This document is a translation of the Japanese financial statements and is not in conformity with accounting principles of the United States.

SENKO Co., Ltd.

Summary of Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2015
[Japan GAAP]
July 31, 2014
Name of Listed Company: SENKO Co., Ltd.
Stock Listed on: The First Section of the Tokyo Stock Exchange
Code Number:
9069
URL http://www.senko.co.jp/en/
Representative:
Title: President
Name: Yasuhisa Fukuda
Inquiries:
Title: Executive Officer, Public Relations
Name: Noburoh Sasaki
Tel. (06) 6440-5155
Scheduled Date of Issue of Financial Report:
August 13, 2014
Scheduled Date of Dividend Paid: —Supplemental Information Materials:
None
Scheduled Date of Quarterly Information Meeting:None
1. Consolidated Operating Results for the Three Months Ended June 30, 2014
(1) Consolidated Operating Results

Three months ended June 30, 2014
Three months ended June 30, 2013
(Note) Comprehensive income

Operating revenues
Million yen%
89,125
19.3
74,7104.1

Note: Amounts less than ¥1 million have been rounded down.
Operating income
Ordinary income
Net income
Million yen%
Million yen%
Million yen%
2,389(12.4)
2,320
(9.8)
1,408
(13.0)
2,727
23.1
2,571
12.5
1,619
25.9

Three months ended June 30, 2014: ¥1,564 million (-19.1%)
Three months ended June 30, 2013: ¥1,933 million (79.3%)
Net income
per share

Diluted net income
per share
Yen
9.36
11.70

Yen
11.20
Three months ended June 30, 2014
12.96
Three months ended June 30, 2013
(Note) The figures for consolidated operating results (cumulative) for the three months ended June 30, 2013 are after retrospective applicationof the changes to accounting principles following the revision of accounting standards.
(2) Consolidated Financial Position
Total assets
Million yen
241,490
243,570

As of June 30, 2014
As of March 31, 2014
(Reference) Shareholders’ equity:

Net assets
Million yen
73,64272,302Equity ratio
%
28.7
27.8

Net assets per shareYen
549.60539.52As of June 30, 2014 ¥69,202 million As of March 31, 2014 ¥67,819 million(Note) The figures for the consolidated financial position for the fiscal year ended March 31, 2014 are after retrospective application of thechanges to accounting principles following the revision of accounting standards.
2. Dividends
June 30

September 30
Yen
8.00

Yen
−
Fiscal year ended March 31, 2014−
Fiscal year ending March 31, 2015
Fiscal year ending March 31, 2015
8.00
(Forecast)(Note) Change in the estimation of dividend for the fiscal year in this period: None

Annual dividend
December 31
YenMarch 31

Total

−

Yen
8.00

Yen
16.00

−

8.00

16.00

3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2015 (From April 1, 2014 to March 31, 2015)
Operating revenues Operating income
First half ending September 30, 2014
Fiscal year ending March 31, 2015

Million yen
184,000
380,000

%
21.7
13.8

(Note) Change in the forecast made in this period: None

Million yen
6,000
14,000%9.8
15.5(Percentage figures represent year on year changes)
Net income
Ordinary income
Net income
per share
Million yen% Million yen
%
Yen
5,500
8.6
3,100 (8.1)
24.64
13,000 15.0
7,400 13.8
58.83

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 stocks)
As of June 30, 2014

129,014,856 shares

As of March 31, 2014

128,989,476 shares

3,098,949 shares

As of March 31, 2014

3,284,287 shares(b) Treasury stock
As of June 30, 2014(c) Average number of shares (quarterly consolidated cumulative period)
Three months ended June 30, 2014

125,789,447 shares

Three months ended June 30, 2013

124,963,376 shares(Note) Starting with the quarterly consolidated fiscal period under review, the number of shares of treasury stock at term-end includes
Senko shares owned by the employee stock ownership plan (ESOP) trust, following revisions to accounting principles due to theamendment of accounting standards. (As of June 30, 2014: 2,492,000 shares; as of March 31, 2014: 2,680,000 shares)

Information concerning quarterly review procedure
This quarterly financial report is not subject to the quarterly review procedure prescribed by the Financial Instruments and Exchange Law.
The review procedure prescribed by the Financial Instruments and Exchange Law for the quarterly consolidated financial statements had
not been completed when this quarterly financial report was released.
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 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, 2015” 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 six-month period and the full-term of the fiscal year ending March 31, 2015 ....................................................... 3
2．Other Information ...................................................................................................................................................................................... 4(1) Changes in significant subsidiaries..................................................................................................................................................... 4(2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements .............................. 4(3) Changes in accounting principles and estimates, and retrospective restatement ............................................................................ 4
3．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, 2013 and 2014 ..................................................................................................................... 7
Consolidated statements of comprehensive income
For the three months ended June 30, 2013 and 2014 ..................................................................................................................... 81

1.

Results of Operations and Financial Condition(1) Results of operations
In the three-month period of the fiscal year ending March 31, 2015 (April 1, 2014 to June 30, 2014), the Japanese economy saw adeterioration in business conditions due to the impact of the consumption tax hike across a wide range of industries including
non-manufacturing industries such as retail and wholesale as well as manufacturing industries such as automobile-related andhousing-related sectors. However, signs of recovery have appeared in consumer spending since around June.
In the logistics industry, a drop was seen in the cargo volumes of consumer spending-related goods, construction-related materials
and production-related goods due to the impact of the consumption tax hike. In addition, the industry environment remained severe,with fuel prices kept at a high level and an increase in outsourcing cost due to a shortage of trucks and drivers.
In this environment, the Senko Group established a new four-year medium-term business plan that began in the fiscal year ended
March 31, 2014 and is based on the slogan “Moving Global.” The plan has three goals: “go beyond logistics,” “make the world go
round,” and “revolutionize business.” The Group is working to achieve growth in the distribution business and commerce and tradebusiness as well as to foster an even greater degree of trust among its customers by building a structure for services with high quality
and outstanding performance in relation to cost.
In the first quarter, we added a new warehouse at the Tawaramoto Distribution Center (Shiki-gun, Nara Prefecture) in May to address
the expansion of distribution operations for home centers. We also started operation of the Moriyama PD Center No. 3 Warehouse(Moriyama City, Shiga Prefecture) in June to expand business in the Kyoto/Shiga area. Furthermore, we are constructing new
distribution centers in the Tohoku, Kanto and Chubu areas and have started construction of a distribution center that handles
import/export cargo at the Laem Chabang Port, Thailand in an effort to strengthen our distribution center business both in Japan andabroad.
In May, we obtained orders for distribution operations in the Kyushu area from a major beverage manufacturer. As companies
increasingly outsource their distribution, the Senko Group intends to further expand its distribution business by precisely targetingsuch moves.
In June, we acquired shares of Sankyo Butsuryu Niyaku Co., Ltd. and Sankyo Logistics Co., Ltd., which carry out sorting, packing,shipping and transport of agricultural products in Hokkaido, and added them to the Senko Group. We intend to integrate theirexpertise in handling agricultural products with our distribution network and provide new agricultural-related distribution services.
Furthermore, in order to strengthen the functions of the distribution centers with the aim of enhancing competitiveness, we have beenworking to establish a shipping network of small-lot cargo in the metropolitan areas of Kanto, Chubu, Kansai and Kyushu. In addition,
we have set up a human resource securement development project in April to enhance the production system and thereby strengthen
our workforce, develop personnel and improve the quality of distribution.

The three-month-period performance was as follows.
(Unit: Millions of Yen)
Three months ended
June 30, 2013
74,710Three months ended
June 30, 2014
89,125

Operating income
Ordinary income

2,727
2,571

Net income

1,619

Operating revenues

Change%14,414

19.3

2,389
2,320

(338)
(250)

(12.4)
(9.8)

1,408

(210)

(13.0)

Consolidated operating revenues for the three-month period ended June 30, 2014 increased 19.3% year on year to ¥89,125 million
due to aggressive expansion of sales and the consolidation of AST CORPORATION through M&A last October. Profits dropped due tocost increases such as surges in fuel prices and outsourcing costs, despite effects from a rise in revenues. Exchange rate fluctuationsin the commerce and trade business also affected earnings. As a result, consolidated operating income dropped 12.4% to ¥2,389
million, ordinary income decreased 9.8% to ¥2,320 million, and net income declined 13.0% to ¥1,408 million.

2

The three-month-period business segment performance was as follows.
Distribution
In retail product logistics, we received an order for distribution operations from a major beverages manufacturer. The volume of cargo
for apparel volume retailers also increased. In housing logistics business, the Senko Group conducted aggressive sales promotion
activities targeting mainly housing material manufacturers, although there were some decreases in cargo volume due to the impact of
the consumption tax hike. In the chemicals logistics business, there was a positive effect from large-scale capital expenditure, such as
the asphalt tanker that was built last year, as well as orders in new operations due to expanded sales. The result was operating
revenues of ¥60,769 million, a 5.0% year-on-year increase.
Commerce and trade
In the commerce and trade business, operating revenues increased 69.8% year on year to ¥27,373 million due to the merger effect of
AST CORPORATION and sales growth in the petroleum marketing business.
OthersIn this segment, operating revenues rose 39.0% year on year to ¥982 million, partly due to the launch of the solar electricity sales
business last September.
(2) Financial condition
1) Assets, liabilities and net assets
Total assets
Total assets as of June 30, 2014 were ¥241,490 million, a decline of ¥2,079 million from the end of the previous fiscal year. There
were increases of ¥983 million in property, plant and equipment, ¥623 million in intangible assets and ¥747 million in investments andother assets, while current assets decreased ¥4,434 million.
Liabilities
Liabilities dropped ¥3,419 million from the end of the previous fiscal year to ¥167,848 million, reflecting declines of ¥1,696 million incurrent liabilities and ¥1,723 million in noncurrent liabilities.
Net assets
Net assets rose ¥1,339 million from the end of the previous fiscal year to ¥73,642 million, reflecting increases of ¥984 million inretained earnings and ¥195 million in valuation differences on available-for-sale securities. The equity ratio increased by 0.9
percentage points to 28.7%.
(3) Forecast for the six-month period and the full-term of the fiscal year ending March 31, 2015
Although the Japanese economy is expected to stage a mild recovery reflecting the diminishing impact of the consumption tax hike,the severe environment is expected to continue in the logistics industry due to the issue of the personnel shortage and a range of cost
increases, including the surge in fuel prices.
In this environment, the Senko Group will continue to enhance its competitiveness, improve its profitability and upgrade its operating
system.
Operating results as of June 30, 2014 were generally as planned, and there is no revision to the forecast of operating results for thesix-month period and the full-term of the fiscal year ending March 31, 2015 announced on May 7, 2014.
As stated in “Notice of Capital and Business Alliance with Runtec Corporation and the Incorporation of Runtec as a Subsidiary,” which
was disclosed today, we are monitoring the impact of the consolidation of Runtec Corporation on our consolidated operating results
for the fiscal year ending March 2015.

3

2. Other Information(1) Changes in significant subsidiaries
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
Changes in accounting principles(Application of accounting standard, etc. for retirement benefits)
Starting with the three-month period of the fiscal year ending March 31, 2015, Senko has applied the Accounting Standard for
Retirement Benefits (ASBJ Statement No. 26, May 17, 2012; hereinafter referred to as the “Accounting Standard”) and the Guidanceon Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, May 17, 2012; hereinafter referred to as the “Guidance”)
with regard to the provisions prescribed in the main text of Section 35 of the Accounting Standard and Section 67 of the Guidance. As
a result, the calculation methods of retirement benefit obligations and service costs were reviewed, the period attribution method of the
expected amount of retirement benefits was changed from straight-line attribution to benefit calculation standard, and the decision
method of the discount rate were changed from a single discount rate to a single weighted average discount rate (equivalencesystem).
In accordance with the transitional handling prescribed in Section 37 of the Accounting Standard, for the application of the above
Accounting Standard and Guidance, the effect of the changes in the calculation methods of retirement benefit obligations and service
costs were adjusted in retained earnings at the beginning of the three-month period of the current fiscal year.
As a result, liabilities pertaining to retirement benefits at the beginning of the three-month period of the fiscal year under review
decreased by ¥823 million and retained earnings increased by ¥530 million. The application of the Accounting Standard andGuidance did not have a material effect on consolidated cumulative profits and losses for the three-month period of the current fiscal
year.
(Application of practical solution on transactions of delivering the Company’s own stock to employees, etc. through trusts)
Starting with the three-month period of the fiscal year ending March 31, 2015, Senko has applied the Practical Solution on
Transactions of Delivering the Company’s Own Stock to Employees, etc. through Trusts (ASBJ Practical Issues Task Force No. 30,
December 25, 2013; hereinafter referred to as the “Practical Solution”). The disposal difference was acknowledged at the time ofdisposal of our treasury stock to the trust, and the profit/loss on the sale of shares sold from the trust to the Senko Group Employee's
Stockholding, the dividend from Senko with respect to the shares owned by the trust, and the net amount of the costs related to thetrust have been recorded in liabilities. The said change in accounting principles has been applied retrospectively, with the quarterly
consolidated financial statements and consolidated financial statements for the three-month period of the previous fiscal year and theprevious consolidated fiscal year based on retrospective application.
As a result, advances paid and deposits as of the end of the previous consolidated fiscal year decreased by ¥23 million each, treasury
stock decreased by ¥440 million and capital surplus increased by ¥440 million compared to before the Practical Solution was
retrospectively applied.

43. Consolidated Financial Statements(1) Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2014

As of June 30, 2014

AssetsCurrent assets
Cash and deposits*17,767*17,421

Notes and accounts receivable

51,76447,420

Merchandise

6,076

6,296

3

3

Work in process

214

362

Supplies

209

185

Other

8,167

8,070

(50)

(41)

84,15379,719Buildings and structures (net)*60,139*60,836Land*56,092*56,196

Other (net)*12,225*12,408

Total property, plant and equipment

128,457

129,441

Real estate for sale

Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment

Intangible assets
Goodwill

3,178

3,640

Other

3,440

3,601

Total intangible assets

6,619

7,242

Investments and other assets
Guarantee deposits

9,559

9,464

Deferred tax assets

4,234

4,058

Other

11,104

12,115

Allowance for doubtful accounts

(557)

(551)

Total investments and other assets

24,33925,087

159,416

161,771

243,570

241,490

Total noncurrent assets
Total assets

5

(Unit: Millions of Yen)
As of March 31, 2014

As of June 30, 2014

Liabilities
Current liabilities
Notes and operating accounts payable−trade36,60335,570Current portion of bonds

7,040

7,040

Short-term loans payable*16,345*17,306

Income taxes payable

2,766

358

Provision for bonuses

3,342

1,886

163

50

Other

13,08015,432

Total current liabilities

79,34077,644

Bonds payable

5,020

5,020

Convertible bond-type bonds with subscription rights

12,031

12,019Long-term loans payable*57,598*57,318

187

191

Provision for directors’ bonuses

Noncurrent liabilities

Provision for directors’ retirement benefits
Net defined benefit liability

6,804

6,057

Provision for special repairs

42

45

Asset retirement obligations

440

442

Other

9,802

9,108

Total noncurrent assets

91,927

90,203

171,267

167,848

Capital stock

20,521

20,526

Capital surplus

19,337

19,342Retained earnings

31,06432,049Treasury stock(1,532)(1,441)

Total shareholders’ equity

69,39070,476

Valuation differences on available-for-sale securities

738

934

Deferred gains or losses on hedges

(9)

(40)

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

230

274

Remeasurements of defined benefit plans

Foreign currency translation adjustment(2,530)(2,440)Total accumulated other comprehensive income(1,570)(1,273)

Subscription rights to shares

235

235

Minority interests

4,247

4,204

Total net assets

72,30273,642

243,570

241,490

Liabilities and net assets

6

(2) Consolidated statements of (comprehensive) income(Consolidated statements of income)(For the three months ended June 30, 2013 and 2014)(Unit: Millions of Yen)
Three months ended
June 30, 2013

Three months ended
June 30, 2014

(April 1, 2013–June 30, 2013)(April 1, 2014–June 30, 2014)

Operating revenues

74,71089,125

Cost of sales

66,94080,057Gross profit

7,770

9,067

Selling, general and administrative expenses

5,042

6,678

Operating income

2,727

2,389

Interest income

36

46

Dividend income

53

83

Other

135

194

Total non-operating income

225

325

Interest expenses

312

292

Other

68

101

Total non-operating expenses

381

394

2,571

2,320

Gain on sales of investment securities

330−

Gain on revision of retirement benefit plan

239−

Insurance income

32−

Total extraordinary income

602

−

−

98

Loss on valuation of investments in capital of subsidiaries andaffiliates

104−

Loss on retirement of noncurrent assets

63−

Loss on cancellation of lease contracts

51−

Provision of allowance for doubtful accounts for subsidiaries andaffiliates

22−

Total extraordinary loss

243

98

Income before income taxes

2,931

2,222

Income taxes−current

376

171

Income taxes−deferred

906

657

Total income taxes

1,283

829

Income before minority interests

1,647

1,393

Minority interest in income (loss)

28

(14)

1,619

1,408

Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary loss
Litigation settlement

Net income7

(Consolidated statements of comprehensive income)(For the three months ended June 30, 2013 and 2014)(Unit: Millions of Yen)

Income before minority interests

Three months ended
June 30, 2013

Three months ended
June 30, 2014

(April 1, 2013–June 30, 2013)(April 1, 2014–June 30, 2014)

1,647

1,393

162

210

2

(33)

Foreign currency translation adjustment

119

(95)

Remeasurements of defined benefit plans

−

89

285

170

1,933

1,564

1,855

1,594

77

(29)

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

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests8