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 Second Quarter of the Fiscal Year Ending March 31, 2021
[Japan GAAP]

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

November 6, 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. (03) 6862-8842

Scheduled Date of Issue of Quarterly Financial Report: November 13, 2020
Yes
Quarterly Supplemental Information Materials:
Yes (for analysts)
Quarterly Information Meeting:

Scheduled Date of Dividend Paid: December 3, 2020

(Amounts less than ¥1 million have been rounded down)
1. Consolidated Operating Results for the Six Months Ended September 30, 2020
(1) Consolidated Operating Results (Cumulative)
Operating revenue
Six months ended September 30, 2020
Six months ended September 30, 2019

Million yen
273,449
282,070

%
(3.1)
8.3

(Percentage figures represent year-on-year changes)
Profit attributable toOperating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen
%
9,641
(6.8)
9,767
(3.8)
5,726
(11.0)
10,343
13.6
10,155
8.4
6,431
14.5

(Note) Comprehensive income
Six months ended September 30, 2020: ¥6,165 million (-3.8%)

Six months ended September 30, 2019: ¥6,406 million (6.2%)

Profitper share

Diluted profit
per share
Yen
37.67
42.34

Yen
34.95
39.27

Total assets
Million yen
376,877
356,308

Net assets
Million yen
138,476
134,181Six months ended September 30, 2020
Six months ended September 30, 2019(2) Consolidated Financial Position

As of September 30, 2020
As of March 31, 2020
(Reference) Equity:

As of September 30, 2020: ¥129,427 million

Equity ratio
%
34.3
35.1

Net assets per share
Yen
850.78823.61

As of March 31, 2020: ¥125,158 million

2. Dividends
June 30

September 30
Yen
13.00
13.00

Yen
Fiscal year ended March 31, 2020–
Fiscal year ending March 31, 2021–
Fiscal year ending March 31, 2021
(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, 2021 (From April 1, 2020 to March 31, 2021)
Operating revenue

Operating profit

Million yen
585,000

Million yen
20,200%
2.6

Fiscal year ending March 31, 2021
(Note) Change in the forecast made in this period: None

%
(2.2)

(Percentage figures represent year-on-year changes)
Profit attributable toProfitOrdinary profit
owners of parent
per share
Million yen% Million yen%
Yen
20,000 (3.6)
11,400(5.6)
74.99

Notes(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries associated with change in scope of
consolidation): 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: None(d) Retrospective restatement: None
(4) Shares outstanding (Common shares)(a) Shares outstanding (including treasury shares)
As of September 30, 2020:

152,952,221 shares

As of March 31, 2020:

152,861,921 shares

823,706 shares

As of March 31, 2020:

898,113 shares(b) Treasury shares
As of September 30, 2020:(c) Average number of shares (Cumulative)
Six months ended September 30, 2020: 152,031,426 shares

Six months ended September 30, 2019:

151,909,767 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 September 30, 2020:
342,540 shares; as of March 31, 2020: 348,880 shares) and Performance-linked Stock Compensation Plan for Directors (as of
September 30, 2020: 348,873 shares; as of March 31, 2020: 352,988 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, 2021” 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, 2021................................................................................................... 3
2. Consolidated Financial Statements ............................................................................................................................................................. 4(1) Consolidated balance sheets .............................................................................................................................................................. 4(2) Consolidated statements of (comprehensive) income ....................................................................................................................... 6
Consolidated statements of income
For the six months ended September 30, 2019 and 2020 ............................................................................................................. 6
Consolidated statements of comprehensive income
For the six months ended September 30, 2019 and 2020 ............................................................................................................. 7(3) Consolidated statements of cash flows .............................................................................................................................................. 81

1.

Results of Operations and Financial Condition(1) Results of operations
In the six-month period of the fiscal year ending March 31, 2021 (April 1, 2020 to September 30, 2020), the economic environment hascontinued to maintain an uncertain outlook with still no clear timeline for the end of the novel coronavirus disease (COVID-19) despite thegradual resumption of economic activity following the lifting of the state of emergency.
The six-month-period performance was as follows.
(Unit: Millions of Yen)

Operating revenue

Six months ended
September 30, 2019
282,070

Six months ended
September 30, 2020
273,449

10,343
10,155
6,431

Operating profit
Ordinary profit
Profit attributable to owners ofparentChange%(8,621)

(3.1)

9,641
9,767

(701)
(388)

(6.8)
(3.8)

5,726

(704)

(11.0)

Consolidated operating revenue for the six-month period ended September 30, 2020 of the current fiscal year decreased ¥8,621 million
year on year to ¥273,449 million, with the Logistics and Others businesses being significantly affected by COVID-19 pandemic. In terms
of profits, as a result of group-wide efforts to expand sales, reduce expenses, improve cost efficiency and increase productivity, operating
profit increased year on year for the July-September quarter. However, the negative impact on profit of the April-June quarter was
significant and caused consolidated operating profit, consolidated ordinary profit and profit attributable to owners of parent for the sixmonth period to all decrease year on year.
The six-month-period operating revenue by segment was as follows.
Logistics(Unit: Millions of Yen)

Operating revenue

Six months ended
September 30, 2019
196,199

Six months ended
September 30, 2020
188,068

8,808

8,559

Segment income

Change%(8,130)

(4.1)

(249)

(2.8)

Although there was an increase in cargo volume for discount stores, drugstores and other chain stores, the COVID-19 pandemic caused
a significant decrease in the volume for fashion-related industry, housing-related industry, chemical-related industry, and frozen andrefrigerated cargo for school lunch and restaurant industry, and as a result, operating revenue decreased ¥8,130 million year on year to¥188,068 million. Despite efforts to expand sales, reduce expenses, improve cost efficiency and increase productivity, segment income
decreased ¥249 million year on year to ¥8,559 million.
Trading & commerce(Unit: Millions of Yen)

Operating revenue
Segment income

Six months ended
September 30, 2019
77,903Six months ended
September 30, 2020
77,534995

1,461

Change

%
(369)

(0.5)

465

46.8

Operating revenue decreased to ¥77,534 million, down ¥369 million year on year primarily due to decreased fuel sales. On the other
hand, segment income increased ¥465 million year on year to ¥1,461 million due to adjustment to the sales price of household paper
and increased sales of daily necessities associated with increased demand for home deliveries.
Others(Unit: Millions of Yen)

Operating revenue
Segment income (loss)

Six months ended
September 30, 2019
7,967

Six months ended
September 30, 2020
7,846

906

(26)

Change

%
(120)

(1.5)

(932)

–

Due to the spread of COVID-19, the number of customers decreased significantly at hotels, fitness gyms, day-service nursing carefacilities, restaurants, etc., and operating revenue decreased ¥120 million year on year to ¥7,846 million, while segment income fell ¥932
million year on year to record a segment loss of ¥26 million.

2(2) Financial condition
1) Assets, liabilities and net assets
Total assets
Total assets as of September 30, 2020 were ¥376,877 million, ¥20,568 million higher than at the end of the previous fiscal year.
Current assets amounted to ¥141,621 million, up ¥17,410 million from the end of the previous fiscal year. This was mainly due toincreases of ¥7,578 million in cash and deposits and ¥9,999 million in securities.
Non-current assets totaled ¥234,610 million, up ¥3,225 million from the end of the previous fiscal year. This was primarily due toincreases of ¥7,232 million in property, plant and equipment and ¥1,110 million in intangible assets, despite a decrease of ¥5,116 million
in investments and other assets.
Liabilities
Liabilities as of September 30, 2020 increased ¥16,273 million from the end of the previous fiscal year to ¥238,400 million.
Current liabilities totaled ¥96,763 million, down ¥14,874 million from the end of the previous fiscal year. This was mainly due todecreases of ¥2,313 million in trade notes and accounts payable and ¥10,897 million in short-term borrowings.
Non-current liabilities totaled ¥141,636 million, up ¥31,147 million from the end of the previous fiscal year. This was mainly attributable toincreases of ¥19,976 million in bonds payable and ¥11,845 million in long-term borrowings.
Net assets
Net assets as of September 30, 2020 rose ¥4,295 million from the end of the previous fiscal year to ¥138,476 million. This was primarily
due to increases of ¥3,792 million in retained earnings and ¥595 million in valuation difference on available-for-sale securities. The equity
ratio as of September 30, 2020 decreased by 0.8 percentage points to 34.3% from the end of the previous fiscal year.
2) Cash flows
Cash and cash equivalents as of September 30, 2020 increased by ¥17,048 million from the end of the previous fiscal year to ¥44,190
million.
Net cash provided by operating activities amounted to ¥10,662 million. This was mainly due to profit before income taxes of ¥9,457
million, depreciation of ¥8,337 million, and an increase in cash due to a decrease in trade receivables of ¥3,860 million, despite adecrease in cash due to an increase in inventories of ¥1,659 million, a decrease in cash due to a decrease in trade payables of ¥2,947
million, a decrease in cash due to a decrease in accrued consumption taxes of ¥985 million, a decrease in cash due to an increase in
consumption taxes refund receivable of ¥535 million, and income taxes paid of ¥4,684 million.
Net cash used in investing activities totaled ¥10,153 million. This was mainly due to purchase of property, plant and equipment of ¥8,970
million and purchase of shares of subsidiaries resulting in change in scope of consolidation of ¥776 million.
Net cash provided by financing activities totaled ¥15,671 million. This was mainly due to proceeds from long-term borrowings of ¥13,161
million and proceeds from issuance of bonds of ¥20,000 million, despite net decrease in short-term borrowings of ¥4,110 million,
repayments of long-term borrowings of ¥9,097 million, repayments of finance lease obligations of ¥2,098 million and dividends paid of¥1,983 million.
(3) Forecast for the full-term of the fiscal year ending March 31, 2021
No revisions have been made to the forecast of consolidated operating results for the fiscal year ending March 31, 2021, announced in“Summary of Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2021” on August 11, 2020.

3

2.

Consolidated Financial Statements(1) Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2020

As of September 30, 2020

AssetsCurrent assets
Cash and deposits

28,47936,057

Trade notes and accounts receivable

74,36171,719

Electronically recorded monetary claims - operating

2,651

1,770

–

9,999

8,368

9,717

Work in process

679

1,080

Raw materials and supplies

567

481

9,125

10,813(21)(18)

124,210

141,621

Securities
Merchandise and finished goods

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

64,141

72,683

Land

61,66962,957

Other, net

45,16642,569Total property, plant and equipment

170,978

178,210Goodwill

7,762

8,700

Other

5,391

5,564

Total intangible assets

13,154

14,264

Investment securities

17,66215,804Long-term loans receivable

3,452

272

Retirement benefit asset

2,094

2,385

Guarantee deposits

14,556

15,066

Deferred tax assets

5,996

5,520

Other

4,269

3,415

Allowance for doubtful accounts

(779)

(330)

Total investments and other assets

47,251

42,135

231,384

234,610

Business commencement expenses

713

644

Total deferred assets

713

644

356,308

376,877

Intangible assets

Investments and other assets

Total non-current assets
Deferred assets

Total assets

4

(Unit: Millions of Yen)
As of March 31, 2020

As of September 30, 2020

Liabilities
Current liabilities
Trade notes and accounts payable

40,98538,672

Electronically recorded obligations - operating

6,559

6,505

48

48

Short-term borrowings

29,252

18,354

Lease obligations

3,673

3,786

Income taxes payable

3,745

3,526

Provision for bonuses

5,433

6,207

401

202

Other

21,537

19,460Total current liabilities

111,638

96,763

Bonds payable

17,07237,048

Convertible bond-type bonds with share acquisitionrights10,01910,014Long-term borrowings

55,83967,684

Lease obligations

13,912

14,244

Provision for retirement benefits for directors (andother officers)

201

204

Provision for special repairs

90

88

Provision for share-based remuneration

271–

Retirement benefit liability

7,060

6,793

Asset retirement obligations

1,145

1,237

Other

4,876

4,321

110,489

141,636

222,127

238,400

Share capital

26,52826,564

Capital surplus

29,77029,802Retained earnings

70,901

74,694

Treasury shares

(652)

(637)

126,548

130,423

Valuation difference on available-for-sale securities

779

1,375

Deferred gains or losses on hedges

144Foreign currency translation adjustment

256

(134)

Remeasurements of defined benefit plans(2,439)(2,241)

Total accumulated other comprehensive income(1,390)(995)

Share acquisition rights

432

410

Non-controlling interests

8,590

8,638

134,181

138,476

356,308

376,877

Current portion of bonds payable

Provision for bonuses for directors (and otherofficers)

Non-current liabilities

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

Total shareholders’ equity
Accumulated other comprehensive income

Total net assets
Total liabilities and net assets5(2) Consolidated statements of (comprehensive) income(Consolidated statements of income)(For the six months ended September 30, 2019 and 2020)(Unit: Millions of Yen)
Six months ended
September 30, 2019

Six months ended
September 30, 2020

(April 1, 2019–September 30, 2019)(April 1, 2020–September 30, 2020)

Operating revenue

282,070

273,449

Operating costs

248,942

240,422

Operating gross profit

33,12833,026

Selling, general and administrative expenses

22,784

23,384

Operating profit

10,343

9,641

52

27

Non-operating income
Interest income
Dividend income

89

94

Other

843

1,122

Total non-operating income

985

1,244

Interest expenses

551

552

Other

621

565

1,173

1,118

10,155

9,767

32

452

Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities–

35

Insurance claim income

144–

Gain on extinguishment of tie-in shares

51–

Total extraordinary income

228

488

Loss on COVID-19 impact–

337

Loss on valuation of investment securities–

277

Loss on office withdrawal–

60

Loss on tax purpose reduction entry of non-current
assets–44

Loss on retirement of non-current assets

69

42

Impairment loss–

37

Provision of allowance for doubtful accounts for
subsidiaries and associates

77–

Litigation settlement

55–

Total extraordinary losses

202

798

Profit before income taxes

10,181

9,457

Income taxes - current

3,376

3,332

Income taxes - deferred

134

230

Total income taxes

3,511

3,562

Profit

6,670

5,894

239

167

6,431

5,726

Extraordinary losses

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

6

(Consolidated statements of comprehensive income)(For the six months ended September 30, 2019 and 2020)(Unit: Millions of Yen)
Six months ended
September 30, 2019

Six months ended
September 30, 2020

(April 1, 2019–September 30, 2019)(April 1, 2020–September 30, 2020)

Profit

6,670

5,894

Valuation difference on available-for-sale securities

(344)

631

Deferred gains or losses on hedges

(21)

(11)

Foreign currency translation adjustment

(3)

(547)

Remeasurements of defined benefit plans, net of tax

105

198

Total other comprehensive income

(263)

271

6,406

6,165

6,134

6,126

272

39

Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests7(3) Consolidated statements of cash flows(Unit: Millions of Yen)
Six months ended
September 30, 2019

Six months ended
September 30, 2020

(April 1, 2019–September 30, 2019)(April 1, 2020–September 30, 2020)

Cash flows from operating activities
Profit before income taxes

10,181

9,457

Depreciation

7,594

8,337

Amortization of goodwill

364

339

Increase (decrease) in allowance for doubtful
accounts

97(52)

Decrease (increase) in retirement benefit asset

(67)

(38)

Increase (decrease) in retirement benefit liability

(363)

(332)

Increase (decrease) in provision for share-based
remuneration

33

(271)

Increase (decrease) in provision for bonuses

709

590

Interest and dividend income

(141)

(122)

Foreign exchange losses (gains)

409

(1)

Interest expenses

551

552

Loss on tax purpose reduction entry of non-current
assets–44

Impairment loss–

37

Insurance claim income

(144)

–

Litigation settlement

55–

Loss (gain) on extinguishment of tie-in shares

(51)

–

Loss (gain) on sales of non-current assets

(30)

(434)

Loss on retirement of non-current assets

69

42

Loss (gain) on sales of investment securities

(10)

(35)

Decrease (increase) in trade receivables

766

3,860

Decrease (increase) in inventories(998)(1,659)

Increase (decrease) in trade payables

588(2,947)

Increase (decrease) in accrued consumption taxes

37

(985)

Decrease (increase) in consumption taxes refund
receivable

376

(535)

Other

(197)

(275)

Subtotal

19,83015,567

46

347

(552)

(568)

Income taxes paid

(4,285)(4,684)

Net cash provided by (used in) operating activities

15,03910,662

Payments into time deposits(2,033)(991)

Proceeds from withdrawal of time deposits

2,148

834

Purchase of property, plant and equipment(8,044)(8,970)

Proceeds from sales of property, plant andequipment

408

1,294

Purchase of investment securities

(37)

(292)

Proceeds from sales of investment securities

49

75

Purchase of shares of subsidiaries resulting inchange in scope of consolidation

–

(776)

(1,647)

(487)

(434)

(839)

(9,590)(10,153)

Interest and dividends received
Interest paid

Cash flows from investing activities

Payments of guarantee deposits
Other
Net cash provided by (used in) investing activities

8Six months ended
September 30, 2019

Six months ended
September 30, 2020

(April 1, 2019–September 30, 2019)(April 1, 2020–September 30, 2020)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

1,509(4,110)

Proceeds from long-term borrowings

4,458

13,161

Repayments of long-term borrowings(5,701)(9,097)

Repayments of finance lease obligations(1,944)(2,098)Proceeds from issuance of bonds–

20,000Purchase of treasury shares

–

(311)

Proceeds from sales of treasury shares

0106(1,971)(1,983)

(162)

(164)

1

169

(3,810)15,671

(40)

(210)

Net increase (decrease) in cash and cash equivalents

1,598

15,969Cash and cash equivalents at beginning of period

22,801

27,142

Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation

315

1,078

Increase in cash and cash equivalents resulting frommerger with unconsolidated subsidiaries

66–

24,782

44,190

Dividends paid
Dividends paid to non-controlling interests
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents

Cash and cash equivalents at end of period9