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 Second Quarter of the Fiscal Year Ending March 31, 2020
[Japan GAAP]

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

November 8, 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 Issue of Quarterly Financial Report:
Quarterly Supplemental Information Materials:
Scheduled Date of Quarterly Information Meeting:

November 14, 2019

Scheduled Date of Dividend Paid: December 3, 2019

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

1. Consolidated Operating Results for the Six Months Ended September 30, 2019(1) Consolidated Operating Results (Cumulative)
Operating revenue
Six months ended September 30, 2019
Six months ended September 30, 2018

Million yen282,070
260,339%
8.3
7.4(Percentage figures represent year-on-year changes)
Profit attributable toOperating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
10,343
13.6
10,155
8.4
6,431
14.5
9,108
14.0
9,368
16.7
5,616
29.1

(Note) Comprehensive income
Six months ended September 30, 2019: ¥6,406 million (6.2%)

Six months ended September 30, 2018: ¥6,033 million (–3.7%)

Profitper share

Diluted profit
per share
Yen
42.34
36.96

Yen
39.27
34.28

Total assets
Million yen
348,111340,491

Net assets
Million yen
131,101
126,895

Six months ended September 30, 2019
Six months ended September 30, 2018
(2) Consolidated Financial Position

As of September 30, 2019
As of March 31, 2019
(Reference) Equity:

As of September 30, 2019: ¥123,157 million

Equity ratio%
35.4
35.0

Net assets per shareYen
810.44785.08

As of March 31, 2019: ¥119,204 million

2. Dividends
June 30

September 30
Yen
13.00
13.00

Yen
Fiscal year ended March 31, 2019–
Fiscal year ending March 31, 2020–
Fiscal year ending March 31, 2020
(Forecast)(Note) Change in the estimation of dividend for the fiscal year in this period: None

Annual dividend
December 31
Yen––March 31

Total

Yen
13.00

Yen
26.00

13.00

26.00

3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2020 (From April 1, 2019 to March 31, 2020)
Operating revenue
Million yen%
Fiscal year ending March 31, 2020
560,0005.7(Note) Change in the forecast made in this period: None

Operating profit
Million yen
20,900%6.5(Percentage figures represent year-on-year changes)
Profit attributable toProfit
Ordinary profitowners of parentper shareMillion yen% Million yen%
Yen
21,0005.7
12,2004.4
80.35

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: Yes(d) Retrospective restatement: None
(4) Shares outstanding (Common shares)(a) Shares outstanding (including treasury shares)
As of September 30, 2019:

152,861,921 shares

As of March 31, 2019:

152,861,921 shares

898,205 shares

As of March 31, 2019:

1,024,460 shares(b) Treasury shares
As of September 30, 2019:(c) Average number of shares (Cumulative)
Six months ended September 30, 2019: 151,909,767 shares

Six months ended September 30, 2018:

151,958,664 shares(Note) Starting with the third quarter of the fiscal year ended March 31, 2018, the number of treasury shares at term-end includes Senkoshares owned by the trust accounts of Performance-linked Stock Compensation Plan for Employees (as of September 30, 2019:349,257 shares; as of March 31, 2019: 351,500 shares) and Performance-linked Stock Compensation Plan for Directors (as ofSeptember 30, 2019: 352,988 shares; as of March 31, 2019: 353,000 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, 2020” on page 3.
 The supplementary material on quarterly earnings will be available on the Company’s website.

Index to accompanying materials1. 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, 2020................................................................................................... 3
2. Consolidated Financial Statements ........................................................................................................................................................... 4(1) Consolidated balance sheets .............................................................................................................................................................. 4(2) Consolidated statements of (comprehensive) income ....................................................................................................................... 6Consolidated statements of income
For the six months ended September 30, 2018 and 2019 ............................................................................................................. 6
Consolidated statements of comprehensive income
For the six months ended September 30, 2018 and 2019 ............................................................................................................. 7(3) Consolidated statements of cash flows .............................................................................................................................................. 81

1.

Results of Operations and Financial Condition(1) Results of operations
In the six-month period of the fiscal year ending March 31, 2020 (April 1, 2019 to September 30, 2019), the employment and income
environment in the Japanese economy continued to improve, but the outlook remains unclear due to factors such as the development ofa slowdown in overseas economies as a result of trade friction between the United States and China.
The six-month-period performance was as follows.
(Unit: Millions of Yen)

Operating revenueOperating profit
Ordinary profit
Profit attributable to owners ofparent

Six months ended
September 30, 2018260,339

Six months ended
September 30, 2019
282,070

9,108
9,368
5,616

Change%21,7308.3

10,343
10,155

1,235
787

13.6
8.4

6,431

814

14.5

Consolidated operating revenue for the six-month period ended September 30, 2019 of the current fiscal year increased ¥21,730 million
year on year to ¥282,070 million. This result mainly reflected effects of expanding sales and revising the freight charges, opening
logistics centers, and making overseas Group companies and operating companies of living support services into consolidated
subsidiaries.
On the profit front, despite factors that include higher costs largely stemming from rises in outsourcing costs, consolidated operating
profit increased ¥1,235 million year on year to ¥10,343 million and consolidated ordinary profit increased ¥787 million year on year to¥10,155 million. This upturn in profits was largely attributable to the effects of the higher revenue mentioned previously and our efforts toimprove productivity. Profit attributable to owners of parent increased to ¥6,431 million, up ¥814 million year on year.
The six-month-period operating revenue by segment was as follows.
Logistics(Unit: Millions of Yen)

Operating revenue
Segment income

Six months ended
September 30, 2018
184,044Six months ended
September 30, 2019
196,199

7,403

8,808

Change%12,155

6.6

1,405

19.0

Operating revenue increased ¥12,155 million year on year to ¥196,199 million and segment income rose ¥1,405 million year on year to¥8,808 million. This was mainly attributable to the effects of opening logistic centers in the previous fiscal year, opening Inzai Logistics
Center, whose operations were commenced by SENKO Co., Ltd. in May of this fiscal year, and opening Kansai Branch Center, whoseoperations were commenced by Runtech Corporation in July, as well as the effect of expanding sales and revising the freight charges,
and making seven overseas Group companies into consolidated subsidiaries.
Trading & commerce(Unit: Millions of Yen)

Operating revenue
Segment income

Six months ended
September 30, 201870,427Six months ended
September 30, 2019
77,903

1,136

995

Change%7,476

10.6(141)(12.4)

Operating revenue increased ¥7,476 million year on year to ¥77,903 million and segment income fell ¥141 million year on year to ¥995
million. Although sales of household paper products for large-scale mass-merchandiser groups and sales of chemical products andapparel in the international trade business grew, there were higher costs largely stemming from rises in outsourcing costs.
Others(Unit: Millions of Yen)

Operating revenue
Segment income

Six months ended
September 30, 2018
5,868

Six months ended
September 30, 2019
7,967775

906

Change%2,09935.8

130

16.9

Operating revenue increased ¥2,099 million year on year to ¥7,967 million and segment income increased ¥130 million year on year to¥906 million. This was mainly attributable to making Ueno Shoji Co., Ltd. (trade name changed to Life-eat Co., Ltd. on October 1, 2019),
which manages the food and drink business, into a consolidated subsidiary, and opening new nursing care and fitness locations.

2(2) Financial condition
1) Assets, liabilities and net assets
Total assets
Total assets as of September 30, 2019 were ¥348,111 million, ¥7,620 million higher than at the end of the previous fiscal year.
Current assets amounted to ¥121,080 million, up ¥3,817 million from the end of the previous fiscal year. This mainly reflected increasesof ¥1,959 million in cash and deposits, ¥466 million in electronically recorded monetary claims - operating and ¥679 million inmerchandise and finished goods.
Non-current assets totaled ¥227,012 million, up ¥3,816 million from the end of the previous fiscal year. This was primarily due toincreases of ¥4,729 million in property, plant and equipment and ¥1,304 million in intangible assets, despite a decrease of ¥2,217 million
in investments and other assets.
Liabilities
Liabilities as of September 30, 2019 increased ¥3,414 million from the end of the previous fiscal year to ¥217,010 million.
Current liabilities totaled ¥104,319 million, up ¥5,649 million from the end of the previous fiscal year. This was mainly due to increases of¥2,469 million in trade notes and accounts payable and ¥5,388 million in short-term borrowings, despite a decrease of ¥852 million inincome taxes payable.
Non-current liabilities totaled ¥112,691 million, down ¥2,235 million from the end of the previous fiscal year. This was primarily due to adecrease of ¥4,661 million in long-term borrowings, despite an increase of ¥2,105 million in long-term lease obligations.
Net assets
Net assets as of September 30, 2019 rose ¥4,206 million from the end of the previous fiscal year to ¥131,101 million. This was mainly
attributable to an increase of ¥4,265 million in retained earnings. The equity ratio as of September 30, 2019 increased by 0.4 percentage
points to 35.4% from the end of the previous fiscal year.
2) Cash flows
Cash and cash equivalents as of September 30, 2019 increased by ¥1,980 million from the end of the previous fiscal year to ¥24,782
million.
Net cash provided by operating activities amounted to ¥15,039 million. This was mainly due to profit before income taxes of ¥10,181
million, depreciation of ¥7,594 million, an increase in cash due to an increase in provision for bonuses of ¥709 million, an increase in
cash due to a decrease in trade receivables of ¥766 million, despite a decrease in cash due to an increase in inventories of ¥998 million
and income taxes paid of ¥4,285 million.
Net cash used in investing activities totaled ¥9,590 million. This was mainly due to purchase of property, plant and equipment of ¥8,044
million and payments of guarantee deposits of ¥1,647 million.
Net cash used in financing activities totaled ¥3,810 million. This was mainly due to repayments of long-term borrowings of ¥5,701 million,repayments of finance lease obligations of ¥1,944 million and dividends paid of ¥1,971 million, despite net increase in short-termborrowings of ¥1,509 million and proceeds from long-term borrowings of ¥4,458 million.
(3) Forecast for the full-term of the fiscal year ending March 31, 2020
No revisions have been made to the forecast of consolidated operating results for the fiscal year ending March 31, 2020, announced in“Summary of Financial Statements for the Fiscal Year Ended March 31, 2019” on May 10, 2019.

3

2.

Consolidated Financial Statements(1) Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2019

As of September 30, 2019

AssetsCurrent assets
Cash and deposits

25,232

27,192

Trade notes and accounts receivable

71,311

71,091

Electronically recorded monetary claims - operating

1,785

2,252

Merchandise and finished goods

8,513

9,193

Work in process

670

897

Raw materials and supplies

583

654

9,181

9,835

(14)

(35)

117,263

121,080

Buildings and structures, net

64,64566,336

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

59,66960,279Other, net37,899

40,328

Total property, plant and equipment

162,214

166,944

Intangible assets
Goodwill

7,446

8,078

Other

4,576

5,249

Total intangible assets

12,022

13,327

Investments and other assets
Investment securities

20,26018,260Long-term loans receivable

3,888

2,991

Retirement benefit asset

3,088

3,388

Guarantee deposits

13,271

13,786

Deferred tax assets

5,138

5,104

Other

4,019

3,996

Allowance for doubtful accounts

(709)

(788)

Total investments and other assets

48,95846,740223,195

227,012Business commencement expenses

3219

Total deferred assets

32

19

340,491

348,111

Total non-current assets
Deferred assets

Total assets

4

(Unit: Millions of Yen)
As of March 31, 2019

As of September 30, 2019

Liabilities
Current liabilities
Trade notes and accounts payable

37,60340,072

Electronically recorded obligations - operating

7,047

7,146

48

48

Short-term borrowings

21,58026,968

Lease obligations

3,181

3,458

Income taxes payable

4,242

3,389

Provision for bonuses

5,253

5,965

347

181

Current portion of bonds

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

103

–

Other

19,261

17,089Total current liabilities

98,669104,319

Non-current liabilities
Bonds payable

17,12017,096

Convertible bond-type bonds with share acquisitionrights

10,02910,024Long-term borrowings

64,69660,035

Lease obligations

10,50012,605

Provision for retirement benefits for directors (andother officers)

180

186

Provision for special repairs

80

94

Provision for share-based remuneration

124

157

Retirement benefit liability

6,970

6,666

Asset retirement obligations

1,011

1,167

Other

4,212

4,655

114,926

112,691213,595

217,010

Share capital

26,52826,528

Capital surplus

29,841

29,724Retained earnings

62,98367,249Treasury shares

(697)

(652)

118,656

122,850

1,350

1,016

Deferred gains or losses on hedges

(3)

(24)

Foreign currency translation adjustment

122

130

Remeasurements of defined benefit plans

(920)

(814)

Total accumulated other comprehensive income

548

307

Share acquisition rights

424

432

Non-controlling interests

7,265

7,511

126,895

131,101

340,491

348,111

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equityTotal shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total net assets
Total liabilities and net assets5(2) Consolidated statements of (comprehensive) income(Consolidated statements of income)(For the six months ended September 30, 2018 and 2019)(Unit: Millions of Yen)
Six months ended
September 30, 2018

Six months ended
September 30, 2019

(April 1, 2018–September 30, 2018)(April 1, 2019–September 30, 2019)

Operating revenue

260,339

282,070

Operating cost

232,038

248,942

Operating gross profit

28,301

33,128Selling, general and administrative expenses

19,192

22,784

Operating profit

9,108

10,34357

52

Non-operating income
Interest income
Dividend income

9389

Other

1,041

843

Total non-operating income

1,192

985

Interest expenses

561

551

Other

371

621

Total non-operating expenses

932

1,173

9,368

10,155–144

Non-operating expenses

Ordinary profit
Extraordinary income
Insurance claim income
Gain on extinguishment of tie-in shares

–

51

365

32

1,156–

40–

1,563

228

Provision of allowance for doubtful accounts for
subsidiaries and associates–77Loss on retirement of non-current assets

87

69

Litigation settlement–

55

1,144–

Provision for loss on disaster

267–

Loss on liquidation of subsidiaries

168–

Loss on office withdrawal

96–

Total extraordinary losses

1,765

202

Profit before income taxes

9,166

10,181

Income taxes - current

3,381

3,376

Income taxes - deferred

(21)

134

Total income taxes

3,359

3,511

Profit

5,806

6,670

189

239

5,616

6,431

Gain on sales of non-current assets
Subsidy income
Reversal of allowance for doubtful accounts for
subsidiaries and associatesTotal extraordinary income
Extraordinary losses

Loss on tax purpose reduction entry of non-current
assetsProfit attributable to non-controlling interests
Profit attributable to owners of parent6

(Consolidated statements of comprehensive income)(For the six months ended September 30, 2018 and 2019)(Unit: Millions of Yen)
Six months ended
September 30, 2018

Six months ended
September 30, 2019

(April 1, 2018–September 30, 2018)(April 1, 2019–September 30, 2019)

Profit

5,806

6,670

Valuation difference on available-for-sale securities

268(344)

Deferred gains or losses on hedges

82(21)

Foreign currency translation adjustment

(313)

(3)

Remeasurements of defined benefit plans, net of tax

190

105

Total other comprehensive income

227(263)

6,033

6,406

5,938

6,134

95

272

Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests7(3) Consolidated statements of cash flows(Unit: Millions of Yen)
Six months ended
September 30, 2018

Six months ended
September 30, 2019

(April 1, 2018–September 30, 2018)(April 1, 2019–September 30, 2019)

Cash flows from operating activities
Profit before income taxes

9,166

10,181

Depreciation

7,003

7,594

Amortization of goodwill

240

364

Increase (decrease) in allowance for doubtful
accounts(26)

97

Decrease (increase) in retirement benefit asset

(29)

(67)

Increase (decrease) in retirement benefit liability

(229)

(363)

Increase (decrease) in provision for bonuses

676

709

Increase (decrease) in provision for loss on disaster

267

(103)

Interest and dividend income

(150)

(141)

Foreign exchange losses (gains)

169

409

Interest expenses

561

551

(1,156)–

Insurance claim income

–

(144)

Litigation settlement–55

Subsidy income

–

(51)

168

–

Loss on tax purpose reduction entry of non-currentassets

1,144

–

Loss (gain) on sales of non-current assets

(349)

(30)

Loss on retirement of non-current assets

87

69

Decrease (increase) in trade receivables

(993)

766

Loss (gain) on extinguishment of tie-in shares
Loss on liquidation of subsidiaries

Decrease (increase) in inventories

(547)

(998)

Increase (decrease) in trade payables(1,530)588

Increase (decrease) in accrued consumption taxes(1,223)37

Decrease (increase) in consumption taxes refund
receivable

1,815

376

Other(989)(86)

Subtotal

14,074

19,815Interest and dividends received

139

46

Interest paid

(558)

(552)

(4,631)(4,285)

310

14

9,335

15,039Payments into time deposits(3,042)(2,033)

Proceeds from withdrawal of time deposits

1,007

2,148

Purchase of securities(2,080)–Purchase of property, plant and equipment(16,293)(8,044)

Proceeds from sales of property, plant andequipment9,244

408

Purchase of shares of subsidiaries and associates(1,146)–(899)(1,647)77(422)(13,133)(9,590)

Income taxes paid
Other
Net cash provided by (used in) operating activities
Cash flows from investing activities

Payments of guarantee deposits
Other
Net cash provided by (used in) investing activities

8Six months ended
September 30, 2018

Six months ended
September 30, 2019

(April 1, 2018–September 30, 2018)(April 1, 2019–September 30, 2019)

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

5,316

1,509

Proceeds from long-term borrowings

2,311

4,458

Repayments of long-term borrowings(3,359)(5,701)

Repayments of finance lease obligations(1,979)(1,944)

Proceeds from share issuance to non-controllingshareholders

2,305

–

Dividends paid

(1,697)(1,971)Dividends paid to non-controlling interests

(72)

(162)

Payments from changes in ownership interests in
subsidiaries that do not result in change in scope ofconsolidation(169)–Other(168)1

Net cash provided by (used in) financing activities

2,486(3,810)

(73)

(40)

Net increase (decrease) in cash and cash equivalents(1,384)

1,598

Cash and cash equivalents at beginning of period

23,79522,801

Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation

1,093

315

Increase in cash and cash equivalents resulting frommerger with unconsolidated subsidiaries–66

23,50424,782

Effect of exchange rate change on cash and cash
equivalents

Cash and cash equivalents at end of period9