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, 2013 [Japan GAAP]
April 25, 2013
Name of Listed Company :Code Number :SENKO Co., Ltd.
9069

Stock Listed on : the First Section of the Tokyo Stock Exchange
and Osaka Securities Exchange
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, 2013
Scheduled Date of Dividend Paid : June 28, 2013
Scheduled Date of Issue of Financial Report :June 27, 2013

Supplemental Information Materials :YesInformation Meeting for Financial Results :Yes (for institutional investors)

1. Consolidated Operating Results for the Fiscal Year Ended March 2013 (From April 1, 2012 to March 31, 2013)(1) Consolidated Operating Results
Note : Amounts less than one million yen have been rounded down.
Operating revenues
Million yen
293,534
270,361

%
8.6
12.2

Operating income

Ordinary income

Million yen
9,908
8,274

Million yen
10,1008,333

Fiscal year ended March 31, 2013
Fiscal year ended March 31, 2012
(Note) Comprehensive income :Fiscal year ended March 31, 2013 : 5,838 million yen (49.8 %)Net income
per share

%
19.8
35.6

Net income

%
21.2
30.7

Million yen
5,202
3,478

%
49.6
53.8

Fiscal year ended March 31, 2012 : 3,897 million yen (87.1 %)Return on
shareholders’equityDiluted net income
per share

Ratio of ordinary Ratio of operating
income to total income to operating
assetsrevenues

Yen

Yen

%

%

%

Fiscal year ended March 31, 2013

41.45

37.46

8.2

4.9

3.4

Fiscal year ended March 31, 2012

27.65

25.07

5.8

4.4

3.1

(Reference) Equity in earnings (losses) of affiliates
Fiscal year ended March 31, 2013 : 2 million yen

Fiscal year ended March 31, 2012 : -3 million yen(2) Consolidated Financial Position
Total assets

Net assets

Net assets per share

Equity ratio

Million yen

Million yen%

Yen

Fiscal year ended March 31, 2013
208,095
Fiscal year ended March 31, 2012
202,847(Reference) Shareholders’ equity :Fiscal year ended March 31, 2013 : 65,139 million yen

67,327
63,27431.3
30.3

521.48488.25

Fiscal year ended March 31, 2012 : 61,424 million yen(3) Consolidated Cash Flows
Cash flows fromoperating activities

Million yen

Million yen

Cash and cash
equivalents at fiscal
year-end
Million yen

Cash flows frominvesting activities

Million yen

Cash flows fromfinancing activities

Fiscal year ended March 31, 2013

11,037(6,236)(2,551)

15,690Fiscal year ended March 31, 2012

9,341

(16,466)

6,094

13,354

2. Dividends
Annual dividend

Fiscal year ended March 31, 2012
Fiscal year ended March 31, 2013
Fiscal year ending March 31, 2014
(Forecast)First
quarter
Yen-

Secondquarter
Yen
6.00
7.00

Third
quarter
Yen
-

-

7.00

-

Year-end

Total

Yen
6.00
7.00

Yen
12.00
14.00

7.00

14.00

Aggregate
amount(Annual)(Note) Dividends include ¥1.00 of commemorative dividend for the end of 2Q and year end of FY3/12.

Million yen
1,509
1,755

Dividend on
equity ratio(Consolidated)
Payout ratio(Consolidated)

%
43.4
33.8
29.1

%
2.5
2.8

3. Forecast of Consolidated Operating Results for the Year Ending March 2014 (From April 1, 2013 to March 31, 2014)(Percentage figures represent year on year changes)
Net income per
Operating revenues Operating income Ordinary income
Net income
shareMillion yen% Million yen% Million yen% Million yen%
Yen
First half ending September 2013
Fiscal year ending March 2014

149,000
310,000

3.2
5.6

5,000
11,000

7.3
11.0

4,900
11,000

4.0
8.9

2,800
6,000

4.7
15.3

22.42
48.03

*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 : Yes(d) Retrospective restatements : None
(3) Shares outstanding (Common shares)(a) Shares outstanding (including treasury stocks)
As of March 31, 2013 :128,989,476 shares
As of March 31, 2012 :(b) Treasury stock
As of March 31, 2013 :4,077,506 shares
As of March 31, 2012 :(c) Average number of shares (quarterly consolidated cumulative period)
Fiscal year ended March 31, 2013 :

125,516,847 shares

128,989,476 shares
3,183,467 sharesFiscal year ended March 31, 2012 :

125,812,093 shares[Reference] Overview of Non-Consolidated Operating Results
1. Non-Consolidated Operating Results for the Fiscal Year Ended March 2013 (From April 1, 2012 to March 31, 2013)(1) Non-Consolidated Operating Results(Percentage figures represent year on year changes)
Operating revenues

Fiscal year ended March 31, 2013
Fiscal year ended March 31, 2012

Million yen
186,086
182,586%
1.9
4.8

Net income
per share

Operating income

Ordinary income

Million yen
6,192
5,598

Million yen
6,377
5,724

%
10.6
16.8

Net income

%
11.4
16.0

Million yen%
3,184 46.6
2,172 128.0

Diluted net income per
share
Yen

Yen

Fiscal year ended March 31, 2013

25.37

22.93

Fiscal year ended March 31, 2012

17.27

15.66

(2) Non-Consolidated Financial Position
Total assets
Fiscal year ended March 31, 2013
Fiscal year ended March 31, 2012
(Reference) Shareholders’ equity :Net assets

Net assets per share

Equity ratio

Million yen

Million yen%

Yen

176,639
173,572

58,22056,50032.8
32.5

464.53447.93Fiscal year ended March 31, 2013 : 58,024 million yen

Fiscal year ended March 31, 2012 : 56,351 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 2014” on page 3.

Index to accompanying materials

2

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

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．Corporate Group5

3．Management Policies

6(1) Fundamental Management Policy

6(2) Targeted Performance Indicators

6(3) Medium and Long-term Strategies

6

4. Consolidated Financial Statements

7(1) Consolidated Balance Sheets

7(2) Consolidated Statements of (Comprehensive) Income

9

Consolidated Statements of Income

9

Consolidated Statements of Comprehensive Income

10(3) Consolidated Statements of Changes in Net Assets

11(4) Consolidated Statements of Cash Flows

14

1

1.

Results of Operations and Financial Condition(1)
1)

Results of Operations
Fiscal year performance
Some slight degree of recovery in the Japanese economy was initially seen in areas including manufacturing activity andconsumer expenditure in response investment in public works for the recovery-related demand from the earthquake andgovernment measures such as the eco-car subsidy program. Subsequently the economic environment continued to bechallenging because of the persistence of the strong yen and a decline in exports caused by the slowdown in overseas
economies combined with the deterioration of the impact of government policies to stimulate consumer spending. The economy
bottomed towards the end of the year, however, and a gently recovering trend continued to become evident. Moreover, since thechange of government in December, there has been a sustained tendency towards yen weakness and rising equity prices in
response.
In the logistics industry too, an initial limited improvement in manufacturing activity and consumer spending resulted in a rising
trend in cargo volumes but this was followed by further declines in both exports and consumer expenditure and so the operating
environment remains difficult.
In this environment, the Senko Group is had been conducted aggressive activities in Japan and overseas because this is the
final year of the three-year medium-term business plan based on the slogan “Moving Global” that it started in April 2010.
In Japan, as the companies that ship cargo made moves to spread out the locations of manufacturing and inventory storage
locations regionally as a hedge against the risk of natural disasters and strove to secure multiple sources for raw materials andsupplies and concentrated regional warehousing facilities so as to improve logistical efficiency on a regional basis, the Senko
Group took positive steps to satisfy these regional needs and to serve new customers won by aggressive marketing programs
by establishing new logistical facilities in the Kanto, Chubu and Kansai regions.
Overseas, a joint venture company was established in Thailand to provide distribution services to the Toyota Tsusho Corporation,Ltd., and the automobile assembly plants of Japanese corporations. In Kazakhstan, the Company set up distribution operations
to serve the convenience store business of Ministop Co. Thus, the Company aggressively expanded its business globally.
In September, as part of the drive to strengthen our commerce and trade business, we welcomed Obata Co., Ltd. into the groupas a subsidiary. Obata Co., Ltd. conducts wholesale activities in health foods and beverages, daily-use items, cosmetics andother goods in the Hokkaido and Tohoku regions.
In the fiscal year ended March 2013, revenues increased 8.6% to 293,534 million yen as a result of aggressive sales activities toattract new customers, the contribution deriving from the investments made to establish large new facilities in Noda City in Chiba
prefecture, Kitahiroshima City in Hokkaido, and Hyuga City in Miyazaki Prefecture, and the acquisitions of Smile Corp. andChugoku Piano Transport Co., Ltd. in the previous fiscal year.
Earnings benefited from growth in sales, the contribution from the newly acquired subsidiaries, cost-cutting measures and steps
taken to increase productivity with the result that operating income increased 19.8% to 9,908 million yen, ordinary income
increased 21.2% to 10,100 million yen, and net income increased 49.6% to 5,202 million yen.
The business segment performance as follows.
Distribution
There was an increase in cargo volume for general merchandise stores (GMS) in the distribution logistics business because of
the start of operations at large logistics facilities in the previous fiscal year. In the housing distribution business, there was anincrease in cargo volume for housing materials. Chugoku Piano Transport Co., Ltd., which became a subsidiary in the previous
fiscal year, also contributed to the performance in the period. As a result, segment operating revenues increased 2.6% to228,251 million yen.
Commerce and Trade
Operating revenues increased 38.6% to 62,118 million yen due to the addition of Smile Corp. to the group in the previous fiscal
year and higher revenues in the trade business and petroleum marketing business.
OthersOperating revenues increased 3.6 % to 3,164 million yen.

22)

Forecast for Fiscal Year Ending March 2014
Going forward, the Japanese economy is seen recovering gradually, due to higher exports due to the weaker yen and theimpact of government economic stimulatory measures and anticipatory demand ahead of the hike in the consumption tax rate.
In this environment, and based on its new four-year medium-term business plan starting from fiscal 2013 year, the Senko Groupseeks to realize, in addition to its "Moving Global" corporate slogan, the following concepts : "go beyond logistics""make the world go round" and "revolutionize business."
In specific terms, this means striving to reinforce earnings power, developing new businesses, strengthening its operations in
Asia and in other regions, expanding its distribution centers operations, and developing and providing higher value-added
services. As a result of aggressively pursuing such corporate activity, the Group's consolidated forecasts for the next fiscal
year are for operating revenues of 310.0 billion yen, operating income of 11.0 billion yen, ordinary income of 11.0 billion yen andnet income of 6.0 billion yen.

(2)
1)

Financial Condition
Assets, liabilities and net assets
Total assets
Total assets were 208,095 million yen at the end of the year, 5,247 million yen higher than at the end of the previous fiscal year.
This was mainly due to an increase of 2,336 million yen in cash and deposits, 1,699 million yen in notes and accounts receivableand 1,573 million yen in construction in progress.
Liabilities
Total liabilities were 140,767 million yen at the end of the year, 1,194 million yen higher than at the end of the previous fiscal year.
There were increases of 539 million yen in short-term loans payable, 5,000 million yen in convertible bond-type bonds with
subscription rights and 1,326 million yen in long-term loans payable but there were decreases in notes and operating accounts
payable- trade of 919 million yen and in current portion of bonds with subscription rights of 4,900 million yen.
Net assets
Net assets increased 4,053 million yen to 67,327 million yen mainly because of a 3,567 million yen increase in retained earnings
and a 516 million yen increase in valuation differences on available-for-sale securities. The equity ratio increased 1.0 percentage
points to 31.3%.

2)

Cash flows
Cash and equivalents at the end of the term increased by 2,336 million yen year-on-year to 15,690 million yen.
Operating cash flow was a positive 11,037 million yen (income). Although income before income taxes was 9,618 million yen
and depreciation and amortization were 6,737 million yen, notes and accounts receivable rose by 1,559 million yen, and income
taxes were 3,772 million yen.
Investing cash flow was 6,236 million yen in outgoings. This derived from expenditures of 6,014 million yen for purchase ofproperty plant and equipment.
Financial cash flow was a negative 2,551 million yen (expenditure). Although proceeds from long-term loans payable was 8,869
million yen and income from issuance of bonds with subscription rights was 5,000 million yen, outgoings were 2,626 million yen
or net decrease in short-term loans payable, 4,378 million yen for repayment of long-term loans payable, 2,282 million yen for
repayments of finance lease obligations, 4,900 million yen for redemptions of bonds with subscription rights and 1,634 million
yen for dividend payments.

3

3)

Performance indicators associated with cash flows
Years ended March 31

2009

2010

2011

2012

2013

Equity ratio (%)

33.5

32.0

33.3

30.3

31.3

Market capitalization equity ratio (%)

22.1

22.4

19.1

20.6

29.7

Interest-bearing debt to cash flow ratio

9.9

9.6

8.2

7.6

6.6

Interest coverage ratio

6.1

5.3

6.2

7.9

9.6

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, 2013 was set at 6.00 yen per share, butwith the year-end dividend of 7.00 yen in view of the strong business performance throughout the year, combined with the alreadydeclared interim dividend of 7.00 yen, the total annual dividend is expected to be 14 .00 yen.
For the next fiscal year's annual dividend, the same amount of 14.00 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 28, 2012), which includes a section about business and other risks.

4

2

Corporate GroupThe Senko Group includes Senko, 71 subsidiaries and four affiliated companies. To meet the increasingly diverse and exacting
needs of 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 cargotransport by truck, cargo transport 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 ofthese business operations is presented below.

Customers

SENKO CO., LTD.
Distribution

Trading and Commerce

Others

Subsidiaries

Subsidiaries

Subsidiaries○ Logi Solution Co,, Ltd.

○ Senko Trading Co., Ltd.
○ Smile Corp.
○ Marufuji Co., Ltd.
○ Fuji Label Co., Ltd.
○ Takano Machinery Works Co., Ltd.
○ Obata Co., Ltd.
○ Shanghai Smile Corp.
○ HONG KONG SMILECORP LTD.
Japan Select LLP○ Senko Insurance Services Co., Ltd.
○ Senko Information System Co., Ltd.
○ Logi Solution Co., Ltd.
○ Saitama Senko Transport Co., Ltd.
○ Chiba Senko Transport Co., Ltd.
○ Fuji Senko Transport Co., Ltd.
○ Shiga Senko Transport Co., Ltd.
○ Minami Osaka Senko Transport Co., Ltd.
○ Shikoku Reefer Transport andWarehousing Co., Ltd.
○ Miyazaki Senko Transport Co., Ltd.
○ Senko Foods Co., Ltd.
Crefeel Koto Co., Ltd.
○ S-TAFF Co., Ltd.

○ Senko Moving Plaza Co., Ltd.
○ Senko A Line Amano Co., Ltd.
○ Tokyo Nohin Daiko Co., Ltd.
○ Inui Transport Co., Ltd.
○ Chugoku Piano transport Co., Ltd.
○ Sapporo Senko Transport Co., Ltd.
○ Tohoku Senko Transport Co., Ltd.
○ Kanto Senko Transport Co., Ltd.
○ Saitama Senko Transport Co., Ltd.
○ Senko Housing Logistics Co., Ltd.
○ Chiba Senko Transport Co., Ltd.

Subsidiaries
Senko Medical Logistics Co., Ltd.
Senko (U.S.A.) Inc.

○ Senko Fashion Logistics Co., Ltd.

○ Dalian Tri-Enterprise Logistics Co., Ltd.

○ Kashiwa Senko Transport Co., Ltd.

○ DFTZ Best International Trade &Logistics Co., Ltd.

Noda Senko Logi Service Co., Ltd.
○ Kanagawa Senko Transport Co., Ltd.
○ Hokuriku Senko Transport Co., Ltd.
○ Fuji Senko Transport Co., Ltd.
○ Daito Senko Apollo Co., Ltd.
○ Tokai Senko Transport Co., Ltd.
○ Toyohashi Senko Transport Co., Ltd.
○ Mie Senko Logistics Co., Ltd.

Senko Logistics (Shanghai) Co., Ltd.
Shanhai Senko International Freight Co., Ltd.
○ Guangzhou Senko Logistics Co., Ltd.
Senko International Logistics(Hong Kong) Ltd.
Qingdao Xuexing International
Logistics Co., Ltd.
Shenyang Senko Logistics Co., Ltd.
Senko (Thailand) Co., Ltd.

○ Shiga Senko Transport Co., Ltd.

○ Senko International Logistics Pte. Ltd.

○ Osaka Senko Transport Co., Ltd.

Senko Logistics Australia Pty Ltd.

○ Tokyo Nohin Daiko West Japan Co., Ltd.

Senko-Lancaster Silkroad Logistics LLP○ Minami Osaka Senko Transport Co., Ltd.
○ Hanshin Senko Transport Co., Ltd.
○ Esaka Logistics Service Co., Ltd.
○ Hanshin Transport Co., Ltd.
○ Nara Senko Logistics Co., Ltd.
○ Okayama Senko Transport Co., Ltd.

Senko Business Support Co., Ltd.
Logi Factoring Co., Ltd.
Senko School Farm Tottori Co., Ltd.
Senko Logistics (U.S.A.) Inc.

Affiliated Companies
Moriyama Hoso Co., Ltd.
Hososhimako Niyaku Shinko Co., Ltd.
Ko-Senko Logistics Co.,Ltd.
Senko Logistics (Thailand) Co.,Ltd.

○ Sankyo Freight Co., Ltd.
○ Sanyo Senko Transport Co., Ltd.
○ Chushikok Logistics Co., Ltd.
○ Fukuoka Senko Transport Co., Ltd.
○ Minami Kyushu Senko Co., Ltd.
○ Miyazaki Senko Transport Co., Ltd.
○ Miyazaki Senko Apollo Co., Ltd.

5

○ : Consolidated subsidiaries

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
services of 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 dedicatedto growth and trust and able to fulfill its obligations as a leading member of the logistics industry.

(2)

（3）

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
FY2012(Actual)

FY2016(Target)Operating revenues

293.5 billion yen

400.0 billion yen

Operating income

9.9 billion yen

15.0 billion yen

Operating margin

3.4%

3.8%

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 and overseas” and has accordingly created a medium-term business plan that covers the four-year period
commencing with the fiscal year that starts in 2013.

Summary of the Senko Group Medium-term Business Plan (April 2013 to March 2016)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 and trade 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 withexpanding 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 prioritising 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 prioritises earnings”.
(4) Taking on the challenge of “making things”.
(5) Promoting “business partnerships and M&A”.

6

4. Consolidated Financial Statements(1)

Consolidated Balance Sheets(Unit : Millions of Yen)
As of March 31, 2012

As of March 31, 2013

AssetsCurrent assets
Cash and deposits

13,354

15,690Notes and accounts receivable

40,68842,387

Merchandise

4,087

4,399

3

3

Work in process

150

190

Supplies

188

186

Deferred tax assets

2,051

2,030

Other

3,782

4,041

Real estate for sale

Allowance for doubtful accounts
Total current assets

(53)

(66)

64,254

68,863

Noncurrent assets
Property, plant and equipment
Buildings and structures

95,267

95,602

Accumulated depreciation(49,460)(51,484)

Buildings and structures (net)45,806

44,117

Machinery, equipment and vehicles

20,86821,459

Accumulated depreciation(15,054)(15,879)

Machinery, equipment and vehicles (net)

5,814

5,580

4,778

4,894

(3,918)(4,144)

859

749

Land

39,83740,098

Lease assets

6,858

7,735

Accumulated depreciation(3,266)(4,479)Lease assets (net)

3,591

3,256

Construction in progress

229

1,803

96,13995,605

Goodwill

3,730

3,452

Other

3,505

3,477

Total intangible assets

7,235

6,930

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures (net)Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities

4,754

5,550

Long-term loans receivable

4,223

4,027

Guarantee deposits

8,810

9,252

Deferred tax assets

4,000

3,435

Other

13,70914,829

(280)

(399)

Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

7

35,217

36,696

138,592

139,232

202,847

208,095

(Unit : Millions of Yen)
As of March 31, 2012

As of March 31, 2013

Liabilities
Current liabilities
Notes and operating accounts payable- trade32,297

31,377

Current portion of bonds with subscription rights

4,900

―

Short-term loans payable

13,936

14,475

Lease obligations

2,066

2,146

Income taxes payable

2,281

2,540

Provision for bonuses

3,125

3,118

172

181

Provision for directors’ bonuses
Reserve for loss on disaster

43

―

Other

9,260

9,995

Total current liabilities

68,084

63,83512,00012,000―5,000

Long-term loans payable

40,422

41,749Lease obligations

4,075

3,583

Provision for retirement benefits

9,468

9,269

Provision for directors’ retirement benefits

66

65

Provision for special repairs

52

61

Asset retirement obligations

316

324

5,087

4,878

Noncurrent liabilities
Bonds payable
Convertible bond-type bonds with subscription rights

Other
Total noncurrent liabilities

71,48976,931

139,573

140,767

Capital stock

20,521

20,521

Capital surplus

18,782

18,782

Total liabilities
Net assets
Shareholders’ equity

Retained earnings

22,901

26,468Treasury stock(1,049)(1,353)

Total shareholders’ equity

61,15564,418Valuation differences on available-for-sale securities

157

673

Deferred gains or losses on hedges

156

(4)

Foreign currency translation adjustment

(44)

52

Total accumulated other comprehensive income

269

720

Accumulated other comprehensive income

Subscription rights to shares

149

195

Minority interests

1,700

1,992

Total net assets

63,274

67,327

202,847

208,095

Liabilities and net assets

8

(2)

Consolidated Statements of (Comprehensive) Income(Consolidated Statements of Income)(Unit : Millions of Yen)
Fiscal year ended
March 31, 2012

Fiscal year ended
March 31, 2013

(April 1, 2011 – March 31, 2012)(April 1, 2012 – March 31, 2013)

Operating revenues

270,361

293,534

Cost of sales

245,426

263,898

Gross profit

24,93529,635

Selling, general and administrative expenses

16,661

19,727

Operating income

8,274

9,908

Interest income

181

162

Dividends income

912

965

Other

788

591

1,882

1,720

1,200

1,155

622

373

Non-operating income

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

1,823

1,529

8,333

10,100Gain on sales of noncurrent assets

174―

Total extraordinary income

174

―

190

201

Ordinary income
Extraordinary income

Extraordinary loss
Loss on retirement of noncurrent assets
Provision of allowance for doubtful accounts for subsidiaries andaffiliates
Loss on revaluation of investment securities

―

106

―

77

Special retirement expenses

179

53

Loss on cancellation of lease contracts

50

43

Loss on sales of noncurrent assets

302―

Total extraordinary loss

723

481

Income before income taxes

7,783

9,618

Income taxes- current

2,705

3,932

Income taxes- deferred

1,525

397

Total income taxes

4,230

4,329

Income before minority interests

3,553

5,288

74

85

3,478

5,202

Minority interest
Net income9(Consolidated Statements of Comprehensive Income)(Unit : Millions of Yen)
Fiscal year ended
March 31, 2012

Fiscal year ended
March 31, 2013

(April 1, 2011 – March 31, 2012)

Income before minority interests(April 1, 2012 – March 31, 2013)

3,553

5,288

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

180

563

Deferred gains or losses on hedges

181

(166)

Foreign currency translation adjustment

(16)

153

Share of other comprehensive income of associates accounted forusing equity method

(1)

(0)

Total other comprehensive income
Comprehensive income

343

549

3,897

5,838

3,786

5,654

110

184

Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

10

(3)

Consolidated Statements of Changes in Net Assets(Unit : Millions of Yen)
Fiscal year ended
March 31, 2012

Fiscal year ended
March 31, 2013

(April 1, 2011 – March 31, 2012)(April 1, 2012 – March 31, 2013)

Shareholders’ equity
Capital stock
Balance at the beginning of current period

20,521

20,521――

20,521

20,521

18,782

18,782

Disposal of treasury stock―(0)

Total changes of items during the period―(0)18,782

18,78220,80622,901Dividends from surplus(1,383)(1,635)

Net income

3,478

5,202

Total changes of items during the period

2,094

3,567

22,901

26,468(1,046)(1,049)Purchases of treasury stock

(2)

(310)

Disposal of treasury stock―

6

Total changes of items during the period

(2)

(303)

(1,049)(1,353)59,06361,155

Dividends from surplus(1,383)(1,635)

Net income

3,478

5,202

(2)

(310)

Changes of items during the period
Total changes of items during the period
Balance at fiscal year end
Capital surplus
Balance at the beginning of current period
Changes of items during the period

Balance at fiscal year end
Retained earnings
Balance at the beginning of current period
Changes of items during the period

Balance at fiscal year end
Treasury stock
Balance at the beginning of current period
Changes of items during the period

Balance at fiscal year end
Total shareholders’ equity
Balance at the beginning of current period
Changes of items during the period

Purchases of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at fiscal year end

11

―

6

2,092

3,263

61,15564,418

(Unit : Millions of Yen)
Fiscal year ended
March 31, 2012

Fiscal year ended
March 31, 2013

(April 1, 2011 – March 31, 2012)(April 1, 2012 – March 31, 2013)

Accumulated other comprehensive income
Valuation differences on available-for-securities
Balance at the beginning of current period

2157

Net changes of items other than shareholders’ equity

154

516

Total changes of items during the period

154

516

157

673

(9)

156

Net changes of items other than shareholders’ equity

166

(161)

Total changes of items during the period

166

(161)

156

(4)

(31)

(44)

Net changes of items other than shareholders’ equity

(13)

96

Total changes of items during the period

(13)

96

(44)

52

(38)

269

Net changes of items other than shareholders’ equity

307

451

Total changes of items during the period

307

451

269

720

107

149

Net changes of items other than shareholders’ equity

41

46

Total changes of items during the period

41

46

149

195

1,472

1,700

Net changes of items other than shareholders’ equity

228

291

Total changes of items during the period

228

291

1,700

1,992

Changes of items during the period

Balance at fiscal year end
Deferred gains or losses on hedges
Balance at the beginning of current period
Changes of items during the period

Balance at fiscal year end
Foreign currency translation adjustment
Balance at the beginning of current period
Changes of items during the period

Balance at fiscal year end
Total accumulated other comprehensive income
Balance at the beginning of current period
Changes of items during the period

Balance at fiscal year end
Subscription rights to shares
Balance at the beginning of current period
Changes of items during the period

Balance at fiscal year end
Minority interests
Balance at the beginning of current period
Changes of items during the period

Balance at fiscal year end

12

(Unit : Millions of Yen)
Fiscal year ended
March 31, 2012

Fiscal year ended
March 31, 2013

(April 1, 2011 – March 31, 2012)(April 1, 2012 – March 31, 2013)

Total net assets
Balance at the beginning of current period

60,604

63,274

Dividends from surplus(1,383)(1,635)

Net income

3,478

5,202

(2)

(310)

Changes of items during the period

Purchases of treasury stock
Disposal of treasury stock―6

Net changes of items other than shareholders’ equity

577

790

2,669

4,053

63,274

67,327

Total changes of items during the period
Balance at fiscal year end

13

(4)

Consolidated Statements of Cash Flows(Unit : Millions of Yen)
Fiscal year ended
March 31, 2012

Fiscal year ended
March 31, 2013

(April 1, 2011 – March 31, 2012)(April 1, 2012 – March 31, 2013)

Cash flows from operating activities
Income before income taxes

7,783

9,618

Depreciation and amortization

6,159

6,737

Loss (gain) on revaluation of investment securities―

77

Loss (gain) on sales of noncurrent assets

302

(26)

Loss on retirement of noncurrent assets

190

201

Increase (decrease) in provision for retirement benefits

(470)

(199)

Increase (decrease) in provision for bonuses

193

(7)

Increase (decrease) in provision for loss on disaster

(793)

(43)

Interest and dividends income(1,094)(1,128)Interest expenses

1,200

1,155

Decrease (increase) in notes and accounts receivable- trade(4,483)(1,559)Decrease (increase) in inventories

(802)

(337)

Increase (decrease) in notes and accounts payable- trade

3,968

525

Other

487

729

12,643

15,742

253

215

Interest expenses paid

(1,186)(1,147)

Income taxes paid

(2,368)(3,772)

Net cash provided by (used in) operating activities

9,341

11,037(11,949)(6,014)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

1,362

191

Purchase of investment securities(1,396)

(41)

53

110

(4,599)

―

―

23

(11)

(76)

―

25

Payments for investments in capital of subsidiaries and affiliates

(10)

(177)

Payments of long-term loans receivable

(118)

(297)

Other

203

19

(16,466)(6,236)

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

Net cash provided by (used in) investing activities

14

(Unit : Millions of Yen)
Fiscal year ended
March 31, 2012

Fiscal year ended
March 31, 2013

(April 1, 2011 – March 31, 2012)(April 1, 2012 – March 31, 2013)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable152(2,626)

Proceeds from long-term loans payable

12,650

8,869

Repayment of long-term loans payable(8,202)(4,378)

Repayments of finance lease obligations(1,911)(2,282)

Proceeds from issuance of bonds

5,000

―

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

Proceeds from issuance of subscription rights to shares

―

5,000

Purchase of treasury stock

(2)

(310)

Proceeds from sales of treasury stock―0(1,383)(1,634)

Other

(207)

(289)

Net cash provided by (used in) financing activities

6,094(2,551)(9)

54

Net increase (decrease) in cash and cash equivalents(1,040)2,303

Cash and cash equivalents at beginning of year

14,394

13,354―32

13,354

15,690Cash dividends paid

Effect of exchange rate change on cash and cash equivalents

Increase (decrease) in cash and cash equivalents resulting fromchange of scope of consolidation
Cash and cash equivalents at end of year15