Summary of Financial Results for the Third Quarter of Fiscal Year 2015
(Nine Months Ended September 30, 2015)[Japanese GAAP]
October 30, 2015
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, Managing Director, Executive Officer,
General Manager of the Corporate Development Division Tel: +81-6-6881-3220
Scheduled date of filing of Quarterly Report: November 12, 2015
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 millions of yen)

1. Consolidated Financial Results for the 3rd Quarter of 2015 (January 1, 2015 – September 30, 2015)(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%

Millions of yen%

3Q 2015
96,191(5.8)(2,621)
3Q 2014102,135
1.2
837 (46.8)
Note: Comprehensive income (millions of yen)
3Q 2015: (2,201) (- %)Millions of yen

Net income per share

Diluted net income per share

Yen

Yen

(31.53)8.00

7.33

3Q 2015
3Q 2014%

Millions of yen%(1,337)(1,516)
1,092 (45.7)
346 (70.9)
3Q 2014: 697 (down 70.3 %)(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

3Q 2015
106,274
Fiscal Year 2014
100,785
Reference: Shareholders’ equity (millions of yen) 3Q 2015: 57,779

57,82053,160Net assets per share
%

Yen

54.4
52.7
Fiscal Year 2014: 53,160

1,106.73
1,227.52

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

Yen

Fiscal Year 2014
12.00
Fiscal Year 2015
4.00
Fiscal Year 2015 (forecasts)
Note: Revision to the most recently announced dividend forecast: None

Year-end

Total

Yen

Yen

Yen

-

12.00

24.00

4.00

8.00

3. Consolidated Outlook for Fiscal Year 2015 (January 1, 2015 – December 31, 2015)(Percentages represent changes from the same period of the previous fiscal year)
Net income
Net sales
Operating income
Ordinary income
Net income
per share
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full Year 2015
135,500 (4.9)(3,400)(1,990)(3,240)(65.94)
Note: Revision to the most recently announced consolidated outlook: Yes
For more information, please refer to “Notice of Non-operating Income (Share of Profit of Entities Accounted for Using
Equity Method) and Revisions to Consolidated Outlook” that was announced today (October 30, 2015).

* 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: 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)
3Q 2015:

52,230,393 sharesFiscal Year 2014:

47,630,393 sharesFiscal Year 2014:

4,322,649 shares

3Q 2014:43,308,309 shares

2) Number of treasury shares at end of period
3Q 2015:

23,149 shares

3) Average number of shares outstanding during the period
3Q 2015:

48,099,833 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 to page3, “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 Third Quarter of Fiscal Year 2015

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)

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 Sheet

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

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

6

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)7(3) Notes to Quarterly Consolidated Financial Statements

8(Going Concern Assumption)

8(Significant Changes in Shareholders’ Equity)

8(Segment and Other Information)

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SENSHUKAI CO.,LTD. (8165) Financial Results for the Third Quarter of Fiscal Year 2015

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the cumulative third quarter (January 1, 2015 to September 30, 2015) of the current fiscal year, the Japanese
economy continued to recover at a moderate pace as there were signs of improvements in corporate earnings andemployment situation due to the benefits of financial and economic measures. However, the economic outlook
remains uncertain because of the growing risk of an overseas economic downturn. In the retail industry,
consumers continue to adopt a highly defensive stance about expenditures because of a series of price increases
for food, daily necessities and other merchandise associated with the yen’s weakness. As a result, the operating
environment remained challenging as the recovery in personal consumption expenditure is still sluggish.
The Senshukai Group is currently in the second year of the medium- to long-term management plan “Innovate for
Smiles 2018” that covers the five-year period ending in 2018. All group companies are focusing their energy onachieving the goals of this plan.
Net sales in the cumulative third quarter decreased 5.8% year-over-year to 96,191 million yen.
There was an operating loss of 2,621 million yen compared with operating income of 837 million yen in the same
period of the previous fiscal year. A decrease in sales in the mail-order business reduced earnings and the grossprofit margin declined as the weaker yen raised the cost of merchandise and sluggish sales caused the percentage
of sales from discounted merchandise to increase.
Ordinary loss was 1,337 million yen compared with ordinary income of 1,092 million yen in the same period of
the previous fiscal year. Negative goodwill of 1,159 million yen associated with the conversion of Watabe
Wedding Corporation to an equity-method affiliate was recorded in non-operating income as share of profit ofentities accounted for using equity method. The net loss was 1,516 million yen compared with net income of 346
million yen in the same period of the previous fiscal year.
Overview by segment(Mail-order Business)
Consolidated sales in the mail-order business, centered on the catalog and the Internet businesses, decreased 9.0%
year-over-year to 82,274 million yen in the cumulative third quarter. There was an operating loss of 2,873 million
yen compared with operating income of 525 million yen in the same period of the previous fiscal year.
(Bridal Business)
Consolidated sales in the bridal business, centered on the house wedding business, increased 19.8%
year-over-year to 10,219 million yen in the cumulative third quarter. There was an operating loss of 38 million
yen compared with operating income of 82 million yen in the same period of the previous fiscal year.
(Corporates Business)
Consolidated sales in the corporates business, which provides products and services to corporations, increased
9.4% year-over-year to 3,111 million yen, and operating income increased 19.2% to 262 million yen.
(Others)
Consolidated sales in other businesses, which provides services business (primarily insurance and credit card
services) and childcare business, increased 57.9% year-over-year to 586 million yen. Operating income increased
134.4% to 21 million yen.

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SENSHUKAI CO.,LTD. (8165) Financial Results for the Third Quarter of Fiscal Year 2015

(2) Explanation of Financial Position(Balance sheet position)
Assets totaled 106,274 million yen at the end of the third quarter of the current fiscal year, an increase of 5,489
million yen from the end of the previous fiscal year.
Current assets decreased 1,329 million yen to 52,224 million yen. The main factors were decreases of 2,200
million yen in notes and accounts receivable-trade, 1,857 million yen in accounts receivable-other and 1,207
million yen in other, while there was an increase of 3,936 million yen in cash and deposits. Non-current assets
increased 6,818 million yen to 54,049 million yen. The main factors were increases of 2,986 million yen inproperty, plant and equipment, and 3,973 million yen in investments and other assets, while there was a decreaseof 141 million yen in intangible assets.
Current liabilities decreased 3,892 million yen to 29,578 million yen. The main factors were decreases of 2,319
million yen in electronically recorded obligations-operating and 1,394 million yen in other. Non-current liabilities
increased 4,721 million yen to 18,875 million yen. The main factor was an increase of 5,619 million yen in
long-term loans payable, while there were decreases of 455 million yen in other and 450 million yen in bonds
payable.
Net assets increased 4,659 million yen to 57,820 million yen. There were decreases of 2,166 million yen inretained earnings and 1,187 million yen in deferred gains or losses on hedges. However, there were increases of
1,945 million yen in capital stock and 2,821 million yen in capital surplus, and a decrease of 2,762 million yen intreasury shares as a result of the issuance of new shares and the disposal of treasury shares through the third-party
allotment to J.FRONT RETAILING Co.,Ltd. in May 2015. Consequently, the equity ratio was 54.4%.
(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
Senshukai has revised its consolidated outlook for the current fiscal year (January 1, 2015 to December 31, 2015)that was revised and released on July 24, 2015. For more information, please refer to “Notice of Non-operating
Income (Share of Profit of Entities Accounted for Using Equity Method) and Revisions to Consolidated Outlook”
that was announced today (October 30, 2015).
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 Third Quarter of Fiscal Year 2015

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Millions of yen)
3Q 2015(As of Sep. 30, 2015)

Fiscal Year 2014
(As of Dec. 31, 2014)
AssetsCurrent assets
Cash and deposits

7,910

11,846

Notes and accounts receivable-trade

6,622

4,422

Merchandise and finished goods

21,591

21,510Accounts receivable-other

9,511

7,653

Other

8,230

7,022

Allowance for doubtful accounts

(311)

(229)

53,55452,224

Buildings and structures, net

13,963

16,769Land

12,311

12,121

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

Other, net

2,801

3,170

Total property, plant and equipment

29,07532,061Intangible assets
Goodwill

2,225

2,336

Other

3,154

2,903

Total intangible assets

5,380

5,239

Investment securities

6,155

10,168

Other

6,885

6,845

Allowance for doubtful accounts

(265)

(265)

Total investments and other assets

12,774

16,748Investments and other assets

Total non-current assets
Total assets-4-47,23154,049100,785

106,274

SENSHUKAI CO.,LTD. (8165) Financial Results for the Third Quarter of Fiscal Year 2015

(Millions of yen)
3Q 2015(As of Sep. 30, 2015)

Fiscal Year 2014
(As of Dec. 31, 2014)
Liabilities
Current liabilities
Electronically recorded obligations-operating

12,124

9,805

Accounts payable-trade

5,397

6,685

Short-term loans payable

2,747

2,222

Current portion of bonds

700

450

Income taxes payable

915

78

Provision for sales promotion expenses

219

364

Other

11,367

9,972

Total current liabilities

33,47029,578Non-current liabilities
Bonds payable

450-

Bonds with subscription rights to shares

7,000

7,000

Long-term loans payable

3,510

9,129

Net defined benefit liability
Other
Total non-current liabilities
Total liabilities

84

92

3,109

2,653

14,153

18,87547,62448,453

20,35922,304

Net assets
Shareholders’ equity
Capital stock
Capital surplus

21,03823,860Retained earnings

17,086

14,920Treasury shares(2,776)(14)

Total shareholders’ equity

55,707

61,070

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

1,261

1,743

Deferred gains or losses on hedges

2,780

1,592

Revaluation reserve for land

(6,724)(6,748)135

121(2,546)(3,290)Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

-5-

-

41

53,16057,820100,785

106,274

SENSHUKAI CO.,LTD. (8165) Financial Results for the Third Quarter of Fiscal Year 2015(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
Income(Quarterly Consolidated Statement of Income)(For the Nine-month Period)
3Q 2014(Jan. 1, 2014 – Sep. 30, 2014)(Millions of yen)
3Q 2015(Jan. 1, 2015 – Sep. 30, 2015)

Net sales

102,135

96,191

Cost of sales

54,15551,605Gross profit

47,97944,586

Selling, general and administrative expenses

47,142

47,207837(2,621)

Interest income

3179

Dividend income

79

76

Share of profit of entities accounted for using equity method

23

1,211

Gain on adjustment of account payable

169

208

Other

180

229

Total non-operating income

484

1,805

147

143

Commission fee

2

307

Other

80

70

Total non-operating expenses

229

521

1,092

(1,337)

Gain on sales of non-current assets

417Gain on sales of investment securities

023

Subsidy income-

150

Total extraordinary income

4190

Operating income (loss)
Non-operating income

Non-operating expenses
Interest expenses

Ordinary income (loss)
Extraordinary income

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

49

29

Loss on reduction of non-current assets-

148

Impairment loss

41

126

Loss on valuation of investment securities

150-

Loss on sales of investment securities

147

-

389

304

Income (loss) before income taxes and minority interests

Total extraordinary losses

707(1,451)

Income taxes

360

84

Income (loss) before minority interests

347(1,535)

0

(19)

346

(1,516)

Minority interests in income (loss)
Net income (loss)-6-

SENSHUKAI CO.,LTD. (8165) Financial Results for the Third Quarter of Fiscal Year 2015

(Quarterly Consolidated Statement of Comprehensive Income)(For the Nine-month Period)
3Q 2014(Jan. 1, 2014 – Sep. 30, 2014)(Millions of yen)
3Q 2015(Jan. 1, 2015 – Sep. 30, 2015)

347(1,535)

Valuation difference on available-for-sale securities

294

482

Deferred gains or losses on hedges

37(1,187)

Income (loss) before minority interests
Other comprehensive income

Revaluation reserve for land-

53

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

9

(12)

9

(1)

Total other comprehensive income

350

(665)

697

(2,201)

Comprehensive income attributable to owners of parent

697(2,181)

Comprehensive income attributable to minority interests

0

(19)

Comprehensive income
Comprehensive income attributable to-7-

SENSHUKAI CO.,LTD. (8165) Financial Results for the Third Quarter of Fiscal Year 2015

(3) Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Significant Changes in Shareholders’ Equity)
Senshukai has conducted the issuance of new shares through the third-party allotment to J.FRONT RETAILING
Co.,Ltd. and a disposal of treasury shares on May 7, 2015. Accordingly, capital stock and legal capital surplus
increased 1,945 million yen each by the third-party allotment in the cumulative third quarter. In addition, capitalsurplus increased 875 million yen and treasury shares decreased 2,762 million yen by the disposal of treasury
shares. As of the end of the third quarter of the current fiscal year, capital stock, capital surplus and treasury
shares were 22,304 million yen, 23,860 million yen and 14 million yen, respectively.
(Segment and Other Information)
I 3Q 2014 (Jan. 1, 2014 – Sep. 30, 2014)
1. Information related to sales and profit or loss for each reportable segment
Reportable segment
Corporates
Sub-total
business

Others(Note 1)

(Millions of yen)

Total

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

Bridalbusiness

90,386

8,534

2,843

101,763371

102,135-

102,135

612

-

89

702

0

703

(703)

-

90,998

8,534

2,933

102,466371

102,838(703)

102,135

Net sales
Sales to customers
Inter-segment sales
or transfers
Total

Segment profit
525
82
220
828
9
837
0
837
Notes: 1. Others represent the businesses which are not included in any of the three reportable segments and consist mainly of
the services business primarily offering insurance and credit card services, and childcare business.
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.
II 3Q 2015 (Jan. 1, 2015 – Sep. 30, 2015)
1. Information related to sales and profit or loss for each reportable segment
Reportable segment
Corporates
Sub-total
business

Others(Note 1)

(Millions of yen)

Total

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

Bridalbusiness

82,274

10,2193,111

95,605586

96,191-

96,191

615

-

111

727

0

728

(728)

-

82,88910,2193,223

96,332587

96,920(728)

96,191

Net sales
Sales to customers
Inter-segment sales
or transfers
Total

Segment profit (loss)(2,873)(38)
262(2,649)21(2,627)
6(2,621)
Notes: 1. Others represent the businesses which are not included in any of the three reportable segments and consist mainly of
the services business primarily offering insurance and credit card services, and childcare business.
2. The 6 million yen adjustment to segment profit (loss) comprises elimination for inter-segment transactions.
3. Segment profit (loss) is adjusted to be consistent with operating loss shown on the quarterly consolidated statementof income.

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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