This document is a translation of the Japanese financial statements and is not in conformity with accounting principles of the United States.

SENKO Group Holdings Co., Ltd.

Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2020
[Japan GAAP]

Name of Listed Company:
Code Number:
Representative:
Inquiries:

February 7, 2020
SENKO Group Holdings Co., Ltd.
Stock Listed on: The First Section of the Tokyo Stock Exchange
9069
URL https://www.senkogrouphd.co.jp/en/
Title: President and Representative Director
Name: Yasuhisa Fukuda
Title: Executive Officer, Responsible for PR & IR
Name: Satoru Kokubo
Tel. (06) 6440-5156

Scheduled Date of Issue of Quarterly Financial Report: February 14, 2020
Yes
Quarterly Supplemental Information Materials:
None
Scheduled Date of Quarterly Information Meeting:

Scheduled Date of Dividend Paid: –(Amounts less than ¥1 million have been rounded down)
1. Consolidated Operating Results for the Nine Months Ended December 31, 2019(1) Consolidated Operating Results (Cumulative)
Operating revenue
Nine months ended December 31, 2019
Nine months ended December 31, 2018

Million yen427,741
400,565%
6.8
7.4(Percentage figures represent year-on-year changes)
Profit attributable toOperating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
17,177
8.8
17,233
7.3
10,87913.915,79418.3
16,065
19.3
9,552
28.5

(Note) Comprehensive income
Nine months ended December 31, 2019: ¥11,412 million (20.0%)

Nine months ended December 31, 2018: ¥9,510 million (–10.0%)

Profitper share

Diluted profit
per share
Yen
71.61
62.88

Yen
66.42
58.32

Total assets
Million yen
358,287
340,491

Net assets
Million yen134,906
126,895

Nine months ended December 31, 2019
Nine months ended December 31, 2018
(2) Consolidated Financial Position

As of December 31, 2019
As of March 31, 2019
(Reference) Equity:
As of December 31, 2019: ¥126,078 million

Equity ratio
%
35.2
35.0

Net assets per shareYen
829.66785.08

As of March 31, 2019: ¥119,204 million

2. Dividends
June 30

September 30
Yen
13.00
13.00

Yen
Fiscal year ended March 31, 2019–
Fiscal year ending March 31, 2020–
Fiscal year ending March 31, 2020
(Forecast)(Note) Change in the estimation of dividend for the fiscal year in this period: None

Annual dividend
December 31
Yen––March 31

Total

Yen
13.00

Yen
26.00

13.00

26.00

3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2020 (From April 1, 2019 to March 31, 2020)
Operating revenue
Million yen%
Fiscal year ending March 31, 2020
560,000
5.7(Note) Change in the forecast made in this period: None

Operating profit
Million yen
20,900%6.5(Percentage figures represent year-on-year changes)
Profit attributable toProfit
Ordinary profit
owners of parentper shareMillion yen% Million yen%Yen
21,0005.7
12,2004.4
80.35

Notes(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries associated with change in scope ofconsolidation): None
(2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements: None
(3) Changes in accounting principles and estimates, and retrospective restatement(a) Changes due to revision of accounting standards: None(b) Changes other than in (a): None(c) Changes in accounting estimates: Yes(d) Retrospective restatement: None
(4) Shares outstanding (Common shares)(a) Shares outstanding (including treasury shares)
As of December 31, 2019:

152,861,921 shares

As of March 31, 2019:

152,861,921 shares

897,936 shares

As of March 31, 2019:

1,024,460 shares(b) Treasury shares
As of December 31, 2019:(c) Average number of shares (Cumulative)
Nine months ended December 31, 2019: 151,927,827 shares

Nine months ended December 31, 2018:

151,918,117 shares(Note) Starting with the third quarter of the fiscal year ended March 31, 2018, the number of treasury shares at term-end includes Senko
shares owned by the trust accounts of Performance-linked Stock Compensation Plan for Employees (as of December 31, 2019:348,880 shares; as of March 31, 2019: 351,500 shares) and Performance-linked Stock Compensation Plan for Directors (as ofDecember 31, 2019: 352,988 shares; as of March 31, 2019: 353,000 shares).
Quarterly financial results reports are exempt from quarterly reviews conducted by certified public accountants or an audit corporation.
Cautionary statement regarding forecasts of operating results and special notes
 Forward-looking statements in these materials are based on information available to management at the time this report was prepared andassumptions that management believes are reasonable. Actual results may differ significantly from these statements for a number ofreasons. For information about the assumptions used for forecasts and precautions concerning the use of forecasts, please see “Forecastfor the full-term of the fiscal year ending March 31, 2020” on page 3.
 The supplementary material on quarterly earnings will be available on the Company’s website.

Index to accompanying materials

1. Results of Operations and Financial Condition ......................................................................................................................................... 2(1) Results of operations ......................................................................................................................................................................... 2(2) Financial condition ............................................................................................................................................................................. 3(3) Forecast for the full-term of the fiscal year ending March 31, 2020................................................................................................... 3
2. Consolidated Financial Statements ........................................................................................................................................................... 4(1) Consolidated balance sheets .............................................................................................................................................................. 4(2) Consolidated statements of (comprehensive) income ....................................................................................................................... 6Consolidated statements of income
For the nine months ended December 31, 2018 and 2019 ............................................................................................................ 6Consolidated statements of comprehensive income
For the nine months ended December 31, 2018 and 2019 ............................................................................................................ 711.

Results of Operations and Financial Condition(1) Results of operations
In the nine-month period of the fiscal year ending March 31, 2020 (April 1, 2019 to December 31, 2019), the Japanese economy
maintained an unclear outlook on account of the rush in demand before the consumption tax hike and the recoil in demand after the tax
hike, and the slowdown in the global economy, among other factors.
The nine-month-period performance was as follows.
(Unit: Millions of Yen)

Operating revenue

Nine months ended
December 31, 2018
400,565

Nine months ended
December 31, 2019427,74115,794
16,065
9,552

Operating profit
Ordinary profit
Profit attributable to owners ofparent

Change%27,175

6.8

17,177
17,233

1,383
1,167

8.8
7.3

10,879

1,327

13.9

Consolidated operating revenue for the nine-month period ended December 31, 2019 of the current fiscal year increased ¥27,175 million
year on year to ¥427,741 million. This result mainly reflected effects of expanding sales and revising the freight charges, opening
logistics centers, and making overseas Group companies and operating companies of living support services into consolidated
subsidiaries.
On the profit front, despite factors that include higher costs largely stemming from rises in outsourcing costs, consolidated operating
profit increased ¥1,383 million year on year to ¥17,177 million and consolidated ordinary profit increased ¥1,167 million year on year to¥17,233 million. This upturn in profits was largely attributable to the effects of the higher revenue mentioned previously and our efforts toimprove productivity. Profit attributable to owners of parent increased to ¥10,879 million, up ¥1,327 million year on year.
The nine-month-period operating revenue by segment was as follows.
Logistics(Unit: Millions of Yen)

Operating revenue

Nine months ended
December 31, 2018283,706

Nine months ended
December 31, 2019297,850

13,15914,867

Segment income

Change%14,143

5.0

1,708

13.0

Operating revenue increased ¥14,143 million year on year to ¥297,850 million and segment income rose ¥1,708 million year on year to¥14,867 million. This was mainly attributable to the effects of opening logistic centers in the previous fiscal year, opening Inzai Logistics
Center and Oita PD Center, whose operations were commenced by SENKO Co., Ltd. in May and October of this fiscal year, respectively,
and opening Kansai Branch Center, whose operations were commenced by Runtec Corporation in July, as well as the effect ofexpanding sales and revising the freight charges, and making seven overseas Group companies into consolidated subsidiaries.
Trading & commerce(Unit: Millions of Yen)

Operating revenue

Nine months ended
December 31, 2018
108,094

Nine months ended
December 31, 2019117,974

1,807

1,583

Segment income

Change%9,879

9.1(224)(12.4)

Operating revenue increased ¥9,879 million year on year to ¥117,974 million and segment income fell ¥224 million year on year to¥1,583 million. Although sales of household paper products for large-scale mass-merchandiser groups grew, there were higher costs
largely stemming from rises in outsourcing costs.
Others(Unit: Millions of Yen)

Operating revenue
Segment income

Nine months ended
December 31, 2018
8,764

Nine months ended
December 31, 2019
11,916

1,132

1,247

Change%
3,152

36.0

115

10.2

Operating revenue increased ¥3,152 million year on year to ¥11,916 million and segment income increased ¥115 million year on year to¥1,247 million. This was mainly attributable to making Life-eat Co., Ltd., which manages the food and drink business, into a consolidated
subsidiary, and opening new nursing care and fitness locations.

2(2) Financial condition
Assets, liabilities and net assets
Total assets
Total assets as of December 31, 2019 were ¥358,287 million, ¥17,795 million higher than at the end of the previous fiscal year.
Current assets amounted to ¥128,520 million, up ¥11,257 million from the end of the previous fiscal year. This mainly reflected increasesof ¥7,276 million in trade notes and accounts receivable and ¥1,429 million in merchandise and finished goods.
Non-current assets totaled ¥229,753 million, up ¥6,558 million from the end of the previous fiscal year. This was primarily due toincreases of ¥7,218 million in property, plant and equipment and ¥1,237 million in intangible assets, despite a decrease of ¥1,897 million
in investments and other assets.
Liabilities
Liabilities as of December 31, 2019 increased ¥9,784 million from the end of the previous fiscal year to ¥223,380 million.
Current liabilities totaled ¥113,795 million, up ¥15,125 million from the end of the previous fiscal year. This was mainly due to increasesof ¥7,043 million in trade notes and accounts payable and ¥9,808 million in short-term borrowings, despite decreases of ¥2,916 million inincome taxes payable and ¥1,846 million in provision for bonuses.
Non-current liabilities totaled ¥109,585 million, down ¥5,341 million from the end of the previous fiscal year. This was primarily due to adecrease of ¥7,887 million in long-term borrowings, despite an increase of ¥2,394 million in long-term lease obligations.
Net assets
Net assets as of December 31, 2019 rose ¥8,011 million from the end of the previous fiscal year to ¥134,906 million. This was mainly
attributable to increases of ¥6,740 million in retained earnings and ¥1,130 million in non-controlling interests. The equity ratio as ofDecember 31, 2019 increased by 0.2 percentage points to 35.2% from the end of the previous fiscal year.
(3) Forecast for the full-term of the fiscal year ending March 31, 2020
No revisions have been made to the forecast of consolidated operating results for the fiscal year ending March 31, 2020, announced in“Summary of Financial Statements for the Fiscal Year Ended March 31, 2019” on May 10, 2019.

3

2.

Consolidated Financial Statements(1) Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2019

As of December 31, 2019

AssetsCurrent assets
Cash and deposits

25,232

24,632

Trade notes and accounts receivable

71,311

78,587

Electronically recorded monetary claims - operating

1,7852,446

Merchandise and finished goods

8,513

9,942

Work in process

670

1,121

Raw materials and supplies

583

743

9,181

11,075(14)(28)

117,263

128,520

Buildings and structures, net

64,64565,557

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Land

59,66960,663

Other, net

37,89943,212

Total property, plant and equipment

162,214

169,432

Intangible assets
Goodwill

7,446

7,903

Other

4,576

5,356

Total intangible assets

12,022

13,260Investments and other assets
Investment securities20,260

18,703Long-term loans receivable

3,888

3,544

Retirement benefit asset

3,088

3,540

Guarantee deposits

13,271

13,995

Deferred tax assets

5,138

3,924

Other

4,019

3,976

Allowance for doubtful accounts

(709)

(624)

Total investments and other assets

48,95847,060223,195

229,753

Business commencement expenses

32

12

Total deferred assets

32

12340,491

358,287

Total non-current assets
Deferred assets

Total assets

4

(Unit: Millions of Yen)
As of March 31, 2019

As of December 31, 2019

Liabilities
Current liabilities
Trade notes and accounts payable

37,60344,646

Electronically recorded obligations - operating

7,047

7,327

48

48

Short-term borrowings

21,58031,389Lease obligations

3,181

3,570

Income taxes payable

4,242

1,325

Provision for bonuses

5,253

3,406

347

256

Current portion of bonds

Provision for bonuses for directors (and otherofficers)
Provision for loss on disaster

103

–

Other

19,261

21,823

Total current liabilities

98,669113,795

Non-current liabilities
Bonds payable

17,12017,072

Convertible bond-type bonds with share acquisitionrights

10,02910,022Long-term borrowings

64,69656,808

Lease obligations

10,50012,895

Provision for retirement benefits for directors (andother officers)

180

193

Provision for special repairs

8094

Provision for share-based remuneration

124

157

Retirement benefit liability

6,970

6,379

Asset retirement obligations

1,011

1,152

Other

4,212

4,808

114,926

109,585

213,595

223,380

Share capital

26,52826,528

Capital surplus

29,841

29,765Retained earnings

62,98369,724

Treasury shares

(697)

(651)

118,656

125,366

1,350

1,395

Deferred gains or losses on hedges(3)12Foreign currency translation adjustment

12249

Remeasurements of defined benefit plans

(920)

(745)

Total accumulated other comprehensive income

548

711

Share acquisition rights

424

432

Non-controlling interests

7,265

8,396

126,895

134,906

340,491358,287

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

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total net assets
Total liabilities and net assets

5(2) Consolidated statements of (comprehensive) income(Consolidated statements of income)(For the nine months ended December 31, 2018 and 2019)(Unit: Millions of Yen)
Nine months ended
December 31, 2018

Nine months ended
December 31, 2019

(April 1, 2018–December 31, 2018)(April 1, 2019–December 31, 2019)

Operating revenue

400,565

427,741

Operating cost

355,840

376,481

Operating gross profit

44,72551,259Selling, general and administrative expenses

28,931

34,081

Operating profit

15,794

17,1779482

Non-operating income
Interest income
Dividend income

142140

Other1,394

1,298

Total non-operating income

1,631

1,521

Interest expenses

834

820

Other526

644

1,360

1,465

16,065

17,233–144

Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Insurance claim income
Gain on extinguishment of tie-in shares–

51

Gain on termination of retirement benefit plan–

46346

42

1,268–

Gain on sales of investment securities

178–

Gain on liquidation of subsidiaries and associates

79–

Reversal of allowance for doubtful accounts for
subsidiaries and associates

43–

1,916

284–

121

Loss on liquidation of subsidiaries–

111

Loss on retirement of non-current assets

86

96

Provision of allowance for doubtful accounts for
subsidiaries and associates–

79

Litigation settlement

–

55

585

49

1,256

–

Provision for loss on disaster

204–

Loss on liquidation of subsidiaries

168–

Loss on office withdrawal

133–

Loss on disaster

31

–

2,468

515

Profit before income taxes

15,51417,002

Income taxes - current

4,650

4,568

Income taxes - deferred

976

1,186

Total income taxes

5,627

5,755

Profit9,886

11,247

334

368

9,552

10,879Gain on sales of non-current assets
Subsidy income

Total extraordinary income
Extraordinary losses
Impairment loss

Loss on valuation of shares of subsidiaries andassociates
Loss on tax purpose reduction entry of non-current
assetsTotal extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent6

(Consolidated statements of comprehensive income)(For the nine months ended December 31, 2018 and 2019)(Unit: Millions of Yen)
Nine months ended
December 31, 2018

Nine months ended
December 31, 2019

(April 1, 2018–December 31, 2018)(April 1, 2019–December 31, 2019)

Profit9,886

11,247

(548)

52

35

17

Foreign currency translation adjustment

(148)

(79)

Remeasurements of defined benefit plans, net of tax

285

174

Total other comprehensive income

(376)

165

9,510

11,412

9,221

10,998288

414

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests7