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 Second Quarter of the Fiscal Year Ending March 31, 2016
[Japan GAAP]
October 30, 2015
Name of Listed Company: SENKO Co., Ltd.
Stock Listed on: The First Section of the Tokyo Stock Exchange
Code Number:
9069
URL http://www.senko.co.jp/en/
Representative:
Title: President
Name: Yasuhisa Fukuda
Inquiries:
Title: Executive Officer, Public Relations
Name: Noburoh Sasaki
Tel. (06) 6440-5155
Scheduled Date of Issue of Financial Report:
November 12, 2015
Scheduled Date of Dividend Paid: December 7, 2015
Yes
Supplemental Information Materials:
Yes (for institutional investors)
Scheduled Date of Quarterly Information Meeting:
1. Consolidated Operating Results for the Six Months Ended September 30, 2015
(1) Consolidated Operating Results
Operating revenue
Six months ended September 30, 2015
Six months ended September 30, 2014
(Note) Comprehensive income

Million yen
215,232
183,798

%
17.1
21.6

Note: Amounts less than ¥1 million have been rounded down.
Profit attributable toOperating income
Ordinary income
owners of the parent
Million yen%
Million yen%
Million yen
%
8,266
53.7
7,906
54.1
4,324
40.9
5,376
(1.6)
5,131
1.4
3,069
(9.0)

Six months ended September 30, 2015 ¥5,124 million (40.7%)
Six months ended September 30, 2014 ¥3,642 million (-1.2%)
Profitper share

Diluted profit
per share
Yen
30.91
24.36

Yen
28.54
20.53

Total assets
Million yen
273,306
285,309

Net assets
Million yen
97,721
92,743Six months ended September 30, 2015
Six months ended September 30, 2014
(2) Consolidated Financial Position

As of September 30, 2015
As of March 31, 2015
(Reference) Shareholders’ equity:

As of September 30, 2015 ¥86,076 million

Equity ratio
%
31.5
28.4

Net assets per shareYen
603.28581.46

As of March 31, 2015 ¥81,026 million

2. Dividends
June 30
Yen

September 30
Yen
8.00
9.00

Annual dividend
December 31
Yen−
Fiscal year ended March 31, 2015−
Fiscal year ending March 31, 2016
Fiscal year ending March 31, 2016
(Forecast)(Note) Change in the estimation of dividend for the fiscal year in this period: Yes

March 31

Total

−

Yen
9.00

Yen
17.00

−

11.00

20.00

The estimation of dividend stated in the Summary of Financial Statements announced on July 31, 2015 has been revised. Please refer to“<Reference Information> Basic Policy on Profit Distribution and Dividends for the Fiscal Year Ending March 31, 2016” on page 4.
The forecast of year-end dividend per share for the year ending March 31, 2016 includes a commemorative dividend of ¥2 per share for the 70th
anniversary of the foundation and 100th anniversary in business.
3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2016 (From April 1, 2015 to March 31, 2016)
Operating revenue
Million yen%
Fiscal year ending March 31, 2016
435,000
9.2(Note) Change in the forecast made in this period: Yes

Operating income
Million yen
17,300%26.7(Percentage figures represent year-on-year changes)
Profit attributable toProfitOrdinary income
owners of the parent
per share
Million yen% Million yen%
Yen
16,800 26.9
9,100
28.6
65.04

Forecast stated in the results of operations for the fiscal year ending March 2016 announced on July 31, 2015 has been revised.
Please refer to “Forecast for the fiscal year ending March 31, 2016” on pages 3 and 4.

Notes(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries associated with change in scope of
consolidation): 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 September 30, 2015:

144,834,771 shares

As of March 31, 2015:

141,927,426 shares

2,155,077 shares

As of March 31, 2015:

2,577,118 shares(b) Treasury shares
As of September 30, 2015:(c) Average number of shares (quarterly consolidated cumulative period)
Six months ended September 30, 2015: 139,903,708 shares

Six months ended September 30, 2015

125,991,579 shares(Note) Starting with the first quarter of the consolidated fiscal year ended March 31, 2015 (the three months ended June 30, 2014), thenumber of treasury shares at term-end includes Senko shares owned by the employee stock ownership plan (ESOP) trust,
following revisions to accounting principles due to the amendment of accounting standards. (As of September 30, 2015: 1,702,000
shares; as of March 31, 2015: 1,954,000 shares.)
Information concerning quarterly review procedure
This quarterly financial report is not subject to the quarterly review procedure prescribed by the Financial Instruments and Exchange Act
The review procedure prescribed by the Financial Instruments and Exchange Act for the quarterly consolidated financial statements had
not been completed when this quarterly financial report was released.
Cautionary statement regarding forecasts of operating results and special notes
Forward-looking statements in these materials are based on information available to management at the time this report was prepared
and assumptions that management believes are reasonable. Actual results may differ significantly from these statements for a number ofreasons. For information about the assumptions used for forecasts and precautions concerning the use of forecasts, please see“Forecast for the fiscal year ending March 31, 2016” on pages 3 and 4.

Index to accompanying materials

1．Results of Operations and Financial Condition ....................................................................................................................................... 2(1) Results of operations ......................................................................................................................................................................... 2(2) Financial condition ............................................................................................................................................................................. 3(3) Forecast for the fiscal year ending March 31, 2016 ......................................................................................................................... 3
2．Other Information ...................................................................................................................................................................................... 5(1) Changes in significant subsidiaries..................................................................................................................................................... 5(2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements .............................. 5(3) Changes in accounting principles and estimates, and retrospective restatement ............................................................................ 5
3．Consolidated Financial Statements ......................................................................................................................................................... 6(1) Consolidated balance sheets ............................................................................................................................................................ 6(2) Consolidated statements of (comprehensive) income ..................................................................................................................... 8
Consolidated statements of income
For the six months ended September 30, 2014 and 2015 ............................................................................................................... 8
Consolidated statements of comprehensive income
For the six months ended September 30, 2014 and 2015 ............................................................................................................... 9(3) Consolidated statements of cash flows .......................................................................................................................................... 101

1.

Results of Operations and Financial Condition(1) Results of operations
In the six-month period of the fiscal year ending March 31, 2016 (April 1, 2015 to September 30, 2015), the Japanese economy
continued to recover gradually, supported by improvements in corporate performance and employment conditions due to the effects ofeconomic and monetary policies by the Japanese government and Bank of Japan. At the same time, conditions remained uncertain due
to slowing economies overseas, including China, and weakened consumer spending.
In the logistics industry, despite declining fuel prices, the business environment remained severe owing to slowing freight movement
attributable to the weakened consumer spending as well as shortages of drivers and trucks and intensified competition among logistics
operators.
In this environment, the Senko Group established a four-year medium-term business plan that began in the fiscal year ended March 31,
2014 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 trade businessas well as to foster an even greater degree of trust among its customers by building a structure for services with high quality andoutstanding performance in relation to cost.
The following provides an outline of our main activities in the second quarter of the current fiscal year.
In Japan, we started operation of the Sayama PD Center (Sayama City, Saitama Prefecture) as a logistics hub that connects the Tokyo
metropolitan area with the Tohoku, Chubu, and Kansai regions in April. The Sayama PD Center handles a variety of goods, such as
everyday items, and started distributing items for a large sporting goods chain in August. In May, we also started operation of the Narita
Fashion Logistics Center I (Tomisato City, Chiba Prefecture), which distributes items for a global fashion mail-order company and several
imported brands.
In addition, we started operation of the Dangerous Goods No. 2 Warehouse, Daimon Distribution Center (Moriyama City, Shiga
Prefecture) in September and Port of Sendai PD Center (Sendai City, Miyagi Prefecture) in October. The Port of Sendai PD Center islocated at the Port of Sendai, an international trade port, and it is suitable for export and import and handling of sea cargo by modal shifts.
Furthermore, it has good access to each prefecture in the Tohoku region and acts as a logistics hub in the Tohoku region.
Regarding overseas operations, we opened the Laem Chabang Distribution Center (Chonburi Province) at the Laem Chabang Port, thelargest harbor in Thailand, and started full operation in September. It provides distribution services focusing on storing export and importcargo. We also opened a representative office in Hanoi, Vietnam in June to further expand business in the ASEAN region.
To improve profitability, we persuaded our customers to accept revised freight charges based on the higher costs caused by theshortages of trucks and drivers.
In order to upgrade our operation system, we have tried to boost the use of our own trucks. As part of our efforts, we opened a driving
school on the site of the Company’s traffic safety training facility, Crefeel Koto (Higashiomi City, Shiga Prefecture), where any employee
can obtain licenses including a driver’s license for large vehicles, and started operation as a registered driving school in August.
In addition, we have worked to promote modal shifts and received the Distribution Environment Load Reduction Technology
Development Award in May and the Award for Excellent Logistics Operators Promoting Modal Shifts in October from the Japan
Association for Logistics and Transport.
To ensure financial soundness, we transferred four distribution centers to a real estate investment company (a private REIT) managed by
Senko Asset Management Co., Ltd. in September. We will utilize the funds procured to expand and grow our businesses including the
distribution center business.
The six-month-period performance was as follows.
(Unit: Millions of yen)

Operating revenue
Operating income
Ordinary income
Profit attributable to owners of
the parent

Six months ended
September 30, 2014
183,798

Six months ended
September 30, 2015
215,232

5,376
5,131
3,069

Change%31,433

17.1

8,266
7,906

2,889
2,774

53.7
54.1

4,324

1,255

40.9

Consolidated operating revenue for the six-month period ended September 30, 2015 increased 17.1% year on year to ¥215,232 million
due to aggressive expansion of sales and Runtec Corporation becoming a consolidated subsidiary of the Company in October 2014.
Profits increased due to a rise in operating revenue resulting from M&A, our efforts to boost sales, and the revision of freight charges, aswell as a decline in operating expenses resulting from a drop in fuel prices, despite an increase in costs caused by rising outsourcing
2

costs in the distribution business and purchase prices in the trading & commerce business. As a result, consolidated operating income
grew 53.7% to ¥8,266 million, consolidated ordinary income rose 54.1% to ¥7,906 million, and profit attributable to owners of parent
increased 40.9% to ¥4,324 million.
The six-month-period business segment performance was as follows.
Distribution
Operating revenue increased 20.9% year on year to ¥149,946 million. This was mainly due to the fact that Runtec Corporation became aconsolidated subsidiary of the Company, contributions from distribution services we started providing under the contracts from a major
beverage manufacturer and a large gas sales company in the previous year, and our active efforts to develop the market that included
sales to a major drugstore.
Trading & commerce
Operating revenue increased 9.8% year on year to ¥63,243 million. This was mainly due to a recovery in sales following the slump
caused by the consumption tax hike and our active efforts to expand sales.
OthersIn this segment, operating revenue decreased 4.4% year on year to ¥2,041 million.
(2) Financial condition
1) Assets, liabilities and net assets
Total assets
Total assets as of September 30, 2015 were ¥273,306 million, ¥12,003 million lower than at the end of the previous fiscal year. Current
assets amounted to ¥100,419 million, up ¥2,170 million from the end of the previous fiscal year. This was due to increases in cash anddeposits of ¥1,675 million and merchandise and finished goods of ¥550 million. Non-current assets totaled ¥172,766 million, down
¥14,295 million from the end of the previous fiscal year. This was due to a decrease in property, plant and equipment of ¥18,224 million
as a result of transfers of four distribution centers to the private REIT, despite an increase in investments and other assets of ¥3,723
million.
Liabilities
Liabilities as of September 30, 2015 decreased ¥16,980 million from the end of the previous fiscal year to ¥175,585 million. Current
liabilities amounted to ¥79,453 million, down ¥13,100 million from the end of the previous fiscal year. This was due to decreases inshort-term loans payable of ¥10,368 million and income taxes payable of ¥1,248 million. Non-current liabilities totaled ¥96,131 million,
down ¥3,880 million from the end of the previous fiscal year. This was due to decreases in convertible bond-type bonds with subscription
rights to shares of ¥1,828 million, long-term loans payable of ¥202 million, and net defined benefit liability of ¥256 million.
Net assets
Net assets as of September 30, 2015 rose ¥4,977 million from the end of the previous fiscal year to ¥97,721 million, reflecting increasesof ¥913 million in capital stock as a result of the conversion to shares of convertible bond-type bonds with subscription rights to shares,¥914 million in capital surplus, and ¥3,250 million in retained earnings. The equity ratio increased by 3.1 percentage points to 31.5% fromthe end of the previous fiscal year.
2) Cash flows
Cash and cash equivalents as of September 30, 2015 totaled ¥26,641 million, up ¥1,165 million from the end of the previous fiscal year.
Net cash provided by operating activities was ¥6,145 million. Major factors affecting this cash flow were income before income taxes of¥7,841 million, depreciation and amortization of ¥4,930 million, decrease in accrued consumption taxes of ¥1,305 million, and income
taxes paid of ¥3,250 million.
Net cash provided by investing activities was ¥7,780 million. Major factors affecting this cash flow were proceeds from sales of property,
plant and equipment of ¥21,447 million, purchase of property, plant and equipment of ¥8,370 million and purchase of shares ofsubsidiaries and associates of ¥4,076 million.
Net cash used in financing activities was ¥12,782 million. Major factors affecting this cash flow were proceeds from long-term loans
payable of ¥4,130 million, a net decrease in short-term loans payable of ¥7,500 million, repayments of long-term loans payable of¥6,990 million, repayments of finance lease obligations of ¥1,048 million, and cash dividends paid of ¥1,341 million.
(3) Forecast for the fiscal year ending March 31, 2016
The Japanese economy is expected to continue recovering gradually, but uncertainty is growing, reflecting, among other things, slowing
economies overseas and a delayed recovery in consumer spending.

3

In the logistics industry, the business environment is expected to continue to be severely affected by sluggish growth in cargovolumes, a driver shortage problem and intensified competition.
In this environment, the Senko Group will continue to enhance its competitiveness, improve its profitability and upgrade its operating
system.
Considering the operating results for the six-month period of the fiscal year ending March 31, 2016, the effect by the private REIT
commencing investment in September, as well as surrounding economic conditions and moves of cargo volumes, the Company has
revised the forecast of consolidated operating results for the fiscal year ending March 31, 2016 as follows:

Operatingrevenue
Million yen

Million yen

Profit attributable toowners of the parent
Million yen

Net income
per share
Yen

Operating income

Ordinary income

Million yen

Previous forecast (A)440,000

16,80016,000

8,700

62.39

Revised forecast (B)Difference (B – A)

435,000(5,000)17,300500

16,800
800

9,100
400

65.04
−

(1.1)

3.0

5.0

4.6

−

398,447

13,64913,234

7,073

55.06

Difference (%)
Reference: Previous
operating results (the fiscal
year ended March 31, 2015)<Reference Information> Basic Policy on Profit Distribution and Dividends for the Fiscal Year Ending March 31, 2016
The Company’s basic policy on profit distribution is that the Company maintains internal reserves necessary for future business development
and strengthening of management practices and pays dividends in consideration of ties to business performance in addition to stable dividends
in order to increase the return of profits to our shareholders.
For the fiscal year ending March 31, 2016, the Company plans to pay a commemorative dividend of ¥2 per share for the 70th anniversary of thefoundation and 100th anniversary in business.
Accordingly, the Company’s annual dividend forecast, a total of ordinary and commemorative dividends, is ¥20 per share (an interim dividend of¥9 and a year-end dividend of ¥11 per share).
Dividend per share
Record datePrevious forecast(announced on July 31, 2015)

September 30(interim)

March 31

Total (annual)

¥9.00

¥9.00

¥18.00¥11.00(Ordinary dividend: ¥9.00)(Commemorative dividend: ¥2.00)¥20.00(Ordinary dividend: ¥18.00)(Commemorative dividend: ¥2.00)¥9.00¥17.00

Revised forecast
Current dividend per share¥9.00

Previous dividend per share(fiscal year ended March 31,
2015)

¥8.00

4

2. Other Information(1) Changes in significant subsidiaries
None(2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements
None(3) Changes in accounting principles and estimates, and retrospective restatement
Changes in accounting principles(Application of Accounting Standard for Business Combinations, etc.)
Starting with the first quarter of the current fiscal year, Senko has applied the “Revised Accounting Standard for Business
Combinations” (ASBJ Statement No. 21, September 13, 2013; hereinafter referred to as “Business Combinations AccountingStandards”), the “Revised Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22, September 13,
2013; hereinafter referred to as “Consolidation Accounting Standard”) and the “Revised Accounting Standard for Business
Divestitures” (ASBJ Statement No. 7, September 13, 2013; hereinafter referred to as “Business Divestitures Accounting Standard”).
Accordingly, the accounting method was changed to record the difference arising from changes in the equity in subsidiaries underongoing control of the Company as capital surplus, and record acquisition-related costs as expenses for the fiscal year in which theyoccur. In addition, with respect to any business combination entered into on or after the first day of the first quarter of the current fiscal
year, the accounting method was changed to reflect adjustments to the allocation of acquisition cost under provisional accounting
treatment on the consolidated financial statements of the quarterly financial period in which the relevant business combinations
became or will become effective.
Furthermore, the presentation of quarterly net income, etc., was changed and the presentation of minority interests was altered to
non-controlling interests. To reflect the changes in the presentation, certain reclassifications have been made to the consolidated
financial statements with respect to both the second quarter of the previous fiscal year and the previous fiscal year.
In the consolidated statement of cash flows for the second quarter of the current fiscal year, cash flows from purchase or sales ofshares of subsidiaries that do not result in change in scope of consolidation are stated in the class of “cash flows from financing
activities,” and cash flows from expenses related to purchase of shares of subsidiaries resulting in change in scope of consolidationand expenses related to purchase or sales of shares of subsidiaries that do not result in change in scope of consolidation arestated in the class of “cash flows from operating activities.”
Senko has applied the Business Combinations Accounting Standards, etc., in accordance with transitional provisions in paragraph58-2(4) of the Business Combinations Accounting Standards, paragraph 44-5(4) of the Consolidation Accounting Standard andparagraph 57-4(4) of the Business Divestitures Accounting Standard, prospectively at the beginning of the first quarter of the current
fiscal year.
The above change had only a negligible effect on ordinary income and income before income taxes for the second quarter of thecurrent fiscal year, and capital surplus at the end of the second quarter of the current fiscal year.

53. Consolidated Financial Statements(1) Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2015

As of September 30, 2015

AssetsCurrent assets
Cash and deposits

25,68527,361

Notes and accounts receivable

56,60256,396Merchandise and finished goods

6,480

7,031

Real estate for sale

3

3Work in process

191

216

Raw materials and supplies

437

363

8,890

9,065

(42)

(18)

98,248100,419

Buildings and structures (net)68,43558,171

Land

66,22957,717

Other (net)

15,146

15,698

Total property, plant and equipment

149,811

131,587

Goodwill

4,311

4,174

Other

3,395

3,737

Total intangible assets

7,706

7,912

Guarantee deposits

10,39010,497

Deferred tax assets

2,734

2,306

Other

17,15921,201

Allowance for doubtful accounts

(741)

(739)

Total investments and other assets

29,54333,266

187,061

172,766

Business commencement expenses-

121

Total deferred assets-

121

285,309273,306

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Intangible assets

Investments and other assets

Total non-current assets
Deferred assets

Total assets

6

(Unit: Millions of Yen)
As of March 31, 2015

As of September 30, 2015

Liabilities
Current liabilities
Notes and operating accounts payable−trade

37,98937,867

Current portion of bonds

20

10

Short-term loans payable

29,235

18,867

Income taxes payable

3,415

2,166

Provision for bonuses

3,905

4,269

189

101

Other

17,79816,171

Total current liabilities

92,55479,453

Bonds payable

12,00012,000Convertible bond-type bonds with subscription rights
to shares

6,868

5,040

Long-term loans payable

61,971

61,768369

359

Net defined benefit liability

9,381

9,125

Provision for special repairs

33

32

Provision for directors’ bonuses

Non-current liabilities

Provision for directors’ retirement benefits

Asset retirement obligations

575

514

8,811

7,290

100,011

96,131

192,565

175,585

Capital stock

23,09824,011

Capital surplus

21,914

22,829Retained earnings

36,67639,927

Treasury shares(1,183)(1,063)

Total shareholders’ equity

80,50685,704

1,819

1,548

Deferred gains or losses on hedges

(4)

(30)

Foreign currency translation adjustment

543

580

(1,839)(1,726)

519

372

288

359

Non-controlling interests

11,428

11,285

Total net assets

92,74397,721

285,309273,306

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

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

Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares

Liabilities and net assets

7

(2) Consolidated statements of (comprehensive) income(Consolidated statements of income)(For the six months ended September 30, 2014 and 2015)(Unit: Millions of Yen)
Six months ended
September 30, 2014

Six months ended
September 30, 2015

(April 1, 2014–September 30, 2014)(April 1, 2015–September 30, 2015)

Operating revenue

183,798

215,232

Operating cost

165,023

191,875

Operating gross profit

18,77423,356

Selling, general and administrative expenses

13,397

15,090Operating income

5,376

8,266

Interest income

89

102

Dividend income

72

71

Other

335

352

Total non-operating income

497

526

Interest expenses

588

585

Other

153

300

Total non-operating expenses

742

885

5,131

7,906

Gain on sales of non-current assets-

257

Total extraordinary income-

257

Loss on cancellation of lease contracts-

115

Loss on sales of non-current assets

Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary losses
20

54

Loss on retirement of non-current assets-

52

Cancel penalty-

35

Loss on sales of shares of subsidiaries andassociates-

32

Expenses related to commemorative works forcentennial anniversary-

31

Litigation settlement

98-

Loss on business withdrawal

41-

Total extraordinary losses

159

322

Income before income taxes

4,972

7,841

Income taxes−current

1,193

1,959

Income taxes−deferred

697

663

Total income taxes

1,890

2,623

Profit

3,081

5,217

11

893

3,069

4,324

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

8

(Consolidated statements of comprehensive income)(For the six months ended September 30, 2014 and 2015)(Unit: Millions of Yen)
Six months ended
September 30, 2014

Six months ended
September 30, 2015

(April 1, 2014–September 30, 2014)(April 1, 2015–September 30, 2015)

Profit

3,081

5,217

420

(230)

Deferred gains or losses on hedges

108

(30)

Foreign currency translation adjustment

(145)

50

Remeasurements of defined benefit plans, net of tax

178

116

561

(93)

3,642

5,124

3,626

4,278

16

845

Other comprehensive income
Valuation difference on available-for-sale securities

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests9(3) Consolidated statements of cash flows(Unit: Millions of Yen)
Six months ended
September 30, 2014

Six months ended
September 30, 2015

(April 1, 2014–September 30, 2014)(April 1, 2015–September 30, 2015)

Cash flows from operating activities
Income before income taxes

4,972

7,841

Depreciation and amortization

3,975

4,930

(5)

(202)

Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets-

52

Increase (decrease) in net defined benefit liability

(251)

(256)

Increase (decrease) in provision for bonuses

(58)

367

Interest and dividends income

(162)

(173)

Interest expenses

588

585

Decrease (increase) in notes and accounts
receivable-trade

2,068

(29)

Decrease (increase) in inventories

(553)

(513)

Increase (decrease) in notes and accounts
payable-trade(1,985)26

Increase (decrease) in accrued consumption taxes

1,394(1,305)

Other

(578)

(1,499)Sub-total

9,403

9,825

117

150

(590)

(578)

Income taxes paid

(2,566)(3,250)Net cash provided by (used in) operating activities

6,364

6,145

(5,165)(8,370)

Proceeds from sales of property, plant and equipment

356

21,447Purchase of investment securities

(22)

(91)

Proceeds from sales of investment securities

31

524

Purchase of shares of subsidiaries resulting inchange in scope of consolidation

(580)

-

-

(96)

Purchase of stocks of subsidiaries and affiliates(482)(4,076)

Income from sales of stocks of subsidiaries andaffiliates

9

18

(641)

(1,574)(6,496)

7,780

Net increase (decrease) in short-term loans payable

6,450(7,500)

Proceeds from long-term loans payable

1,350

4,130

Repayment of long-term loans payable(5,028)(6,990)

Repayments of finance lease obligations(1,072)(1,048)Purchase of treasury stock

(4)

(5)

Proceeds from sales of treasury stock

191

124

(1,026)(1,341)

Other

(192)

(150)

Net cash provided by (used in) financing activities

666(12,782)

Effect of exchange rate change on cash and cash
equivalents

(54)

21

Net increase (decrease) in cash and cash equivalents

480

1,165

Cash and cash equivalents at beginning of period

17,66725,476

Increase in cash and cash equivalents from newly
consolidated subsidiary225-

18,373

26,641

Interest and dividends income received
Interest expenses paid

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

Payments for sales of shares of subsidiaries resulting
in change in scope of consolidation

Other
Net cash provided by (used in) investing activities
Cash flows from financing activities

Cash dividends paid

Cash and cash equivalents at end of period10