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

SENKO Group Holdings Co., Ltd.

Summary of Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2023
[Japan GAAP]
Name of Listed Company:
Code Number:
Representative:
Inquiries:

August 12, 2022

SENKO Group Holdings Co., Ltd.
Stock Listed on: Tokyo Stock Exchange
9069
URL https://www.senkogrouphd.co.jp/en/
Title: President and Representative Director
Name: Yasuhisa Fukuda
Title: Executive Officer, Responsible for PR & IR
Name: Satoru Kokubo
Tel. (03) 6862-8842

Scheduled Date of Issue of Quarterly Financial Report: August 12, 2022
Yes
Quarterly Supplemental Information Materials:
None
Quarterly Information Meeting:

Scheduled Date of Dividend Paid: –(Amounts less than ¥1 million have been rounded down)
1. Consolidated Operating Results for the Three Months Ended June 30, 2022
(1) Consolidated Operating Results (Cumulative)
Operating revenue
Million yen
165,345
148,102

Three months ended June 30, 2022
Three months ended June 30, 2021

%
11.6
11.1

(Percentage figures represent year-on-year changes)
Profit attributable toOperating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
6,973
14.5
7,430
16.5
4,363
20.7
6,091
43.9
6,377
51.9
3,616
43.1

(Note) Comprehensive income
Three months ended June 30, 2022: ¥6,318 million (47.2%)
Profitper share

Three months ended June 30, 2021: ¥4,293 million (89.4%)
Diluted profit
per share

Yen
29.29
24.40

Yen
25.93
20.28

Three months ended June 30, 2022
Three months ended June 30, 2021
(Note) During the second quarter ended September 30, 2021, the Company finalized the provisional accounting treatment for businesscombinations. As a result, figures for the three months ended June 30, 2021 reflect the finalization of the provisional accounting treatment.
(2) Consolidated Financial Position
Total assets
Million yen
479,891
480,487

As of June 30, 2022
As of March 31, 2022
(Reference) Equity:
As of June 30, 2022: ¥149,996 million

Net assets
Million yen
164,249
160,657

Equity ratio%
31.3
30.6

Net assets per shareYen
1,006.98
985.67

As of March 31, 2022: ¥146,817 million

2. Dividends
June 30

Yen––

September 30
Yen
17.00

Fiscal year ended March 31, 2022
Fiscal year ending March 31, 2023
Fiscal year ending March 31, 2023
17.00
(Forecast)(Note) Change in the estimation of dividend for the fiscal year in this period: None

Annual dividend
December 31
Yen––March 31

Yen
17.00

17.00

TotalYen
34.00
34.00

3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2023 (From April 1, 2022 to March 31, 2023)
Operating revenue
Million yen%
337,000
12.0
First half ending September 30, 2022
700,000 12.3
Fiscal year ending March 31, 2023(Note) Change in the forecast made in this period: None

Operating profit
Million yen
12,50026,700%
6.8
7.8(Percentage figures represent year-on-year changes)
Profit attributable toProfit
Ordinary profit
owners of parent
per share
Million yen% Million yen%
Yen
12,600
5.3
7,500
7.8
50.35
27,0003.4
16,0005.0
107.41

Notes(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries associated with change in scope ofconsolidation): None
(2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements: None
(3) Changes in accounting principles and estimates, and retrospective restatement(a) Changes due to revision of accounting standards: Yes(b) Changes other than in (a): None(c) Changes in accounting estimates: None(d) Retrospective restatement: None
(4) Shares outstanding (Common shares)(a) Shares outstanding (including treasury shares)
As of June 30, 2022:

157,070,496 shares

As of March 31, 2022:

157,070,496 shares

8,113,586 shares

As of March 31, 2022:

8,117,957 shares(b) Treasury shares
As of June 30, 2022:(c) Average number of shares (Cumulative)
Three months ended June 30, 2022:

148,956,748 shares

Three months ended June 30, 2021:

148,224,994 shares(Note) Starting with the third quarter of the fiscal year ended March 31, 2018, the number of treasury shares at term-end includes Senko
shares owned by the trust accounts of Performance-linked Stock Compensation Plan for Employees (as of June 30, 2022: 337,905
shares; as of March 31, 2022: 338,276 shares) and Performance-linked Stock Compensation Plan for Directors (as of June 30,2022: 338,607 shares; as of March 31, 2022: 338,607 shares).
Quarterly financial results reports are exempt from quarterly reviews conducted by certified public accountants or an audit corporation.
Cautionary statement regarding forecasts of operating results and special notes
 Forward-looking statements in these materials are based on information available to management at the time this report was prepared andassumptions that management believes are reasonable. Actual results may differ significantly from these statements for a number ofreasons. For information about the assumptions used for forecasts and precautions concerning the use of forecasts, please see “Forecastfor the first half period and the full-term of the fiscal year ending March 31, 2023” on page 3.
 The supplementary material on quarterly earnings will be available on the Company’s website.

Index to accompanying materials

1. Results of Operations and Financial Condition ........................................................................................................................................... 2(1) Results of operations........................................................................................................................................................................... 2(2) Financial condition ............................................................................................................................................................................... 3(3) Forecast for the first half period and the full-term of the fiscal year ending March 31, 2023 ............................................................ 3
2. Consolidated Financial Statements ............................................................................................................................................................. 4(1) Consolidated balance sheets .............................................................................................................................................................. 4(2) Consolidated statements of (comprehensive) income ....................................................................................................................... 6
Consolidated statements of income
For the three months ended June 30, 2021 and 2022.................................................................................................................... 6Consolidated statements of comprehensive income
For the three months ended June 30, 2021 and 2022.................................................................................................................... 71

1.

Results of Operations and Financial Condition(1) Results of operations
In the three-month period of the fiscal year ending March 31, 2023 (April 1, 2022 to June 30, 2022), amid an economic environment inwhich measures to stem the spread of COVID-19 have been relaxing and economic and social activities are normalizing, there are signsof economic recovery. However, the outlook at present continues to be unclear, with the protraction of the Ukraine situation andmonetary tightening occurring on a global scale.
The three-month-period performance was as follows.
(Unit: Millions of Yen)

Operating revenue

Three months ended
June 30, 2021
148,102

Three months ended
June 30, 2022
165,345

6,091
6,377
3,616

Operating profit
Ordinary profit
Profit attributable to owners ofparentChange%17,242

11.6

6,973
7,430

881
1,052

14.5
16.5

4,363

747

20.7

Despite facing rising fuel prices and overseas purchase prices, along with dwindling demand for COVID-19 related products, as
economic and social activities have been normalizing, we are seeing an accompanying recovery in demand, and owing to group-wide
efforts to expand sales and revise pricing, along with the effect of promoting M&A, the Group achieved year-on-year increases inoperating revenue, operating profit, ordinary profit and profit attributable to owners of parent.
The three-month-period operating revenue by segment was as follows.
Note that effective from the first quarter ended June 30, 2022, a newly changed classification and aggregation method for reportablesegments has been applied, and the data used for comparison and analysis of the three months ended June 30, 2022 is based on thenewly changed classification.
Logistics(Unit: Millions of Yen)

Operating revenue

Three months ended
June 30, 2021
104,646

Three months ended
June 30, 2022
115,956

5,729

6,338

Segment incomeChange%
11,310

10.8

608

10.6

Amid an apparent recovery in cargo volumes, resulting from the normalizing economic and social activities, we strived to expand sales
and revise pricing while reaping the contribution of revenue from M&A we conducted in the previous fiscal year. As a result, operating
revenue increased ¥11,310 million year on year to ¥115,956 million, and segment income rose ¥608 million year on year to ¥6,338
million.
Trading & commerce(Unit: Millions of Yen)

Operating revenue

Three months ended
June 30, 2021
35,396

Three months ended
June 30, 2022
38,667629

470

Segment incomeChange%
3,271

9.2

(159)

(25.3)In addition to the contribution from revenue from household paper wholesale distributor Cartas Co., Ltd., which was made a consolidated
subsidiary in the previous fiscal year, we worked on expanding sales and improving cost efficiency among other initiatives. However, asa result of decreased demand for packaging used for takeaways and deliveries, and rising purchase prices due to yen depreciation,
among other factors, operating revenue increased by ¥3,271 million year on year to ¥38,667 million and segment income fell ¥159million year on year to ¥470 million.
Life Support(Unit: Millions of Yen)

Operating revenue

Three months ended
June 30, 2021
6,443

Three months ended
June 30, 2022
8,475(315)265

Segment income (loss)

Change%
2,031

31.5

581

–

As people’s everyday lives have been normalizing, the segment saw a recovery in the number of users and the number of customers
visiting stores, new stores were opened, and M&A we conducted in the previous fiscal year also contributed to revenue. As a result,operating revenue increased ¥2,031 million year on year to ¥8,475 million, and segment income of ¥265 million was achieved after animprovement of ¥581 million year on year.

2

Business Support(Unit: Millions of Yen)

Operating revenue

Three months ended
June 30, 2021
1,614

Three months ended
June 30, 2022
2,244

39136

Segment income

Change%
629

39.0

96

242.8

The segment strived to expand sales and improve cost efficiency while reaping the contribution of revenue from M&A we conducted in
the previous fiscal year. As a result, operating revenue increased ¥629 million year on year to ¥2,244 million, and segment income rose
¥96 million year on year to ¥136 million.
(2) Financial condition
Assets, liabilities and net assets
Total assets
Total assets as of June 30, 2022 were ¥479,891 million, ¥596 million lower than at the end of the previous fiscal year.
Current assets amounted to ¥167,242 million, down ¥3,791 million from the end of the previous fiscal year. This was mainly due todecreases of ¥1,423 million in cash and deposits and ¥3,537 million in trade notes and accounts receivable, and contract assets despite
an increase of ¥1,381 million in other current assets.
Non-current assets totaled ¥312,649 million, up ¥3,195 million from the end of the previous fiscal year. This was primarily due toincreases of ¥1,942 million in property, plant and equipment and ¥1,121 million in intangible assets.
Liabilities
Liabilities as of June 30, 2022 decreased ¥4,187 million from the end of the previous fiscal year to ¥315,642 million.
Current liabilities totaled ¥132,463 million, down ¥5,182 million from the end of the previous fiscal year. This was mainly due todecreases of ¥3,497 million in trade notes and accounts payable, ¥3,404 million in income taxes payable and ¥2,661 million in provision
for bonuses despite an increase of ¥2,915 million in other current liabilities.
Non-current liabilities totaled ¥183,178 million, up ¥994 million from the end of the previous fiscal year. This was primarily due to anincrease of ¥927 million in deferred tax liabilities.
Net assets
Net assets as of June 30, 2022 rose ¥3,591 million from the end of the previous fiscal year to ¥164,249 million. This was primarily due toincreases of ¥1,818 million in retained earnings and ¥1,298 million in foreign currency translation adjustment. The equity ratio as of June30, 2022 increased by 0.7 percentage points to 31.3% from the end of the previous fiscal year.
(3) Forecast for the first half period and the full-term of the fiscal year ending March 31, 2023
No revisions have been made to the forecast of consolidated operating results for the first half ending September 30, 2022 and the fiscalyear ending March 31, 2023, announced in “Summary of Financial Statements for the Fiscal Year Ended March 31, 2022” on May 13,2022.

32.

Consolidated Financial Statements(1) Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2022

As of June 30, 2022

AssetsCurrent assets
Cash and deposits

45,093

43,670Trade notes and accounts receivable, and contract
assets

91,89388,356

Electronically recorded monetary claims - operating

3,543

3,683

Merchandise and finished goods

14,183

13,738Work in process

95

104

Raw materials and supplies

845

934

15,411

16,793(34)(37)

171,033

167,242

OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

91,09692,441

Land

90,31390,513

Other, net

50,22950,626

Total property, plant and equipment

231,639

233,581Goodwill

12,564

12,733Other

11,15912,111

Total intangible assets

23,723

24,844

17,95718,093Long-term loans receivable

279

254

Retirement benefit asset

7,703

7,876

Guarantee deposits

14,38814,755

Deferred tax assets

5,115

4,400

Other

9,066

9,272

Allowance for doubtful accounts(418)(430)Total investments and other assets

54,091

54,223

309,454

312,649

Business commencement expenses

00

Total deferred assets

00480,487

479,891

Intangible assets

Investments and other assets
Investment securities

Total non-current assets
Deferred assets

Total assets

4

(Unit: Millions of Yen)
As of March 31, 2022

As of June 30, 2022

Liabilities
Current liabilities
Trade notes and accounts payable

50,67547,177

Electronically recorded obligations - operating

9,076

9,393

24

–

Short-term borrowings

36,335

37,153

Lease obligations

4,632

5,325

Income taxes payable

5,052

1,647

Provision for bonuses

6,585

3,924

427

116

Current portion of bonds payable

Provision for bonuses for directors (and otherofficers)
Provision for loss on disaster

416

388

Other

24,42027,336

Total current liabilities

137,646

132,463

Bonds payable

40,00040,000Convertible-bond-type bonds with share acquisitionrights

22,081

22,074Long-term borrowings

86,74686,274

Lease obligations

15,97016,575

Provision for retirement benefits for directors (andother officers)

573

556

Provision for special repairs

196

245

Non-current liabilities

Provision for share awards

336

335

Retirement benefit liability

7,050

6,959

Asset retirement obligations

950

975

Deferred tax liabilities

4,987

5,914

Other

3,291

3,266

182,183

183,178

319,830

315,642

Share capital

28,47928,479

Capital surplus

31,54531,543Retained earnings

91,73793,555

Treasury shares(8,159)(8,155)

Total shareholders’ equity

143,602145,423

1,472

1,531

Deferred gains or losses on hedges

70

115

Foreign currency translation adjustment

755

2,053

Remeasurements of defined benefit plans

916

873

3,215

4,573

Share acquisition rights

388386

Non-controlling interests

13,451

13,866

Total net assets

160,657

164,249

480,487

479,891

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

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total accumulated other comprehensive income

Total liabilities and net assets5(2) Consolidated statements of (comprehensive) income(Consolidated statements of income)(For the three months ended June 30, 2021 and 2022)(Unit: Millions of Yen)
Three months ended
June 30, 2021

Three months ended
June 30, 2022

(April 1, 2021 – June 30, 2021)(April 1, 2022 – June 30, 2022)

Operating revenue

148,102165,345

Operating costs

127,382

141,037

Operating gross profit

20,72024,307

Selling, general and administrative expenses

14,62817,334

Operating profit

6,091

6,973

Interest income

2323

Dividend income

77

92

Foreign exchange gains

–202

Other

641

625

Total non-operating income

742

944

Interest expenses

297

344

Other159

142

Total non-operating expenses

456

487

6,377

7,430

248

206

–73248280

243

206

Loss on retirement of non-current assets

7365

Loss on COVID-19 impact

103–8–

428

271

6,197

7,438

Income taxes - current

789

1,266

Income taxes - deferred

1,534

1,552

Total income taxes

2,324

2,819

Profit

3,873

4,619

256

255

3,616

4,363

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income
Subsidy income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on tax purpose reduction entry of non-currentassets

Loss on disaster
Total extraordinary losses
Profit before income taxes

Profit attributable to non-controlling interests
Profit attributable to owners of parent6

(Consolidated statements of comprehensive income)(For the three months ended June 30, 2021 and 2022)(Unit: Millions of Yen)
Three months ended
June 30, 2021

Three months ended
June 30, 2022

(April 1, 2021 – June 30, 2021)

Profit(April 1, 2022 – June 30, 2022)

3,873

4,619

Valuation difference on available-for-sale securities

(78)

46

Deferred gains or losses on hedges

(24)

61

Foreign currency translation adjustment

489

1,634

Remeasurements of defined benefit plans, net of tax

33(43)

Total other comprehensive income

420

1,698

4,293

6,318

3,933

5,721

359

596

Other comprehensive income

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