This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document
and the Japanese original, the original shall prevail.

SENKO Group Holdings Co., Ltd.

Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2023
[Japan GAAP]
Name of Listed Company:
Code Number:
Representative:
Inquiries:

February 10, 2023

SENKO Group Holdings Co., Ltd.
Stock Listed on: 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: February 14, 2023
Yes
Quarterly Supplemental Information Materials:
None
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, 2022
(1) Consolidated Operating Results (Cumulative)
Operating revenue
Nine months ended December 31, 2022
Nine months ended December 31, 2021

Million yen
515,298
465,449

%
10.7
9.6

(Percentage figures represent year-on-year changes)
Profit attributable toOperating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
21,786
7.1
22,362
6.4
14,94718.5
20,33416.9
21,01819.0
12,611
8.7(Note) Comprehensive income
Nine months ended December 31, 2022: ¥19,577 million (48.1%)

Nine months ended December 31, 2021: ¥13,220 million (9.0%)

Profitper share

Diluted profit
per shareYen
100.28
86.05

Yen
88.81
71.43

Nine months ended December 31, 2022
Nine months ended December 31, 2021
(Note) During the second quarter ended September 30, 2022, the Company finalized the provisional accounting treatment for businesscombinations. As a result, figures for the nine months ended December 31, 2021 reflect the finalization of the provisional accounting
treatment.
(2) Consolidated Financial Position
Total assets
Million yen
563,394
480,818

As of December 31, 2022
As of March 31, 2022
(Reference) Equity:
As of December 31, 2022: ¥160,031 million

Net assets
Million yen
178,353
160,854

Equity ratio

%
28.4
30.5

Net assets per shareYen
1,072.47
985.67

As of March 31, 2022: ¥146,817 million(Note) During the second quarter ended September 30, 2022, the Company finalized the provisional accounting treatment for businesscombinations. As a result, figures for the fiscal year ended March 31, 2022 reflect the finalization of the provisional accounting treatment.
2. Dividends
June 30

Yen––

September 30
Yen
17.00
17.00

Fiscal year ended March 31, 2022
Fiscal year ending March 31, 2023
Fiscal year ending March 31, 2023
(Forecast)(Note) Change in the estimation of dividend for the fiscal year in this period: None

Annual dividend
December 31
Yen––March 31

Yen
17.00
17.00

Total

Yen
34.00
34.00

3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2023 (From April 1, 2022 to March 31, 2023)

Fiscal year ending March 31, 2023

Operating revenue

Operating profit

Million yen
700,000

Million yen
26,700%12.3(Note) Change in the forecast made in this period: None%
7.8

(Percentage figures represent year-on-year changes)
Profit attributable toProfitOrdinary profit
owners of parent
per share
Million yen% Million yen%
Yen
27,0003.4
16,0005.0
107.34

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) CHUO KAGAKU 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: 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 December 31, 2022:

157,070,496 shares

As of March 31, 2022:

157,070,496 shares

7,852,978 shares

As of March 31, 2022:

8,117,957 shares(b) Treasury shares
As of December 31, 2022:(c) Average number of shares (Cumulative)
Nine months ended December 31, 2022: 149,049,945 shares

Nine months ended December 31, 2021:

146,554,033 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, 2022:
334,937 shares; as of March 31, 2022: 338,276 shares) and Performance-linked Stock Compensation Plan for Directors (as ofDecember 31, 2022: 317,960 shares; as of March 31, 2022: 338,607 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
and assumptions that management believes are reasonable. Actual results may differ significantly from these statements for a numberof reasons. 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, 2023” 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, 2023................................................................................................... 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, 2021 and 2022 ............................................................................................................ 6
Consolidated statements of comprehensive income
For the nine months ended December 31, 2021 and 2022 ............................................................................................................ 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, 2023 (April 1, 2022 to December 31, 2022), there were signs of economic
recovery following the relaxation of measures to stem the spread of COVID-19 and the progressive normalization of economic and social
activity. Nevertheless, with a resurgence in COVID-19 caused by the seventh and eighth waves of infection, the prolongation of the
Ukraine situation, and foreign exchange rate volatility against the backdrop of a global tightening of monetary policy, it remains difficult tobe optimistic about the business environment.
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, 2021
465,449

Nine months ended
December 31, 2022
515,298

20,33421,018
12,611

Change%49,84910.7

21,78622,362

1,451
1,343

7.1
6.4

14,947

2,336

18.5

Despite facing rising electricity tariffs, fuel prices, and purchase prices, along with dwindling demand for COVID-19 related products,
owing to group-wide efforts to expand sales and revise tariffs and prices, along with the effect of promoting M&A, the Group achieved
year-on-year increases in operating revenue, operating profit, ordinary profit and profit attributable to owners of parent.
The nine-month-period operating revenue by segment was as follows.
Note that effective from the first quarter ended June 30, 2022, a newly changed classification and aggregation method for reportablesegments has been applied, and the data used for comparison and analysis of the nine months ended December 31, 2022 is based on
the newly changed classification.
Logistics(Unit: Millions of Yen)

Operating revenue
Segment income

Nine months ended
December 31, 2021
329,722

Nine months ended
December 31, 2022
360,342

18,921

20,095

Change%30,619

9.3

1,173

6.2

Despite rising electricity tariffs and fuel prices, we strived to expand sales and revise pricing while reaping the contribution of revenue
from M&A. As a result, operating revenue increased ¥30,619 million year on year to ¥360,342 million, and segment income rose ¥1,173
million year on year to ¥20,095 million.
Trading & commerce(Unit: Millions of Yen)

Operating revenue
Segment income

Nine months ended
December 31, 2021
109,188

Nine months ended
December 31, 2022
119,326

1,933

1,892

Change%10,137

9.3

(41)

(2.1)

In addition to the contribution from revenue from household paper wholesale distributor Cartas Co., Ltd., which was made a consolidated
subsidiary in the previous fiscal year, we worked on revising prices and expanding sales, as well as improving cost efficiency among
other initiatives. However, as a result of decreased demand for packaging used for takeaways and deliveries, and rising purchase prices,among other factors, operating revenue increased by ¥10,137 million year on year to ¥119,326 million and segment income fell ¥41
million year on year to ¥1,892 million.
Life Support(Unit: Millions of Yen)

Operating revenue
Segment income (loss)

Nine months ended
December 31, 2021
21,086Nine months ended
December 31, 2022
27,746(340)

245

Change

%
6,660

31.6

586

–

As people’s everyday lives have been normalizing, we saw a recovery in the number of users and the number of customers visiting
stores, new stores were opened, and M&A we conducted in the previous fiscal year also contributed to revenue. As a result, operating
revenue increased ¥6,660 million year on year to ¥27,746 million, and segment income rose ¥586 million year on year to ¥245 million.

2

Business Support(Unit: Millions of Yen)

Operating revenue

Nine months ended
December 31, 2021
5,440

Nine months ended
December 31, 2022
7,879

674

839

Segment income

Change

%
2,438

44.8

165

24.5

We strived to expand sales and improve cost efficiency while reaping the contribution of revenue from M&A. As a result, operating
revenue increased ¥2,438 million year on year to ¥7,879 million, and segment income rose ¥165 million year on year to ¥839 million.
(2) Financial condition
Assets, liabilities and net assets
Total assets
Total assets as of December 31, 2022 were ¥563,394 million, ¥82,576 million higher than at the end of the previous fiscal year.
Current assets amounted to ¥211,316 million, up ¥40,282 million from the end of the previous fiscal year. This was mainly due toincreases of ¥11,685 million in cash and deposits, ¥16,136 million in trade notes and accounts receivable, and contract assets, ¥6,533
million in merchandise and finished goods, and ¥2,298 million in raw materials and supplies.
Non-current assets totaled ¥352,078 million, up ¥42,293 million from the end of the previous fiscal year. This was primarily due toincreases of ¥35,750 million in property, plant and equipment, ¥1,528 million in intangible assets, and ¥5,014 million in investments andother assets.
Liabilities
Liabilities as of December 31, 2022 increased ¥65,077 million from the end of the previous fiscal year to ¥385,041 million.
Current liabilities totaled ¥157,243 million, up ¥19,597 million from the end of the previous fiscal year. This was mainly due to increasesof ¥10,658 million in trade notes and accounts payable and ¥3,337 million in electronically recorded obligations - operating.
Non-current liabilities totaled ¥227,797 million, up ¥45,480 million from the end of the previous fiscal year. This was mainly due toincreases of ¥38,518 million in long-term borrowings, ¥3,140 million in lease obligations, ¥1,033 million in asset retirement obligations,and ¥1,878 million in deferred tax liabilities.
Net assets
Net assets as of December 31, 2022 rose ¥17,498 million from the end of the previous fiscal year to ¥178,353 million. This was primarily
due to increases of ¥9,854 million in retained earnings, ¥3,289 million in foreign currency translation adjustment, and ¥4,306 million in
non-controlling interests. The equity ratio as of December 31, 2022 decreased by 2.1 percentage points to 28.4% from the end of theprevious fiscal year.
(3) Forecast for the full-term of the fiscal year ending March 31, 2023
No revisions have been made to the forecast of consolidated operating results for the fiscal year ending March 31, 2023, announced in“Summary of Financial Statements for the Fiscal Year Ended March 31, 2022” on May 13, 2022.

3

2.

Consolidated Financial Statements(1) Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2022

As of December 31, 2022

AssetsCurrent assets
Cash and deposits

45,09356,778Trade notes and accounts receivable, and contract
assets

91,893108,030

Electronically recorded monetary claims - operating

3,543

4,825

Merchandise and finished goods

14,183

20,717Work in process

95

933

Raw materials and supplies

845

3,144

15,411

16,945(34)(59)

171,033

211,316

Buildings and structures, net

91,096

101,038

Land

90,313

106,152

Other, net

50,22960,197

Total property, plant and equipment

231,639

267,389

Goodwill

12,104

11,786

Other

11,94913,796

Total intangible assets

24,05425,583

17,957

18,602Long-term loans receivable

279

662

Retirement benefit asset

7,703

8,395

Guarantee deposits

14,38817,013

Deferred tax assets

5,115

4,464

Other

9,066

10,733

Allowance for doubtful accounts

(418)

(766)

Total investments and other assets

54,091

59,105309,784

352,078

Business commencement expenses

00

Total deferred assets

00480,818

563,394

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

4

(Unit: Millions of Yen)
As of March 31, 2022

As of December 31, 2022

Liabilities
Current liabilities
Trade notes and accounts payable

50,67561,333

Electronically recorded obligations - operating

9,076

12,41324–

Short-term borrowings

36,33532,644

Lease obligations

4,632

5,960

Income taxes payable

5,052

2,489

Provision for bonuses

6,585

4,253

427

318

Current portion of bonds payable

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

416

247

Other

24,42037,582

Total current liabilities

137,646

157,243

Bonds payable

40,00040,000Convertible-bond-type bonds with share acquisitionrights

22,08122,060Long-term borrowings

86,746125,264

Lease obligations

15,97019,110

Provision for retirement benefits for directors (andother officers)

573

600

Provision for special repairs

196

280

Non-current liabilities

Provision for share awards

336

325

Retirement benefit liability

7,050

7,413

Asset retirement obligations

950

1,983

Deferred tax liabilities

5,120

6,998

Other

3,291

3,758

182,317

227,797

319,963

385,041

Share capital

28,47928,479

Capital surplus

31,54531,547Retained earnings

91,737

101,591

Treasury shares(8,159)(7,966)

Total shareholders’ equity

143,602

153,651

1,472

1,643

Deferred gains or losses on hedges

70

(127)

Foreign currency translation adjustment

755

4,044

Remeasurements of defined benefit plans

916

820

3,215

6,380

Share acquisition rights

388

366

Non-controlling interests

13,648

17,954

Total net assets

160,854

178,353

480,818

563,394

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

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total accumulated other comprehensive income

Total liabilities and net assets5(2) Consolidated statements of (comprehensive) income(Consolidated statements of income)(For the nine months ended December 31, 2021 and 2022)(Unit: Millions of Yen)
Nine months ended
December 31, 2021
(April 1, 2021 – December 31, 2021)

Nine months ended
December 31, 2022
(April 1, 2022 – December 31, 2022)

Operating revenue

465,449515,298

Operating costs

398,717438,622

Operating gross profit

66,731

76,676

Selling, general and administrative expenses

46,39654,889Operating profit

20,334

21,786

Interest income

79

86

Dividend income

159

191

Foreign exchange gains

20

212

Other

1,876

1,973

Total non-operating income

2,136

2,463

Interest expenses

908

1,158

Other

543

729

1,452

1,888

21,01822,362Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on bargain purchase

–

1,651

Subsidy income

248

206

Gain on sale of non-current assets

82

143

Gain on sale of investment securities

–

40

330

2,042

243

206

–

136

Loss on retirement of non-current assets

124

106

Loss on COVID-19 impact

211

–

8

–

587

449

Profit before income taxes

20,761

23,955

Income taxes - current

5,890

6,296

Income taxes - deferred

1,547

1,832

Total income taxes

7,438

8,129

Profit13,323

15,825712

878

12,611

14,947

Total extraordinary income
Extraordinary losses
Loss on tax purpose reduction entry of non-current
assetsLoss on office withdrawal

Loss on disaster
Total extraordinary losses

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

6

(Consolidated statements of comprehensive income)(For the nine months ended December 31, 2021 and 2022)(Unit: Millions of Yen)
Nine months ended
December 31, 2021
(April 1, 2021 – December 31, 2021)
ProfitNine months ended
December 31, 2022
(April 1, 2022 – December 31, 2022)

13,323

15,825(195)

181

Deferred gains or losses on hedges

(4)

(221)

Foreign currency translation adjustment

(3)

2,900

Remeasurements of defined benefit plans, net of tax

101

(96)

–

987

(103)

3,751

13,22019,577

12,624

18,112595

1,464

Other comprehensive income
Valuation difference on available-for-sale securities

Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

7