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 Third Quarter of the Fiscal Year Ending March 31, 2021
[Japan GAAP]

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

February 8, 2021
SENKO Group Holdings Co., Ltd.
Stock Listed on: The First Section of the Tokyo Stock Exchange
9069
URL https://www.senkogrouphd.co.jp/en/
Title: President and Representative Director
Name: Yasuhisa Fukuda
Title: Executive Officer, Responsible for PR & IR
Name: Satoru Kokubo
Tel. (03) 6862-8842

Scheduled Date of Issue of Quarterly Financial Report: February 12, 2021
Yes
Quarterly Supplemental Information Materials:
None
Quarterly Information Meeting:

Scheduled Date of Dividend Paid: –(Amounts less than ¥1 million have been rounded down)
1. Consolidated Operating Results for the Nine Months Ended December 31, 2020
(1) Consolidated Operating Results (Cumulative)
Operating revenue
Nine months ended December 31, 2020
Nine months ended December 31, 2019

Million yen424,603
427,741%(0.7)
6.8(Percentage figures represent year-on-year changes)
Profit attributable toOperating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
17,4001.3
17,663
2.5
11,605
6.7
17,177
8.8
17,233
7.3
10,87913.9(Note) Comprehensive income
Nine months ended December 31, 2020: ¥12,126 million (6.3%)

Nine months ended December 31, 2019: ¥11,412 million (20.0%)

Profitper share

Diluted profit
per share
Yen
76.32
71.61

Yen
70.84
66.42

Total assets
Million yen
408,562356,308

Net assets
Million yen
143,234134,181

Nine months ended December 31, 2020
Nine months ended December 31, 2019(2) Consolidated Financial Position

As of December 31, 2020
As of March 31, 2020
(Reference) Equity:
As of December 31, 2020: ¥133,357 million

Equity ratio
%
32.6
35.1

Net assets per shareYen
876.61
823.61

As of March 31, 2020: ¥125,158 million

2. Dividends
June 30

September 30
Yen
13.00
13.00

Yen
Fiscal year ended March 31, 2020–
Fiscal year ending March 31, 2021–
Fiscal year ending March 31, 2021
(Forecast)(Note) Change in the estimation of dividend for the fiscal year in this period: None

Annual dividend
December 31
Yen––March 31

TotalYen
13.00

Yen
26.00

13.00

26.00

3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2021 (From April 1, 2020 to March 31, 2021)
Operating revenue

Operating profit

Million yen
578,000

Million yen
21,000Fiscal year ending March 31, 2021(Note) Change in the forecast made in this period: Yes%
1.4%
1.7

(Percentage figures represent year-on-year changes)
Profit attributable toProfit
Ordinary profit
owners of parent
per shareMillion yen% Million yen%Yen
21,3002.7
13,0007.6
85.49

Notes(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries associated with change in scope ofconsolidation): None
(2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements: None
(3) Changes in accounting principles and estimates, and retrospective restatement(a) Changes due to revision of accounting standards: None(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 December 31, 2020:

152,952,221 shares

As of March 31, 2020:

152,861,921 shares

823,099 shares

As of March 31, 2020:

898,113 shares(b) Treasury shares
As of December 31, 2020:(c) Average number of shares (Cumulative)
Nine months ended December 31, 2020: 152,064,112 shares

Nine months ended December 31, 2019:

151,927,827 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 December 31, 2020:341,740 shares; as of March 31, 2020: 348,880 shares) and Performance-linked Stock Compensation Plan for Directors (as ofDecember 31, 2020: 348,873 shares; as of March 31, 2020: 352,988 shares).
Quarterly financial results reports are exempt from quarterly reviews conducted by certified public accountants or an audit corporation.
Cautionary statement regarding forecasts of operating results and special notes Forward-looking statements in these materials are based on information available to management at the time this report was prepared andassumptions that management believes are reasonable. Actual results may differ significantly from these statements for a number ofreasons. For information about the assumptions used for forecasts and precautions concerning the use of forecasts, please see “Forecastfor the full-term of the fiscal year ending March 31, 2021” on page 3.
 The supplementary material on quarterly earnings will be available on the Company’s website.

Index to accompanying materials

1. Results of Operations and Financial Condition ........................................................................................................................................... 2(1) Results of operations........................................................................................................................................................................... 2(2) Financial condition ............................................................................................................................................................................... 3(3) Forecast for the full-term of the fiscal year ending March 31, 2021................................................................................................... 3
2. Consolidated Financial Statements ............................................................................................................................................................. 4(1) Consolidated balance sheets .............................................................................................................................................................. 4(2) Consolidated statements of (comprehensive) income ....................................................................................................................... 6
Consolidated statements of income
For the nine months ended December 31, 2019 and 2020 ............................................................................................................ 6Consolidated statements of comprehensive income
For the nine months ended December 31, 2019 and 2020 ............................................................................................................ 711.

Results of Operations and Financial Condition(1) Results of operations
In the nine-month period of the fiscal year ending March 31, 2021 (April 1, 2020 to December 31, 2020), the economic environment has
maintained an uncertain outlook with a resurgence in the spread of the novel coronavirus disease (COVID-19) despite the gradualresumption of economic activity following the lifting of the first state of emergency.
The nine-month-period performance was as follows.
(Unit: Millions of Yen)

Operating revenue
Operating profit
Ordinary profit
Profit attributable to owners ofparent

Nine months ended
December 31, 2019427,741

Nine months ended
December 31, 2020
424,603

17,177
17,233
10,879Change%(3,137)(0.7)

17,40017,663

222
430

1.3
2.5

11,605725

6.7

Consolidated operating revenue for the nine-month period ended December 31, 2020 of the current fiscal year decreased ¥3,137 million
year on year to ¥424,603 million, with the Logistics business being significantly affected by COVID-19 pandemic. In terms of profits, as aresult of group-wide efforts to expand sales, reduce expenses, improve cost efficiency and increase productivity, consolidated operating
profit, consolidated ordinary profit and profit attributable to owners of parent all increased year on year.
The nine-month-period operating revenue by segment was as follows.
Logistics(Unit: Millions of Yen)

Operating revenue
Segment income

Nine months ended
December 31, 2019297,850

Nine months ended
December 31, 2020
290,084

14,867

15,702

Change%(7,765)

(2.6)

834

5.6

Although there was an increase in cargo volume for discount stores, drugstores and other chain stores, the COVID-19 pandemic caused
a significant decrease in the volume for housing-related industry, chemical-related industry, and frozen and refrigerated cargo for school
lunch and restaurant industry, and as a result, operating revenue decreased ¥7,765 million year on year to ¥290,084 million. In terms ofprofits, as a result of efforts to expand sales, reduce expenses, improve cost efficiency and increase productivity, segment income
increased ¥834 million year on year to ¥15,702 million.
Trading & commerce(Unit: Millions of Yen)

Operating revenue

Nine months ended
December 31, 2019117,974

Nine months ended
December 31, 2020
121,180

1,583

2,412

Segment income

Change%
3,206

2.7

829

52.4

Operating revenue increased ¥3,206 million year on year to ¥121,180 million and segment income increased ¥829 million year on yearto ¥2,412 million due to increased sales of household paper and adjustment to its sales price, and increased sales of daily necessities
associated with increased demand for home deliveries.
Others(Unit: Millions of Yen)

Operating revenue
Segment income (loss)

Nine months ended
December 31, 2019
11,916Nine months ended
December 31, 2020
13,337

1,247(209)Change%1,420

11.9(1,457)–Operating revenue increased to ¥13,337 million, up ¥1,420 million year on year primarily due to making Procare Co., Ltd. into a
consolidated subsidiary. On the other hand, due to the spread of COVID-19, the number of customers decreased significantly at hotels,
fitness gyms, day-service nursing care facilities, restaurants, etc., and segment income fell ¥1,457 million year on year to record asegment loss of ¥209 million.

2(2) Financial condition
Assets, liabilities and net assets
Total assets
Total assets as of December 31, 2020 were ¥408,562 million, ¥52,253 million higher than at the end of the previous fiscal year.
Current assets amounted to ¥151,822 million, up ¥27,611 million from the end of the previous fiscal year. This was mainly due toincreases of ¥9,205 million in cash and deposits, ¥10,782 million in trade notes and accounts receivable, ¥4,520 million in merchandiseand finished goods and ¥2,896 million in other current assets.
Non-current assets totaled ¥256,137 million, up ¥24,752 million from the end of the previous fiscal year. This was primarily due toincreases of ¥27,620 million in property, plant and equipment and ¥3,848 million in intangible assets, despite a decrease of ¥6,716
million in investments and other assets.
Liabilities
Liabilities as of December 31, 2020 increased ¥43,200 million from the end of the previous fiscal year to ¥265,328 million.
Current liabilities totaled ¥122,577 million, up ¥10,939 million from the end of the previous fiscal year. This was mainly due to increasesof ¥5,140 million in trade notes and accounts payable, ¥1,911 million in electronically recorded obligations - operating and ¥7,000 million
in current portion of bonds payable, despite a decrease of ¥3,006 million in short-term borrowings.
Non-current liabilities totaled ¥142,750 million, up ¥32,261 million from the end of the previous fiscal year. This was mainly attributable toincreases of ¥12,952 million in bonds payable, ¥16,134 million in long-term borrowings and ¥1,584 million in long-term lease obligations.
Net assets
Net assets as of December 31, 2020 rose ¥9,053 million from the end of the previous fiscal year to ¥143,234 million. This was primarily
due to increases of ¥7,685 million in retained earnings and ¥876 million in non-controlling interests. The equity ratio as of December 31,
2020 decreased by 2.5 percentage points to 32.6% from the end of the previous fiscal year.
(3) Forecast for the full-term of the fiscal year ending March 31, 2021
The forecast of consolidated operating results for the fiscal year ending March 31, 2021, announced in “Summary of Financial
Statements for the First Quarter of the Fiscal Year Ending March 31, 2021” on August 11, 2020 has been revised as follows after
considering recent trends in operating results, the performance outlook and other factors.
Forecast of consolidated operating results for the fiscal year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
Operatingrevenue
Previous Forecast (A)ProfitOperating profit

Ordinary profit

attributable toProfit per shareowners of parent

Million yen
585,000

Million yen
20,200Million yen
20,000Million yen
11,400Yen
74.99

Revised Forecast (B)578,000

21,00021,30013,00085.49

Amount of change (B - A)

(7,000)

800

1,300

1,600(1.2)

4.0

6.5

14.0

570,030

20,656

20,74412,081(announced on August 11, 2020)

Change (%)(Reference) Actual results for thefiscal year ended March 31, 2020

379.51

2.

Consolidated Financial Statements(1) Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2020

As of December 31, 2020

AssetsCurrent assets
Cash and deposits

28,47937,684

Trade notes and accounts receivable

74,36185,144

Electronically recorded monetary claims - operating

2,651

2,403

Merchandise and finished goods

8,368

12,889Work in process

679

1,216

Raw materials and supplies

567

480

9,125

12,021(21)(19)

124,210

151,822

Buildings and structures, net

64,14180,183

Land

61,66973,104

Other, net

45,16645,311

Total property, plant and equipment

170,978

198,598

Goodwill

7,762

10,716

Other

5,391

6,286

Total intangible assets

13,15417,003

Investment securities

17,662

15,779Long-term loans receivable

3,452

269

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

Intangible assetsInvestments and other assets

Retirement benefit asset

2,094

2,530

Guarantee deposits

14,556

14,455

Deferred tax assets

5,996

4,702

Other

4,269

3,167

Allowance for doubtful accounts

(779)

(370)

Total investments and other assets

47,251

40,535

231,384

256,137

Business commencement expenses

713

602

Total deferred assets

713

602

356,308

408,562

Total non-current assets
Deferred assets

Total assets

4

(Unit: Millions of Yen)
As of March 31, 2020

As of December 31, 2020

Liabilities
Current liabilities
Trade notes and accounts payable

40,985

46,126

Electronically recorded obligations - operating

6,559

8,471

48

7,048

Short-term borrowings

29,252

26,245

Lease obligations

3,673

4,175

Income taxes payable

3,745

2,180

Provision for bonuses

5,433

3,765

401

277

Other

21,53724,287

Total current liabilities

111,638

122,577

Bonds payable

17,07230,024

Convertible bond-type bonds with share acquisitionrights10,01910,012Long-term borrowings

55,83971,973

Lease obligations

13,912

15,497

Provision for retirement benefits for directors (andother officers)

201

234

Provision for special repairs

9091

Provision for share-based remuneration

271–

Retirement benefit liability

7,060

7,328

Asset retirement obligations

1,145

1,243

Other

4,876

6,344

110,489

142,750

222,127

265,328

Share capital

26,52826,564

Capital surplus

29,77029,808Retained earnings

70,901

78,587

Treasury shares

(652)

(637)

126,548

134,322

Valuation difference on available-for-sale securities

779

1,402

Deferred gains or losses on hedges

14(11)

Foreign currency translation adjustment

256

(215)

Remeasurements of defined benefit plans(2,439)(2,140)Total accumulated other comprehensive income(1,390)(965)

Share acquisition rights

432

410

Non-controlling interests

8,590

9,466

134,181

143,234

356,308

408,562

Current portion of bonds payable

Provision for bonuses for directors (and otherofficers)

Non-current liabilities

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

Total shareholders’ equity
Accumulated other comprehensive income

Total net assets
Total liabilities and net assets5(2) Consolidated statements of (comprehensive) income(Consolidated statements of income)(For the nine months ended December 31, 2019 and 2020)(Unit: Millions of Yen)
Nine months ended
December 31, 2019

Nine months ended
December 31, 2020

(April 1, 2019–December 31, 2019)(April 1, 2020–December 31, 2020)

Operating revenue

427,741

424,603

Operating costs

376,481371,517

Operating gross profit

51,25953,085

Selling, general and administrative expenses

34,08135,685

Operating profit

17,177

17,4008249

Non-operating income
Interest income
Dividend income

140136

Other1,298

1,695

Total non-operating income

1,521

1,881

Interest expenses

820870

Other644

747

1,465

1,617

17,233

17,663Gain on bargain purchase

–

3,469

Gain on sales of non-current assets

42461

Subsidy income–

198

Gain on sales of investment securities–

35

Insurance claim income

144–

Gain on extinguishment of tie-in shares

51–

Gain on termination of retirement benefit plan46–

Total extraordinary income

284

4,164

121

2,778

Loss on COVID-19 impact–

316

Loss on valuation of investment securities–

277

Loss on tax purpose reduction entry of non-currentassets–

217

Loss on retirement of non-current assets

96

72

Loss on office withdrawal–

60

Loss on sales of non-current assets–53

Loss on liquidation of subsidiaries

111–

Provision of allowance for doubtful accounts for
subsidiaries and associates

79–

Litigation settlement

55–

Loss on valuation of shares of subsidiaries andassociates

49–

Total extraordinary losses

515

3,776

Profit before income taxes

17,002

18,052

Income taxes - current

4,568

5,001

Income taxes - deferred

1,186

1,124

Total income taxes

5,755

6,125

Profit11,247

11,926368

321

10,87911,605Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses
Impairment loss

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

(Consolidated statements of comprehensive income)(For the nine months ended December 31, 2019 and 2020)(Unit: Millions of Yen)
Nine months ended
December 31, 2019

Nine months ended
December 31, 2020

(April 1, 2019–December 31, 2019)(April 1, 2020–December 31, 2020)

Profit11,247

11,926

Valuation difference on available-for-sale securities

52670Deferred gains or losses on hedges

17(28)

Foreign currency translation adjustment

(79)

(740)

Remeasurements of defined benefit plans, net of tax

174

298

Total other comprehensive income

165

199

11,412

12,126

10,99812,034414

91

Other comprehensive income

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