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

SENKO Group Holdings Co., Ltd.

Summary of Financial Statements for the Fiscal Year Ended March 31, 2020
[Japan GAAP]

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

May 13, 2020
SENKO Group Holdings Co., Ltd.
Stock Listed on: The First Section of the Tokyo Stock Exchange
9069
URL https://www.senkogrouphd.co.jp/en/
Title: President and Representative Director
Name: Yasuhisa Fukuda
Title: Executive Officer, Responsible for PR & IR
Name: Satoru Kokubo
Tel. (06) 6440-5156

Scheduled Date of Annual Meeting of Shareholders:
Scheduled Date of Issue of Financial Report:
Supplemental Information Materials:
Information Meeting for Financial Results:

June 25, 2020
June 25, 2020

Scheduled Date of Dividend Paid: June 26, 2020

Yes
Yes (for analysts)(Amounts less than ¥1 million have been rounded down)

1. Consolidated Operating Results for the Fiscal Year Ended March 31, 2020 (From April 1, 2019 to March 31, 2020)(1) Consolidated Operating Results
Operating revenue
Million yen
570,030
529,609

Fiscal year ended March 31, 2020
Fiscal year ended March 31, 2019
(Note) Comprehensive income

%
7.6
7.6

(Percentage figures represent year-on-year changes)
Profit attributable toOperating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
20,656
5.2
20,7444.4
12,081
3.4
19,631
14.9
19,876
14.8
11,681
22.9

Fiscal year ended March 31, 2020: ¥10,677 million (1.2%) Fiscal year ended March 31, 2019: ¥10,547 million (–18.2%)
Profitper share
Fiscal year ended March 31, 2020
Fiscal year ended March 31, 2019
(Reference) Equity in earnings (losses) of affiliates:

Diluted profit
per share

Yen
79.51
76.90

Fiscal year ended March 31, 2020: ¥408 million

Return on equity

Yen
73.75
71.31

%
9.9
10.1

Ratio of ordinary
profit to total
assets
%6.0
5.9

Ratio of operating
profit to operating
revenue%
3.6
3.7

Fiscal year ended March 31, 2019: ¥402 million(2) Consolidated Financial Position
Total assets
Million yen
356,308
340,491

As of March 31, 2020
As of March 31, 2019
(Reference) Equity:
As of March 31, 2020: ¥125,158 million

Net assets
Million yen
134,181
126,895

Equity ratio
%
35.1
35.0

Net assets per shareYen
823.61785.08

As of March 31, 2019: ¥119,204 million(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Million yen
31,09827,022

Fiscal year ended March 31, 2020
Fiscal year ended March 31, 2019

Cash flows fromfinancing activities

Million yen(18,030)(15,770)

Million yen(9,155)(13,224)

Cash and cash
equivalents at end of
periodMillion yen
27,14222,801

2. Dividends
June
30
Yen

Annual dividend
September December
30
31
Yen
Yen
−
13.00
−
13.00

March
31
Yen
13.00
13.00

Total

Yen
−
Fiscal year ended March 31, 2019
26.00−
Fiscal year ended March 31, 2020
26.00
Fiscal year ending March 31, 2021
−
−
−
−
−
(Forecast)(Note) The dividend forecast for the fiscal year ending March 31, 2021 is undetermined at this time.

Aggregate
Dividend on
Payout ratio
amountequity ratio(Consolidated)(Consolidated)(Annual)Million yen
%
%
3,966
33.8
3.4
3,969
32.7
3.2
−

3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2021 (From April 1, 2020 to March 31, 2021)
The forecast of consolidated operating results for the fiscal year ending March 31, 2021 is undetermined as a reasonable assessment of the
impact of the novel coronavirus disease (COVID-19) is difficult at this time. The forecast of consolidated operating results will be announced
promptly when disclosure becomes possible.
Notes(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 and estimates, and retrospective restatement(a) Changes due to revision of accounting standards: None(b) Changes other than in (a): None(c) Changes in accounting estimates: Yes(d) Retrospective restatement: None
(3) Shares outstanding (Common shares)(a) Shares outstanding (including treasury shares)
As of March 31, 2020:

152,861,921 shares

As of March 31, 2019:

152,861,921 shares

898,113 shares

As of March 31, 2019:

1,024,460 shares(b) Treasury shares
As of March 31, 2020:(c) Average number of sharesFiscal year ended March 31, 2020:

151,936,796 sharesFiscal year ended March 31, 2019:

151,898,229 shares(Note) Starting with the third quarter of the fiscal year ended March 31, 2018, the number of treasury shares at term-end includes Senko
shares owned by the trust accounts of Performance-linked Stock Compensation Plan for Employees (as of March 31, 2020: 348,880
shares; as of March 31, 2019: 351,500 shares) and Performance-linked Stock Compensation Plan for Directors (as of March 31,
2020: 352,988 shares; as of March 31, 2019: 353,000 shares).
[Reference] Overview of Non-Consolidated Operating Results
Non-Consolidated Operating Results for the Fiscal Year Ended March 31, 2020 (From April 1, 2019 to March 31, 2020)(1) Non-Consolidated Operating Results

Fiscal year ended March 31, 2020
Fiscal year ended March 31, 2019

Operating revenue
Million yen%
10,342
11.1
9,305
152.0

(Percentage figures represent year-on-year changes)
Operating profit
Ordinary profit
ProfitMillion yen%
Million yen%
Million yen
%
4,491
3.7
4,672
(0.7)
3,995
8.4
4,330
370.3
4,705
459.4
3,686
333.0

Profitper share
Fiscal year ended March 31, 2020
Fiscal year ended March 31, 2019

Diluted profit
per share
Yen
26.29
24.27

Yen
24.36
22.48

Total assets
Million yen
216,568
210,904

Net assets
Million yen
76,63076,903(2) Non-Consolidated Financial Position

As of March 31, 2020
As of March 31, 2019
(Reference) Equity:
As of March 31, 2020: ¥76,198 million

Equity ratio
%
35.2
36.3

Net assets per shareYen
501.42503.69As of March 31, 2019: ¥76,479 million

This financial report is exempt from audit conducted by certified public accountants or an audit corporation.
Cautionary statement regarding forecasts of operating results and special notes The forecast of consolidated operating results for the fiscal year ending March 31, 2021 is undetermined as a reasonable assessment of
the impact of COVID-19 is difficult at this time. The forecast of consolidated operating results will be announced promptly when disclosure
becomes possible. For details, please see “Forecasts” on page 3.
 The supplementary material on financial results will be available on the Company’s website.

Index to accompanying materials

1. Overview of Operating Results and Others ................................................................................................................................................. 2(1) Overview of operating results and others ........................................................................................................................................... 2(2) Financial condition ............................................................................................................................................................................. 3(3) Fundamental policy for distribution of earnings and dividends for the current and the next fiscal years ........................................ 4(4) Business risk ....................................................................................................................................................................................... 4
2. Basic Concept Regarding the Selection of Accounting Standards ............................................................................................................. 5
3. Consolidated Financial Statements ............................................................................................................................................................. 6(1) Consolidated balance sheets .............................................................................................................................................................. 6(2) Consolidated statements of (comprehensive) income ....................................................................................................................... 8
Consolidated statements of income................................................................................................................................................... 8
Consolidated statements of comprehensive income....................................................................................................................... 10(3) Consolidated statements of changes in equity ................................................................................................................................. 11(4) Consolidated statements of cash flows ............................................................................................................................................ 13

1

1.

Overview of Operating Results and Others(1) Overview of operating results and others(a) Overview of results of operations in the fiscal year ended March 31, 2020
In the fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020), the employment and income environment in the Japanese
economy continued to improve, but the outlook remains unclear due to factors such as the development of a slowdown in overseas
economies as a result of trade friction between the United States and China, and the rush in demand before the consumption tax hikeand the recoil in demand after the tax hike.
In particular, the business environment has been highly challenging due to the impact of the spread of novel coronavirus disease(COVID-19) in the fourth quarter.
In this environment, the Senko Group has worked to expand and strengthen its business operations, as the third year of the “Senko
Innovation Plan 2021 (SIP21)” five-year medium-term business plan.
The following provides an outline of our main activities in the fiscal year ended March 31, 2020.
In the Logistics, SENKO Co., Ltd. commenced operations of Inzai Logistics Center (Inzai City, Chiba Prefecture) in May, Oita PD Center(Oita City, Oita Prefecture) in October, and Amagasaki PD Center (Amagasaki City, Hyogo Prefecture) in February.
Moreover, Runtec Corporation commenced operations of the frozen and refrigerated storage warehouse of its Kansai Branch(Nishinomiya City, Hyogo Prefecture) in July.
Outside Japan, M-Senko Logistics Co., Ltd., a joint venture with MK Restaurant Group Public Company Limited, a major Thai restaurant
chain conglomerate, commenced operations of its three-temperature zone (i.e., frozen, refrigerated, and normal) M-SENKO Logistics
Center in October, and has been working to develop a cold logistics chain in Thailand.
In the Trading & Commerce, AST CORPORATION started to handle household paper products for large-scale mass-merchandisergroups throughout Japan.
In the Living Support, we have been actively working to open new locations. VENUS CO., LTD., which operates day-care locations, has
opened eleven new locations, BLUE EARTH JAPAN Co., Ltd., which operates fitness clubs, has opened six new locations including theirfirst overseas location in Cebu Island in the Philippines, and KEIHANNA helper station Co., Ltd., which operates residential nursing
homes, has opened two new locations.
In the Business Support, Tokyo Eastside Hotel Kaie, which had been constructed within the grounds of the Company’s Head Office in
Shiomi, Koto-ku, Tokyo, celebrated its grand opening in February.
With regard to initiatives to reduce environmental load, SENKO Co., Ltd. and Runtec Corporation respectively received the Special
Logistics Environment Award from the Japan Association for Logistics and Transport in June, and four Group companies received theAward for Excellent Business Entities Working on Modal Shift from the same association in November.
The full-year performance was as follows.
(Unit: Millions of Yen)

Operating revenue
Operating profit
Ordinary profit
Profit attributable to owners ofparentFiscal year ended
March 31, 2019529,609

Fiscal year ended
March 31, 2020
570,030

40,421

7.6

19,631
19,876

20,656
20,744

1,024
868

5.2
4.4

11,681

12,081

399

3.4

Change%Consolidated operating revenue for the fiscal year ended March 31, 2020 increased ¥40,421 million year on year to ¥570,030 million.
This result mainly reflected effects of expanding sales and revising the freight charges, opening logistics centers, and making overseas
Group companies and operating companies of living support services into consolidated subsidiaries. On the profit front, despite factorsthat include higher costs largely stemming from rises in outsourcing costs and the impact of the spread of COVID-19, consolidated
operating profit increased ¥1,024 million year on year to ¥20,656 million and consolidated ordinary profit increased ¥868 million year on
year to ¥20,744 million. This upturn in profits was largely attributable to the effects of the higher revenue mentioned previously and ourefforts to improve productivity. Profit attributable to owners of parent increased to ¥12,081 million, up ¥399 million year on year.
The full-year operating revenue by segment was as follows.

2

Logistics(Unit: Millions of Yen)

Operating revenue

Fiscal year ended
March 31, 2019375,384

Fiscal year ended
March 31, 2020
392,728

16,21017,847

Segment income

Change%17,343

4.6

1,637

10.1

Operating revenue increased ¥17,343 million year on year to ¥392,728 million and segment income rose ¥1,637 million year on year to¥17,847 million. This was mainly attributable to the effects of the commencement of operations of logistic centers in the current and theprevious fiscal year as well as the effect of expanding sales and revising freight charges, and making seven overseas Group companies
into consolidated subsidiaries.
Trading & commerce(Unit: Millions of Yen)

Operating revenue

Fiscal year ended
March 31, 2019
142,294

Fiscal year ended
March 31, 2020
161,314

2,280

2,119

Segment income

Change%19,020

13.4

(160)

(7.0)

Operating revenue increased ¥19,020 million year on year to ¥161,314 million and segment income fell ¥160 million year on year to¥2,119 million. Although sales of household paper products for large-scale mass-merchandiser groups grew, there were higher costs
largely stemming from rises in outsourcing costs.
Others(Unit: Millions of Yen)

Operating revenue
Segment income

Fiscal year ended
March 31, 201911,930Fiscal year ended
March 31, 2020
15,987

1,679

1,419

Change

%
4,057

34.0

(260)

(15.5)

Operating revenue increased ¥4,057 million year on year to ¥15,987 million and segment income fell ¥260 million year on year to ¥1,419
million. Although there was business expansion such as making Life-eat Co., Ltd., which manages the food and drink business, into a
consolidated subsidiary as well as opening new nursing care and fitness locations and opening a hotel, the segment has been affectedby the spread of COVID-19.
(b) Forecasts
As a result of the worldwide outbreak of COVID-19, the future outlook remains highly unclear. Under such circumstances, the forecast ofoperating results for the fiscal year ending March 31, 2021 is undetermined as calculation of a reasonable estimate is difficult at this time.
The forecast of operating results will be announced promptly when disclosure becomes possible.
(2) Financial condition(a) Assets, liabilities and net assets
Total assets
Total assets as of March 31, 2020 were ¥356,308 million, ¥15,817 million higher than at the end of the previous fiscal year.
Current assets amounted to ¥124,210 million, up ¥6,947 million from the end of the previous fiscal year. This mainly reflected increasesof ¥3,246 million in cash and deposits and ¥3,050 million in trade notes and accounts receivable.
Non-current assets totaled ¥231,384 million, up ¥8,189 million from the end of the previous fiscal year. This was primarily due toincreases of ¥8,763 million in property, plant and equipment and ¥1,131 million in intangible assets, despite a decrease of ¥1,706 million
in investments and other assets.
Liabilities
Liabilities as of March 31, 2020 increased ¥8,531 million from the end of the previous fiscal year to ¥222,127 million.
Current liabilities totaled ¥111,638 million, up ¥12,969 million from the end of the previous fiscal year. This was mainly due to increasesof ¥3,382 million in trade notes and accounts payable and ¥7,671 million in short-term borrowings.
Non-current liabilities totaled ¥110,489 million, down ¥4,437 million from the end of the previous fiscal year. This was primarily due to adecrease of ¥8,857 million in long-term borrowings, despite an increase of ¥3,412 million in lease obligations.
Net assets
Net assets as of March 31, 2020 rose ¥7,285 million from the end of the previous fiscal year to ¥134,181 million. This was primarily due
to increases of ¥7,918 million in retained earnings and ¥1,324 million in non-controlling interests, despite a decrease of ¥1,519 million inremeasurements of defined benefit plans. The equity ratio as of March 31, 2020 increased by 0.1 percentage points to 35.1% from theend of the previous fiscal year.

3(b) Cash flows
Cash and cash equivalents as of March 31, 2020 increased by ¥4,340 million from the end of the previous fiscal year to ¥27,142 million.
Net cash provided by operating activities amounted to ¥31,098 million. This was mainly due to profit before income taxes of ¥19,648
million, depreciation of ¥15,565 million, an increase in cash due to an increase in trade payables of ¥1,572 million, and an increase in
cash due to an increase in accrued consumption taxes of ¥2,317 million, despite a ¥2,866 million decrease in cash from an increase intrade receivables and income taxes paid of ¥7,645 million.
Net cash used in investing activities totaled ¥18,030 million. This was mainly due to the purchase of property, plant and equipment of¥17,449 million.
Net cash used in financing activities totaled ¥9,155 million. This was mainly due to repayments of long-term borrowings of ¥6,978
million, repayments of finance lease obligations of ¥3,924 million and dividends paid of ¥3,964 million, despite proceeds from long-termborrowings of ¥5,210 million.
(c) Performance indicators associated with cash flows
Fiscal years ended March 31

2016

2017

2018

2019

2020

Equity ratio (%)

32.6

35.1

33.7

35.0

35.1

Market capitalization equity ratio (%)

36.4

38.0

37.6

41.0

35.7

Interest-bearing debt to cash flow ratio

5.7

4.1

4.9

4.2

3.6

Interest coverage ratio

14.7

21.9

25.4

26.2

28.3

Notes:
Equity ratio: 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 shares).
• 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 dividends for the current and the next fiscal years
While securing internal reserves necessary for future business development and management structure reinforcement, the basic policy of
the Company is to return profits to shareholders by implementing stable dividends and dividends that are linked to business results withthe aim of enhancing the return to its shareholders.
In accordance with this policy, the year-end dividend for the fiscal year ended March 31, 2020 is set at ¥13.00 per share as previously
forecasted. Combined with the already declared interim dividend of ¥13.00, the total annual dividend is expected to be ¥26.00.
The dividend forecast of the fiscal year ending March 31, 2021 is undetermined at this time. The dividend forecast will be announced
promptly when disclosure of a reasonable estimate becomes possible.
(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, 2019), which includes a section about business and other risks.

42.

Basic Concept Regarding the Selection of Accounting Standards
To facilitate comparisons of its consolidated financial statements across time periods and with other companies, the Senko Group intends
to prepare its consolidated financial statements based on Japanese generally accepted accounting principles (JGAAP) for the time being.
With regard to the adoption of International Financial Reporting Standards (IFRS), the Company intends to respond to this issue
appropriately while giving consideration to various circumstances in Japan and overseas.

5

3.

Consolidated Financial Statements(1) Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2019

As of March 31, 2020

AssetsCurrent assets
Cash and deposits

25,23228,479Trade notes and accounts receivable

71,311

74,361

Electronically recorded monetary claims - operating

1,785

2,651

Merchandise and finished goods

8,513

8,368

Work in process

670

679

Raw materials and supplies

583

567

Other

9,181

9,125

Allowance for doubtful accounts

(14)

(21)

117,263

124,210

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

142,722

145,107

Accumulated depreciation(78,077)(80,965)

Buildings and structures, net

64,64564,141

Machinery, equipment and vehicles

62,54367,912(40,819)(44,383)

Machinery, equipment and vehicles, net

21,723

23,528Tools, furniture and fixtures

8,398

9,333

Accumulated depreciation(6,656)(7,061)Tools, furniture and fixtures, net

1,742

2,272

Land

59,66961,669Leased assets

16,875

19,245

Accumulated depreciation(6,751)(6,173)

Leased assets, net

10,124

13,071

Construction in progress

4,308

6,293

162,214

170,978

Goodwill

7,446

7,762

Other

4,576

5,391

Total intangible assets

12,022

13,154

Investment securities

20,26017,662

Accumulated depreciation

Total property, plant and equipment
Intangible assets

Investments and other assets
Long-term loans receivable

3,888

3,452

Retirement benefit asset

3,088

2,094

Guarantee deposits

13,271

14,556

Deferred tax assets

5,138

5,996

Other

4,019

4,269

Allowance for doubtful accounts

(709)

(779)

Total investments and other assets

48,95847,251

Total non-current assets

223,195

231,384

Business commencement expenses

32

713

Total deferred assets

32

713

340,491

356,308

Deferred assets

Total assets

6

(Unit: Millions of Yen)
As of March 31, 2019

As of March 31, 2020

Liabilities
Current liabilities
Trade notes and accounts payable

37,60340,985

Electronically recorded obligations - operating

7,047

6,559

48

48

Short-term borrowings

21,58029,252

Lease obligations

3,181

3,673

Income taxes payable

4,242

3,745

Provision for bonuses

5,253

5,433

347

401

Current portion of bonds payable

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

103

–

Other

19,261

21,537

Total current liabilities

98,669111,638

Non-current liabilities
Bonds payable

17,12017,072

Convertible bond-type bonds with share acquisitionrights

10,02910,019Long-term borrowings

64,696

55,839Lease obligations

10,50013,912

Provision for retirement benefits for directors (andother officers)

180

201

Provision for special repairs

80

90

Provision for share-based remuneration

124

271

Retirement benefit liability

6,970

7,060

Asset retirement obligations

1,011

1,145

Other

4,212

4,876

114,926

110,489

213,595

222,127

Share capital

26,52826,528

Capital surplus

29,841

29,770Retained earnings

62,98370,901

Treasury shares

(697)

(652)

118,656

126,548

1,350

779

Deferred gains or losses on hedges

(3)

14

Foreign currency translation adjustment

122

256

Remeasurements of defined benefit plans(920)(2,439)Total accumulated other comprehensive income

548(1,390)Share acquisition rights

424

432

Non-controlling interests

7,265

8,590

126,895

134,181

340,491

356,308

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

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total net assets
Total liabilities and net assets

7

(2) Consolidated statements of (comprehensive) income(Consolidated statements of income)(Unit: Millions of Yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

(April 1, 2018–March 31, 2019)(April 1, 2019–March 31, 2020)

Operating revenue

529,609570,030

Operating costs

471,129

503,687

Operating gross profit

58,47966,342

Selling, general and administrative expenses

38,84745,686

Operating profit

19,631

20,656

Non-operating income
Interest income

122

110

Dividend income

146

143

Share of profit of entities accounted for using equity
method402

408

Rental income from land and buildings

246

302

Other

1,175

1,250

Total non-operating income

2,093

2,216

1,035

1,099

–

236

813

792

1,849

2,128

19,876

20,744

1,586

578

Gain on reversal of tax purpose reduction entry of
non-current assets–

237

Insurance claim income–

144

Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Subsidy income

Gain on sales of non-current assets

370

58

Gain on extinguishment of tie-in shares–

51

Gain on termination of retirement benefit plan–

46

Gain on sales of investment securities

259–

Gain on liquidation of subsidiaries and associates

79–

Reversal of allowance for doubtful accounts for
subsidiaries and associates

34

–

2,330

1,117

1,565

564

–

355

Total extraordinary income
Extraordinary losses
Loss on tax purpose reduction entry of non-current
assetsLoss on liquidation of subsidiaries
Loss on return of subsidies–

237

Impairment loss

31

210

Provision of allowance for doubtful accounts for
subsidiaries and associates

149

208

Loss on valuation of shares of subsidiaries andassociates

675

189

Loss on retirement of non-current assets

334

159

–

117

Loss on valuation of investment securities–

113

Litigation settlement–

55

Loss on liquidation of subsidiaries

200–

Loss on office withdrawal

133–

Loss on disaster

111–

Provision for loss on disaster

103

–

3,304

2,213

Settlement package

Total extraordinary losses

8Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

(April 1, 2018–March 31, 2019)(April 1, 2019–March 31, 2020)

Profit before income taxes

18,901

19,648

Income taxes - current

7,102

7,009

Income taxes - deferred

(295)

102

Total income taxes

6,806

7,111

Profit12,094

12,536413

455

11,681

12,081

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

9

(Consolidated statements of comprehensive income)(Unit: Millions of Yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

(April 1, 2018–March 31, 2019)(April 1, 2019–March 31, 2020)

Profit12,094

12,536

(433)

(560)

58

21

Foreign currency translation adjustment

(294)

199

Remeasurements of defined benefit plans, net of tax(877)(1,519)(1,547)(1,859)10,547

10,677

10,227

10,078

320

598

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 ofparentComprehensive income attributable to noncontrolling interests10(3) Consolidated statements of changes in equity
Fiscal year ended March 31, 2019 (April 1, 2018 – March 31, 2019)(Unit: Millions of Yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

26,52829,730Retainedearnings

Treasury shares

Total
shareholders’equity(590)

110,637

54,968Changes during period
Dividends of surplus(3,660)(3,660)

Profit attributable to owners ofparent11,681

11,681

Purchase of treasury shares
Disposal of treasury shares

(127)

20

17

(2)

Change in scope of consolidation(5)

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders’ equity

(5)

114

114
–

Total changes during period
Balance at end of period

(127)

–

111

8,015

(107)

8,018

26,52829,841

62,983(697)

118,656

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference
on availablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

1,775

(61)

334

(42)

Total
accumulated
othercomprehensive
income

2,005

Share
acquisitionrights

Noncontrollinginterests

Total net
assets373

5,040

118,056

Changes during period
Dividends of surplus–(3,660)

Profit attributable to owners ofparent–11,681

Purchase of treasury shares

–

(127)

Disposal of treasury shares–

17

Change in scope of consolidation

–

(5)

–

114

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders’ equity

(424)

57

(212)

(877)

(1,457)

51

2,225

820

Total changes during period

(424)

57

(212)

(877)

(1,457)

51

2,225

8,838

Balance at end of period

1,350

(3)

122

(920)

548

424

7,265

126,895

11

Fiscal year ended March 31, 2020 (April 1, 2019 – March 31, 2020)(Unit: Millions of Yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

26,52829,841Retainedearnings

Treasury shares

Total
shareholders’equity(697)

118,656

62,983

Changes during period
Dividends of surplus(3,967)(3,967)

Profit attributable to owners ofparent12,081

12,081

Purchase of treasury shares
Disposal of treasury shares

4

Change in scope of consolidation

42

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders’ equity

(0)

46

50

(195)

(152)

(119)

(119)
–

Total changes during period
Balance at end of period

(0)

–

(71)

7,918

45

7,892

26,52829,77070,901(652)

126,548

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference
on availablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive
incomeShare
acquisitionrights

Noncontrollinginterests

Total net
assets

1,350

(3)

122

(920)

548

424

7,265

126,895

Changes during period
Dividends of surplus–(3,967)

Profit attributable to owners ofparent–12,081

Purchase of treasury shares–(0)

Disposal of treasury shares–

50

Change of scope of consolidation

–

(152)

–

(119)

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders’ equity

(571)

17

134

(1,519)(1,938)

7

1,324

(606)

Total changes during period

(571)

17

134

(1,519)(1,938)

7

1,324

7,285

Balance at end of period

779

14

256

(2,439)(1,390)

432

8,590

134,18112

(4) Consolidated statements of cash flows(Unit: Millions of Yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

(April 1, 2018 – March 31, 2019)(April 1, 2019 – March 31, 2020)

Profit before income taxes

18,901

19,648Depreciation

14,334

15,565

Amortization of goodwill

484

705

Increase (decrease) in allowance for doubtful accounts

98

171

Decrease (increase) in retirement benefit asset

(57)

(139)

Increase (decrease) in retirement benefit liability

(598)

(670)

Increase (decrease) in provision for bonuses

584

176

Increase (decrease) in provision for share-based remuneration

124

271

Increase (decrease) in provision for loss on disaster

103

(103)

Interest and dividend income

(272)

(253)

Foreign exchange losses (gains)

293

67

Interest expenses

1,035

1,099

Subsidy income(1,586)(578)

Loss on tax purpose reduction entry of non-current assets

1,565

564

Loss (gain) on liquidation of subsidiaries–

355

Loss on return of subsidies–

237

Gain on reversal of tax purpose reduction entry of non-current assets

–

(237)

Impairment loss

31

210

Loss on valuation of shares of subsidiaries and associates

675

189

Insurance claim income

–

(144)

Settlement package–

117

Litigation settlement–

55

Loss (gain) on extinguishment of tie-in shares

–

(51)

Gain on termination of retirement benefit plan

–

(46)

Loss on liquidation of subsidiaries

200–

Loss on office withdrawal

133–

Loss on disaster

111–

Loss (gain) on sales of non-current assets

(348)

(52)

Loss on retirement of non-current assets

334

159

Decrease (increase) in trade receivables(2,138)(2,866)

Decrease (increase) in inventories

Cash flows from operating activities(1,547)

131

Increase (decrease) in trade payables

871

1,572

Increase (decrease) in accrued consumption taxes

(647)

2,317

Decrease (increase) in consumption taxes refund receivable

1,440

545

Other

(730)

(5)

Subtotal

33,39739,013

Subsidies received

1,586

578

Settlement package paid

–

(105)

Subsidies returned

–

(237)

718

594

Interest paid

(1,030)(1,097)

Income taxes paid

(7,649)(7,645)

Net cash provided by (used in) operating activities

27,02231,098Interest and dividends received

13

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

(April 1, 2018 – March 31, 2019)(April 1, 2019 – March 31, 2020)

Cash flows from investing activities
Payments into time deposits(3,595)(2,738)Proceeds from withdrawal of time deposits

2,412

3,934

Purchase of property, plant and equipment(24,375)(17,449)

Proceeds from sales of property, plant and equipment

14,094

1,182

Purchase of shares of subsidiaries and associates(1,295)–(1,380)–(1,576)(2,043)

(54)

(916)

(15,770)(18,030)

Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Payments of guarantee deposits
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings(5,331)212

Proceeds from long-term borrowings

7,711

5,210

Repayments of long-term borrowings(9,865)(6,978)

Repayments of finance lease obligations(3,871)(3,924)

Proceeds from share issuance to non-controlling shareholders

2,305

803

Dividends paid

(3,659)(3,964)

Dividends paid to non-controlling interests

(86)

(170)

Payments from changes in ownership interests in subsidiaries that
do not result in change in scope of consolidation

(169)

(152)

Other

(256)

(191)

(13,224)(9,155)(115)

45

Net increase (decrease) in cash and cash equivalents(2,087)

3,958

Cash and cash equivalents at beginning of period

23,79522,801

Increase in cash and cash equivalents resulting from inclusion ofsubsidiaries in consolidation

1,093

315

Increase in cash and cash equivalents resulting from merger withunconsolidated subsidiaries–

66

22,801

27,142

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Cash and cash equivalents at end of period14