This document is a translation of the Japanese financial statements and is not in conformity with accounting principles of the United States.

SENKO Co., Ltd.

Summary of Financial Statements for the Fiscal Year Ended March 31, 2014 [Japan GAAP]May 7, 2014
Name of Listed Company: SENKO Co., Ltd.
Stock Listed on: The First Section of the Tokyo Stock Exchange
Code Number:
9069
URL http://www.senko.co.jp/en/
Representative:
Title: President
Name: Yasuhisa Fukuda
Inquiries:
Title: Executive Officer, Public Relations
Name: Noburoh Sasaki
Tel. (06) 6440-5155
Scheduled Date of Annual Shareholders Meeting:June 27, 2014
Scheduled Date of Dividend Paid: June 30, 2014
Scheduled Date of Issue of Financial Report:
June 27, 2014
Supplemental Information Materials:
Yes
Information Meeting for Financial Results:
Yes (for institutional investors)
1. Consolidated Operating Results for the Fiscal Year Ended March 2014 (From April 1, 2013 to March 31, 2014)(1) Consolidated Operating Results
Operating revenues
Million yen%
333,883
13.7
293,534
8.6

Fiscal year ended March 31, 2014
Fiscal year ended March 31, 2013
(Note) Comprehensive income:Note: Amounts less than one million yen have been rounded down.
Operating income
Ordinary income
Net income
Million yen%
Million yen%
Million yen%
12,122
22.3
11,305
11.9
6,503
25.0
9,908
19.8
10,100
21.2
5,202
49.6

Fiscal year ended March 31, 2014: 7,045 million yen (20.7 %) Fiscal year ended March 31, 2013: 5,838 million yen (49.8 %)Net income
per share

Diluted net
income per share

Yen
50.83
41.45

Fiscal year ended March 31, 2014
Fiscal year ended March 31, 2013
(Reference) Equity in earnings (losses) of affiliates:
Fiscal year ended March 31, 2014: —

Yen
44.37
37.46

Return on
shareholders’equity%9.8
8.2

Ratio of ordinary Ratio of operating
income to total income to operating
assetsrevenues
%
%
5.0
3.6
4.9
3.4

Fiscal year ended March 31, 2013: 2 million yen(2) Consolidated Financial Position
Total assets
Million yen
243,594
208,095

Fiscal year ended March 31, 2014
Fiscal year ended March 31, 2013
(Reference) Shareholders’ equity:

Fiscal year ended March 31, 2014: 67,819 million yen

Net assets
Million yen
72,302
67,327

Equity ratio
%
27.8
31.3

Net assets per shareYen
528.25521.48

Fiscal year ended March 31, 2013: 65,139 million yen(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Million yen
10,68911,037

Fiscal year ended March 31, 2014
Fiscal year ended March 31, 2013

Cash flows fromfinancing activities

Million yen(24,956)(6,236)

Million yen
14,551(2,551)

Cash and cash
equivalents at fiscal
year-end
Million yen
17,667
15,6902. Dividends

Fiscal year ended March 31, 2013
Fiscal year ended March 31, 2014
Fiscal year ending March 31, 2015
(Forecast)First
quarter
Yen−−

Annual dividend
SecondThird
Year-endquarterquarter
Yen
Yen
Yen
7.00
−
7.00
8.00
−
8.00

−

8.00

−

8.00

Total
Yen
14.00
16.00

Aggregate
Dividend on
Payout ratio
amountequity ratio(Consolidated)(Consolidated)(Annual)Million yen
%
%
1,755
33.8
2.8
2,054
31.5
3.0

16.00

27.8

3. Forecast of Consolidated Operating Results for the Year Ending March 2015 (From April 1, 2014 to March 31, 2015)

Operating revenues Operating income
First half ending September 2014
Fiscal year ending March 2015

Million yen
184,000
380,000

%
21.7
13.8

Million yen
6,000
14,000%9.8
15.5(Percentage figures represent year on year changes)
Net income
Ordinary income
Net income
per share
Million yen% Million yen
%
Yen
5,500
8.6
3,100 –8.1
24.15
13,000 15.0
7,400 13.8
57.64

Notes(1) Changes in significant subsidiaries during the fiscal year (Changes in specified subsidiaries associated with change in scope of
consolidation): None
(2) Changes in accounting principles and estimates, and retrospective restatements(a) Changes due to revision of accounting standards: Yes(b) Changes other than in (a): None(c) Changes in accounting estimates: None(d) Retrospective restatements: None
(3) Shares outstanding (Common shares)(a) Shares outstanding (including treasury stocks)
As of March 31, 2014:

128,989,476 shares

As of March 31, 2013:

128,989,476 shares604,287 shares

As of March 31, 2013:

4,077,506 shares(b) Treasury stock
As of March 31, 2014:(c) Average number of shares (quarterly consolidated cumulative period)
Fiscal year ended March 31, 2014:

127,942,662 sharesFiscal year ended March 31, 2013:

125,516,847 shares[Reference] Overview of Non-Consolidated Operating Results
1. Non-Consolidated Operating Results for the Fiscal Year Ended March 2014 (From April 1, 2013 to March 31, 2014)(1) Non-Consolidated Operating Results

Fiscal year ended March 31, 2014
Fiscal year ended March 31, 2013

Operating revenues
Million yen%
195,3225.0
186,086
1.9

Operating income
Million yen
%
6,621
6.9
6,192
10.6

Net income
per share

Diluted net income per
share
Yen
31.05
22.93

Fiscal year ended March 31, 2014
Fiscal year ended March 31, 2013

Yen
35.57
25.37

(Percentage figures represent year on year changes)
Ordinary income
Net income
Million yen%
Million yen
%
7,318
14.7
4,551
42.9
6,377
11.4
3,184
46.6

(2) Non-Consolidated Financial Position

Fiscal year ended March 31, 2014
Fiscal year ended March 31, 2013
(Reference) Shareholders’ equity:

Total assets
Million yen
199,717
176,639

Fiscal year ended March 31, 2014: 61,064 million yen

Net assets
Million yen
61,30058,220Equity ratio
%
30.6
32.8

Net assets per shareYen
475.64464.53Fiscal year ended March 31, 2013: 58,024 million yen

Status of implementation of auditing procedure
The auditing procedure for the consolidated financial statements that is prescribed by the Financial Instruments and Exchange Act had
not been completed when this financial report was released.
Cautionary statement regarding forecasts of operating results and special notes
Forward-looking statements in these materials are based on information available to management at the time this report was prepared
and assumptions that management believes are reasonable. Actual results may differ significantly from these statements for a number ofreasons. For information about the assumptions used for forecasts and precautions concerning the use of forecasts, please see“Forecast for Fiscal Year Ending March 2015” on page 4.

Index to accompanying materials

1．Results of Operations and Financial Condition ....................................................................................................................................... 2(1) Results of Operations ........................................................................................................................................................................ 2(2) Financial Condition ............................................................................................................................................................................ 4(3) Fundamental Policy for Distribution of Earnings and Dividend for the Current and the Next Fiscal Years ..................................... 5(4) Business Risk ...................................................................................................................................................................................... 5
2．Corporate Group ....................................................................................................................................................................................... 6
3．Management Policies ............................................................................................................................................................................... 7(1) Fundamental Management Policy .................................................................................................................................................... 7(2) Targeted Performance Indicators ...................................................................................................................................................... 7(3) Medium and Long-term Strategies ..................................................................................................................................................... 7
4．Consolidated Financial Statements ......................................................................................................................................................... 8(1) Consolidated Balance Sheets ............................................................................................................................................................. 8(2) Consolidated Statements of (Comprehensive) Income ................................................................................................................... 10
Consolidated Statements of Income ................................................................................................................................................ 10
Consolidated Statements of Comprehensive Income ..................................................................................................................... 11(3) Consolidated Statements of Changes in Net Assets ....................................................................................................................... 12(4) Consolidated Statements of Cash Flows ......................................................................................................................................... 14

1

1.

Results of Operations and Financial Condition(1) Results of Operations
1)

Fiscal year performance
In the fiscal year ended March 31, 2014 (April 1, 2013 to March 31, 2014), consumer spending and housing investments in Japangrew robustly against a backdrop of improved employment and income conditions as well as last-minute demand before theconsumption tax hike. In addition, corporate earnings improved, supported by the expansion of domestic demand, mainly in consumer
spending and public projects.
In the logistics industry, growth was seen in the cargo volume of consumer spending-related goods and construction-related materials,
reflecting steady consumer spending and a spike in demand ahead of the consumption tax hike. The cargo volume of
manufacturing-related goods also increased due to a recovery in industrial production. The industry environment remained severe interms of cost, with fuel prices kept at a high level due to the weaker yen and an increase in outsourcing cost due to a shortage ofdrivers and trucks.
In this environment, the Senko Group established a four-year medium-term business plan that began in the fiscal year under review
and is based on the slogan “Moving Global.” The plan has three goals: “go beyond logistics,” “make the world go round,” and“revolutionize business.” The Group has been working to achieve growth in the distribution business and commerce and tradebusiness as well as to foster an even greater degree of trust among its customers by building a structure for services with high quality
and outstanding performance in relation to cost.
The following provides an outline of our main activities in the fiscal year ended March 31, 2014.
In retail product logistics, we opened the Tokyo Bay Fashion Arena (Ichikawa City, Chiba Prefecture), which specializes in distribution
for the fashion sector in the Tokyo metropolitan area, and the Kita-Osaka PD Center (Ibaraki City, Osaka Prefecture), which focuseson distribution for the medical and pharmaceutical industries. To strengthen our business base in the Hokkaido and Chubu regions,
we started operation of the Sapporo PD Center No. 2 Warehouse (Sapporo City, Hokkaido Prefecture) and the Komaki No. 2 PD
Center (Komaki City, Aichi Prefecture).
In the housing logistics domain, we opened the Chubu Housing Distribution Center (Nagoya City, Aichi Prefecture), which functions as
a hub for distributing housing materials in the Chubu region. In addition, we improved our distribution services by developing our own
transportation management system using smartphones and GPS (a system for which we obtained a patent). Furthermore, we
completed a nationwide network for the transport of heavy goods and developed a new business that includes the commencement ofhome-use rechargeable battery distribution and installation services.
In the chemicals logistics area, we expanded the Daimon Distribution Center (Moriyama City, Shiga Prefecture) by constructing two
new warehouses including one for dangerous goods. In partnership with a shipping firm, we also constructed two asphalt tankers toserve routes between South Korea and Japan. In addition, we worked to expand our bulk transportation business (transportation ofresin materials in a liquid, powder, and particle state) for which we have original expertise, and obtained new contracts.
Overseas, we started component procurement and transportation services for Japanese automobile plants and distribution services
within a Japanese chemical manufacturer's plant in Thailand. In China, we opened a distribution center for Japanese retailers in
Qingdao and began operating in full the housing logistics businesses in Suzhou. In addition, we constructed the KO-SENKO Logistics
Center at Busan New Port in South Korea, which handles import/export goods between South Korea, Japan, and third countries.
In the commerce and trade business segment, AST CORPORATION, one of the largest wholesalers of household paper products,
such as toilet rolls and tissues, joined the Senko Group as a consolidated subsidiary in October 2013. AST engages in every phase ofits business from product development, marketing and wholesaling to distribution. Furthermore, it has established a direct delivery
system using its own nationwide distribution centers featuring a total floor space of more than 20,000 tsubo (approximately 66,000 m2).
We will develop a business featuring the integration of the flow of trading activities and the physical flow of goods from manufacturing
to marketing by combining Senko’s expertise in logistics for distribution operations and AST’s abilities to both develop and sell
products.
In addition, we were the first in the logistics industry to develop and start marketing an invoice search system that makes the
management of invoices issued in large quantities and related inquiries more efficient.
We also started the photovoltaic power generation business by making efficient use of the roofs of seven distribution centers
nationwide.

2

The full-year performance was as follows:(Unit: Millions of Yen)FY ended March 2013

FY ended March 2014

Change%Operating revenues

293,534

333,883

40,349

13.7

Operating income
Ordinary income

9,908
10,10012,122
11,305

2,213
1,205

22.3
11.9

Net income

5,202

6,503

1,300

25.0

Consolidated operating revenues for the fiscal year ended March 31, 2014 increased 13.7% year on year to 333,883 million yen due
to efforts to aggressively expand sales, last-minute demand before the consumption tax hike, and the merger of AST CORPORATION
as a consolidated subsidiary. Earnings benefited from the growth in sales, cost-cutting measures, and activities to raise productivity,
although fuel prices rose and outsourcing cost soared due to a shortage of drivers and trucks. The consolidation of special-purpose
companies associated with a revision to an accounting standard also affected earnings. As a result, operating income rose 22.3% to12,122 million yen, ordinary income increased 11.9% to 11,305 million yen, and net income advanced 25.0% to 6,503 million yen.
The business segment performance was as follows:
Distribution
In retail product logistics, an increase in the volume of cargo for general merchandise stores, discount stores, and apparel volumeretailers contributed to growth in operating revenues. Our efforts to develop relationships with new customers in the electricalmachinery and other machinery sectors also led to a rise in operating revenues. In the housing logistics business, the cargo volume
was higher along with the increase in housing starts in Japan. In the chemicals logistics business, the Senko Group conducted
aggressive sales promotion activities. This resulted in operating revenues of 239,737 million yen, a 5.0% increase year on year.
Commerce and Trade
In the commerce business, progress was supported by activities that boosted sales in the petroleum marketing business and acontribution to revenues from the merger effect of AST CORPORATION and Obata Co., Ltd., a wholesaler of household products thatjoined the Senko Group in September 2012. In the trade business, there was a rise in exports of electronic components to China. As aresult, operating revenues increased 46.0% year on year to 90,703 million yen.
OthersIn this segment, operating revenues rose 8.8% year on year to 3,442 million yen, partly due to the launch of the solar electricity sales
business.

32)

Forecast for Fiscal Year Ending March 2015
Although the Japanese economy is forecast to temporarily slow down from the high base of strong sales induced by last-minutedemand before the consumption tax hike, we expect the economy to gradually recover, supported by government stimulation
measures designed to mitigate the slowdown and a recovery in consumer spending. However, since the distribution industry has been
facing a structural problem -- a shortage of drivers and trucks -- we are required to address a serious business challenge: securingtransportation capacity and human resources.
In this environment, the Senko Group will tackle the following tasks during the second year of its four-year medium-term businessplan: enhancing its competitiveness, improving its profitability, and upgrading its operation system.
To enhance our competitiveness, we will open new distribution centers in the Kanto, Chubu, and Kansai regions and strengthen oursales forces to explore new business opportunities in the fashion logistics business. In addition, we plan to establish a delivery
network for small-lot cargos, mainly in the urban areas of the Kanto, Chubu, Kansai, and Kyushu regions. Overseas, we give priority to
the four areas of East Asia, ASEAN, Central Asia, and North America for the intensive expansion of our business operations and will
create a distribution network in ASEAN, centered mainly on Thailand.
To improve our profitability, we plan to revise our charges, including by passing on rising costs to customers, and to further cut costs in
response to a rise in such items as fuel prices and outsourcing cost.
As measures to upgrade our operation system, we plan to launch a project to secure and foster human resources to resolve the driver
shortage and expand market share. In addition, we will improve the quality of our logistic services.
As a result of pursuing such corporate activity, the Group's consolidated forecasts for the next fiscal year are for operating revenues of
380.0 billion yen, operating income of 14.0 billion yen, ordinary income of 13.0 billion yen, and net income of 7.4 billion yen.

(2) Financial Condition
1)

Assets, liabilities and net assets
Total assets
Total assets were 243,594 million yen at the end of the fiscal year under review, 35,499 million yen higher than at the end of theprevious fiscal year. This was mainly because there were increases of 15,314 million yen in current assets and 32,852 million yen inproperty, plant and equipment, while there was a decrease of 12,356 million yen in investments and other assets. The consolidation of
special-purpose companies caused increases of 1,679 million yen in current assets and 13,351 million yen in property, plant andequipment, and a decrease of 11,219 million yen in investments and other assets.
Liabilities
Liabilities were 171,291 million yen at the end of the fiscal year under review, 30,524 million yen higher than at the end of the previous
fiscal year. This was mainly because there were increases of 5,225 million yen in trade notes and operating accounts payable, 7,040
million yen in the current portion of bonds, 1,869 million yen in short-term loans payable, 7,031 million yen in convertible bond-typebonds with subscription rights, 15,848 million yen in long-term loans payable, and 6,804 million yen in net defined benefit liability, while
there were decreases of 6,980 million yen in bonds payable and 9,269 million yen in provision for retirement benefits. The
consolidation of special-purpose companies caused increases of 1,568 million yen in current liabilities and 2,250 million yen in
noncurrent liabilities.
Net assets
Net assets were 72,302 million yen at the end of the fiscal year under review, 4,974 million yen higher than at the end of the previous
fiscal year. This was mainly because there were increases of 4,596 million yen in retained earnings and 2,254 million yen in minority
interests, while there was a decrease of 2,530 million yen in remeasurements of defined benefit plans. The equity ratio decreased 3.5
percentage points to 27.8%.

4

2)

Cash flows
Cash and equivalents at the end of the term increased by 1,976 million yen year on year to 17,667 million yen.
Net cash provided by operating activities was 10,689 million yen. This was mainly due to income before income taxes of 11,343 million
yen, depreciation and amortization of 7,606 million yen, and increases in net defined benefit liability of 6,804 million yen and notes andaccounts payable of 1,923 million yen, despite a decrease in provision for retirement benefits of 9,300 million yen, an increase innotes and accounts receivable of 2,661 million yen, interest expenses paid of 1,245 million yen, and income taxes paid of 4,014
million yen.
Net cash used in investing activities was 24,956 million yen. This was mainly due to the purchase of property, plant and equipment of
23,608 million yen.
Net cash provided by financing activities was 14,551 million yen. This was mainly due to proceeds from long-term loans payable of20,520 million yen, and proceeds from issuance of bonds with subscription rights to shares of 7,035 million yen, despite repayment oflong-term loans payable of 9,549 million yen, repayments of finance lease obligations of 2,439 million yen, and cash dividends paid of
1,898 million yen.

3)

Performance indicators associated with cash flows
Fiscal years ended March 31

2010

2011

2012

2013

2014

Equity ratio (%)

32.0

33.3

30.3

31.3

27.8

Market capitalization equity ratio (%)

22.4

19.1

20.6

29.7

23.6

Interest-bearing debt to cash flow ratio

9.6

8.2

7.6

6.6

9.2

Interest coverage ratio

5.3

6.2

7.9

9.6

8.6

Notes:
Equity ratio: Shareholders’ equity / Total assets
Market capitalization equity ratio: Market capitalization / Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt / Operating cash flows
Interest coverage ratio: Operating cash flows / Interest expenses• All figures are based on the consolidated financial statements.
• Market capitalization is calculated by multiplying the fiscal year-end stock price and the number of shares issued at the end of the
fiscal year (after deducting treasury stock).
• Operating cash flows are the figure shown in the consolidated statement of cash flows. Interest-bearing debt is the sum of all
liabilities on the consolidated balance sheet on which interest is paid. Interest expenses are the figure shown in the consolidated
statement of cash flows.
(3) Fundamental Policy for Distribution of Earnings and Dividend for the Current and the Next Fiscal Years
While securing internal reserves necessary for future business development and management structure reinforcement, the basic policy
is to return profits to shareholders by implementing stable dividends and dividends that are linked to business results.
In accordance with this policy, the year-end dividend for the fiscal year ended March 31, 2014 is set at 8.00 yen per share, as per the
initial forecast. Combined with the already declared interim dividend of 8.00 yen, the total annual dividend is expected to be 16.00 yen.
For the next fiscal year’s annual dividend, the same amount of 16.00 yen per share is expected.
(4) Business Risk
No discussion of business and other risks is presented here because there have been no significant changes involving these risks
since the most recent Securities Report (dated June 27, 2013), which includes a section about business and other risks.

5

2.

Corporate GroupThe Senko Group includes Senko, 85 subsidiaries and four affiliated companies. To meet the increasingly diverse and exacting needsof customers, Group companies conduct a full line of logistics operations extending from the development of strategic logistics systems
to the operation of these systems. There are three business segments: Distribution, which includes cargo transport by truck, cargotransport by rail, warehouse operations, the operation of distribution centers, and other activities; Trading and Commerce, which
includes sales of petroleum products, trading sales and international trade; and Others, which includes outsourced data processing
services, motor vehicle maintenance, insurance agency services and other activities. A diagram of these business operations ispresented below.

63. Management Policies(1) Fundamental Management Policy
The Senko Group is dedicated to becoming a company that earn the trust of shareholders, customers, employees and society andprovide benefits to these stakeholders by using highly advanced logistics and information technologies to create and provide servicesof the highest quality.
To accomplish this goal, group companies seek to maximize corporate value by supplying customers with high-quality, low-costvalue-added logistics services. From the standpoint of coexisting with society, the Senko Group also places priority on safety andenvironmental protection along with helping maintain social order. The aim is to create an energetic organization that is dedicated to
growth and trust and able to fulfill its obligations as a leading member of the logistics industry.
(2) Targeted Performance Indicators
The new four-year medium-term business plan, which began in the fiscal year ending in March 2014, includes the following goals.
(Unit: Billions of yen)
Fiscal years ended March 31

2013(Actual)2017(Target)Operating revenues

293.5

400.0

Operating income

9.9

15.0

Operating margin (%)

3.4

3.8

(3) Medium and Long-term Strategies
The company celebrates its 100th anniversary in 2016. Because the Company is celebrating the 100th anniversary of its foundation, it
has established a vision of what is needed for “Becoming a logistics information company that can be trusted upon both in Japan andoverseas” and has accordingly created a medium-term business plan that covers the four-year period commencing with the fiscal yearthat starts in 2013.

Summary of the Senko Group Medium-term Business Plan (April 2013 to March 2017)1.

The shape that the Senko Group aims to achieve“Becoming a logistics information company that can be trusted upon both in Japan and overseas”*A logistics information company means: A company that has a good command of information, including logistics andtrade distribution, and provides the appropriate distribution and logistical services on a global scale.

2.

Corporate slogan: “Moving Global”
Go beyond logistics:
Provide customers with high-quality services beyond the framework of an existing logistics company.
Make the world go round:
Conduct a “global” business with social consciousness.
Revolutionize business:
Offer customers new value by cultivating an awareness of self-development in employees.

3.

Medium-term management policies(1) Aiming at the provision of comprehensive and integrated services, challenging the creation of products together
with expanding the range of our businesses in distribution and in trade logistics operations.
(2) Fostering a greater degree of trust among our customers, forming a high-quality and high-service structure.
(3) Reinforcing our staff training and employment activities to foster and retain group human resources (including
global human resources, and in-house entrepreneurs within the Group).
(4) Placing emphasis on compliance, and aiming to become a company that is in the vanguard of environmental,
safety, and health issues.
(5) Promoting financial policies that are based upon prioritizing the maintenance of financial soundness.

4.

Medium-term business policies(1) Expanding the operational scope of our “physical distribution business.”(2) Expanding the operational scope of our “commerce and trading business.”(3) Developing an “international distribution business” that prioritizes earnings(4) Taking on the challenge of “making things.”(5) Promoting “business partnerships and M&A.”

7

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Unit: Millions of Yen)
As of March 31, 2013

As of March 31, 2014

AssetsCurrent assets
Cash and deposits

15,69017,767

Notes and accounts receivable

42,38751,764Merchandise

4,399

6,076

3

3

Work in process

190

214

Supplies

186

209

Deferred tax assets

2,030

2,397

Other

4,041

5,793

(66)

(50)

68,86384,177

95,602

118,145(51,484)(58,006)

Buildings and structures (net)44,11760,139Machinery, equipment and vehicles

21,45922,382(15,879)(16,103)

5,580

6,278

Tools, furniture and fixtures

4,894

5,363

Accumulated depreciation(4,144)(4,346)

749

1,017

Land

40,09856,092

Lease assets

7,735

8,508

Accumulated depreciation(4,479)(5,225)

Lease assets (net)

3,256

3,283

Construction in progress

1,803

1,646

Total property, plant and equipment

95,605

128,457

Real estate for sale

Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Accumulated depreciation
Machinery, equipment and vehicles (net)

Tools, furniture and fixtures (net)

Intangible assets
Goodwill

3,452

3,178

Other

3,477

3,440

Total intangible assets

6,930

6,619

Investment securities

5,550

5,775

Long-term loans receivable

4,027

3,957

Guarantee deposits

9,252

9,559

Deferred tax assets

3,435

4,234

Other

14,8291,370

Allowance for doubtful accounts

(399)

(557)

Total investments and other assets

36,69624,339139,232

159,416

208,095

243,594

Investments and other assets

Total noncurrent assets
Total assets

8

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

As of March 31, 2014

Liabilities
Current liabilities
Notes and operating accounts payable−trade

31,37736,603Current portion of bonds

−

7,040

Short-term loans payable

14,475

16,345

Lease obligations

2,146

1,986

Income taxes payable

2,540

2,766

Provision for bonuses

3,118

3,342

181

163

Other

9,995

11,117

Total current liabilities

63,83579,364

Bonds payable

12,0005,020

Convertible bond-type bonds with subscription rights

5,000

12,031Long-term loans payable

41,74957,598

Lease obligations

3,583

3,656

Provision for retirement benefits

9,269

−

Provision for directors’ retirement benefits

65

187

Net defined benefit liability

−

6,804

Provision for special repairs

61

42

Asset retirement obligations

324

440

Other

4,878

6,146

Total noncurrent liabilities

76,931

91,927140,767

171,291

Capital stock

20,521

20,521

Capital surplus

18,782

18,896

Retained earnings

26,46831,064

Treasury stock(1,353)(1,092)

Total shareholders’ equity

64,41869,390

Valuation differences on available-for-sale securities

673

738

Deferred gains or losses on hedges

(4)

(9)

Foreign currency translation adjustment

52

230

Remeasurements of defined benefit plans−(2,530)720(1,570)

Provision for directors’ bonuses

Noncurrent liabilities

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Total accumulated other comprehensive income
Subscription rights to shares

195

235

Minority interests

1,992

4,247

Total net assets

67,32772,302208,095

243,594

Liabilities and net assets

9(2) Consolidated Statements of (Comprehensive) Income(Consolidated Statements of Income)(Unit: Millions of Yen)
Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

(April 1, 2012 – March 31, 2013)(April 1, 2013 – March 31, 2014)

Operating revenues

293,534

333,883

Cost of sales

263,898

299,039

Gross profit

29,63534,844

Selling, general and administrative expenses

19,72722,722

Operating income

9,908

12,122

162

163

Non-operating income
Interest income
Dividend income

965

98

Other

591

629

1,720

891

1,155

1,242

373

465

1,529

1,707

10,10011,305Gain on sales of investment securities−

549

Gain on revision of retirement benefit plan−

239

Gain on sales of noncurrent assets−

187

Insurance income−

32

Total extraordinary income

−

1,009

Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary loss−

243

Loss on retirement of noncurrent assets
Provision of allowance for doubtful accounts for subsidiaries andaffiliates
Loss on valuation of investments in capital of subsidiaries and affiliates

201

212

106

162

−

104

Loss on cancellation of lease contracts

43

77

Soil improvement expenses−

61

Impairment loss−

42

Special retirement expenses

53

38

Loss on disaster−

30

Loss on valuation of investment securities

77−

Total extraordinary loss

481

971

Income before income taxes

9,618

11,343

Income taxes−current

3,932

4,314

Income taxes−deferred

397

335

Total income taxes

4,329

4,649

Income before minority interests

5,288

6,693

85

189

5,202

6,503

Office transfer expenses

Minority interest
Net income

10(Consolidated Statements of Comprehensive Income)(Unit: Millions of Yen)

Income before minority interests

Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

(April 1, 2012 – March 31, 2013)(April 1, 2013 – March 31, 2014)

5,288

6,693

Valuation difference on available-for-sale securities

563

69

Deferred gains or losses on hedges

(166)

(4)

Foreign currency translation adjustment

153

286

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

Total other comprehensive income

549

351

5,838

7,045

5,654

6,742

184

302

Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests11(3) Consolidated Statements of Changes in Net Assets
Fiscal year ended March 31, 2013 (April 1, 2012 – March 31, 2013)(Unit: Millions of Yen)
Shareholders’ equity
Capital stock
Balance at the beginning of current
periodCapital surplus

20,521Retainedearnings

18,782

Treasury stock

22,901

Total
shareholders’equity(1,049)61,155

Changes of items during the period
Dividends from surplus(1,635)(1,635)

Net income

5,202

5,202

Purchases of treasury stock
Disposal of treasury stock

(310)

(310)

6

6

(0)

Change of scope of consolidation
Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at fiscal year end

−

(0)

3,567

(303)

3,263

20,521

18,782

26,468(1,353)64,418

Accumulated other comprehensive income

Balance at the beginning of current
periodValuationdifferencesonavailable-forsecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasure-ments ofdefinedbenefit
plans

Total
accumulated
othercomprehensive
incomeSubscription
rights toshares

157

156

(44)

−

269

149

Minority
interests

1,700

Total net
assets63,274

Changes of items during the period
Dividends from surplus(1,635)

Net income

5,202

Purchases of treasury stock(310)

Disposal of treasury stock

6

Change of scope of consolidation
Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at fiscal year end

516

(161)

96

−

451

46

291

790

516

(161)

96

−

451

46

291

4,053

673

(4)

52

−

720

195

1,992

67,327

12

Fiscal year ended March 31, 2014 (April 1, 2013 – March 31, 2014)(Unit: Millions of Yen)
Shareholders’ equity
Capital stock
Balance at the beginning of current
periodCapital surplus

20,521Retainedearnings

18,782

Treasury stock

26,468

Total
shareholders’equity(1,353)64,418Changes of items during the period
Dividends from surplus(1,901)(1,901)

Net income

6,503

6,503

Purchases of treasury stock
Disposal of treasury stock

114

Change of scope of consolidation

(6)

267

381

(6)

Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at fiscal year end(6)

20,521

(6)

114

4,596

260

4,971

18,896

31,064(1,092)

69,390

Accumulated other comprehensive income

Balance at the beginning of current
periodValuationdifferencesonavailable-forsecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive
incomeSubscription
rights toshares

673

(4)

52

−

720

195

Minority
interests

1,992

Total net
assets

67,327

Changes of items during the period
Dividends from surplus(1,901)

Net income

6,503

Purchases of treasury stock(6)

Disposal of treasury stock

381

Change of scope of consolidation(6)

Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at fiscal year end

65

(4)

178

(2,530)(2,291)

40

2,254

3

65

(4)

178

(2,530)(2,291)

40

2,254

4,974

738

(9)

230

(2,530)(1,570)

235

4,247

72,30213

(4) Consolidated Statements of Cash Flows(Unit: Millions of Yen)
Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

(April 1, 2012 – March 31, 2013)(April 1, 2013 – March 31, 2014)

Cash flows from operating activities
Income before income taxes

9,618

11,343

Depreciation and amortization

6,737

7,606

77

−

Loss (gain) on sales of investment securities

−

(549)

Loss (gain) on sales of noncurrent assets

(26)

(187)

Loss on retirement of noncurrent assets

201

212

Increase (decrease) in provision for retirement benefits(199)(9,300)

Increase (decrease) in net defined benefit liability

−

6,804

Increase (decrease) in provision for bonuses

(7)

84

Increase (decrease) in provision for loss on disaster

(43)

−

(1,128)(261)

Loss (gain) on revaluation of investment securities

Interest and dividends income
Interest expenses

1,155

1,242

Decrease (increase) in notes and accounts receivable-trade(1,559)(2,661)

Decrease (increase) in inventories

(337)

(295)

Increase (decrease) in notes and accounts payable-trade

525

1,923

Other

729

(185)

15,742

15,774215

174

Interest expenses paid

(1,147)(1,245)

Income taxes paid

(3,772)(4,014)

Net cash provided by (used in) operating activities

11,037

10,689(6,014)(23,608)

Sub-totalInterest and dividends income received

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

191

564

Purchase of investment securities

(41)

(42)

Proceeds from sales of investment securities
Purchase of investments in subsidiaries resulting in change in scopeof consolidation
Proceeds from purchase of investments in subsidiaries resulting inchange in scope of consolidation
Purchase of stocks of subsidiaries and affiliates

110

1,025

−

(2,364)

23

−

(76)

(159)

Proceeds from sales of stocks of subsidiaries and affiliates

25

12

Payments for investments in capital of subsidiaries and affiliates

(177)

−

Other

(277)

(382)

(6,236)(24,956)

Net cash provided by (used in) investing activities

14

(Unit: Millions of Yen)
Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

(April 1, 2012 – March 31, 2013)(April 1, 2013 – March 31, 2014)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable(2,626)850

Proceeds from long-term loans payable

8,869

20,520

Repayment of long-term loans payable(4,378)(9,549)

Repayments of finance lease obligations(2,282)(2,439)−(20)

Payments for redemption bonds with subscription rights(4,900)−

Proceeds from issuance of bonds with subscription rights to shares

5,000

7,035

Purchase of treasury stock

(310)

(6)

0

360

(1,634)(1,898)

(289)

(300)

(2,551)

14,551

54

100

Net increase (decrease) in cash and cash equivalents

2,303

384

Cash and cash equivalents at beginning of year

13,354

15,69032

1,591

15,69017,667

Redemption of bonds

Proceeds from sales of treasury stock
Cash dividends paid
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Increase in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at end of year15