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 Fiscal Year ended March 31, 2010
April 27, 2010
Stock listed on: the First Section of the Tokyo Stock Exchange
and Osaka Securities Exchange
URL http://www.senko.co.jp
Representative:
Title: President
Name: Yasuhisa Fukuda
Inquiries:
Title: Executive Officer, Public Relations
Name: Noburoh Sasaki
Tel. (06) 6440-5155
Scheduled Date of Annual Shareholders Meeting:June 29, 2010
Scheduled Date of Dividend Paid: June 30, 2010
Scheduled Date of Issue of Financial Report:
June 29, 2010

Name of Listed Company:
Code Number:

SENKO Co., Ltd.
9069

1. Consolidated Operating Results for the Fiscal Year Ended March 2010 (From April 1, 2009 to March 31, 2010)(1) Consolidated Operating Results
Note: Amounts less than one million yen have been rounded down.
Operating Revenues
Operating income
Ordinary income
Net income
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal year ended March 31, 2010
227,692
7.1
6,150
10.5
6,232
12.6
2,946
3.4
Fiscal year ended March 31, 2009
212,659
4.1
5,563
(8.1)
5,533
(8.7)
2,848
(7.0)

Net income
per share
Yen
26.83
25.95

Fiscal year ended March 31, 2010
Fiscal year ended March 31, 2009
(Notes) Equity in earnings (losses) of affiliates
Fiscal year ended March 31, 2010

Yen
24.16
23.39

16 million yen

Ratio ofoperating income
to operating
revenues
%
%
3.9
2.7
3.7
2.6

Return on
shareholders’equityDiluted net income
per share

Ratio of ordinary
income to total
assets

%5.6
5.6

Fiscal year ended March 31, 2009(197) million yen(2) Consolidated Financial Position
Total assets
Million yen
168,131
154,212

Net assets
Million yen
55,12352,130Fiscal year ended March 31, 2010
Fiscal year ended March 31, 2009
(Note) Shareholders’ equity:
Fiscal year ended March 31, 2010 53,809 million yen

Equity ratio
%
32.0
33.5

Net assets per shareYen
489.99470.48

Fiscal year ended March 31, 2009 51,658million yen(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Million yen
6,120
5,692

Fiscal year ended March 31, 2010
Fiscal year ended March 31, 2009

Cash flows fromfinancing activities

Million yen(2,234)(7,134)

Million yen(1,164)842

Cash and cash
equivalents at fiscal
year-end
Million yen
14,504
11,748

2. Dividends
Dividends per share

Fiscal year ended March 31, 2009
Fiscal year ended March 31, 2010
Fiscal year ending March 31, 2011
(Forecast)Interim
Yen
4.00
4.00

Year-end
Yen
4.00
4.00

Annual
Yen
8.00
8.00

4.00

4.00

8.00

Total dividends paid

Payout ratio(Annual)Million yen
877
878(Consolidated)

Dividend on equity
ratio(Consolidated)
%

%

30.8
29.8

1.7
1.7

28.3

3. Forecast of Consolidated Operating Results for the Year Ending March 2011 (From April 1, 2010 to March 31, 2011)
Operating revenues

First half ending September 2010
Fiscal year ending March 2011

Million yen%

117,000
240,000

8.3
5.4

Operating income
Million
yen
2,850
6,500

1

%
3.1
5.7

Ordinary income
Million
yen
2,800
6,500

Net income%

Million yen

3.8
4.3

1,300
3,100

Net income per
share
%
Yen
1.0
5.2

11.84
28.23

4. Others(1) Changes in significant subsidiaries during the fiscal year (Changes in specified subsidiaries associated with change in scope of
consolidation): None
(2) Changes in accounting principles, accounting procedures and presentation methods related to preparation of consolidated financial
statements (Changes to be stated in the section “Changes in significant matters providing the basis for preparing consolidated financial
statements”)
a. Changes involving amendments and revisions to accounting standards: Yes
b. Changes other than those included in the above a.: None
(3) Shares outstanding (Common shares)
a. Shares outstanding at fiscal year end (including treasury stocks)
Fiscal year ended March 31, 2010

111,989,476 sharesFiscal year ended March 31, 2009

111,989,476 sharesb. Treasury stocks at fiscal year end
Fiscal year ended March 31, 2010

2,172,362 sharesFiscal year ended March 31, 2009

2,182,995 shares[Reference] Overview of Non-Consolidated Operating Results
1. Non-Consolidated Operating Results for the Fiscal Year Ended March 2010 (From April 1, 2009 to March 31, 2010)(1) Non-Consolidated Operating Results
Operating Revenues
Operating income
Ordinary income
Million yen%
Million yen%
Million yen%
Fiscal year ended March 31, 2010
169,880 (3.1)
5,113
14.9
5,136
5.7
Fiscal year ended March 31, 2009
175,336 (0.2)
4,450(15.1)
4,860(11.7)Net income
Million yen
%
2,450
(6.1)
2,610
(5.3)

Net income
per share
Fiscal year ended March 31, 2010
Fiscal year ended March 31, 2009

Diluted net income
per share
Yen
Yen
22.32
20.09
23.79
21.44

(2) Non-Consolidated Financial Position
Total assets
Million yen
Fiscal year ended March 31, 2010
149,455
Fiscal year ended March 31, 2009
140,664(Note) Shareholders’ equity:
Fiscal year ended March 31, 2010 51,521 million yen

Net assets
Million yen
51,601
49,973Equity ratio
34.5
35.5

Shareholders’ equity per
share
%
Yen
469.16454.56

Fiscal year ended March 31, 2009 49,913million yen(Caution concerning forward-looking statements about the future performance)
The information stated above is based on various assumptions. This summary does not constitute an assurance or guarantee that thecompany will achieve its numerical targets or necessarily implement the strategies outlined. See details on page 4 “Outlook for fiscal year
ending March 2011”.

2

1.

Results of Operations(1) Analysis of the results
1)

Fiscal year performance
In the fiscal year that ended on March 31, 2010, the downturn in the Japanese economy slowed due to the benefits of economic
stimulus measures by countries worldwide. However, the outlook is unclear as unemployment remains high and consumer spending
remains lackluster.
In the logistics industry as well, the operating environment is still challenging. Although there is a recovery in the volume of cargo,
mainly for exports, the volume of cargo shipments within Japan continues to decline.
The past fiscal year was the final year of the Senko Group’s three-year medium-term business plan that has the goal of making
Senko a “logistics and information company.” Group companies focused on expanding operations centered on logistics for major
high-volume retailers as well as other operators of stores by supplying logistics supply chain management. As part of these activities,
Senko opened the Funabashi Fashion Logistics Center in Chiba prefecture in June 2009 and the Kita Kanto Logistics Center in Ota
in Gunma prefecture in August 2009. In addition, Senko continued to use mergers and acquisitions to enter new business fields. In
July 2009, household products wholesaler Marufuji Co., Ltd. joined the Senko Group. Two more companies joined the group in
October 2009: Esaka Logistics Service Co., Ltd. and Hanshin Transport Co., Ltd., which provide logistics services to department
stores.
Consolidated operating revenues increased 7.1% to ¥227,692 million as the contribution of newly acquired companies offset theeffect of a decline in the volume of cargo at established operations. Earnings were higher mainly because of measures to reduce andreexamine costs. Operating income increased 10.5% to ¥6,150 million, ordinary income increased 12.6% to ¥6,232 million and net
income increased 3.4% to ¥2,946 million.
Results by business segment were as follows.
Transport
Operating revenues increased 5.3% from one year earlier to ¥130,554 million. There were declines in cargo volume in the housing
and petrochemicals and products categories in the fiscal year’s first half because of the recession that began in 2008. But the
downturn in cargo volume stopped in the second half and revenues benefited from growth in department store logistics due to newly
acquired companies.
Integrated Retail Logistics
Operating revenues increased 9.9% to ¥73,192 million. One reason was the contribution to revenues of two newly completed large
distribution facilities: the Funabashi Fashion Logistics Center and the Kita Kanto Logistics Center. The addition of Tokyo Nohin DaikoCo., Ltd. and Inui Transport Co., Ltd. to the Senko Group also contributed to the growth in revenues in this segment.
OthersOperating revenues increased 8.5% to ¥23,945 million as the contribution to merchandise sales business revenues from the newly
acquired Marufuji Co., Ltd. offset the negative impact of a decline in unit selling prices in the petroleum products sales business.

3

2)

Outlook for fiscal year ending March 2011
The steep downturn in the economy that began in 2008 has ended as the volume of exports continues to increase. But only a slow
recovery in Japan’s domestic demand is expected.
Although the Japanese economy is recovering, even more competition is foreseen in the logistics industry. The Senko Group isdetermined to work even harder at meeting the expectations of customers. To accomplish this, group companies will supply
proposals for the comprehensive outsourcing of logistics operations by assembling logistics systems with even better quality andefficiency.
The Senko Group has started a new three-year medium-term business plan with the theme of “Moving Global.” The objective is totarget new markets by providing services with outstanding quality and low costs in relation to benefits in order to meet customers’
needs in Japan and overseas. Corporate social responsibility (CSR) is another priority. We will take steps to enhance the motivation,
skills and well-being of group employees. Our CSR commitment also includes compliance with laws and regulations, environmental
protection, and safety in the workplace.
By taking these actions, we forecast consolidated operating revenues of ¥240 billion, operating income of ¥6.5 billion, ordinary
income of ¥6.5 billion and net income of ¥3.1 billion.

(2) Analysis of Financial Condition
1)

Assets, liabilities and net assets
Total assets
Total assets were ¥168,131 million at the end of the fiscal year, ¥13,918 million higher than one year earlier. Current assets increased¥10,028 million and investments and other assets increased ¥2,050 million.
Liabilities
Liabilities increased ¥10,925 million to ¥113,008 million mainly because of increases of ¥4,352 million in short-term loans payableand ¥5,199 million in notes and operating accounts payable- trade.
Net assets
Net assets increased ¥2,992 million to ¥55,123 million. Retained earnings increased ¥2,084 million and minority interests increased¥822 million. The equity ratio decreased 1.5 percentage point to 32.0%.

2)Cash flows
There was a net increase of ¥2,756 million in cash and cash equivalents to ¥14,504 million.
Net cash provided by operating activities was ¥6,120 million. Major sources of cash were income before income taxes of ¥5,421
million, depreciation and amortization of ¥4,968 million and a ¥2,035 million increase in notes and accounts payable- trade. Major
uses of cash were interest expenses paid of ¥1,150 million, a ¥2,827 million increase in notes and accounts receivable- trade andincome tax paid of ¥1,996 million.
Net cash used in investing activities was ¥2,234 million. The primary use of cash was payments for purchase of property, plant andequipment of ¥2,455 million.
Net cash used in financing activities was ¥1,164 million. There were payments of ¥1,684 million for the repayment of short-term loans
payable, ¥1,527 million for the repayment of long-term loans payable, ¥1,064 million for the repayment of finance lease obligations,and ¥878 million for dividends. Proceeds from long-term loans payable totaled ¥4,400 million.

4

3)

Performance indicators associated with cash flows
Years ended March 31

2007

2008

2009

2010

Equity ratio (%)

35.3

34.6

33.5

32.0

Market capitalization equity ratio (%)

32.6

29.3

22.1

22.4

Interest-bearing debt to cash flow ratio (multiple)

7.6

7.9

9.9

9.6

Interest coverage ratio

9.5

8.1

6.1

5.3

Notes:
Equity ratio: Shareholders’ equity/Total assets
Market capitalization equity ratio: Market capitalization/Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt/Operating cash flows
Interest coverage ratio: Operating cash flows/Interest expenses*All figures are based on the consolidated financial statements.
*Market capitalization is calculated by multiplying the fiscal year-end stock price and the number of shares issued at the end of the
fiscal year (after deducting treasury stock).
*Operating cash flows are the figure shown in the consolidated statement of cash flows. Interest-bearing debt is the sum of all
liabilities on the consolidated balance sheet on which interest is paid. Interest expenses are the figure shown in the consolidated
statement of cash flows.
(3) Fundamental policy for distribution of earnings and dividend for previous and next fiscal year
The fundamental policy for earnings distributions is to pay a stable dividend as well as a dividend that reflects earnings in order toreturn more earnings to shareholders. These distributions also take into consideration the need to retain earnings in order to fundfuture business operations and create a stronger base of operations.
Based on results of operations in the past fiscal year and other factors, Senko plans to pay a year-end dividend of ¥4 per share. With
the interim dividend of ¥4, this will result in a dividend of ¥8 per share applicable to the fiscal year that ended in March 2010. Senko
plans to pay a dividend of ¥8 per share for the fiscal year ending in March 2011 as well.
(4) Business risk
No discussion of business and other risks is presented here because there have been no significant changes involving these risks
since the most recent Securities Report (dated June 26, 2009), which includes a section about business and other risks.

5

2.

Corporate GroupThe Senko Group includes Senko, 55 subsidiaries and three affiliated companies. Group companies conduct a full line of logistics
operations extending from the development of strategic logistics systems that meet customers’ increasingly diverse and exacting needs tothe operation of these systems. There are three business segments: Transport, which includes the transport of cargo by truck, rail cargotransport, marine cargo transport and other activities; Integrated Retail Logistics, which includes warehouse operations, packaging,transfers and other services for raw materials and products at customers’ business sites, the operation of distribution centers, and otheractivities; and Others, which includes sales of petroleum products, sales of data processing equipment, outsourced data processing
services, motor vehicle maintenance and other activities. A diagram showing these business operations is presented below.

Customers↑
Transport↑
Subsidiaries
Senko Moving Plaza Co., Ltd.
Senko A Line Amano Co., Ltd.
Tokyo Nohin Daiko Co., Ltd.
Inui Transport Co., Ltd.
Sapporo Senko Transport Co., Ltd.
Tohoku Senko Transport Co., Ltd.
Kanto Senko Transport Co., Ltd.
Saitama Senko Transport Co., Ltd.
Chiba Senko Transport Co., Ltd.
Senko Fashion Logistics Co., Ltd.

SENKO CO., LTD
Integrated Retail Logistics↑
Subsidiaries
Senko Moving Plaza Co., Ltd.
Senko A Line Amano Co., Ltd.
Tokyo Nohin Daiko Co., Ltd.
Inui Transport Co., Ltd.
Sapporo Senko Transport Co., Ltd.
Hokkaido Senko Logi Service Co., Ltd
Tohoku Senko Transport Co., Ltd.
Tohoku Senko Logi Service Co., Ltd.
Kanto Senko Transport Co., Ltd.
Saitama Senko Transport Co., Ltd.

Kashiwa Senko Transport Co., Ltd.

Chiba Senko Transport Co., Ltd.

Kanagawa Senko Transport Co., Ltd.
Hokuriku Senko Transport Co., Ltd.
Fuji Senko Transport Co., Ltd.
Tokai Senko Transport Co., Ltd.
Toyohashi Senko Transport Co., Ltd.
Mie Senko Logistics Co., Ltd.
Shiga Senko Transport Co., Ltd.
Osaka Senko Transport Co., Ltd.
Hanshin Senko Transport Co., Ltd.
Esaka Unyu Co., Ltd.
Hanshin Unso Co., Ltd
Okayama Senko Transport Co., Ltd.
Sankyo Freight Co., Ltd.
Sanyo Senko Transport Co., Ltd.
Chushikoku Logistics Co., Ltd.
Fukuoka Senko Transport Co., Ltd.
Minami Kyushu Senko Co., Ltd.
Miyazaki Senko Transport Co., Ltd.
Senko Medical Logistics Co., Ltd.
Shanghai Senko International Transport
Ltd.
Senko International Logistics (HongKong) Ltd.
Senko International Logistics Pre.
Ltd.
Senko Logistics Australia Pty Ltd.
Affiliated Companies
Hosojimako Nieki Shinko Co., Ltd.
DFTZ Best International Trade

Senko Fashion Logistics Co., Ltd.
Kashiwa Senko Transport Co., Ltd.
Kanagawa Senko Transport Co., Ltd.
Hokuriku Senko Transport Co., Ltd.
Fuji Senko Transport Co., Ltd.
Daito Senko Apollo Co., Ltd.
Tokai Senko Transport Co., Ltd.
Toyohashi Senko Transport Co., Ltd.
Mie Senko Logistics Co., Ltd.
Shiga Senko Transport Co., Ltd.
Osaka Senko Transport Co., Ltd.
Hanshin Senko Transport Co., Ltd.
Esaka Unyu Co., Ltd.
Hanshin Unso Co., Ltd
Okayama Senko Transport Co., Ltd.
Sankyo Freight Co., Ltd.
Sanyo Senko Transport Co., Ltd.
Chushikoku Logistics Co., Ltd.
Fukuoka Senko Transport Co., Ltd.

Others↑
Subsidiaries
Senko Trading Co., Ltd.
Senko Insurance Services Co., Ltd.
Senko Information System Co., Ltd.
Logi Solution Co., Ltd.
Kanto Senko Transport Co., Ltd.
Saitama Senko Transport Co., Ltd.
Chiba Senko Transport Co., Ltd.
Fuji Senko Transport Co., Ltd.
Shiga Senko Transport Co., Ltd.
Osaka Senko Transport Co., Ltd.
Shikoku Reefer Transport andWarehousing Co., Ltd.
Miyazaki Senko Transport Co., Ltd.
Senko Foods Co., Ltd.
Crefeel Koto Co., Ltd.
S-TAFF Co., Ltd.
Senko Business Support Co., Ltd.
Logi Factoring Co., Ltd.
Marufuji Co., Ltd.
Senko Logistics (U.S.A.) Inc.

Minami Kyushu Senko Co., Ltd.
Miyazaki Senko Transport Co., Ltd.
Miyazaki Senko Apollo Co., Ltd.
Senko (U.S.A.) Inc.
Dalian Senko Logistics Co., Ltd.
Senko Distribution (Shanghai) Ltd.
Guangzhou Senko Logistics Co., Ltd.
Senko International Logistics (HongKong) Ltd
Senko (Thailand) Co., Ltd
Senko International Logistics Pre.
Ltd.
Senko Logistics Australia Pty Ltd.
Affiliated Companies
Moriyama Houso Co., Ltd.
DFTZ Best International Trade

6

Black: Consolidated subsidiaries
Red: Non-consolidated subsidiaries andaffiliates
Italic: Affiliates accounted for by equity
method3.

Management Policies(1) Fundamental management policy
The Senko Group is dedicated to becoming a company that earn the trust of shareholders, customers, employees and society andprovide benefits to these stakeholders by using highly advanced logistics and information technologies to create and provide servicesof the highest quality.
To accomplish this goal, group companies seek to maximize corporate value by supplying customers with high-quality, low-costvalue-added logistics services. From the standpoint of coexisting with society, the Senko Group also places priority on safety andenvironmental protection along with helping maintain social order. The aim is to create an energetic organization that is dedicated to
growth and trust and able to fulfill its obligations as a leading member of the logistics industry.
(2) Targeted performance indicators
The new three-year medium-term business plan, which began in the fiscal year ending in March 2011, includes the following goals.
Operating revenues: ¥300 billion

Operating income: ¥9 billion

Operating margin: 3%

Debt/equity ratio: Under one(3) Medium and long-term strategies
The following is a summary of the three-year medium-term business plan that covers the three-year period ending with the fiscal yearthat ends in March 2013.
Summary of the Senko Group Medium-term Business Plan (April 2010 to March 2013)

Corporate slogan: “Moving Global”
1. The Senko Group’s medium-term vision
The Senko Group aims to become a logistics and information organization that provides high-quality services with low costs inrelation to benefits on a global scale. This goal includes measures to coexist with society and increase the commitment ofgroup employees to achieve growth.
2. The Senko Group’s medium-term objectives(1) Create new markets by meeting the needs of customers in Japan and other countries.
(2) Improve efficiency across the entire Senko Group in order to supply high-quality services with low costs in relation tobenefits.
(3) Upgrade CSR activities by placing priority on three themes: compliance, environmental protection and safety.
(4) Continue establishing systems and the workplace environment needed to increase enhance the motivation, skills andwell-being of group employees.
(5) Implement financial policies that place emphasis on maintaining financial soundness.
3. Plan(billion yen)
Fiscal year ended March 2010

Plan for Fiscal year ending March 2011

Operating revenues

227.69300.0

Operating income

6.15

9.0

Ordinary income

6.23

8.5

Net income

2.95

4.3

7

4. Consolidated financial statements(1) Consolidated balance sheets(Unit: ¥ million)
March 31, 2009

March 31, 2010

AssetsCurrent assets
Cash and deposits

11,94814,504

Notes and accounts receivable

24,79230,364Merchandise

212

1,237

Real estate for sale23

24

Supplies

87

112

Work in process

194

202

Deferred tax assets

1,556

1,933

Other

2,618

3,110

(17)

(44)

41,41651,445

Buildings and structures (net)37,166

36,669Machinery, equipment and vehicles (net)

5,931

5,492

973

852

Land

34,27335,401

Lease assets (net)

2,981

3,334

128

484

81,454

82,235

2,558

3,616

Investment securities

2,392

2,776

Lon-term loans receivable

3,119

2,961

Guarantee deposits

8,601

8,728

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

Tools, furniture and fixtures (net)

Construction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets

Deferred tax assets

4,910

5,007

Other

9,985

11,609Allowance for doubtful accounts

(227)

(251)

Total investments and other assets

28,78230,832

112,795

116,685

154,212168,131

Total noncurrent assets
Total assets

8

(Unit: ¥ million)
March 31, 2009

March 31, 2010

Liabilities
Current liabilities
Notes and operating accounts payable- trade17,27422,473

Short-term loans payable

10,96815,320Current portion of bonds

7,000

-

Lease obligations

787

1,086

Income taxes payable

920

1,845

Provision for bonuses

2,723

3,384

50

84

Other

6,753

7,164

Total current liabilities

46,47751,359-7,000

Convertible bond-type bonds with subscription rights

4,900

4,900

Long-term loans payable

33,41931,396

Lease obligations

3,159

3,969

Provision for retirement benefits

9,491

9,907

Provision for directors’ retirement benefits

40

53

Provision for special repairs

26

25

Other

4,568

4,397

Total noncurrent assets

55,604

61,648102,082

113,008

Capital stock

18,345

18,345

Capital surplus

16,607

16,607Retained earnings

17,52019,604

(778)

(772)

51,69553,785

(26)

49

-

(22)

Foreign currency translation adjustment

(10)

(3)

Total valuation and translation adjustments

(36)

23

Subscription rights to shares

60

80

Minority interests

411

1,233

Total net assets

52,13055,123

154,212168,131

Provision for directors’ bonuses

Noncurrent liabilities
Bonds payable

Total liabilities
Net assets
Shareholders’ equity

Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Valuation differences on available-for-sale securities
Deferred gains or losses on hedges

Liabilities and net assets

9(2) Consolidated statements of income(Unit: ¥ million)
Year ended March 31, 2009

Year ended March 31, 2010

Operating revenues

212,659

227,692

Cost of sales

196,141

208,310Gross profit

16,517

19,381

Selling, general and administrative expenses

10,954

13,230Operating income

5,563

6,150

Interest income

119

213

Dividends income

787

883

Insurance income

255

231

Other

441

583

1,603

1,911

Interest expenses

932

1,163

Insurance expenses

281

267

Other

419

398

1,634

1,829

5,533

6,232

Gain on sales of noncurrent assets

50

39

Compensation income

175-

Total extraordinary income

225

39

224

331

-

180

208

110

Settlement package-

62

Special retirement expenses

-

47

47

43

Loss on sales of noncurrent assets-

42

Loss on valuation of noncurrent assets-

32

Loss on valuation of golf club membership

41-

Total extraordinary loss

522

850

Income before income taxes

5,236

5,421

Income taxes- current

1,928

2,800

Income taxes- deferred

460

(187)

2,388

2,613

0

(138)

2,848

2,946

Non-operating income

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary loss
Loss on retirement of noncurrent assets
Loss on prior periods adjustment
Loss on cancellation of lease contracts

Loss on valuation of investment securities

Total income taxes
Minority interest in income or loss
Net income10(3) Consolidated statements of changes in net assets(Unit: ¥ million)
Year ended March 31, 2009

Year ended March 31, 2010

Shareholders’ equity
Capital stock
Balance at previous fiscal year end

18,295

18,345Issuance of new shares

50-

Total changes of items during the period

50-

18,345

18,345

16,553

16,607Issuance of new shares

50-

Disposal of treasury stock

3(0)

Total changes of items during the period

53

(0)

16,607

16,607

15,554

17,520

Dividends from surplus

(877)

(878)

Net income

2,848

2,946

(4)

16

1,966

2,084

17,52019,604

(717)

(778)

Purchases of treasury stock

(74)

(4)

Disposal of treasury stock

15

10

(1)

-

(61)

5

(778)

(772)

49,686

51,695100-

Changes of items during the period

Balance at fiscal year end
Capital surplus
Balance at previous fiscal year end
Changes of items during the period

Balance at fiscal year end
Retained earnings
Balance at previous fiscal year end
Changes of items during the period

Changes in scope of consolidation
Total changes of items during the period
Balance at fiscal year end
Treasury stock
Balance at previous fiscal year end
Changes of items during the period

Changes in equity in affiliates accounted for byequity method-treasury stock
Total changes of items during the period
Balance at fiscal year end
Total shareholders’ equity
Balance at previous fiscal year end
Changes of items during the period
Issuance of new shares
Dividends from surplus

(877)

(878)

Net income

2,848

2,946

Purchases of treasury stock

(74)

(4)

Disposal of treasury stock

19

10

Changes in scope of consolidation

(4)

16

(1)

-

2,008

2,090

51,69553,785

Changes in equity in affiliates accounted for byequity method-treasury stock
Total changes of items during the period
Balance at fiscal year end

11Year ended March 31, 2009

Year ended March 31, 2010

Valuation and translation adjustments
Valuation differences on available-for-securities
Balance at previous fiscal year end

97

(26)

Net changes of items other than shareholders’ equity

(124)

75

Total changes of items during the period

(124)

75

(26)

49

-

-

Net changes of items other than shareholders’ equity

-

(22)

Total changes of items during the period

-

(22)

-

(22)

32

(10)

Net changes of items other than shareholders’ equity

(42)

7

Total changes of items during the period

(42)

7

(10)

(3)

129

(36)

Net changes of items other than shareholders’ equity

(166)

60

Total changes of items during the period

(166)

60

(36)

23

26

60

Net changes of items other than shareholders’ equity

34

20

Total changes of items during the period

34

20

60

80

2

411

Net changes of items other than shareholders’ equity

408

822

Total changes of items during the period

408

822

411

1,233

49,84552,130Changes of items during the period

Balance at fiscal year end
Deferred gains or losses on hedges
Balance at previous fiscal year end
Changes of items during the period

Balance at fiscal year end
Foreign currency translation adjustment
Balance at previous fiscal year end
Changes of items during the period

Balance at fiscal year end
Total Valuation and translation adjustments
Balance at previous fiscal year end
Changes of items during the period

Balance at fiscal year end
Subscription rights to shares
Balance at previous fiscal year end
Changes of items during the period

Balance at fiscal year end
Minority interests
Balance at previous fiscal year end
Changes of items during the period

Balance at fiscal year end
Total net assets
Balance at previous fiscal year end
Changes of items during the period
Issuance of new shares

100-

Dividends from surplus

(877)

(878)

Net income

2,848

2,946

Purchases of treasury stock

(74)

(4)

Disposal of treasury stock

19

10

Changes in scope of consolidation

(4)

16

(1)

-

276

902

2,284

2,992

52,13055,123

Changes in equity in affiliates accounted for byequity method-treasury stock
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at fiscal year end

12

(4) Consolidated statements of cash flows(Unit: ¥ million)
Year ended March 31, 2009

Year ended March 31, 2010

Cash flows from operating activities
Income before income taxes

5,236

5,421

Depreciation and amortization

4,031

4,968

Loss on retirement of noncurrent assets

224

331

Increase (decrease) in provision for retirement benefits

(426)

(94)

Increase (decrease) in provision for bonuses

(54)

513

Interest and dividends income(907)(1,096)

Interest expenses

932

1,163

3,559

(2,827)

713

(682)

(4,418)

2,035

276

(743)

9,168

8,989

Interest and dividends income received

183

278

Interest expenses paid

(933)

(1,150)

Income taxes paid

(2,725)(1,996)

Net cash provided by (used in) operating activities

5,692

6,120

(6,852)(2,455)

Increase (decrease) in notes and accounts receivable- trade
Increase (decrease) in inventories
Increase (decrease) in notes and accounts payable- trade
Other
Sub-total

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

351

324

Purchase of investment securities

(690)

(20)

59

72

-

(502)

(134)

-

3

134

Purchase of investments in subsidiaries resulting in change in scopeof consolidation

(17)

-

Payments for investments in capital of subsidiaries and affiliates

(60)

(215)

Other

207

427

(7,134)(2,234)

Net increase (decrease) in short-term loans payable

1,750(1,684)

Proceeds from long-term loans payable

9,472

4,400

Repayment of long-term loans payable(8,135)(1,527)-7,000

Redemption of bonds(810)(7,000)

Repayments of finance lease obligations(329)(1,064)Purchase of treasury stock

(74)

(4)

Proceeds from sales of treasury stock

18

2

Cash dividends paid

(878)

(878)

Other

(170)

(407)

Net cash provided by (used in) financing activities

842(1,164)

Effect of exchange rate change on cash and cash equivalents

(29)

0

Net increase (decrease) in cash and cash equivalents

(629)

2,721

12,317

11,74859

35

11,74814,504

Proceeds from sales of investment securities
Purchase of investments in securities
Purchase of stocks of subsidiaries and affiliates
Proceeds from sales of stocks of subsidiaries and affiliates

Net cash provided by (used in) investing activities
Cash flows from financing activities

Proceeds from issuance of bonds

Cash and cash equivalents at beginning of year
Increase (decrease) in cash and cash equivalents resulting from changeof scope of consolidation
Cash and cash equivalents at end of year13(5) Notes to ongoing concern assumptions
None(6) Basis of presenting the consolidated financial statements
FY2009(For the year ended March 31, 2009)
1. Scope of consolidation(1) Number of consolidated subsidiaries: 36
Senko Trading Co., Ltd., Senko Information System Co., Ltd.,
Senko Insurance Services Co., Ltd., Saitama Senko Transport
Co., Ltd., Sapporo Senko Transport Co., Ltd. and 25
transportation- related subsidiaries, Daito Senko Apollo Co., Ltd.,
Miyazaki Senko Apollo Co., Ltd., Senko Foods Co., Ltd., S-TAFF
Co., Ltd., Guangzhou Senko Logistics Co., Ltd. and other 1
overseas subsidiary are included in the scope of consolidation.
S-TAFF Co., Ltd. is included in the scope of consolidation fromthe fiscal year under review due to their increase in materiality.
Mie Senko Logistics Co. and Chushikoku Logistics Co., Ltd.
(Head Office: Takamatsu-Shi, Kagawa) are newly established andrecognized as consolidated subsidiaries from the fiscal year underreview. Tokyo Nohin Daiko Co., Ltd. is transformed fromequity-method affiliate to consolidated subsidiary and included in
the scope of consolidation from the end of the fiscal year underreview due to the purchase of additional shares by the Company.
Chushikoku Logistics Co., Ltd. (Head Office: Kurashiki-Shi,
Okayama) changed its corporate name to Okayama Senko
Transport Co., Ltd. on April 1, 2009. Hokkaido Senko Logistics
Service Co., Ltd. and other 13 subsidiaries are not included in thescope of consolidation due to their immateriality. Total assets,
operating revenues, net income and the retained earnings ofthese companies are immaterial and, even taken together as agroup, they do not exert a significant influence on the consolidated
financial statements.

FY 2010(For the year ended March 31, 2010)
1. Scope of consolidation(1) Number of consolidated subsidiaries: 41
Senko Trading Co., Ltd., Senko Information System Co., Ltd.,
Senko Insurance Services Co., Ltd., Saitama Senko Transport Co.,
Ltd., Sapporo Senko Transport Co., Ltd. and 28 transportationrelated subsidiaries, Daito Senko Apollo Co., Ltd., Miyazaki Senko
Apollo Co., Ltd., Senko Foods Co., Ltd., S-TAFF Co., Ltd., Logi
Solution Co., Ltd., Marufuji Co., Ltd., Guangzhou Senko Logistics
Co., Ltd. and other 1 overseas subsidiary are included in the scopeof consolidation.
Logi Solution Co., Ltd. is included in the scope of consolidationfrom the fiscal year under review due to their increase inmateriality. Inui Transport Co., Ltd., Marufuji Co., Ltd., Esaka
Logistics Co., Ltd and Hanshin Transport Co., Ltd are included in
the scope of consolidation from the fiscal year under review due to
M&A. Hokkaido Senko Logistics Service Co., Ltd. and other 13
subsidiaries are not included in the scope of consolidation due totheir immateriality. Total assets, operating revenues, net income
and the retained earnings of these companies are immaterial and,even taken together as a group, they do not exert a significant
influence on the consolidated financial statements.

(Change in accounting policy)
The Company adopted ‘the Implementation Guidance on
determining a subsidiary and an affiliate (Guidance No.22) on May
13, 2008.’ from the fiscal year under review. The adoption of
accounting change does not exert a significant influence on the
consolidated statements of income
2. Application of equity method
The equity method is applied to Asics Physical Distribution
Corporation, Tokyo Nohin Daiko Co., Ltd. and DFTZ BestInternational Trade. Note that Tokyo Nohin Daiko Co., Ltd. istransformed from equity-method affiliate into consolidated
subsidiary from the end of the fiscal year under review due to thepurchase of additional shares by the Company.
Non-consolidated subsidiaries not applied to equity method(Hokkaido Senko Logistics Service Co., Ltd. and other 13
subsidiaries) and affiliated companies (Moriyama Hoso Co., Ltd.
and other 1 company) are excluded from the scope of applicationof equity method due to their immateriality.
Of the companies applied to equity method that have different
closing date from the Company, their financial statements as of
their closing date were used in the preparation of the consolidated
financial statements.

2. Application of equity method
The equity method is applied to Asics Physical Distribution
Corporation and DFTZ Best International Trade. The equity method
is not applied to Asics Physical Distribution Corporation from thethird quarter of the fiscal year under review, due to sales of its
shares.
Non-consolidated subsidiaries not applied to equity method(Hokkaido Senko Logistics Service Co., Ltd. and other 13
subsidiaries) and affiliated companies (Moriyama Hoso Co., Ltd.
and other 1 company) are excluded from the scope of applicationof equity method due to their immateriality.
Of the companies applied to equity method that have different
closing date from the Company, their financial statements as of
their closing date were used in the preparation of the consolidated
financial statements.

3. Closing date of consolidated subsidiaries
Of the consolidated subsidiaries, Guangzhou Senko Logistics Co.,
Ltd. and other 1 overseas subsidiary have a December 31 closing
date and Nohin Daiko Co., Ltd. has a January 31 closing date.
Financial statements as of these closing dates were used in the
preparation of the consolidated financial statements. However, theconsolidated figures have been adjusted as required to reflectsignificant transactions occurring between these closing date andMarch 31, 2010 that is the consolidated closing date.

3. Closing date of consolidated subsidiaries
Of the consolidated subsidiaries, Guangzhou Senko Logistics Co.,
Ltd. and other 1 overseas subsidiary have a December 31 closing
date. Financial statements as of this closing date were used in the
preparation of the consolidated financial statements. However, theconsolidated figures have been adjusted as required to reflectsignificant transactions occurring between December 31, 2009 andMarch 31, 2010 that is the consolidated closing date. Tokyo Nohin
Daiko Co., Ltd. has changed its closing date. Therefore, its fiscal
year is 14 months from February 1, 2009 to March 31, 2010.

14

FY2009(For the year ended March 31, 2009)
4. Accounting policies(1) Valuation basis and methods for principle assets
a. Securities
Available-for-sale securities
Securities with fair market value: Stated at the fair market value
based on the quoted market price as of the fiscal year-end(valuation differences are recognized in net assets; the cost of
securities sold is the moving-average method)
Securities without fair market value:
Stated at the cost by moving-average method

FY 2010(For the year ended March 31, 2010)
4. Accounting policies(1) Valuation basis and methods for principle assets
a. Securities
Available-for-sale securities
Securities with fair market value:Mentioned left

Securities without fair market value:Mentioned left

b. Derivatives
Fair market valueb. Derivatives

c. Inventories
MerchandiseStated at the cost by first-in first-out method (for the value statedin the balance sheet, book value is written down based on thedecreased profitability)c. Inventories
Merchandise

Real estate for saleStated at the cost by specific identification method (for the value
stated in the balance sheet, book value is written down based on
the decreased profitability)

Real estate for sale

Supplies
Stated at the cost by moving-average method

Supplies

Work in process
Stated at the cost by specific identification method (for the value
stated in the balance sheet, book value is written down based on
the decreased profitability)

Work in process

Mentioned left

Mentioned left

Mentioned left

Mentioned left

Mentioned left

(Changes in accounting procedures)
Effective from the consolidated fiscal year under review, thecompany has adopted the "Accounting Standard for Measurement
for Inventories" (ASBJ Statement No.9, July 5, 2006). Suchchange has no effect on profit or loss.
(2) Depreciation and amortization method for principal assets
a. Property, plant and equipment (excluding lease assets):
Computed using the straight-line method. Meanwhile, thedeclining-balance method is adopted for machinery andequipment, a part of vessels and tools, furniture and fixtures. The
principal estimated useful lives are as follows:
Buildings and structures: 3-60 years
Machinery, equipment and vehicles: 3-17 years(2) Depreciation and amortization method for principal assets
a. Property, plant and equipment (excluding lease assets):
Mentioned left

(Additional information)
The company has changed the useful life of machinery andequipment along with change in the statutory useful life ofmachinery and equipment due to a revision to the Corporate Tax
Law in fiscal 2008. The change does not exert a significant
influence on the consolidated operating income, ordinary income
and income before income taxes.
b. Intangible assets (excluding lease assets):
Computed using the straight-line method.

b. Intangible assets (excluding lease assets):
Mentioned leftc. Lease assets:
Lease assets are depreciated down to a residual value of zero,using the straight-line method over their lease service lives.
The accounting standard for ordinary rental transactions is used
for finance leases that do not transfer ownership of the leased
assets and where the leasing period began on or before March
31, 2008.

C. Lease assets:(3) Accounting standards for provisiona. Allowance for doubtful accounts
To prepare against expected losses from bad debts, estimatedamounts to be uncollectible are accrued for general claims,
computing on historical bad-debt ratios, and for specific claims
including doubtful accounts, considering their own recoverability.

(3) Accounting standards for provisiona. Allowance for doubtful accounts
Mentioned left

Mentioned left

15

FY2009(For the year ended March 31, 2009)b. Provision for bonuses
The provision for bonuses is provided for payment of bonuses to
employees based on an amount expected to be paid.

FY 2010(For the year ended March 31, 2010)b. Provision for bonuses
Mentioned left

c. Provision for directors’ bonuses
The provision for bonuses is provided for payment of bonuses todirectors based on an amount expected to be paid.

c. Provision for directors’ bonuses
Mentioned left

d. Provision for retirement benefits
To prepare for retirement benefit payment to employees, befit
obligations and plan assets are estimated and accrued as of theyear endd. Provision for retirement benefits
Mentioned left

Actuarial differences are to be charged to expenses from thefollowing fiscal year using a straight line method based ondetermined years (13 years) within average remaining service
years of the employees when occurred.
(Change in accounting policy)
Effective from the consolidated fiscal year under review, theCompany has adopted the “Partial Amendment to the AccountingStandard for Retirement Benefits (Part 3)” (ASBJ Statement No.19,
July 31, 2008).
Such change has no effect on profit or loss.
e. Provision for directors’ and auditors’ retirement benefits
At some consolidated subsidiaries, provision for directors’ andauditors’ retirement benefits (including executive officers) isrecorded in the amount to be paid at the end of fiscal year basedon an internal rule.

e. Provision for directors’ and auditors’ retirement benefits
Mentioned left

To prepare for retirement benefit payment to directors at someconsolidated subsidiaries, the amount to be paid at the year end
according to internal rules are accrued.
(4) Basis of revenue recognition(4) Basis of revenue recognition
Software development sales:
The prorated amounts for the development are recognized at fiscal
year end.
Percentage of completion method (estimated percentage ofcompletion adopts cost-to-cost method)
Others:Completed contract method(5) Method of significant hedge accounting
a. Hedge accounting method
Deferred hedge method is used. Interest rate swaps areaccounted for using the exceptional treatment as they satisfy theapplicable conditions.

(5) Method of significant hedge accounting
a. Hedge accounting method
Mentioned left

b. Hedging instruments and hedge targets
Hedging instrument: Derivatives (Interest rate swap transaction)
Hedged targets: Interest on floating loansb. Hedging instruments and hedge targets
Mentioned left

c. Hedging policy
Derivative transactions are used to avoid interest rate fluctuation
risk.

c. Hedging policyd. Assessment of hedge effectivenessHedging effectiveness in derivative transactions is the degree towhich changes in fair value or cash flows of the hedged item thatare attributable to a hedged risk are offset by changes in the fairvalue or cash flows of the hedging instrument.

d. Assessment of hedge effectivenessMentioned left

(6) Other significant accounting policies
Consumption taxes:
Financial statements are prepared exclusive of consumption tax.

(6) Other significant accounting policies
Consumption taxes:
Mentioned left

Mentioned left

5. Valuation of assets and liabilities of consolidated subsidiaries
Assets and liabilities of consolidated subsidiaries are valued using
the all-fair-value method.

5. Valuation of assets and liabilities of consolidated subsidiaries
Mentioned left

16

FY2009(For the year ended March 31, 2009)
6. Amortization of goodwill and negative goodwill
If the economic useful life of goodwill and negative goodwill canbe estimated, the useful life is used as the amortization period.
Other goodwill and negative goodwill amortized over a period of 5
years by the straight-line method.

FY 2010(For the year ended March 31, 2010)
6. Amortization of goodwill and negative goodwill
Mentioned left

7. Cash and cash equivalents in the consolidated statements ofcash flows
Cash and cash equivalents in the consolidated statements of cash
flows include cash on hand, demand deposits and short-term
investments due within three months from the date of acquisition,
which are easily convertible into cash with little or no risk fromfluctuation in value.

7. Cash and cash equivalents in the consolidated statements ofcash flows
Mentioned left17

(7) Changes in Significant Matters Forming the Basis of Preparing the Consolidated Financial Statements
FY2009FY 2010(For the year ended March 31, 2009)(For the year ended March 31, 2010)
Accounting Standard for Lease Transactions
Regarding the accounting treatment for finance leases for which
ownership is not transferred to the lessee, Shiroki previously applied
methods applicable to ordinary rental transactions. However, theCompany has applied the following new accounting standards:"Accounting Standards for Lease Transactions" (ASBJ Statement
No. 13, originally issued on June 17, 1993 (by the First
Subcommittee of the Business Accounting Council), and final
revision issued on March 30, 2007) and "Implementation Guidanceon Accounting Standards for Lease Transactions" (ASBJ GuidanceNo. 16, originally issued by the Accounting System Committee of
the Japan Association of Certified Public Accountants on January
18, 1994 and revised on March 30, 2007). As a result of theapplication of these standards, such finance leases are now
accounted for by methods applicable to ordinary buying and sellingtransactions.
Please note that for finance lease transactions for which ownershipis not transferred to the lessee, and for which the lease periodbegan before the first year these new accounting standards became
applicable, the previous accounting standards apply and theaccounting treatment follows the method applicable to ordinary
rental transactions.
The adoptions of accounting change do not exert a significant
influence on the consolidated operating income, ordinary income
and income before income taxes.
Operating income and expenses recognition on softwaredevelopment
Completed contract method was used. Effective from theconsolidated fiscal year under review, the Company has adopted
the ‘the Accounting Standard for Construction Contracts’ (ASBJ
Statement No.15, December 27, 2007) and ‘the Guidance on
Accounting Standard for Construction Contracts’ (ASBJ Guidance
No.18, December 27, 2007). Contracts of software developmentthat the prorated amounts for the development are recognized at
fiscal year end adopt the percentage of completion method. Othercases, the Company adopts the completed contact method. The
adoptions of accounting change do not exert a significant influenceon the consolidated operating revenues, operating income,ordinary income and income before income taxes.

18Notes to consolidated financial statements
Consolidated balance sheets
FY2009(For the year ended March 31, 2009)*1. Pledged assets:
The following assets were pledged as collateral as at March 31,
2009:(1) Business Foundation
Collateral Asset
Corresponding Liabilities
Item¥ million Contents¥ million
Buildings
951 Long-term Debt
100
Vehicles
1
Land
2,393
Total
3,346
Total
100
(2) Others
According to “Building Lots and Buildings Transaction Business Act”,
the Company pledged ¥ 9 millions of investment securities as
collateral.

FY 2010(For the year ended March 31, 2010)*1. Pledged assets:
The following assets were pledged as collateral as at March 31,
2010:(1) Business Foundation
Collateral Asset
Corresponding Liabilities
Item¥ million
Contents ¥ million
Buildings
843 Long-term Debt
100
Vehicles
0
Land
2,392
Total
3,236
Total
100
(2) Others
According to “Building Lots and Buildings Transaction Business Act”,
the Company pledged ¥ 9 millions of investment securities as
collateral.

2. Contingent liabilities:(1) Guarantees of lease obligation for Senko Distribution (Shanghai)Ltd.
¥ 14 million(2) Buyback obligations associated with securitization of notes¥ 588 million(3) Recourse obligation associated with securitization of guarantee
deposits ¥ 150 million

2. Contingent liabilities:(1) Guarantees of lease obligation for Senko Distribution (Shanghai)Ltd.
¥ 8 million(2) Buyback obligations associated with securitization of receivables
and notes¥ 1,388 million(3) Recourse obligation associated with securitization of guarantee
deposits¥ 150 millionc. The Company contracts overdrafts and credit commitments with
12 banks in order to efficient financing for business activities. Details
are as follows:¥ million
Total amounts of overdrafts and credit commitments
22,550Used amount
8,100
Difference
14,450c. The Company contracts overdrafts and credit commitments with
12 banks in order to efficient financing for business activities. Details
are as follows:¥ million
Total amounts of overdrafts and credit commitments
26,150Used amount
7,600
Difference
18,55019

(Consolidated statements of changes in net assets)
Fiscal year ended March 31, 2009
1. Class and total number of issued shares and treasury stock

Issued shares
Common stock (note1)
Total
Treasury shares
Common stock (notes 2,3)
Total

(shares)Number of shares as ofend of fiscal year underreview

Number of shares as ofend of previous fiscal
year

Number of increased
shares in fiscal year
under review

Number of decreased
shares in fiscal year
under review

111,746,167
111,746,167

243,309
243,309-111,989,476
111,989,476

2,024,789
2,024,789

207,798
207,798

43,00243,0022,189,585
2,189,585(Notes)1.

The increase of treasury stock of common stock resulted from the conversion of convertible bonds.

2.

The increase of 207,798 shares of treasury stock resulted from purchase of fractional shares of 201,208 and 6,590 shares which
owned a consolidated subsidiary that belong to the Company.

3.

The decrease of 43,002 shares of treasury stock of common stock resulted from 2,000 shares of the exercise of stock options andthe sales of fractional shares of 41,002 thousand.

2. Warrants and treasury warrants
Breakdown of
warrants

The Company

Warrants as
stock options

Total

Class ofsharesEnd of previous
fiscal year

Number of warrants
Number of
Number ofincreased shares decreased sharesin fiscal year
in fiscal year
under review
under review

End of fiscal
year underreview

End of fiscal
year underreview(¥ million)

-

-

-

-

-

60

-

-

-

-

-

60

3. Dividends(1) Payment of dividends
Type of shares

Total amount ofdividends(¥ million)

Dividends per
share (¥)

Record date

Effective date andafter

Common stock

438

4.00

March 31, 2008

June 30, 2008

Common stock

438

4.00

Sept. 30, 2008

Dec.9, 2008

Resolution
The general meeting ofshareholders on June 27, 2008
The Board of Directors Meetingon Oct. 28, 2008

(2) Dividends with a record date that falls within the fiscal year under review but an effective date starting in the upcoming fiscal year
Type of shares Total amount of
Source ofDividends per
Record date
Effective date
Resolution
dividends
dividends
share (¥)
and after(¥ million)
March 31,
Retained
The general meeting ofJune 29, 2009
4.00
Common stock439
2009
earnings
shareholders on June 26, 200920

Fiscal year ended March 31, 2010
1. Class and total number of issued shares and treasury stock
Number of shares as ofend of previous fiscal
year
Issued shares
Common stock (note1)
Total
Treasury shares
Common stock (notes
2,3)
Total

Number of increased
shares in fiscal year
under review(shares)Number of shares as ofend of fiscal year underreview

Number of decreased
shares in fiscal year
under review

111,989,476
111,989,476--

111,989,476
111,989,476

2,189,585

13,66730,8902,172,362

2,189,585

13,67630,8902,172,362(Notes)1. The increase of treasury stock of common stock resulted from the purchase of fractional shares.
2. The decrease of 30,890 shares of treasury stock of common stock resulted from 23,000 shares of the exercise of stock options andthe sales of fractional shares of 1,300, and sales of treasury shares of 6,590 thousand which owned a consolidated subsidiary thatbelong to the Company.
2. Warrants and treasury warrants
Breakdown of Class of shares
warrants

The Company

Warrants as
stock options

Total

End ofprevious
fiscal year

Number of warrants
Number of
Number ofincreased shares decreased shares inin fiscal year
fiscal year under
under review
review

End of fiscal
year underreview

End of fiscal
year underreview(¥ million)

-

-

-

-

-

80

-

-

-

-

-

80

3. Dividends(1) Payment of dividends
Type of shares

Total amount ofdividends(¥ million)

Dividends per
share (¥)

Record date

Effective date andafter

Common stock

439

4.00

March 31, 2009

June 29, 2009

Common stock

439

4.00

Sept. 30, 2009

Dec.8, 2009

Resolution
The general meeting ofshareholders on June 26, 2009
The Board of Directors Meetingon Oct. 28, 2009

(2) Dividends with a record date that falls within the fiscal year under review but an effective date starting in the upcoming fiscal year
Type of
Total amount of
Source ofDividends per
Record date
Effective date
Resolution
sharesdividends
dividends
share (¥)
and after(¥ million)
The general meeting ofCommonRetained439
4.00
March 31, 2010
June 30, 2010
shareholders on June 29, 2010stock
earnings

21

(Consolidated statements of cash flows)
FY2009(For the year ended March 31, 2009)
Relationship between the balance of cash and cash equivalents at theend of the period and the amounts recorded in the items shown on
the consolidated balance sheets:

Cash and deposits
Term deposits with original maturities ofthree months or longer.
Total(¥ million)
11,948FY 2010(For the year ended March 31, 2010)
Relationship between the balance of cash and cash equivalents at theend of the period and the amounts recorded in the items shown on
the consolidated balance sheets:
The balance of cash and cash equivalents at the end of the period
and the amounts recorded in the items shown on the consolidatedbalance sheets have been matched.

(200)
11,748(Segment information)a. Segment information
For the year ended March31, 2009

I. Operating revenues and operating income (loss)
Operating revenues(1) Operating revenues from customers(2) Inter-segment operating revenues or transfers
Total
Operating expenses
Operating income
II. Assets, depreciation and amortization, andcapital expenditures
AssetsDepreciation and amortization
Capital expenditures

OthersTotal

Eliminationor corporate(¥ million)
Consolidated

Transport

Integrated
RetailLogistics

123,963
3,190
127,154
124,329
2,825

66,6183,990
70,60968,5002,108

22,076
16,10038,17637,427
749

212,659
23,281
235,940
230,257
5,683(23,281)(23,281)(23,161)(119)

212,659
212,659
207,059
5,563

49,49789,3458,168

147,0117,201

154,212

1,431
3,009

2,317
7,058

144
397

3,893
10,465

137
1,303

4,031
11,768Notes:
1. Business segments above are based on the grouping used internally.
2. Each segment includes the following products:(1) Transport

Truck cargo transport, special cargo transport, cargo transport using trucks, cargotransport using railways, international and domestic marine cargo transport, harbortransport services, international cargo transport services, others.

(2) Integrated Retail Logistics

Warehouse operations, packaging, movement and other tasks for raw materials andfinished products at customers’ business sites, operation of distribution centers, others.

(3) Others

Sales of petroleum products, sales of information processing equipment, outsourced
information processing services, motor vehicle maintenance and repairs, others.

3. Corporate assets totaling ¥9,473 million are included in eliminations and corporate. These assets consist primarily of excess liquidity (timedeposits, etc.) at the parent company, long-term investments (investment securities) and assets associated with administrative departments.

22For the year ended March31, 2010

I. Operating revenues and operating income (loss)
Operating revenues(1) Operating revenues from customers(2) Inter-segment operating revenues or transfers
Total
Operating expenses
Operating income
II. Assets, depreciation and amortization, andcapital expenditures
AssetsDepreciation and amortization
Capital expenditures

OthersTotal

Elimination or
corporate(¥ million)
Consolidated

Transport

Integrated
RetailLogistics

130,5543,266
133,820
130,504
3,315
56,086

73,192
10,67883,87081,8502,019
89,60923,945
12,07736,02235,090931
14,644

227,692
26,021
253,713
247,446
6,267
160,340(26,021)(26,021)(25,904)
(117)
7,790

227,692
227,692
221,541
6,150
168,131

1,650
943

2,804
2,407

171
205

4,626
3,556

342
1,406

4,968
4,962

Note:
1. Business segments above are based on the grouping used internally.
2. Each segment includes the following products:(1) Transport(2) Integrated Retail Logistics(3) Others

Truck cargo transport, special cargo transport, cargo transport using trucks, cargotransport using railways, international and domestic marine cargo transport, harbortransport services, international cargo transport services, others.
Warehouse operations, packaging, movement and other tasks for raw materials andfinished products at customers’ business sites, operation of distribution centers,others.
Sales of petroleum products, sales of information processing equipment, outsourced
information processing services, motor vehicle maintenance and repairs, others.

3. Corporate assets totaling ¥ million are included in eliminations and corporate. These assets consist primarily of excess liquidity (timedeposits, etc.) at the parent company, long-term investments (investment securities) and assets associated with administrative departments.
b. Segment information by geographic area
Fiscal year ended March 31, 2009 and 2010
Information by geographic segment is not shown since operating revenues and total assets in Japan accounted for over 90% of total
operating revenues and total assets in all business segments.
c. Operating revenues from overseas
Fiscal year ended March 31, 2009 and 2010
Operating revenues from overseas operations are not shown since they account for less than 10% of consolidated operating revenues.

23

(Per share information)
Net assets per share
Net income per share
Net income per share - fully diluted

Fiscal 2009
470.48 yen
25.95yen
23.39 yen

Fiscal 2010
489.99 yen
26.83 yen
24.16 yen

(Note)The basis for calculating “net income per share” and “net income per share - fully diluted” is as follows.
Fiscal 2009
Net income per share
Net income¥ 2,848 million yen
Amount not belonging to ordinary shareholders
Net income concerning common stock¥ 2,848 million yen
Average number of shares during the period
109,752 thousand shares
Net income per share - fully diluted
Adjustments in net income
Increase in number of common shares(Warrants)(Convertible bond-type bonds with subscription rights to shares)
Potential shares that have no dilutive effects and thus are not includedin the calculation of “net income per share - fully diluted.”

11,988 thousand shares
146 thousand shares
11,842 thousand shares-Fiscal 2010
¥ 2,946 million yen¥ 2,946 million yen
109,817 thousand shares

12,147 thousand shares
225 thousand shares
11,922 thousand shares-(Subsequent event)
None(Other)Notes regarding “lease transactions,” “related party transactions,” “tax effect accounting”, “financial instruments”, “securities”, “derivativetransactions”, “retirement benefit”, ”stock option” , “real estates for rent”, and “SPC” are omitted, as there is no significant necessity of
disclosure in this financial results report.

24

5. Non-consolidated financial statements(1) Non-consolidated balance sheets(Unit: ¥ million)
March 31, 2009

March 31, 2010

AssetsCurrent assets
Cash and deposits

10,447

11,905662

1,014

17,142

18,908

Real estate for sale23

24

Supplies

47

67

Advance payments-other

43

26

1,165

1,209

466

1,506

Notes receivable-trade
Accounts receivable-trade

Prepaid expenses
Short-term loans receivable

25

26

Deferred tax assets

Short-term claims on directors and employees

1,047

1,250

Accounts receivable-other

1,398

1,990

Other

504

652

Allowance for doubtful accounts

(11)

(12)

32,96338,570

Buildings (net)32,49931,763Structures (net)

2,698

2,538

629

646

Vessels (net)

3,006

2,704

Vehicles (net)

1,434

1,342

872

728

Land

31,50532,354

Lease assets (net)

2,303

2,788

134

490

75,08575,357

Leasehold rights

592

590

Rights of using telecommunication facilities

132

131

Premium

127

98

Lease assets

802

1,374

1,654

2,194

Investment securities

1,779

1,792

Stocks of subsidiaries and affiliates

3,824

5,832

Investments in capital

5,549

5,548

Total current assets
Noncurrent assets
Property, plant and equipment

Machinery and equipment (net)

Tools, furniture and fixtures (net)

Construction in progress
Total property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets

Investments in capital of subsidiaries and affiliates

450

692

Long-term loans receivable

127

118

Long-term loans receivable from directors and employees

104

111

Long-term loans receivable from subsidiaries and affiliates

3,702

2,915

Guarantee deposits

7,281

7,188

Construction assistance fund receivables

86

68

Claims provable in bankruptcy, claims provable in rehabilitation and
other

20

31

Prepaid pension cost

2,046

2,377

Long-term accounts receivable-other

1,621

2,438

Deferred tax assets

4,562

4,454

54

50

Allowance for doubtful accounts

(250)

(287)

Total investments and other assets

30,96033,333

107,700

110,885

140,664

149,455

Other

Total noncurrent assets
Total assets

25

(Unit: ¥ million)
March 31, 2009

March 31, 2010

Liabilities
Current liabilities
Notes payable- trade

1,644

1,905

Operating accounts payable

10,855

12,416

Short-term loans payable

9,600

8,600

918

5,148

7,000

-

602

895

Accounts payable-other

1,107

1,509

Accrued expenses

1,632

1,472

550

1,507

Current portion of long-term loans payable
Current portion of bonds
Lease obligations

Income taxes payable
Advances received-

252

Unearned revenue

910

Deposits received

3,850

4,482

Provision for bonuses

1,895

2,304

Provision for directors’ bonuses

50

84

Other

386

24

40,10340,613-

7,000

Convertible bond-type bonds with subscription rights

4,900

4,900

Long-term loans payable

30,32429,576

Lease obligations

2,690

3,520

Long-term accounts payable-other

3,156

2,982

Provision for retirement benefits

8,574

8,488

Provision for special repairs

26

25

Other

914

746

50,58657,23990,69097,853

18,345

18,345

Legal capital surplus

16,436

16,436

Other capital surplus

170

170

Total capital surplus

16,607

16,607

1,505

1,505

1,436

1,433

59

52

General reserve

9,667

11,317Retained earnings brought forward

3,083

3,015

15,752

17,324

(776)

(772)

49,92951,505

Valuation differences on available-for-sale securities

(15)

16

Total valuation and translation adjustments

(15)

16

60

80

49,97351,601

140,664

149,455

Total current liabilities
Noncurrent liabilities
Bonds payable

Total noncurrent assets
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus

Retained earnings
Legal retained earnings
Other retained earnings
Reserve for advanced depreciation of noncurrent assets
Reserve for special depreciation

Total retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments

Subscription rights to shares
Total net assets
Liabilities and net assets

26

(2) Non-consolidated statements of income(Unit: ¥ million)
Year ended March 31, 2009

Year ended March 31, 2010

Operating revenues

175,336

169,880

Cost of sales

164,145

158,273

Gross profit

11,19011,607

Selling, general and administrative expenses

6,739

6,493

Operating income

4,450

5,113

Interest income

191

148

Dividends income

977

899

Insurance income

255

231

Land and house rent received

46

49

Other

332

283

1,803

1,611

Interest expenses

887

1,018

Interest on bonds

64

37

Insurance expenses

281

267

Other

160

266

1,393

1,589

4,860

5,136

-

70

Non-operating income

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of subsidiaries and affiliates’ stock
Compensation income

175-

Gain on sales of noncurrent assets

50-

Total extraordinary income

225

70

Extraordinary loss
Loss on retirement of noncurrent assets

204

267

Loss on prior periods adjustment-

180

Loss on valuation of subsidiaries’ stocks-

132

Loss on cancellation of lease contracts

208

76

-

45

Loss on valuation of investment securities

47-

Loss on valuation of golf club membership

41-

Total extraordinary loss

501

701

Income before income taxes

4,584

4,504

Income taxes- current

1,417

2,171

Income taxes- deferred

557

(117)

Total income taxes

1,974

2,054

Net income

2,610

2,450

Provision of allowance for doubtful accounts for subsidiaries27

(3) Non-consolidated statements of changes in net assets(Unit: ¥ million)
Year ended March 31, 2009

Year ended March 31, 2010

Shareholders’ equity
Capital stock
Balance at previous fiscal year end

18,295

18,345Issuance of new shares

50-

Total changes of items during the period

50-

18,345

18,345

16,386

16,436

Issuance of new shares

50-

Total changes of items during the period

50-

16,436

16,436166

170

Disposal of treasury stock

3(0)

Total changes of items during the period

3

(0)

170

170

16,553

16,607Issuance of new stock50-

Disposal of treasury stock

3(0)

Total changes of items during the period

53

(0)

16,607

16,607

1,505

1,505

-

-

1,505

1,505

1,439

1,436

Reversal of reserve for advanced depreciation of noncurrent
asset

(3)

(3)

Total changes of items during the period

(3)

(3)

1,436

1,433

9

59

Provision for reserve for special depreciation50-

Reversal of reserve for special depreciation

-

(7)

50

(7)

59

52

Changes of items during the period

Balance at fiscal year end
Capital surplus
Legal capital surplus
Balance at previous fiscal year end
Changes of items during the period

Balance at fiscal year end
Other capital surplus
Balance at previous fiscal year end
Changes of items during the period

Balance at fiscal year end
Total capital surplus
Balance at previous fiscal year end
Changes of items during the period

Balance at fiscal year end
Retained earnings
Legal retained earnings
Balance at previous fiscal year end
Changes of items during the period
Total changes of items during the period
Balance at fiscal year end
Other retained earnings
Reserve for advanced depreciation of noncurrent assets
Balance at previous fiscal year end
Changes of items during the period

Balance at fiscal year end
Reserve for special depreciation
Balance at previous fiscal year end
Changes of items during the period

Total changes of items during the period
Balance at fiscal year end

28

Year ended March 31, 2009

Year ended March 31, 2010

General reserve
Balance at previous fiscal year end

7,817

9,667

Provision for general reserve

1,850

1,650

Total changes of items during the period

1,850

1,650

9,667

11,317

3,247

3,083

3

3

Provision for reserve for special depreciation

(50)

-

Reversal of reserve for special depreciation-

7(1,850)(1,650)

Dividends from surplus

(877)

(878)

Net income

2,610

2,450

Total changes of items during the period

(164)

(67)

3,083

3,015

14,01915,752

Reversal of reserve for advanced depreciation of noncurrent
assets--Provision for reserve for special depreciation--

Changes of items during the period

Balance at fiscal year end
Retained earnings brought forward
Balance at previous fiscal year end
Changes of items during the period
Reversal of reserve for advanced depreciation of noncurrent
assetsProvision of general reserve

Balance at fiscal year end
Total retained earnings
Balance at previous fiscal year end
Changes of items during the period

Reversal of reserve for special depreciation--

Provision of general reserve--

Dividends from surplus

(877)

(878)

Net income

2,610

2,450

Total changes of items during the period

1,733

1,572

15,752

17,324

(717)

(776)

Purchase of treasury stock

(74)

(4)

Disposal of treasury stock

15

8

Total changes of items during the period

(59)

4

(776)

(772)

48,151

49,929Issuance of new shares

100-

Dividends from surplus

(877)

(878)

Net income

2,610

2,450

Purchase of treasury stock

(74)

(4)

Disposal of treasury stock

19

8

1,777

1,576

49,92951,505

Balance at fiscal year end
Treasury stock
Balance at previous fiscal year end
Changes of items during the period

Balance at fiscal year end
Total shareholders’ equity
Balance at previous fiscal year end
Changes of items during the period

Total changes of items during the period
Balance at fiscal year end

29

Year ended March 31, 2009

Year ended March 31, 2010

Valuation and translation adjustments
Valuation differences on available-for-securities
Balance at previous fiscal year end

76

(15)

Net changes of items other than shareholders’ equity

(91)

31

Total changes of items during the period

(91)

31

(15)

16

76

(15)

Net changes of items other than shareholders’ equity

(91)

31

Total changes of items during the period

(91)

31

(15)

16

26

60

Net changes of items other than shareholders’ equity

34

20

Total changes of items during the period

34

20

60

80

48,25349,973

Changes of items during the period

Balance at fiscal year end
Total Valuation and translation adjustments
Balance at previous fiscal year end
Changes of items during the period

Balance at fiscal year end
Subscription rights to shares
Balance at previous fiscal year end
Changes of items during the period

Balance at fiscal year end
Total net assets
Balance at previous fiscal year end
Changes of items during the period
Issuance of new shares

100-

Dividends from surplus

(877)

(878)

Net income

2,610

2,450

Purchases of treasury stock

(74)

(4)

Disposal of treasury stock

19

8

Net changes of items other than shareholders’ equity

(57)

51

1,719

1,628

49,97351,601

Total changes of items during the period
Balance at fiscal year end(4) Notes to Assumption of Going Concern
Not applicable.

30