TRANSPORTA
WAREHOUSIINTERNATIO
DISTRIBUTIOCONSULTING
TRANSPORTA
WAREHOUSIINTERNATIO
DISTRIBUTIO
Annual Report 2009

For the year ended March 31, 2009

SENKO Co., Ltd.

Logistics of the Future Logistics of the Future Logisti

SENKO Co., Ltd.
Umeda Sky Bldg., Tower West, 1-30, Oyodonaka 1-chome, Kita-ku, Osaka 531-6115, Japan
Tel: 06-6440-5155 Fax: 06-6440-5175
URL http: //www.senko.co.jp/
Printed in Japan

Profile

Established in Osaka in July 1946, Senko Co., Ltd. is an integrated distribution
services company. The Company has grown steadily over the years, listing on theFirst Section of the Osaka Securities Exchange in 1975 and on the First Section of theTokyo Stock Exchange in 1990.
As of March 31, 2009, Senko boasted a national network in Japan of 289 offices, 3,072
vehicles, 19 owned and chartered ships, and 1,857,047 square meters of warehouse
space. The Company engages in wide-ranging business operations, centered ontrucking and extending to warehousing, marine transport, railway forwarding, infactory work, and multimodal international transportation.

Consolidated Financial Highlights
SENKO Co., Ltd. and Consolidated Subsidiaries

Years ended March 31

These efficient integrated distribution services have an excellent reputation in themarket based on the provision of efficient transportation and distribution systems
centered on the Best Partner System that support the construction of customer
supply chain management systems. The Company’s Best Partner System is a newlogistics system that takes full advantage of information technology.

Contents

Consolidated Financial Highlights
A Message from the President
Review of Operations
Transport
Retail Distribution and Processing
Others
Review of Operations by Product Category
Corporate Social Responsibility
Board of Directors and Corporate Auditors, Executive Officers
Financial Review
Financial Section
Report of Independent Certified Public Accountants
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows
Notes to the Consolidated Financial Statements
Consolidated Subsidiaries and Affiliated Companies
Corporate Data

2008

2009

¥212,659¥204,294$2,164,909

Operating income

5,564

6,057

56,642

Net income

2,848

3,061

28,994

Total assets

154,212

144,065

1,569,907

Net assets

52,13049,846530,693¥25.95¥27.70

$0.26

8.00

8.00

0.08

470.48454.03

4.79

At year end:

Per share data: (Yen and U.S. dollars)
Net income

Senko plans to take another major step forward in its transformation from an
integrated distribution services company to a logistics information company
through the even greater utilization of information technology to provide customers
with high-quality, efficient logistics solutions.

2009

For the year:
Operating revenues

Senko’s forte lies in supplying integrated distribution services, from distribution
consulting to system design and operations, that closely match customer needs.

Thousands of
U.S. dollars

Millions of yen

Cash dividends
Net assets

Note : U.S. dollar amounts are converted from yen, for convenience only, at the prevailing rate of ¥98.23 to U.S.$1 on
March 31, 2009.

1
2
6
7
7
8
10
15
16

Operating revenues
250

19
20
22
23
24
25
33
33

Cautionary Statement with Respect to Forward-Looking Statements(Billions of yen)

Net income
3,600

200

Net income per share(Millions of yen)

30

3,000

25

2,400

20

1,800

15

1,200

10

600

5

(Yen)

150

100

50

0

05

06

07

08

09

0

05

06

07

08

09

0

05

06

07

08

09

Plans and strategies concerning future business performance included in this annual report are forward-looking statements
based not on historical facts but on management’s assumptions and beliefs in the light of the information currently
available to it, and thus involve a certain element of risk and uncertainty.

1

A Message from the President
Performance declined due to the slowdown in
However, the Company made progress with its
Information Company.”

Business Environment
In the fiscal year ended March 31, 2009, Senko recorded growth inrevenues, but profits retreated. Consolidated operating revenues
increased 4.1%, to ¥212,659 million, while consolidated operating
income decreased 8.1%, to ¥5,564 million and consolidated net
income contracted 7.0%, to ¥2,848 million.
During the fiscal year under review, the financial turmoil sparked off
by the subprime loan problem in the United States impacted
substantially on Japan’s real economy, with the economy slowing
sharply in the second half.
In the transport and distribution industry, the continued spike in fuel prices of the firsthalf settled down in the second half. Nevertheless, stagnation in personal consumption
and deterioration in corporate earnings led to a sharp decline in capital investment,
producing a large drop in domestic cargo volume. In combination with a substantial
decrease in cargo volume caused by the appreciation of the yen, business conditions
remained extremely difficult.
Under these conditions, the Senko Group pushed ahead with the second year of its
three-year medium-term business plan, which aims to make Senko a “Logistics
Information Company.” The Group targeted the expansion of business, particularly inthe wholesale and retail chain store market, by marketing retail supply chain
management (SCM) systems.
Among the new facilities opened during the fiscal year were the Senboku Bulk Terminalin Izumiotsu, Osaka Prefecture; the Ichikawa Fashion Logistics Center in Ichikawa,
Chiba Prefecture; the Uchimoriya Center New Warehouse in Joso, Ibaraki Prefecture; theNara No. 3 PD Center in Yamatokoriyama, Nara Prefecture; the Mizushima No.3
Distribution Center in Kurashiki, Okayama Prefecture; and the Oita Semi-Manufactured
Goods Warehouse in Oita, Oita Prefecture. Senko also took delivery of two new ships
during the fiscal year, the chemical tanker Sentaimaru and the liquefied ammonia tanker
Senrinmaru.

2

the real economy of Japan caused by the turmoil in financial markets.
business expansion plans aimed at making Senko a “Logistics

Reflecting these efforts, operating revenues of the retail logistics business, which
combines the wholesale and retail and medical treatment and pharmaceutical fields,rose 12.2% from last year, to ¥41.5 billion. The retail logistics business accounted for
19.5% of total operating revenues, up 1.4 percentage points year on year. Operating
revenues of the housing logistics business climbed 2.5%, to ¥55.7 billion and contributed
26.2% of total operating revenues, down 0.4 percentage points from the previous fiscal
year. On the other hand, revenues of the petroleum and plastics business decreased 5.3%
year on year, to ¥36.0 billion, with its contribution to total operating revenues falling 1.7
percentage points, to 16.9%.
Revenues from the others business segment expanded 6.0% from a year earlier, to ¥79.5
billion, accounting for 37.4% of total operating revenues, up 0.7 percentage points year
on year. The others business segment comprises the petrochemicals sales, commercial
sales, temporary staffing and information processing businesses.
Although expenses decreased based on higher revenues and efforts to concentrate
operating bases, these gains could not offset the higher fuel costs, evaluation losses on
stock, and other negative factors. Consequently, the Company registered declines inoperating income and net income.

Outline of Medium-Term Business Plan
The fiscal year under review was the second year of our new medium-term businessplan, the final year of which is the fiscal year ending March 2010. Progressing toward
the goal of becoming a “Logistics Information Company,” we are fully committed toachieving the final year goals of a 5% operating income to total assets ratio, a 3% net
sales to operating income ratio, consolidated operating revenues of ¥250 billion,
operating income of ¥7.5 billion, and net income of ¥3.5 billion. The Company is also
aiming to increase its equity ratio based on achieving these goals.
Among specific strategies to reach these objectives, the Company is concentrating on
expanding revenues in its three core businesses (Housing, Petroleum-related products

3

A Message from the President

and plastics, and Retail logistics-related products businesses) while developing andreinforcing high-priority businesses (overseas distribution, trading, information, 3PL
solutions businesses) and new businesses (medical treatment and pharmaceuticalbusinesses, life-related businesses, temporary staffing businesses, export-related
businesses). In addition, the Company will endeavor to expand the foundations for
growth for the entire Group, including the use of business alliances and mergers andacquisitions.

Outlook and Strategies for FY2010/3
The fiscal year ended March 2010 is the final year of our new medium-term businessplan. In the fiscal year under review, the second year of that plan, performance declined
due to the stagnation in the economy caused by turmoil in financial markets notforeseen at the time of the plan’s formulation. Due to this performance decline and otherfactors, we recognize that it will be difficult to achieve the quantitative targets of themedium-term business plan. However, aiming to make a further leap forward toward
the plan’s qualitative goal of becoming a “Logistics Information Company,” we also will
aggressively work to expand revenues and profits.
The outlook for the fiscal year ending March 2010 is for the Senko Group as a wholecontinuing to face a difficult business environment because of slumps in individual
consumption and private sector capital investment caused by the sudden economic
recession that hit last year. Nevertheless, by redoubling our efforts to market proposals
for comprehensive commissioned logistics services based on high quality, highefficiency and logistics systems, we intend to meet the expectations of our customers.
Specifically, in the retail logistics business segment, we will more fully cultivate ourwholesale and retail logistics businesses and expand our fashion logistics business. In
addition, we will make progress with growing our trading company logistics businessand our joint distribution business for home centers and other outlets. In the fiscal year
ahead we will firmly position our retail logistics business segment as our main pillar of
growth.

started in the previous fiscal year.
In the petroleum and plastics business, we will expand our bulk container business andoperate trains specializing in plastic transport. We also plan to proactively promoteinternationalization of our services. Along with our customers’ entrance into overseas
markets, we have already agreed to start up logistics services in China and Thailand.

To Our Shareholders
The Company regards distribution of profits to shareholders as a management priority.
Our basic policy on profit distribution has been to continue to retain the internal
reserves necessary to provide for future business development and strengthen businessstructure. At the same time, to further increase the return of profits to shareholders, inaddition to maintaining stable dividends, we have linked dividends to performance.
For the fiscal year under review, in consideration of performance trends, we paid a
dividend of ¥8.00 per share (interim and year-end dividends of ¥4.00 per share). We areplanning to pay annual dividends of ¥8.00 per share in the current fiscal year as well.
As we complete the final year of our medium-term business plan, we look forward to
the continued support of our shareholders.

September 2009
Yasuhisa Fukuda
President and Representative Director

In the housing logistics business, we will expand operations in new business fields, suchas the construction materials logistics businesses and the packaging materials recycling
logistics business. In addition, keeping abreast of the internationalization of housing
logistics, we plan to increase our exports of prefabricated housing units, which we

45

Review of Operations
Beginning with the fiscal year under review, the Company’s operations have been
categorized into three business segments—transport, retail distribution and processing,and others—in consideration of business content and interrelated operations.

Transport
In addition to truck transport operations, this businesssegment includes railway forwarding on trunk routes;
marine transport by container ship, mixed cargo steamer,and specialty ship; and intermodal international freight
forwarding.
The core truck transport operations have developed an
extensive nationwide network, providing our customers
with transportation and delivery services that match theirproducts and distribution structure, including exclusive,combination, route, and joint transport services.
We transport industrial raw materials, machine products,
construction materials, housing materials, agricultural
products, and consumer items and provide moving services.
In short, we handle almost any freight related to food,shelter, and clothing. We operate a diversified fleet
comprised of medium-duty trucks, heavy-duty trucks, andtractor-trailers as well as specialty transport trucks, such as
tankers, specialty loose powder carrying, and refrigerated
trucks. Our diverse transportation capabilities have won the
Company high marks from manufacturers and othercustomers.

Retail Distribution and Processing
Transport Business Segment
140(Billions of yen)70

125.0 124.0

66.6
61.9
61.9

120

This business segment comprises warehousing and infactory work operations.

Business segments

Operating revenues
Business segments(Billions of yen)

Our warehouses present a very different image from thewarehouses of the past. These multifunctional distribution
centers offer services that combine the delivery to and fromthe warehouse, storage (temperature controlled), setassembly, and labeling processes as well as warehousing,
printing expiration dates, logistics history management, IC
tag-based distribution and inventory management, andother distribution services provided by advanced
warehousing management systems.

31.3%

60
58.3%

100

50

80

40

60

30

40

Transport sales composition
20

Others 1.3%

Retail distribution andprocessing sales composition

20

10

Others

7.0%
0

08

0

09

08

In-factory processing

09

22.9%

International freight forwarding 4.2%
Marine transport 5.3%
Railway forwarding 4.0%

Warehousing

45.1%
Truck transport

Our facilities provide a total storage space of approximately
1,860,000 square meters. With these warehousing bases as
the core of our operations, we develop and install logistics
information systems designed in anticipation of diverse
customer needs. These capabilities allow us to offer a fullrange of logistics services that assist our customers’
production and sales operations.

Retail distribution

85.2 %

25.0%

In-factory work comprises distribution and production
processes spanning everything from loading and unloading
raw materials at our customers’ factories and warehouses towrapping, packaging, and loading finished products. These
professional distribution services give high priority to safe,
quality operations that support the management of the flowof materials and products within factories.

Operating revenues

Others(Billions of yen)

25
22.1
20

‘The others’ business segment includes petroleum sales;
merchandise sales; information processing and softwaredevelopment; and vehicle maintenance.

17.4
15

Business segments

Others sales composition

10
10.4%

Others15.7%
5

Merchandise

29.6%

0

6

08

Petroleum

54.7%

09

7

Review of Operations by Product Category
In addition to business segments, we disclose sales on a

Sales composition

product category basis determined based on groupings ofthe special cargo and distribution characteristics ofcustomers. This information is provided as part of ourefforts to enable shareholders to gain a better
understanding of our business.

Housing
26.2%

Others37.4%

Petroleum-related
products and plastics

16.9%
Retaillogistics-related
products
19.5%

Retail Logistics-Related ProductsThis product category is the main pillar of our growthstrategy. We are acquiring new customers among chain
stores, adapting to customers’ expansion to other locations
and regions, and pursuing outsourcing contracts with apparelcompanies. Furthermore, in the medical and pharmaceuticalfields, we also aim to be on of the top third-party logistics(3PL) companies in the domestic market. Some of our efforts
in this area include developing a nursing care productlogistics service and creating new logistics models for
hospitals.

Housing
For a core group of three major prefabricated housing
manufacturers, we provide just-in-time delivery services
covering raw material procurement to delivery at the
installment location. In addition, we develop SCM systems tocomply with zero emissions at the installment site and otherrequirements. Through this process, we are also responding
to the trend toward joint distribution system within the
prefabricated housing industry.

Change in sales volume of retail logistics-related products

40

41.5

rs

(Billions of yen)

th

35

A

30

i

.0 t

t3

u
bo

s
me

w
gro

in

ea
0y

1

37.0

34.1

31.1

28.4

25.8
25

22.7
19.2
19.2

20

15.5
15

Petroleum-Related
Products and Plastics
Leveraging its nationwide business development capabilities
and its diversified transport system, we provide a full-rangeof services, from raw material procurement and accepting
orders to delivery to end customers. We can also
accommodate customers moving into overseas markets anddevelop SCM systems. These capabilities have earned Senko
the top share of the general-purpose plastics transport market
in Japan. We are also aiming to capture the top share of thedomestic lubricant oil market.

8

13.7
13.7

10

5

0

99

00

01

02

03

04

05

06

07

08

(Fiscal year)

9Corporate Social Responsibility
Basic Corporate Society Responsibility (CSR) Policy
The transport industry to which Senko’s core business belongs has a highly publicbusiness organization that complies with laws and regulations and is transparent. At themission. It is essential to its continued viability as a company that Senko contribute tosame time, we seek to contribute to society through the conscientious and honest practicesociety through the practice of its core business and fulfill its public responsibilities.

of our core business by heightening awareness among all our employees of the

At Senko, we take that responsibility seriously and have established a highly ethicalresponsibilities arising from the public nature of our business.

Strengthening our CSR Promotion System
In April 2008, we established a CSR promotion committee to take the lead in actively promoting CSR operations. Senko

Stakeholder Relationships in Senko’s Businessconsiders environmental protection and traffic safety to be high priority management issues. However, by clarifying thescope of our social responsibilities, we also are working to expand the domain of our CSR activities to include
implementation of effective measures for all of our stakeholders.

Customers
Transport andDelivery customers

Shareholders•High quality•Low cost•Efficient•Environmentallyconscious•Safe•Partnerships•Proper information
disclosure•Proper distribution of
profits•Transparency inmanagement•Proper disclosure of
information

Corporate Governance

Services

The Senko Group recognizes that the continued enhancement of corporate governance is the foundation of its viability, andRegional
Communities•Traffic safety•Environmental consciousness•Regional exchange•Social contribution•Proper disclosure of
information

has therefore made corporate governance one of its top priority management issues. Based on that awareness, the Groupendeavors to achieve thorough compliance with relevant laws and regulations in carrying out its business activities.
Business Execution and Auditing and Oversight• Meeting at least once a month, the board of directors is responsible for monitoring compliance with matters stipulated in
the law, deciding important matters related to the management of the Company, and monitoring business execution.
Senko also has reinforced the function of the board of directors by introducing a corporate officer system. The purpose of
the system is to separate the business decision and monitoring roles of the board from the business execution role of

Senko<Business Activities>

managers. In addition to strengthening these separate functions and clarifying their responsibilities, the Company has
sought to achieve greater transparency in business management through the establishment of an Executive Committee.

Government

Business partners
and vendors
Cooperative companies andprocurement sources•Legal compliance•Traffic safety•Environmental consciousness•Partnership•Environmental consciousness

Corporate officers also participate in the committee, which verifies the status of business execution in the Company’s
operations.
• The Company has adopted the auditor system and auditors attend meetings of the board of directors and objectively
monitor the directors’ execution of their duties. In addition, the auditors liaise with the Audit Department, which is theCompany’s internal audit section, and the independent certified public accounting firm, working to ensure thoroughcompliance by the Company and its subsidiaries and to conduct strict audits.

Employees•Maintaining safety andhealth in the workplace•Nurturing personnel•Fairness in employment

Compliance
By complying with the laws and carrying out business activities on an ethical basis, companies fulfill their social obligations
and gain the trust of all stakeholders. As such, compliance represents a most basic corporate policy. The Senko Group aims
to carry out sincere and fair business activities and is pursuing stronger compliance systems.

1011

Corporate Social Responsibility
Environmental Activities

Details of Specific Environmental Activities

Basic Environmental Policy

Environmental Promotion System

Energy Conservation Committee

The Senko Group ensures that all of its
employees correctly understand thePresident

FY2009/3 Goals

Environment
Committee

Green Logistics Promotion Committee

seriousness of global environmental

Social Contribution
Promotion Committee

issues and promotes measures thatwill contribute to the effective use of1• 109% of figure in fiscal year ended March 2007 (per sales)

2

Reduce waste emissions
80% of figure in fiscal year ended March 2007. (per sales)• 52% of figure in fiscal year ended March 2007 (per sales)3

Cut vehicle fuel expenses
by 3% year on year.

• 96.1% of figure in fiscal year ended March 2007

4

Decrease electric power consumption
98% of figure in fiscal year ended March 2007. (per sales)• 111.5% of figure in fiscal year ended March 2007 (per sales)

Secretariat

global natural resources and theDepartments and Branches
Environmental Measures Committee

recycling of materials.

Progress and Results

Reduce CO2 emissions
97% of figure in fiscal year ended March 2007. (per sales)(Decrease in fuel consumption of vehicles and increase in electric use andfuel consumption of vessels)(Reaction to temporary increase in waste generation in fiscal year ended March 2007
and progressive benefits from separation of waste into recyclable categories)(Benefits from such measures as installing digital tachographs)(Impact of new large-scale logistics facilities)

Sky Building Environmental
Measures Committee

With a heightened awareness of the

CRD Shiba Building Environmental
Measures Committeerole the logistics industry has to play,
Senko constantly seeks to demonstrate(East and West head offices)

creativity in proposing advanced
Group Companies Environmental
Measures Committee

logistics systems that contribute toprotecting the environment.

Carbon Dioxide Emissions
Senko endeavors to keep track of its emissions of global warming gases (CO2), which are produced by vehicles, ships,
offices, warehouses, and other aspects of its business.
In the fiscal year ended March 2009, Senko’s CO2 emissions totaled 110,618 t- CO2, down 2,658 t- CO2 from a year earlier.
The lower emissions compared with the previous fiscal year can be attributed to two
factors, reduced use of fuel and electricity. Our fuel consumption declined due to aof digital tachographs on vehicles, and the improvement of our fuel consumption rate by

INPUTElectricity, water,
heavy oil, gasoline,
natural gas, LP gas,
packaging material,
paper, secondary
materials

promoting eco-driving. Although we opened new distribution facilities, our electricity use
Diesel oil,natural gas,
heavy oil

Diesel oil,natural gas,
gasolineyear under review of electricity used by tenants at offices and workplaces in leasehold
DeliveryStore

Logistics Center
Sorting and shipment

properties that SENKO does not control and a fall in the operating rate of warehouses.
Improving Safely, Health, and Quality

DeliveryCargo(t-CO2)

113,276
110,618
109,366

100,000

99,237
92,62080,000decreased by 2.7% year on year because of such factors as the exclusion starting in the fiscal

Transport

Customer’s plant

120,000

decrease in the number of trucks by 3% year on year, the promotion of the implementation

Senko’s Relationship with the Environment

Diesel oil,natural gas

CO2 emissions trend by year

Customer’sdelivery center

Shipping

Delivery

Office40,00020,000

Senko implements a variety of safety management measures based on the view that daily
inspections and steady attention to safety measures will prevent accidents.

Logistics Center

60,000

0

04

05

06

07

08 (FYWe also continue to adhere to original Senko safety activities aimed at reducing the latent risk of accidents. These activities
include our Day-Light policy (vehicle headlights on even during the day) and our Hiyari-Hatto-Kigakari policy (heightened

OUTPUT

Emission gases,
noise, vibration

Emission gases,
water pollution,
waste, waste oil,vibration, noise

awareness, concern for others, and attention to detail), and our Kodawari Unten 3-5-5 campaign (leaving more than three
Emission gases,
noise, vibration

DeliveryEmission gases,
noise, vibration

Plant

seconds between vehicles when driving, stopping at least 5 centimeters before the halt line, and leaving more than 5 meters
between vehicles when stopping).
Activities as a Corporate Citizen

CO2 Emissions Composition by Causes

INPUT• Diesel oil• Heavy oil• Electricity

15,209 kL
11,187 kL
70,882,407 kWh

Offices and warehouses, etc. (Electricity)

39,340 t-CO2
35.6 %OUTPUT• CO2 emissions

110,618 t-CO2

Note: The numbers for CO2 emissions are based on the laws and ordinances related to measures for
global warming that were revised on March 29, 2006.

12

Shipping (C heavy oil)

11,355 t-CO2
10.3 %

As part of its CSR activities, Senko carries out measures to protect the safety of children—who are our future. Commencing
CNG

93 t-CO2
0.1 %Total CO2 Emissions

Automobile (Diesel oil)

110,618 t-CO

39,835 t-CO2
36.0 %

2

Shipping (A heavy oil)

19,995 t-CO2
18.0 %

with a Children’s Traffic Safety Festa at Crefeel Koto, we held Children’s Traffic Safety Courses in six regions throughout
Japan in the fiscal year under review (ref p.14).
In addition, a total of more than 20,000 employees participated in our regional cleanup activities. Head office employees
cleaned up the area around the Yodo River, one of the important sources of water for the Kansai region in Japan, while theemployees of branches cleaned up public streets near by their offices.

13Corporate Social Responsibility

Board of Directors and Corporate Auditors, Executive Officers (As of July 31, 2009)

FY2009/3 CSR Highlights
Safety Course Program at Crefeel Koto
As a company that emphasizes safety, Senko wanted to sharethe information and know-how accumulated over the years inthe safety driving programs used in its business widely withthe public. To realize that concept, we established Crefeel Koto.
One of the largest open-house traffic safety study and training
facilities in Japan, Crefeel Koto creates and offers a diverse
range of study and training programs to educate employees ofcorporations, members of associations, and regular drivers.
Through these programs, Senko contributes to improving

President and Representative Director

Executive Vice President and Representative Director

Yasuhisa Fukuda

Kenichi Shibukawa

traffic safety in our society and to preserving the environment.
Crefeel Kotou

The approximately 66,000-square-meter traffic education zone contains a basic training area, an avoidance training area, aPresident and Representative Director

high-speed circuit course, and other facilities where drivers can experience a variety of driving situations simulating thedangers faced on public roads. In addition, the staff at Crefeel Koto can create study or training programs suited to the

Full-time Corporate Auditors

Yasuhisa Fukuda

Yutaka Toyama
Katsumi Okamoto

Executive Vice President and Representative Director

Masakazu Tsuji

Kenichi Shibukawa

individual needs and circumstances of visitors.

Yuzo Matsumoto

Directors and Senior Managing Executive Officers

More than 40,000 people have come to take courses at the facility since its launch in 1996, which has received many happy

Takeyo Teduka

reports of lower incidences of accidents after taking courses at Crefeel Koto.

Hisao Takahashi
Masuo Tanaka
Directors and Managing Executive Officers

Active Promotion of a Modal ShiftWith the aim of offering transport services that place less of a burden on
the environment, Senko is making a modal shift in its transport business,

Sadayuki Wada

Takashi Yamamoto

Directors and Executive Officers

Masahito Kanno

logistics efficiency.

Yoshio Shigeno
Koujirou Matsuda

and ship services. Shipping is gathering attention in the industry as acreating a transport system for shipping, which is contributing to greater

Executive Officers

Hirofumi Teramachi

Yasushi Morimoto

emissions as well as being economical. Senko also has led the industry in

Kazuhiro Yamanaka

Kengo Tanaka

changing from a primarily truck-based system to one that includes railmode of transport because its greater energy efficiency reduces CO2

Managing Executive Officer

Yoshihiro Kawase
Kazuaki Oike

Kenichi Shiraki
Junji Miyatsu
Tomoyuki Osako
Hiroshi Yoneji
Akira Taniguchi
Masami Tada
Noburou Sasaki

CSR Activities in Local Communities—Children’s Traffic Safety Course
As part of our CSR activities, we conduct Children’s Traffic Safety
Courses in regions throughout Japan aimed at children and their parents.
Instructors from our Crefeel Koto facility and safety driving trainers fromour branches serve as teachers. The courses offer children advice that only
professional drivers can provide, such as to “look right, look left, andthen check drivers’ faces to see that they are watching before crossing at apedestrian crossing and you’ll never have an accident.”

14

15

Financial Review

Performance
Consolidated operating revenues for the fiscal year ended March 2009
increased 4.1%, to ¥212,659 million. In the fiscal year under review, therevenues of the transport business segment declined because of thedrop in sales of the petrochemicals and plastics business. However,these revenue shortfalls were offset by revenue growth in the retail
distribution and processing and others business segments, resulting inan overall increase in operating revenues.
Looking at profits, consolidated operating income contracted 8.1%, to¥5,564 million. During the fiscal year under review, the impact of theturmoil in the financial markets caused by the subprime loan problem
began to spill over into the real economy in the second half.
Accordingly, the transport business segment’s operating revenues
slumped dramatically in the fourth quarter. These lower revenues
combined with the increased expenses from the hike in fuel prices to
produce an overall decline in operating income. Consequently, theoperating income ratio fell 2.6 percentage points, to 0 .4%.
Reflecting reduced operating income, income before income taxes andminority interests decreased 9.6% year on year, to ¥5,237 million.
Due to a reduction in current income taxes and other taxes, consolidated
net income, at ¥2,848 million, was down only 7.0%. The ratio of net
income to operating revenues slid 0.2 percentage points, to 1.3%.

Performance by Business Segment
By business segment, transport operating revenues for the fiscal year underreview edged down ¥991 million, or 0.8%, to ¥123,963 million, generating

Operating revenues

58.3% of total operating revenues. Despite implementing an increase in
prices in the first half to cover higher fuel costs, the substantial drop in
domestic and export freight volume in the second half, especially in the
petrochemicals and plastics business, resulted in a decline in operating
revenues.
The operating revenues of the retail distribution and processing businesssegment amounted to ¥66,619 million, rising ¥4,706 million, or 7.6% andaccounting for 31.3% of total operating revenues. The sales benefits from theopening of large-scale facilities, such as the Ichikawa Fashion Logistics
Center and the Uchimoriya Center New Warehouse in the fiscal year underreview contributed to the growth in operating revenues
Operating revenues from the others business segment jumped ¥4,649
million, or 26.7%, to ¥22,076 million, contributing 10.4% of total operating
revenues. The business segment posted substantial growth in revenues
because of greater revenues in its oil sales operations from the rise in sales
price, in its trading operations from increased sales of freight handlingmaterials, and in its information processing operations from increased salesof software.
Performance by Principal Products Category
The Company has three core product categories: retail logistics-related(wholesale and retail and medical treatment and pharmaceuticals
logistics fields), housing-related, and petroleum-related and plastics. For
the fiscal year ended March 2009, these three core product categories
accounted for 62.6% of total operating revenues.
Accounting for 26.2% of operating revenue, housing-related products
can be separated into distribution services from the factories andOperating income

Net income

Ratio of SG&A
expenses to operating revenues

250(Billions of yen)

7,000(Millions of yen)

3,000

6,000

(Millions of yen)

5(%)

(Units: billions of yen, %)The petroleum-related and plastics product category, which
generated 16.9% of total operating revenues, targeted
expansion of its bulk container comprehensive distribution
system business during the fiscal year. This system uses
containers that can hold 16 metric tons of plastic resin orother materials. After filling the container at the factory,
Senko delivers the container using its rail, trucking, andmarine distribution network, unloads the container, andreturns the empty container to the customer. Based on large
lots, this door-to-door system provides cost, contaminationprevention, and operating efficiency advantages.
As a result of these efforts, operating revenues grewfavorably in the first half. However, entering the second
half, distribution volumes of plastic raw materials andfabricated products dropped substantially under the
influence of the global decline in demand. Consequently,

Operating income / net
income to operating revenues
4

2,500

200

Consolidated Operating Revenues by Products Handledhousing materials distribution services. During the fiscal
year, factory distribution services revenues plummeted in
the fourth quarter impacted greatly by the global panic
caused by the subprime loan problem, resulting in an
overall decline for the year. On the other hand, theCompany achieved favorable growth in revenue fromhousing materials distribution services due to the sales
contribution of consolidated subsidiary A Line Amano Co.,
Ltd., the main customers of which are materials
manufacturers. As a result, operating revenues fromhousing-related products increased ¥1,350 million, or 2.5%,
year on year, to ¥55,680 million.

Net income per share

(%)

30

Year ended March 2008

Revenues

Composition

Revenues

Composition

Change% Change

Housing

55.7

26.2

54.3

26.6

1.4

2.5

Petroleumrelated products,
and plastics

36.0

16.9

38.0

18.6

-2.0

-5.3

Retail logisticsrelated products

41.5

19.5

37.0

18.1

4.5

12.2

Chemicals andfertilizers

4.4

2.1

4.9

2.4

-0.5

-10.5

Foods

3.8

1.8

3.8

1.9

—

-0.5

Electronics
products andmachinery

3.1

1.4

3.6

1.8

-0.6

-15.4

Others

68.2

32.1

62.7

30.6

5.5

8.8

Total

212.7

100.0

204.3

100.0

8.4

4.1

Cash dividends per share

Composition of
products handled(Year ended March 2009)

(Yen)

(Yen)

25

Operating income tooperating revenues

Year ended March 2009

8

3

26.2%

Housing

16.9%

Petroleum-related products
and plastics

19.5%

Retail logistics-related
products

37.4%

Others

5,000
2,000

150

20
4

4,000

2

1,500

15
Net income tooperating revenues

3,000

100

7

1,000

10

2,000

1

50

0

16

05

06

07

08

09

0

3

500

1,000

05

06

07

08

09

0

05

06

07

08

09

0

5

05

06

07

08

09

0

05

06

07

08

09

0

05

06

07

08

09

0

05

06

07

08

09

17

Report of Independent Certified Public Accountants

petroleum-related and plastics product operating revenues decreased¥2,010 million, or 5.3%, to ¥35,980 million.

the effect of a revision in lease accounting standards, the amount of net
assets is steadily improving.

The retail logistics-related product category, which contributed 19.5% of
total operating revenues, experienced continued business expansion in
the retail logistics field, which has been achieving high growth recently.
Contributing factors to the increase in business during the fiscal year
were revenue benefits from the operation of large-scale facilities, such as
the Ichikawa Fashion Logistics Center that was opened in May 2008 anda higher volume of business from discount store and specialty store
chains in the general merchandise store (GMS) field. Consequently,
operating revenues from retail logistics-related products grew ¥4,510
million, or 12.2%, to ¥41,530 million.

Interest-bearing debt at fiscal year-end increased ¥6,380 million, or 12.9%,
to ¥56,288 million. As a result, the ratio of interest-bearing debt to total
assets increased 1.9 percentage points, to 36.5%. The substantial increase
resulted from the lease debt that had been off-balance sheet up to the endof the previous fiscal year, becoming on-balance sheet in the fiscal year
under review.

Financial Position
Total assets at March 31, 2009 expanded ¥10,147 million, or 7.0%, from theprevious fiscal year, to ¥154,212 million. The growth in total assets can be
attributed to an increase in fixed assets due to active capital investment
and mergers & acquisitions (M&A) activities and the effect of a revision inlease accounting standards. Major capital investments during the fiscal
year under review were in the opening of the Ichikawa Fashion Logistics
Center, the Rinko No. 2 PD Center, the Uchimoriya Center New
Warehouse, the Nara No. 3 PD Center, the Mizushima No.3 Distribution
Center, the Oita Semi-Manufactured Goods Warehouse; and building of
two new ships. The increase in M&A investments came from theconversion of Tokyo Nohin Daiko Co., Ltd., into a consolidated
subsidiary.
Net assets at fiscal year-end amounted to ¥52,130 million, resulting in an
equity ratio of 33.5%. Although the equity ratio declined 1.1% from a year
earlier because of the expansion in total assets due to M&A activities andTotal assets

150

Cash Flows
For the year ended March 31, 2009, net cash provided by operating
activities decreased ¥606 million, or 9.6%, to ¥5,692 million. The major
components in the decrease were a cash inflow of ¥9,269 million inincome before income taxes and minority interests and depreciation andamortization and ¥3,560 million from a decrease in trade receivablecombined with a cash outflow of ¥4,419 million from a decrease in trade
payables and ¥2,726 million from income tax paid.
Net cash used in investing activities amounted to ¥7,134 million,
declining ¥746 million, or 9.5%, from the previous fiscal year. Major
expenses components were payments for purchases of fixed assets of¥6,852 million and payments for purchases of investment securities of¥690 million.
Net cash provided by financing activities amounted to ¥843 million,
down ¥2,340 million, or 73.5%.
As a result, cash and cash equivalents at end of year totaled ¥11,748
million, decreasing ¥570 million, or 4.6% from the prior fiscal year.

Net assets /net assets ratio(Billions of yen)(Billions of yen)

(%)

60

ROE / ROA

40

6

(%)

ROE
55

35

50

30

45

25

40

20

35

15

5

120

4
90

60

3

2
30

10

25

5

30

0

18

ROA

1

05

06

07

08

09

0

05

06

07

08

09

0

0
04

05

06

07

08

09

19

Consolidated Balance Sheets
SENKO Co., Ltd. and Consolidated Subsidiaries
March 31, 2009 and 2008

Thousands of
U.S.dollars

Millions of yen

ASSETS

2008

2009

LIABILITIES AND NET ASSETS

2009

Current assets:

Thousands of
U.S.dollars

Millions of yen

2009

2008

¥ 9,600¥ 7,750$ 97,730

8,368

4,948

85,188

788

—

8,022

79

54

804

17,19819,942

175,079

5,556

5,140

56,5612009

Current liabilities:¥ 11,748

Cash and cash equivalents¥ 12,318$ 119,597

Trade accounts and notes receivable-

Short-term loans (Note 7)
Current portion of long-term debt (Note 7)

37

34

377

24,98526,980254,352

(17)

(19)

(173)

Non-consolidated subsidiaries and affiliates

518

1,222

5,273

OthersDeferred tax asset (Note 14)

1,556

1,670

15,840Accrued expenses

Prepaid expenses and other current assets

2,590

1,943

26,367

Accrued income taxes

920

1,566

9,366

41,41744,148421,633

Other current liabilities

3,968

4,797

40,39546,47744,197473,145

Non-consolidated subsidiaries and affiliates
OthersLess allowance for doubtful accounts
Inventories

Total current assets

Lease obligations
Trade accounts and notes payable––

Total current liabilities
904

1,552

9,203

Long-term debt, less current portion (Note 7)

38,32037,210390,105

1,936

1,524

19,709Lease obligations

3,159

—

32,159Accrued Retirement Benefits (Note 8)

9,491

9,335

96,620140,474

129,1091,430,052

Other long-term liabilities

4,635

3,477

47,185Less accumulated depreciation(59,019)(55,831)(600,825)

Net property and equipment

81,45573,278829,227

Contingent liabilities (Note 10)Long-term deferred tax assets (Note 14)

4,911

5,147

49,995

Net assets (Note 12):

Other assets

23,58918,416240,140

Common stock:

18,346

18,296

186,766

Capital surplus

16,60816,554

169,072

Retained earnings

17,52015,554

178,357

(779)

(717)

(7,930)Net unrealized holdings gain(loss) on securities

(26)

98

(265)

Translation adjustments

(11)

32

(112)

Stock acquisition rights (Note 13)

60

26

611

Minority interests

412

3

4,194

Total net assets

52,13049,846530,693¥ 154,212¥ 144,065$ 1,569,907

Investments in and long-term loans to non-consolidated subsidiaries and affiliates
Investment securities (Notes 5 and 9)
Property and equipment, at cost (Notes 6 and 9)

Authorized––294,999,000 shares
Issued––111,989,476 shares in 2009 and111,746,167 shares in 2008

Less treasury stock, at cost––2,189,585 shares in2009 and 2,024,789 shares in 2008

Total assets¥ 154,212¥ 144,065$ 1,569,907

See the accompanying notes to the consolidated financial statements.

20

Total liabilities and net assets

See the accompanying notes to the consolidated financial statements.

21

Consolidated Statements of Income

Consolidated Statements of Changes in Net Assets

SENKO Co., Ltd. and Consolidated Subsidiaries
Years ended March 31, 2009, 2008and 2007

Operating revenues

Thousands of
U.S.dollars

Millions of yen

2009

2008

2007

2009

¥ 212,659¥ 204,294¥ 198,189$ 2,164,909

SENKO Co., Ltd. and Consolidated Subsidiaries
Years ended March 31, 2009, 2008 and 2007
Thousands

Operating costs and expenses:
Operating costs of revenues

196,141

188,300

183,621

1,996,753

Selling, general and administrative expenses

10,954

9,937

9,077

111,514207,095

198,237

192,698

2,108,267

5,564

6,057

5,491

56,642

Interest and dividend income

907

739

439

9,233

Interest expenses

(933)

(779)

(630)

(9,498)

Impairment loss

—

—

(177)

—

(301)

(226)

(305)

(3,063)

(327)

(266)

(673)

(3,328)

5,237

5,791

4,818

53,314Current

1,928

2,364

1,805

19,627

Deferred

460

365

477

4,683

2,388

2,729

2,282

24,310

(1)

(1)

(0)

(10)

¥ 2,848¥ 3,061¥ 2,536$ 28,994

Operating income
Other income (expenses):

Others, net
Income before income taxes and minority interests
Income taxes (Note 14):

Minority interests in gain of a consolidated subsidiary
Net income

Per share of common stock
Net income

Yen

U.S.dollars¥ 25.95¥ 27.70¥ 22.80$ 0.26

Diluted net income

23.39

25.82

—

0.24

Cash dividends applicable to the year

8.00

8.00

8.00

0.08

Millions of Yen
Netunrealized
holding gain
(loss) on
securities

Loss ondeferredhedges¥ (33)
—
—
—
—
(387)
1

¥ 385
—
—
—
—
—
—

¥—
—
—
—
—
—
—

¥—
—
—
—
—
—
—

¥—
—
—
—
—
—
—

¥—
3
—
—
—
—
—

¥ 46,816
3
2,536
(975)
(26)
(387)
1

51

—

—

—

—

—

—

51

—
—
¥ 16,559
—
—
—
(5)

6
—
¥ 13,201
3,061
(885)
—
—

—
—
¥ (419)
—
—
(306)
8

—
(94)
¥ 291
—
—
—
—

—
(2)
¥ (2)
—
—
—
—

—
25
¥ 25
—
—
—
—

—
—
¥—
—
—
—
—

—
0
¥3
—
—
—
—

6
(71)
¥ 47,954
3,061
(885)
(306)
3

—
—
¥ 18,296
—
50
—
—
—

—
—
¥ 16,554
—
50
—
—
4

177
—
¥ 15,554
2,848
—
(878)
—
—

—
—
¥ (717)
—
—
—
(75)
15

—
(193)
¥ 98
—
—
—
—
—

—
2
¥—
—
—
—
—
—

—
7
¥ 32
—
—
—
—
—

—
26
¥ 26
—
—
—
—
—

—
0
¥3
—
—
—
—
—

177
(158)
¥ 49,846
2,848
100
(878)
(75)
19

—

—

—

(4)

—

—

—

—

—

—

(4)

—
—
111,989——¥ 18,346——¥ 16,608——¥ 17,520(2)—¥ (779)—(124)¥ (26)

—
—
¥—

—
(43)
¥ (11)

—
34
¥ 60

—
409
¥ 412

(2)
276
¥ 52,130

Number ofshares ofcommonstock issued

Commonstock

CapitalsurplusRetainedearnings

111,746
—
—
—
—
—
—

¥ 18,296
—
—
—
—
—
—

¥ 16,559
—
—
—
—
—
(0)

¥ 11,609
—
2,536
(975)
(26)
—
—

—

—

—

—
—
111,746
—
—
—
—

—
—
¥ 18,296
—
—
—
—

—
—
111,746
—
243
—
—
—

Balance at March 31, 2006
Reclassified balance as of March31,2006
Net income
Cash dividends
Bonuses to directors and statutory auditors
Purchases of treasury stock
Retirement of treasury stock
Adjustment of retained earnings
for a newly consolidated subsidiary
Adjustment of retained earnings
for a newly share subsidiary
Other changes
Balance at March 31, 2007
Net income
Cash dividends
Purchases of treasury stock
Retirement of treasury stock
Adjustment of retained earnings
for newly consolidated subsidiaries
Other changes
Balance at March 31, 2008
Net income
Conversion of convertible bonds
Cash dividends
Purchases of treasury stock
Retirement of treasury stock
Adjustment of retained earnings
for newly consolidated subsidiaries
Increase in treasury stock due to changes
in shareholding ratio of an affiliate
Other changes
Balance at March 31, 2009

Balance at March 31, 2008

Commonstock

CapitalsurplusRetainedearnings

Treasurystock(at cost)

Stock
Translation
Minority
adjustment acquisition interests
rightsThousands of U.S. dollars
Net unrealized
TreasuryStockholding gain
Translationstockacquisition Minority(loss) on
adjustmentsinterests(at cost)
rightssecurities

Total
net
assetsTotal
netassets$ 186,257$ 168,523$ 158,343$ (7,299)

$ 997

$ 326

$ 265

$ 30

$ 507,442

Net income——

28,994

—

—

—

—

—

28,994

Conversion of convertible bonds

509

509

—

—

—

—

—

—

1,018

Cash dividends——(8,938)

—

—

—

—

—

(8,938)Purchases of treasury stock

—

—

—

(764)

—

—

—

—

(764)

Retirement of treasury stock

—

40

—

153

—

—

—

—

193

—

—

(42)

—

—

—

—

—

(42)

—

—

—

(20)

—

—

—

—

(20)

—

—

—

—

(1,262)

(438)

346

4,164

2,810

$ 186,766$ 169,072$ 178,357$ (7,930)$ (265)$ (112)$ 611$ 4,194$ 530,693

Adjustment of retained earnings
for newly consolidated subsidiaries
Increase in treasury stock due to changes inshareholding ratio of an affiliate
Other changes
Balance at March 31, 2009

See the accompanying notes to the consolidated financial statements.

22

See the accompanying notes to the consolidated financial statements.

23

Notes to the Consolidated Financial Statements

Consolidated Statements of Cash FlowsSENKO Co., Ltd. and Consolidated Subsidiaries
Year ended March 31, 2009, 2008and 2007

Cash flows from operating activities:
Income before income taxes and minority interests
Adjustments for:
Depreciation and amortization
Loss on disposals of property and equipment
Equity in losses of affiliates
Impairment losses
Decrease in allowance for employee retirement
Increase (decrease) in accrued bonuses to employees
Interest and dividends income
Interest expenses
Decrease(increase) in trade receivables
Decrease(increase) in inventories
Increase(decrease) in trade payables
Other
Sub totalInterest and dividend income received
Interest expenses paid
Income tax paid
Net cash provided by operating activities
Cash flows from investing activities:
Payments for purchases of fixed assets
Proceeds from sales of fixed assets
Payments for purchases of investment securities
Proceeds from sales of investment securities
Payments for purchases of non-consolidated subsidiaries
Proceeds from sales of a non-consolidated subsidiary
Purchase of shares of a newly consolidated subsidiary
Other
Net cash used in investing activities
Cash flows from financing activities:
Increase(decrease) in short-term loans, net
Proceeds from long-term debt
Repayment of long-term debt
Proceeds from issuance of convertible bondPayment for redemption of bonds
Repayments of finance lease obligations
Purchases of treasury stock
Sales of treasury stock
Dividends paid
Other
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Net increase in cash and cash equivalents of newly consolidated subsidiaries
Cash and cash equivalents at end of year

SENKO Co., Ltd. and Consolidated Subsidiaries
Thousands of
U.S.dollars

Millions of yen

2009

2008

2007

2009

¥ 5,237¥ 5,791¥ 4,818$ 53,314

4,032
225
197
—
(427)
(54)
(907)
933
3,560
713
(4,419)
79
9,169
183
(934)
(2,726)
5,692

3,340
96
—
—
(349)
31
(739)
779
(573)
(635)
1,847
(526)
9,062
208
(778)
(2,194)
6,298

2,693
296
—
177
(327)
(0)
(439)
630
264
186
921
(874)
8,345
155
(631)
(1,868)6,001

41,047
2,291
2,005
—
(4,347)(550)(9,233)
9,498
36,241
7,258(44,986)804
93,342
1,863(9,508)(27,751)
57,946(6,852)
351
(690)
59
(195)
3
(18)
208
(7,134)(6,291)
291
(78)
6
(900)
—
—
(908)
(7,880)(7,874)
167
(39)
55
(44)
—
—
(3,865)(11,600)(69,755)
3,573(7,024)601(1,985)
31
(183)
2,117
(72,625)

1,750
9,473
(8,136)
—
(810)
(330)
(75)
19
(878)
(170)
843
(30)
(629)
12,31859¥ 11,748(4,200)8,000(4,260)
4,984
—
—
(306)
3
(886)
(152)
3,183
(5)
1,596
10,590132¥ 12,318

2,000
9,400
(5,927)
—
—
—
(387)
1
(973)
(125)
3,989
9
(1,601)
12,11576¥ 10,590

17,81596,437(82,826)—(8,246)(3,359)(764)
193(8,938)(1,730)8,582(306)(6,403)
125,400600$ 119,597

See the accompanying notes to the consolidated financial statements.

24

1. Basis of Presenting Consolidated Financial Statements:
SENKO Co., Ltd. (the “Company”) and its domestic subsidiaries maintain their accounts and records in accordance with the provisions set forthin the Japan Companies Act and the Financial Instruments and Exchange Law of Japan and in conformity with accounting principles generally
accepted in Japan, which are different in several respects as to the accounting and disclosure requirements of International AccountingStandards.
The Company’s foreign subsidiaries maintain their accounts and records in conformity with generally accepted accounting principles andpractices prevailing in their respective countries of domicile.
The accompanying consolidated financial statements are prepared based on the consolidated financial statements of the Company and its
subsidiaries(the “Companies”) which were filed with the Director of Kanto Local Finance Bureau as required by the Financial Instruments andExchange Law of Japan.
In preparing the accompanying consolidated financial statements, certain reclassifications and rearrangements have been made to theconsolidated financial statements issued domestically in order to present them in a form which is more familiar to readers outside Japan.
The translation of Japanese yen amounts into U.S. dollars is included solely for the convenience of the reader, using the exchange rate
prevailing at March 31, 2009, which was ¥98.23 to US$1.00. These convenience translations should not be construed as representations that theJapanese yen amounts have been, could have been, or could in the future be, converted into U.S.dollars at this or any other rate of exchange.
2. Summary of Significant Accounting Policies:(a) Principles of Consolidation
The consolidated financial statements include the accounts of the Company and its significant subsidiaries. All significant intercompany
balances and transactions are eliminated.
Non-consolidated subsidiaries, whose combined assets, net sales, net income and retained earnings in the aggregate are not significant inrelation to those of the consolidation with the Companies.
The Company has adopted the equity method of accounting for investments in significant affiliates. The investments in other insignificant
unconsolidated subsidiaries and affiliates are stated at cost.
(b) Cash and Cash Equivalents
Cash and cash equivalents comprise cash in hand, deposits held at call with banks, net of overdrafts and all highly liquid investments withmaturities of three months or less.
(c) Investment Securities
Investment securities are classified and accounted for, depending on management’s intent.
Marketable other securities, which are not classified as either trading securities or held-to-maturity debt securities, are reported at fair value,with unrealized gains and losses, net of applicable taxes, reported in a separate component of net assets.
Non-marketable other securities are stated at cost.
The cost of other securities sold is determined by the moving-average method.
The Companies classified all securities as other securities.
(d) Allowance for Doubtful Accounts
The allowance for doubtful accounts is stated in amounts considered to be appropriate based on the Companies’ past credit loss experience oran evaluation of potential losses in the receivables outstanding.
(e) Inventories
Purchased goods are stated at cost determined by the first-in first-out method (with book values written down on the balance sheet based on
decreased profitability of assets.). Supplies are stated at cost determined by the moving-average method. Real estate for sale and work inprocess are stated at cost determined by the specific method (with book values written down on the balance sheet based on decreased
profitability of assets.).
(f) Property and Equipment and Depreciation (Except for Leased Assets)
Property and equipment are stated at cost. Depreciation is computed on the straight-line method for the buildings (including fixtures attachedto the buildings), structures and vehicles, and on the declining-balance method for the others, on the estimated useful lives of assets.
The principal estimated useful lives are as follows:
Buildings and structures
3 to 60 years
Machinery and equipment
3 to 17 years(g) Leased Assets
Financial leases other than those that are deemed to transfer the ownership of leased assets to the lessees are accounted for in a similar way topurchases and depreciation for lease assets is computed under the straight-line method with zero residual value over the lease term.
Financial leases other than those that are deemed to transfer the ownership of leased assets to the lessees, which commenced in fiscal years
beginning prior to April 1, 2008, are accounted for in a similar way to operating leases.
(h) Accrued Retirement Benefits
The Company and certain domestic consolidated subsidiaries have retirement benefit plans for their employees. Such benefits are provided
through the unfunded lump-sum severance indemnity plan and the funded noncontributory pension plan.
The amount of retirement benefits are determined on the basis of length of service, basic salary and certain other factors at the time oftermination of employment.
Allowance for retirement benefits has been provided for employees’ retirement benefits, based on the amount of projected benefit obligation
reduced by pension plan assets at fair value at the balance sheet date.
Actuarial gains and losses are amortized by the straight-line method over a period of 13 years, which is within the estimated averageremaining years of service of the Companies’ employees. The amortization of such gains and losses is recognized effective the year subsequent
to the year in which they are incurred. Prior service costs are amortized in the fiscal year in which they are incurred.
Certain consolidated subsidiaries also have a severance indemnity plan for directors and corporate auditors, whose accrued severance
indemnities are stated at 100% of the amount which is computed according to internal rules.

25

(i) Income Taxes
Deferred income taxes are recognized by the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities
are determined based on difference of between financial reporting and the tax basis of the assets and liabilities, and are measured using theenacted tax rate and laws that will be in effect when the differences are expected to reverse.
(j) Goodwill
Goodwill amortized over a period of 5 years by the straight-line method. If the economic useful life can be estimated, the useful life is used as
the amortization period.
(k) Per Share Information
Basic net income per share is computed on the basis of the weighted-average number of shares of common stock outstanding for the period.
Diluted net income per share is computed on the basis of the weighted-average number of shares of common stock outstanding during eachyear after giving effect to the dilutive potential of the shares of common stock to be issued upon the conversion of convertible bonds andexercise of stock acquisition rights.
Cash dividends per share are dividends applicable to the respective years including dividends to be paid after the end of the year.
(l) Translation of Foreign Currencies
All monetary assets and liabilities denominated in foreign currencies are translated into Japanese yen at the exchange rate at the balance sheet
date. Revenue and expenses are translated at the rate of exchange prevailing when transactions are made.
Foreign currency financial statements amounts of overseas consolidated subsidiaries are translated into Japanese yen at the exchange rate
for prevailing at the respective balance sheet dates of those subsidiaries for assets and liabilities, and at the historical exchange rate for net
assets. All income and expense amounts are translated at the average rate of exchange during the fiscal year of those subsidiaries.
The resulting translation adjustments are included in net assets as translation adjustments.

3. Changes of accounting policies(a) Accounting Standard for Valuation of Inventory
Effective the year ended March 31, 2009, the Company and its domestic consolidated subsidiaries have adopted a new accounting standard forthe measurement of inventories (Accounting Standards Board of Japan (ASBJ) Statement No.9 issued on July 5,2006).
There was no effect of this change on the consolidated financial statements for the year ended March 31, 2009.
(b) Accounting Standard for Lease Transaction
Effective the year ended March 31, 2009, the Company and its domestic consolidated subsidiaries have adopted a new accounting standard forlease transactions (Accounting Standards Board of Japan (ASBJ) Statement No. 13 issued on June 17, 1993, revised on March 30, 2007) and the
new guidance on accounting standard for lease transactions (ASBJ Guidance No. 16 of January 18, 1994 (Japanese Institute of Certified Public
Accountants, Committee on Accounting Systems); revised March 30, 2007). Financial leases other than those that are deemed to transfer theownership of leased assets to the lessees are accounted for in a similar way to purchase.
Among financial leases other than those that are deemed to transfer the ownership of leased assets to the lessees, which commenced infiscal years beginning prior to April 1, 2008 , are accounted for in a similar way to operating leases.
The effect of this change on the consolidated financial statements was immaterial for the year ended March 31, 2009.

4. Supplementary Information
Effective the year ended March 31, 2009, the Company and its domestic consolidated subsidiaries have changed the useful lives of somemachinery and equipment after reviewing the current usage of machinery and equipment with the revised the Corporation Tax Law of Japan.
As a result , the effect of this change on operating income and income before income taxes and minority interests was immaterial for the year
ended March 31, 2009.

2008
Equity security
Bonds and Others

2009
Equity security
Bonds and Others

Millions of yen
2009
2008
¥ 936
¥ 1,020
1,000
504¥ 1,936¥ 1,524

Marketable securities
Non-marketable securities

2009
Equity security
Bonds and Others

26

Acquisition
cost
¥ 877
105
¥ 982

Acquisitioncost$ 8,928
1,068$ 9,996

Thousands of U.S.dollars
Gross
Gross
unrealized
unrealized
gains
losses$ 529$ (814)
—
(183)
$ 529
$ (997)Book
value(Market value)$ 8,643885$ 9,528

Proceed from sales
Gross realized gain
Gross realized loss

Millions of yen
2009
2008
¥ 26
¥—
12
—
(0)
—
¥ 38
¥—

Thousands of
U.S.dollars
2009
$ 265
122
(0)
$ 387

Millions of yen
2009
2008
¥ 34,273¥ 33,214
80,116
74,794
17,952
17,035
3,998
3,801
128
265
4,007
—
¥ 140,474¥ 129,109

Thousands of
U.S.dollars
2009$ 348,906
815,596
182,755
40,7001,303
40,792$ 1,430,052

Millions of yen
2009
2008
¥ 9,600¥ 7,750

Thousands of
U.S.dollars
2009$ 97,730

Millions of yen
2009
2008
¥ 7,000¥7,0004,900
5,000

Thousands of
U.S.dollars
2009$ 71,261
49,883

6. Property and Equipment:
At March31, 2009 and 2008, property and equipment at cost consisted of the following:—

Land
Buildings and structures
Machinery and equipment, vehicle and vessels
Tools, furniture and fixtures
Construction in Progress
Lease assets

7. Short-term Loans and Long-term Debt:
At March31, 2009 and 2008, short-term loans consisted of the following:—

At March 31, 2009 and 2008, long-term debt consisted of the following:—
Thousands of
U.S.dollars
2009$ 9,528
10,181$ 19,709

0.92% bonds due 2009
Convertible bond due 2012
1.25% to 2.51% loans from banks and insurance companies:
UnsecuredLess current portion

The following is a summary of marketable securities included in investment securities, at March 31, 2009 and 2008.
Millions of yen
Gross
Gross
unrealized
unrealized
gains
losses¥ 52¥ (80)—(18)¥ 52¥ (98)

Book
value(Market value)¥ 1,01010¥ 1,020

The proceeds from sales of , and gross realized gain and loss on , other securities for the years at March 31,2009 and 2008 are summarized as follows.

0.90% to 1.50% unsecured loans from banks
5. Investment Securities
The carrying amounts of investment securities at March 31, 2009 and 2008, consisted of the following:—

Acquisition
cost
¥ 843
10
¥ 853

Millions of yen
Gross
Gross
unrealized
unrealized
gains
losses¥ 206¥ (39)0—¥ 206¥ (39)

34,78846,688(8,368)¥ 38,320

30,15842,158(4,948)¥ 37,210

354,149475,293(85,188)$ 390,105

Book
value
(Market value)
¥ 849
87
¥ 936

27

The annual maturities of long-term debt at March 31, 2009 are as follows:—
Year ending
March 31
2010
2011
2012
2013
2014
There after

Millions of yen¥ 8,368
6,518
8,101
9,388
7,698
6,615

10. Contingent Liabilities:
At March 31, 2009 and 2008, contingent liabilities were as follows:

Thousands of
U.S.dollars$ 85,188
66,35482,47095,57278,367
67,342

Guarantees of lease obligation for a non-consolidated subsidiary
Buyback obligations associated with securitization of receivables
Recourse obligation associated with securitization of guarantee deposits

At March 31,2009, the Company has committed line and overdraft contracts with twelve banks aggregating ¥22,550 million ($229,563 thousand).
Of the total credit limit, ¥8,100 million ($ 82,459 thousand) was used as the above short-term and long-term borrowing, and the rest ¥14,450 million($ 147,104 thousand) was unused.

8. Accrued Retirement Benefit:
The following table sets forth the changes in benefit obligation, plan assets and funded status of the Company and its certain subsidiaries at March
31, 2009 and 2008.
Thousands ofMillions of yen
U.S.dollars
2009
2008
2009
Benefit obligation at the end of year¥(24,302)¥ (24,208)$ (247,399)
Fair value of plan assets at the end of the year
10,45913,800106,475
Unfunded retirement benefit obligation(13,843)(10,408)(140,924)
Unrecognized actuarial loss
6,400
2,730
65,153
Net retirement benefit obligation(7,443)(7,678)(75,771)
Prepaid pension cost
2,048
1,657
20,849Accrued retirement benefit¥ (9,491)¥ (9,335)$ (96,620)
Retirement benefit costs of the Company and its certain subsidiaries included the following components for the year ended March 31, 2009, 2008
and 2007.
Thousands ofMillions of yen
U.S.dollars
2009
2008
2007
2009
Service cost
¥ 1,182¥ 1,141¥ 1,355$ 12,033
Interest cost
585
600
612
5,955
Expected return on plan assets
(402)
(523)
(543)
(4,092)
Amortization:
Recognized actuarial loss
321
(21)
(136)
3,268
Net periodic benefit cost
¥ 1,686¥ 1,197¥ 1,288$ 17,164

Discount rate
Expected rate of return on fund assets
Amortization period of prior service costs
Amortization period of actuarial losses

2009
Straight-line
basis
2.5%
3.0%
1year
13years

2008
Straight-line
basis
2.5%
3.0%
1 year13 years

2007
Straight-line
basis
2.5%
3.0%
1 year14 years

9. Pledged Assets:
The following assets were pledged as collateral as at March 31, 2009 and 2008—Land
Buildings
VehiclesInvestment securities

Millions of yen
2009
2008
¥ 2,393¥ 2,393
952
964
1
3
10
10
¥ 3,356¥ 3,370

Thousands of
U.S.dollars
2009$ 24,361
9,692
10
102
$ 34,165

Millions of yen
2009
2008
¥ 100
¥ 100

Thousands of
U.S.dollars
2009$ 1,018

Obligations which were secured on the above assets were as follows:—

Long-term debt, including current portion

28

Thousands of
U.S.dollars
2009
$ 153
5,996
1,527
$ 7,676

11. Lease:
Financial leases other than those that are deemed to transfer the ownership of leased assets to the lessees, which commenced in fiscal years
beginning prior to April 1, 2008, are accounted for in a similar way to operating leases.
Proforma information of leased property under financial leases other than those that are deemed to transfer the ownership of leased assets tothe lessees on an “as if capitalized” basis for the years ended March 31, 2009 and 2008 were as follows:
Thousands ofMillions of yen
U.S.dollars
2009
2009
Purchase
Accumulated
Accumulated
cost
depreciation
impairment loss
Book value
Book value
Machinery and equipment¥ 11,120¥ 5,555¥—¥ 5,565$ 56,653
Tools, furniture and fixtures
12,303
6,096
185
6,022
61,305¥ 23,423¥ 11,651¥ 185¥ 11,587$ 117,958

Machinery and equipment
Tools, furniture and fixtures

Purchasecost¥ 13,461
14,486¥ 27,947

Millions of yen
2008
Accumulated
Accumulated
depreciation
impairment loss
¥ 5,087
¥—
6,385
185
¥ 11,472¥ 185

Book value¥ 8,374
7,916¥ 16,290

Millions of yen
2009
2008
¥ 3,658¥ 4,809
8,328
12,959¥ 11,986¥ 17,768

Thousands of
U.S.dollars
2009$ 37,239
84,781$ 122,020

At March 31, 2009 and 2008, obligations under finance leases were as follows:

Due within one year
Due after one year

Assumption used in the accounting for the defined benefit plans for the year ended March 31, 2009, 2008 and 2007 is as follows:

Method of attributing benefit to periods of service

Millions of yen
2009
2008
¥ 15
¥0
589
302
150
—
¥ 754
¥ 302

At March 31, 2009 and 2008, obligations under non-cancelable operating leases were as follows:

Due within one year
Due after one year

Millions of yen
2009
2008
¥ 4,053¥ 1,554
39,56812,935¥ 43,621¥ 14,489

Thousands of
U.S.dollars
2009$ 41,260
402,810$ 444,070

12. Net Assets:
The Japan Companies Act provides that an amount equal to at least 10% of the amounts to be disbursed as distributions of earnings be
appropriated to the legal reserve until such reserve and additional paid-in capital equals 25% of the common stock account. The Japan Companies
Act also stipulates that, on condition that the sum of the additional paid-in capital and the legal reserve exceeds 25% of the common stock account,
the amount of any such excess is available for appropriation by resolution of the shareholders.
The retained earnings account in the accompanying consolidated financial statements at March 31, 2009, included the Company’s legal reserveof ¥1,506 million ($15,331 thousand).

13. Stock Option Plans:
The stock option plans of the Company approved by the shareholders in accordance with the Japan Companies Act at March 31, 2009 were as
follows:

29

(1)Description of stock options

Date of approval by shareholders
Grantees
Shares with warrants granted
Number of shareswith warrants granted
Option price per warrant
Exercise period

2007 Stock
options(1st)June 28, 2007
10 directors
3 auditors
Common stock2007 Stock
options(2nd)June 28, 2007
9 operating
officers
Common stock2008 Stock
options(4th)June 27, 2008
10 directors
3 auditors
Common stock2008 Stock
options(5th)June 27, 2008
10 operating
officers
Common stock

61,000 shares

18,000 shares

71,000 shares

22,000 shares¥1
July 21, 2007 June 30, 2027

¥1
July 21, 2007 June 30, 2027

¥1
July 2, 2008 June 30, 2028

¥1
July 2, 2008 June 30, 2028

(2) Changes in the number of stock options
The following describes changes in the number of stock options that existed during the year ended March 31, 2009. The number of stock
options is translated into the number of shares.
2007 Stock
options(1st)Share subscription rights
which are not yet vested (shares):
At March 31 , 2008
GrantedForfeited
VestedBalance of options not vested
Share subscription rights whichhave already been vested (shares):
At March 31 , 2008
VestedExercised
Forfeited
Balance of options not vested

2007 Stock
options(2nd)2008 Stock
options(4th)2008 Stock
options(5th)61,000———61,00018,000——2,000
16,000—71,000——71,000—22,000——22,000

—
—
—
—
—

—
2,000
2,000
—
—

—
—
—
—
—

—
—
—
—
—

(1) Significant components of deferred tax assets and liabilities at March 31, 2009 and 2008 were as follows:

Deferred tax assets:
Accrued severance indemnities to employees
Accrued bonuses to employees
Impairment losses
Loss carry forward
Loss on revaluation of landSocial insurance premium
Accrued enterprise tax
Loss on revaluation of golf club membership
Other
Gross deferred tax assets
Less: valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Reserve for reduction in costs of fixed assets
Net unrealized holding gains on other securities
Other
Gross deferred tax liabilities
Net deferred tax assets

30

Statutory tax rate
Adjustment:
Non-deductible expenses
Inhabitants’ per capita taxes
Non-taxable dividend income
Other
Income tax rate as a percentage of income before income taxes and minority interests

2009
40.6%

2008
40.6%

1.6
3.3
(2.0)
2.1
45.6%

1.8
2.9
(0.8)
2.6
47.1%

15. Business Combination Related:
Previous consolidated fiscal year (from April 1, 2007 to March 31, 2008)(The application of purchase method)(1) Name of company subject to business combination and type of business acquired from the company, reasons , date , and legal form of
the business combination , and name of company resulting from the business combinationa. Name of company subject to business combination and type of business acquired from the company
Name of company subject to business combination
A Line Amano Co., Ltd
Type of business acquired from the company
Transportation of building materials etc
b. Reasons for the business combination
A Line Amano Co., Ltd has strong capabilities in housing logistics service and a principal customer base of major housing and building
material manufacturers. The Company is integrating the business to establish a housing logistics business as a new growth business of the
Senko Group by leveraging its customer base, human resources, and transportation capabilities to the maximum.

14. Income Taxes:
The Company and its subsidiaries are subject to several taxes based on income, which in the aggregate resulted in a normal effective statutory tax
rates of approximately 40.6% for the years ended March31, 2009 and 2008.

Millions of yen
2009
2008

(2) Reconciliation of the statutory effective income tax rate and the income tax rate as a percentage of income before income taxes and minority
interests at March 31, 2009 and 2008 were as follows:

Thousands of
U.S.dollars
2009¥ 4,702
1,116
676
606
351
158
114
106
688
8,517
(1,005)7,512¥ 4,721
1,105
698
189
351
175
144
—
807
8,190
(295)
7,895

$ 47,867
11,361
6,882
6,169
3,573
1,608
1,161
1,079
7,005
86,705(10,231)76,474

(983)
—
(220)
(1,203)¥ 6,309

(985)
(69)
(185)
(1,239)¥ 6,656(10,007)—(2,240)(12,247)$ 64,227c. Date of the business combination
July 31 , 2007
d. Legal form of the business combination and name of company resulting from the business combination
Legal form of the business combination
Acceptance of business transfer
Name of company resulting from the business combination
Senko A Line Amano Co., Ltd(consolidated subsidiary of the Company)(2) Period of performance of acquired business reported in the consolidated financial statements
From August 1, 2007 to March 31, 2008
(3) Cost of acquired business
Cost of acquired business¥1,365 million(4) The amount of goodwill recorded , reasons for recording goodwill , and depreciation method and period of goodwill
Amount of goodwill recorded¥ 900 million
Reasons for recording goodwill
As the mark-to-market net asset value at the time of the business combination was lower
than the acquisition cost , the difference between the two values was recognized as goodwill.
Depreciation method and period
To be depreciated over a 20-year period using the straight-line method(5) The amount and breakdown of assets received on the date of the business combination

Structures
Vehicles and others

Millions of yen
¥ 11
196
¥ 207

Current consolidated fiscal year (from April 1, 2008 to March 31, 2009 )Not available3116. Segment Information
Business segment information of the Company and its consolidated subsidiaries for the years ended March 31, 2009 and 2008 is summarized as follows:

Consolidated Subsidiaries and Affiliated Companies (As of June 30, 2009)

Millions of yen
2009a.

Transport
Operating revenues and operating income:Customers¥ 123,964
Intersegment
3,191
Total operating revenues
127,155
Operating costs and expenses
124,329
Operating income¥ 2,826b. Assets, depreciation and capital expenditures;
Assets¥ 49,498
Depreciation
1,432
Capital expenditures
3,009

Retail Distribution
and Processing

OthersTotal

Elimination or
Corporate

Consolidated¥ 66,619
3,990
70,60968,500¥ 2,109¥ 22,076
16,10038,17637,427¥ 749¥ 212,659
23,281
235,940
230,256¥ 5,684¥—(23,281)(23,281)(23,161)¥ (120)¥ 212,659—
212,659
207,095¥ 5,564¥ 89,345
2,318
7,058

¥ 8,168
144
398¥ 147,011
3,894
10,465¥ 7,201138
1,303¥ 154,212
4,032
11,768Elimination or
Corporate

Consolidated

Millions of yen
2008a.

Transport
Operating revenues and operating income:Customers¥ 124,954
Intersegment
3,250
Total operating revenues
128,204
Operating costs and expenses
125,161
Operating income¥ 3,043b. Assets, depreciation and capital expenditures;
Assets¥ 49,263
Depreciation
1,210
Capital expenditures
2,409

Retail Distribution
and Processing

OthersTotal¥ 61,913
3,666
65,57963,077¥ 2,502¥ 17,427
14,256
31,68331,005¥ 678¥ 204,294
21,172
225,466
219,243¥ 6,223¥—(21,172)(21,172)(21,006)¥ (166)¥ 204,294—
204,294
198,237¥ 6,057¥ 77,309
1,958
3,338

¥ 7,945
111
303¥ 134,517
3,279
6,050

¥ 9,54861
419¥ 144,065
3,340
6,469

Elimination or
Corporate

Consolidated

Thousands of U.S. dollars
2009a.

Transport
Operating revenues and operating income:Customers$ 1,261,977
Intersegment
32,485
Total operating revenues
1,294,462
Operating costs and expenses
1,265,693
Operating income$ 28,769

b. Assets, depreciation and capital expenditures;
Assets$ 503,899
Depreciation
14,578
Capital expenditures
30,632Retail Distribution
and Processing

OthersTotal$ 678,194
40,619718,813697,343$ 21,470$ 224,738
163,901
388,639
381,014$ 7,625$ 2,164,909
237,0052,401,914
2,344,050$ 57,864$—(237,005)(237,005)(235,783)$ (1,222)$ 2,164,909—
2,164,909
2,108,267$ 56,642$ 909,549
23,59871,852$ 83,152
1,466
4,052

$ 1,496,600
39,642
106,536$ 73,307
1,405
13,265$ 1,569,907
41,047
119,801

17. Subsequent Event
Shareholders approved the following appropriation of retained earning at the annual meeting held on June 26, 2009

Cash dividends

32

Millions of yen¥ 439

Thousands of
U.S.dollars$ 4,469

Company Name

Paid-in Capital Equity Ownership

Senko Trading Co., Ltd.
¥300 Milion
Senko Insurance Services Co., Ltd.
¥30 Million
Senko Information System Co., Ltd.
¥60 Million
Logi Solution Co., Ltd.
¥30 Million
Senko Moving Plaza Co., Ltd.
¥60 Milion
Senko A Line Amano Co., Ltd.
¥300 Million
Tokyo Nohin Daiko Co., Ltd.
¥525 Million
Inui Transport Co., Ltd.
¥385.5 Million
Sapporo Senko Transport Co., Ltd.
¥30 Milion
Tohoku Senko Transport Co., Ltd.
¥30 Million
Kanto Senko Transport Co., Ltd.
¥90 Million
Saitama Senko Transport Co., Ltd.
¥50 Million
Chiba Senko Transport Co., Ltd.
¥30 Million
Senko Fashion Logistics Co., Ltd.
¥30 Million
Kashiwa Senko Transport Co., Ltd.
¥30 Million
Kanagawa Senko Transport Co., Ltd.
¥10 Million
Hokuriku Senko Transport Co., Ltd.
¥20 Million
Fuji Senko Transport Co., Ltd.
¥30 Milion
Daito Senko Apollo Co., Ltd.
¥10 Million
Tokai Senko Transport Co., Ltd.
¥30 Million
Toyohashi Senko Transport Co., Ltd.
¥40 Million
Mie Senko Logistics Co., Ltd.
¥10 Million
Shiga Senko Transport Co., Ltd.
¥30 Million
Osaka Senko Transport Co., Ltd.
¥90 Million
Hanshin Senko Transport Co., Ltd.
¥90 Million
Okayama Senko Transport Co., Ltd.
¥80 Million
Sankyo Freight Co., Ltd.
¥10 Million
Sanyo Senko Transport Co., Ltd.
¥20 Million
Chushikoku Logistics Co., Ltd.
¥90 Million
Shikoku Reefer Transport and Warehousing Co., Ltd.
¥50 Million
Fukuoka Senko Transport Co., Ltd.
¥50 Million
Minami Kyushu Senko Co., Ltd.
¥25 Million
Miyazaki Senko Transport Co., Ltd.
¥90 Million
Miyazaki Senko Apollo Co., Ltd.
¥15 Million
Senko Foods Co., Ltd.
¥90 Million
S-TAFF Co., Ltd.
¥45 Million
Guangzhou Senko Logistics Co.,Ltd
200 thousand USD
Senko International Logistics Pte, Ltd.
860 thousand SGD
Asics Phisical Distribution Corporation¥300 Million
DFTZ Best International Trade
1.8 Million USD

100.00%100.00%100.00%90.00%
100.00%100.00%65.90%
51.00%
100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%95.00%
100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%20.00%
33.00%

Location
Tokyo
Tokyo
Osaka
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
SapporoMiyagi
Ibaraki
Saitama
Chiba
Tokyo
Chiba
Kanagawa
Fukui
Shizuoka
Shizuoka
Aichi
Aichi
Mie
Shiga
Osaka
Hyogo
Okayama
Hiroshima
Yamaguchi
KagawaKagawaFukuoka
Kumamoto
MiyazakiMiyazaki
Osaka
Osaka
Guangzhou(China)
Singapore
Hyogo
Dalian(China)

Main Business
Sales of petroleum-related products, information equipment and foodNonlife insurance agent, Life insurance soliciting
Information processing
Third Party Logistics(3PL) Business, Logistics Consulting
Trucking, Moving services
Trucking, Warehousing, In-factory work
Trucking, Distribution Processing and delivery services, Warehousing
Trucking, Moving services
Trucking, In-factory work, Moving services
Trucking, In-factory work
Trucking, Warehousing, In-factory work, Vehicle maintenance, Moving services
Trucking, In-factory work, Moving services, Vehicle maintenance
Trucking, In-factory work, Moving services, Vehicle maintenance
Trucking, In-factory work
Trucking, In-factory work, Moving services
Trucking, In-factory work, Moving services
Trucking, In-factory work
Trucking, In-factory work
In-factory work, Moving services
Trucking, In-factory work
Trucking, In-factory work, Moving services
In-factory work, General worker dispatch business, Trucking
Trucking, In-factory work
Trucking, In-factory work, Moving services
Trucking, In-factory work, Moving services
Trucking, Warehousing, In-factory work
Trucking
Trucking
Trucking, Warehousing, In-factory work
Trucking, Warehousing
Trucking
Trucking, In-factory work
Trucking, Vehicle maintenanceIn-factory work
Restaurant business
General worker dispatch business, In-factory work
International freight forwarding, In-factory work, Warehousing
Customs clearing and forwarding, Warehousing
Trucking, Warehousing
International freight forwarding, Warehousing

Corporate Data (As of July 31, 2009)
Date of Establishment:
July 1946
Paid-in Capital:¥18,345,643,751
Authorized Shares:
294,999,000
Outstanding Shares:
111,989,476
Number of Shareholders: 6,998
Stock Listing:Tokyo Stock Exchange
Osaka Securities Exchange
Transfer Agent:
Mitsubishi UFJ Trust andBanking Corporation
4-5, Marunouchi, 1-chome Chiyoda-ku,
Tokyo 100-8212, Japan

Network:(As of July 31, 2009)

Head Office
Housing Distribution
Sales Department
East Japan Sales DivisionMarket Development
Division
Chubu Sales Department

Represents Branches
and Departments

Chemicals Distribution
Sales Department
Logistics Sales Department

Branches:

Sapporo, Sapporo Minami, Sendai, Sendai Kita, Ibaraki, Saitama, Omiya, Saitama Minami, Kashiwa, Tokyo,
Higashi Tokyo, Kanagawa, Kanto Jyutaku, Chiba, Shizuoka Higashi, Shizuoka Nishi, Nagoya, Komaki, Mie,
Keiji, Keiji Higashi, Osaka, Hanshin, Minami Osaka, Nara, Okayama, Hiroshima, Yamaguchi, Kyushu, Kita Kyushu,
Minami Kyushu, Nobeoka

Departments:

Minami Kanto Operation Center, Chubu Operation Center, Kansai Operation Center, Kyushu Operation Center,
International Business, Marine Transport, Railway Forwarding, Air Cargo & KYN (Middle and long distanceTransport Network)33