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 Third Quarter of the Fiscal Year Ending March 31, 2018
[Japan GAAP]

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

February 9, 2018
SENKO Group Holdings Co., Ltd.
Stock Listed on: The First Section of the Tokyo Stock Exchange
9069
URL http://www.senkogrouphd.co.jp/en/
Title: President
Name: Yasuhisa Fukuda
Title: Executive Officer, Public Relations and IR
Name: Noburoh SasakiTel. (06) 6440-5155

Scheduled Date of Issue of Financial Report:
Supplemental Information Materials:
Scheduled Date of Quarterly Information Meeting:February 14, 2018

Scheduled Date of Dividend Paid: −None
None

1. Consolidated Operating Results for the Nine Months Ended December 31, 2017
(1) Consolidated Operating Results
Operating revenue
Nine months ended December 31, 2017
Nine months ended December 31, 2016
(Note) Comprehensive income

Million yen
373,008
343,759%
8.5
4.7

Note: Amounts less than ¥1 million have been rounded down.
Profit attributable toOperating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
13,346(6.5)
13,466(6.7)
7,435(2.7)
14,271
3.6
14,435
7.5
7,641
3.3

Nine months ended December 31, 2017: ¥10,562 million (10.3%)
Profitper share

Nine months ended December 31, 2016: ¥9,574 million (8.8%)
Diluted profit
per share

Yen
49.03
53.34

Yen
45.46
50.21

Total assets
Million yen
327,217285,958

Net assets
Million yen
122,665
114,090

Nine months ended December 31, 2017
Nine months ended December 31, 2016
(2) Consolidated Financial Position

As of December 31, 2017
As of March 31, 2017
(Reference) Shareholders’ equity:

As of December 31, 2017: ¥106,032 million

Equity ratio
%
32.4
35.1

Net assets per shareYen
697.93661.61

As of March 31, 2017: ¥100,287 million

2. Dividends
June 30
Yen

September 30
Yen
11.00
11.00

−
Fiscal year ended March 31, 2017−
Fiscal year ending March 31, 2018
Fiscal year ending March 31, 2018
(Forecast)(Note) Change in the estimation of dividend for the fiscal year in this period: None

Annual dividendDecember 31
Yen−March 31

Total

Yen
11.00

Yen
22.00

11.00

22.00

−

3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2018 (From April 1, 2017 to March 31, 2018)
Operating revenue
Million yen%
Fiscal year ending March 31, 2018
500,000
9.8(Note) Change in the forecast made in this period: None

Operating profit
Million yen
18,000%
5.4(Percentage figures represent year-on-year changes)
Profit attributable toProfit
Ordinary profit
owners of parentper share
Million yen% Million yen%
Yen
18,300
5.8
9,900
10.6
65.31Notes(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries associated with change in scope ofconsolidation): None
(2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements: None
(3) Changes in accounting principles and estimates, and retrospective restatement(a) Changes due to revision of accounting standards: None(b) Changes other than in (a): None(c) Changes in accounting estimates: None(d) Retrospective restatement: None
(4) Shares outstanding (Common shares)(a) Shares outstanding (including treasury shares)
As of December 31, 2017:

152,861,921 shares

As of March 31, 2017:

152,861,921 shares

937,015 shares

As of March 31, 2017:

1,279,937 shares(b) Treasury shares
As of December 31, 2017:(c) Average number of shares (quarterly consolidated cumulative period)
Nine months ended December 31, 2017: 151,662,782 shares

Nine months ended December 31, 2016:

143,245,057 shares(Note) Starting with the first quarter of the fiscal year ended March 31, 2015, the number of treasury shares at term-end includes Senkoshares owned by the trust account of employee stock ownership plan (as of December 31, 2017: – shares; as of March 31, 2017:873,200 shares), following revisions to accounting principles due to the amendment of accounting standards. Starting with the third
quarter of the fiscal year ending March 31, 2018, the number of treasury shares at term-end includes Senko shares owned by thetrust accounts of Performance-linked Stock Compensation Plan for Employees (as of December 31, 2017: 349,900 shares) andPerformance-linked Stock Compensation Plan for Directors (as of December 31, 2017: 210,200 shares).
Quarterly financial results reports are not required to be subjected to quarterly reviews.
Cautionary statement regarding forecasts of operating results and special notes
Forward-looking statements in these materials are based on information available to management at the time this report was prepared
and assumptions that management believes are reasonable. Actual results may differ significantly from these statements for a number ofreasons. For information about the assumptions used for forecasts and precautions concerning the use of forecasts, please see “Forecastfor the full-term of the fiscal year ending March 31, 2018” on page 4.

Index to accompanying materials

1．Results of Operations and Financial Condition ........................................................................................................................................ 2(1) Results of operations ......................................................................................................................................................................... 2(2) Financial condition ............................................................................................................................................................................. 3(3) Forecast for the full-term of the fiscal year ending March 31, 2018................................................................................................... 4
2．Consolidated Financial Statements ......................................................................................................................................................... 5(1) Consolidated balance sheets .............................................................................................................................................................. 5(2) Consolidated statements of (comprehensive) income ....................................................................................................................... 7
Consolidated statements of income
For the nine months ended December 31, 2016 and 2017 ............................................................................................................ 7
Consolidated statements of comprehensive income
For the nine months ended December 31, 2016 and 2017 ............................................................................................................ 81

Results of Operations and Financial Condition(1) Results of operations
In the nine-month period of the fiscal year ending March 31, 2018 (April 1, 2017 to December 31, 2017), the Japanese economy has
been recovering at a moderate pace amid firm consumer spending and capital expenditure against backdrop of factors that include more
upbeat corporate earnings and a better employment environment. Meanwhile the outlook for the overseas economy is clouded byuncertainties ahead, such as the potential impacts of geopolitical risks, despite solid trends of recovery continuing particularly in theUnited States and emerging countries in Asia.
In the logistics industry where our core business lies, freight volume has been firm mainly for consumer-related and production-related
cargo but the business environment overall has remained challenging due to shortages of drivers and workers combined with increasing
costs particularly with respect to expenses for hiring vehicles and other outsourcing costs, as well as fuel costs.
In this environment, the Senko Group transitioned to a holding company structure in April, 2017, and embarked on the “Senko Innovation
Plan 2021 (SIP21)” five-year medium-term business plan.
The following provides an outline of our main activities in the nine-month period.
In Japan, in order to forge ahead with efforts to further expand our marine shipping business, we added NIPPON MARINE CO., LTD.
which engages in marine transport for the JX Nippon Mining & Metals Group, as well as with EIKICHI KAIUN CO., LTD., to the Senko
Group in April. We also added Kanto region cargo truck carrier ANZEN YUSO CO., LTD., based in Kanagawa Prefecture in October inorder to boost the use of the Group’s own trucks and expand its operations.
Regarding distribution centers, in April we commenced operations of the Yokkaichi No. 2 PD Center (Yokkaichi City, Mie Prefecture) withthe aim of fortifying our logistics functions in the Chubu region, and in July we commenced operations of our New Komaki PD Center(Oguchi town, Aichi Prefecture). In December, we commenced operations of Hiroshima PD Center (Hiroshima City, Hiroshima Prefecture)and fortified our logistics functions in the Chugoku region.
Also, in the East Japan region, in order to expand business of major drug stores-related logistics, in June we commenced operations ofRanzan Logistics Center (Ranzan Town, Saitama Prefecture), in September Aomori Logistics Center (Goshogawara City, AomoriPrefecture), our first logistics facility located in Aomori Prefecture, and Shin Fuji PD Center (Fuji City, Shizuoka Prefecture) in October.
Outside Japan, Singapore-based Skylift Consolidator (Pte) Ltd., which engages in the business of international air and marine transportand other such operations, became a Group company in April and we have been continuing to upgrade our logistics network andstrengthen our business infrastructure.
Also, our overseas subsidiary in Vietnam launched full-scale forwarding business operations in May serving Japanese companies
situated in the suburbs of Ho Chi Minh City, in October we commenced operations of the NH-SENKO Logistics Center, which is oursecond such facility in South Korea’s Busan New Port.
In the trading & commerce business segment, SMILE CORP. established an overseas subsidiary in Vietnam in April, and OKUMURA
CO., LTD., a company that manufactures and sells slippers, was brought into the Group in September. We have made the manufacturing
enterprise part of Group with the aims of improving our product development strengths and bolstering our price competitiveness.
Moreover we added companies to the Group with the aim of expanding our areas of business, including Aya Construction Co., Ltd., acompany located in Miyazaki Prefecture which operates in the construction business and other businesses in July, fitness club operator
BLUE EARTH Co., Ltd. in September, with the aim of bolstering our nursing care, medical and health-related businesses, and in October,
VENUS CO., LTD., a company which operates services for seniors to prevent the need for long-term care.
Meanwhile, the Senko Group has been actively promoting a modal shift to reduce the environmental impact and resolve the shortage ofdrivers. In June, recognized for our initiatives including switching from the previous use of trucks to the use of railroads and marine
vessels for long-distance transport of apparel, housing, food and other items, we received the Logistics Environment Special Award at the18th Logistics Environment Awards Ceremony, and in November, we received the Award for Excellent Business Entities Working on
Modal Shift of the Fiscal 2017 from the Japan Association for Logistics and Transport. In September, Japan’s Ministry of Land,
Infrastructure and Transport (MLIT) recognized our two new initiatives geared to achieving shifts to new modes of transport by certifying
them as comprehensive and efficient logistics plans based on the Act of Logistics Integration and Efficiency.

2

The nine-month-period performance was as follows.
(Unit: Millions of yen)

Operating revenue
Operating profit
Ordinary profit
Profit attributable to owners ofparent

Nine months ended
December 31, 2016343,759

Nine months ended
December 31, 2017
373,008

14,271
14,435
7,641

Change%29,2488.5

13,346
13,466(925)
(969)

(6.5)
(6.7)

7,435

(205)

(2.7)

Consolidated operating revenue of the Senko Group increased 8.5% year on year to ¥373,008 million. This result mainly reflected theaggressive expansion of sales and the contribution of NIPPON MARINE CO., LTD., ANZEN YUSO CO., LTD. and another entity, whichwere made consolidated subsidiaries of the Company.
On the profit front, despite factors buoying profits brought about by sales expansion and moves to make NIPPON MARINE CO., LTD.,ANZEN YUSO CO., LTD. and another entity consolidated subsidiaries, consolidated operating profit decreased to ¥13,346 million, down
6.5% year on year, consolidated ordinary profit decreased to ¥13,466 million, down 6.7% year on year, and profit attributable to owners ofparent decreased to ¥7,435 million, down 2.7% year on year. The downturn in profits was largely attributable to factors that include adecline in freight volumes from existing customers, rises in expenses for hiring vehicles and other outsourcing costs and in fuel prices andhigher costs due to actuarial differences in accounting for retirement benefit obligations.
The nine-month-period operating revenue by segment was as follows.
Logistics
Operating revenue grew 9.0% year on year to ¥261,969 million in this segment. This was mainly attributable to higher revenues
generated through the consolidation of NIPPON MARINE CO., LTD., ANZEN YUSO CO., LTD. and another entity, increased operations
due to the opening of large facilities in the previous fiscal year and expanded sales in relation to retailers and mass merchandisers, suchas major drug stores.
Trading & commerce
Operating revenue grew 6.1% year on year to ¥106,161 million in this segment. This was mainly attributable to higher revenues due toincreasing fuel sales prices along with expansion of sales to new customers and the consolidation of OKUMURA CO., LTD.
OthersOperating revenue rose 40.2% year on year to ¥4,877 million in this segment. This was mainly attributable to the growth of sales in thecall center business.
(2) Financial condition
Assets, liabilities and net assets
Total assets
Total assets as of December 31, 2017 were ¥327,217 million, ¥41,259 million higher than at the end of the previous fiscal year.
Current assets amounted to ¥116,946 million, up ¥8,247 million from the end of the previous fiscal year. This mainly reflected increases of¥13,501 million in notes and operating accounts receivable and ¥625 million in merchandise and finished goods, despite a decrease of¥7,334 million in cash and deposits.
Non-current assets totaled ¥210,206 million, up ¥33,031 million from the end of the previous fiscal year. This was primarily due toincreases of ¥23,184 million in property, plant and equipment, ¥1,635 million in intangible assets and ¥8,210 million in investments andother assets due to effects of M&As and new capital expenditure, despite a decreasing factor as a result of transfers of three logistics
centers to the private REIT.
Liabilities
Liabilities as of December 31, 2017 increased ¥32,684 million from the end of the previous fiscal year to ¥204,552 million.
Current liabilities totaled ¥100,128 million, up ¥6,213 million from the end of the previous fiscal year. This was mainly due to an increaseof ¥7,328 million in notes and operating accounts payable - trade.
Non-current liabilities totaled ¥104,424 million, up ¥26,471 million from the end of the previous fiscal year. This was primarily due toincreases of ¥10,168 million in bonds payable and ¥14,861 million in long-term loans payable.
Net assets
Net assets as of December 31, 2017 rose ¥8,575 million from the end of the previous fiscal year to ¥122,665 million. This was mainly
attributable to increases of ¥4,245 million in retained earnings and ¥2,853 million in non-controlling interests. The equity ratio as ofDecember 31, 2017 decreased by 2.7 percentage points to 32.4% from the end of the previous fiscal year.

3(3) Forecast for the full-term of the fiscal year ending March 31, 2018
No revisions have been made to the forecast of consolidated operating results for the fiscal year ending March 31, 2018, announced in“Summary of Financial Statements for the Fiscal Year Ended March 31, 2017” on May 11, 2017.

4

2.

Consolidated Financial Statements(1) Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2017

As of December 31, 2017

AssetsCurrent assets
Cash and deposits

27,162

19,828Notes and operating accounts receivable

61,97575,477

Merchandise and finished goods

7,006

7,632

Work in process

305

498

Raw materials and supplies

292

487

11,97813,037(21)(14)

108,699

116,946

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

53,42049,518Land

56,70058,682Other, net

19,99345,097

Total property, plant and equipment

130,114

153,298

Goodwill

5,617

6,662

Other

4,086

4,677

Total intangible assets

9,704

11,340Investment securities

16,45222,807

Net defined benefit asset

2,359

2,987

Guarantee deposits

11,197

11,836

Deferred tax assets

2,050

1,970

Other

6,322

7,129

Allowance for doubtful accounts(1,025)(1,162)

Total investments and other assets

37,35745,568177,175

210,206

Business commencement expenses

8363

Total deferred assets

8363

285,958

327,217

Intangible assets

Investments and other assets

Total non-current assets
Deferred assets

Total assets

5

(Unit: Millions of Yen)
As of March 31, 2017

As of December 31, 2017

Liabilities
Current liabilities
Notes and operating accounts payable−trade33,731

41,060Electronically recorded obligations−operating

6,773

7,813

Current portion of bonds–

48

Short-term loans payable

25,631

21,227

Income taxes payable

3,916

2,458

Provision for bonuses

4,228

2,754

Provision for directors’ bonuses

210

221

Provision for loss on disaster

96

–

Other

19,327

24,543

Total current liabilities

93,914

100,128Bonds payable

7,000

17,168

Convertible bond-type bonds with subscription rights
to shares

10,04910,042Long-term loans payable

42,48357,345

Provision for directors’ retirement benefits

276

152

Provision for special repairs

37

81

Net defined benefit liability

7,087

7,032

Asset retirement obligations

817

831

Other

10,20011,769Total non-current liabilities

77,953

104,424

171,868

204,552

Capital stock

26,52826,528

Capital surplus

25,411

25,398Retained earnings

48,65452,900Treasury shares

(657)

(589)

99,937104,237

1,391

2,073

112250283(1,293)

(574)

350

1,794

396

373

Non-controlling interests

13,406

16,259Total net assets

114,090122,665

285,958

327,217

Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares

Total liabilities and net assets

6(2) Consolidated statements of (comprehensive) income(Consolidated statements of income)(For the nine months ended December 31, 2016 and 2017)(Unit: Millions of Yen)
Nine months ended
December 31, 2016

Nine months ended
December 31, 2017

(April 1, 2016–December 31, 2016)(April 1, 2017–December 31, 2017)

Operating revenue

343,759

373,008

Operating cost

305,328

333,647

Operating gross profit

38,43139,361

Selling, general and administrative expenses

24,15926,014

Operating profit

14,271

13,346

Interest income

7674

Dividend income

121132Other986

1,198

1,183

1,405Interest expenses

710

730

Other

309

555

1,020

1,286

14,435

13,466212369

Delinquency charges–

157

Subsidy income–88

Gain on sales of investment securities

–

66

212

682

Loss on office withdrawal–

311

Loss on retirement of non-current assets

60

117

Loss on reduction of non-current assets–

101

Expenses related to commemorative works forcentennial anniversary

306–

Loss on disaster

128–

Litigation expenses

38–

Total extraordinary losses

534

529

Profit before income taxes

14,113

13,619

Income taxes−current

3,690

3,649

Income taxes−deferred

1,195

920

Total income taxes

4,885

4,570

Profit

9,228

9,049

Profit attributable to non-controlling interests

1,587

1,613

Profit attributable to owners of parent

7,641

7,435

Non-operating income

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets

Total extraordinary income
Extraordinary losses

7

(Consolidated statements of comprehensive income)(For the nine months ended December 31, 2016 and 2017)(Unit: Millions of Yen)
Nine months endedDecember 31, 2016

Nine months ended
December 31, 2017

(April 1, 2016–December 31, 2016)(April 1, 2017–December 31, 2017)

Profit

9,228

9,049

Valuation difference on available-for-sale securities

413

738

Deferred gains or losses on hedges

191

10

Other comprehensive income

Foreign currency translation adjustment

(504)

39

Remeasurements of defined benefit plans, net of tax

245

724

Total other comprehensive income

346

1,513

9,574

10,562Comprehensive income attributable to owners ofparent

7,991

8,879

Comprehensive income attributable tonon-controlling interests

1,583

1,682

Comprehensive income
Comprehensive income attributable to8