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, 2014
[Japanese GAAP]
January 30, 2014
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 13, 2014
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, 2013)(1) Consolidated Operating Results

Nine months ended December 31, 2013
Nine months ended December 31, 2012
(Note) Comprehensive income

Operating revenues
Million yen%
241,3548.9
221,627
10.5

Note: Amounts less than ¥1 million have been rounded down.
Operating income
Ordinary income
Net income
Million yen%
Million yen%
Million yen%
9,404
15.5
8,747
6.0
5,527
17.9
8,140
17.6
8,252
22.1
4,687
69.3

Nine months ended December 31, 2013: ¥6,166 million (32.6%)
Nine months ended December 31, 2012: ¥4,650 million (67.6%)
Net income
per share
Yen
43.25
37.29

Diluted net income
per share
Yen
36.26
33.70

Total assets
Million yen
242,845
208,095

Net assets
Million yen
73,90067,327

Nine months ended December 31, 2013
Nine months ended December 31, 2012
(2) Consolidated Financial Position

As of December 31, 2013
As of March 31, 2013(Reference) Shareholders’ equity:

As of December 31, 2013 ¥69,516 million

Equity ratio%
28.6
31.3

Net assets per shareYen
541.46521.48

As of March 31, 2013 ¥65,139 million

2. Dividends
June 30
Yen

September 30
Yen
7.00
8.00

−
Fiscal year ended March 31, 2013−
Fiscal year ending March 31, 2014
Fiscal year ending March 31, 2014
(Forecast)(Note) Change in the estimation of dividend for the fiscal year in this period: None

Annual dividend
December 31
Yen−March 31

TotalYen
7.00

Yen
14.00

8.00

16.00

−

3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2014 (From April 1, 2013 to March 31, 2014)
Operating revenues Operating income
Fiscal year ending March 31, 2014

Million yen
325,000%
10.7(Note) Change in the forecast made in this period: None

Million yen
12,200%23.1(Percentage figures represent year on year changes)
Net income
Ordinary income
Net income
per share
Million yen% Million yen%
Yen
11,400 12.9
6,400 23.0
50.08

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 stocks)
As of December 31, 2013

128,989,476 shares

As of March 31, 2013

128,989,476 shares

600,878 shares

As of March 31, 2013

4,077,506 shares(b) Treasury stock
As of December 31, 2013(c) Average number of shares (quarterly consolidated cumulative period)
Nine months ended December 31, 2013

127,797,301 shares Nine months ended December 31, 2012

125,714,021 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, 2014” 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, 2014 ......................................................................................................................... 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, 2012 and 2013 ............................................................................................................. 7
Consolidated statements of comprehensive income
For the nine months ended December 31, 2012 and 2013 ............................................................................................................. 81

1.

Results of Operations and Financial Condition(1) Results of operations
In the nine-month period of the fiscal year ending March 31, 2014 (April 1, 2013 to December 31, 2013), the Japanese economy
moved on a recovery trend, with increased consumer spending due to last-minute demand before the consumption tax hike andrising expectations regarding the government’s economic stimulation measures as well as improved corporate earnings. The uptrend
in corporate earnings was driven by a recovery in industrial production due to sound domestic demand and an improved export
environment reflecting the correction from yen appreciation.
In the logistics industry, growth was seen in the cargo volume of consumer spending-related goods, reflecting robust consumer
spending, and of construction-related materials, on the back of increases in public projects and housing-related goods due to a spikein demand ahead of the consumption tax hike. Meanwhile, the industry environment remained severe, with fuel prices kept at a highlevel and an increase in outsourcing cost due to a shortage of trucks and drivers.
In this environment, the Senko Group established a new four-year medium-term business plan that began in the fiscal year underreview 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 trade business aswell as to foster an even greater degree of trust among its customers by building a structure for services with high quality andoutstanding performance in relation to cost.
In the first three quarters, we started operation of the Sapporo PD Center No. 2 Warehouse (Sapporo City, Hokkaido Prefecture) andnew warehouses at the Daimon Distribution Center (Moriyama City, Shiga Prefecture) in April 2013, the Chubu Housing Distribution
Center (Nagoya City, Aichi Prefecture) in August 2013, and the Komaki No. 2 PD Center (Komaki City, Aichi Prefecture) inSeptember 2013. We also placed in commission an asphalt tanker that was constructed under a joint investment by the Company
and a shipper in May 2013. In addition, in October 2013 we opened the Tokyo Bay Fashion Arena (Ichikawa City, Chiba Prefecture),a large-scale distribution center to serve as a core of apparel distribution for the Tokyo metropolitan area.
Overseas, we continued to take actions aimed at strengthening and enlarging our international distribution business. Our actions
include the following: component procurement and transportation services for Japanese automobile plants in Thailand that started inApril 2013; the construction of a distribution center at Busan New Port in South Korea that began in June 2013; and distribution
services for Japanese retailers in China that commenced in September 2013.
In the commerce and trade business segment, in October 2013 AST CORPORATION, one of the largest wholesalers of household
paper products, joined the Senko Group as a consolidated subsidiary. We will develop a business model featuring the integration of
the flow of trading activities and the physical flow of goods by making full use of AST’s abilities to both plan and sell products andSenko’s expertise in logistics and a nationwide distribution network.
In addition, we have achieved progress in new businesses, including the development of an invoice search system and other new
products and services as well as the solar electricity sales business.
The nine-month-period performance was as follows.
(Unit: Millions of Yen)
Nine months ended
December 31, 2012
221,627

Nine months ended
December 31, 2013
241,354

Operating income
Ordinary income

8,140
8,252

Net income

4,687

Operating revenues

Change%19,726

8.9

9,404
8,747

1,264
495

15.5
6.0

5,527

839

17.9Consolidated operating revenues for the nine-month period ended December 31, 2013 increased 8.9% year on year to ¥241,354
million due to increased revenues in the distribution segment and the merger effect of AST CORPORATION as a consolidated
subsidiary in the commerce and trade business segments. Earnings benefited from the growth in sales, cost-cutting measures andactivities to raise productivity. The consolidation of special-purpose companies associated with a revision to an accounting standard
also affected earnings. As a result, operating income rose 15.5% to ¥9,404 million, ordinary income increased 6.0% to ¥8,747 million,and net income advanced 17.9% to ¥5,527 million.

2

The nine-month-period business segment performance was as follows.
Distribution
In retail product logistics, an increase in the volume of cargo for general merchandise stores, discount stores, and apparel volumeretailers contributed to growth in operating revenues and efforts were continued to develop relationships with new customers in theelectrical machinery and other machinery sectors. In the housing logistics business, the cargo volume was higher along with theincrease in housing starts in Japan. In the chemicals logistics business, the Senko Group conducted aggressive sales promotion
activities. The result was operating revenues of ¥179,339 million, a 3.9% year-on-year increase.
Commerce and trade
In the commerce business, progress was supported by activities that boosted sales in the petroleum marketing business and acontribution to revenues from the merger effect of AST CORPORATION and Obata Co., Ltd., a wholesaler of household productsthat joined the Senko Group in October 2012. In the trade business, there was a rise in exports of electronic components to China.
As a result, operating revenues increased 27.4% year on year to ¥59,738 million.
OthersIn this segment, operating revenues rose 3.8% year on year to ¥2,277 million, partly due to the launch of the solar electricity sales
business.
(2) Financial condition
1) Assets, liabilities and net assets
Total assets
Total assets as of December 31, 2013 were ¥242,845 million, ¥34,749 million higher than at the end of the previous fiscal year. There
were increases of ¥13,620 million in current assets and ¥31,637 million in property, plant and equipment, while investments and otherassets decreased ¥10,380 million. The consolidation of special-purpose companies caused increases of ¥2,036 million in current
assets and ¥13,477 million in property, plant and equipment, and a decrease of ¥10,975 million in investments and other assets.
Liabilities
Liabilities rose ¥28,177 million from the end of the previous fiscal year to ¥168,944 million, reflecting increases of ¥7,567 million intrade notes and operating accounts payable, ¥7,040 million in the current portion of bonds, ¥4,653 million in short-term loans payable,¥7,033 million in convertible bond-type bonds with subscription rights and ¥12,300 million in long-term loans payable and decreasesof ¥6,960 million in bonds payable and ¥3,188 million in provision for retirement benefits. The consolidation of special-purpose
companies caused increases of ¥1,599 million in current liabilities and ¥2,945 million in noncurrent liabilities.
Net assets
Net assets rose ¥6,572 million from the end of the previous fiscal year to ¥73,900 million, reflecting increases of ¥3,619 million inretained earnings, ¥262 million in valuation differences on available-for-sale securities and ¥2,155 million in minority interests. The
equity ratio decreased by 2.7 percentage points to 28.6%.

3

(3) Forecast for the fiscal year ending March 31, 2014
Although the Japanese economy has staged a mild recovery with increased domestic demand, such as last-minute demand before
the consumption tax hike as well as from public projects and a rise in capital expenditures by private companies, there are concerns
about a downturn in the economy from April 2014 due to the impact of the consumption tax rate hike.
In this environment, based on its medium-term management plan, the Senko Group will develop and provide high-value-added
services, expand the distribution center business, strengthen businesses in the Asian region, develop new businesses, and enhance
profitability.
Operating results as of December 31, 2013 were generally as planned, and there is no revision to the forecast of operating results forthe fiscal year ending March 2014 announced on October 31, 2013.

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
Change in accounting principle(Application of accounting standard for consolidated financial statements)
Starting with the six-month period of the fiscal year ending March 31, 2014, Senko is applying the Accounting Standard forConsolidated Financial Statements (ASBJ Statement No. 22, March 25, 2011), Guidance on Disclosure about Certain Special
Purpose Entities (ASBJ Guidance No. 15, March 25, 2011), Guidance on Determining a Subsidiary and an Affiliate (ASBJ Guidance
No. 22, March 25, 2011), and Practical Solution on Application of the Control Criteria and Influence Criteria to Investment
Associations (ASBJ Practical Issues Task Force No. 20, March 25, 2011). As a result, Y.K. SK Urawa and five other companies havebecome consolidated subsidiaries.
For the application of the above accounting standards and other items to the six newly consolidated subsidiaries, in accordancewith the transitional handling prescribed in Section 44-4 (3) of the Accounting Standard for Consolidated Financial Statements, atthe beginning of the first fiscal year of applying this standard the assets and liabilities of the six newly consolidated subsidiaries
were valued at a suitable book value for inclusion in the consolidated balance sheet.
The consolidation of these six companies did not have a material effect on retained earnings at the beginning of the nine-month
period of the fiscal year ending March 31, 2014.

4

3. Consolidated Financial Statements(1) Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2013

As of December 31, 2013

AssetsCurrent assets
Cash and deposits

15,69012,940Notes and accounts receivable

42,38754,902Merchandise

4,399

6,931

Real estate for sale

33

Work in process

190

227

Supplies

186

203

Other

6,072

7,345

(66)

(71)

68,86382,483

Buildings and structures (net)44,11760,661

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

40,09856,159Other (net)11,38910,422

Total property, plant and equipment

95,605

127,243

Intangible assets
Goodwill

3,452

3,248

Other3,477

3,554

Total intangible assets

6,930

6,802

Investments and other assets
Guarantee deposits

9,252

9,399

Deferred tax assets

3,435

2,766

Other

24,407

14,569Allowance for doubtful accounts

(399)

(419)

Total investments and other assets

36,69626,315

139,232

160,361

208,095

242,845

Total noncurrent assets
Total assets

5

(Unit: Millions of Yen)
As of March 31, 2013

As of December 31, 2013

Liabilities
Current liabilities
Notes and operating accounts payable−trade

31,37738,945Current portion of bonds

−

7,040

Short-term loans payable

14,475

19,129

Income taxes payable

2,540

998

Provision for bonuses

3,118

2,076

181

112

Other

12,142

13,064

Total current liabilities

63,83581,367

Bonds payable

12,0005,040

Convertible bond-type bonds with subscription rights

5,000

12,033Long-term loans payable

41,74954,049Provision for retirement benefits

Provision for directors’ bonuses

Noncurrent liabilities

9,269

6,080

Provision for directors’ retirement benefits

65

178

Provision for special repairs

6149

Asset retirement obligations

324

372

Other

8,462

9,773

Total noncurrent assets

76,931

87,577140,767

168,944

Capital stock

20,521

20,521

Capital surplus

18,782

18,878Retained earnings

26,46830,088Treasury stock(1,353)(1,127)

Total shareholders’ equity

64,41868,359Valuation differences on available-for-sale securities

673

935

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Deferred gains or losses on hedges

(4)

73

Foreign currency translation adjustment

52147

Total accumulated other comprehensive income

720

1,156

Subscription rights to shares

195

235

Minority interests1,992

4,148

Total net assets

67,32773,900208,095

242,845

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

Nine months ended

December 31, 2012

December 31, 2013

(April 1, 2012–December 31, 2012)(April 1, 2013–December 31, 2013)

Operating revenues

221,627

241,354

Cost of sales

198,813215,902

Gross profit

22,81425,452

Selling, general and administrative expenses

14,674

16,047Operating income

8,140

9,404

Interest income

125

120

Dividend income

742

89

Other375

393

1,243

603

Interest expenses

876

931

Other

255

329

1,131

1,260

8,252

8,747

Gain on sales of investment securities−

549

Gain on revision of retirement benefit plan−

239

Gain on sales of noncurrent assets−

151

Insurance income−

32

Total extraordinary income

−

973

94

136

−

104

Loss on cancellation of lease contracts−

64

Soil improvement cost−

61−

22

Loss on valuation of investment securities

42−

Total extraordinary loss

137

389

Income before income taxes

8,115

9,331

Income taxes−current

2,490

2,355

Income taxes−deferred880

1,330

Total income taxes

3,371

3,686

Income before minority interests

4,743

5,644

Minority interest in income or loss

56117

4,687

5,527

Non-operating income

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary loss
Loss on retirement of noncurrent assets
Loss on valuation of investments in capital of subsidiaries andaffiliates

Provision of allowance for doubtful accounts for subsidiaries andaffiliates

Net income7

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

Income before minority interests

Nine months ended

Nine months ended

December 31, 2012

December 31, 2013

(April 1, 2012–December 31, 2012)(April 1, 2013–December 31, 2013)

4,743

5,644

36284

(136)

85

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

6152

Share of other comprehensive income of associates accounted forusing the equity method(0)−

Total other comprehensive income

(93)

521

4,650

6,166

4,590

5,963

59203

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