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 Fiscal Year Ended March 31, 2019
[Japan GAAP]

Name of Listed Company:
Code Number:
Representative:
Inquiries:

May 10, 2019
SENKO Group Holdings Co., Ltd.
Stock Listed on: The First Section of the Tokyo Stock Exchange
9069
URL http://www.senkogrouphd.co.jp/en/
Title: President and Representative Director
Name: Yasuhisa Fukuda
Title: Executive Officer, Responsible for PR & IR
Name: Satoru Kokubo
Tel. (06) 6440-5156

Scheduled Date of Annual Meeting of Shareholders:
Scheduled Date of Issue of Financial Report:
Supplemental Information Materials:
Information Meeting for Financial Results:

June 26, 2019
June 26, 2019

Scheduled Date of Dividend Paid: June 27, 2019

Yes
Yes (for analysts)(Amounts less than ¥1 million have been rounded down)

1. Consolidated Operating Results for the Fiscal Year Ended March 31, 2019 (From April 1, 2018 to March 31, 2019)(1) Consolidated Operating Results
Operating revenue
Million yen
529,609492,127

Fiscal year ended March 31, 2019
Fiscal year ended March 31, 2018
(Note) Comprehensive income

%
7.6
8.1

(Percentage figures represent year-on-year changes)
Profit attributable toOperating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
19,631
14.9
19,876
14.8
11,681
22.9
17,0870.0
17,316
0.1
9,503
6.2

Fiscal year ended March 31, 2019: ¥10,547 million (–18.2%)
Profitper share
Fiscal year ended March 31, 2019
Fiscal year ended March 31, 2018
(Reference) Equity in earnings (losses) of affiliates:

Fiscal year ended March 31, 2018: ¥12,893 million (5.3%)

Diluted profit
per share

Yen
76.90
62.64

Return on equity

Yen
71.31
58.08

Fiscal year ended March 31, 2019: ¥402 million

%
10.1
8.9

Ratio of ordinary
profit to total
assets
%5.9
5.6

Ratio of operating
profit to operating
revenue%
3.7
3.5

Fiscal year ended March 31, 2018: ¥342 million(2) Consolidated Financial Position
Total assets
Million yen
340,491
333,972

As of March 31, 2019
As of March 31, 2018
(Reference) Equity:
As of March 31, 2019: ¥119,204 million

Net assets
Million yen
126,895
118,056

Equity ratio
%
35.0
33.7

Net assets per share
Yen
785.08741.44As of March 31, 2018: ¥112,643 million(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Million yen
27,022
24,567

Fiscal year ended March 31, 2019
Fiscal year ended March 31, 2018

Cash flows fromfinancing activities

Million yen(15,770)(37,020)

Million yen(13,224)
9,940

Cash and cash
equivalents at end of
periodMillion yen
22,801
23,795

2. Dividends
June
30
Yen
Fiscal year ended March 31, 2018
Fiscal year ended March 31, 2019
Fiscal year ending March 31, 2020
(Forecast)−−−

Annual dividend
September December
30
31
Yen
Yen
−
11.00
−
13.00
13.00

−

March
31
Yen
11.00
13.00

Yen
22.00
26.00

13.00

26.00

Total

Aggregate
Dividend on
Payout ratio
amountequity ratio(Consolidated)(Consolidated)(Annual)Million yen
%
%
3,354
35.1
3.1
3,966
33.8
3.4
32.4

3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2020 (From April 1, 2019 to March 31, 2020)

First half ending September 30, 2019
Fiscal year ending March 31, 2020

Operating revenue

Operating profit

Million yen
276,000
560,000

Million yen
9,400
20,900

%
6.0
5.7

%
3.2
6.5

(Percentage figures represent year-on-year changes)
Profit attributable toProfitOrdinary profit
owners of parent
per share
Million yen% Million yen
%
Yen
9,400
0.3
5,600
(0.3)
36.88
21,0005.7
12,200
4.4
80.35

Notes
(1) Changes in significant subsidiaries during the fiscal year (Changes in specified subsidiaries associated with change in scope of
consolidation): Yes
Newly included: 1 company(Company name) M-Senko Logistics Co., Ltd.

(2) Changes in accounting principles and estimates, and retrospective restatement(a) Changes due to revision of accounting standards: None(b) Changes other than in (a): None(c) Changes in accounting estimates: None(d) Retrospective restatement: None
(3) Shares outstanding (Common shares)(a) Shares outstanding (including treasury shares)
As of March 31, 2019:

152,861,921 shares

As of March 31, 2018:

152,861,921 shares

1,024,460 shares

As of March 31, 2018:

937,015 shares(b) Treasury shares
As of March 31, 2019:(c) Average number of sharesFiscal year ended March 31, 2019:

151,898,229 sharesFiscal year ended March 31, 2018:

151,727,416 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 March 31, 2019: 351,500
shares; as of March 31, 2018: 349,900 shares) and Performance-linked Stock Compensation Plan for Directors (as of March 31,
2019: 353,000 shares; as of March 31, 2018: 210,200 shares).
[Reference] Overview of Non-Consolidated Operating Results
Non-Consolidated Operating Results for the Fiscal Year Ended March 31, 2019 (From April 1, 2018 to March 31, 2019)(1) Non-Consolidated Operating Results

Fiscal year ended March 31, 2019
Fiscal year ended March 31, 2018

Operating revenue
Million yen
%
9,305
152.0
6,121
−

(Percentage figures represent year-on-year changes)
Operating profit
Ordinary profit
ProfitMillion yen%
Million yen%
Million yen
%
4,330
370.3
4,705
459.4
3,686
333.0
1,169
−
1,024
−
1,107
−

Profitper share
Fiscal year ended March 31, 2019
Fiscal year ended March 31, 2018

Diluted profit
per share
Yen
24.27
7.30

Yen
22.48
6.73

Total assets
Million yen
210,904
207,909

Net assets
Million yen
76,903
77,251(2) Non-Consolidated Financial Position

As of March 31, 2019
As of March 31, 2018
(Reference) Equity:
As of March 31, 2019: ¥76,479 million

Equity ratio
%
36.3
37.0

Net assets per shareYen
503.69506.03As of March 31, 2018: ¥76,878 million

The Company’s transition to a holding company structure on April 1, 2017 has given rise to some disparities between actual results presented
for the fiscal year ended March 31, 2018, and those presented for the fiscal year ended March 31, 2017. Accordingly, the percentage year-onyear changes for the fiscal year ended March 31, 2018 have been omitted because it is not possible to make adequate year-on-year comparisons.
This financial report is exempt from audit 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 “Forecasts”
on page 3.

Index to accompanying materials

1. Overview of Operating Results and Others ................................................................................................................................................. 2(1) Overview of operating results and others ........................................................................................................................................... 2(2) Financial condition ............................................................................................................................................................................. 3(3) Fundamental policy for distribution of earnings and dividend for the current and the next fiscal years ......................................... 4(4) Business risk ....................................................................................................................................................................................... 4
2. Basic Concept Regarding the Selection of Accounting Standards ............................................................................................................. 5
3. Consolidated Financial Statements and Significant Notes Thereto ........................................................................................................... 6(1) Consolidated balance sheets .............................................................................................................................................................. 6(2) Consolidated statements of (comprehensive) income ....................................................................................................................... 8
Consolidated statements of income................................................................................................................................................... 8
Consolidated statements of comprehensive income....................................................................................................................... 10(3) Consolidated statements of changes in equity ................................................................................................................................. 11(4) Consolidated statements of cash flows ............................................................................................................................................ 13

1

1.

Overview of Operating Results and Others(1) Overview of operating results and others(a) Overview of results of operations in the fiscal year ended March 31, 2019
In the fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019), the Japanese economy has been on a path of recovery due
to factors that include improvement in the employment and income environment as well as corporate earnings. The overseas economy
continued to mount a modest recovery on the whole, although it has continued to have an unclear outlook due to concerns regarding thebroadening trade friction between the United States and China and economic slowdown in China.
In the logistics industry where our core business lies, freight volume has been firm particularly for consumer-related and productionrelated cargo.
In this environment, the Senko Group has worked to expand its business areas, upgrade its operating system and strengthen its
earnings capacity, as the second year of “Senko Innovation Plan 2021 (SIP21)” five-year medium-term business plan.
The following provides an outline of our main activities in the fiscal year ended March 31, 2019.
To expand its business areas, SENKO Co., Ltd. commenced operations of Higashi Fuji PD Center (Fuji City, Shizuoka Prefecture) in
April, Nagareyama Logistics Center (Nagareyama City, Chiba Prefecture) in May, Koga PD Center (Koga City, Ibaraki Prefecture) andKazo PD Center Warehouse No. 2 (Kazo City, Saitama Prefecture) in August, and Koto Warehouse (Higashiomi City, Shiga Prefecture)
in November.
The Kazo PD Center Warehouse No. 2 is the first three-temperature-zone center operated jointly by SENKO Co., Ltd. and Runtec
Corporation.
In April, Runtec Corporation commenced operations of its Osaka Branch Nanko Center (Osaka City), expanded its Fukuoka BranchCenter (Kasuya County, Fukuoka Prefecture), and opened Keihin Branch Kawasaki FAZ Center (Kawasaki City) in December.
Outside Japan, in May SHANGHAI SENKO INTERNATIONAL FREIGHT FORWARDING INC. commenced operations of its Qingpu
Logistics Center (Shanghai, China), and in November SINOTRANS SENKO INTERNATIONAL COLD LOGISTICS CO., LTD.
commenced operations of its Beijing Logistics Center (Beijing, China).
In Thailand, M-Senko Logistics Co., Ltd., a joint venture with MK Restaurant Group Public Company Limited, a major restaurant chain
conglomerate, started business operations in July. Moreover, we have been working to strengthen operations in the ASEAN region,
having made Thailand-based Best Global Logistics Co., Ltd., which engages in the business of air and marine transport and other suchoperations, a Group company in September.
To upgrade the operating system, we have been actively moving ahead with labor-saving and mechanization initiatives in our distribution
centers by adopting the latest technologies such as robotic arms and unmanned forklifts. Aiming to accelerate such labor-saving andmechanization initiatives, we set up the AI Project and the Robotics Project in April to promote R&D and other such endeavors andestablished innovatech studio Co., Ltd. in July to develop next-generation technologies and engage in system sales.
Moreover, having succeeded SENKO Co., Ltd.’s marine shipping business, Senko Line Co., Ltd. started business operations in April,and has been working to expand the marine shipping business.
With respect to our modal shift, in June we received the Logistics Environment Grand Prix Award (the highest Logistics Environment
Award) and three Logistics Environment Special Awards from the Japan Association for Logistics and Transport in recognition of ourinitiatives that include switching from the previous use of trucks to the use of railroads and marine vessels for long-distance transport. In
November, we received four Awards for Excellent Business Entities Working on Modal Shift from the same association.
Furthermore, in February we were certified an Outstanding Health and Productivity Management Organization (Large Enterprise
Category) in the White 500, promoted by Japan’s Ministry of Economy, Trade and Industry (METI) in cooperation with Nippon Kenko
Kaigi for the second consecutive year. In addition, through our efforts to promote healthy and pleasant workplace environments,
Toyohashi Senko Transport Co., Ltd. and Harcob Co., Ltd. were both newly recognized in the SME (small to medium-sized enterprise)
Category.
To strengthen the earnings capacity, we worked on streamlining back office operations, improving productivity at distribution sites andother initiatives.
The full-year performance was as follows.
(Unit: Millions of Yen)

Operating revenue
Operating profit
Ordinary profit
Profit attributable to owners ofparentFY ended
March 31, 2018492,127

FY ended
March 31, 2019529,609

17,087
17,316
9,503

Change%37,481

7.6

19,631
19,876

2,544
2,559

14.9
14.8

11,681

2,177

22.9

Consolidated operating revenue for the fiscal year ended March 31, 2019 increased 7.6% year on year to ¥529,609 million. This result
mainly reflected effects of expanding sales and revising the freight charges, year-on-year differences arising with respect to ANZENYUSO CO., LTD. and OKUMURA CO., LTD., which became consolidated subsidiaries in the previous fiscal year, as well as the effects of2

making operating companies of living support services (KEIHANNA helper station Co., Ltd., VENUS CO., LTD., BLUE EARTH JAPANCo., Ltd., etc.) and M-Senko Logistics Co., Ltd. into consolidated subsidiaries in April and in July, respectively.
On the profit front, despite factors that include higher costs largely stemming from rises in outsourcing costs and increases in fuel prices,
consolidated operating profit increased to ¥19,631 million, up 14.9% year on year, and consolidated ordinary profit increased to ¥19,876
million, up 14.8% year on year. The upturn in profits was largely attributable to positive effects on profits brought about by expanding
sales, revising freight charges and making entities into consolidated subsidiaries, and furthermore due to the decrease in the amountamortized for actuarial differences in accounting for retirement benefit obligations. Profit attributable to owners of parent increased to¥11,681 million, up 22.9% year on year, partially as a result of having made Runtec Corporation and other entities into wholly owned
subsidiaries.
The full-year operating revenue by segment was as follows.
Logistics
Operating revenue grew 7.9% year on year to ¥375,384 million in this segment. This was mainly attributable to higher revenues
generated by newly opened large facilities, expansion of sales of daily-use items, food products, apparel, and chemical products, effects
of revising the freight charges, year-on-year differences related to the timing of consolidation of ANZEN YUSO CO., LTD., and making MSenko Logistics Co., Ltd. into a consolidated subsidiary.
Trading & commerce
Operating revenue grew 2.1% year on year to ¥142,294 million in this segment. This was attributable to higher revenues mainly fromtrade operations and sales of petroleum products, and also due to year-on-year differences related to the timing of consolidation of
OKUMURA CO., LTD.
OthersOperating revenue rose 135.9% year on year to ¥11,930 million in this segment. This was mainly attributable to higher revenues due tothe conversion of operating companies of living support services into consolidated subsidiaries.
(b) Forecasts
The Japanese economy is likely to continue to have an unclear outlook due to concerns regarding economic slowdown in China and therest of the world.
In the logistics industry, we are likely to face an increasingly challenging business environment due to rising costs from labor shortagesof drivers, etc., on top of an expected decrease in the overall freight volume of cargo and other factors.
In this environment, the Senko Group will seek to expand its business areas, etc., centering on the logistics and trading businesses,
based on its five-year medium-term business plan as a corporate group that supports people’s lives and industry.
For the next fiscal year, the Group forecasts consolidated operating revenue of ¥560.0 billion, consolidated operating profit of ¥20.9
billion, consolidated ordinary profit of ¥21.0 billion, and profit attributable to owners of parent of ¥12.2 billion.
(2) Financial condition(a) Assets, liabilities and net assets
Total assets
Total assets as of March 31, 2019 were ¥340,491 million, ¥6,518 million higher than at the end of the previous fiscal year.
Current assets amounted to ¥117,263 million, up ¥3,114 million from the end of the previous fiscal year. This mainly reflected increasesof ¥2,570 million in notes and operating accounts receivable and ¥1,219 million in merchandise and finished goods.
Non-current assets totaled ¥223,195 million, up ¥3,428 million from the end of the previous fiscal year. This was primarily due toincreases of ¥2,143 million in property, plant and equipment and ¥1,275 million in intangible assets.
Liabilities
Liabilities as of March 31, 2019 decreased ¥2,320 million from the end of the previous fiscal year to ¥213,595 million.
Current liabilities totaled ¥98,669 million, down ¥7,379 million from the end of the previous fiscal year. This was mainly due to a decreaseof ¥7,770 million in short-term loans payable.
Non-current liabilities totaled ¥114,926 million, up ¥5,059 million from the end of the previous fiscal year. This was primarily due toincreases of ¥1,464 million in long-term loans payable and ¥3,157 million in lease obligations.
Net assets
Net assets as of March 31, 2019 rose ¥8,838 million from the end of the previous fiscal year to ¥126,895 million. This was mainly
attributable to increases of ¥8,015 million in retained earnings and ¥2,225 million in non-controlling interests, despite decreases of ¥424
million in valuation difference on available-for-sale securities and ¥877 million in remeasurements of defined benefit plans. The equity
ratio increased by 1.3 percentage points to 35.0% from the end of the previous fiscal year.

3(b) Cash flows
Cash and cash equivalents at end of period decreased by ¥993 million year on year to ¥22,801 million.
Net cash provided by operating activities amounted to ¥27,022 million. This was mainly due to profit before income taxes of ¥18,901
million, depreciation of ¥14,334 million, an increase in cash due to an increase in notes and accounts payable-trade of ¥871 million andan increase in cash due to a decrease in consumption taxes refund receivable of ¥1,440 million, and despite a ¥2,138 million decreasein cash from an increase in notes and accounts receivable-trade and income taxes paid of ¥7,649 million.
Net cash used in investing activities totaled ¥15,770 million. This was mainly due to the purchase of property, plant and equipment of¥24,375 million, purchase of shares of subsidiaries resulting in change in scope of consolidation of ¥1,380 million and purchase ofshares of subsidiaries and associates of ¥1,295 million, despite proceeds from the sales of property, plant and equipment of ¥14,094
million.
Net cash used in financing activities totaled ¥13,224 million. This was mainly due to net decrease in short-term loans payable of ¥5,331
million, repayment of long-term loans payable of ¥9,865 million, repayments of finance lease obligations of ¥3,871 million, and cash
dividends paid of ¥3,659 million, despite proceeds from long-term loans payable of ¥7,711 million and proceeds from share issuance tonon-controlling shareholders of ¥2,305 million.
(c) Performance indicators associated with cash flows
Fiscal years ended March 31

2015

2016

2017

2018

2019

Equity ratio (%)

28.4

32.6

35.1

33.7

35.0

Market capitalization equity ratio (%)

38.1

36.4

38.0

37.6

41.0

Interest-bearing debt to cash flow ratio

5.7

5.7

4.1

4.9

4.2

Interest coverage ratio

15.5

14.7

21.9

25.4

26.2

Notes:
Equity ratio: 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 shares).
• 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 dividends for the current and the next fiscal years
While securing internal reserves necessary for future business development and management structure reinforcement, the basic policy of
the Company is to return profits to shareholders by implementing stable dividends and dividends that are linked to business results withthe aim of enhancing the return to its shareholders.
In accordance with this policy, the year-end dividend for the fiscal year ended March 31, 2019 is set at ¥13.00 per share as previously
forecasted. Combined with the already declared interim dividend of ¥13.00, the total annual dividend is expected to be ¥26.00.
For the next fiscal year’s dividend, we expect an annual dividend of ¥26.00 per share (interim dividend of ¥13.00, year-end dividend of¥13.00), based on business results forecasts.
(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, 2018), which includes a section about business and other risks.

42.

Basic Concept Regarding the Selection of Accounting Standards
To facilitate comparisons of its consolidated financial statements across time periods and with other companies, the Senko Group intends
to prepare its consolidated financial statements based on Japanese generally accepted accounting principles (JGAAP) for the time being.
With regard to the adoption of International Financial Reporting Standards (IFRS), the Company intends to respond to this issue
appropriately while giving consideration to various circumstances in Japan and overseas.

5

3. Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2018

As of March 31, 2019

AssetsCurrent assets
Cash and deposits

24,99525,232

Notes and operating accounts receivable

70,52673,097

Merchandise and finished goods

7,293

8,513

Work in process

351

670

Raw materials and supplies

536

583

10,460

9,181

(16)

(14)

114,148

117,263

Buildings and structures

146,448

142,722

Accumulated depreciation(91,402)(78,077)

Buildings and structures, net

55,04564,645

Machinery, equipment and vehicles

59,00362,543

Accumulated depreciation(38,496)(40,819)

Machinery, equipment and vehicles, net

20,506

21,723Tools, furniture and fixtures

7,270

8,398

Accumulated depreciation(5,731)(6,656)

Tools, furniture and fixtures, net

1,539

1,742

Land

59,61359,669Leased assets

13,002

16,875

Accumulated depreciation(6,085)(6,751)

Leased assets, net

6,916

10,124

Construction in progress

16,4494,308

Total property, plant and equipment

160,071

162,214Goodwill

6,522

7,446

Other

4,225

4,576

Total intangible assets

10,747

12,022

Investment securities

22,642

20,260Long-term loans receivable

3,709

3,888

Net defined benefit asset

3,658

3,088

Guarantee deposits

12,11813,271

Deferred tax assets

4,317

5,138

Other

3,718

4,019

Allowance for doubtful accounts(1,216)(709)

Total investments and other assets

48,947

48,958

Total non-current assets

219,766

223,195

Business commencement expenses

57

32

Total deferred assets

57

32

333,972

340,491

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

Intangible assets

Investments and other assets

Deferred assets

Total assets

6

(Unit: Millions of Yen)
As of March 31, 2018

As of March 31, 2019

Liabilities
Current liabilities
Notes and operating accounts payable-trade37,41837,603

Electronically recorded obligations-operating

7,189

7,047

Current portion of bonds

48

48

Short-term loans payable

29,351

21,580

Lease obligations

3,073

3,181

Income taxes payable

4,509

4,242

Provision for bonuses

4,625

5,253

Provision for directors’ bonuses

197

347

Provision for loss on disaster

–

103

Other

19,634

19,261

Total current liabilities

106,048

98,669Bonds payable

17,16817,120Convertible bond-type bonds with share acquisitionrights10,03910,029Long-term loans payable

63,23264,696

Lease obligations

7,342

10,500

Provision for directors’ retirement benefits

159

180

Provision for special repairs

82

80

Provision for share-based remuneration

–

124

6,901

6,970

Non-current liabilities

Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

819

1,011

4,120

4,212

109,866

114,926

215,915

213,595

Net assets
Shareholders’ equity
Capital stock

26,52826,528

Capital surplus

29,73029,841Retained earnings

54,96862,983

Treasury shares

(590)

(697)

110,637

118,656

1,775

1,350

Deferred gains or losses on hedges

(61)

(3)

Foreign currency translation adjustment

334

122

Remeasurements of defined benefit plans

(42)

(920)

2,005

548

Share acquisition rights

373

424

Non-controlling interests

5,040

7,265

118,056

126,895

333,972

340,491

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total accumulated other comprehensive income

Total net assets
Total liabilities and net assets

7

(2) Consolidated statements of (comprehensive) income(Consolidated statements of income)(Unit: Millions of Yen)
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

(April 1, 2017–March 31, 2018)(April 1, 2018–March 31, 2019)

Operating revenue

492,127

529,609

Operating cost

440,671471,129

Operating gross profit

51,45658,479Selling, general and administrative expenses

34,36938,847

Operating profit

17,087

19,631Non-operating income
Interest income

101

122

Dividend income

136

146

Share of profit of entities accounted for using equity
method342

402

Land and house rent received

264

246

Other

1,086

1,175

Total non-operating income

1,931

2,093

Interest expenses

976

1,035

Other

725

813

1,701

1,849

17,316

19,876

Subsidy income

638

1,586

Gain on sales of non-current assets

444

370

Gain on sales of investment securities

66

259

Gain on liquidation of subsidiaries and associates–

79

Reversal of allowance for doubtful accounts for
subsidiaries and associates

–

34

157

–

1,307

2,330

651

1,565

–

675

126

334

Loss on liquidation of subsidiaries–

200

Provision of allowance for doubtful accounts for
subsidiaries and associates

43

149

Loss on office withdrawal

310

133

Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income

Delinquency charges
Total extraordinary income
Extraordinary losses
Loss on reduction of non-current assets
Loss on valuation of shares of subsidiaries andassociates
Loss on retirement of non-current assets

Loss on disaster–

111

Provision for loss on disaster–

103

Impairment loss–

31

Loss on liquidation of subsidiaries

204–

Loss on business withdrawal

169–

Loss on valuation of investments in capital ofsubsidiaries and associates

56–

Expenses related to closing of stores

53–

Expenses related to commemorative works forcentennial anniversary

39–

Loss on sales of non-current assets

30

–

1,688

3,304

Total extraordinary losses

8Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

(April 1, 2017–March 31, 2018)(April 1, 2018–March 31, 2019)

Profit before income taxes

16,936

18,901

Income taxes-current

5,778

7,102

Income taxes-deferred

(8)

(295)

Total income taxes

5,769

6,806

Profit11,167

12,094

Profit attributable to non-controlling interests

1,663

413

Profit attributable to owners of parent

9,503

11,6819

(Consolidated statements of comprehensive income)(Unit: Millions of Yen)
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

(April 1, 2017–March 31, 2018)(April 1, 2018–March 31, 2019)

Profit11,167

12,094

Valuation difference on available-for-sale securities

430

(433)

Deferred gains or losses on hedges

(65)

58

Foreign currency translation adjustment

104

(294)

Remeasurements of defined benefit plans, net of tax

1,256

(877)

Total other comprehensive income

1,725(1,547)

12,893

10,547

Comprehensive income attributable to owners ofparent11,158

10,227

Comprehensive income attributable to noncontrolling interests

1,734

320

Other comprehensive income

Comprehensive income
Comprehensive income attributable to10

(3) Consolidated statements of changes in equity
Fiscal year ended March 31, 2018 (April 1, 2017 – March 31, 2018)(Unit: Millions of Yen)
Shareholders’ equity

Balance at the beginning of current
periodCapital stock

Capital surplus

26,52825,411Retainedearnings

Treasury shares

Total
shareholders’equity(657)

99,93748,654

Changes of items during period
Dividends of surplus(3,354)(3,354)

Profit attributable to owners ofparent

9,503

9,503

Purchases of treasury shares
Disposal of treasury shares

(455)

522

509

(13)

Change of scope of consolidation

165

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes of items other thanshareholders’ equity

165

4,332

4,332
–

Total changes of items during period
Balance at end of current period

(455)

–

4,319

6,314

67

10,70026,52829,73054,968(590)

110,637

Accumulated other comprehensive income

Balance at the beginning of current
periodValuationdifferenceson availableforsecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

1,391

1

250

(1,293)

Total
accumulated
othercomprehensive
income350

Share
Acquisitionrights

Noncontrollinginterests

Total net
assets396

13,406

114,090

Changes of items during period
Dividends of surplus–(3,354)

Profit attributable to owners ofparent

–9,503

Purchases of treasury shares

–

(455)

Disposal of treasury shares–

509

Change of scope of consolidation

–

165

–

4,332

Change in ownership interest ofparent due to transactions with
non–controlling interests
Net changes of items other thanshareholders’ equity
Total changes of items during period
Balance at end of current period

383

(63)

83

1,250

1,654

(22)

(8,366)(6,734)

383

(63)

83

1,250

1,654

(22)

(8,366)

3,966

1,775

(61)

334

(42)

2,005

373

5,040

118,056

11

Fiscal year ended March 31, 2019 (April 1, 2018 – March 31, 2019)(Unit: Millions of Yen)
Shareholders’ equity

Balance at the beginning of current
periodCapital stock

Capital surplus

26,52829,730Retainedearnings

Treasury shares

Total
shareholders’equity(590)

110,637

54,968Changes of items during period
Dividends of surplus(3,660)(3,660)

Profit attributable to owners ofparent11,681

11,681

Purchases of treasury shares
Disposal of treasury shares

(127)

20

17

(2)

Change of scope of consolidation(5)

Change in ownership interest ofparent due to transactions with
non–controlling interests
Net changes of items other thanshareholders’ equity

(5)

114

114
–

Total changes of items during period
Balance at end of current period

(127)

–

111

8,015

(107)

8,018

26,52829,841

62,983(697)

118,656

Accumulated other comprehensive income

Balance at the beginning of current
periodValuationdifferenceson availableforsecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

1,775

(61)

334

(42)

Total
accumulated
othercomprehensive
income

2,005

Share
Acquisitionrights

Noncontrollinginterests

Total net
assets373

5,040

118,056

Changes of items during period
Dividends of surplus–(3,660)

Profit attributable to owners ofparent–11,681

Purchases of treasury shares

–

(127)

Disposal of treasury shares–

17

Change of scope of consolidation

–

(5)

–

114

Change in ownership interest ofparent due to transactions with
non–controlling interests
Net changes of items other thanshareholders’ equity

(424)

57

(212)

(877)

(1,457)

51

2,225

820

Total changes of items during period

(424)

57

(212)

(877)

(1,457)

51

2,225

8,838

Balance at end of current period

1,350

(3)

122

(920)

548

424

7,265

126,895

12

(4) Consolidated statements of cash flows(Unit: Millions of Yen)
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

(April 1, 2017 – March 31, 2018)(April 1, 2018 – March 31, 2019)

Profit before income taxes

16,936

18,901

Depreciation

12,43914,334

–

31

(66)

(259)

Loss on valuation of shares of subsidiaries and associates–

675

Loss on valuation of investments in capital of subsidiaries andassociates

56–

Loss (gain) on sales of non-current assets

(413)

(348)

Loss on retirement of non-current assets

126

334

Loss on reduction of non-current assets

651

1,565

Subsidy income(638)(1,586)

Loss on disaster–

111

Loss (gain) on liquidation of subsidiaries and associates

–

(79)

Loss on liquidation of subsidiaries–

200

Cash flows from operating activities

Impairment loss
Loss (gain) on sales of investment securities–

133

Decrease (increase) in net defined benefit asset

Loss on office withdrawal

470

(57)

Increase (decrease) in net defined benefit liability

(256)

(598)

Increase (decrease) in provision for bonuses

189

584

Increase (decrease) in provision for share-based remuneration–

124

Increase (decrease) in provision for loss on disaster–

103

Interest and dividend income

(237)

(272)

Interest expenses

976

1,035

Decrease (increase) in notes and accounts receivable-trade(3,862)(2,138)62(1,547)

Increase (decrease) in notes and accounts payable-trade

2,259

871

Increase (decrease) in accrued consumption taxes

2,119

(647)

Decrease (increase) in consumption taxes refund receivable(2,055)

1,440

Other

(373)

484

Subtotal

28,38633,397

Proceeds from subsidy income

1,891

1,586

Interest and dividend income received

519

718

Interest expenses paid

(967)

(1,030)

Income taxes paid

(5,262)(7,649)Net cash provided by (used in) operating activities

24,56727,022

Payments into time deposits(318)(3,595)

Proceeds from withdrawal of time deposits

417

2,412

Purchase of property, plant and equipment(37,041)(24,375)

Proceeds from sales of property, plant and equipment

Decrease (increase) in inventories

Cash flows from investing activities

11,121

14,094Purchase of investment securities

(387)

(116)

Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Purchase of shares of subsidiaries and associates

155

377

(2,140)(1,380)(5,131)(1,295)

Payments for guarantee deposits(1,332)(1,576)Other(2,362)(315)

Net cash provided by (used in) investing activities(37,020)(15,770)

13

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

(April 1, 2017 – March 31, 2018)(April 1, 2018 – March 31, 2019)

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

9,777(5,331)

Proceeds from long-term loans payable

22,105

7,711

Repayment of long-term loans payable(17,792)(9,865)

Repayments of finance lease obligations(3,854)(3,871)

Proceeds from issuance of bonds

10,000

–

–

2,305

Payments from changes in ownership interests in subsidiaries that
do not result in change in scope of consolidation(6,883)(169)

Cash dividends paid

(3,340)(3,659)

(71)

(343)

9,940

(13,224)

55

(115)

Net increase (decrease) in cash and cash equivalents(2,456)(2,087)

Cash and cash equivalents at beginning of period

26,197

23,79555

1,093

23,79522,801

Proceeds from share issuance to non-controlling shareholders

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 period14