Summary of Financial Results for the Fiscal Year 2016 (Ended December 31, 2016)[Japanese GAAP]
February 2, 2017

Company name: SENSHUKAI CO.,LTD.

Stock exchange: Tokyo Stock Exchange, First Section
Stock code:
8165
URL: http://www.senshukai.co.jp
Representative:
Mr. Hiroyuki Hoshino, President and Representative Director
Inquiries:
Mr. Takeshi Naito, Director, Executive Officer, in charge of Corporate Planning
Tel: +81-6-6881-3220
Scheduled date of annual general meeting of shareholders: March 30, 2017
Scheduled date of payment of dividend: March 31, 2017
Scheduled date of filing of Annual Security Report: March 31, 2017
Preparation of supplementary materials for financial results: Yes
Holding of financial results meeting: Yes(All amounts are rounded down to the nearest millions of yen)

1. Consolidated Financial Results for the Fiscal Year 2016 (January 1, 2016 – December 31, 2016)(1) Consolidated operating results(Percentages represent changes from the same period of the previous fiscal year)
Profit attributable toOperating income
Ordinary income
owners of parent

Net sales
Millions of yen%

Millions of yen%

Millions of yen

Fiscal Year 2016
129,074(3.9)
1,194
Fiscal Year 2015
134,321(5.8)(3,437)
Note: Comprehensive income (millions of yen) Fiscal Year 2016: (579) (-%)
Net income per
share

Diluted net income
per share

Yen

Yen

Fiscal Year 2016
27.26
24.16
Fiscal Year 2015
(108.03)
Reference: Equity in earnings (losses) of affiliates (millions of yen)

Millions of yen

%

1,673
1,420
(2,540)(5,307)
Fiscal Year 2015: (6,316) (-%)%-

Ordinary income to Operating income
total assets
to net sales

Return on equity
%

2.7
(9.9)
Fiscal Year 2016: 228

%

%

1.6
(2.5)
Fiscal Year 2015: 881

0.9
(2.6)

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

Fiscal Year 2016
101,959
52,572
Fiscal Year 2015
105,352
53,705
Reference: Shareholders’ equity (millions of yen) Fiscal Year 2016: 52,508

Net assets per share
%

Yen

51.5
51.0
Fiscal Year 2015: 53,678

1,009.26
1,028.17(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

3,825
3,400

94
(8,053)(1,580)11,06016,60014,303Fiscal Year 2016
Fiscal Year 2015

2. Dividends
1Q-endDividend per share
2Q-end 3Q-end Year-end

Yen

Yen

Yen

Yen

Total

Total dividends(total)Yen

Millions of yen

Payout ratio Dividend on equity(consolidated)(consolidated)%%

Fiscal Year 2015
4.00
4.00
8.00
417
Fiscal Year 2016
4.00
4.00
8.00
417
29.3
Fiscal Year 2017
4.00
4.00
8.00
41.6
(forecasts)
Note: The total dividends for Fiscal Year 2016 include a dividend of 1 million yen from the Senshukai stock held by the
executive stock compensation trust.

0.7
0.8

3. Consolidated Outlook for Fiscal Year 2017 (January 1, 2017 – December 31, 2017)(Percentages represent changes from the same period of the previous fiscal year)
Profit attributable to Net income
Operating income
Ordinary income
owners of parent
per share

Net sales
Millions of yen

2Q 2017 (cumulative)
Full Year 2017

68,900135,000% Millions of yen

4.6
4.6

350
1,350

% Millions of yen

13.0

750
1,650

% Millions of yen

313.3
(1.4)

500
1,000

%

Yen

208.0
(29.6)

9.61
19.22

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
Newly added: -Excluded: -(2) 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: None
4) Restatements: None
Note: Please refer to “5. Consolidated Financial Statements, (5) Notes to Consolidated Financial Statements (Changes in
Accounting Policies)” on page 15 for further information.

(3) Number of shares outstanding (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
Fiscal Year 2016:

52,230,393 sharesFiscal Year 2015:

52,230,393 sharesFiscal Year 2015:

23,256 sharesFiscal Year 2015:

49,135,108 shares

2) Number of treasury shares at the end of the period
Fiscal Year 2016:

203,527 shares

3) Average number of shares outstanding during the period
Fiscal Year 2016:

52,096,233 shares

Note: The Senshukai stock held by the trust that is recorded as treasury shares under shareholders’ equity is included in thenumber of treasury shares at the end of Fiscal Year 2016, and is deducted from the number of shares that is used to
calculate the average number of shares outstanding during Fiscal Year 2016.

(Reference) Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for Fiscal Year 2016 (January 1, 2016 – December 31, 2016)(1) Non-consolidated operating results(Percentages represent changes from the same period of the previous fiscal year)
Net income
Operating income
Ordinary income

Net sales
Fiscal Year 2016
Fiscal Year 2015

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

101,798
110,052

(7.5)
(9.7)

(95)
(4,627)-745(4,360)-1,052(5,701)-

Net income per share
Fiscal Year 2016
Fiscal Year 2015

Diluted net income per share

Yen

Yen

20.21
(116.05)

17.91-(2) Non-consolidated financial position
Total assets
Millions of yen

Net assets
Millions of yen

Fiscal Year 2016
88,88150,313Fiscal Year 2015
93,56051,431
Reference: Shareholders’ equity (millions of yen) Fiscal Year 2016: 50,313

Equity ratio

Net assets per share
%

56.6
55.0
Fiscal Year 2015: 51,431

Yen

967.07985.15* Disclosure regarding the implementation of audit proceduresThis financial report is not subject to the audit procedures based on the Financial Instruments and Exchange Act. Thus, at thetime of its disclosure, the financial statement audit procedures based on the Financial Instruments and Exchange Act have notbeen 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 page4.

SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016

Contents of Attachments
1. Analysis of Operating Results and Financial Position

2(1) Analysis of Operating Results

2(2) Analysis of Financial Position

3(3) Basic Policy Regarding Distribution of Earnings and Dividends in the Current and Next Fiscal Years

4(4) Outlook for Fiscal Year 20174

2. Group Organization

5

3. Management Policies

6(1) Basic Management Policy

6(2) Key Performance Indicators

6(3) Medium- to Long-term Corporate Management Strategy and Issues

6(4) Other Important Business Matters

7

4. Basic Approach for the Selection of Accounting Standards

7

5. Consolidated Financial Statements

8(1) Consolidated Balance Sheet

8(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

10

Consolidated Statement of Income

10

Consolidated Statement of Comprehensive Income11(3) Consolidated Statement of Changes in Equity

12(4) Consolidated Statement of Cash Flows

14(5) Notes to Consolidated Financial Statements

15

Going Concern Assumption

15

Changes in Accounting Policies

15

Additional Information

15

Notes to Consolidated Statement of Income

16

Segment and Other Information

18

Per Share Information

20

Subsequent Events20

6. Other21(1) Changes in Members of Board of Directors

21(2) Production, Orders and Sales

22

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SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016

1. Analysis of Operating Results and Financial Position(1) Analysis of Operating Results
Overview
In 2016, the Japanese economy continued to recover moderately against a backdrop of improvements in
employment situation and personal income. However, the economic outlook remained unclear because ofconcerns about slowing economic growth in China and other countries, effects of Brexit, policies of the new US
administration, and other events. In Japan’s retail sector, market conditions continued to be challenging.
Consumers were increasingly budget-minded and selective about purchases in association with the diversificationof life styles and needs as well as worries about the economic outlook.
Net sales in the current fiscal year decreased 3.9% year-over-year to 129,074 million yen, mainly because oflower sales in the mail-order business.
Although sales decreased, operating income was 1,194 million yen compared with a loss of 3,437 million yen in2015. This improvement was the result of a decrease in the cost to sales ratio and a decrease in selling, generaland administrative expenses resulting mainly from higher operating efficiency. Ordinary income was 1,673
million yen compared with a loss of 2,540 million yen in the previous fiscal year. Profit attributable to owners ofparent was 1,420 million yen compared with a loss of 5,307 million yen in the previous fiscal year, mainly due togain on sales of investment securities.
Overview by segment(Mail-order Business)
Consolidated sales in the mail-order business, centered on the catalog and the Internet businesses, decreased 6.5%
year-over-year to 106,606 million yen in the current fiscal year. The main reason was the weak performance ofapparel and fashion accessories, categories which represent relatively large shares of sales.
The segment’s loss was smaller than one year earlier mainly because of decreases in the cost to sales ratio andselling, general and administrative expenses. As a result, there was an operating loss of 240 million yen comparedwith a loss of 4,597 million yen in the previous fiscal year.
(Bridal Business)
Consolidated sales in the bridal business, centered on the house wedding business, increased 10.1%
year-over-year to 16,818 million yen due to contributions from the opening of new facilities. Operating income
increased 10.1% year-over-year to 751 million yen.
(Corporates Business)
Consolidated sales in the corporates business, which provides products and services to corporations, increased
8.6% year-over-year to 4,576 million yen, and operating income increased 40.6% to 517 million yen.
(Others)
Consolidated sales in other businesses, which provides services business (primarily insurance and credit card
services) and a childcare business, increased 26.5% year-over-year to 1,072 million yen, as two nursery schools
were opened in the childcare business. Operating income increased 50.9% to 146 million yen.

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SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016

(2) Analysis of Financial Position(Balance sheet position)
Assets totaled 101,959 million yen at the end of the current fiscal year, a decrease of 3,392 million yen from theend of the previous fiscal year.
Current assets increased 670 million yen to 52,618 million yen. The main factors were increases of 2,554 million
yen in merchandise and finished goods and 2,301 million yen in cash and deposits, while there were decreases of
1,963 million yen in accounts receivable-other and 1,961 million yen in forward exchange contracts. Non-current
assets decreased 4,063 million yen to 49,341 million yen. The factors were decreases of 2,418 million yen inproperty, plant and equipment, 949 million yen in intangible assets and 695 million yen in investments and otherassets.
Current liabilities decreased 2,111 million yen to 29,298 million yen. The main factors were decreases of 1,970
million yen in accounts payable-other and 719 million yen in electronically recorded obligations-operating, while
there was an increase of 493 million yen in accounts payable-trade. Non-current liabilities decreased 147 million
yen to 20,088 million yen. The main factors were decreases of 219 million yen in deferred tax liabilities and 202
million yen in deferred tax liabilities for land revaluation, while there were increases of 149 million yen in asset
retirement obligations and 118 million yen in long-term loans payable.
Net assets decreased 1,133 million yen to 52,572 million yen. The main factor was a decrease of 1,294 million
yen in deferred gains or losses on hedges. Consequently, the equity ratio was 51.5%.
(Cash flow position)
The balance of cash and cash equivalents at the end of the current fiscal year was 16,600 million yen, an increaseof 2,297 million yen from the end of the previous fiscal year.
Operating activities provided net cash of 3,825 million yen (net cash provided of 3,400 million yen in the previous
fiscal year). The main cash inflows were depreciation of 3,231 million yen, profit before income taxes of 1,957
million yen, and a decrease in other current assets of 1,220 million yen. The main cash outflows include anincrease in inventories of 2,565 million yen.
Investing activities provided net cash of 94 million yen (net cash used of 8,053 million yen in the previous fiscal
year). The main cash inflows were proceeds from sales of property, plant and equipment of 1,021 million yen andproceeds from sales of investment securities of 916 million yen. The main cash outflows include 1,583 million
yen for the purchase of property, plant and equipment.
Financing activities used net cash of 1,580 million yen (net cash provided of 11,060 million yen in the previous
fiscal year). The main cash inflows include the proceeds from long-term loans payable of 1,700 million yen. The
main cash outflows were 2,117 million yen for the repayments of long-term loans payable, 450 million yen forredemption of bonds and 418 million yen for cash dividends paid.
Cash flow indicesFiscal Year 2014
(As of Dec. 31, 2014)

Fiscal Year 2015
(As of Dec. 31, 2015)

Fiscal Year 2016
(As of Dec. 31, 2016)

Equity ratio (%)

52.7

51.0

51.5

Equity ratio based on fair value (%)

36.0

39.6

36.1

Ratio of interest-bearing debt to cash flows (years)

5.8

5.9

5.0

Interest coverage ratio (times)

13.8

17.1

23.7

Notes:

1. Cash flow indices are calculated, using consolidated financial figures, as follows:
The equity ratio is shareholders’ equity divided by total assets.
The equity ratio based on fair value is market capitalization divided by total assets.
The ratio of interest-bearing debt to cash flows is interest-bearing debt divided by the quantity of operating cash
flows.
The interest coverage ratio is operating cash flows divided by interest payments.
2. Market capitalization is calculated by multiplying the closing share price at the end of the period by the number of-3-

SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016

shares issued and outstanding at the end of the period, excluding treasury shares.
3. Interest-bearing debt includes short-term loans payable, bonds with subscription rights to shares, long-term loans
payable, and lease obligations shown on the consolidated balance sheet.
4. Operating cash flows and interest payments represent net cash provided by (used in) operating activities andinterest expenses paid, respectively, on the consolidated statement of cash flows.

(3) Basic Policy Regarding Distribution of Earnings and Dividends in the Current and Next Fiscal Years
The Group’s basic policy is to strengthen the business foundation while maintaining stable dividends, taking into
consideration the payout ratio, and ensuring a fair distribution of earnings to shareholders that reflects its businessperformance.
Specifically, the Group’s policy regarding the distribution of earnings to shareholders is to strive continuously fora payout ratio of 30% on a consolidated basis. The Group will use internal reserves to invest in the developmentof new businesses for the medium to long term, to promote the efficiency of existing businesses, to conduct
mergers and acquisitions for expanding the Group businesses, to improve the soundness of its financials, and to
generally further strengthen its competitiveness and operations. Based on the aforementioned policies, the Groupplans to pay a year-end dividend of 4 yen per share for Fiscal Year 2016 in line with initial plan. Together with aninterim dividend of 4 yen per share, total annual dividend of 8 yen per share is to be paid.
Regarding dividends in Fiscal Year 2017, we plan to pay a total annual dividend of 8 yen per share comprised of
an interim dividend of 4 yen per share and a year-end dividend of 4 yen per share, based on the earnings outlook
and to maintain stable dividends.
(4) Outlook for Fiscal Year 2017
The operating environment is expected to remain challenging in Fiscal Year 2017 as the unclear economic outlook
makes consumer reluctant to spend their money. In the core mail-order business, we plan to achieve a turnaroundby strengthening product competitiveness and sales capabilities in the e-commerce category. Another priority isimproving the profitability of the bridal business, our second core business.
Based on this outlook, our forecast for Fiscal Year 2017 is as follows.
Consolidated(Millions of yen)
Net sales

Operating income

Ordinary income

Net income

Fiscal Year 2017 (forecast)

135,000

1,350

1,650

1,000

Fiscal Year 2016 (results)

129,074

1,194

1,673

1,420

4.6

13.0

(1.4)

(29.6)

Change (%)* The above projections are based on information available at the time of release of this report. Actual results could differ fromprojections due to a variety of factors.

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SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016

2. Group Organization
The Senshukai Group comprises the parent company, 17 subsidiaries, 12 affiliates, and 1 other affiliated company.
Mail-order Business is the mainstay business, and we also operate the Bridal Business, Corporates Business andothers.
The following describes the position of each major business activity in the Group’s operations and business segments.
Segment
Mail-order
Business

Major business activity
Mail order

Telemarketing
Logistics system
Bridal BusinessCorporates Business
OthersCompany
Senshukai Co.,Ltd., Mobakore Co.,Ltd.,
Belle Neige Direct Co.,Ltd., Shanghai Senshu Merchant andCommerce Co., Ltd., and 15 other companies
Senshukai Call Center Co., Ltd.
Belle Maison Logisco Co., Ltd., Senshu Logisco Co., Ltd.
Dears Brain Inc., Watabe Wedding Corporation and 3 other companies
Senshukai Co.,Ltd.
Senshukai Child Care Co.,Ltd., Senshukai General Services Co., Ltd.,and 1 other company

Schematic of businesses

Subsidiary accounted for by the equity method
Affiliate accounted for by the equity method
Affiliate not accounted for by the equity method

Other affiliated company
Consolidated subsidiaryNon-consolidated subsidiary

Mail-order
Business

BridalBusiness

Corporates
Business

OthersMobakore Co.,Ltd.

1 consolidated
subsidiary

Belle Maison LogiscoCo., Ltd.

Belle Neige Direct
Co.,Ltd.

Watabe Wedding
Corporation

Senshu LogiscoCo., Ltd.

1 non-consolidated
subsidiary

Outsources
product packing
and packaging

1 non-equity-method
affiliate

Capital and businessalliance

J.FRONT RETAILING Co.,Ltd.

Other
outsourcing
services

3 consolidated
subsidiaries

SenshukaiHong Kong
Ltd.

Outsources productinspection

2
non-equitymethod
affiliates

Outsources
buyingproducts

Senshukai Co.,Ltd.
Purchases
products

Purchases products

Shanghai Senshu
Merchant andCommerce Co., Ltd.

Purchases products

SENTENs Co., Ltd.

Outsources buying products, etc.

Mainichi ga Hakken
Inc.

Outsources order processing

Senshukai Iihana
Co., Ltd.

Purchases products

Dears Brain Inc.

Luckwin GF China
Co., Ltd.
5 non-equity-method
affiliates

Suppliers-5-

Provides services

Senshukai Call
Center Co., Ltd.

Provides solution and promotional services

Providesservices

Orderprocessing

Sell products

Sell products

Sell products

Customers
Customers

Senshukai Child
Care Co.,Ltd.
Senshukai General
Services Co., Ltd.
1 non-consolidated
subsidiary

SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016

3. Management Policies(1) Basic Management Policy
The Senshukai Group’s corporate philosophy is to “contribute to society by providing customers with outstanding
products and services.”
Senshukai works together with its shareholders, customers, business partners, employees, and all otherstakeholders to enhance corporate value and mutual prosperity.
(2) Key Performance Indicators
Under the slogan “Innovate for Smiles 2018” of our medium-to long-term management plan (Fiscal Year 2014
through Fiscal Year 2018), the entire Group is committed to building a solid and distinct position in the mail-ordermarket and to develop new businesses appropriate to our corporate vision “Women's Smiles Company.”Specifically, our targets for Fiscal Year 2018 are consolidated net sales of 165 billion yen, operating income of 5billion yen, and a return on equity of 7%.
Going forward, we aim to enhance corporate value by striving for more unified group management, boosting
growth, and constructing a solid earnings foundation.
(3) Medium- to Long-term Corporate Management Strategy and Issues
The Group formulated a five-year medium- to long-term management plan “Innovate for Smiles 2018” to enhance
its corporate value.
Progress in the Medium- to Long-term Management Plan
1) Mail-order BusinessWe continue to focus on the following activities: offering private brands that precisely target the requirementsof specific customer segments; implementing merchandise planning that allows each private brand to succeedin every sales channel (e-commerce, catalogs, stores and others); developing an SPA (Specialty store retailer ofPrivate-label Apparel) business structure that encompasses each step from planning and manufacture to sales;
and improving each sales channel with the goal of establishing an omni-channel framework.
In conjunction with the alliance established with J.FRONT RETAILING Co., Ltd., we started selling Kcaratbrand women’s apparel and BENEBIS brand women’s shoes at the stores of Daimaru Matsuzakaya Department
Stores Co.Ltd. in 2016. We will continue to focus on strengthening the competitive edge of our private branditems and expanding marketing channels.
2) Bridal BusinessTo solidify our position as a leading company in the bridal business, we continued to utilize our alliance with
Watabe Wedding Corporation with the goal of becoming more profitable.
3) Corporates BusinessTo take advantage of the growth of the mail-order business, we plan to step up activities to offer various
outsourced services for companies that want to start a B-to-C business.
4) Others
We are actively expanding the childcare business for preschool age children that we started in Fiscal Year 2014.
At present, we operate six childcare facilities in Tokyo and Chiba, and we plan to open a childcare facility in
Shinagawa-ku, Tokyo in April 2017. We will continue to grow and expand the childcare business while
prioritizing the quality of childcare service we provide.

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SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016(4) Other Important Business Matters
Not applicable.
4. Basic Approach for the Selection of Accounting Standards
The Senshukai Group has a policy of preparing its consolidated financial statements using Japanese GAAP for thetime being to facilitate comparisons with prior-year performance and the performance of other companies in Japan.
We will take suitable actions with regard to the application of the International Financial Reporting Standards(IFRS) by taking into account trends in our industry peers in Japan and associated factors in Japan and othercountries.

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SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016

5. Consolidated Financial Statements(1) Consolidated Balance Sheet(Millions of yen)
Fiscal Year 2015
(As of Dec. 31, 2015)

Fiscal Year 2016
(As of Dec. 31, 2016)

AssetsCurrent assets
Cash and deposits

14,303

16,605

Notes and accounts receivable-trade

4,046

3,889

Merchandise and finished goods
Raw materials and supplies

18,025

20,580

146

141

Deferred tax assets

230

581

Accounts receivable-other

9,781

7,818

Forward exchange contracts

1,961

-

Other

3,675

3,153

Allowance for doubtful accounts

(222)

(152)

51,94752,61840,782

41,033

Accumulated depreciation(24,730)(24,904)

Buildings and structures, net

16,052

16,128

Machinery, equipment and vehicles

9,013

8,801

(8,032)(8,010)981

790

Tools, furniture and fixtures

2,948

2,858

Accumulated depreciation(1,990)(2,086)957

771

12,091

11,310Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Accumulated depreciation
Machinery, equipment and vehicles, net

Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation

883

979

(402)

(443)

Leased assets, net

481

536

Construction in progress

1,406

13

Total property, plant and equipment

31,97029,551

Goodwill

2,243

2,027

Other

2,853

2,120

Total intangible assets

5,097

4,147

Investment securities

9,877

8,651

Long-term loans receivable

1,026

1,202

Lease and guarantee deposits

1,901

1,826

131

109

3,666

4,119

Intangible assets

Investments and other assets

Deferred tax assets
Other
Allowance for doubtful accounts

(265)

(266)

Total investments and other assets

16,337

15,64253,40449,341

105,352

101,959

Total non-current assets
Total assets-8-

SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016

(Millions of yen)
Fiscal Year 2016
(As of Dec. 31, 2016)

Fiscal Year 2015
(As of Dec. 31, 2015)
Liabilities
Current liabilities
Electronically recorded obligations-operating

11,084

10,365

Accounts payable-trade

5,346

5,840

Short-term loans payable

2,111

1,546

Current portion of bonds

450-

Lease obligations

117

122

Accounts payable-other

7,353

5,383

Accrued expenses

2,477

2,008

Income taxes payable

121

387

Accrued consumption taxes

325

534

Provision for sales promotion expenses

402

437

Other

1,618

2,672

Total current liabilities

31,41029,298

Bonds with subscription rights to shares

7,000

7,000

Long-term loans payable

9,181

9,300

Lease obligations

1,122

1,140

Deferred tax liabilities

Non-current liabilities

1,527

1,308

Deferred tax liabilities for land revaluation

535

333

Net defined benefit liability

93

98

Provision for management board incentive plan trust

-

9

586

735

Asset retirement obligations
Other

189

162

20,23620,08851,64749,387

Capital stock

22,30422,304

Capital surplus

23,86023,860Retained earnings

11,00912,385

(15)

(151)

57,15958,399

1,756

1,271

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

1,282

(11)

Revaluation reserve for land

(6,629)(6,983)Foreign currency translation adjustment

110

(143)

Remeasurements of defined benefit plans

(1)

(23)

(3,481)(5,890)Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

-9-

27

64

53,70552,572

105,352

101,959

SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)Net sales
Cost of sales

Fiscal Year 2015
(Jan. 1, 2015 – Dec. 31, 2015)
134,321*1
73,442(Millions of yen)
Fiscal Year 2016
(Jan. 1, 2016 – Dec. 31, 2016)
129,074*1
67,087Gross profit

60,87961,986

Selling, general and administrative expenses
Freightage and packing expenses
Promotion expenses
Provision for allowance for sales promotion expenses
Provision of allowance for doubtful accounts
Directors’ compensations
Salaries and allowances
Bonuses
Depreciation
Other

7,486
18,078402
135
555
11,1871,545
2,880
22,044

6,868
16,795437
100
393
11,014
1,410
3,198
20,573

Total selling, general and administrative expenses*264,316

Operating income (loss)

90
100

28
103

881

228

264
197

256
200

1,534

816

188
308
140

156
57
124

Total non-operating income
Non-operating expenses
Interest expenses
Commission fee
Miscellaneous loss
Total non-operating expenses
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Subsidy income
Gain on transfer of business

60,791
1,194

Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodGain on adjustment of account payable
Miscellaneous income

Ordinary income (loss)*2(3,437)638

338(2,540)

1,673*3Total extraordinary income

18
23
150
149

*3

341

Extraordinary losses
Loss on sales and retirement of non-current assets
Loss on reduction of non-current assets
Impairment loss
Special retirement expenses
Other

*4
*5

55
148
993
414
22

34
436
511
983

*4
*5

31
485
139
42

Total extraordinary losses

1,634

698

Profit (loss) before income taxes(3,834)

1,957

Income taxes-current
Income taxes-deferred

163
1,343

337
163

Total income taxes

1,507

501

Profit (loss)(5,341)

1,456

Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent- 10 -(33)

36(5,307)

1,420

SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016

(Consolidated Statement of Comprehensive Income)Fiscal Year 2015
(Jan. 1, 2015 – Dec. 31, 2015)
Profit (loss)(5,341)(Millions of yen)
Fiscal Year 2016
(Jan. 1, 2016 – Dec. 31, 2016)
1,456

Other comprehensive income
Valuation difference on available-for-sale securities

497

(476)

(1,501)(1,159)

Revaluation reserve for land

53

18

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

(17)

(38)

(6)

(379)

Total other comprehensive income(975)(2,036)(6,316)(579)(6,283)

(616)

(33)

36

Deferred gains or losses on hedges

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 11 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016

(3) Consolidated Statement of Changes in Equity
Fiscal Year 2015 (Jan. 1, 2015 – Dec. 31, 2015)(Millions of yen)

Balance at beginning of current
periodChanges of items during period
Issuance of new shares

Capital stock

Capital surplus

20,35921,038

1,945

1,945

Shareholders’ equity
Retained
Treasury sharesearnings
17,086(2,776)55,707

3,891

Dividend of surplus
Loss attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Reversal of revaluation reserve
for landNet changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period

Total shareholders’equity

(728)

(728)

(5,307)(5,307)

875

(0)

(0)

2,762

3,637

(40)

(40)

1,945

2,821

(6,077)

2,761

1,451

22,30423,86011,009(15)

57,159(Millions of yen)

Accumulated other comprehensive income
Valuation
Total
NonDeferred
Foreign
Total netdifference on
Revaluation
Remeasurements accumulated
controlling
gains orcurrency
assetsavailable-forreserve forof defined benefit
otherinterests
losses ontranslation
sale
land
plans
comprehensive
hedgesadjustment
securities
incomeBalance at
beginning ofcurrent period
Changes of items
during period
Issuance of newsharesDividend of
surplus
Loss attributableto owners ofparentPurchase oftreasury shares
Disposal oftreasury shares
Reversal ofrevaluation
reserve for land
Net changes of
items other thanshareholders’equityTotal changes of
items during period
Balance at end ofcurrent period

1,261

2,780

(6,724)135-(2,546)-53,160

3,891
(728)

(5,307)
(0)
3,637
(40)

495

(1,497)

94

(24)

(1)

(934)

27

(907)

495

(1,497)

94

(24)

(1)

(934)

27

544

1,756

1,282

(6,629)110(1)(3,481)27

53,705- 12 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016

Fiscal Year 2016 (Jan. 1, 2016 – Dec. 31, 2016)(Millions of yen)

Balance at beginning of current
periodChanges of items during period

Capital stock

Capital surplus

22,30423,860Shareholders’ equity
Retained
Treasury sharesearnings
11,009Dividend of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Reversal of revaluation reserve
for landNet changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period

Total shareholders’equity(15)

57,159

(416)

(416)

1,420

1,420

0

(136)

(136)

0

0

372

372

-

0

1,375

(136)

1,239

22,30423,86012,385(151)

58,399(Millions of yen)

Accumulated other comprehensive income
Valuation
Total
NonDeferred
Foreign
Total netdifference on
Revaluation
Remeasurements accumulated
controlling
gains orcurrency
assetsavailable-forreserve forof defined benefit
otherinterests
losses ontranslation
sale
land
plans
comprehensive
hedgesadjustment
securities
incomeBalance at
beginning ofcurrent period
Changes of items
during period
Dividend of
surplusProfit attributableto owners ofparentPurchase oftreasury shares
Disposal oftreasury shares
Reversal ofrevaluation
reserve for land
Net changes of
items other thanshareholders’equityTotal changes of
items during period
Balance at end ofcurrent period

1,756

1,282

(6,629)110(1)(3,481)27

53,705

(416)
1,420
(136)
0
372

(484)

(1,294)

(353)

(254)

(21)

(2,409)36(2,372)(484)(1,294)

(353)

(254)

(21)

(2,409)36(1,133)

1,271

(11)

(6,983)

(143)

(23)

(5,890)64

52,572- 13 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016

(4) Consolidated Statement of Cash Flows(Millions of yen)
Fiscal Year 2015
Fiscal Year 2016
(Jan. 1, 2015 – Dec. 31, 2015) (Jan. 1, 2016 – Dec. 31, 2016)
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for sales promotion expenses
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using equity method
Loss (gain) on sales of investment securities
Loss (gain) on sales and retirement of non-current assets
Loss on reduction of non-current assets
Subsidy income
Loss (gain) on transfer of business
Extra retirement payment
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes (paid) refund
Extra retirement payments
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from subsidy income
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from redemption of investment securities
Purchase of shares of subsidiaries
Proceeds from transfer of business
Other, net
Net cash provided by (used in) investing activities
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 share issuance to non-controlling shareholders
Redemption of bonds
Proceeds from issuance of common shares
Purchase of treasury shares
Proceeds from disposal of treasury shares
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 14 -(3,834)
2,921
993
(88)
183
(191)
188
(881)
(23)
37
148
(150)
(149)
414
2,556
3,559
1,150
(1,246)
(298)
(485)
4,805
193
(199)
(1,398)
3,400

1,957
3,231
139
(70)
34
(131)
156
(228)
(436)
(2)
485
(511)
372
(2,565)
1,220
101
(995)
1,191
3,949
151
(161)
300
(414)
3,825

(4,925)
209
(828)
150
(1,000)1,300(2,643)
152
300
(612)
(153)
(8,053)(1,583)
1,021
(613)
257
100
(89)
916
(100)
216
(30)
94

(70)
7,800
(2,693)
80
(700)
3,868
(0)
3,637
(730)
(130)
11,060
(15)
6,393
7,910
14,303(30)
1,700(2,117)
(450)
(136)
0
(418)
(128)
(1,580)(41)
2,297
14,303
16,600SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Changes in Accounting Policies(Application of the Accounting Standard for Business Combinations, etc.)
The Company has applied the “Accounting Standard for Business Combinations” (Accounting Standards Board ofJapan (ASBJ) Statement No. 21, September 13, 2013), “Accounting Standard for Consolidated Financial
Statements” (ASBJ Statement No. 22, September 13, 2013), “Accounting Standard for Business Divestitures”(ASBJ Statement No. 7, September 13, 2013), etc. from the current fiscal year. Accordingly, difference arisingfrom changes in the Company’s ownership interests in subsidiaries in cases where control is retained is recognizedin capital surplus, and acquisition-related costs in connection with business combinations are recognized as
expenses in the fiscal year in which they arise. Regarding business combinations that take place on or after the
beginning of the current fiscal year, the Company has revised the method to reflect reviewed allocation of theacquisition costs arising from determination of the provisional accounting treatment on the consolidated financial
statements to which the date of the business combination belongs. In addition, the presentation of net income andother items has been revised, and the minority interests item has been renamed non-controlling interests. For
consistency with these changes, the consolidated financial statements for the previous fiscal year have beenrevised.
The Company has adopted these accounting standards, etc. from the beginning of the current fiscal year, in
accordance with the transitional accounting treatments set forth in Article 58-2 (4) of the Accounting Standard forBusiness Combinations, Article 44-5 (4) of the Accounting Standard for Consolidated Financial Statements, andArticle 57-4 (4) of the Accounting Standard for Business Divestitures.
The application of these standards has no effect on the consolidated financial statements.
(Application of Practical Solution on a Change in Depreciation Method due to Tax Reform 2016)
Following the change in the Corporation Tax Act, the Company has applied the “Practical Solution on a Change inDepreciation Method due to Tax Reform 2016” (ASBJ Practical Issues Task Force (PITF) No. 32, June 17, 2016)
from the current fiscal year, and changed the depreciation method for equipment attached to buildings andstructures acquired on or after April 1, 2016, from the declining-balance method to the straight-line method.
The effect of this change on the consolidated financial statements is insignificant.
Additional Information(Performance-linked Stock Compensation Plan for Directors and Executive Officers)
The Company has a stock compensation plan for directors (excluding outside directors) and executive officers thatis linked to the company’s performance. The purpose of this plan is to increase the motivation of these directors
and executive officers to improve the Group’s medium- to long-term performance and achieve growth incorporate value. For the accounting treatment of this plan, which uses a trust, the Company uses the gross methodin accordance with “Practical Solution on Transactions of Delivering the Company’s Own Stock to Employees etc.
through Trusts” (ASBJ PITF No. 30, March 26, 2015).
1. Summary of the plan
For this plan, the Company has made a contribution to establish a trust that purchases the Company’s stock anddistributes this stock to eligible individuals. The number of shares given to directors and executive officers by thetrust is based on points granted to these directors and executive officers in accordance with their positions andability to achieve their performance targets. As a result, these individuals receive stock as compensation that is
linked to the Company’s results of operations. In principle, directors and executive officers receive the Company’s
stock from the trust when their terms of office end or they resign or retire. This plan covers the period of three- 15 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016

years from the end of December 2016 to the end of December 2018.
2. The Company’s stock held by the trust
The Company’s stock held by the trust is included in net assets as treasury shares at book value (excluding
associated expenses). There were 180,000 shares with a book value of 136 million yen at the end of the current
fiscal year.
(Application of Implementation Guidance on Recoverability of Deferred Tax Assets)
Beginning with consolidated financial statements for the current fiscal year, the Company has applied the“Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26, March 28, 2016)
because the use of this guidance was permitted starting with consolidated financial statements at the end of thecurrent fiscal year.
Notes to Consolidated Statement of Income*1. The ending inventory is the amount written down to reflect the effect of lower profit margins. The following loss on
valuation of inventories is included in cost of sales.
(Millions of yen)
Fiscal Year 2015
Fiscal Year 2016
(Jan. 1, 2015 – Dec. 31, 2015)(Jan. 1, 2016 – Dec. 31, 2016)
361
330*2. R&D expenses included in general and administrative expenses

161(Millions of yen)
Fiscal Year 2016
(Jan. 1, 2016 – Dec. 31, 2016)
134

15
2
18

(Millions of yen)
Fiscal Year 2016
(Jan. 1, 2016 – Dec. 31, 2016)
31
3
Total
34

Fiscal Year 2015
(Jan. 1, 2015 – Dec. 31, 2015)*3. Gain on sales of non-current assets
Fiscal Year 2015
(Jan. 1, 2015 – Dec. 31, 2015)
Land
Other
Total

Land
Other

*4. Loss on sales and retirement of non-current assets
Fiscal Year 2015
(Jan. 1, 2015 – Dec. 31, 2015)
Loss on sales of buildings and structures
Loss on retirement of intangible assets
Other
Total

(Millions of yen)
Fiscal Year 2016
(Jan. 1, 2016 – Dec. 31, 2016)28
Loss on retirement of construction in progress
2
Loss on retirement of intangible assets
1
Other
31
Total

19
20
15
55

- 16 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016

*5. Impairment loss
The Senshukai Group posted impairment loss on the following asset groups.
Fiscal Year 2015 (Jan. 1, 2015 – Dec. 31, 2015)(Millions of yen)
Location

Primary use

Type

Impairment loss

Senshukai Co.,Ltd.
Assets for the mail-order
Buildings and structures,
61
Misato City, Saitama, and others
businessand others
Senshukai Co.,Ltd.
Buildings and structures,
Other business assets
21
Chiyoda-ku, Tokyoand others
Belle Neige Direct Co.,Ltd.
Assets for the mail-order
Intangible assets, and50
Chiyoda-ku, Tokyo, and others
businessothersDears Brain Inc.
Assets for the bridal
Leased assets, and others
757
Chuo-ku, Fukuoka, and others
business
Senshukai Co.,Ltd.
Assets to be soldLand
102
Fujimino City, Saitama, and others
In principle, business assets are based on categories of management accounting. Assets to be sold are accounted
independently.
Of the above asset groups, the Company marked down the book value of business assets to the recoverable amount reflecting
weak prospects for improved short-term performance due to worsening operating profitability, and it marked down the bookvalue of assets to be sold to the recoverable amount because of a decrease in the assets’ market value. These markdowns werebooked as an impairment loss.
The impairment loss on buildings and strucures, tools, furniture and fixtures, leased assets, intangible assets and land were
390 million yen, 14 million yen, 446 million yen, 38 million yen, and 102 million yen, respectively.
The recoverable amount of these business assets was measured at its value in use and calculated by discounting future cash
flows using a discount rate of 2.3%. The recoverable amount of assets to be sold was calculated based on the projected sales
value.
Fiscal Year 2016 (Jan. 1, 2016 – Dec. 31, 2016)(Millions of yen)
Location

Primary use

TypeSenshukai Co.,Ltd.
Tools, furniture andIdle assets
Kita-ku, Osaka City
fixtures
Senshukai Co.,Ltd.
Assets for the mail-order
Buildings and structures,
Yamatokoriyama City, Nara, andbusinessand others
othersDears Brain Inc.
Assets for the bridal
Tools, furniture andChuo-ku, Fukuoka City
business
fixtures
In principle, business assets are based on categories of management accounting.

Impairment loss
124
12
2

Of the above asset groups, the Company marked down the book value of business assets to the recoverable amount reflecting
weak prospects for improved short-term performance due to worsening operating profitability, and it marked down the bookvalue of idle assets to the recoverable amount because there are no prospects at this time for these assets to be used again.
These markdowns were booked as an impairment loss.
The impairment loss on buildings and strucures, and tools, furniture and fixtures were 11 million yen and 127 million yen,respectively.
The recoverable amount of these business assets was measured at its value in use and calculated by discounting future cash
flows using a discount rate of 1.4%. The net selling price of idle assets were calculated by using reasonable estimates thatreflect market values.

- 17 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016

Segment and Other Information
1. Overview of reportable segment
Segments used for financial reporting are the Company’s constituent units for which separate financial
information is available and for which the Board of Directors performs periodic studies for the purposes ofdetermining the allocation of resources and evaluating performance.
The Senshukai Group primarily operates the mail-order business, bridal business, and corporates business, andthe Company and its group companies manage each of these businesses according to these classifications.
Therefore the Group, comprised of these different business segments, has three reportable segments: themail-order business, bridal business, and corporates business.
The mail-order business is engaged in mail-order sales via a variety of media centered on catalogs and theInternet. The bridal business provides mostly house wedding services. The corporates business uses theCompany’s infrastructure to provide solutions services and promotional services targeting mail-order companies
and e-commerce businesses.
2. Calculation methods for net sales, profit/loss, assets, and other items for each reportable segment
The accounting methods for reportable segments are the same as those used for preparing the consolidated
financial statements.
Profits for reportable segments are generally operating income figures.
Inter-segment sales or transfers are based on market prices.
3. Information related to sales and profit or loss, assets, and other items for each reportable segment
Fiscal Year 2015 (Jan. 1, 2015 – Dec. 31, 2015)
Reportable segment(Millions of yen)Amounts shown on
Adjustment
consolidated(Note 2) financial statements(Note 3)Mail-orderbusiness

Bridalbusiness

Corporates
business

Sub-total

Others(Note 1)

Sales to customers
Inter-segment sales
or transfers
Total

113,976

15,281

4,214

133,473848

134,321-

134,321

874

0

128

1,002

0

1,003

(1,003)-

114,850

15,281

4,343

134,475848

135,324(1,003)

134,321

Segment profit (loss)(4,597)682

367(3,547)97(3,449)12(3,437)

Segment assets

87,833

20,786712

109,332

592

109,924(4,571)

105,352

Total

Net sales

Other items
Depreciation
1,947
925
27
2,901
20
2,921
2,921
Amortization of
52
207
260
260
260
goodwill
Investment inequity-method
778
3,219
3,998
3,998
3,998
affiliates
Increase in property,
plant and equipment
3,098
3,152
12
6,263
37
6,300
6,300
and intangible assets
Notes: 1. Others represent the businesses which are not included in any of the three reportable segments and consist mainly of theservices business primarily offering insurance and credit card services, and childcare business.
2. Adjustments are as follows.
(1) The 12 million yen adjustment to segment profit (loss) comprises elimination for inter-segment transactions.
(2) The (4,571) million yen adjustment to segment assets comprises elimination for inter-segment transactions.
3. Segment profit (loss) is adjusted to be consistent with operating loss shown on the consolidated statement of income.

- 18 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016

Fiscal Year 2016 (Jan. 1, 2016 – Dec. 31, 2016)
Reportable segment(Millions of yen)Amounts shown on
Adjustment
consolidated(Note 2) financial statements(Note 3)Mail-orderbusiness

Bridalbusiness

Corporates
business

Sub-total

Others(Note 1)

Total

Sales to customers
Inter-segment sales
or transfers
Total

106,606

16,818

4,576

128,001

1,072

129,074-

129,074

988

0

106

1,094

0

1,095

(1,095)-

107,594

16,8184,682

129,096

1,073

130,169(1,095)129,074

Segment profit (loss)

(240)

751

517

1,028

146

1,174

20

1,194

83,002

20,145753

103,901

738

104,640(2,680)101,959

Net sales

Segment assets
Other items

Depreciation
2,181
1,009
24
3,215
15
3,231
3,231
Amortization of
216
216
216
216
goodwill
Investment inequity-method
865
2,961
3,826
3,826
3,826
affiliates
Increase in property,
plant and equipment
701
883
23
1,607
115
1,723
1,723
and intangible assets
Notes: 1. Others represent the businesses which are not included in any of the three reportable segments and consist mainly of theservices business primarily offering insurance and credit card services, and childcare business.
2. Adjustments are as follows.
(1) The 20 million yen adjustment to segment profit (loss) comprises elimination for inter-segment transactions.
(2) The (2,680) million yen adjustment to segment assets comprises elimination for inter-segment transactions.
3. Segment profit (loss) is adjusted to be consistent with operating income shown on the consolidated statement of income.

- 19 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016

Per Share Information
Fiscal Year 2015
(Jan. 1, 2015 – Dec. 31, 2015)(Yen)
Fiscal Year 2016
(Jan. 1, 2016 – Dec. 31, 2016)

Net assets per share

1,028.17

1,009.26

Net income (loss) per share(108.03)

27.26

Diluted net income per share

-

24.16

Notes: 1. Diluted net income per share in Fiscal Year 2015 is not presented since the Company has outstanding dilutive securities,
though posted a net loss
2. The Company’s stock held by the executive stock compensation trust is included in treasury shares, which is deductedfrom the number of shares outstanding at the end of the period for the calculation of net assets per share (deduction of
180,000 shares in Fiscal Year 2016). In addition, this trust stock is included in treasury shares, which is deducted fromthe average number of shares outstanding during the period for the calculation of net income per share and diluted net
income per share (deduction of 180,000 shares in Fiscal Year 2016).
3. Basis for calculation of net income (loss) per share and diluted net income per share are as follows.
(Millions of yen)
Fiscal Year 2015
Fiscal Year 2016
(Jan. 1, 2015 – Dec. 31, 2015)(Jan. 1, 2016 – Dec. 31, 2016)
Net income (loss) per share
Profit (loss) attributable to owners of parent(5,307)

1,420

-

-

(5,307)

1,420

49,13552,096

Amounts unavailable to common shareholders
Profit (loss) attributable to owners of parent related tocommon stock
Average number of shares outstanding during the period(thousand shares)
Diluted net income per share
Adjustment to profit attributable to owners of parent--

Increase in number of common stock (thousand shares)

-

6,679

-]

[ 6,679]--[Including: subscription rights to shares (thousand shares)][

Number of residual securities with no dilution excluded
from calculation of diluted net income per share

Subsequent Events
Not applicable.

- 20 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016

6. Other(1) Changes in Members of Board of Directors
1) Change in Representative Director
Not applicable.
2) Changes in Other Directors and Executive Officers (as of March 30, 2017)
 Candidate for Directors
Director and Executive Officer:
Director and Executive Officer:
Director:
Outside Director:

Outside Director:

Koichi Ishida (current Executive Officer, in charge of Sales Planning)
Yoshihiro Ogawa (current Executive Officer, in charge of BELLE
MAISON Division)
Hideyuki Ikeda (current Special Projects Manager, Daimaru Matsuzakaya
Department Stores Co.Ltd., Advisor of the Company)
Naoto Terakawa (current President and Representative Director of Tera
Management Design Co.Ltd., President and Representative Director ofIndigo Blue Co., Ltd., Outside Director of PanaHome Corporation)
Naomi Aoyama (current Representative Director of Stylebis Ltd.) Retiring Directors and Executive Officers
Director and Executive Officer:
Outside Director:
Outside Director:
Outside Director:
Executive Officer:
Executive Officer:

Kazuhisa Masutani (current President and Representative Director,
Senshukai Call Center Co., Ltd.)
Tomoko Oishi (current Professor of Business Administration Department,
Kyoto Gakuen University)
Toshikatsu Sano
Takahiro Imazu (current Executive Officer, J.FRONT RETAILING
Co.,Ltd.)
Shigeru Nakayama (currently on assignment at Daimaru Matsuzakaya
Department Stores Co.Ltd.)
Chie Tomari (current Executive Officer in charge of Bridal Business, on
assignment at PLANETWORK CO., LTD.)

Mr. Kazuhisa Masutani will remain President and Representative Director of Senshukai Call Center Co., Ltd.
following his retirement as a Senshukai director and executive officer.
Mr. Shigeru Nakayama and Ms. Chie Tomari will remain at their current assignments at Daimaru
Matsuzakaya Department Stores and PLANETWORK, respectively, following their retirement as Senshukai
executive officers.
 Candidate for Auditor(Full-time) Auditor:

Yoshiharu Kitahara (current President and Representative Director, BELLE
MAISON LOGISCO CO., LTD.)- 21 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2016(2) Production, Orders and Sales
1) Production
There were no production activities.
2) Orders
There were no production activities in response to orders received.
3) SalesSales by business segment(Millions of yen)

Mail-order businessBusiness segments andmain items

Fiscal Year 2015
(Jan. 1, 2015 – Dec. 31, 2015)
AmountFiscal Year 2016
(Jan. 1, 2016 – Dec. 31, 2016)

Share (%)

AmountChangeChange (%)

Share (%)

Apparel

50,86737.9

44,96434.9(5,903)(11.6)

Interior goods

28,46921.2

28,648

22.2

178

0.6

Household goods

15,10811.3

13,96810.8(1,140)(7.5)

Fashion accessories

12,214

9.1

10,615

8.2(1,599)(13.1)

Foods

5,816

4.3

6,732

5.2

916

15.8

Others

1,499

1.1

1,676

1.3

177

11.8

113,976

84.9

106,606

82.6(7,370)(6.5)

Bridal business

Subtotal

15,281

11.4

16,818

13.0

1,536

10.1

Corporates business

4,214

3.1

4,576

3.6

362

8.6

Others
Total

848

0.6

1,072

0.8

224

26.5

134,321100.0

129,074

100.0(5,247)(3.9)

Note: The figures above are stated exclusive of consumption taxes.

* 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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