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, 2022
[Japan GAAP]
Name of Listed Company:
Code Number:
Representative:
Inquiries:

November 12, 2021
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 12, 2021
Yes
Quarterly Supplemental Information Materials:
Yes (for analysts)
Quarterly Information Meeting:

Scheduled Date of Dividend Paid: December 3, 2021

(Amounts less than ¥1 million have been rounded down)
1. Consolidated Operating Results for the Six Months Ended September 30, 2021
(1) Consolidated Operating Results (Cumulative)
Operating revenue
Six months ended September 30, 2021
Six months ended September 30, 2020

Million yen
300,762
273,449

%
10.0
(3.1)

(Percentage figures represent year-on-year changes)
Profit attributable toOperating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
11,705
21.4
11,964
22.5
6,955
21.5
9,641
(6.8)
9,767
(3.8)
5,726
(11.0)(Note) Comprehensive income
Six months ended September 30, 2021: ¥7,807 million (26.6%)
Profitper share
Six months ended September 30, 2021
Six months ended September 30, 2020

Six months ended September 30, 2020: ¥6,165 million (–3.8%)
Diluted profit
per share

Yen
47.20
37.67

Yen
39.20
34.95

(2) Consolidated Financial Position
Total assets
Million yen
453,934
436,066

As of September 30, 2021
As of March 31, 2021
(Reference) Equity:

As of September 30, 2021: ¥136,204 million

Net assets
Million yen
148,400
146,120

Equity ratio

%
30.0
30.9

Net assets per shareYen
939.81909.55

As of March 31, 2021: ¥134,783 million(Note) During the second quarter ended September 30, 2021, the Company finalized the provisional accounting treatment for businesscombinations. As a result, figures for the fiscal year ended March 31, 2021 reflect the finalization of the provisional accounting treatment.
2. Dividends
June 30

Yen––

September 30
Yen
13.00
17.00

Fiscal year ended March 31, 2021
Fiscal year ending March 31, 2022
Fiscal year ending March 31, 2022
(Forecast)(Note) Change in the estimation of dividend for the fiscal year in this period: Yes

Annual dividend
December 31
Yen––March 31

Yen
15.00

15.00

Total

Yen
28.00
32.00

3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2022 (From April 1, 2021 to March 31, 2022)
Operating revenue

Operating profit

Million yen
625,000

Million yen
25,200Fiscal year ending March 31, 2022
(Note) Change in the forecast made in this period: Yes

%
9.2

%
17.1

(Percentage figures represent year-on-year changes)
Profit attributable toProfitOrdinary profit
owners of parent
per share
Million yen% Million yen%
Yen
25,600 15.2
14,8003.9
100.42

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: Yes(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, 2021:

152,952,221 shares

As of March 31, 2021:

152,952,221 shares

8,024,208 shares

As of March 31, 2021:

4,764,111 shares(b) Treasury shares
As of September 30, 2021:(c) Average number of shares (Cumulative)
Six months ended September 30, 2021: 147,371,289 shares

Six months ended September 30, 2020:

152,031,426 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, 2021:
338,276 shares; as of March 31, 2021: 341,740 shares) and Performance-linked Stock Compensation Plan for Directors (as of
September 30, 2021: 339,226 shares; as of March 31, 2021: 348,873 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, 2022” 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, 2022................................................................................................... 3
2. Consolidated Financial Statements ............................................................................................................................................................. 5(1) Consolidated balance sheets .............................................................................................................................................................. 5(2) Consolidated statements of (comprehensive) income ....................................................................................................................... 7
Consolidated statements of income
For the six months ended September 30, 2020 and 2021 ............................................................................................................. 7
Consolidated statements of comprehensive income
For the six months ended September 30, 2020 and 2021 ............................................................................................................. 8(3) Consolidated statements of cash flows .............................................................................................................................................. 91

1.

Results of Operations and Financial Condition(1) Results of operations
In the six-month period of the fiscal year ending March 31, 2022 (April 1, 2021 to September 30, 2021), the economic environment
continued to be harsh due to the ongoing spread of the novel coronavirus disease (COVID-19). Although socio-economic activities are
increasingly expected to normalize through the vaccination rollout and other measures, the outlook still remains unclear.
The six-month-period performance was as follows.
(Unit: Millions of Yen)

Operating revenue
Operating profit
Ordinary profit
Profit attributable to owners ofparentSix months ended
September 30, 2020
273,449

Six months ended
September 30, 2021
300,762

9,641
9,767
5,726

Change%27,31310.0

11,705
11,964

2,063
2,196

21.4
22.5

6,955

1,228

21.5

Amid signs that cargo volumes are recovering in the Logistics business, we made group-wide efforts to expand sales, improve cost
efficiency and enhance productivity, as well as promote M&A, and as a result, consolidated operating revenue, consolidated operating
profit, consolidated ordinary profit, and profit attributable to owners of parent all increased year on year.
The six-month-period operating revenue by segment was as follows.
Logistics(Unit: Millions of Yen)

Operating revenue
Segment income

Six months ended
September 30, 2020
188,068

Six months ended
September 30, 2021
208,540

8,559

10,883

Change%20,471

10.9

2,323

27.2

Amid an apparent recovery in cargo volumes, which declined drastically due to the impact of the spread of COVID-19 in thecorresponding period of the previous fiscal year, we strived to expand sales, improve cost efficiency and enhance productivity while
reaping the contribution of revenue from M&A we conducted in the previous fiscal year. As a result, operating revenue increased ¥20,471
million year on year to ¥208,540 million, and segment income rose ¥2,323 million year on year to ¥10,883 million.
Trading & commerce(Unit: Millions of Yen)

Operating revenue
Segment income

Six months ended
September 30, 2020
77,534Six months ended
September 30, 2021
75,010

1,461

1,372

Change%(2,523)

(3.3)

(88)

(6.1)

In addition to making household paper wholesale distributor AZFIT CO., Ltd. a consolidated subsidiary in April, we worked on expanding
sales, improving cost efficiency among other initiatives. However, in part as a result of applying the Accounting Standard for Revenue
Recognition and relevant revised ASBJ regulations, and in part due to rising purchase prices in fuel sales, among other factors,
operating revenue decreased by ¥2,523 million year on year to ¥75,010 million and segment income fell ¥88 million year on year to¥1,372 million.
Others(Unit: Millions of Yen)

Operating revenue
Segment loss

Six months ended
September 30, 2020
7,846

Six months ended
September 30, 2021
17,211

(26)

(106)

Change

%
9,364

119.4

(79)

–

In addition to making membership-based general wholesale and retail business operator TERAUCHI CO., LTD. a consolidated
subsidiary in January 2021, we worked on expanding sales, improving cost efficiency among other initiatives. However, in part due to thecontinued impact of the spread of COVID-19, operating revenue rose ¥9,364 million year on year to ¥17,211 million while segment loss
was ¥106 million, a deterioration of ¥79 million year on year.

2(2) Financial condition
1) Assets, liabilities and net assets
Total assets
Total assets as of September 30, 2021 were ¥453,934 million, ¥17,868 million higher than at the end of the previous fiscal year.
Current assets totaled ¥163,945 million, up ¥54 million from the end of the previous fiscal year. This was mainly due to increases of ¥535
million in trade notes and accounts receivable, and contract assets as well as ¥749 million in electronically recorded monetary claims operating, despite a decrease of ¥1,142 million in cash and deposits.
Non-current assets totaled ¥289,989 million, up ¥17,813 million from the end of the previous fiscal year. This was primarily due toincreases of ¥14,427 million in property, plant and equipment and ¥3,205 million in intangible assets.
Liabilities
Liabilities as of September 30, 2021 increased ¥15,587 million from the end of the previous fiscal year to ¥305,533 million.
Current liabilities totaled ¥128,306 million, down ¥5,408 million from the end of the previous fiscal year. This was mainly due todecreases of ¥1,390 million in income taxes payable and ¥4,796 million in other current liabilities, despite an increase of ¥568 million inelectronically recorded obligations - operating.
Non-current liabilities totaled ¥177,227 million, up ¥20,996 million from the end of the previous fiscal year. This was mainly attributable toincreases of ¥9,976 million in bonds payable, ¥7,927 million in long-term borrowings, ¥1,701 million in long-term lease obligations and¥1,540 million in other non-current liabilities.
Net assets
Net assets as of September 30, 2021 rose ¥2,280 million from the end of the previous fiscal year to ¥148,400 million. This was primarily
due to increases of ¥4,743 million in retained earnings and ¥878 million in non-controlling interests, despite a decrease of ¥3,498 million
in purchase of treasury shares. The equity ratio as of September 30, 2021 decreased by 0.9 percentage points to 30.0% from the end of
the previous fiscal year.
With regard to the business combination with UACJ Logistics Corporation on December 1, 2020, although provisional accounting
treatment was applied in the fiscal year ended March 31, 2021, the business combination was finalized during the second quarter ended
September 30, 2021. As a result, the financial position is compared and analyzed with that at the end of the previous fiscal year using theamounts after the revision due to the finalization of the provisional accounting treatment.
2) Cash flows
Cash and cash equivalents as of September 30, 2021 decreased by ¥1,245 million from the end of the previous fiscal year to ¥49,126
million.
Net cash provided by operating activities amounted to ¥12,170 million. This was mainly due to profit before income taxes of ¥11,685
million and depreciation of ¥9,337 million, despite a decrease in cash due to a decrease in accrued liabilities of ¥2,583 million andincome taxes paid of ¥5,394 million.
Net cash used in investing activities totaled ¥21,849 million. This was mainly due to purchase of property, plant and equipment of¥15,913 million and purchase of shares of subsidiaries resulting in change in scope of consolidation of ¥5,174 million.
Net cash provided by financing activities totaled ¥8,259 million. This was mainly due to proceeds from long-term borrowings of ¥10,677
million and proceeds from issuance of bonds of ¥10,000 million, despite net decrease in short-term borrowings of ¥1,797 million,
repayments of long-term borrowings of ¥1,858 million, repayments of finance lease obligations of ¥2,473 million, purchase of treasury
shares of ¥3,630 million and dividends paid of ¥2,228 million.
(3) Forecast for the full-term of the fiscal year ending March 31, 2022
Considering the consolidated operating results for the six months ended September 30, 2021 and the current circumstances, we haverevised our full-year forecast of consolidated operating results for the fiscal year ending March 31, 2022 announced on May 14, 2021, as
follows.
For details, please refer to “Notice Regarding Revision to Full-Year Forecast of Consolidated Operating Results and Dividends of Surplus(Interim Dividend and Increased Dividend),” which was announced today.
Forecast of consolidated operating results for the fiscal year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Profit attributable
OperatingOperating profit
Ordinary profit
to owners ofProfit per sharerevenueparentMillion yen
Million yen
Million yen
Million yen
Yen
Previous forecast (A)625,000
24,60025,00014,50097.85
Revised forecast (B)625,000
25,20025,60014,800100.42
Amount of change (B - A)
–
600
600
300
Change (%)
–
2.4
2.4
2.1
Actual results for the
fiscal year ended March
572,405
21,52022,23014,24093.81
31, 2021

3

(Reference) Fundamental policy for distribution of earnings and dividends for the current fiscal year
While securing internal reserves necessary for future business development and management structure reinforcement, the basic policyof the Company is to return profits to shareholders by implementing stable dividends and dividends that are linked to business resultswith the aim of enhancing the return to its shareholders. In accordance with this policy, we have revised the interim dividend for the fiscal
year ending March 31, 2022, considering the steady progress in consolidated earnings during the six-month period ended September
30, 2021, to increase from the forecast of dividend most recently announced. Accordingly, the Company plans to pay an annual dividendof ¥32.00 per share by increasing ¥2.00 (interim dividend of ¥17.00, year-end dividend of ¥15.00).
Dividend per share
September 30
Previous forecast
Revised forecast
Current dividend per
share
Previous dividend per
share(fiscal year ended March
31, 2021)

March 31¥15.00Total¥15.00¥15.00¥30.00¥32.00¥15.00¥28.00¥17.00¥13.004

2.

Consolidated Financial Statements(1) Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2021

As of September 30, 2021

AssetsCurrent assets
Cash and deposits

52,53051,387

Trade notes and accounts receivable

82,689–Trade notes and accounts receivable, and contract
assets–

83,225

Electronically recorded monetary claims - operating

2,519

3,269

Merchandise and finished goods

12,99012,690Work in process

316

188

Raw materials and supplies

651

743

12,221

12,474(28)(34)

163,891

163,945

Buildings and structures, net

80,201

83,515

Land

81,62886,939Other, net

47,72353,526

Total property, plant and equipment

209,554

223,981Goodwill

9,979

11,663

Other

8,034

9,556

Total intangible assets

18,014

21,21917,39817,739Long-term loans receivable

507

495

Retirement benefit asset

5,471

5,793

Guarantee deposits

13,086

13,401

Deferred tax assets

4,902

4,498

Other

3,647

3,263

Allowance for doubtful accounts

(407)

(404)

Total investments and other assets

44,60644,787272,175

289,989

Business commencement expenses

00

Total deferred assets

00

436,066

453,934

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

Intangible assets

Investments and other assets
Investment securities

Total non-current assets
Deferred assets

Total assets

5

(Unit: Millions of Yen)
As of March 31, 2021

As of September 30, 2021

Liabilities
Current liabilities
Trade notes and accounts payable

44,38344,293

Electronically recorded obligations - operating

8,586

9,155

Current portion of bonds payable

7,118

7,118

Current portion of convertible-bond-type bonds withshare acquisition rights

10,00910,004

Short-term borrowings

22,036

21,513

Lease obligations

4,253

4,794

Income taxes payable

5,377

3,987

Provision for bonuses

6,247

6,790

Provision for bonuses for directors (and otherofficers)

420

208

Provision for loss on disaster

68

25

Other

25,211

20,415

Total current liabilities

133,715

128,306

Bonds payable

30,02440,000Convertible-bond-type bonds with share acquisitionrights22,10822,095Long-term borrowings

74,887

82,814

Lease obligations

14,881

16,582

Provision for retirement benefits for directors (andother officers)

260

266

Provision for special repairs

98

133

Provision for share awards

149

148

Retirement benefit liability

7,103

6,910

Asset retirement obligations

869

888

5,847

7,387

156,230

177,227

289,946

305,533

Share capital

26,56426,564

Capital surplus

29,806

29,584Retained earnings

81,211

85,955

Treasury shares(4,638)(8,136)

Total shareholders’ equity

132,944

133,967

1,759

1,897

32

(14)

Foreign currency translation adjustment

57

296

Remeasurements of defined benefit plans

(10)

56

1,839

2,237

Share acquisition rights

410

391

Non-controlling interests

10,926

11,805

Total net assets

146,120

148,400

436,066

453,934

Non-current liabilities

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

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

Total accumulated other comprehensive income

Total liabilities and net assets

6

(2) Consolidated statements of (comprehensive) income(Consolidated statements of income)(For the six months ended September 30, 2020 and 2021)(Unit: Millions of Yen)
Six months ended
September 30, 2020
(April 1, 2020–September 30, 2020)

Six months ended
September 30, 2021
(April 1, 2021–September 30, 2021)

Operating revenue

273,449

300,762

Operating costs

240,422

259,440

Operating gross profit

33,026

41,321

Selling, general and administrative expenses

23,38429,616

Operating profit

9,641

11,70527

61

Non-operating income
Interest income
Dividend income

94

99

Other

1,122

1,136

Total non-operating income

1,244

1,298

Non-operating expenses
Interest expenses

552

601

Other

565

437

1,118

1,039

9,767

11,964–248

Gain on sale of non-current assets

452

52

Gain on sale of investment securities

35–

Total extraordinary income

488

300

Loss on COVID-19 impact

337

243

Loss on tax purpose reduction entry of non-current
assets44

243

Loss on retirement of non-current assets

42

83

Loss on disaster–

8

Loss on valuation of investment securities

277–

Loss on office withdrawal

60–

Impairment losses

37–

Total extraordinary losses

798

579

Profit before income taxes

9,457

11,685

Income taxes - current

3,332

3,972

Income taxes - deferred

230

337

Total income taxes

3,562

4,310

Profit

5,894

7,374

167

419

5,726

6,955

Total non-operating expenses
Ordinary profit
Extraordinary income
Subsidy income

Extraordinary losses

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

7

(Consolidated statements of comprehensive income)(For the six months ended September 30, 2020 and 2021)(Unit: Millions of Yen)
Six months ended
September 30, 2020
(April 1, 2020–September 30, 2020)
ProfitSix months ended
September 30, 2021
(April 1, 2021–September 30, 2021)

5,894

7,374

Valuation difference on available-for-sale securities

631

119

Deferred gains or losses on hedges

(11)

(46)

Foreign currency translation adjustment

(547)

292

Remeasurements of defined benefit plans, net of tax

198

67

Total other comprehensive income

271

432

6,165

7,807

6,126

7,353

39

453

Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests8(3) Consolidated statements of cash flows(Unit: Millions of Yen)
Six months ended
September 30, 2020
(April 1, 2020–September 30, 2020)

Six months ended
September 30, 2021
(April 1, 2021–September 30, 2021)

Cash flows from operating activities
Profit before income taxes

9,457

11,685

Depreciation

8,337

9,337

Amortization of goodwill

339

493

Increase (decrease) in allowance for doubtful
accounts

(52)

(3)

Decrease (increase) in retirement benefit asset

(38)

(322)

Increase (decrease) in retirement benefit liability

(332)

(125)

Increase (decrease) in provision for share awards

(271)

(1)

Increase (decrease) in provision for bonuses

590

488

–

(46)

(122)

(161)

Foreign exchange losses (gains)

(1)

73

Interest expenses

552

601

Subsidy income

–

(248)

Loss on tax purpose reduction entry of non-current
assets44

243

Increase (decrease) in provision for loss on disaster
Interest and dividend income

Impairment losses

37–

Loss (gain) on sale of non-current assets

(434)

(35)

Loss on retirement of non-current assets

42

83

Loss (gain) on sale of investment securities

(35)

0

Decrease (increase) in trade receivables

3,860

–

–

(83)

Decrease (increase) in inventories(1,659)354

Increase (decrease) in accrued liabilities

Decrease (increase) in trade receivables andcontract assets(2,947)(2,583)

Increase (decrease) in accrued consumption taxes(985)(2,333)

Decrease (increase) in consumption taxes refund
receivable

(535)

1,389

Other

(275)

(1,094)

Subtotal

15,567

17,711

Interest and dividends received

347

200

Interest paid

(568)

(594)

Subsidies received–

248

Income taxes paid

(4,684)(5,394)

Net cash provided by (used in) operating activities

10,662

12,170

Payments into time deposits

(991)

(934)

Proceeds from withdrawal of time deposits

834

965

Purchase of property, plant and equipment(8,970)(15,913)

Proceeds from sale of property, plant and equipment

1,294

171

Purchase of investment securities

(292)

(83)

Proceeds from sale of investment securities

75

41

Purchase of shares of subsidiaries resulting inchange in scope of consolidation(776)(5,174)

Payments of guarantee deposits

(487)

(618)

Other

(839)

(302)

(10,153)(21,849)

Cash flows from investing activities

Net cash provided by (used in) investing activities

9Six months ended
September 30, 2020
(April 1, 2020–September 30, 2020)

Six months ended
September 30, 2021
(April 1, 2021–September 30, 2021)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings(4,110)(1,797)

Proceeds from long-term borrowings

13,161

10,677

Repayments of long-term borrowings(9,097)(1,858)

Repayments of finance lease obligations(2,098)(2,473)

Proceeds from issuance of bonds

20,00010,000Purchase of treasury shares(311)(3,630)

Proceeds from sale of treasury shares

106

6(1,983)(2,228)

(164)

(147)

–

(244)

169

(42)

15,671

8,259

(210)

174

Net increase (decrease) in cash and cash equivalents

15,969(1,245)

Cash and cash equivalents at beginning of period

27,14250,371

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

1,078

–

Cash and cash equivalents at end of period

44,19049,126

Dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents

10