Summary of Financial Results for the First Quarter of Fiscal Year 2014
(Three Months Ended March 31, 2014)[Japanese GAAP]
April 25, 2014
Company name: SENSHUKAI CO.,LTD.
Stock exchange: Tokyo Stock Exchange, First Section
Stock code:
8165
URL: http://www.senshukai.co.jp
Representative:
Mr. Michio Tanabe, President and Representative Director
Inquiries:
Mr. Hiroyuki Hoshino, Director, Executive Officer,
General Manager of the Corporate Development Division Tel: +81-6-6881-3220
Scheduled date of filing of Quarterly Report: May 14, 2014
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 1st Quarter of 2014 (January 1, 2014 – March 31, 2014)(1) Consolidated operating results (cumulative)
Net sales
Millions of yen(Percentages represent changes from the same period of the previous fiscal year)
Operating income
Ordinary income
Net income%

Millions of yen% Millions of yen

1Q 2014
37,2298.0
1,012
1Q 201334,471
1.2
37
Note: Comprehensive income (millions of yen) 1Q 2014: (87) (-%)-

Net income per share

Diluted net income per share

Yen

Yen

12.62
4.57

-

1Q 2014
1Q 2013Millions of yen%

1,059 341.2
546
240
197
1Q 2013: 1,287 (up 12.7%)

%

176.4
-

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

1Q 2014
100,424
Fiscal Year 2013
98,800
Reference: Shareholders’ equity (millions of yen) 1Q 2014: 49,723

49,72350,359Net assets per share
%

Yen

49.5
51.0
Fiscal Year 2013: 50,359

1,148.13
1,162.81

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

Yen

Year-end

Total

Yen

Yen

Yen

-

12.00

24.00

-

12.00

24.00

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

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

Millions of yen

2Q 2014 (cumulative)
76,400 5.0
1,100 (32.4)
Full Year 2014
150,000 6.0
3,600 (10.4)
Note: Revision to the most recently announced consolidated outlook: None

% Millions of yen

1,400 (29.8)
4,000 (13.6)%

Yen

700 (43.6)
2,300 (43.2)

16.16
53.11

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
Newly added: -Excluded: -(2) Application of special accounting methods for presenting quarterly consolidated financial statements: Yes
Note: Please refer to “2. Matters Related to Summary Information (Notes), (2) Application of Special Accounting Methods
for Presenting Quarterly Consolidated Financial Statements” on page 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)
1Q 2014:47,630,393 sharesFiscal Year 2013:

47,630,393 sharesFiscal Year 2013:

4,321,851 shares

1Q 2013:43,308,948 shares

2) Number of treasury shares at end of period
1Q 2014:

4,321,936 shares

3) Average number of shares outstanding during the period
1Q 2014:43,308,491 shares* Disclosure regarding the implementation of quarterly review procedures
These quarterly financial results materials are not subject to quarterly review procedures based on the Financial Instruments
and Exchange Act. Thus, at the time of its disclosure, the quarterly financial statement review procedures based on the
Financial Instruments and Exchange Act have not been completed.

* Cautionary statement with respect to forward-looking statements
The above projections are based on information available at the time of release of this report. Actual results could differ
significantly from these projections due to a variety of factors. For further details regarding the projections, please refer topage 3, “1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated
Forecasts and Other Forward-looking Statements.”

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

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

2(2) Explanation of Financial Position

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

3

2. Matters Related to Summary Information (Notes)

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)

8(Subsequent Events)

9-1-

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

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first quarter (January 1, 2014 to March 31, 2014) of the current fiscal year, the Japanese economy
recovered slowly as corporate profits and personal consumption improved along with economic and monetarymeasures by the Japanese government and Bank of Japan. In the retail industry, there was a rush demand to buy
merchandise, especially luxury items, prior to the April 2014 consumption tax hike but the outlook is uncertain
because of concerns about a downturn in consumer sentiment following this tax hike.
In this environment, the Senshukai Group is concentrating on achieving the first fiscal year targets of themedium- to long-term management plan that started in 2014.
Net sales in the first quarter increased 8.0% year-over-year to 37,229 million yen.
As for profits, due to the cutting of selling, general and administrative expenses in the mail-order business,
operating income rose 2,612.2% year-over-year to 1,012 million yen.
Ordinary income rose 341.2% year-over-year to 1,059 million yen and net income rose 176.4% year-over-year to546 million yen.
Overview by segment(Mail-order Business)
Consolidated sales in the mail-order business, comprising the catalog and the hanpukai businesses, increased
6.4% year-over-year to 33,587 million yen in the first quarter. Sales were slightly lower than one year earlier
because of a slow start to sales of spring items caused by colder than average weather in January and February.
Starting in the middle of March, sales were higher because of the rush demand to buy merchandise prior to theApril 2014 consumption tax hike. Sales increased mainly for furniture and interior goods, as well as for apparel,sundries and other categories.
Regarding profits, there was a small decline in the gross profit margin due to an increase in loss on valuation on
goods. But measures to reduce all categories of selling, general and administrative expenses resulted in a 382.3%
increase in operating income to 890 million yen.
(a) Catalog business
Consolidated sales in the catalog business increased 7.5% year-over-year to 31,843 million yen in the firstquarter.
(b) Hanpukai business
Consolidated sales in the hanpukai business decreased 10.4% year-over-year to 1,744 million yen in the firstquarter.
(Bridal Business)
Consolidated sales in the bridal business, centered on the house wedding business, increased 35.5%
year-over-year to 2,652 million yen in the first quarter, due to an increase in the number of wedding as thenumber of new facilities increased. Operating income was 15 million yen compared with an operating loss of 185
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
8.8% year-over-year to 871 million yen in the first quarter, and operating income increased 43.2% year-over-year
to 94 million yen.
(Others)
Consolidated sales in other businesses, which provides services business (primarily insurance and credit card
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SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2014services), decreased 16.3% year-over-year to 117 million yen in the first quarter, and operating income was 12
million yen compared with an operating loss of 24 million yen in the same period of the previous fiscal year.
(2) Explanation of Financial Position(Balance sheet position)
Assets totaled 100,424 million yen at the end of the first quarter, an increase of 1,624 million yen from the end of
the previous fiscal year.
Current assets increased 1,537 million yen to 51,714 million yen. The main factors were increases of 2,618
million yen in notes and accounts receivable-trade, and 880 million yen in merchandise and finished goods, while
there were decreases of 1,063 million yen in accounts receivable-other, 610 million yen in cash and deposits, and
216 million yen in other. Non-current assets increased 87 million yen to 48,709 million yen. The main factors
were increases of 388 million yen in property, plant and equipment, and 59 million yen in intangible assets, while
there was a decrease of 360 million yen in investments and other assets.
Current liabilities increased 2,196 million yen to 41,831 million yen. The main factors were increases of 6,219
million yen in electronically recorded obligations-operating, 1,418 million yen in notes and accounts
payable-trade, and 1,006 million yen in short-term loans payable, while there was a decrease of 6,478 million yen
in other. Non-current liabilities increased 64 million yen to 8,869 million yen. The main factors were increases of
554 million yen in long-term loans payable and 49 million yen in provision for retirement benefits, while there
were decreases of 350 million yen in bonds payable and 189 million yen in other.
Net assets decreased 636 million yen to 49,723 million yen. The main factors were decreases of 564 million yen
in deferred gains or losses on hedges and 49 million yen in valuation difference on available-for-sale securities.
Consequently, the equity ratio was 49.5%.
(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
Senshukai currently maintains its consolidated outlook for the current fiscal year (January 1, 2014 to December
31, 2014) that was released on February 6, 2014.
2. Matters Related to Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period
Not applicable.
(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements(Calculation of tax expense)
The tax expenses are calculated by first estimating the effective tax rate after the application of tax effectaccounting with respect to income before income taxes and minority interests during the fiscal year in which thequarter under review falls, and multiplying that rate by the income before income taxes and minority interests forthe quarter under review. However, the Company uses legally stipulated effective tax rates to calculate tax
expenses for cases in which using estimated tax rates gives a noticeably irrational result.
(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements
Not applicable.

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

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

1Q 2014(As of Mar. 31, 2014)

AssetsCurrent assets
Cash and deposits

6,495

5,884

Notes and accounts receivable-trade

6,395

9,014

Merchandise and finished goods

21,29622,176

Accounts receivable-other

9,609

8,545

Other

6,688

6,471

Allowance for doubtful accounts

(306)

(376)

50,17751,714

Buildings and structures, net

13,754

13,746

Land

12,108

12,115

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

Other, net

2,912

3,302

Total property, plant and equipment

28,77529,163

Goodwill

2,127

2,172

Other

3,604

3,618

Total intangible assets

5,731

5,791

Investment securities

7,514

7,179

Other

6,914

6,888

Allowance for doubtful accounts

(314)

(314)

Intangible assets

Investments and other assets

Total investments and other assets
Total non-current assets
Total assets-4-

14,114

13,754

48,622

48,70998,800100,424SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2014

(Millions of yen)
1Q 2014(As of Mar. 31, 2014)

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

6,496

7,914

Electronically recorded obligations-operating

6,204

12,424

Short-term loans payable

6,386

7,392

Current portion of bonds

700

700

Income taxes payable

416

492

Provision for directors' bonuses

30-

Provision for sales promotion expenses

588

572

Other

18,813

12,334

Total current liabilities

39,63541,831

Bonds payable

1,150

800

Long-term loans payable

4,814

5,368

Non-current liabilities

Provision for retirement benefits
Other
Total non-current liabilities

34

83

2,806

2,616

8,805

8,869

48,44050,700Capital stock

20,35920,359

Capital surplus

21,03821,038Retained earnings

16,353

16,352

Treasury shares(2,776)(2,776)

Total shareholders’ equity

54,97554,973

Total liabilities
Net assets
Shareholders’ equity

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

774

725

Deferred gains or losses on hedges

1,278

714

Revaluation reserve for land

(6,720)(6,720)52

30(4,615)(5,250)Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-5-50,35949,72398,800100,424SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2014

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
Income(Quarterly Consolidated Statement of Income)(For the Three-month Period)(Millions of yen)
1Q 2013(Jan. 1, 2013 – Mar. 31, 2013)
34,471

1Q 2014(Jan. 1, 2014 – Mar. 31, 2014)
37,229

Cost of sales

18,002

19,965Gross profit

16,46817,264

Selling, general and administrative expenses

16,431

16,252

37

1,012

14

8

Dividend income11Foreign exchange gains

82-

Gain on adjustment of account payable

55

53

Other

127

57

Total non-operating income

282

121

Interest expenses

53

54

Other

26

19

Total non-operating expenses

79

74

240

1,059

Net sales

Operating income
Non-operating income
Interest income

Non-operating expenses

Ordinary income
Extraordinary income
Gain on sales of non-current assets

0-Gain on sales of investment securities

49

0

Total extraordinary income

500Loss on sales and retirement of non-current assets

29

7

Total extraordinary losses

29

7

Income before income taxes and minority interests

260

1,052

Income taxes

63

504

Income before minority interests

197

547

-

0

197

546

Extraordinary losses

Minority interests in income
Net income-6-

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

(Quarterly Consolidated Statement of Comprehensive Income)(For the Three-month Period)(Millions of yen)
1Q 2013(Jan. 1, 2013 – Mar. 31, 2013)

1Q 2014(Jan. 1, 2014 – Mar. 31, 2014)

197

547

Valuation difference on available-for-sale securities

764

(49)

Deferred gains or losses on hedges

259

(564)

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

34

(15)

30

(6)

1,089

(634)

1,287

(87)

Comprehensive income attributable to owners of parent

1,287

(87)

Comprehensive income attributable to minority interests-

0

Income before minority interests
Other comprehensive income

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to-7-

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

(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 2013 (Jan. 1, 2013 – Mar. 31, 2013)
1. Information related to sales and profit or loss for each reportable segment(Millions of yen)

Reportable segment

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

Bridalbusiness

Corporates
business

Sub-total

Others(Note 1)

Total

31,572

1,957

801

34,330140

34,471-

Net sales
Sales to customers

34,471

Inter-segment sales

140

-

8

149

60

209

(209)

-

Total

31,713

1,957

809

34,480200

34,680(209)

34,471

Segment profit (loss)

184

(185)

65

64

(24)

40

(2)

37

Notes: 1. Others represent the businesses which are not included in any of the three reportable segments and consist of theservices business primarily offering travel and credit card services, and the pet business distributing pet goods sales
through retail stores.
2. The (2) million yen adjustment to segment profit (loss) comprises elimination for inter-segment transactions.
3. Segment profit (loss) is adjusted to be consistent with operating income shown on the quarterly consolidated
statement of income.

2. Information related to impairment of non-current assets, goodwill, etc. for each reportable segment
No major events or changes occurred.
II 1Q 2014 (Jan. 1, 2014 – Mar. 31, 2014)
1. Information related to sales and profit or loss for each reportable segment(Millions of yen)

Reportable segment
Corporates
Sub-total
business

Others(Note 1)

Total

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

Bridalbusiness

Sales to customers

33,5872,652

871

37,112

117

37,229-37,229Inter-segment sales

173

-

11

184

0

184

(184)

-

Total

33,7602,652

882

37,296

117

37,413(184)

37,229

890

15

94

999

12

1,012

-

1,012

Net sales

Segment profit

Notes: 1. Others represent the businesses which are not included in any of the three reportable segments and consist mainlyof the services business primarily offering insurance and credit card services.
2. Segment profit is consistent with operating income shown on the quarterly consolidated statement of income.

2. Information related to impairment of non-current assets, goodwill, etc. for each reportable segment
No major events or changes occurred.

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

(Subsequent Events)
On April 3, 2014, the Senshukai Board of Directors approved a resolution to issue Japanese yen convertible
notes with stock acquisition rights maturing in 2019. The receipt of payments for these notes was completed on
April 23, 2014. Details are as follows.
(1) Name of the note
SENSHUKAI CO.,LTD. Japanese Yen Convertible Notes with Stock Acquisition Rights Maturing in 2019(2) Amount to be paid
100% of the principal amount of the notes (the denomination of 5 million Japanese yen each)(3) Issue price (offering price)102.5% of the principal amount of the notes(4) Total issue price
7 billion yen(5) Interest rate
The notes bear no interest.
(6) Existence of collateral or guarantees
None.
(7) Payment date (issue date)
April 23, 2014(8) Maturity date, etc.
The notes will be redeemed at 100% of face value on April 23, 2019. In addition, the issuing terms include
provisions for early redemption and retirement by purchasing notes in certain cases.
(9) Items related to stock acquisition rights(a) Total number of stock acquisition rights
1,400(b) Class of shares to be issued upon exercise of the stock acquisition rights
The class of shares to be issued upon exercise of the stock acquisition rights shall be common stock of
Senshukai. The number of shares to be distributed upon the exercise of acquisition rights is the total facevalue of the notes associated with this exercise divided by the conversion price in item (f) below. However,fractions of less than one share resulting from this exercise shall be rounded down and no cash payment will
be made for the adjustment.
(c) Date of allotment of the stock acquisition rights
April 23, 2014(d) Exercise period of stock acquisition rights
The exercise period starts on May 7, 2014 and ends at the close of banking business (local time at thelocation where exercise requests are processed) on April 9, 2019.
(e) Details and amount of assets to be contributed upon the exercise of stock acquisition rights
Upon the exercise of stock acquisition rights, the associated note will be used as the payment and the priceof the note will be the same as the principal amount of the notes.
(f) Conversion price (initially)
1,048 yen

-9-

SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2014(g) Conversion price adjustments
The conversion price will be adjusted by using the following formula when, after the issuance of the notes
with stock acquisition rights, Senshukai issues common stock or sells treasury shares of common stock at a
price below market value (except when stock acquisition rights are exercised). In the following formula,“number of issued shares” is the total number of shares of common stock issued excluding shares held bySenshukai.

Conversion
price after =adjustment

Conversion
price before
adjustment

Number of issued
shares×＋

Number of newly issued
×
or disposed shares

Amount to be paid
per share

Market price

Number of issued shares + Number of newly issued or disposed shares

Furthermore, the conversion price may be adjusted as required in the following events: a split orconsolidation of Senshukai common stock; the issuance of stock acquisition rights (including rights attached
to notes) that allow holders to receive Senshukai common stock at a price below market value; the paymentof a dividend that exceeds a certain limit (including special dividends); and other events that are prescribedin the terms for these notes with stock acquisition rights.
(h) Amount of capital stock and legal capital surplus to be increased as a result of the issuance of shares upon
the exercise of stock acquisition rights
The amount by which the capital stock will be increased as a result of the issuance of shares upon theexercise of the stock acquisition rights shall be the maximum amount of increase in capital stock, etc. to be
calculated in accordance with Article 17 of the Corporate Accounting Rules multiplied by 0.5. Fraction lessthan one yen resulting from the calculation shall be rounded up. The amount by which the legal capitalsurplus will be increased as a result of the issuance of shares upon the stock acquisition rights shall be themaximum amount of increase in capital stock, etc. minus the amount of capital stock increase.
* 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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