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, 2019
[Japan GAAP]

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

February 8, 2019
SENKO Group Holdings Co., Ltd.
Stock Listed on: The First Section of the Tokyo Stock Exchange
9069
URL http://www.senkogrouphd.co.jp/en/
Title: President
Name: Yasuhisa Fukuda
Title: Executive Officer, Public Relations and IR
Name: Noburoh Sasaki
Tel. (06) 6440-5155

Scheduled Date of Issue of Quarterly Financial Report:
Quarterly Supplemental Information Materials:
Scheduled Date of Quarterly Information Meeting:February 14, 2019

Scheduled Date of Dividend Paid: −

None
None
(Amounts less than ¥1 million have been rounded down)

1. Consolidated Operating Results for the Nine Months Ended December 31, 2018
(1) Consolidated Operating Results (Cumulative)
Operating revenue
Nine months ended December 31, 2018
Nine months ended December 31, 2017

Million yen
400,565
373,008%
7.4
8.5(Percentage figures represent year-on-year changes)
Profit attributable toOperating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
15,79418.3
16,065
19.3
9,552
28.5
13,346(6.5)
13,466
(6.7)
7,435
(2.7)

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

Nine months ended December 31, 2017: ¥10,562 million (10.3%)

Profitper share

Diluted profit
per share
Yen
62.88
49.03

Yen
58.32
45.46

Total assets
Million yen
342,836
333,972

Net assets
Million yen
125,749
118,056

Nine months ended December 31, 2018
Nine months ended December 31, 2017(2) Consolidated Financial Position

As of December 31, 2018
As of March 31, 2018
(Reference) Shareholders’ equity:
As of December 31, 2018: ¥118,070 million

Equity ratio
%
34.4
33.7

Net assets per share
Yen
777.61
741.44As of March 31, 2018: ¥112,643 million

2. Dividends
June 30

September 30
Yen
11.00
13.00

Yen
Fiscal year ended March 31, 2018–
Fiscal year ending March 31, 2019–
Fiscal year ending March 31, 2019
(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
11.00

Yen
22.00

13.00

26.00

3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2019 (From April 1, 2018 to March 31, 2019)
Operating revenue
Million yen%
Fiscal year ending March 31, 2019
530,000
7.7(Note) Change in the forecast made in this period: None

Operating profit
Million yen
19,300%12.9(Percentage figures represent year-on-year changes)
Profit attributable toProfitOrdinary profit
owners of parent
per share
Million yen% Million yen%
Yen
19,300 11.5
11,50021.0
75.70

Notes(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries associated with change in scope of
consolidation): Yes
Newly included: 1 company (Company name) M-Senko Logistics Co., Ltd.
(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: None(d) Retrospective restatement: None
(4) Shares outstanding (Common shares)(a) Shares outstanding (including treasury shares)
As of December 31, 2018:

152,861,921 shares

As of March 31, 2018:

152,861,921 shares

1,024,460 shares

As of March 31, 2018:

937,015 shares(b) Treasury shares
As of December 31, 2018:(c) Average number of shares (Cumulative)
Nine months ended December 31, 2018: 151,918,117 shares

Nine months ended December 31, 2017:

151,662,782 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, 2018:351,500 shares; as of March 31, 2018: 349,900 shares) and Performance-linked Stock Compensation Plan for Directors (as ofDecember 31, 2018: 353,000 shares; as of March 31, 2018: 210,200 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 “Forecast
for the full-term of the fiscal year ending March 31, 2019” on page 3.

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, 2019................................................................................................... 3
2. Consolidated Financial Statements ........................................................................................................................................................... 4(1) Consolidated balance sheets .............................................................................................................................................................. 4(2) Consolidated statements of (comprehensive) income ....................................................................................................................... 6
Consolidated statements of income
For the nine months ended December 31, 2017 and 2018 ............................................................................................................ 6
Consolidated statements of comprehensive income
For the nine months ended December 31, 2017 and 2018 ............................................................................................................ 7

1

1.

Results of Operations and Financial Condition(1) Results of operations
In the nine-month period of the fiscal year ending March 31, 2019 (April 1, 2018 to December 31, 2018), the Japanese economy has
been on a path of recovery due to factors that include improvement in the employment and income environment as well as corporate
earnings. The overseas economy continued to mount a modest recovery on the whole, although it continues to have an unclear outlook
due to concerns regarding the broadening trade friction between the United States and China and the effects that could result from the
UK leaving the EU.
In the logistics industry where our core business lies, freight volume has been firm particularly for consumer-related and productionrelated cargo.
In this environment, the Senko Group has been working to expand its business areas, upgrade its operating system and strengthen its
earnings capacity, as the second year of “Senko Innovation Plan 2021 (SIP21)” five-year medium-term business plan.
The following provides an outline of our main activities in the nine-month period.
To expand its business areas, SENKO Co., Ltd. commenced operations of Higashi Fuji PD Center (Fuji City, Shizuoka Prefecture) in
April, Nagareyama Logistics Center (Nagareyama City, Chiba Prefecture) in May, Koga PD Center (Koga City, Ibaraki Prefecture) andKazo PD Center Warehouse No. 2 (Kazo City, Saitama Prefecture) in August, and Koto Warehouse (Higashi Omi City, Shiga Prefecture)
in November.
The Kazo PD Center Warehouse No. 2 is the first three-temperature-zone center operated jointly by SENKO Co., Ltd. and Runtec
Corporation.
In April, Runtec Corporation commenced operations of its Osaka Branch Nanko Center (Osaka City), expanded its Fukuoka BranchCenter (Kasuya County, Fukuoka Prefecture), and opened Keihin Branch Kawasaki FAZ Center (Kawasaki City) in December.
Outside Japan, in May SHANGHAI SENKO INTERNATIONAL FREIGHT FORWARDING INC. commenced operations of its Qingpu
Logistics Center (Shanghai, China), and in November SINOTRANS SENKO INTERNATIONAL COLD LOGISTICS CO., LTD.
commenced operations of its Beijing Logistics Center (Beijing, China).
In Thailand, M-Senko Logistics Co., Ltd., a joint venture with MK Restaurant Group Public Company Limited, a major restaurant chain
conglomerate, started business operations in July. Moreover, we have been working to strengthen operations in the ASEAN region,
having made Thailand-based Best Global Logistics Co., Ltd., which engages in the business of air and marine transport and other suchoperations, a Group company in September.
To upgrade the operating system, we have been actively moving ahead with labor-saving and mechanization initiatives in our distribution
centers by adopting the latest technologies such as robotic arms and unmanned forklifts. Aiming to accelerate such labor-saving andmechanization initiatives, we set up the AI Project and the Robotics Project in April to promote R&D and other such endeavors andestablished innovatech studio Co., Ltd. in July to develop next-generation technologies and engage in system sales.
Moreover, having succeeded SENKO Co., Ltd.’s marine shipping business, Senko Line Co., Ltd. started business operations in April,
and aims to expand the marine shipping business.
With respect to our modal shift, in June we received the Logistics Environment Grand Prix Award (the highest Logistics Environment
Award) and three Logistics Environment Special Awards from the Japan Association for Logistics and Transport in recognition of ourinitiatives that include switching from the previous use of trucks to the use of railroads and marine vessels for long-distance transport. In
November, we received four Awards for Excellent Business Entities Working on Modal Shift.
To strengthen the earnings capacity, we worked on streamlining back office operations, improving productivity at distribution sites andother initiatives.
The nine-month-period performance was as follows.
(Unit: Millions of Yen)

Operating revenue
Operating profit
Ordinary profit
Profit attributable to owners ofparentNine months ended
December 31, 2017
373,008

Nine months ended
December 31, 2018
400,565

13,346
13,466
7,435

Change%27,557

7.4

15,794
16,065

2,447
2,599

18.3
19.3

9,552

2,117

28.5

Consolidated operating revenue for the nine-month period ended December 31, 2018 of the current fiscal year increased 7.4% year on
year to ¥400,565 million. This result mainly reflected effects of expanding sales and revising the freight charges, year-on-year differences
arising with respect to ANZEN YUSO CO., LTD. and OKUMURA CO., LTD. which became consolidated subsidiaries in the previous
fiscal year, as well as the effects of making operating companies of living support services (KEIHANNA helper station Co., Ltd., VENUS
CO., LTD., BLUE EARTH JAPAN Co., Ltd., etc.) and M-Senko Logistics Co., Ltd. into consolidated subsidiaries in April and in July,
respectively.

2

On the profit front, despite factors that include higher costs largely stemming from rises in outsourcing costs and increases in fuel prices,
consolidated operating profit increased to ¥15,794 million, up 18.3% year on year, and consolidated ordinary profit increased to ¥16,065
million, up 19.3% year on year. The upturn in profits was largely attributable to positive effects on profits brought about by expanding
sales, revising freight charges and making entities into consolidated subsidiaries, and furthermore due to the decrease in the amountamortized for actuarial differences in accounting for retirement benefit obligations. Profit attributable to owners of parent increased to¥9,552 million, up 28.5% year on year, partially as a result of having made Runtec Corporation and other entities into wholly owned
subsidiaries.
The nine-month-period operating revenue by segment was as follows.
Logistics
Operating revenue grew 8.3% year on year to ¥283,706 million in this segment. This was mainly attributable to higher revenues
generated by large facilities newly opened, expansion of sales of daily-use items, food products, apparel, and chemical products, effects
of revising the freight charges, year-on-year differences related to the timing of consolidation of ANZEN YUSO CO., LTD., and making MSenko Logistics Co., Ltd. into a consolidated subsidiary.
Trading & commerce
Operating revenue grew 1.8% year on year to ¥108,094 million in this segment. This was attributable to higher revenues mainly fromtrade operations and sales of petroleum products, and also due to year-on-year differences related to the timing of consolidation of
OKUMURA CO., LTD.
OthersOperating revenue rose 79.7% year on year to ¥8,764 million in this segment. This was mainly attributable to higher revenues due to theconsolidation of operating companies of living support services.
(2) Financial condition
Assets, liabilities and net assets
Total assets
Total assets as of December 31, 2018 were ¥342,836 million, ¥8,864 million higher than at the end of the previous fiscal year.
Current assets amounted to ¥121,374 million, up ¥7,225 million from the end of the previous fiscal year. This mainly reflected increasesof ¥5,252 million in notes and operating accounts receivable, ¥1,192 million in securities and ¥735 million in merchandise and finishedgoods.
Non-current assets totaled ¥221,423 million, up ¥1,656 million from the end of the previous fiscal year. This was primarily due toincreases of ¥3,031 million in property, plant and equipment and ¥425 million in intangible assets, despite a decrease of ¥1,799 million in
investments and other assets.
Liabilities
Liabilities as of December 31, 2018 increased ¥1,171 million from the end of the previous fiscal year to ¥217,087 million.
Current liabilities totaled ¥107,000 million, up ¥951 million from the end of the previous fiscal year. This was mainly due to increases of¥904 million in notes and operating accounts payable-trade and ¥3,329 million in short-term loans payable, despite decreases of ¥2,114
million in income taxes payable and ¥1,233 million in provision for bonuses.
Non-current liabilities totaled ¥110,086 million, up ¥219 million from the end of the previous fiscal year. This was primarily due to anincrease of ¥3,359 million in long-term lease obligations, despite a decrease in long-term loans payable of ¥2,805 million.
Net assets
Net assets as of December 31, 2018 rose ¥7,692 million from the end of the previous fiscal year to ¥125,749 million. This was mainly
attributable to increases of ¥5,593 million in retained earnings and ¥2,213 million in non-controlling interests. The equity ratio as ofDecember 31, 2018 increased by 0.7 percentage points to 34.4% from the end of the previous fiscal year.
(3) Forecast for the full-term of the fiscal year ending March 31, 2019
No revisions have been made to the forecast of consolidated operating results for the fiscal year ending March 31, 2019, announced in“Summary of Financial Statements for the Fiscal Year Ended March 31, 2018” on May 10, 2018.

3

2.

Consolidated Financial Statements(1) Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2018

As of December 31, 2018

AssetsCurrent assets
Cash and deposits

24,99524,967

Notes and operating accounts receivable

70,52675,779

–

1,192

7,293

8,028

Work in process

351

855

Raw materials and supplies

536

637

10,460

9,920

(16)

(8)

114,148

121,374

Buildings and structures, net

55,04564,933

Securities
Merchandise and finished goods

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Land59,613

59,238Other, net

45,411

38,931

Total property, plant and equipment

160,071

163,102

Intangible assets
Goodwill

6,522

6,631

Other

4,225

4,541

Total intangible assets

10,747

11,172

Investments and other assets
Investment securities

22,642

20,225Long-term loans receivable

3,709

3,006

Net defined benefit asset

3,658

4,126

Guarantee deposits

12,11812,937

Deferred tax assets

4,317

3,472

Other

3,718

4,031

Allowance for doubtful accounts(1,216)(651)

Total investments and other assets

48,947

47,148219,766

221,423

Business commencement expenses

57

38

Total deferred assets

57

38

333,972

342,836

Total non-current assets
Deferred assets

Total assets

4

(Unit: Millions of Yen)
As of March 31, 2018

As of December 31, 2018

Liabilities
Current liabilities
Notes and operating accounts payable-trade37,41838,323

Electronically recorded obligations-operating

7,189

7,508

Current portion of bonds

48

48

Short-term loans payable

29,351

32,680

Lease obligations

3,073

3,164

Income taxes payable

4,509

2,394

Provision for bonuses

4,625

3,392

Provision for directors’ bonuses

197

233

Provision for loss on disaster

–

230

Other

19,63419,023

Total current liabilities

106,048

107,000

Bonds payable

17,16817,120Convertible bond-type bonds with share acquisitionrights10,03910,032Long-term loans payable

63,23260,427

Lease obligations

7,342

10,702

Provision for directors’ retirement benefits

159

173

Provision for special repairs

82

78

Net defined benefit liability

6,901

6,593

Asset retirement obligations

819

915

4,120

4,042

109,866

110,086

215,915217,087

26,52826,528Non-current liabilities

Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus

29,73030,006

Retained earnings

54,96860,562

Treasury shares

(590)

(697)

110,637

116,398

1,775

1,238

Deferred gains or losses on hedges

(61)

(25)

Foreign currency translation adjustment

334

215

Remeasurements of defined benefit plans

(42)

243

2,005

1,671

Share acquisition rights

373

424

Non-controlling interests

5,040

7,253

118,056

125,749

333,972

342,836

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

Total accumulated other comprehensive income

Total net assets
Total liabilities and net assets5(2) Consolidated statements of (comprehensive) income(Consolidated statements of income)(For the nine months ended December 31, 2017 and 2018)(Unit: Millions of Yen)
Nine months ended
December 31, 2017

Nine months ended
December 31, 2018

(April 1, 2017–December 31, 2017)(April 1, 2018–December 31, 2018)

Operating revenue

373,008

400,565

Operating cost

333,647

355,840

Operating gross profit

39,361

44,725

Selling, general and administrative expenses

26,01428,931

Operating profit

13,346

15,794

Interest income

74

94

Dividend income

132

142

Other

1,198

1,394

Total non-operating income

1,405

1,631

Interest expenses

730

834

Other

555

526

1,286

1,360

13,466

16,065

Subsidy income

88

1,268

Gain on sales of non-current assets

369

346

Gain on sales of investment securities

66

178

Gain on liquidation of subsidiaries and associates–

79

Reversal of allowance for doubtful accounts for
subsidiaries and associates–

43

Delinquency charges

157–

Total extraordinary income

682

1,916

101

1,256

Loss on valuation of shares of subsidiaries andassociates–

585

Provision for loss on disaster–

204

Loss on liquidation of subsidiaries–

168

Loss on office withdrawal

311

133

Loss on retirement of non-current assets

117

86

–

31

529

2,468

Profit before income taxes

13,61915,514

Income taxes-current

3,649

4,650

Income taxes-deferred

920

976

Total income taxes

4,570

5,627

Profit

9,049

9,886

Profit attributable to non-controlling interests

1,613

334

Profit attributable to owners of parent

7,435

9,552

Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses
Loss on reduction of non-current assets

Loss on disaster
Total extraordinary losses

6

(Consolidated statements of comprehensive income)(For the nine months ended December 31, 2017 and 2018)(Unit: Millions of Yen)
Nine months ended
December 31, 2017

Nine months ended
December 31, 2018

(April 1, 2017–December 31, 2017)(April 1, 2018–December 31, 2018)

Profit

9,049

9,886

Valuation difference on available-for-sale securities

738

(548)

Deferred gains or losses on hedges

1035

Foreign currency translation adjustment

39

(148)

Remeasurements of defined benefit plans, net of tax

724

285

1,513

(376)

10,562

9,510

Comprehensive income attributable to owners ofparent

8,879

9,221

Comprehensive income attributable to noncontrolling interests

1,682

288

Other comprehensive income

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to7