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, 2022
[Japan GAAP]
Name of Listed Company:
Code Number:
Representative:
Inquiries:

February 9, 2022
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. (03) 6862-8842

Scheduled Date of Issue of Quarterly Financial Report: February 14, 2022
Yes
Quarterly Supplemental Information Materials:
None
Quarterly Information Meeting:

Scheduled Date of Dividend Paid: –(Amounts less than ¥1 million have been rounded down)
1. Consolidated Operating Results for the Nine Months Ended December 31, 2021
(1) Consolidated Operating Results (Cumulative)
Operating revenue
Nine months ended December 31, 2021
Nine months ended December 31, 2020

Million yen465,449
424,603%9.6(0.7)(Percentage figures represent year-on-year changes)
Profit attributable toOperating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
20,35617.0
21,04019.1
12,656
9.1
17,4001.3
17,663
2.5
11,605
6.7(Note) Comprehensive income
Nine months ended December 31, 2021: ¥13,254 million (9.3%)
Profitper share
Nine months ended December 31, 2021
Nine months ended December 31, 2020

Nine months ended December 31, 2020: ¥12,126 million (6.3%)
Diluted profit
per share

Yen
86.36
76.32

Yen71.6870.84(2) Consolidated Financial Position
Total assets
Million yen
460,559
436,066

As of December 31, 2021
As of March 31, 2021
(Reference) Equity:
As of December 31, 2021: ¥139,041 million

Net assets
Million yen
151,377
146,120

Equity ratio

%
30.2
30.9

Net assets per shareYen
959.38909.55

As of March 31, 2021: ¥134,783 million(Note) During the second quarter ended September 30, 2021, the Company finalized the provisional accounting treatment for businesscombinations. As a result, figures for the fiscal year ended March 31, 2021 reflect the finalization of the provisional accounting treatment.
2. Dividends
June 30

Yen––

September 30
Yen
13.00
17.00

Fiscal year ended March 31, 2021
Fiscal year ending March 31, 2022
Fiscal year ending March 31, 2022
(Forecast)(Note) Change in the estimation of dividend for the fiscal year in this period: None

Annual dividend
December 31
Yen––March 31

Yen
15.00
15.00

Total

Yen
28.00
32.00

3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2022 (From April 1, 2021 to March 31, 2022)
Operating revenue

Operating profitMillion yen
625,000

Million yen
25,200%
9.2

Fiscal year ending March 31, 2022
(Note) Change in the forecast made in this period: None%
17.1(Percentage figures represent year-on-year changes)
Profit attributable toProfit
Ordinary profit
owners of parent
per share
Million yen% Million yen%
Yen
25,600 15.2
14,8003.9
100.98

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: 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 shares)
As of December 31, 2021:

152,952,221 shares

As of March 31, 2021:

152,952,221 shares

8,023,589 shares

As of March 31, 2021:

4,764,111 shares(b) Treasury shares
As of December 31, 2021:(c) Average number of shares (Cumulative)
Nine months ended December 31, 2021: 146,554,033 shares

Nine months ended December 31, 2020:

152,064,112 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 December 31, 2021:
338,276 shares; as of March 31, 2021: 341,740 shares) and Performance-linked Stock Compensation Plan for Directors (as ofDecember 31, 2021: 338,607 shares; as of March 31, 2021: 348,873 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 andassumptions 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, 2022” 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 full-term of the fiscal year ending March 31, 2022................................................................................................... 3
2. Consolidated Financial Statements ............................................................................................................................................................. 4(1) Consolidated balance sheets .............................................................................................................................................................. 4(2) Consolidated statements of (comprehensive) income ....................................................................................................................... 6
Consolidated statements of income
For the nine months ended December 31, 2020 and 2021 ............................................................................................................ 6
Consolidated statements of comprehensive income
For the nine months ended December 31, 2020 and 2021 ............................................................................................................ 71

1.

Results of Operations and Financial Condition(1) Results of operations
In the nine-month period of the fiscal year ending March 31, 2022 (April 1, 2021 to December 31, 2021), the economic environment has,
despite a gradual recovery in economic activity after the fifth wave of the novel coronavirus disease (COVID-19) waned, maintained an
uncertain outlook with a resurgence in the spread of infections due to a new variant, and with the added factor of soaring fuel prices.
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, 2020
424,603

Nine months ended
December 31, 2021
465,449

17,40017,663
11,605

Change%40,846

9.6

20,356
21,040

2,956
3,376

17.0
19.1

12,656

1,051

9.1Despite the fact that we were affected primarily by the application of the Accounting Standard for Revenue Recognition in terms ofoperating revenue, and also affected primarily by soaring fuel prices in terms of profit, we made group-wide efforts to expand sales,
improve cost efficiency and enhance productivity, as well as promote M&A, and as a result, consolidated operating revenue,
consolidated operating profit, consolidated ordinary profit, and profit attributable to owners of parent all increased year on year.
The nine-month-period operating revenue by segment was as follows.
Logistics(Unit: Millions of Yen)

Operating revenue
Segment income

Nine months ended
December 31, 2020
290,084

Nine months ended
December 31, 2021
324,00715,702

18,660Change%33,922

11.7

2,958

18.8

Despite the effect of soaring fuel prices, we strived to expand sales, improve cost efficiency and enhance productivity amid an apparent
recovery in cargo volumes, which declined drastically due to the impact of the spread of COVID-19 in the corresponding period of theprevious fiscal year, while reaping the contribution of revenue from M&A. As a result, operating revenue increased ¥33,922 million year
on year to ¥324,007 million, and segment income rose ¥2,958 million year on year to ¥18,660 million.
Trading & commerce(Unit: Millions of Yen)

Operating revenue
Segment income

Nine months ended
December 31, 2020
121,180

Nine months ended
December 31, 2021
114,129

2,412

2,301

Change%(7,051)

(5.8)

(110)

(4.6)

In addition to making household paper wholesale distributor AZFIT CO., Ltd. a consolidated subsidiary in April, we worked on expanding
sales, improving cost efficiency among other initiatives. However, in part as a result of applying the Accounting Standard for Revenue
Recognition and relevant revised ASBJ regulations, and in part due to rising purchase prices in fuel sales, among other factors,
operating revenue decreased by ¥7,051 million year on year to ¥114,129 million and segment income fell ¥110 million year on year to¥2,301 million.
Others(Unit: Millions of Yen)

Operating revenue
Segment income (loss)

Nine months ended
December 31, 2020
13,337

Nine months ended
December 31, 2021
27,312(209)167

Change%13,975104.8377–In addition to making membership-based general wholesale and retail business operator TERAUCHI CO., LTD. a consolidated
subsidiary in January 2021, and working on expanding sales and improving cost efficiency, a recovery in consumer spending from
October to December also contributed to the results. Operating revenue increased by ¥13,975 million year on year to ¥27,312 millionand segment income rose ¥377 million year on year to ¥167 million.

2(2) Financial condition
Assets, liabilities and net assets
Total assetsTotal assets as of December 31, 2021 were ¥460,559 million, ¥24,492 million higher than at the end of the previous fiscal year.
Current assets amounted to ¥169,223 million, up ¥5,332 million from the end of the previous fiscal year. This was mainly due toincreases of ¥12,871 million in trade notes and accounts receivable, and contract assets, ¥1,045 million in electronically recordedmonetary claims - operating, ¥1,048 million in merchandise and finished goods and ¥2,328 million in other current assets, despite adecrease of ¥11,904 million in cash and deposits.
Non-current assets totaled ¥291,335 million, up ¥19,159 million from the end of the previous fiscal year. This was primarily due toincreases of ¥15,791 million in property, plant and equipment and ¥3,819 million in intangible assets.
Liabilities
Liabilities as of December 31, 2021 increased ¥19,235 million from the end of the previous fiscal year to ¥309,181 million.
Current liabilities totaled ¥131,379 million, down ¥2,335 million from the end of the previous fiscal year. This was mainly due todecreases of ¥7,094 million in current portion of bonds payable, ¥3,275 million in income taxes payable and ¥2,460 million in provision
for bonuses, despite increases of ¥7,187 million in trade notes and accounts payable, ¥1,032 million in electronically recorded
obligations - operating and ¥1,331 million in short-term borrowings.
Non-current liabilities totaled ¥177,802 million, up ¥21,571 million from the end of the previous fiscal year. This was mainly attributable toincreases of ¥9,976 million in bonds payable, ¥8,020 million in long-term borrowings, ¥1,519 million in long-term lease obligations and¥2,079 million in other non-current liabilities.
Net assets
Net assets as of December 31, 2021 rose ¥5,256 million from the end of the previous fiscal year to ¥151,377 million. This was primarily
due to increases of ¥7,939 million in retained earnings and ¥1,018 million in non-controlling interests, despite a decrease of ¥3,497
million in purchase of treasury shares. The equity ratio as of December 31, 2021 decreased by 0.7 percentage points to 30.2% from theend of the previous fiscal year.
With regard to the business combination with UACJ Logistics Corporation on December 1, 2020, although provisional accounting
treatment was applied in the fiscal year ended March 31, 2021, the business combination was finalized during the second quarter ended
September 30, 2021. As a result, the financial position is compared and analyzed with that at the end of the previous fiscal year using theamounts after the revision due to the finalization of the provisional accounting treatment.
(3) Forecast for the full-term of the fiscal year ending March 31, 2022
No revisions have been made to the forecast of consolidated operating results for the fiscal year ending March 31, 2022, announced in“Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2022” on November 12, 2021.

3

2.

Consolidated Financial Statements(1) Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2021

As of December 31, 2021

AssetsCurrent assets
Cash and deposits

52,53040,625Trade notes and accounts receivable

82,689–Trade notes and accounts receivable, and contract
assets–95,560Electronically recorded monetary claims - operating

2,519

3,565

Merchandise and finished goods

12,99014,038Work in process

316

170

Raw materials and supplies

651

748

12,221

14,550(28)(35)

163,891

169,223

Buildings and structures, net

80,201

83,248

Land

81,62888,016

Other, net

47,72354,081

Total property, plant and equipment

209,554

225,345

Goodwill

9,979

11,819

Other

8,034

10,014

Total intangible assets

18,014

21,834

17,39817,347Long-term loans receivable

507

258

Retirement benefit asset

5,471

5,954

Guarantee deposits13,086

13,964

Deferred tax assets

4,902

3,656

Other

3,647

3,381

Allowance for doubtful accounts

(407)

(407)

Total investments and other assets

44,60644,155272,175

291,335

Business commencement expenses

00

Total deferred assets

00

436,066

460,559

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

Intangible assets

Investments and other assets
Investment securities

Total non-current assets
Deferred assets

Total assets

4

(Unit: Millions of Yen)
As of March 31, 2021

As of December 31, 2021

Liabilities
Current liabilities
Trade notes and accounts payable

44,383

51,570Electronically recorded obligations - operating

8,586

9,619

Current portion of bonds payable

7,118

24

Current portion of convertible-bond-type bonds withshare acquisition rights

10,00910,002

Short-term borrowings

22,03623,368

Lease obligations

4,253

4,720

Income taxes payable

5,377

2,102

Provision for bonuses

6,247

3,787

Provision for bonuses for directors (and otherofficers)

420

309

Provision for loss on disaster

6825

Other

25,211

25,848

Total current liabilities

133,715

131,379

Bonds payable

30,02440,000Convertible-bond-type bonds with share acquisitionrights22,10822,088Long-term borrowings

74,88782,908

Lease obligations

14,881

16,401

Provision for retirement benefits for directors (andother officers)

260

353

Provision for special repairs

98

156

Provision for share awards

149

164

Retirement benefit liability

7,103

6,868

Asset retirement obligations

869

935

5,847

7,926

156,230

177,802289,946

309,181

Share capital

26,56426,564

Capital surplus

29,806

29,608Retained earnings

81,211

89,150Treasury shares(4,638)(8,135)

Total shareholders’ equity

132,944

137,188

1,759

1,598

32

27

Foreign currency translation adjustment

57

135

Remeasurements of defined benefit plans

(10)

90

1,839

1,852

Share acquisition rights

410

391

Non-controlling interests

10,926

11,944

Total net assets

146,120

151,377

436,066

460,559

Non-current liabilities

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

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

Total accumulated other comprehensive income

Total liabilities and net assets5(2) Consolidated statements of (comprehensive) income(Consolidated statements of income)(For the nine months ended December 31, 2020 and 2021)(Unit: Millions of Yen)
Nine months ended
December 31, 2020
(April 1, 2020–December 31, 2020)

Nine months ended
December 31, 2021
(April 1, 2021–December 31, 2021)

Operating revenue

424,603465,449

Operating costs

371,517

398,717

Operating gross profit

53,08566,731

Selling, general and administrative expenses

35,68546,374

Operating profit

17,40020,3564979

Non-operating income
Interest income
Dividend income

136

159

Other

1,695

1,896

Total non-operating income

1,881

2,136

Non-operating expenses
Interest expenses

870

908

Other

747

543

1,617

1,452

17,66321,040198

248

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

461

82

3,469–

35–

4,164

330

Loss on tax purpose reduction entry of non-current
assets217243

Loss on COVID-19 impact

316

211

Loss on retirement of non-current assets

72124

Loss on disaster–

82,778–Loss on valuation of investment securities

277–

Loss on office withdrawal

60–

Loss on sale of non-current assets

53–

3,776

587

Profit before income taxes

18,052

20,783

Income taxes - current

5,001

5,890

Income taxes - deferred

1,124

1,535

Total income taxes

6,125

7,425

Profit11,926

13,357321

701

11,605

12,656

Gain on bargain purchase
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses

Impairment losses

Total extraordinary losses

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

6

(Consolidated statements of comprehensive income)(For the nine months ended December 31, 2020 and 2021)(Unit: Millions of Yen)
Nine months ended
December 31, 2020
(April 1, 2020–December 31, 2020)
ProfitNine months ended
December 31, 2021
(April 1, 2021–December 31, 2021)

11,926

13,357

Valuation difference on available-for-sale securities

670

(195)

Deferred gains or losses on hedges

(28)

(4)

Foreign currency translation adjustment

(740)

(3)

Remeasurements of defined benefit plans, net of tax

298

101

Total other comprehensive income

199(103)12,126

13,254

12,034

12,66991

584

Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests7