TRANSPORTA
WAREHOUSIINTERNATIO
DISTRIBUTIOCONSULTING
TRANSPORTA
WAREHOUSIINTERNATIO
DISTRIBUTIO
Annual Report 2010

For the year ended March 31, 2010

SENKO Co., Ltd.

Logistics of the Future Logistics of the Future Logisti

SENKO Co., Ltd.
Contact : Public Relations Division, President Office
Umeda Sky Bldg., Tower West, 1-30, Oyodonaka 1-chome, Kita-ku, Osaka 531-6115, Japan
Tel: +81 6 6440 5156

Fax: +81 6 6440 5148

URL http: //www.senko.co.jp/en/
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, 2010, Senko boasted a national network in Japan of 321 offices, 3,174
vehicles, 19 owned and chartered ships, and 2,015,977 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
Outline of New Medium-term Business Plan
Review of Operations
Transport
Integrated Retail Logistics
Others
Review of Operations by Product Category
Corporate Social Responsibility
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
Stock Information
Board of Directors and Corporate Auditors, Executive Officers
Corporate Data
Domestic and Global Network
Consolidated Subsidiaries and Affiliated Companies

2009

2010

¥227,692¥212,659$2,447,248

Operating income

6,150

5,564

66,100Net income

2,946

2,848

31,664

Total assets

168,131

154,212

1,807,083

Net assets

55,12352,130592,466¥26.83¥25.95

$0.29

8.00

8.00

0.08

489.99470.48

5.26

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.

2010

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 ¥93.04 to U.S.$1 on
March 31, 2010.

1
2
4
6
7
7
8
10
14
17
18
20
21
22
23
31
32
32
33
33

Cautionary Statement with Respect to Forward-Looking Statements

Operating revenues
250(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

06

07

08

09

10

0

06

07

08

09

10

0

06

07

08

09

10

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

Significant results have been achieved
Overview of the Fiscal Year
The Japanese economy saw a slowdown in the rate of deterioration ineconomic activity thanks to the economic policies introduced by thegovernment but the worsening in the employment situation and thesluggishness in consumer spending meant that uncertainty about theoutlook for the future continued.
In the transport and distribution sector, the cargo volume, particularly inexport cargoes, showed an underlying improvement in tone but domesticcargo volumes continued in a declining trend and the operating
environment remained difficult.
Against this background, the Company entered the third and final year of its three-year business plan
which aims at the establishment of “Logistics Information Company” by providing “logistical SCM(supply-chain management), and making progress with business development centered on volumeretailers and retail distribution by opening its “Funabashi Fashion Logistics Center” in Funabashi City,
Chiba Prefecture in June and its “North-Kanto Logistics Center” in Ota City, Gunma Prefecture inAugust. Furthermore, the Company has positively employed M&A as a means to developing new
business areas and moved to expand the scope of its operations by welcoming the household goods
wholesaler “Marufuji Co., Ltd.” into the Company in July and the department store distribution
specialist “Esaka Logistics Service Co., Ltd.” and “Hanshin Transportation Co., Ltd.” in October.
Consequently, consolidated operating revenues, despite the decline in existing cargo volumes, recorded
growth of 7.1% to ¥227,692 million thanks to the impact of additional revenues deriving from the M&A
contribution.
Profits, on the other hand, rose at both the operating and net levels as a result of cost-cutting andbusiness review measures taken, and so consolidated operating income rose 10.5% to ¥6,150 million,
and net income grew 3.4% to ¥2,946 million.

in the final year of the 3-year medium-term business plan
Distribution of earnings
For the distribution of earnings, the Company has a fundamental policy of paying a stable dividend
while setting the dividend at a level that reflects changes in our performance. The aim is to increase
earnings that are returned to shareholders. At the same time, the dividend takes into account the needto retain the amount of earnings needed to fund growth in the future and strengthen our operations.
For the fiscal year that ended in March 2010, based on results of operations and other factors, theannual dividend was ¥8 per share, which is the sum of interim and year-end payments of ¥4 per share.

Developing new markets under our new medium-term business plan
Although the upturn in exports from Japan is expected to continue, the recovery in domestic demand
will probably remain only moderate. In this environment, competition in the logistics industry is likely
to become even more intense. To succeed, the Company will further increase its commitment tobuilding a logistics system with outstanding quality and efficiency.
In fiscal 2011, the Company has started a three-year medium-term business plan centered on the themeof “Moving Global.” Our objective is to establish a presence in new markets by providing services withexcellent quality and a high cost-performance ratio to customers in Japan and other countries. Other
goals are improving the skills, motivation and health of the group’s workforce. The Company will also
remain dedicated to corporate social responsibility (CSR) activities with three priorities: compliance,
environmental preservation and safety.
We look forward to the continued support of our shareholders.

September 2010

Yasuhisa Fukuda
President and Representative Director23Outline of New Medium-term Business Plan
Group Vision

Goals of Medium-Term Business Plan
Scale
Operating Revenues:

300 billion yen

・Aim at net sales of 300 billion yen by expanding market share and business field, andexpanding sales from the following businesses by 72.0 billion yen:・Physical distribution center business, international logistics business, retail-related
business, 3PL (Third-Party Logistics) business.
・Promote mergers and acquisitions to gain synergistic effect in business.

Profitability
Operating Income:
The Senko Group aims to become a logistics and information company that provides high-quality services with low costs
in relation to benefits on a global scale. This goal includes measures to coexist with society and increase the commitmentof group employees to achieve growth.

Group Slogan

9.0 billion yen(Billions of yen)

227.7

FY2010300.0

FY2012(Billions of yen)

9.0
6.2

(Operating income margin: 3%)・Ordinary Income : 8.5 billion yen

Stability

Net Income : 4.3 billion yen

1.0

D/E ratio: less than
Dividends: Aim to implement profit sharing dividends linked to group performance inaddition to existing stable dividends.

FY2010FY2012

1.1

less than

FY2010FY2012

1.0

Business Strategy
1

Break into new “Overseas Markets”

2

Take proactive action towards “Mergers & Acquisitions” and the need for “Third-Party Logistics”

3

Expand operations in Physical Distribution BusinessGoing beyond logistics

4

Expand Commerce & Trading Business

Provide customers with high-quality service within the framework of an existing logistics company.

5

Expand market share and business field with a more varied sales menu

Going beyond logistics to move the world and revolutionize business.

Move the world
Conduct a “global” business with social consciousness.

Revolutionize business
Offer customers new value by cultivating an awareness of self-development in employees.

Strategic Policies by Business
Retail Product Logistics Businesses
Developing Physical Distribution Business overseas, deepening penetration of chain-store distribution, expansion in
fashion logistics, etc.

Medium-Term Business Policy

41

Meet the needs of customers at home and abroad, and pioneer new markets.

2

Achieve high overall efficiency as a group and provide customers with high- quality services and superior
cost performance.

3

Live up to our corporate social responsibility by improving the following three pillars of activities:
Compliance, Environmental Preservation, and Safety.

4

Introduce regulations and improve the work environment to promote incentive-based motivation, good
health and skills upgrading of group employees.

5

Advance financial measures focused on preserving financial soundness.

Housing Logistics Business
Provision of overseas logistics operations, establishment of cooperative procurement centers, undertaking installation ofenvironmentally friendly housing, etc.

Chemicals Logictics Business
Promoting Third-Party Logistics, expanding specialist transportation operation, responding to customer needs whensetting up operations overseas, etc.

Commerce & Trading Businesses
Strengthening and expanding wholesale trading, developing businesses that fuse commercial distribution and physicaldistribution, etc.

Other Logictics-related Businesses
Expanding overseas logistics-related business (physical distribution center operations in Kazakhstan and China),
developing moving business, transportation-related and staffing business operations, etc.

5

Review of Operations
Beginning with the fiscal year under review, the Company’s operations have been
categorized into three business segments—transport, integrated retail logistics, andothers—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.

Integrated Retail Logistics
Transport Business Segment
140

This business segment comprises warehousing and infactory work operations.

Business segments

Operating revenues
Business segments(Billions of yen)(Billions of yen)

80

130.6

73.2

124.0
70

120

57.4%

100

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.

32.1%

66.6

60
50

80

40
60

30

Integrated retail logistics
sales composition

40

Transport sales composition
20

Others 1.0%

20
10

Our facilities provide a total storage space of approximately
2,016,000 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.

Others

10.2%
0

09

0

10

09

In-factory processing

10

18.6%

International freight forwarding 3.5%
Marine transport 4.9%
Railway forwarding 3.8%

Truck transport

Warehousing

41.1%

Retail distribution

86.8 %

30.1%

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

24.0
22.1

20

15

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

Business segments

10
10.5%

Others sales composition

Others

10.4%
Petroleum

5

40.9%

Merchandise

48.7%

0

6

09

10

7

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

Sales composition

Housing Logistics

on a product category basis determined based ongroupings of the special cargo and distribution
characteristics of customers. This information is

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

Retail productlogistics
28.8%

Others34.7%

provided as part of our efforts to enable shareholders
Petroleum-related
products and plastics

to gain a better understanding of our business.

Housing logistics
22.3%

14.2%

Change in sales volume of retail product logistics

Retail Product Logistics
This product category is the main pillar of our growthstrategy. This business segment has now grown to a level
where it recorded, in the current fiscal year, highest sales
among the three core business segments. We are acquiring
new customers among chain stores, adapting to customers’
expansion to other locations and regions, and pursuing
outsourcing contracts with apparel companies.
Furthermore, in the medical and pharmaceutical fields, we
also aim to be one of the top third-party logistics (3PL)
companies in the domestic market. Some of our efforts inthis area include developing a nursing care product logistics
service and creating new logistics models for hospitals.

70(Billions of yen)

n 10

m
.0 ti

rs

yea

65.6

ro

es g

60

i
wth

ut 4

Abo

50

41.5
40
30
20

15.5

19.2

22.7

25.8

28.4

31.1

34.1

37.0

37.0

34.1

37.0
37.0
34.1

28.4

10

19.2

0

01

02

03

04

05

06

07

08

09

10

(Fiscal year)

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

8

9

Corporate Social Responsibility
Corporate Governance and Compliance

The transport industry to which Senko’s corebusiness belongs has a highly public mission. It isessential to its continued viability as a company that

Transport and delivery customers•Proper distribution of profits•Transparency in management•Proper disclosure of
information

Senko contribute to society through the practice ofRegional
communities

Customers

Shareholders

This “corporate social responsibility” is also aHigh quality, Low cost, Efficient,
Environmentally conscious, Safe

•Partnerships•Proper information disclosure•Traffic safety•Environmental consciousness•Regional exchange•Social contribution•Proper disclosure of information

Senko <Business Activities>•Maintaining safety and healthin the workplace•Nurturing personnel•Fairness in employment•Legal compliance•Traffic safety•Environmental consciousness

protection, and safety.

Stakeholder Relationships in Senko’s Business

Reinforcing our CSR Initiatives
The Senko Group views regulatory compliance, environmental responsibility, and safety-consciousness as the core elements ofmanaging our business in a socially responsible way in order to create a corporate culture that allows us to gain the trust of allof our stakeholders. A high level of awareness among all of our employees will allow us to contribute to society through ourbusiness activities.

Key Challenges to Tackle
As a legally-compliant
company

Sustainable business operations at the company, legality related to the continuationof the company and organization-building that prioritizes transparency

As an environmentallyfriendly company

Promotion of activities that reduce environmental impact, such as green logistics andprocurement, as a part of our mission to reduce CO 2 emissions as a company

As a company thatprioritizes safety

Quality differentiation in safety measures as a part of responsibility as a logistics
company and part of our core competence

Framework for Advancing Socially Responsible Management

CSR Promotion Committee

Management of internal reporting system
Corporate ethics policy and strict compliance with corporate code of conduct
Head Office/CSR Promotion GroupInternal Controls Committee
Establishment of internal controls system
Head Office Committee

Head Office/General Affairs Division

Risk Management Committee
Overall control of company-wide risk management
Formulation of BCP (business continuation plan)

Construction of risk management systems and prompt response, instrauctions
Formulation of measures to ensure the safety and security of employees posted overseas

Health and Safety Commitee

Head Office/Safety and Environmental Management Division

Formulation of safety objectives
Formulation of items for priority implementation
Environmental Promotion Commitee

Head Office/Safety and Environmental Management Division

Environmental protection activies within our business activities
Activities aimed at reducing our impact upon the environment
Promotion of social-contribution activties

Each division and affiliated companies

Head Office/General Affairs Division

The Senko Group adheres to the principle of operating honestly and fairly. With oversight from the General Affairs Division, eachdepartment ensures that the Senko Standards of Business Conduct, the Senko Group Corporate Ethics Committee, and the Business
Ethics Helpline are known throughout the organization and that these are constantly being reinforced, while the Board of Directors
determines the guidelines and substance of priority items.

Building a Crisis Management Framework

Legal Compliance
Related business laws
Corporate Ethics Committee

Compliance-based Management

In order to ensure transparency and scrupulous regulatory compliance, the Internal Controls Committee has been established as a
dedicated committee within the CSR Promotion Committee, and this committee is strengthening the framework for ensuring the
propriety of this work through means such as establishing internal control rules for financial reporting.

Head Office/Production Management Division

Compliance Committee

Auditing Dept.

Implementing Responsibilities; Auditing and Monitoring
1 The board of directors meets at least once a month todecide upon important matters pertaining to the
Other Internal
Departments
management of the company, in addition to legallyrequired items; it is also seen as an organization for theSubsidiaries and Affiliated Companies
monitoring of business operations. Furthermore, anoperating officer system has been introduced with theidea of functional strengthening of the board through the division of the functions of “management decision-making and monitoring” and“business operations”, thereby strengthening each function and clarifying the responsibilities; at the same time, a corporate management
committee, attended by the operating officers, has been established to verify the status of business operations and bring about moretransparent management.
2 The auditors attend board of directors meetings and observe the business operations of directors from an objective perspective at the sametime as ensuring thorough compliance at both the company and its subsidiaries in partnership with the Auditing Department (thecompany’s internal monitoring department) and accounting auditing bodies, as well as carrying out strict auditing of the company.

Internal Controls for Proper Financial Reporting

The CSR Promotion Committee has six sections, and it seeks to clarify the areas of social responsibility and to improve andintensify our activities.

Commite e Chairman : President of the Company
Head Office : CSR Promotion GroupCSR Promption
Committee

Representative Director

Other Management
Departments at Head Office•Partnership•Environmental consciousness

Corporate Management
Committee

CSR Promotion
Group

Government

Board of Directors

Safety and Environmental
Management Div.

Employees

Board of Corporate Auditors

GeneralAffairs Div.

focused on compliance, global environmental

Cooperative companies andprocurement sources

General Meeting of
Shareholders

President’s OfficeBusiness partners and vendors

started in 2010, and we are pursuing initiatives

The Senko Group, as a business involved in logistics
work of a highly public nature, makes every effort toensure that its corporate activities are thoroughly
compliant with laws, based on awareness that proper
corporate governance is the foundation of our existence
as a business and is regarded as a high priority
managerial issue.

Business
Management Div.

priority in the medium-term business plan that

Corporate Governance Philosophy and Systems

Accounting Auditors

its core business and fulfill its public responsibilities.

•Services

We are compiling a Crisis Response Manual from the standpoint of prioritizing human life, minimizing property damage (economic
losses), quickly resuming business operations, maintaining public confidence, and assisting the local community in the event of an
emergency. We are also formulating and using Risk Management Rules that take a systematic approach to risk and clarify
departmental responsibilities.

Protecting Personal Information
Senko receives personal information about customers in the course of receiving shipment and delivery requests, and therefore it is ourduty to ensure that we have a rigorous information protection system in place, starting with implementing an information security
policy.
At the Senko Group, Senko Information System Co., Ltd., the company responsible for building and operating our logistics
information systems, has been given the PrivacyMark*1, and in October 2009 it also obtained ISO 27001 certification covering all aspects
information security for the organization. In January 2010 Senko Business Support Co., Ltd., which provides accounting and staffing
outsourcing services, also received the PrivacyMark, and as a personal information protection organization authorized by METI, it also
opened a personal information complaint and advice desk in order to resolve complaints quickly and efficiently, as a third-party
institution.
*1 PrivacyMark is a Japanese management system especially for the handling of personal information.

10

11

Corporate Social Responsibility
Environmental Initiatives

Safety Initiatives

Environmental Principles

The Senko Group pursues safety and health initiatives based on a mindset of “respecting human dignity”
and “placing safety above all else.” With the aim of creating self-innovating “powerful workplaces,” and,from this, “outstanding workplaces” that generate new value, we are focusing our efforts on cultivating thehuman resources that are at the core of our workplaces.

To ensure that the earth that we will leave behind for future generations will have a flourishing natural environment, in all of ourbusiness activities we bear in mind environmental measures such as proactive voluntary efforts to reduce energy and resource
consumption as we strive to protect and continuously improve the environment.

Our Basic Position
At the Senko Group, we view global environmental problems as critical issues that are shared by all mankind, and we aspire tocontribute to society as a logistics information company by taking the initiative to establish basic principles to continuously protect
the environment, as a “good corporate citizen.”

Our Basic Principles
1. We will obey legal and regulatory requirements, ordinances, and agreements concerning environmental matters, and we will endeavor toprevent environmental pollution and to protect the environment.
2. We will examine and assess the environmental impact of our business activities, and continuously strive to mitigate the factors that place aburden on the environment.
We will implement new technologies and equipment and reduce the environmental load.
3. We will tirelessly exercise our creativity so that we can offer sophisticated logistics systems that help the environment.
4. In order to adhere to these principles, we will establish a program for advancing environmental initiatives, rules to protect the environment,
and environmental objectives.
5. In order to ensure that these principles are understood by all of our employees, along with conducting environmental training andeducational activities, we will disclose these principles externally and provide relevant information.

Environmental Action Framework
We have adopted an organizational framework for pursuingenvironmental initiatives as a unified group. Environmental issues arereviewed through the Environmental Promotion Committee, andspecific measures are drawn up by the Energy Conservation Committee,
the Green Logistics Promotion Committee, and the Social Contribution
Promotion Committee.

Senko's Environmental Impact
In order to minimize the environmental load arising from our businessactivities to the extent possible, Senko assesses the environmental load
across all of our business activities, quantifying “inputs” such as thevolume of resources and energy used as well as “outputs” such as thevolume of CO2 and waste emitted, and then we work to reduce them.

Energy Conservation Committee
Environment Committee

Secretariat

Building a Unique Safety Management System
Incorporating risk management concepts, Senko is seeking to enhance the level of safety bybuilding our own unique “Senko Safety Management System.”
We have created a system in which risks and other issues in the workplace are uncovered, thesystem is then re-made from the top of the organization, and this in turns leads to improved
day-to-day safety.

Safety Management Initiatives
Day-to-day Safety Initiatives
At Senko, we believe that daily inspections and multiple safety measures will help prevent
accidents, and therefore we have voluntarily implemented safety policies aimed at minimizing
potential risks, such as our “daylight initiative” (daytime running lights), our “HHK initiative”(near-miss awareness), and our “careful driving 3-5-5 campaign” (leaving 3 seconds behind thevehicle in front, stopping 5cm behind the stop line, and leaving more than 5m behind thevehicle in front when stopping).

Social Contribution Promotion Committee
Departments and Branches
Environmental Measures Committee

Safety Education

Head Offices Environmental Measures
Committee (Tokyo and Osaka)Group Companies Environmental
Measures Committee

No more than 5cm between the closest edge of
the white line and the front of the bumper

In order to create self-innovating “powerful workplaces,” and, from this, “outstanding
workplaces” that generate new value, we focus our efforts on cultivating our human resources.
All of our training uses a curriculum that incorporates the themes of improvement andinnovation, and while we aim to foster workplace leaders in every region, we also share thiseducation with personnel at partner companies and with our own temporary staffers and parttime employees in order to ensure that the “Senko Way,” our own technical manual, is instilled
within everyone.
We also conduct safety education activities at our Crefeel Koto traffic safety training center. Crefeel
Koto is one of Japan's leading public traffic safety training centers. Its traffic education zone, which
is roughly 66,000 square meters in size, incorporates such as a basic training area, a hazard
avoidance training area, and a high-speed circuit course. This allows drivers to experience firsthand various traffic scenarios that reflect the dangers they can encounter on public roads.
The facilities are also open to people outside the company to provide safe driver training andeducational programs that are attended by about 10,000 people each year.

12

When stopping at an intersection,
stop within 5cm of the line.

Compliance with Safety Laws and Regulations
To enforce safety management in compliance with laws and regulations, our driver
supervisors and driver supervisor assistants check the health of our drivers and give them
instructions before they depart, and they review the drivers' reports when they return.

Green Logistics Promotion Committee

Careful driving 3-5-5 campaign

Crefeel Koto, opened in 1996, is a
distribution and traffic safety educationand training center offering hands-on
experience that covers a total of 270,000
square meters

13

Financial Review

Performance
Consolidated operating revenues for the fiscal year ended March 2010
increased 7.1% to ¥227,692 million. In the fiscal year under review, therevenues of the main track transport business declined because ofcontinued deterioration in domestic cargo volumes but this revenue
shortfall was offset by revenue growth in the retail product logistics
businesses, centering on volume retailer and retail store revenues, and thecontribution from incremental sales from M&A, resulting in an overall
increase in operating revenues.
In terms of earnings, consolidated operating income expanded 10.5% to¥6,150 million. The major negative factor for earnings in the fiscal year
under review was the decline in domestic cargo volumes but this was
outweighed by a larger decrease in costs as a result of the contribution
from cost-cutting measures and lower fuel costs, resulting in double-digit
growth in earnings being achieved.
Consequently, the operating income margin improved 0.1 percentage point
to 2.7%.
Reflecting the growth in operating income, income before income taxes
and minority interests increased 3.5% to ¥5,421 million. The main reason
for the rate of growth in earnings at this level being lower than that for
operating income was the impact of losses taken on the disposal ofproperty and equipment and expenditure on special reserves for
retirement benefits.

year under review rose ¥6,590 million, or 5.3%, to ¥130,554 million, generating
57.4% of total operating revenues. Although revenues of housing andpetrochemicals and plastics distribution declined in the 1H of the fiscal year in
response to the impact of the economic slowdown which began the year before
last, the rate of decrease in volumes eased into the 2H of the fiscal year underreview and the incremental revenues from the growth in the department store
distribution deriving from M&A also contributed.
The consolidated operating revenues of the integrated retail logistics businesssegment increased ¥6,573 million, or 9.9%, to ¥73,192 million, generating 32.1%
of total operating revenues. The sales benefits from the opening of large-scale
facilities, such as the Funabashi Fashion Logistics Center and the North-Kanto
Logistics Center in the fiscal year under review as well as the consolidation ofsubsidiaries as a result of M&A, such as Tokyo Nohin Daiko and Inui
Transport, made a contribution to revenues.
Operating revenues from the others business segment grew ¥1,870 million, or
8.5%, to ¥23,946 million, generating 10.5% of total operating revenues. The
business segment recorded a decline in revenues due to fall in selling prices in
its petroleum sales operation but its merchandise sales operations benefited
from the contribution made by the newly consolidated Marufuji.

Despite an increase in current income taxes, consolidated net income
increased 3.4% to ¥2,946 million. Consequently, the net income margin
remained almost unchanged at 1.3%.

Performance by Principal Products Category
The Company has three core product categories: retail product logistics(wholesale and retail and medical and pharmaceuticals logistics);
housing; and petroleum-related and plastics. For the fiscal year ended
March 2010, these three core product categories accounted for 65.3% of
total operating revenues.

Performance by Business Segment
By business segment, the transport segment operating revenues for the fiscal

Accounting for 22.3% of operating revenue, housing products can be divided
into distribution services from factories and housing materials distribution
services. During the fiscal year under review, the Company acquired someOperating revenues

Net income

Operating 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)

6

2,500

200

(%)

Consolidated Operating Revenues by Products Handled

new clients but the existing distribution services from factories
and housing materials distribution services businesses declined.
As a result, operating revenues from housing products fell
¥4,880 million, or 8.8%, to ¥50,800 million.

(Units: billions of yen, %)The petroleum-related and plastics product category, which
generated 14.2% of total operating revenues, targeted
expansion of its bulk container comprehensive distribution
system business during the fiscal year under review. This bulk
system uses containers that can hold 16 metric tons of plastic
resin or other materials. After filling the container at thefactory, Senko delivers the container using its rail trucking, andmarine distribution network, unloads the container and returns
the empty container to the customer. Based on large lots, thisdoor-to-door system provides cost, contamination-prevention
and operating efficiency advantages.
Despite these efforts, a sharp decline in distribution volumes
for raw materials for plastics and fabricated products was seen
in response to the global decline in demand. Consequently,
petroleum-related and plastics product operating revenue
decreased ¥3,650 million, or 10.3%, to ¥32,330 million.
The retail product logistics category which contributed 28.8%
of total operating revenues, experienced continued businessexpansion in the retail, medical and pharmaceuticals logistics
fields, which have been achieving high rates of growth inrecent years. Contributing factors to the increase in businessduring the fiscal year under review were the incremental
revenue effects deriving from the consolidation through M&A
of Tokyo Nohin Daiko and the department store distribution
specialist Esaka Logistics Service (the distribution subsidiaryof H2O Retailing Corp.) and Hanshin Transportation as well

Operating income / net
income to operating revenues
4

5

Net income per share

(%)

30

Year ended March 2009

Revenues

Composition

Revenues

Composition

Change% Change

Retail productlogistics

65.6

28.8

41.5

19.5

24.1

58.1

Housing logistics

50.8

22.3

55.7

26.2

(4.9)

(8.8)

Petroleumrelated products,
and plastics

32.3

14.2

36.0

16.9

(3.7)

(10.3)

Chemicals andfertilizers

3.9

1.7

4.4

2.1

(0.5)

(11.4)

Foods

3.7

1.6

3.8

1.8

(0.1)

(2.6)

Electronics
products andmachinery

3.0

1.3

3.1

1.4

(0.1)

(3.2)

Others

68.4

30.1

68.2

32.1

0.2

0.3

Total

227.7

100.0

212.7

100.0

15.0

7.1

Cash dividends per share

Composition of
products handled(Year ended March 2010)

(Yen)

(Yen)

25

Operating income tooperating revenues

Year ended March 2010

8

28.8%

3

Retail product logistics

5,000

150

2,000

4

1,500

3

20

4,000
2
Net income tooperating revenues

3,000

100

1,000

2

500

1

1,000

14

07

08

09

10

0

22.3%

Housing logistics

14.2%

Petroleum-related products
and plastics

34.7%

Others

1

50

06

7
10

2,000

0

15

06

07

08

09

10

0

06

07

08

09

10

0

5

06

07

08

09

10

0

06

07

08

09

10

0

06

07

08

09

10

0

06

07

08

09

10

15

Report of Independent Certified Public Accountants

as increased volumes from the GMS (general merchandising store),discounter and specialist retailer chain sectors and by strong growth being
realized due to the incremental sales deriving from their large-scale capital
expenditure programs. Consequently, retail product logistics operating
revenue soared ¥24,100 million, or 58.1%, to ¥65,630 million, making it thelargest product category in the Company’s portfolio.

Financial Position
Total assets at March 31, 2010 expanded ¥13,919 million, or 9.0%, from theprevious fiscal year, to ¥168,131 million. The growth in total assets can be
attributed to an increase in cash and cash equivalents, trade accounts and notes
receivable and deferred tax assets, etc. deriving from the growth in revenues
and resulting in current assets increasing by approximately ¥10 billion.
Total liabilities at the end of the term under review increased ¥10,926 million,or 10.7%, from the previous fiscal year, to ¥113,008 million. This derived
mainly from an increase of ¥4,352 million in short-term loans and a rise of¥5,199 million in trade accounts and notes payable, etc.
Net assets at the end of the term under review rose ¥2,992 million, or 5.7%,
from the previous fiscal year, to ¥55,123 million, resulting in an equity ratio of
32.0%. The growth in net income for the year resulted in an increase in retained
earnings of approximately ¥2.1 billion and although an increase in minority
interests of ¥822 million drove the equity ratio down 1.5% from a year earlier,
the Company’s net assets continues to improve (increase) steadily.
Moreover, although interest-bearing debt at fiscal year-end rose ¥2,329
million, or 4.1%, from the previous fiscal year, to ¥58,616 million, the ratio ofinterest-bearing debt to total assets improved 1.6 percentage point to 34.9%.
The reason for this is that the increase in net assets was larger than theincrease in interest-bearing debt.

or 57.8%, from the previous fiscal year, to ¥4,963 million and increased its
total warehouse space by 158,900m2 to 2,016,000m2. The Company plansspend a total of ¥6,500 million on capital expenditure in FY3/2011. Most of
this will be spent on the Fukui PD center, the Ibaraki hazardous items
warehouse, the Kanazawa PD center, the Maishima PD center (leased), theShin-Toda PD center (leased), and the SBS Nobeoka office building.
Moreover, depreciation and amortization in the fiscal year under review
increased ¥937 million, or 23.2%, from the previous fiscal year, to ¥4,969
million. For the current fiscal year to March 2011, the Company expects
depreciation and amortization to rise ¥535 million, or 10.8%, from theprevious fiscal year, to ¥5,503 million.

Cash Flows
For the year ended March 31, 2010, net cash provided by operating activitieswas ¥6,120 million. This consisted of cash inflows from income before
income taxes of ¥5,421 million, depreciation and amortization of ¥4,969
million, and an increase of ¥2,035 million in trade payables and cash
outflows from interest payments of ¥1,150 million, an increase in tradereceivables of ¥2,827 million and ¥1,997 million of income taxes paid.
Net cash used in investing activities amounted to ¥2,234 million. This
comprised a cash outflow on acquisitions of property and equipment
totaling ¥2,456 million and other items.
Net cash provided by financing activities amounted to ¥1,164 million. This
comprised cash outflows of ¥1,685 million for the repayment of short-termloans, ¥1,527 million for the repayment of long-term debt, ¥1,065 million for
the repayment of finance lease obligations and ¥878 million for the payment ofdividends, and cash inflow of ¥4,400 million of income from long-term debt.
As a result, cash and cash equivalents at the end of the fiscal year totaled¥14,505 million, increasing ¥2,757 million from the prior fiscal year.

Capital Expenditure and Depreciation and Amortization
Capital expenditure for the fiscal year under review decreased ¥6,805 million,

Total assets

180

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

150

5

120

4

90

60

2
30

10

25

5

30

0

16

3

ROA

1

06

07

08

09

10

0

06

07

08

09

10

0

0

06

07

08

09

10

17

Consolidated Balance Sheets
SENKO Co., Ltd. and Consolidated Subsidiaries
March 31, 2010 and 2009

Thousands of
U.S.dollars

Millions of yen

ASSETS

2010

LIABILITIES AND NET ASSETS

2010

2009

Current assets:

Thousands of
U.S.dollars

Millions of yen

2010

2009

2010

¥ 8,830¥ 9,600$ 94,905

Current portion of long-term debt (Note 6)

6,490

8,368

69,755

Lease obligations

1,087

788

11,683

81

79

871

22,395

17,198240,703

Current liabilities:¥ 14,505

Cash and cash equivalents¥ 11,748$ 155,901

Trade accounts and notes receivable––

Short-term loans (Note 6)

178

37

1,913

30,61024,985328,998

(44)

(17)

(473)

Inventories

1,577

518

16,950

Deferred tax asset (Note 13)

1,933

1,556

20,776

Accrued expenses

6,308

5,556

67,799Prepaid expenses and other current assets

2,686

2,590

28,869Accrued income taxes

1,845

920

19,83051,44541,417552,934

Other current liabilities

4,323

3,968

46,46451,35946,477552,010Non-consolidated subsidiaries and affiliates
OthersLess allowance for doubtful accounts

Total current assets

Trade accounts and notes payable––Non-consolidated subsidiaries and affiliates
OthersTotal current liabilities
973

904

10,458Long-term debt, less current portion (Note 6)

43,29738,320465,359

2,464

1,936

26,483

Lease obligations

3,970

3,159

42,670Accrued retirement benefits (Note 7)

9,907

9,491

106,481

145,186

140,474

1,560,469

Other long-term liabilities

4,475

4,635

48,097Less accumulated depreciation(62,950)(59,019)(676,591)

Net property and equipment

82,23681,455883,878

Contingent liabilities (Note 9)Long-term deferred tax assets (Note 13)

5,007

4,911

53,816

Net assets (Note 11):

Other assets

26,006

23,589279,514

Common stock:
18,346

18,346

197,184

Capital surplus

16,607

16,608

178,493

Retained earnings

19,605

17,520210,716

(772)

(779)

(8,298)Net unrealized holdings gain (loss) on securities

50

(26)

537

Loss on deferred hedges

(23)

—

(247)

Translation adjustments

(4)

(11)

(43)

Stock acquisition rights (Note 12)

80

60

860

Minority interests

1,234

412

13,264

Total net assets

55,12352,130592,466¥ 168,131¥ 154,212$ 1,807,083

Investments in and long-term loans to non-consolidated subsidiaries and affiliates
Investment securities (Notes 4 and 8)
Property and equipment, at cost (Notes 5 and 8)

Authorized––294,999,000 shares
Issued––111,989,476 shares

Less treasury stock, at cost––2,172,362 shares in2010 and 2,189,585 shares in 2009

Total assets¥ 168,131¥ 154,212$ 1,807,083

See the accompanying notes to the consolidated financial statements.

18

Total liabilities and net assets

See the accompanying notes to the consolidated financial statements.

19

Consolidated Statements of Income

Consolidated Statements of Changes in Net Assets

SENKO Co., Ltd. and Consolidated Subsidiaries
Years ended March 31, 2010, 2009 and 2008

Operating revenues

Thousands of
U.S.dollars

Millions of yen

2010

2009

2008

2010

¥ 227,692¥ 212,659¥ 204,294$ 2,447,248

SENKO Co., Ltd. and Consolidated Subsidiaries
Years ended March 31, 2010, 2009 and 2008
Thousands

Operating costs and expenses:
Operating costs of revenues

208,311

196,141

188,300

2,238,940

Selling, general and administrative expenses

13,231

10,954

9,937

142,208

221,542207,095

198,237

2,381,148

6,150

5,564

6,057

66,100Interest and dividend income

1,096

907

739

11,780Interest expenses(1,163)

(933)

(779)

(12,500)

(662)

(301)

(226)

(7,115)

(729)

(327)

(266)

(7,835)

5,421

5,237

5,791

58,265

Operating income
Other income (expenses):

Others, net

Income before income taxes and minority interests
Income taxes (Note 13):
Current

2,801

1,928

2,364

30,105

Deferred

(188)

460

365

(2,021)

2,613

2,388

2,729

28,084

138

(1)

(1)

1,483

¥ 2,848¥ 3,061$ 31,664

Minority interests in loss (gain) of consolidated subsidiaries
Net income¥ 2,946

Per share of common stock
Net income

Yen

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
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, 2010

Millions of Yen
Netunrealized
holding gain
(loss) on
securities

Loss ondeferredhedges¥ (419)
—
—
(306)
8

¥ 291
—
—
—
—

¥ (2)
—
—
—
—

¥ 25
—
—
—
—

¥—
—
—
—
—

¥3
—
—
—
—

¥ 47,954
3,061
(885)
(306)
3

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)

—
—
¥ 18,346
—
—
—
—

—
—
¥ 16,608
—
—
—
(1)

—
—
¥ 17,520
2,946
(878)
—
—

(2)
—
¥ (779)
—
—
(4)
11

—
(124)
¥ (26)
—
—
—
—

—
—
¥—
—
—
—
—

—
(43)
¥ (11)
—
—
—
—

—
34
¥ 60
—
—
—
—

—
409
¥ 412
—
—
—
—

(2)
276
¥ 52,130
2,946
(878)
(4)
10

—
—
¥ 18,346——¥ 16,607

17—¥ 19,605——¥ (772)

—
76
¥ 50

—
(23)
¥ (23)

—
7
¥ (4)

—
20
¥ 80

—
822
¥ 1,23417902¥ 55,123

Thousands of U.S. dollars
Net unrealized
Loss onStockholding gain
Translation acquisition
Minoritydeferred adjustments(loss) on
interests
hedgesrightssecurities

Total
net
assetsNumber ofshares ofcommonstock issued

Commonstock

CapitalsurplusRetainedearnings

111,746————¥ 18,296————¥ 16,559———(5)¥ 13,201
3,061
(885)
—
—

—
—
111,746
—
243
—
—
—

—
—
¥ 18,296
—
50
—
—
—

—
—
¥ 16,554
—
50
—
—
4

—

—

—
—
111,989——————
111,989

Treasurystock(at cost)

U.S.dollars¥ 26.83¥ 25.95¥ 27.70$ 0.29Diluted net income

24.16

23.39

25.82

0.26

Cash dividends applicable to the year

8.00

8.00

8.00

0.09

Commonstock

CapitalsurplusRetainedearnings

Treasurystock(at cost)

Stock
Minority
Translation
adjustment acquisition interests
rightsTotal
netassets$ 197,184$ 178,504$ 188,306$ (8,373)$ (280)$—$ (118)$ 645$ 4,429$ 560,297

Net income——

31,664

—

—

—

—

—

—

31,664

Cash dividends——(9,437)

—

—

—

—

—

—

(9,437)Purchases of treasury stock

—

—

—

(43)

—

—

—

—

—

(43)

Retirement of treasury stock

—

(11)

—

118

—

—

—

—

—

107

—

—

183

—

—

—

—

—

—

183

—

—

—

—

817

(247)

75

215

8,835

9,695

$ 197,184$ 178,493$ 210,716$ (8,298)$ 537$ (247)$ (43)$ 860$ 13,264$ 592,466

Balance at March 31, 2009

Adjustment of retained earnings
for newly consolidated subsidiaries
Other changes
Balance at March 31, 2010

See the accompanying notes to the consolidated financial statements.

See the accompanying notes to the consolidated financial statements.

20

21Notes to the Consolidated Financial Statements

Consolidated Statements of Cash FlowsSENKO Co., Ltd. and Consolidated Subsidiaries
Year ended March 31, 2010, 2009 and 2008

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 (gains) of affiliates
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 and an affiliate
Purchase of shares of newly consolidated subsidiaries
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 (used in) 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

2010

2009

2008

2010

¥ 5,421¥ 5,237¥ 5,791$ 58,265

4,969
331
(17)
(94)
513
(1,096)
1,163(2,827)
(682)
2,035
(727)
8,989
278
(1,150)(1,997)
6,120

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

53,4073,558(183)(1,010)5,514(11,780)
12,500(30,385)(7,330)21,872(7,814)
96,614
2,988(12,360)(21,464)
65,778(2,456)
325
(20)
72
(239)
134
(478)
428
(2,234)(6,852)
351
(690)
59
(195)
3
(18)
208
(7,134)(6,291)
291
(78)
6
(900)
—
—
(908)
(7,880)(26,397)
3,493
(215)
774
(2,569)1,440(5,137)4,600(24,011)(1,685)4,400(1,527)7,000(7,000)(1,065)
(4)
2
(878)
(407)
(1,164)0
2,722
11,74835¥ 14,505

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(18,110)47,291(16,412)75,236(75,236)(11,447)(43)
21(9,437)(4,374)(12,511)
0
29,256126,268377$ 155,901

See the accompanying notes to the consolidated financial statements.

22

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 “Company”) 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, 2010, which was ¥93.04 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 a significant affiliate. 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.

23

(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 Construction Contracts
Effective the year ended March 31, 2010, the Company and its domestic consolidated subsidiaries have adopted a new accounting standard forthe construction contracts (Accounting Standards Board of Japan (ASBJ) Statement No.15 issued on December 27, 2007) and guidance on
accounting standard for construction contracts (ASBJ Statement No.18 issued on December 27, 2007).
Under the new accounting standards and guidance, revenues and costs of software development contracts that commenced on or after
April 1, 2009, of which the percentage of completion can be reliably estimated, are recognized by the percentage-of-completion method. To
estimate the progress of such development projects, the Company measures the percentage of completion by comparing costs incurred to datewith the most recent estimate of total costs required to complete the project (cost to cost basis). The completed contract method continues to be
applied for contracts for which the percentage of completion cannot be reliably estimated.
The effect of this change on the consolidated financial statements was immaterial for the year ended March 31, 2010.
(b) Accounting Standard for Accrued Retirement Benefits
Effective the year ended March 31, 2010, the Company and its domestic consolidated subsidiaries have adopted a revision (No.3) of accounting
standard for accrued retirement benefits (ASBJ Statement No.19 issued on July 31, 2008).
There was no effect of this change on the consolidated financial statements for the year ended March 31, 2010.

Marketable securities
Non-marketable securities

Thousands of
U.S.dollars
2010$ 16,176
10,307$ 26,483

The following is a summary of marketable securities included in investment securities, at March 31, 2010 and 2009.

2010
Equity security
Bonds and Others

24

Acquisitioncost¥ 1,232149¥ 1,381Millions of yen
Gross
Gross
unrealized
unrealized
gains
losses¥ 235¥ (106)0(5)¥ 235¥ (111)2010
Equity security
Bonds and Others

Book
value
(Market value)
¥ 849
87
¥ 936

Acquisitioncost$ 13,242
1,601$ 14,843

Thousands of U.S.dollars
Gross
Gross
unrealized
unrealized
gains
losses$ 2,526$ (1,139)
0(54)$ 2,526$ (1,193)

Book
value
(Market value)$ 14,629
1,547$ 16,176

The proceeds from sales of , and gross realized gain and loss on , other securities for the years at March 31, 2010 and 2009 are summarized as follows.

Proceeds from sales
Gross realized gain
Gross realized loss

Millions of yen
2010
2009
¥ 44
¥ 26
4
12
—
(0)

Thousands of
U.S.dollars
2010
$ 473
43
—

Millions of yen
2010
2009
¥ 35,402¥ 34,273
81,68380,116
18,543
17,952
4,256
3,998
485
128
4,817
4,007
¥ 145,186¥ 140,474

Thousands of
U.S.dollars
2010$ 380,503
877,934
199,301
45,744
5,213
51,774$ 1,560,469

Millions of yen
2010
2009
¥ 8,830¥ 9,600

Thousands of
U.S.dollars
2010$ 94,905

Millions of yen
2010
2009
¥—
¥ 7,000
7,000
—
4,900
4,900

Thousands of
U.S.dollars
2010$—
75,236
52,666

5. Property and Equipment:
At March 31, 2010 and 2009, 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

6. Short-term Loans and Long-term Debt:
At March 31, 2010 and 2009, short-term loans consisted of the following:—

4. Investment Securities
The carrying amounts of investment securities at March 31, 2010 and 2009, consisted of the following:—
Millions of yen
2010
2009
¥ 1,505
¥ 936
959
1,000
¥ 2,464¥ 1,9362009
Equity security
Bonds and Others

Acquisition
cost
¥ 877
105
¥ 982

Millions of yen
Gross
Gross
unrealized
unrealized
gains
losses¥ 52¥ (80)—(18)¥ 52¥ (98)

Book
value(Market value)¥ 1,361144¥ 1,505

0.72% to 0.99% unsecured loans from banks

At March 31, 2010 and 2009, long-term debt consisted of the following:—

0.92% bonds due 2009
1.31% bonds due 2014
Convertible bond due 2012
1.10% to 2.51% loans from banks and insurance companies:
UnsecuredLess current portion

37,88749,787(6,490)¥ 43,297

34,78846,688(8,368)¥ 38,320

407,212535,114(69,755)$ 465,359

On July 20, 2007, the Company issued ¥ 5,000 million ($ 53,740 thousand) of zero coupon convertible bonds with stock acquisition rights due in2012. The stock acquisition rights are exercisable during the period from July 6, 2012 at a conversion price of ¥ 411 ($ 4.42) per share.

25

The annual maturities of long-term debt at March 31, 2010 are as follows:—
Year ending
March 31
2011
2012
2013
2014
2015
There after

Millions of yen¥ 6,490
8,166
9,468
7,718
13,6784,267

9. Contingent Liabilities:
At March 31, 2010 and 2009, contingent liabilities were as follows:

Thousands of
U.S.dollars$ 69,755
87,769101,763
82,953147,01245,862

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, 2010, the Company has committed line and overdraft contracts with twelve banks aggregating ¥ 26,150 million ($ 281,062 thousand).
Of the total credit limit, ¥ 7,600 million ($ 81,685 thousand) was used as the above short-term and long-term borrowing, and the rest ¥ 18,550
million ($ 199,377 thousand) was unused.

7. 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, 2010 and 2009.
Thousands ofMillions of yen
U.S.dollars
2010
2009
2010
Benefit obligation at the end of year
¥ (24,150)¥ (24,302)$ (259,566)
Fair value of plan assets at the end of the year
12,03910,459129,396
Unfunded retirement benefit obligation(12,111)(13,843)(130,170)
Unrecognized actuarial loss
4,459
6,400
47,926
Net retirement benefit obligation(7,652)(7,443)(82,244)
Prepaid pension cost
2,255
2,048
24,237
Accrued retirement benefit¥ (9,907)¥ (9,491)$ (106,481)
Retirement benefit costs of the Company and its certain subsidiaries included the following components for the year ended March 31, 2010, 2009
and 2008.
Thousands ofMillions of yen
U.S.dollars
2010
2009
2008
2010
Service cost
¥ 1,200¥ 1,182¥ 1,141$ 12,898
Interest cost
582
585
600
6,255
Expected return on plan assets
(302)
(402)
(523)
(3,246)
Amortization:
Recognized actuarial loss (gain)
632
321
(21)
6,793
Net periodic benefit cost
¥ 2,112¥ 1,686¥ 1,197$ 22,700

Discount rate
Expected rate of return on fund assets
Amortization period of prior service costs
Amortization period of actuarial gain (loss)

2010
Straight-line
basis
2.5%
3.0%
1 year13 years

2009
Straight-line
basis
2.5%
3.0%
1 year13 years

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

8. Pledged Assets:
The following assets were pledged as collateral as at March 31, 2010 and 2009—Land
Buildings
VehiclesInvestment securities

Millions of yen
2010
2009
¥ 2,392¥ 2,393
844
952
1
1
10
10
¥ 3,247¥ 3,356

Thousands of
U.S.dollars
2010$ 25,709
9,071
11
108
$ 34,899

Millions of yen
2010
2009
¥ 100
¥ 100

Thousands of
U.S.dollars
2010$ 1,075

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

Long-term debt, including current portion

26

Thousands of
U.S.dollars
2010
$ 86
14,9291,612$ 16,627

10. 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, 2010 and 2009 were as follows:
Thousands ofMillions of yen
U.S.dollars
2010
2010
Purchase
Accumulated
Accumulated
cost
depreciation
impairment loss
Book value
Book value
Machinery and equipment¥ 9,191¥ 5,543¥—¥ 3,648$ 39,209
Tools, furniture and fixtures
10,495
6,119
185
4,191
45,045¥ 19,686¥ 11,662¥ 185¥ 7,839$ 84,254

Machinery and equipment
Tools, furniture and fixtures

Purchasecost¥ 11,120
12,303¥ 23,423

Millions of yen
2009
Accumulated
Accumulated
depreciation
impairment loss
¥ 5,555
¥—
6,096
185
¥ 11,651¥ 185

Book value¥ 5,565
6,022¥ 11,587

Millions of yen
2010
2009
¥ 2,875¥ 3,658
5,255
8,328¥ 8,130¥ 11,986

Thousands of
U.S.dollars
2010$ 30,901
56,481$ 87,382

At March 31, 2010 and 2009, 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, 2010, 2009 and 2008 is as follows:

Method of attributing benefit to periods of service

Millions of yen
2010
2009
¥8
¥ 15
1,389
589
150
150
¥ 1,547¥ 754

At March 31, 2010 and 2009, obligations under non-cancelable operating leases were as follows:

Due within one year
Due after one year

Millions of yen
2010
2009
¥ 4,251¥ 4,053
37,16539,568¥ 41,416¥ 43,621

Thousands of
U.S.dollars
2010$ 45,690
399,452$ 445,142

11. 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, 2010, included the Company’s legal reserveof ¥ 1,506 million ($ 16,187 thousand).

12. Stock Option Plans:
The stock option plans of the Company approved by the shareholders in accordance with the Japan Companies Act at March 31, 2010 were as
follows:27

(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, 2010 and 2009 were as follows:(1) Description of stock options
2007 Stock
options(1st)Date of approval by shareholders June 28, 2007
10 directors
Grantees
3 auditors
Shares with warrants granted
Common stock
Number of shares
61,000 shareswith warrants granted
Option price per warrant¥1
July 21, 2007 Exercise period
June 30, 2027

2007 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 stock2009 Stock
options(6th)June 26, 2009
11 directors
4 auditors
Common stock2009 Stock
options(7th)June 26, 2009
12 operating
officers
Common stock

18,000 shares

71,000 shares

22,000 shares

74,000 shares

27,000 shares¥1
July 21, 2007 June 30, 2027

¥1
July 2, 2008 June 30, 2028

¥1
July 2, 2008 June 30, 2028

¥1
July 2, 2009 June 30, 2029

¥1
July 2, 2009 June 30, 2029

(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, 2010. 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 , 2009
GrantedForfeited
VestedBalance of options not vested
Share subscription rights whichhave already been vested (shares):
At March 31 , 2009
VestedExercised
Forfeited
Balance of options not vested

2007 Stock
options(2nd)2008 Stock
options(4th)2008 Stock
options(5th)2009 Stock
options(6th)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

16,000——4,000
12,00071,000——8,000
63,00022,000——5,000
17,000—74,000——74,000—27,000——27,000

—
6,000
6,000
—
—

—
4,000
4,000
—
—

—
8,000
8,000
—
—

—
5,000
5,000
—
—

—
—
—
—
—

—
—
—
—
—

a.

28

Thousands of
U.S.dollars
2010¥ 4,702
1,116
676
606
351
158
114
106
688
8,517
(1,005)
7,512$ 51,859
14,9407,212
12,134
3,773
1,709
1,752
1,161
8,373
102,913(15,230)
87,683

(981)
(35)
(424)
(1,440)¥ 6,718

(983)
—
(220)
(1,203)¥ 6,309(10,544)(376)(4,557)(15,477)$ 72,206

1.6
3.3
(2.0)
2.1
45.6%

Retail Distribution
and Processing

OthersTotal

Elimination or
Corporate

Consolidated¥ 73,192
4,225
77,41775,398¥ 2,019¥ 23,946
11,71335,65934,727¥ 932¥ 227,692
18,897
246,589
240,322¥ 6,267¥—(18,897)(18,897)(18,780)¥ (117)¥ 227,692—
227,692
221,542¥ 6,150¥ 89,610
2,805
2,408

¥ 14,644
171
205¥ 160,340
4,627
3,556

¥ 7,791342
1,407¥ 168,131
4,969
4,963

Elimination or
Corporate

Consolidated

Millions of yen
2009(1) Significant components of deferred tax assets and liabilities at March 31, 2010 and 2009 were as follows:¥ 4,825
1,390
671
1,129
351
159
163
108
779
9,575
(1,417)
8,158

Transport
Operating revenues and operating income:Customers¥ 130,554
Intersegment
2,959
Total operating revenues
133,513
Operating costs and expenses
130,197
Operating income¥ 3,316b. Assets, depreciation and capital expenditures:
Assets¥ 56,086
Depreciation
1,651
Capital expenditures
943

a.

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

1.1
4.0
(0.6)
3.1
48.2%

Millions of yen
2010

13. 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 March 31, 2010 and 2009.

Millions of yen
2010
2009

2009
40.6%

14. Segment Information
Business segment information of the Company and its consolidated subsidiaries for the years ended March 31, 2010 and 2009 is summarized as follows:2009 Stock
options(7th)61,000——6,000
55,0002010
40.6%

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¥ 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

Thousands of U.S. dollars
2010a.

Transport
Operating revenues and operating income:Customers$ 1,403,203
Intersegment
31,804
Total operating revenues
1,435,007
Operating costs and expenses
1,399,366
Operating income$ 35,641

b. Assets, depreciation and capital expenditures:
Assets$ 602,816
Depreciation
17,745
Capital expenditures
10,135Retail Distribution
and Processing

OthersTotal$ 786,672
45,411
832,083
810,383$ 21,700$ 257,373
125,892
383,265
373,248$ 10,017$ 2,447,248
203,1072,650,355
2,582,997$ 67,358$—(203,107)(203,107)(201,849)$ (1,258)$ 2,447,248—
2,447,248
2,381,148$ 66,100$ 963,134
30,14825,881$ 157,395
1,838
2,203

$ 1,723,345
49,731
38,219$ 83,738
3,676
15,123$ 1,807,083
53,40753,34229

15. Subsequent Event(1) Payment of Dividends
Shareholders approved the following appropriation of retained earning at the annual meeting held on June 29, 2010

Cash dividends

Millions of yen¥ 439

Stock Information (As of March 31, 2010)
Thousands of
U.S.dollars$ 4,718(2) Issuance of New Shares
June 7, 2010, the Company’s Board of Directors authorized the issuance of new shares in the form of a public offering, and the Company issued
and publicly offered the 15,000 thousand shares at ¥ 3,839 million ($ 41,262 thousand) with a payment due date of June 22, 2010.
On May 7, 2010, the Board also authorized another issuance of 2,000 thousand shares at ¥ 512 million ($ 5,503 thousand) by allocation to athird party, if necessary, because a secondary offering of the shares by Daiwa Securities Capital Markets Co., Ltd. will be implemented throughthe use of over-allotments.
The amount of funds to be raised by this public offering of new shares and a third-party capital increase is to be a maximum of ¥ 4,314
million ($ 46,367 thousand) and the Company expects to use these funds for acquisition of land and construction costs of Kitakanto base.

Stock Listings
Stock Code
Authorized Shares
Outstanding Share
Number of Shareholders
Administrator of Shareholder’s Register
Independent Auditors

Tokyo, Osaka
9069
294,999,000
111,989,476
6,956
Mitsubishi UFJ Trust and Banking Corporation
Osaka Corporate Agency Division
3-6-3, Fushimi Machi, Chuo-ku, Osaka 541-8502, Japan
Otemae Audit Corporation

Largest Shareholders

Japan Trustee Services Bank, Ltd. (Trust Account)
Asahi Kasei Corporation
Senko Group Employee's Stockholding
Sekisui Chemical Co., Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Tokio Marine Holdings, Inc.
The Master Trust Bank of Japan, Ltd.
AIG Star Life Insurance Co., Ltd.
Nissay Dowa General Insurance Co., Ltd.
Isuzu Motors Limited

Number of Shares

Percentage Held

12,814,000
10,676,726
6,938,743
6,785,900
5,060,000
4,439,170
3,450,000
3,200,000
3,169,655
2,939,689

11.44%
9.53%
6.20%
6.06%
4.52%
3.96%
3.08%
2.86%
2.83%
2.62%

Number of Shareholders

Number of Shares

Percentage Held

42,099,109
602,636
36,279,384
4,891,597
28,116,750
111,989,476

37.59%
0.54%
32.40%
4.37%
25.11%
100.00%Classification by Type of Shareholder

Domestic financial institutions
Securities firms
Other domestic corporations
Foreign financial institutions and individuals
Individuals and others
Total

30

44
23
260
103
6,526
6,956

31

Board of Directors and Corporate Auditors, Executive Officers (As of July 31, 2010)

President and Representative Director

Yasuhisa Fukuda

Executive Vice President and Representative Director

Kenichi Shibukawa
Full-time Corporate Auditors

President and Representative Director

Yasuhisa Fukuda

Yutaka Toyama
Katsumi Okamoto
Masakazu Tsuji
Yuzo Matsumoto

Executive Vice President and Representative Director

Kenichi Shibukawa
Directors and Senior Managing Executive Officers

Takeyo Teduka
Hisao Takahashi
Masuo Tanaka
Directors and Managing Executive Officers

Kengo Tanaka
Sadayuki Wada
Directors and Executive Officers

Yasushi Morimoto
Masahito Kanno
Yoshihiro Kawase
Kazuaki OikeManaging Executive Officers

Kazuhiro Yamanaka
Hirofumi Teramachi
Yoshio Shigeno
Takashi Yamamoto
Kenichi Shiraki
Junji Miyatsu
Tomoyuki Osako
Hiroshi Yoneji
Akira Taniguchi
Masami Tada
Noburou Sasaki
Takashi Sawada

Date of Establishment:
July 1946
Paid-in Capital:¥20,521,133,751
Head Office
1-30, Oyodonaka 1-chome, Kita-ku, Osaka
Fiscal Year End
March 31
Number of Branches and Offices 321
Number of Vehicles
3,174
Number of Vessels
19
Total Warehouse Space 2,015,977 square meters
Number of Employees
8,073

Departments:
Worldwide Locations:32

Consolidated Subsidiaries and Affiliated Companies (As of June 30, 2010)

Executive Officers

Corporate Data (As of July 31, 2010)

Branches:

Domestic and Global Network (As of July 31, 2010)

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
International Business, Marine Transport, Railway Forwarding
China / Dalian, Quingdao, Shanghai, Nantong, Hong Kong, Guangzhou, Zhang Jia Gang, Hangzhou, Shenzhen
Australia / Ingleburn
Singapore
Thailand / Bangkok
Unites States / Chicago, Atlanta, Los Angeles
Kazakhstan / Almaty

Company Name

Paid-in Capital

Senko Trading Co., Ltd.
¥300 million JPY
Senko Insurance Services Co., Ltd.
¥300 million JPY
Senko Information System Co., Ltd.
¥60 million JPY
Logi Solution Co., Ltd.
¥30 million JPY
Senko Moving Plaza Co., Ltd.
¥60 million JPY
Senko A Line Amano Co., Ltd.
¥300 million JPYTokyo Nohin Daiko Co., Ltd.
¥98 million JPY
Inui Transport Co., Ltd.
¥385 million JPY
Sapporo Senko Transport Co., Ltd.
¥30 million JPY
Tohoku Senko Transport Co., Ltd.
¥30 million JPY
Kanto Senko Transport Co., Ltd.
¥90 million JPY
Saitama Senko Transport Co., Ltd.
¥50 million JPY
Senko Housing Logistics Co., Ltd.
¥10 million JPY
Chiba Senko Transport Co., Ltd.
¥30 million JPY
Senko Fashion Logistics Co., Ltd.
¥30 million JPY
Kashiwa Senko Transport Co., Ltd.
¥30 million JPY
Kanagawa Senko Transport Co., Ltd.
¥10 million JPY
Hokuriku Senko Transport Co., Ltd.
¥20 million JPY
Fuji Senko Transport Co., Ltd.
¥30 million JPY
Daito Senko Apollo Co., Ltd.
¥10 million JPY
Tokai Senko Transport Co., Ltd.
¥30 million JPY
Toyohashi Senko Transport Co., Ltd.
¥40 million JPY
Mie Senko Logistics Co., Ltd.
¥10 million JPY
Shiga Senko Transport Co., Ltd.
¥30 million JPY
Osaka Senko Transport Co., Ltd.
¥90 million JPY
Hanshin Senko Transport Co., Ltd.
¥90 million JPY
Esaka Logistics Service Co., Ltd.
¥20 million JPY
Hanshin Transport Co., Ltd.
¥10 million JPY
Nara Senko Logistics Co., Ltd.
¥10 million JPY
Okayama Senko Transport Co., Ltd.
¥80 million JPY
Sankyo Freight Co., Ltd.
¥10 million JPY
Sanyo Senko Transport Co., Ltd.
¥20 million JPY
Chushikoku Logistics Co., Ltd.
¥90 million JPY
Shikoku Reefer Transport and Warehousing Co., Ltd.
¥50 million JPY
Fukuoka Senko Transport Co., Ltd.
¥50 million JPY
Minami Kyushu Senko Co., Ltd.
¥25 million JPY
Miyazaki Senko Transport Co., Ltd.
¥90 million JPY
Miyazaki Senko Apollo Co., Ltd.
¥15 million JPY
Senko Foods Co., Ltd.
¥90 million JPY
S-TAFF Co., Ltd.
¥45 million JPY
Marufuji Co., Ltd.
¥50 million JPY
Dalian Tri-Enterprise Logistics Co., Ltd.
55 million RMB
Guangzhou Senko Logistics Co.,Ltd
200 thousand USD
Senko International Logistics Pte. Ltd.
860 thousand SGD
DFTZ Best International Trade & Logistics Co., Ltd. 1800 thousand USD

Equity Ownership

100.0%
100.0%
100.0%
90.0%
100.0%
100.0%
65.9%
51.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
95.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
51.0%
100.0%
100.0%
33.0%

Main Business

Sales of petroleum-related products, Information equipment and foodNonlife insurance agent, Life insurance soliciting
Information processing, Development and sales of software, Consulting
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, Warehouse cargo handling
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
Trucking, In-factory work, Moving services
Trucking, In-factory work, Moving services
Trucking, Vehicle maintenance
Trucking, Warehousing, Distribution Processing, Information processing
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
Wholesalling of household furnishings
International freight forwarding, Warehousing
International freight forwarding, In-factory work, Warehousing
Customs clearing and forwarding, Warehousing
International freight forwarding, Warehousing33