Summary of Financial Results for the First Quarter of Fiscal Year 2016
(Three Months Ended March 31, 2016)[Japanese GAAP]
April 28, 2016

Company name: SENSHUKAI CO.,LTD.

Stock exchange: Tokyo Stock Exchange, First Section
8165
URL: http://www.senshukai.co.jp
Mr. Hiroyuki Hoshino, President and Representative Director
Mr. Takeshi Naito, Director, Executive Officer,
General Manager of the Corporate Development Division
Tel: +81-6-6881-3220
Scheduled date of filing of Quarterly Report: May 12, 2016
Scheduled date of payment of dividend: Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting: None
Stock code:
Representative:
Inquiries:(All amounts are rounded down to the nearest millions of yen)

1. Consolidated Financial Results for the 1st Quarter of 2016 (January 1, 2016 – March 31, 2016)(1) Consolidated operating results (cumulative)(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%

1Q 2016
30,599(1.6)(1,716)
1Q 201531,086 (16.5)(1,817)
Note: Comprehensive income (millions of yen)
1Q 2016: (2,790) (- %)-Millions of yen%

Millions of yen%(1,222)(1,719)1Q 2015: (972) (- %)(735)(1,164)-

Net income per share

Diluted net income per share

Yen

Yen

(14.09)(26.89)-1Q 2016
1Q 2015(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

1Q 2016
101,591
Fiscal Year 2015
105,352
Reference: Shareholders’ equity (millions of yen) 1Q 2016: 50,669

50,70653,705

Net assets per share
%

Yen

49.9
51.0
Fiscal Year 2015: 53,678

970.55
1,028.17

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

Yen

Year-end

Total

Yen

Yen

Yen

-

4.00

8.00

-

4.00

8.00

Fiscal Year 2015
4.00
Fiscal Year 2016
Fiscal Year 2016 (forecasts)
4.00
Note: Revision to the most recently announced dividend forecast: None

3. Consolidated Outlook for Fiscal Year 2016 (January 1, 2016 – December 31, 2016)
Net sales(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% Millions of yen% Millions of yen% Millions of yen%
Yen

Millions of yen
72,8006.8
100
2Q 2016 (cumulative)
144,000
7.2
1,600
Full Year 2016
Note: Revision to the most recently announced consolidated outlook: None

650
2,200

-

450
1,400

-

8.62
26.82

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

(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None
Note: Please refer to “2. Matters Related to Summary Information (Notes), (3) Changes in Accounting Policies andAccounting-based Estimates, and Restatements” on page 3 for further information.

(4) Number of shares outstanding (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
1Q 2016:

52,230,393 sharesFiscal Year 2015:

52,230,393 sharesFiscal Year 2015:

23,256 shares

2) Number of treasury shares at the end of the period
1Q 2016:

23,277 shares

3) Average number of shares outstanding during the period
1Q 2016:

52,207,132 shares

1Q 2015:

43,307,715 shares* Disclosure regarding the implementation of quarterly review proceduresThis quarterly financial report is not subject to quarterly review procedures based on the Financial Instruments and ExchangeAct. 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 First Quarter of Fiscal Year 2016

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

2(2) Explanation of Financial Position

2(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 Three-month Period)

6

Quarterly Consolidated Statement of Comprehensive Income(For the Three-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 First Quarter of Fiscal Year 2016

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first quarter (January 1, 2016 to March 31, 2016) of the current fiscal year, the Japanese economy continued
to recover at a moderate pace underpinned by improvements in corporate earnings and the employment situation.
However, the outlook for the economy remains uncertain as the Bank of Japan introduced negative interest rates
in response to the stronger yen since the start of 2016 and the sluggish share prices. In the retail industry,
consumers continue to be budget-minded because of concerns over price increases and sluggish growth in real
income. In recent months, sales of winter apparel were weak because of unusually warm weather. As a result, theoperating environment remained challenging.
The Senshukai Group is currently in the third 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 first quarter decreased 1.6% year-over-year to 30,599 million yen.
Gross operating margin improved compared with the same period of the previous fiscal year. However, SG&A
expenses rose as a result of the implementation of cross media measures. There was an operating loss of 1,716
million yen compared with a loss of 1,817 million yen in the same period of the previous fiscal year.
Ordinary loss was 1,222 million yen compared with a loss of 1,719 million yen in the same period of the previous
fiscal year. The decrease in operating loss was due to an increase in share of profit of entities accounted for using
the equity method. Loss attributable to owners of parent was 735 million yen compared with a loss of 1,164
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 4.2%
year-over-year to 26,391 million yen in the first quarter. There was an operating loss of 1,179 million yen
compared with a loss of 1,686 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 21.2%
year-over-year to 2,869 million yen in the first quarter due in part to contribution from PLANETWORK CO.,LTD
which was converted into a subsidiary in March 2015. There was an operating loss of 672 million yen comparedwith a loss of 216 million yen in the same period of the previous fiscal year as SG&A expenses increased due toup-front costs for openings of new facilities and other factors.
(Corporates Business)
Consolidated sales in the corporates business, which provides products and services to corporations, increased
14.5% year-over-year to 1,147 million yen, and operating income increased 47.7% to 159 million yen.
(Others)
Consolidated sales in other businesses, which provides services business (primarily insurance and credit card
services) and childcare business, increased 20.9% year-over-year to 190 million yen. There was an operating lossof 25 million yen compared with a loss of 22 million yen in the same period of the previous fiscal year.
(2) Explanation of Financial Position(Balance sheet position)
Assets totaled 101,591 million yen at the end of the first quarter of the current fiscal year, a decrease of 3,761
million yen from the end of the previous fiscal year.
Current assets decreased 2,807 million yen to 49,139 million yen. The main factors were decreases of 3,866
million yen in cash and deposits and 1,506 million yen in accounts receivable-other, while there was an increase-2-

SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2016

of 2,312 million yen in merchandise and finished goods. Non-current assets decreased 953 million yen to 52,451
million yen. The main factors were decreases of 517 million yen in property, plant and equipment, 242 million
yen in intangible assets and 192 million yen in investments and other assets.
Current liabilities decreased 838 million yen to 30,572 million yen. The main factors were decreases of 1,646
million yen in other and 450 million yen in current portion of bonds, while there was an increase of 1,437 million
yen in accounts payable-trade. Non-current liabilities increased 76 million yen to 20,312 million yen. The main
factor was an increase of 517 million yen in other, while there was a decrease of 446 million yen in long-termloans payable.
Net assets decreased 2,999 million yen to 50,706 million yen. The main factors were decreases of 1,774 million
yen in deferred gains or losses on hedges and 571 million yen in retained earnings. Consequently, the equity ratio
was 49.9%.
(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
Senshukai currently maintains its consolidated outlook for the current fiscal year (January 1, 2016 to December
31, 2016) that was released on February 4, 2016.
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 reasonably estimating the effective tax rate after the application of tax
effect accounting with respect to profit before income taxes during the fiscal year in which the quarter underreview falls, and multiplying that rate by the profit before income taxes for the quarter under review. However, theCompany uses legally stipulated effective tax rates to calculate tax expenses for cases in which using estimatedtax rates gives a noticeably irrational result.
(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements(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 first quarter of the current fiscal year. Accordingly,
difference arising from changes in the Company’s ownership interests in subsidiaries in cases where control isretained is recognized in 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 placeon or after the beginning of the first quarter of the current fiscal year, the Company has revised the method toreflect reviewed allocation of the acquisition costs arising from determination of the provisional accounting
treatment on the quarterly consolidated financial statements to which the date of the business combination belongs.
In addition, the presentation of net income and other 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 first quarter of the previous fiscal year and the previous fiscal year have been revised.
The Company has adopted these accounting standards, etc. from the beginning of the first quarter of the current
fiscal year, in accordance with the transitional accounting treatments set forth in Article 58-2 (4) of the
Accounting Standard for Business Combinations, Article 44-5 (4) of the Accounting Standard for Consolidated
Financial Statements, and Article 57-4 (4) of the Accounting Standard for Business Divestitures.
The application of these standards does not have a material effect on earnings.

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SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2016

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

1Q 2016(As of Mar. 31, 2016)

AssetsCurrent assets
Cash and deposits

14,303

10,436

Notes and accounts receivable-trade

4,046

4,607

Merchandise and finished goods

18,025

20,338

Accounts receivable-other

9,781

8,274

Other

6,013

5,702

Allowance for doubtful accounts

(222)

(221)

51,947

49,139Buildings and structures, net

16,052

17,266Land

12,091

11,427

Other, net

3,826

2,759

Total property, plant and equipment

31,97031,452

Goodwill

2,243

2,189

Other

2,853

2,664

Total intangible assets

5,097

4,854

Investment securities

9,877

9,887

Other

6,726

6,523

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

Intangible assets

Investments and other assets

Allowance for doubtful accounts

(265)

(265)

Total investments and other assets

16,337

16,14453,40452,451

105,352

101,591

Total non-current assets
Total assets-4-

SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2016

(Millions of yen)
1Q 2016(As of Mar. 31, 2016)

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

11,084

11,357

Accounts payable-trade

5,346

6,784

Short-term loans payable

2,111

1,718

Current portion of bonds

450-

Income taxes payable

121

64

Provision for sales promotion expenses

402

400

Other

11,892

10,245

Total current liabilities

31,41030,572

Non-current liabilities
Bonds with subscription rights to shares

7,000

7,000

Long-term loans payable

9,181

8,735

Net defined benefit liability

93

98

Other

3,961

4,478

Total non-current liabilities

20,236

20,312

51,64750,885

Total liabilities
Net assets
Shareholders’ equity
Capital stock

22,30422,304

Capital surplus

23,86023,860Retained earnings

11,00910,437(15)(15)

57,15956,587

1,756

1,512

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

1,282

(491)

Revaluation reserve for land

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

110

48

Remeasurements of defined benefit plans

(1)

(3)

(3,481)(5,917)

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

-5-

27

36

53,70550,706105,352

101,591

SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2016

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
Income(Quarterly Consolidated Statement of Income)(For the Three-month Period)
1Q 2015(Jan. 1, 2015 – Mar. 31, 2015)(Millions of yen)
1Q 2016(Jan. 1, 2016 – Mar. 31, 2016)

Net sales

31,08630,599

Cost of sales

17,297

16,566Gross profit

13,78814,033

Selling, general and administrative expenses

15,60615,750Operating loss

(1,817)(1,716)

Non-operating income
Interest income

25

7

Dividend income
Share of profit of entities accounted for using equity
methodGain on adjustment of account payable

5

5

21

416

54

88

Other

53

51

Total non-operating income

159

568

48

44

Non-operating expenses
Interest expenses
Other

13

29

Total non-operating expenses

61

74(1,719)(1,222)Gain on sales of non-current assets

1-

Total extraordinary income

1-

Loss on sales and retirement of non-current assets

00

Impairment loss

65-

Total extraordinary losses

65

0(1,783)(1,223)

Ordinary loss
Extraordinary income

Extraordinary losses

Loss before income taxes
Income taxes
Loss
Profit attributable to non-controlling interests
Loss attributable to owners of parent

-6-

(618)

(496)

(1,164)

(726)

-

9

(1,164)(735)

SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2016

(Quarterly Consolidated Statement of Comprehensive Income)(For the Three-month Period)(Millions of yen)
1Q 2016(Jan. 1, 2016 – Mar. 31, 2016)

1Q 2015(Jan. 1, 2015 – Mar. 31, 2015)
Loss(1,164)(726)

Valuation difference on available-for-sale securities

494

(245)

Deferred gains or losses on hedges

Other comprehensive income(355)(1,771)

Revaluation reserve for land

53

18

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

0

(25)

(1)

(39)

191

(2,063)(972)(2,790)(972)(2,799)-9

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-7-

SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2016(3) Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Significant Changes in Shareholders’ Equity)
Not applicable.
(Segment and Other Information)
I 1Q 2015 (Jan. 1, 2015 – Mar. 31, 2015)
1. Information related to sales and profit or loss for each reportable segment
Reportable segment

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

Corporates
Sub-total
business

Others(Note 1)

Total

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

Bridalbusiness

27,558

2,368

1,002

30,928157

31,086-31,086

186

-

60

246

0

246

(246)

-

27,744

2,368

1,062

31,175

157

31,333(246)

31,086

Segment profit (loss)(1,686)(216)
108(1,794)(22)(1,817)(0)(1,817)
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 (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.
II 1Q 2016 (Jan. 1, 2016 – Mar. 31, 2016)
1. Information related to sales and profit or loss for each reportable segment
Reportable segment

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

Corporates
Sub-total
business

Others(Note 1)

Total

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

Bridalbusiness

26,391

2,869

1,147

30,409190

30,599-30,599

190

-

29

220

0

220

(220)

-

26,581

2,869

1,177

30,629190

30,819(220)

30,599Segment profit (loss)(1,179)(672)
159(1,691)(25)(1,716)0(1,716)
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 (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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