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 Third Quarter of the Fiscal Year Ending March 31, 2015
[Japanese GAAP]
January 30, 2015
Name of Listed Company: SENKO Co., Ltd.
Stock Listed on: The First Section of the Tokyo Stock Exchange
Code Number:
9069
URL http://www.senko.co.jp/en/
Representative:
Title: President
Name: Yasuhisa Fukuda
Inquiries:
Title: Executive Officer, Public Relations
Name: Noburoh Sasaki
Tel. (06) 6440-5155
Scheduled Date of Issue of Financial Report:
February 12, 2015
Scheduled Date of Dividend Paid: —Supplemental Information Materials:
None
Scheduled Date of Quarterly Information Meeting:None
1. Consolidated Operating Results for the Nine Months Ended December 31, 2014
(1) Consolidated Operating Results

Nine months ended December 31, 2014
Nine months ended December 31, 2013
(Note) Comprehensive income

Operating revenues
Million yen%
295,28122.3
241,354
8.9

Note: Amounts less than ¥1 million have been rounded down.
Operating income
Ordinary income
Net income
Million yen%
Million yen%
Million yen%
10,455
11.2
10,093
15.4
5,630
1.9
9,404
15.5
8,747
6.0
5,527
17.9

Nine months ended December 31, 2014: ¥7,245 million (17.5%)
Nine months ended December 31, 2013: ¥6,166 million (32.6%)
Net income
per share

Diluted net income
per share
Yen
37.54
36.89

Yen
44.52
Nine months ended December 31, 201444.15
Nine months ended December 31, 2013
(Note) The figures for consolidated operating results (cumulative) for the six months ended
September 30, 2013 are after the retrospective application of the changes toaccounting principles following the revision of accounting standards.
(2) Consolidated Financial Position
Total assets
Million yen
283,030
243,570

As of December 31, 2014
As of March 31, 2014
(Reference) Shareholders’ equity:
As of December 31, 2014: ¥74,012 million

Net assets
Million yen
85,67072,302Equity ratio
%
26.1
27.8

Net assets per share
Yen
580.07539.52As of March 31, 2014: ¥67,819 million(Note) The figures for the consolidated financial position for the fiscal year ended March 31, 2014 are after the retrospective application of thechanges to accounting principles following the revision of accounting standards.

2. Dividends
June 30
Yen

September 30
Yen
8.00
8.00

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

Annual dividend
December 31
Yen−March 31

Total
Yen
8.00

Yen
16.00

8.00

16.00

−

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

Million yen
400,000%
19.8(Note) Change in the forecast made in this period: None

Million yen
14,300%18.0(Percentage figures represent year on year changes)
Net income
Ordinary income
Net income
per share
Million yen% Million yen%
Yen
13,500 19.4
7,600 16.9
60.10

Notes(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries associated with change in scope of
consolidation): None
(2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements: None
(3) Changes in accounting principles and estimates, and retrospective restatement(a) Changes due to revision of accounting standards: Yes(b) Changes other than in (a): None(c) Changes in accounting estimates: None(d) Retrospective restatement: None
(4) Shares outstanding (Common shares)(a) Shares outstanding (including treasury stocks)
As of December 31, 2014

130,245,819 shares

As of March 31, 2014

128,989,476 shares

2,653,432 shares

As of March 31, 2014

3,284,287 shares(b) Treasury stock
As of December 31, 2014(c) Average number of shares (quarterly consolidated cumulative period)
Nine months ended December 31, 2014

126,462,317 shares Nine months ended December 31, 2013

125,190,213 shares(Note) Starting with the first quarter of the consolidated fiscal year ending March 31, 2015 (the three months ended June 30, 2014), the number ofshares of treasury stock at term-end includes Senko shares owned by the employee stock ownership plan (ESOP) trust, following revisions toaccounting principles due to the amendment of accounting standards. (As of December 31, 2014: 2,035,000 shares; as of March 31, 2014:
2,680,000 shares.)

Information concerning quarterly review procedure
This quarterly financial report is not subject to the quarterly review procedure prescribed by the Financial Instruments and Exchange Law.
The review procedure prescribed by the Financial Instruments and Exchange Law for the quarterly consolidated financial statements had
not been completed when this quarterly financial report was released.
Cautionary statement regarding forecasts of operating results and special notes
Forward-looking statements in these materials are based on information available to management at the time this report was prepared
and assumptions that management believes are reasonable. Actual results may differ significantly from these statements for a number ofreasons. For information about the assumptions used for forecasts and precautions concerning the use of forecasts, please see“Forecast for the fiscal year ending March 31, 2015” 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 fiscal year ending March 31, 2015 ......................................................................................................................... 4
2．Other Information ...................................................................................................................................................................................... 4(1) Changes in significant subsidiaries..................................................................................................................................................... 4(2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements .............................. 4(3) Changes in accounting principles and estimates, and retrospective restatement ............................................................................ 4
3．Consolidated Financial Statements .......................................................................................................................................................... 5(1) Consolidated balance sheets ............................................................................................................................................................ 5(2) Consolidated statements of (comprehensive) income ..................................................................................................................... 7
Consolidated statements of income
For the nine months ended December 31, 2013 and 2014 ............................................................................................................. 7
Consolidated statements of comprehensive income
For the nine months ended December 31, 2013 and 2014 ............................................................................................................. 81

1.

Results of Operations and Financial Condition(1) Results of operations
In the nine-month period of the fiscal year ending March 31, 2015 (April 1, 2014 to December 31, 2014), the Japanese economy
remained sluggish as consumer spending declined due to the consumption tax rate hike, unfavorable weather, and a climb in prices
caused by depreciation of the yen. Corporate production also slowed because of sluggish domestic demand and weak exports.
In the logistics industry, cargo volumes declined in consumer spending-related goods and construction-related materials, due to thefall in consumer spending and housing investment caused by the consumption tax rate hike. In addition, the industry environment
remained severe because costs increased, due to rising outsourcing expenses caused by a shortage of trucks and drivers, while fuelprices have leveled off for the time being because of a drop in crude oil prices.
In this environment, the Senko Group established a new four-year medium-term business plan that began in the fiscal year ended
March 31, 2014 and is based on the slogan “Moving Global.” The plan has three goals: go beyond logistics, make the world go
round, and revolutionize business. The Group is working to achieve growth in the distribution business and commerce and tradebusiness as well as to foster a greater degree of trust among customers by building a structure for services with high quality andoutstanding cost-performance.
In the first three quarters, the Company took a number of measures to develop the distribution center business, as follows. It added a
new warehouse at the Tawaramoto Distribution Center (Shiki County, Nara Prefecture) in May 2014 to expand distribution operations
for home centers. It established the Moriyama PD Center No. 3 Warehouse (Moriyama City, Shiga Prefecture) in June 2014 toexpand business in the Kyoto/Shiga area. It started operating the Kitakanto PD Center (Ota City, Gunma Prefecture), its first
distribution center with a seismic isolation structure in Gunma Prefecture, in July 2014. In the Chubu area, it completed theconstruction of the Nagoya PD Center No. 2 (Nagoya City, Aichi Prefecture) and started its operation in October 2014.
Furthermore, the Company is constructing new distribution centers in the Tohoku, Kanto and Kansai areas and began building new
distribution centers in Thailand. It is also seeking to establish a delivery network for small cargo, centered on urban areas including the
Kanto, Chubu, Kansai, and Kyushu areas, as part of measures to strengthen the distribution center business.
Meanwhile, there is a growing trend of companies to outsource their distribution operations. The Company obtained an order for
distribution operations in the Kyushu area from a major beverage manufacturer in May 2014 and took over the general cargo
distribution business and customs clearance business in October 2014 from a large gas sales company’s distribution affiliate.
As part of its efforts to explore business opportunities in new markets, in June 2014 the Company acquired 100% ownership ofSankyo Butsuryu Niyaku Co., Ltd. (Kasai County, Hokkaido Prefecture) and Sankyo Logistics Co., Ltd. (the same), two companies thatengage in the distribution of agricultural products in Hokkaido. In addition, the Company welcomed Runtec Corporation (Fukuoka City,
Fukuoka Prefecture) into the Senko Group in October 2014. Runtec operates its constant temperature logistics business (in cold andfreezer storage) nationwide, with more than 1,000 units of cold and freezer storage trucks and constant temperature warehouses withan area of around 20,000 tsubo (approximately 66,000 square meters); its expertise in the constant temperature logistics business isbased on more than 50 years’ experience. The Senko Group will strive to build a business foundation for three-temperature zone
logistics (cold, freezer, and normal temperature storage) by integrating Runtec’s expertise with Senko’s facilities and expertise innormal temperature logistics.
Meanwhile, in April 2014, to secure its financial soundness, the Company established Senko Asset Management Co., Ltd. (Osaka
City, Osaka Prefecture), a company that manages the assets of a real estate investment company (a private REIT). The Company willraise funds for new facilities investment by putting its distribution centers into a private REIT originated by Senko Asset Management
and further promote the growth and expansion of the distribution center business.
The nine-month-period performance was as follows.
(Millions of Yen)
Nine months ended
December 31, 2013
241,354

Nine months ended
December 31, 2014
295,281

Operating income
Ordinary income

9,404
8,747

Net income

5,527

Operating revenues

Change%53,92722.3

10,455
10,093

1,050
1,345

11.2
15.4

5,630

103

1.9

Consolidated operating revenues for the nine-month period ended December 31, 2014 increased to ¥295,281 million, up 22.3% froma year earlier, due to the aggressive expansion of sales and the consolidation of AST CORPORATION and Runtec Corporation
through M&A in 2013 and October 2014, respectively. Consolidated operating income grew to ¥10,455 million, up 11.2%, while
consolidated ordinary income rose to ¥10,093 million, up 15.4%. This reflected positive factors, such as a rise in operating revenues, aprice revision, and M&A, despite cost increases, including the hike in fuel prices and outsourcing costs , together with negative effects
from the depreciation of the yen in the commerce and trade business. Net income increased to ¥5,630 million, up 1.9%.
2

The nine-month-period business segment performance was as follows.
Distribution
In the retail product logistics business, the Company received an order for distribution operations from a major beverage
manufacturer; cargo volume increased for companies in the fashion industry; and the acquisition of Sankyo Butsuryu Niyaku Co., Ltd.,Sankyo Logistics Co., Ltd. and Runtec Corporation had a positive effect on business. In the housing logistics business, the Company
saw cargo volumes decrease due to the effect of the consumption tax rate hike, despite aggressive sales promotion activities. In thechemicals logistics business, there was a positive effect from large-scale capital expenditure, such as an asphalt tanker that was built
in 2013, as well as orders in new operations due to expanded sales. Consequently, operating revenues increased to ¥201,661 million,
up 12.4% from the previous year.
Commerce and trade
In the commerce and trade business, operating revenues increased to ¥90,519 million, up 51.5% from the previous year, due to theimpact of acquiring AST CORPORATION as a consolidated subsidiary and sales growth in the petroleum marketing business.
OthersIn this segment, operating revenues grew to ¥3,100 million, up 36.1% from the previous year, due to a rise in orders received foroutsourced data processing services and the launch of the solar electricity sales business in September 2013.
(2) Financial condition
1) Assets, liabilities and net assets
Total assets
Total assets as of December 31, 2014 were ¥283,030 million, ¥39,459 million higher than at the end of the previous fiscal year.
Current assets amounted to ¥98,357 million, up ¥14,204 million from March 31, 2014. This was due to increases in notes andoperating accounts receivable of ¥12,880 million, merchandise and finished goods of ¥568 million, and raw materials and supplies of¥207 million.
Noncurrent assets totaled ¥184,672 million, up ¥25,255 million from March 31, 2014. This was due to increases in property, plant andequipment of ¥19,957 million, goodwill of ¥1,067 million, and investments and other assets of ¥4,108 million.
Liabilities
Liabilities rose ¥26,092 million from the end of the previous fiscal year to ¥197,360 million.
Current liabilities amounted to ¥96,012 million, up ¥16,671 million from March 31, 2014. This was due to increases in trade notes andoperating accounts payable of ¥5,713 million and short-term loans payable of ¥15,622 million and a decline in current portion of bondsof ¥7,010 million.
Noncurrent liabilities totaled ¥101,347 million, up ¥9,420 million from March 31, 2014. This was due to increases in bonds payable of¥6,990 million, long-term loans payable of ¥1,527 million, and net defined benefit liability of ¥1,907 million.
Net assets
Net assets expanded by ¥13,367 million from the end of the previous fiscal year to ¥85,670 million. This reflected increases in capitalstock and capital surplus of ¥247 million each due to the conversion of convertible bond-type bonds with subscription rights tocommon shares, while retained earnings and minority interests grew by ¥4,203 million and ¥7,122 million, respectively. The equity
ratio decreased by 1.7 percentage points from the end of the previous fiscal year to 26.1%.

3

(3) Forecast for the fiscal year ending March 31, 2015
The Japanese economy is expected to see a mild recovery in consumer spending and a pickup in corporate production reflecting acontinuing improvement trend in employment and income.
Although the logistics industry is also likely to see a recovery in cargo volumes thanks to the above-mentioned developments, theindustry continues to face rising outsourcing expenses caused by a shortage of trucks and drivers.
In this environment, the Senko Group will continue to enhance its competitiveness, improve its profitability and upgrade its operating
system.
Operating results as of December 31, 2014 were generally as planned, and there is no revision to the forecast of operating results forthe fiscal year ending March 2015 announced on October 31, 2014.

2. Other Information(1) Changes in significant subsidiaries
None(2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements
None(3) Changes in accounting principles and estimates, and retrospective restatement(Application of Accounting Standard, etc. for Retirement Benefits)
Starting with the three-month period of the fiscal year ending March 31, 2015, Senko has applied the Accounting Standard for
Retirement Benefits (ASBJ Statement No. 26, May 17, 2012; hereinafter referred to as the “Accounting Standard”) and the Guidanceon Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, May 17, 2012; hereinafter referred to as the “Guidance”)
with regard to the provisions prescribed in the main text of Section 35 of the Accounting Standard and Section 67 of the Guidance. As
a result, the calculation methods of retirement benefit obligations and service costs were reviewed, the period attribution method of the
expected amount of retirement benefits was changed from straight-line attribution to the benefit calculation standard, and the decision
method of the discount rate was changed from a single discount rate to a single weighted average discount rate (equivalence system).
In accordance with the transitional handling prescribed in Section 37 of the Accounting Standard, for the application of the above
Accounting Standard and Guidance, the effect of the changes in the calculation methods of retirement benefit obligations and service
costs was adjusted in retained earnings at the beginning of the nine-month period of the current fiscal year.
As a result, liabilities pertaining to retirement benefits at the beginning of the nine-month period of the fiscal year under review
decreased by ¥823 million and retained earnings increased by ¥530 million. The application of the Accounting Standard andGuidance did not have a material effect on consolidated cumulative profits and losses for the nine-month period of the current fiscal
year.
(Application of Practical Solution on Transactions of Delivering the Company’s Own Stock to Employees, etc. through Trusts)
Starting with the three-month period of the fiscal year ending March 31, 2015, Senko has applied the Practical Solution on
Transactions of Delivering the Company’s Own Stock to Employees, etc. through Trusts (ASBJ Practical Issues Task Force No. 30,
December 25, 2013; hereinafter referred to as the “Practical Solution”). The disposal difference was acknowledged at the time ofdisposal of the Company’s treasury stock to the trust, and the profit/loss on the sale of shares sold from the trust to the Senko Group
Employees’ Stockholding, the dividend from Senko with respect to the shares owned by the trust, and the net amount of the costs
related to the trust have been recorded in liabilities. The said change in accounting principles has been applied retrospectively, with
the quarterly consolidated financial statements and consolidated financial statements for the three-month period of the previous fiscal
year and the previous consolidated fiscal year based on retrospective application.
As a result, advances paid and deposits as of the end of the previous consolidated fiscal year decreased by ¥23 million, respectively,
treasury stock decreased by ¥440 million, and capital surplus increased by ¥440 million compared to the period before the Practical
Solution was retrospectively applied.

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

As of December 31, 2014

AssetsCurrent assets
Cash and deposits*17,767*17,953

Notes and accounts receivable

51,76464,645Merchandise

6,076

6,644

Real estate for sale

3

3Work in process

214

307

Supplies

209

417

Other

8,167

8,445

(50)

(60)

84,153

98,357

Buildings and structures (net)*60,139*68,829Land*56,092*66,381

Other (net)*12,225*13,204

Total property, plant and equipment

128,457

148,415

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

Intangible assets
Goodwill

3,178

4,245

Other

3,440

3,562

Total intangible assets

6,619

7,808

Investments and other assets
Guarantee deposits

9,559

10,309Deferred tax assets

4,234

3,443

Other

11,104

15,354

Allowance for doubtful accounts

(557)

(658)

Total investments and other assets

24,33928,448

159,416

184,672

243,570

283,030

Total noncurrent assets
Total assets

5

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

As of December 31, 2014

Liabilities
Current liabilities
Notes and operating accounts payable-trade36,60342,316

Current portion of bonds

7,040

30

Short-term loans payable*16,345*31,968

Income taxes payable

2,766

1,416

Provision for bonuses

3,342

2,003

163

126

Other

13,08018,151

Total current liabilities

79,34096,012

Bonds payable

5,020

12,010Convertible bond-type bonds with subscription rights

12,031

11,531Long-term loans payable*57,598*59,126

Provision for directors’ bonuses

Noncurrent liabilities

Provision for directors’ retirement benefits

187

358

Net defined benefit liability

6,804

8,711

Provision for special repairs

42

29

Asset retirement obligations

440

573

Other

9,802

9,007

Total noncurrent assets

91,927

101,347

171,267

197,360

Capital stock

20,521

20,768

Capital surplus

19,337

19,584Retained earnings

31,06435,268Treasury stock(1,532)(1,220)Total shareholders’ equity

69,39074,401738

1,445

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation differences on available-for-sale securities
Deferred gains or losses on hedges

(9)

62

Foreign currency translation adjustment

230

378

Recalculation of defined benefit plans(2,530)(2,276)

Total accumulated other comprehensive income(1,570)

(389)

235

288

Minority interests

4,247

11,369Total net assets

72,302

85,670243,570

283,030

Subscription rights to shares

Liabilities and net assets

6

(2) Consolidated statements of (comprehensive) income(Consolidated statements of income)(For the nine months ended December 31, 2012 and 2013)(Unit: Millions of Yen)
Nine months ended
December 31, 2013

Nine months ended
December 31, 2014

(April 1, 2013–December 31, 2013)(April 1, 2014–December 31, 2014)

Operating revenues

241,354295,281

Cost of sales

215,902

264,755

Gross profit

25,45230,525

Selling, general and administrative expenses

16,047

20,069Operating income

9,404

10,455Interest income

120

133

Dividend income

89

110

Other

393

557

Total non-operating income

603

802

Interest expenses

931

912

Other

329

252

1,260

1,164

8,747

10,093Gain on sales of noncurrent assets

151

47

Gain on sales of investment securities

549−

Gain on revision of retirement benefit plan

239−

Insurance income

32−

Total extraordinary income

973

47

Compensation for damage−

99

Litigation settlement−98

Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary loss

Loss on retirement of noncurrent assets

136

85

Loss on business withdrawal−

41

Loss on sales of noncurrent assets−

33

Loss on valuation of investments in capital of subsidiaries andaffiliates

104−

Loss on cancellation of lease contracts

64−

Soil improvement cost

61−

Provision of allowance for doubtful accounts for subsidiaries andaffiliates

22−

Total extraordinary loss

389

357

Income before income taxes

9,331

9,782

Income taxes−current

2,355

2,160

Income taxes−deferred

1,330

1,564

Total income taxes

3,686

3,725

Income before minority interests

5,644

6,057

Minority interest in income or loss

117

426

5,527

5,630

Net income7

(Consolidated statements of comprehensive income)(For the nine months ended December 31, 2013 and 2014)(Unit: Millions of Yen)

Income before minority interests

Nine months ended
December 31, 2013

Nine months ended
December 31, 2014

(April 1, 2013–December 31, 2013)(April 1, 2014–December 31, 2014)

5,644

6,057

Valuation difference on available-for-sale securities

284

798

Deferred gains or losses on hedges

85

78

Foreign currency translation adjustment

152

42

Recalculation of defined benefit plans−

268

Total other comprehensive income

521

1,187

6,166

7,245

5,963

6,715

203

530

Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests8