen

Million yen

Million yen

Million yen

Yen

Previous forecast (A)(announced on February 7, 2013)

153,000

4,700

5,000

3,700

85.43

Revised forecast (B)144,500

4,000

4,400

3,500

80.82

Increase (decrease) (B – A)

(8,500)

(700)

(600)

(200)

-

(5.6)

(14.9)(12.0)(5.4)-

145,750

2,109

2,765

2,029

46.86

Percentage change (%)(Reference)
Actual results for Fiscal Year 2012

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 second quarter of the current fiscal
year.

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

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Million yen)
2Q 2013(As of Jun. 30, 2013)

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

7,452

7,993

Notes and accounts receivable-trade

6,663

6,932

Merchandise and finished goods

16,644

16,757

Accounts receivable-other

9,951

8,069

Other

5,824

5,002

Allowance for doubtful accounts

(289)

(258)

46,24844,496

Buildings and structures, net

14,05013,764Land

11,908

11,169Other, net

2,215

2,791

Total property, plant and equipment

28,17427,725

Goodwill

2,278

2,202

Other

3,995

3,683

Total intangible assets

6,273

5,885

Investment securities

5,950

6,887

Other

6,558

6,618

Allowance for doubtful accounts

(317)

(317)

Total investments and other assets

12,19013,18846,63946,79992,887

91,296

Total current assets
Noncurrent assets
Property, plant and equipment

Intangible assets

Investments and other assets

Total noncurrent assets
Total assets-5-Senshukai Co., Ltd. (8165) Financial Report for the Second Quarter of Fiscal Year 2013

(Million yen)
2Q 2013(As of Jun. 30, 2013)

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

8,073

5,563

Short-term loans payable

3,405

2,396

Current portion of bonds

700

700

Accounts payable-factoring

13,99314,008

Income taxes payable

207

205

Provision for sales promotion expenses

307

550

Other

10,373

10,142

Total current liabilities

37,06233,567

Bonds payable

1,850

1,500

Long-term loans payable

6,993

6,007

Noncurrent liabilities

34

37

Other

2,015

2,922

Total noncurrent liabilities

10,892

10,46847,95544,035

Capital stock

20,35920,359

Capital surplus

21,03821,038Retained earnings

13,581

14,067

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

Total shareholders’ equity

52,203

52,689(578)

317

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

-6-

438

975

(7,041)(6,720)(89)(2)(7,271)(5,429)44,93247,26092,887

91,296

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

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income(For the Six-month Period)
2Q 2012(Jan. 1, 2012 – Jun. 30, 2012)
74,031(Million yen)
2Q 2013(Jan. 1, 2013 – Jun. 30, 2013)
72,736

Cost of sales

38,99937,222Gross profit

35,03135,513

Selling, general and administrative expenses

34,26933,887

762

1,626

25

34

Net sales

Operating income
Non-operating income
Interest income
Dividends income

8274

Foreign exchange gains

232

107

Gain on adjustment of account payable

56

110

Other

229

207

Total non-operating income

626

535

Interest expenses

121

108

Other

87

57

Non-operating expenses

Total non-operating expenses
Ordinary income

208

166

1,180

1,995

Extraordinary income
Gain on sales of noncurrent assets

10Gain on sales of investment securities

22

49

Total extraordinary income

23

50

94

579

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

53

Total extraordinary losses

94

633

1,109

1,412

Income before income taxes and minority interests
Income taxes

195

170

Income before minority interests

914

1,241

Net income

914

1,241

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

Quarterly Consolidated Statements of Comprehensive Income(For the Six-month Period)
2Q 2012(Jan. 1, 2012 – Jun. 30, 2012)
914(Million yen)
2Q 2013(Jan. 1, 2013 – Jun. 30, 2013)
1,241

Valuation difference on available-for-sale securities

110

896

Deferred gains or losses on hedges

436

536

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

10

62

2

24

Total other comprehensive income

559

1,519

1,474

2,761

1,474

2,761

-

-

Income before minority interests
Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests-8-Senshukai Co., Ltd. (8165) Financial Report for the Second Quarter of Fiscal Year 2013

(3) Quarterly Consolidated Statements of Cash Flows(Million yen)
2Q 2013
2Q 2012(Jan. 1, 2012 – Jun. 30, 2012) (Jan. 1, 2013 – Jun. 30, 2013)
Net cash provided by (used in) operating activities
Income before income taxes and minority interests

1,109

1,412

Depreciation and amortization

1,409

1,293

Increase (decrease) in allowance for doubtful accounts

(49)

53
(30)

Increase (decrease) in allowance for sales promotion expenses(49)

Interest and dividends income

(107)

242
(109)

Interest expenses

121
(333)

108
(65)

Loss (gain) on sales of investment securities

92
(22)

578
(49)

Decrease (increase) in notes and accounts receivable-trade

(56)

(255)

Impairment loss

Foreign exchange losses (gains)
Loss (gain) on sales and retirement of noncurrent assets

Decrease (increase) in inventories

1,152

(24)

Decrease (increase) in other current assets

1,118(2,219)2,653(1,303)(923)(1,655)

Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in other current liabilities
Other, net

430

138

Subtotal

1,672

2,988

Interest and dividends income received
Interest expenses paid

107
(126)

109
(112)

Income taxes (paid) refund

(55)

(126)

1,597

2,857

(1,595)(553)

Purchase of intangible assets

1
(452)

420
(307)

Purchase of investment securities

(20)

-

Proceeds from sales of investment securities

141

98

111

900
(46)

(1,813)511(2,500)(1,000)

Repayment of long-term loans payable

450
(711)

250
(1,244)

Redemption of bonds

(386)

(350)

Cash dividends paid

(303)

(430)

Other, net

(62)

(67)

(3,513)(2,843)

Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

Proceeds from redemption of investment securities
Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable

Net cash provided by (used in) financing activities

6

14

Net increase (decrease) in cash and cash equivalents

Effect of exchange rate change on cash and cash equivalents(3,722)

540

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from merger withunconsolidated subsidiaries
Cash and cash equivalents at end of period

7,500

7,452

181

-

3,958

7,993

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

(4) Going Concern Assumption
Not applicable.
(5) Significant Changes in Shareholders’ Equity
Not applicable.
(6) Segment and Other Information
I 2Q 2012 (Jan. 1, 2012 – Jun. 30, 2012)
1. Information related to sales and profit or loss for each reportable segment(Million yen)

Reportable segment

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

Bridalbusiness

Corporates
business

Sub-total

Others(Note 1)

Total

Sales to customers

66,832

4,738

1,881

73,452579

74,031-

74,031

Inter-segment sales

295

-

31

326

43

370

(370)

-

Total

67,127

4,738

1,912

73,778622

74,401(370)

74,031

Segment profit (loss)

389

239

177

806

(43)

762

0

762

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 2Q 2013 (Jan. 1, 2013 – Jun. 30, 2013)
1. Information related to sales and profit or loss for each reportable segment(Million yen)

Reportable segment

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

Bridalbusiness

Corporates
business

Sub-total

Others(Note 1)

Sales to customers

65,900

4,708

1,887

72,496239

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

Total

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.

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

3. Information related to revisions for reportable segments
Following the business transfer between companies within the consolidated group, a part of the business in theothers segment was changed to the mail-order business segment in the third quarter of the previous fiscal year. The
reportable segment for the cumulative second quarter of the previous fiscal year is prepared and disclosed based on
the calculation methods after this change.

* 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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