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 First Quarter of the Fiscal Year Ending March 31, 2020
[Japan GAAP]

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

August 9, 2019
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 and Representative Director
Name: Yasuhisa Fukuda
Title: Executive Officer, Responsible for PR & IRName: Satoru Kokubo
Tel. (06) 6440-5156

Scheduled Date of Issue of Quarterly Financial Report:
Quarterly Supplemental Information Materials:
Scheduled Date of Quarterly Information Meeting:

August 14, 2019

Scheduled Date of Dividend Paid: –Yes
None
(Amounts less than ¥1 million have been rounded down)

1. Consolidated Operating Results for the Three Months Ended June 30, 2019(1) Consolidated Operating Results (Cumulative)
Operating revenue
Million yen
137,121
129,365

Three months ended June 30, 2019
Three months ended June 30, 2018%6.08.2(Percentage figures represent year-on-year changes)
Profit attributable toOperating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
4,995
6.3
4,985
2.7
3,142
7.6
4,697
22.6
4,856
22.8
2,919
53.6

(Note) Comprehensive income
Three months ended June 30, 2019: ¥3,115 million (–2.0%)
Profitper share

Three months ended June 30, 2018: ¥3,178 million (6.2%)
Diluted profit
per share

Yen
20.69
19.21

Yen
19.19
17.82

Total assets
Million yen
342,533
340,491

Net assets
Million yen
127,746
126,895

Three months ended June 30, 2019
Three months ended June 30, 2018
(2) Consolidated Financial Position

As of June 30, 2019
As of March 31, 2019
(Reference) Equity:
As of June 30, 2019: ¥119,908 million

Equity ratio
%
35.0
35.0

Net assets per share
Yen
789.61785.08

As of March 31, 2019: ¥119,204 million

2. Dividends
June 30

September 30
Yen
13.00

Yen
Fiscal year ended March 31, 2019–
Fiscal year ending March 31, 2020–
Fiscal year ending March 31, 2020
13.00
(Forecast)(Note) Change in the estimation of dividend for the fiscal year in this period: None

Annual dividend
December 31
Yen––March 31

TotalYen
13.00

Yen
26.00

13.00

26.00

3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2020 (From April 1, 2019 to March 31, 2020)
Operating revenue
Million yen%First half ending September 30, 2019
276,000
6.0
Fiscal year ending March 31, 2020
560,000
5.7(Note) Change in the forecast made in this period: None

Operating profit
Million yen
9,400
20,900%
3.2
6.5(Percentage figures represent year-on-year changes)
Profit attributable toProfit
Ordinary profitowners of parentper shareMillion yen% Million yen%
Yen
9,400
0.3
5,600(0.3)
36.88
21,0005.7
12,2004.4
80.35

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: Yes(d) Retrospective restatement: None
(4) Shares outstanding (Common shares)(a) Shares outstanding (including treasury shares)
As of June 30, 2019:

152,861,921 shares

As of March 31, 2019:

152,861,921 shares

1,003,460 shares

As of March 31, 2019:

1,024,460 shares(b) Treasury shares
As of June 30, 2019:(c) Average number of shares (Cumulative)
Three months ended June 30, 2019:

151,858,230 shares

Three months ended June 30, 2018:

151,980,565 shares(Note) Starting with the third quarter of the fiscal year ended March 31, 2018, the number of treasury shares at term-end includes Senkoshares owned by the trust accounts of Performance-linked Stock Compensation Plan for Employees (as of June 30, 2019: 351,500
shares; as of March 31, 2019: 351,500 shares) and Performance-linked Stock Compensation Plan for Directors (as of June 30,2019: 353,000 shares; as of March 31, 2019: 353,000 shares).
Quarterly financial results reports are exempt from quarterly reviews conducted by certified public accountants or an audit corporation.
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 six-month period and the full-term of the fiscal year ending March 31, 2020” on page 3.
 The supplementary material on quarterly earnings will be available on the Company’s website.

Index to accompanying materials

1. Results of Operations and Financial Condition ......................................................................................................................................... 2(1) Results of operations ......................................................................................................................................................................... 2(2) Financial condition ............................................................................................................................................................................. 3(3) Forecast for the six-month period and the full-term of the fiscal year ending March 31, 2020 ......................................................... 3
2. Consolidated Financial Statements ........................................................................................................................................................... 4(1) Consolidated balance sheets .............................................................................................................................................................. 4(2) Consolidated statements of (comprehensive) income ....................................................................................................................... 6
Consolidated statements of income
For the three months ended June 30, 2018 and 2019.................................................................................................................... 6Consolidated statements of comprehensive income
For the three months ended June 30, 2018 and 2019.................................................................................................................... 71

1.

Results of Operations and Financial Condition(1) Results of operations
In the three-month period of the fiscal year ending March 31, 2020 (April 1, 2019 to June 30, 2019), the employment and income
environment in the Japanese economy continued to improve, but the outlook remains unclear due to factors such as concerns over aslowdown in overseas economies as a result of trade friction between the United States and China.
The three-month-period performance was as follows.
(Unit: Millions of Yen)

Operating revenue
Operating profitOrdinary profit
Profit attributable to owners ofparent

Three months ended
June 30, 2018
129,365

Three months ended
June 30, 2019
137,121

4,697
4,856
2,919

Change%
7,756

6.0

4,995
4,985

298
129

6.3
2.7

3,142

222

7.6

Consolidated operating revenue for the three-month period ended June 30, 2019 of the current fiscal year increased ¥7,756 million
year on year to ¥137,121 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 factors that include higher costs largely stemming from rises in outsourcing costs, consolidated
operating profit increased ¥298 million year on year to ¥4,995 million and consolidated ordinary profit increased ¥129 million year onyear to ¥4,985 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 ¥3,142 million, up ¥222 million year on year.
The three-month-period operating revenue by segment was as follows.
Logistics(Unit: Millions of Yen)

Operating revenue
Segment income

Three months ended
June 30, 2018
91,101Three months ended
June 30, 2019
96,390

3,854

4,290

Change%
5,289

5.8

436

11.3

Operating revenue increased ¥5,289 million year on year to ¥96,390 million and segment income rose ¥436 million year on year to¥4,290 million. This was mainly attributable to the effects of opening logistic centers in the previous fiscal year and opening the InzaiLogistics Center that commenced operations in May of this fiscal year, expanding sales and revising the freight charges, and making
seven overseas Group companies into consolidated subsidiaries.
Trading & commerce(Unit: Millions of Yen)

Operating revenue
Segment income

Three months ended
June 30, 201835,472Three months ended
June 30, 201936,662675

473

Change%1,190

3.4(202)(30.0)

Operating revenue increased ¥1,190 million year on year to ¥36,662 million and segment income fell ¥202 million year on year to ¥473
million. Although sales of household paper products for large-scale mass-merchandiser groups and sales of chemical products andapparel in the international trade business grew, there were higher costs largely stemming from rises in outsourcing costs.
Others(Unit: Millions of Yen)

Operating revenue
Segment income

Three months ended
June 30, 2018
2,791

Three months ended
June 30, 2019
4,067

231

395

Change%
1,276

45.7

164

70.9

Operating revenue increased ¥1,276 million year on year to ¥4,067 million and segment income increased ¥164 million year on year to¥395 million. This was mainly attributable to making Ueno Shoji Co., Ltd., which manages the food and drink business, a consolidated
subsidiary, and opening new nursing care and fitness locations.

2(2) Financial condition
Assets, liabilities and net assets
Total assets
Total assets as of June 30, 2019 were ¥342,533 million, ¥2,042 million higher than at the end of the previous fiscal year.
Current assets amounted to ¥119,203 million, up ¥1,939 million from the end of the previous fiscal year. This mainly reflected anincrease of ¥2,155 million in other current assets.
Non-current assets totaled ¥223,305 million, up ¥109 million from the end of the previous fiscal year. This was primarily due toincreases of ¥2,293 million in property, plant and equipment and ¥1,775 million in intangible assets, despite a decrease of ¥3,959
million in total investments and other assets.
Liabilities
Liabilities as of June 30, 2019 increased ¥1,191 million from the end of the previous fiscal year to ¥214,787 million.
Current liabilities totaled ¥98,847 million, up ¥178 million from the end of the previous fiscal year. This was mainly due to an increase of¥4,393 million in short-term borrowings, despite a decrease of ¥3,386 million in income taxes payable.
Non-current liabilities totaled ¥115,939 million, up ¥1,013 million from the end of the previous fiscal year. This was primarily due to anincrease of ¥1,200 million in long-term lease obligations.
Net assets
Net assets as of June 30, 2019 rose ¥851 million from the end of the previous fiscal year to ¥127,746 million. This was mainly
attributable to an increase of ¥890 million in retained earnings. The equity ratio as of June 30, 2019 was 35.0%.
(3) Forecast for the six-month period and the full-term of the fiscal year ending March 31, 2020
No revisions have been made to the forecast of consolidated operating results for the first half ending September 30, 2019 and thefiscal year ending March 31, 2020, announced in “Summary of Financial Statements for the Fiscal Year Ended March 31, 2019” on May
10, 2019.

3

2.

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

As of June 30, 2019

AssetsCurrent assets
Cash and deposits

25,232

24,425Trade notes and accounts receivable

71,311

71,021

Electronically recorded monetary claims - operating

1,785

2,433

Merchandise and finished goods

8,513

8,580

Work in process

670

829

Raw materials and supplies

583

604

9,181

11,336(14)(28)

117,263

119,203

Buildings and structures, net

64,64564,721Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Land

59,66959,762Other, net

37,89940,024

Total property, plant and equipment

162,214

164,507

Intangible assets
Goodwill7,446

8,262

Other

4,576

5,535

Total intangible assets

12,022

13,798Investments and other assets
Investment securities

20,26018,153Long-term loans receivable

3,888

3,045

Retirement benefit asset

3,088

3,235

Guarantee deposits

13,271

12,991

Deferred tax assets

5,138

4,312

Other

4,019

3,967

Allowance for doubtful accounts

(709)

(708)

Total investments and other assets

48,95844,999223,195

223,305

Business commencement expenses

32

25

Total deferred assets

3225

340,491

342,533

Total non-current assets
Deferred assets

Total assets4(Unit: Millions of Yen)
As of March 31, 2019

As of June 30, 2019

Liabilities
Current liabilities
Trade notes and accounts payable

37,60337,154

Electronically recorded obligations - operating

7,047

7,142

48

48

Short-term borrowings

21,58025,974

Lease obligations

3,181

3,385

Income taxes payable

4,242

855

Provision for bonuses

5,253

3,106

347

94

Current portion of bonds

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

103

42

Other

19,261

21,042

Total current liabilities

98,66998,847

Non-current liabilities
Bonds payable

17,12017,096

Convertible bond-type bonds with share acquisitionrights

10,02910,027Long-term borrowings

64,69664,330

Lease obligations

10,50011,700

Provision for retirement benefits for directors (andother officers)

180

181

Provision for special repairs

80

98

Provision for share-based remuneration

124

124

Retirement benefit liability

6,970

6,745

Asset retirement obligations

1,011

1,164

Other

4,212

4,470

114,926

115,939

213,595

214,787

Share capital

26,52826,528

Capital surplus

29,841

29,816

Retained earnings

62,98363,874Treasury shares

(697)

(690)

118,656

119,529

1,350

1,028

Deferred gains or losses on hedges

(3)

(38)

Foreign currency translation adjustment

122

265

Remeasurements of defined benefit plans

(920)

(876)

Total accumulated other comprehensive income

548

379

Share acquisition rights

424

416

Non-controlling interests

7,265

7,421

126,895

127,746

340,491

342,533

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

5(2) Consolidated statements of (comprehensive) income(Consolidated statements of income)(For the three months ended June 30, 2018 and 2019)(Unit: Millions of Yen)
Three months ended
June 30, 2018

Three months ended
June 30, 2019

(April 1, 2018–June 30, 2018)(April 1, 2019–June 30, 2019)

Operating revenue

129,365

137,121

Operating cost

114,861

121,108

Operating gross profit

14,50316,012

Selling, general and administrative expenses

9,806

11,017

Operating profit

4,697

4,995

Interest income

2835

Dividend income

78

71

Other

473

437

Total non-operating income

580

544

Interest expenses

273

275

Other

148

279

Total non-operating expenses

421

554

4,856

4,985

Gain on extinguishment of tie-in shares–

51

Insurance claim income–

32

Subsidy income

187–

Reversal of allowance for doubtful accounts for
subsidiaries and associates

46–

Gain on sales of non-current assets

37–

Total extraordinary income

271

83

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Litigation settlement–55

Loss on tax purpose reduction entry of non-current
assets

187–

Loss on retirement of non-current assets

35–

Total extraordinary losses

22255

4,905

5,014

Income taxes - current

749

705

Income taxes - deferred

1,140

1,024

Total income taxes

1,890

1,730

Profit

3,015

3,283

95

141

2,919

3,142

Profit before income taxes

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

6

(Consolidated statements of comprehensive income)(For the three months ended June 30, 2018 and 2019)(Unit: Millions of Yen)
Three months ended
June 30, 2018Three months ended
June 30, 2019

(April 1, 2018–June 30, 2018)(April 1, 2019–June 30, 2019)

Profit

3,015

3,283

Valuation difference on available-for-sale securities

102

(340)

Deferred gains or losses on hedges

52

(38)

Other comprehensive income

Foreign currency translation adjustment

(86)

166

Remeasurements of defined benefit plans, net of tax

95

44

Total other comprehensive income

163

(168)

3,178

3,115

3,084

2,931

93

184

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable tonon-controlling interests7