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

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

August 11, 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: August 14, 2020
Yes
Quarterly Supplemental Information Materials:
Yes (for analysts)
Quarterly Information Meeting:

Scheduled Date of Dividend Paid: –(Amounts less than ¥1 million have been rounded down)
1. Consolidated Operating Results for the Three Months Ended June 30, 2020
(1) Consolidated Operating Results (Cumulative)
Operating revenue
Million yen
133,330
137,121Three months ended June 30, 2020Three months ended June 30, 2019

%
(2.8)
6.0

(Percentage figures represent year-on-year changes)
Profit attributable toOperating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
4,231(15.3)
4,197(15.8)
2,526(19.6)
4,995
6.3
4,985
2.7
3,142
7.6

(Note) Comprehensive income
Three months ended June 30, 2020: ¥2,267 million (–27.2%)
Profitper share

Three months ended June 30, 2019: ¥3,115 million (–2.0%)
Diluted profit
per share

Yen
16.62
20.69

Yen
15.42
19.19

Total assets
Million yen
360,881356,308

Net assets
Million yen
134,542
134,181Three months ended June 30, 2020Three months ended June 30, 2019(2) Consolidated Financial Position

As of June 30, 2020
As of March 31, 2020
(Reference) Equity:
As of June 30, 2020: ¥125,730 million

Equity ratio
%
34.8
35.1

Net assets per share
Yen
827.07823.61

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

2. Dividends
June 30

September 30
Yen
13.00

Yen
Fiscal year ended March 31, 2020–
Fiscal year ending March 31, 2021–
Fiscal year ending March 31, 2021
13.00
(Forecast)(Note) Change in the estimation of dividend for the fiscal year in this period: Yes

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
Million yen%
First half ending September 30, 2020
277,500 (1.6)
585,000
2.6
Fiscal year ending March 31, 2021
(Note) Change in the forecast made in this period: Yes

Operating profit
Million yen%
9,200 (11.1)
20,200 (2.2)(Percentage figures represent year-on-year changes)
Profit attributable toProfitOrdinary profit
owners of parent
per share
Million yen% Million yen%
Yen
9,000 (11.4)
5,500(14.5)
36.18
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 June 30, 2020:

152,861,921 shares

As of March 31, 2020:

152,861,921 shares

842,161 shares

As of March 31, 2020:

898,113 shares(b) Treasury shares
As of June 30, 2020:(c) Average number of shares (Cumulative)
Three months ended June 30, 2020:

152,013,893 shares

Three months ended June 30, 2019:

151,858,230 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 June 30, 2020: 348,880
shares; as of March 31, 2020: 348,880 shares) and Performance-linked Stock Compensation Plan for Directors (as of June 30,
2020: 352,988 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 six-month period and 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 six-month period and the full-term of the fiscal year ending March 31, 2021 ......................................................... 3
2. Consolidated Financial Statements ............................................................................................................................................................. 5(1) Consolidated balance sheets .............................................................................................................................................................. 5(2) Consolidated statements of (comprehensive) income ....................................................................................................................... 7
Consolidated statements of income
For the three months ended June 30, 2019 and 2020.................................................................................................................... 7
Consolidated statements of comprehensive income
For the three months ended June 30, 2019 and 2020.................................................................................................................... 81

1.

Results of Operations and Financial Condition(1) Results of operations
In the three-month period of the fiscal year ending March 31, 2021 (April 1, 2020 to June 30, 2020), the economic environment has beenhighly challenging in Japan and overseas due to impact of the spread of the novel coronavirus disease (COVID-19).
The three-month-period performance was as follows.
(Unit: Millions of Yen)

Operating revenue
Operating profit
Ordinary profit
Profit attributable to owners ofparentThree months ended
June 30, 2019
137,121Three months ended
June 30, 2020
133,330

4,995
4,985
3,142

Change%(3,790)

(2.8)

4,231
4,197

(763)
(787)

(15.3)(15.8)

2,526

(615)

(19.6)

Consolidated operating revenue for the three-month period ended June 30, 2020 of the current fiscal year decreased ¥3,790 million year
on year to ¥133,330 million, with the Logistics and Others businesses being significantly affected by COVID-19 pandemic. In terms of
profits, despite group-wide efforts to reduce expenses, improve cost efficiency and increase productivity, consolidated operating profit,
consolidated ordinary profit and profit attributable to owners of parent all decreased year on year due to the significant impact of thedecrease in operating revenue.
The three-month-period operating revenue by segment was as follows.
Logistics(Unit: Millions of Yen)

Operating revenue
Segment income

Three months ended
June 30, 2019
96,390Three months ended
June 30, 2020
91,593

4,290

3,751

Change%(4,797)

(5.0)

(539)

(12.6)

Although there was an increase in cargo volume for drugstores and other chain stores, the COVID-19 pandemic caused a significant
decrease in the volume for fashion-related industry and frozen and refrigerated cargo for school lunch and restaurant industry, and as aresult, operating revenue decreased ¥4,797 million year on year to ¥91,593 million. Despite efforts to reduce expenses, improve cost
efficiency and increase productivity, segment income decreased ¥539 million year on year to ¥3,751 million.
Trading & commerce(Unit: Millions of Yen)

Operating revenue
Segment income

Three months ended
June 30, 201936,662Three months ended
June 30, 2020
38,171

473

820

Change

%
1,508

4.1

346

73.3

Operating revenue increased ¥1,508 million year on year to ¥38,171 million and segment income increased ¥346 million year on year to¥820 million due to increased sales of household paper for large-scale mass-merchandiser groups and increased sales of daily
necessities associated with increased demand for home deliveries.
Others(Unit: Millions of Yen)

Operating revenue
Segment income (loss)

Three months ended
June 30, 2019
4,067

Three months ended
June 30, 2020
3,565

395

(242)

Change%(502)(12.3)(638)–

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 ¥502 million year on year to ¥3,565 million, while segment income fell ¥638
million year on year to record a segment loss of ¥242 million.

2(2) Financial condition
Assets, liabilities and net assets
Total assets
Total assets as of June 30, 2020 were ¥360,881 million, ¥4,572 million higher than at the end of the previous fiscal year.
Current assets amounted to ¥129,227 million, up ¥5,017 million from the end of the previous fiscal year. This was mainly due toincreases of ¥8,080 million in cash and deposits, ¥1,544 million in merchandise and finished goods and ¥2,709 million in other current
assets, despite a decrease of ¥6,948 million in trade notes and accounts receivable.
Non-current assets totaled ¥230,966 million, down ¥418 million from the end of the previous fiscal year. This was primarily due to adecrease of ¥6,771 million in total investments and other assets, despite an increase of ¥6,276 million in property, plant and equipment.
Liabilities
Liabilities as of June 30, 2020 increased ¥4,211 million from the end of the previous fiscal year to ¥226,339 million.
Current liabilities totaled ¥103,846 million, down ¥7,792 million from the end of the previous fiscal year. This was mainly due todecreases of ¥4,226 million in trade notes and accounts payable, ¥2,942 million in income taxes payable and ¥2,200 million in provision
for bonuses, despite an increase of ¥1,674 million in short-term borrowings.
Non-current liabilities totaled ¥122,492 million, up ¥12,003 million from the end of the previous fiscal year. This was mainly attributable toan increase of ¥12,152 million in long-term borrowings.
Net assets
Net assets as of June 30, 2020 rose ¥361 million from the end of the previous fiscal year to ¥134,542 million. This was primarily due toan increase of ¥595 million in retained earnings, despite a decrease of ¥192 million in non-controlling interests. The equity ratio as ofJune 30, 2020 decreased by 0.3 percentage points to 34.8% from the end of the previous fiscal year.
(3) Forecast for the six-month period and the full-term of the fiscal year ending March 31, 2021
Based on the information and estimations available at this time, the forecast of operating results for the fiscal year ending March 31,
2021, which was not yet determined in the “Summary of Financial Statements for the Fiscal Year Ended March 31, 2020 [Japan GAAP]”
released on May 13, 2020, is as follows.
For details, please refer to “Notice Regarding Forecast of Consolidated Operating Results and the Dividend Forecast,” which wasannounced today.
(a) Forecast of consolidated operating results for the six months ending September 30, 2020 (from April 1, 2020 to September 30, 2020)
ProfitOperatingOperating profit

Ordinary profit

Million yen–

Million yen–

Million yen–

Million yen
–

Yen
–

277,500

9,200

9,000

5,500

36.18

Amount of change (B - A)

–

–

–

–

Change (%)

–

–

–

–

282,070

10,343

10,155

6,431

revenue
Previous Forecast (A)(announced on May 13, 2020)
Revised Forecast (B)(Reference) Actual results for the six
months ended September 30, 2019attributable toProfit per shareowners of parent

42.34(b) Forecast of consolidated operating results for the fiscal year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
ProfitOperatingOperating profit

revenue
Previous Forecast (A)Ordinary profit

attributable toProfit per shareowners of parent

Million yen–

Million yen–

Million yen–

Million yen
–

Yen
–

585,000

20,20020,00011,40074.99

Amount of change (B - A)

–

–

–

–

Change (%)

–

–

–

–

570,030

20,656

20,74412,081(announced on May 13, 2020)
Revised Forecast (B)(Reference) Actual results for the
fiscal year ended March 31, 2020

79.51

(Reference) Fundamental policy for distribution of earnings and the dividend forecast of the fiscal year ending March 31, 2021
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.
Regarding the dividend forecast for the fiscal year ending March 31, 2021, which was not yet determined in the “Summary of Financial
Statements for the Fiscal Year Ended March 31, 2020 [Japan GAAP]” released on May 13, 2020, based on the forecast of operating
results announced today, the Company plans to pay an annual dividend of ¥26.00 per share (interim dividend of ¥13.00, year-end

3dividend of ¥13.00).
(Unit: Yen)
Annual dividend
September 30

March 31Previous Forecast

–

–

–

13.00

13.00

26.00

13.00

13.00

26.00

(announced on May 13, 2020)
Revised Forecast

Total(Reference) Actual results forthe fiscal year ended March 31,
2020

4

2.

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

As of June 30, 2020

AssetsCurrent assets
Cash and deposits

28,47936,559Trade notes and accounts receivable

74,361

67,413

Electronically recorded monetary claims - operating

2,651

1,992

Merchandise and finished goods

8,368

9,913

Work in process

679

1,081

Raw materials and supplies

567

462

9,125

11,834(21)(27)

124,210129,227

Buildings and structures, net

64,141

73,348

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

61,66962,882Other, net

45,16641,024

Total property, plant and equipment

170,978

177,255

Intangible assets
Goodwill

7,762

7,538

Other

5,391

5,692

Total intangible assets

13,154

13,231

Investments and other assets
Investment securities

17,662

15,548Long-term loans receivable

3,452

268

Retirement benefit asset

2,094

2,240

Guarantee deposits

14,556

14,755

Deferred tax assets

5,996

4,756

Other

4,269

3,239

Allowance for doubtful accounts

(779)

(327)

Total investments and other assets

47,251

40,480231,384

230,966

Business commencement expenses

713

687

Total deferred assets

713

687

356,308

360,881

Total non-current assets
Deferred assets

Total assets

5

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

As of June 30, 2020

Liabilities
Current liabilities
Trade notes and accounts payable

40,98536,758

Electronically recorded obligations - operating

6,559

6,858

48

48

Short-term borrowings

29,25230,926

Lease obligations

3,673

3,822

Income taxes payable

3,745

802

Provision for bonuses

5,433

3,233

401

102

Other

21,537

21,293

Total current liabilities

111,638

103,846

Bonds payable

17,072

17,048

Convertible bond-type bonds with share acquisitionrights10,01910,017Long-term borrowings

55,83967,991

Lease obligations

13,912

14,144

Provision for retirement benefits for directors (andother officers)

201

191

Provision for special repairs

90

88

Provision for share-based remuneration

271

271

Retirement benefit liability

7,060

6,942

Asset retirement obligations

1,145

1,190

Other

4,876

4,607

110,489

122,492

222,127

226,339

Share capital

26,52826,528

Capital surplus

29,77029,767Retained earnings

70,901

71,497

Treasury shares

(652)

(632)

126,548

127,161

Valuation difference on available-for-sale securities

779

1,111

Deferred gains or losses on hedges

14

11

Foreign currency translation adjustment

256

(213)

Remeasurements of defined benefit plans(2,439)(2,340)Total accumulated other comprehensive income(1,390)(1,431)

Share acquisition rights

432

414

Non-controlling interests

8,590

8,397

134,181

134,542356,308

360,881

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 assets

6

(2) Consolidated statements of (comprehensive) income(Consolidated statements of income)(For the three months ended June 30, 2019 and 2020)(Unit: Millions of Yen)
Three months ended
June 30, 2019

Three months ended
June 30, 2020

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

Operating revenue

137,121

133,330

Operating costs

121,108

117,673

Operating gross profit

16,012

15,657

Selling, general and administrative expenses

11,017

11,425

Operating profit

4,995

4,231

35

31

Non-operating income
Interest income
Dividend income

71

74

Other

437

430

Total non-operating income

544

535

Interest expenses

275

285

Other

279

284

Total non-operating expenses

554

569

4,985

4,197

–

422

Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on extinguishment of tie-in shares

51–

Insurance claim income

32–

Total extraordinary income

83

422

Loss on COVID-19 impact–

333

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

Litigation settlement

55–

Total extraordinary losses

55

378

5,014

4,242

Extraordinary losses

Profit before income taxes
Income taxes - current

705

530

Income taxes - deferred

1,024

1,127

Total income taxes

1,730

1,657

Profit

3,283

2,584

141

58

3,142

2,526

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

7

(Consolidated statements of comprehensive income)(For the three months ended June 30, 2019 and 2020)(Unit: Millions of Yen)
Three months ended
June 30, 2019

Three months ended
June 30, 2020

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

Profit

3,283

2,584

Valuation difference on available-for-sale securities

(340)

348

Deferred gains or losses on hedges

(38)

(4)

Foreign currency translation adjustment

166

(761)

Remeasurements of defined benefit plans, net of tax

44

99

(168)

(317)

3,115

2,267

2,931

2,547

184

(279)

Other comprehensive income

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests8