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

SENKO Co., Ltd.

Summary of Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2012
[Japan GAAP]
July 28, 2011
Name of Listed Company:
Code Number:

SENKO Co., Ltd.
9069

Stock Listed on: the First Section of the Tokyo Stock Exchange
and Osaka Securities Exchange
URL http://www.senko.co.jp
Representative:
Title: President
Name: Yasuhisa Fukuda
Inquiries:
Title: Executive Officer, Public Relations
Name: Noburoh SasakiTel. (06) 6440-5155
Scheduled Date of Issue of Financial Report:
August 11, 2011
Scheduled Date of Dividend Paid: －Supplemental Information Materials:

None

Scheduled Date of Quarterly Information Meeting:None

1. Consolidated Operating Results for the First Quarter Ending March 2012 (From April 1, 2011 to June 30, 2011)(1) Consolidated Operating Results

Note: Amounts less than one million yen have been rounded down.
Operating revenues

Operating income

Million yen%

Million yen%

Million yen%

Million yen%First quarter ending March 31, 2012

62,658

6.4

2,032

37.3

1,961

28.5

1,03758.4First quarter ended March 31, 2011
(Note) Comprehensive income
First quarter ending March 31, 2012

58,899

13.2

1,479

8.0

1,526

7.8

654

34.2

1,042 million yen (58.5%)

Ordinary income

Net income

First quarter ended March 31, 2011

658 million yen (–%)

Net income
Diluted net income
per shareper share
YenYenFirst quarter ending March 31, 2012

8.24

7.48

First quarter ended March 31, 2011

5.89

5.31

(2) Consolidated Financial Position
Total assets
First quarter ending March 31, 2012

Net assets

Equity ratio

Net assets per share

Million yen

Million yen177,006

60,99733.6

472.5560,60433.3

469.14

Fiscal year ended March 31, 2011
177,284(Reference) Shareholders’ equity:
First quarter ending March 31, 2012 59,453 million yen%

Yen

Fiscal year ended March 31, 2011 59,024million yen

2. Dividends
First quarter
Yen

Second quarter
Yen

Annual dividend
Third quarter
Yen

Fiscal year ended March 31, 2011

－

5.00

Fiscal year ending March 31, 2012－

Fiscal year ending March 31, 2012

5.00
(Forecast)(Note) Change in the estimation of dividend for the fiscal year in this period: No

Year-endTotalYenYen－

5.00

10.00

－

5.00

10.00

3. Forecast of Consolidated Operating Results for the Year Ending March 2012 (From April 1, 2011 to March 31, 2012)(Percentage figures represent year on year changes)
Net income per
Net income
share% Million yen% Million yen%Yen

Operating revenues Operating income
Million yen% Million yen

Ordinary income

First half ending September 2011

124,000

4.6

3,400

23.2

3,300

17.0

1,350

2.1

10.73

Fiscal year ending March 2012

255,000

5.8

7,400

21.3

7,300

14.5

3,450

52.6

27.42(Note) Change in the forecast made in this period： Yes
Forecast stated in the results of operations for the fiscal year ended on March 2011 announced on May 16, 2011 has been revised. Pleaserefer Forecast for Fiscal Year Ending March 2012 on page 3.

1

4. Others(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries associated with change in scope ofconsolidation): None
(2) Use of 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： None(d) Retrospective restatement： None(Note) Changes to be stated in the section “Changes in significant matters providing the basis for preparing consolidated financialstatements”(4) Shares outstanding (Common shares)
a. Shares outstanding (including treasury stocks)
As of June 30, 2011

128,989,476 shares

As of March 31, 2011

128,989,476 shares

3,174,790 shares

As of March 31, 2011

3,174,635 sharesb. Treasury stockAs of June 30, 2011

c. Average number of shares (quarterly consolidated cumulative period)
Period ended June 30, 2011

125,814,771 shares

Period ended June 30, 2010

111,133,831 shares*Information concerning quarterly review procedurex This quarterly financial report is not subject to the quarterly review procedure prescribed by the Financial Instruments and Exchange Law.
The review procedure prescribed by the Financial Instruments and Exchange Law for the quarterly consolidated financial statements had
not been completed when this quarterly financial report was released.
*Cautionary statement regarding forecasts of operating results and special notes
x Forward-looking statements in these materials are based on information available to management at the time this report was prepared
and assumptions 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“Forecast for Fiscal Year Ending March 2012” on page 3.

2

Index to accompanying materials

1．Results of Operations and Financial Condition ………………………………………………………………………………… ………… 2(1) Results of operations …………………………………………………………………………………………………………………… 2(2) Financial condition ……………………………………………………………………………………………………………………… 2(3) Forecast for fiscal year ending March 2012 ………… ………………… ………… ………………………………………………… 32．Other Information ……………………………………………………………………………………………………………………………… 3(1) Changes in significant subsidiaries …………………………………………………………………………………………………… 3(2) Use of of accounting methods specifically for the preparation of the quarterly consolidated financial statements ………… … 3(3) Changes in accounting principles and estimates, and retrospective restatemen ………………………………………………… 3
3．Consolidated financial statements …………………………………………………………………………………………………………… 4(1) Consolidated balance sheets ……………………………………………………………………………… …………………… …… 4(2) Consolidated statements of (comprehensive) income ……………………………………………………………………………… 6
Consolidated statements of income
For the three months ended June 30, 2010 and 2011 …………………………………………………………………………… 6
Consolidated statements of comprehensive income
For the three months ended June 30, 2010 and 2011 …………………………………………………………………………… 71

1.

Results of Operations and Financial Condition(1)

Results of Operations
In the first quarter (April 1, 2011 to June 30, 2011), manufacturing activity in Japan started to recover following the sharp drop
caused by the March earthquake as restrictions on the supply of goods began to ease. As manufacturing recovers, exports anddomestic private-sector demand are expected to increase as well. However, the outlook is uncertain because of the high cost ofnatural resources and the yen’s strength.
Assisting in the earthquake recovery and reconstruction of our customers is highest priority of the Senko Group. Furthermore,
the current fiscal year is the second year of the three-year medium-term management plan based on the slogan “MovingGlobal.” We are taking many actions to provide customers in Japan and overseas with high-quality services with outstanding
performance in relation to cost and to develop new markets.
In the first quarter, operating revenues increased 6.4% from one year earlier to 62,658 million yen mainly because of growth in
the retail logistics and housing logistics sectors of the distribution business and growth in the commerce and trade business.
Earnings were higher as the growth in operating revenues more than offset the negative effects of price corrections and thehigher cost of fuel. Operating income increased 37.3% from one year earlier to 2,032 million yen, ordinary income increased
28.5% to 1,961 million yen and net income was up 58.4% to 1,037 million yen.
First quarter business segment performance was as follows.
Distribution
Aggressive measures to capture new business and logistics services provided after the March earthquake resulted in growth in
the volume of business in the retail distribution, housing distribution, food distribution and other sectors. The result was a 6.5%
increase in operating revenues to 54,748 million yen.
Commerce and Trade
Sales of petroleum products increased because of higher unit selling prices and there was growth in international trade andtrading sales. The result was an 8.8% increase in operating revenues to 7,302 million yen.
OthersOperating revenues decreased 22.3% to 607 million yen because of lower revenues in the outsourced information processing
business.

(2)

Financial Condition
Total assets
Total assets were 177,006 million yen at the end of the first quarter, a decrease of 278 million yen from the end of the previous
fiscal year. Property, plant and equipment decreased 1,057 million yen but there was an increase of 918 million yen in notes andaccounts receivable.
LiabilitiesTotal liabilities decreased 670 million yen from the end of the previous fiscal year to 116,009 million yen. Major changes included
decreases of 1,541 million yen in income taxes payable and 993 million yen in the provision for bonuses and a 1,414 million yen
increase in notes and operating accounts payable-trade
Net assets
Net assets increased 392 million yen from the end of the previous fiscal year to 60,997 million yen because of a 408 million yen
increase in retained earnings. The equity ratio improved 0.3 percentage point to 33.6%.

2(3)Forecast for Fiscal Year Ending March 2012
When the previous forecast was announced on May 16, 2011, it was difficult to determine an outlook for performance in the fiscal
year because of uncertainty about the effects of the Great East Japan Earthquake. Since production activity has been recovering
after the earthquake, our first quarter performance exceeded our forecast.
Although the outlook remains uncertain because of the high cost of fuel and the yen’s strength, we have made the following
revisions to the first half and fiscal year forecasts based on our performance in the first quarter.
(a) Consolidated forecasts for the first half of fiscal year ending March 2012 (April 1, 2011 to September 30, 2011)

Million yen

Million yen

Million yen

Million yen

Net income pershareYen

Previous forecast (A)123,000

2,500

2,400

900

7.15

New forecast (B)124,000

3,400

3,300

1,350

10.73

Difference (B–A)

1,000

900

900

450

－

Pct. change (%)

0.8

36.0

37.5

50.0－

118,551

2,759

2,820

1,322

11.13

Operating revenues Operating income(Ref.) Previous fiscal year
(First half of FY 3/2011)

Ordinary income

Net income(b) Consolidated forecasts forfiscal year ending March 2012 (April 1, 2011 to March 31, 2012)

Million yen

Million yen

Million yen

Million yen

Net income pershareYen

Previous forecast (A)255,000

6,600

6,500

3,100

24.64

New forecast (B)255,000

7,400

7,300

3,450

27.42

Difference (B–A)

0800

800

350

－

Pct. change (%)

0.0

12.1

12.3

11.3

－

241,046

6,099

6,375

2,261

18.44

Operating revenues Operating income(Ref.) Previous fiscal year
(FY 3/2011)

2.

Ordinary income

Net income

Other Information(1)

Changes in significant subsidiaries
None(2)

Use of of accounting methods specifically for the preparation of the quarterly consolidated financial statements
None

(3)

Changes in accounting principles and estimates, and retrospective restatemen
None3

3.

Consolidated financial statements(1)

Consolidated Balance Sheets(Unit: Millions of Yen)
As of March 31, 2011

As of June 30, 2011

AssetsCurrent assets
Cash and deposits

14,394

13,600Notes and accounts receivable

31,14732,066719

769

Merchandise
Real estate for sale15

10

Supplies

176

170

Work in process
Other
Allowance for doubtful accounts

104206

6,304

6,319

(29)

(33)

52,833

53,109Buildings and structures (net)36,962

36,460Land

39,23339,035

Other (net)

10,508

10,150Total property, plant and equipment

86,70385,646

4,387

4,526

Guarantee deposits

8,719

8,752

Deferred tax assets

4,969

4,886

Other

19,897

20,307

Total current assets
Noncurrent assets
Property, plant and equipment

Intangible assets
Investments and other assets

Allowance for doubtful accounts

(226)

(222)

Total investments and other assets

33,35933,723

Total noncurrent assets
Total assets

4124,450

123,896

177,284

177,006

(Unit: Millions of Yen)
As of March 31, 2011

As of June 30, 2011

Liabilities
Current liabilities
Notes and operating accounts payable- trade22,60324,017

Short-term loans payable

16,545

16,486

Income taxes payable

1,719

178

Provision for bonuses

2,853

1,860

Provision for directors’ bonuses

112

36

Reserve for loss on disaster

836

547

Other

9,251

10,224

Total current liabilities

53,92353,353

Bonds payable

7,000

7,000

Convertible bond-type bonds with subscription rights

4,900

4,900

Long-term loans payable

32,33132,316

Provision for retirement benefits

Noncurrent liabilities

9,724

9,756

Provision for directors’ retirement benefits

37

27

Provision for special repairs

39

43

Asset retirement obligations

292294

Other

8,431

8,318

Total noncurrent liabilities

62,75662,656116,679

116,009

Capital stock

20,521

20,521

Capital surplus

18,782

18,782

Total liabilities
Net assets
Shareholders’ equity

Retained earnings

20,806

21,214

Treasury stock(1,046)(1,046)

Total shareholders’ equity

59,06359,471219

Accumulated other comprehensive income
Valuation differences on available-for-sale securities
Deferred gains or losses on hedges

(9)

(6)

Foreign currency translation adjustment

(31)

(30)

Total accumulated other comprehensive income

(38)

(17)

Subscription rights to shares
Minority interests
Total net assets
Liabilities and net assets

5107

107

1,472

1,435

60,60460,997

177,284

177,006

(2)Consolidated Statements of (Comprehensive) Ｉncome(Consolidated Statements of Income)(For the three months ended June 30, 2010 and 2011)(Unit: Millions of Yen)
Three months ended

Three months ended
June 30, 2010

June 30, 2011

(April 1, 2010 –June 30, 2010)(April 1, 2011 –June 30, 2011)

Operating revenues

58,89962,658

Cost of sales

53,88657,081Gross profit

5,013

5,577

Selling, general and administrative expenses

3,533

3,544

Operating income

1,479

2,032

Interest income

48

44

Dividends income

235

220

Other

167

105

Total non-operating income

451

369

293

286

Other

112

153

Total non-operating expenses

405

440

1,526

1,961

Non-operating income

Non-operating expenses
Interest expenses

Ordinary income
Extraordinary loss
Loss on retirement of noncurrent assets

143

46

Loss on cancellation of lease contracts

2220

Loss on adjustment for changes of accounting standard for asset
retirement obligation130－

Total extraordinary loss

295

66

Income before income taxes

1,230

1,895

Income taxes- current

123137

Income taxes- deferred

440

742

Total income taxes

563

880

Income before minority interests

666

1,015

Minority interest in income or loss

11(22)Net income

654

1,037

6

(Consolidated Statements of Comprehensive Income)(For the three months ended June 30, 2010 and 2011)(Unit: Millions of Yen)
Three months ended

Three months ended

Income before minority interests

June 30, 2010

June 30, 2011

(April 1, 2010 –June 30, 2010)(April 1, 2011 –June 30, 2011)

666

1,015

Other comprehensive income
(55)

23

Deferred gains or losses on hedges

Valuation difference on available-for-sale securities

34

Foreign currency translation adjustment

410Share of other comprehensive income of associates accounted forusing equity method1(0)Total other comprehensive income

(8)

27

658

1,042

Comprehensive income attributable to owners of the parent

627

1,058

Comprehensive income attributable to minority interests30(15)

Comprehensive income
Comprehensive income attributable to7