This document is a translation of the Japanese financial statements and is not in conformity with accounting principles of the United States.

SENKO Co., Ltd.

Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2013
[Japan GAAP]
October 30, 2012
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
Representative :Title : President
Name : Yasuhisa Fukuda
Inquiries :Title : Executive Officer, Public Relations
Name : Noburoh Sasaki
Tel. (06) 6440-5155
Scheduled Date of Issue of Financial Report :November 8, 2012
Scheduled Date of Dividend Paid : December 4, 2012
Supplemental Information Materials :Yes

Scheduled Date of Quarterly Information Meeting :Yes (for institutional investors)

1. Consolidated Operating Results for the Second Quarter Ending March 2013 (From April 1, 2012 to September 30, 2012)(1) Consolidated Operating Results
Note : Amounts less than one million yen have been rounded down.
Operating revenues

Operating income

Ordinary income

Million yen
144,412
126,837

Million yen
4,658
3,801

Million yen
4,711
3,655

Second quarter ending March 31, 2013
Second quarter ended March 31, 2012
(Note) Comprehensive income :Second quarter ending March 31, 2013
Second quarter ended March 31, 2012

%
13.9
7.0

%
22.6
37.7

Net income

%
28.9
29.6

Million yen
2,674
1,645

%
62.5
24.5

2,268 million yen (40.9%)
1,610 million yen (36.7%)
Net income
per share
Yen

Diluted net income per
share
Yen

Second quarter ending March 31, 2013

21.26

19.20

Second quarter ended March 31, 2012

13.08

11.87

(2) Consolidated Financial Position
Total assets

Net assets

Million yen
202,402202,847

Second quarter ending March 31, 2013
Second quarter ended March 31, 2012
(Reference) Shareholders’ equity :Second quarter ending March 31, 2013 62,927 million yen

Net assets per share

Equity ratio

Million yen
64,84863,274

%
31.1
30.3

Second quarter ended March 31, 2012

Yen
500.14488.2561,424 million yen

2. Dividends
First quarter
Yen
Fiscal year ended March 31, 2012－

Second quarter
Yen
6.00

Fiscal year ending March 31, 2013

－

7.00

Annual dividend
Third quarter
Yen

Fiscal year ending March 31, 2013
(Forecast)(Note) Change in the estimation of dividend for the fiscal year in this period : Yes

Year-end

Total

－

Yen
6.00

Yen
12.00

－

6.00

13.00

(Note) Dividends include a ¥1.00 commemorative dividend for the end of second quarter and year-end of fiscal year ended March 31, 2012 .
The dividend forecast announced on April 26, 2012 has been revised. Please see page 3 of the supplementary information Reference
for information about the fundamental policy for earnings allocations and dividends in the current fiscal year.
3. Forecast of Consolidated Operating Results for the Year Ending March 2013 (From April 1, 2012 to March 31, 2013)(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
Fiscal year ending March 2013

295,000

9.1

10,00020.9

10,000

20.0

5,000

43.7

39.74

(Note) Change in the forecast made in this period : Yes
Forecast stated in the results of operations for the fiscal year ending March 2013 announced on April 26, 2012 has been revised.
Please refer Forecast for Fiscal Year Ending March 2013 on page 3.

*Notes(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries associated with change in scope of
consolidation) : None
(2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements : None
(3) Changes in accounting principles and estimates, and retrospective restatement(a) Changes due to revision of accounting standards : Yes(b) Changes other than in (a) : None(c) Changes in accounting estimates : Yes(d) Retrospective restatement : None
(Note) Changes to be stated in the section “Changes in significant matters providing the basis for preparing consolidated financial
statements”. For more information, please see “Changes in accounting principles and estimates, and retrospective restatements.”
on page 4.
(4) Shares outstanding (Common shares)(a) Shares outstanding (including treasury stocks)
As of September 30, 2012
128,989,476 shares(b) Treasury stock
As of September 30, 2012
3,169,086 shares(c) Average number of shares (quarterly consolidated cumulative period)
Period ended September 30, 2012 125,823,604 shares

As of March 31, 2012

128,989,476 shares

As of March 31, 2012

3,183,467 shares

Period ended September 30, 2011

125,813,853 shares*Information concerning quarterly review procedure
This quarterly financial report is not subject to the quarterly review procedure prescribed by the Financial Instruments and Exchange Law.
The review procedure prescribed by the Financial Instruments and Exchange Law for the quarterly consolidated financial statements had
not been completed when this quarterly financial report was released.
*Cautionary statement regarding forecasts of operating results and special notes
Forward-looking statements in these materials are based on information available to management at the time this report was prepared
and assumptions that management believes are reasonable. Actual results may differ significantly from these statements for a number ofreasons. For information about the assumptions used for forecasts and precautions concerning the use of forecasts, please see“Forecast for Fiscal Year Ending March 2013” 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) Forecast for fiscal year ending March 2013

3
4

2．Other Information(1) Changes in significant subsidiaries

4(2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements

4(3) Changes in accounting principles and estimates, and retrospective restatement

43．Consolidated financial statements

5(1) Consolidated balance sheets

5(2) Consolidated statements of (comprehensive) income

7

Consolidated statements of income
For the six months ended September 30, 2011 and 20127

Consolidated statements of comprehensive income
For the six months ended September 30, 2011 and 20128(3) Consolidated statements of cash flows

9

1

1.

Results of Operations and Financial Condition(1)

Results of Operations
In the first half of the fiscal year ending in March 2013 (April 1, 2012 to September 30, 2012), there was a slow recovery inproduction activity, consumer spending and other economic indicators due primarily to public-works expenditures and otherdemand associated with earthquake recovery activities and to the benefits of the eco-car subsidy and other government
programs. However, the condition of the Japanese economy is uncertain because of the effects of slowing economic growth inChina and emerging countries, the yen’s strength, the end of the eco-car subsidy, and other factors.
In the logistics industry, there was a recovery in cargo volume following the downturn after the Great East Japan Earthquake in2011 and an improvement in the volume of cargo handled along with a slow recovery in manufacturing activity and consumer
spending. However, negative signs concerning cargo volume began to emerge late in the second quarter as exports andmanufacturing activity weakened.
The current fiscal year is the final year of the Senko Group’s three-year medium-term business plan that started in April 2010
and uses the corporate slogan “Moving Global.” In this final year of the plan, we are taking many actions in Japan and overseas.
In Japan, the Great East Japan Earthquake has caused companies that ship cargo to spread out their manufacturing andinventory storage operations over more locations and to increase the number of suppliers of raw materials and components. The
Senko Group is making preparations to establish new logistics facilities in Hokkaido, the Kanto region, the Chubu region, theKansai region and other areas of Japan. More facilities will enable us to meet logistics needs associated with these activities byshippers as well as to capture new customers by conducting aggressive activities to increase sales. Overseas, we are pursuing
growth in many ways, such as by signing new agreements to perform logistics operations for customers in China and other Asian
countries.
As one step to strengthen the commerce and trade business, Obata Co., Ltd. became a subsidiary of Senko in September 2012.
This company is a wholesaler of health food and beverages, household products, cosmetics and other products in Hokkaido andthe Tohoku region.
First half performance reflected aggressive measures to capture new customers, the contributions of large capital expendituresin the previous fiscal year, such as new facilities in Chiba, Hokkaido and Miyazaki, and the acquisitions of Smile Corp. andChugoku Piano Transport Co., Ltd. in the previous fiscal year. As a result, first half consolidated operating revenues increased
13.9% from one year earlier to ¥144,412 million.
Earnings benefited from the growth in sales, the new subsidiaries, cost-cutting measures and actions to increase productivity.
Operating income increased 22.6% to ¥4,658 million, ordinary income increased 28.9% to ¥4,711 million, and net income
increased 62.5% to ¥2,674 million.
First half business segment performance was as follows.
Distribution
In the distribution logistics business, there was an increase in cargo volume for general merchandise stores because of the startof operations at large logistics facilities in the previous fiscal year. In the housing distribution business, there was an increase incargo volume involving housing materials. Chugoku Piano Transport Co., Ltd., which became a subsidiary in the previous fiscal
year, also contributed to first half performance. As a result, segment operating revenues increased 1.9% from one year earlier to¥112,516 million.
Commerce and Trade
Segment performance benefited primarily from the acquisition of Smile Corp. in the previous fiscal year and higher revenues inthe trade business and petroleum marketing business. The result was a 103.7% increase in segment operating revenues fromone year earlier to ¥30,369 million.
OthersSegment operating revenues increased 4.6% to ¥1,526 million mainly because of an increase in data processing sales.

2

(2)

Financial Condition
1) Assets, liabilities and net assets
Total assets
Total assets at the end of the first half were ¥202,402 million, down ¥445 million from the end of the previous fiscal year. There
was a ¥447 million increase in guarantee deposits but a ¥955 million decrease in properly, plant and equipment.
Liabilities
Liabilities decreased ¥2,019 million from the end of the previous fiscal year to ¥137,553 million. There were increases of ¥5,000
million in convertible bonds and ¥1,364 million in long-term loans payable and decreases of ¥2,869 million in notes andoperating accounts payable, ¥4,900 million in the current portion of convertible bonds and ¥490 million in income taxes payable.
Net assets
Net assets increased ¥1,574 million from the end of the previous fiscal year to ¥64,848 million. There were decreases of ¥217
million in valuation differences on available-for-sale securities and ¥208 million in deferred gains or losses on hedges and a¥1,915 million increase in retained earnings. The equity ratio increased by 0.8 percentage points to 31.1%.
2) Cash flows
Cash and cash equivalents at the end of the first half totaled ¥13,715 million, an increase of ¥361 million from the end of theprevious fiscal year.
Net cash provided by operating activities was ¥3,885 million. Major sources of cash were income before income taxes of ¥4,675
million and depreciation and amortization of ¥3,325 million and uses of cash included a ¥2,158 million decrease in notes andaccounts payable-trade and income taxes paid of ¥2,203 million.
Net cash used in investing activities was ¥3,570 million. The main use of cash was purchases of property, plant and equipment
totaling ¥3,256 million.
Net cash provided by financing activities was ¥37 million. There were proceeds of ¥6,506 million from long-term loans payableand ¥5,000 million from the issuance of convertible bonds. Cash was used mainly by a ¥2,283 million net decrease in short-termloans payable, repayments of ¥2,310 million for long-term loans payable, payments of ¥4,900 million for the redemption of
convertible bonds, repayments of ¥1,100 million for finance lease obligations, and cash dividends of ¥713 million.

(3) Forecast for Fiscal Year Ending March 2013
The outlook for the Japanese economy is expected to remain uncertain. The economy is benefiting from healthy public-works
expenditures and consumer spending. However, exports and manufacturing activity are weakening because of renewed
concerns about the European debt problem, slowing economic growth in China, emerging countries and other overseas regions,the prolonged strength of the yen, and other issues.
In this environment, based on its medium-term management vision, the Senko Group’s goal is to become a “logistics andinformation organization” that can coexist with society, increase employees’ dedication to growth, and be a source of services
with outstanding performance in relation to their cost on a global scale.
Based on current economic conditions and trends in cargo volumes, the consolidated operating revenues forecast for the fiscal
year has been lowered 1.7% to ¥ 295,000 million and the operating income forecast has been lowered 2.0% to ¥10,000 million
There are no changes to the ordinary income and net income forecasts. The Senko Group will continue to work aggressively on
increasing sales.
(Reference)
Fundamental policy for distribution of earnings and dividend for the current fiscal year The fundamental policy is to return
earnings to shareholders by paying stable dividends and dividends that are linked to results of operations while maintaining theinternal reserves needed for future business development and management structure reinforcement.
In accordance with this policy, based on first half consolidated results of operations, Senko plans to pay a dividend of ¥13.00 per
share for the current fiscal year, the sum of a ¥7.00 interim dividend and ¥6.00 year-end dividend.
Dividends per share
Record datePrevious forecast(announced on April
26, 2012)

Second quarter

Year-end

Annual dividend

6.00 Yen

6.00 Yen

12.00 Yen

6.00 Yen

13.00 Yen

New forecast
Results for second
quarter ended
September 30, 2012
Results for FY ended
March 31, 2012

7.00 Yen
6.00 Yen

6.00 Yen

12.00 Yen

(Commemorative dividend 1.00 Yen)

(Commemorative dividend 1.00 Yen)

(Commemorative dividend 2.00 Yen)3

2.

Other Information(1)

Changes in significant subsidiaries
None

(2)

Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements
None

(3)

Changes in accounting principles and estimates, and retrospective restatement(Changes in accounting policies for items that are difficult to categorize as changes in accounting estimates)
In conjunction with a revision in Japan’s Corporate Income Tax Law, Senko and its consolidated subsidiaries in Japan have revised
the method used for depreciation starting with the first quarter of the current fiscal year. The revised depreciation method, which isbased on the amended Corporate Income Tax Law, is applied to property and equipment purchased on or after April 1, 2012. This
revision had only a negligible effect on earnings.

4

3. Consolidated financial statements(1)

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

As of September 30, 2012

AssetsCurrent assets
Cash and deposits

13,354

13,715

Notes and accounts receivable

40,68840,318Merchandise

4,087

3,900

Real estate for sale

3

3Work in process

150

230

Supplies

188

168

Other

5,834

6,021

Allowance for doubtful accounts

(53)

(70)

64,25464,288

Buildings and structures (net)45,80645,150Land

39,83739,852Other (net)10,495

10,181

Total property, plant and equipment

96,13995,184

3,730

3,588

Other

3,505

3,546

Total intangible assets

7,235

7,135

Guarantee deposits

8,810

9,257

Deferred tax assets

4,000

4,192

Other

22,687

22,611

Total current assets
Noncurrent assets
Property, plant and equipment

Intangible assets
Goodwill

Investments and other assets

Allowance for doubtful accounts

(280)

(268)

Total investments and other assets

35,21735,794

138,592

138,113202,847

202,402

Total noncurrent assets
Total assets

5

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

As of September 30, 2012

Liabilities
Current liabilities
Notes and operating accounts payable- trade32,29729,428Current portion of bonds with subscription rights

4,900

―

Short-term loans payable

13,936

14,484

Income taxes payable

2,281

1,790

Provision for bonuses

3,125

3,364

Provision for directors’ bonuses

172

76

Reserve for loss on disaster

43

―

Other

11,327

10,946

Total current liabilities

68,08460,091

12,00012,000Noncurrent liabilities
Bonds payable

―

5,000

Long-term loans payable

40,422

41,787

Provision for retirement benefits

Convertible bond-type bonds with subscription rights

9,468

9,498

Provision for directors’ retirement benefits

66

61

Provision for special repairs

52

61

Asset retirement obligations

316

320

Other

9,162

8,733

Total noncurrent liabilities

71,48977,462

139,573

137,553

Capital stock

20,521

20,521

Capital surplus

18,782

18,782

Total liabilities
Net assets
Shareholders’ equity

Retained earnings

22,901

24,816

Treasury stock(1,049)(1,044)

Total shareholders’ equity

61,15563,075

Valuation differences on available-for-sale securities

157

(60)

Deferred gains or losses on hedges

156

(52)

Foreign currency translation adjustment

(44)

(35)

Total accumulated other comprehensive income

269

(147)

Accumulated other comprehensive income

Subscription rights to shares

149

195

Minority interests

1,700

1,725

Total net assets

63,27464,848202,847

202,402

Liabilities and net assets

6

(2)

Consolidated Statements of (Comprehensive) Income(Consolidated Statements of Income)(For the six months ended September 30, 2011 and 2012)(Unit : Millions of Yen)
Six months ended
September 30, 2011

Six months ended
September 30, 2012

(April 1, 2011 – September 30, 2011)(April 1, 2012 – September 30, 2012)

Operating revenues

126,837

144,412

Cost of sales

115,782

129,976

Gross profit

11,055

14,436

Selling, general and administrative expenses

7,253

9,777

Operating income

3,801

4,658

Interest income

92

87

Dividends income

430

473

Other

219

282

Total non-operating income

743

843

Interest expenses

585

586

Other

302

204

Total non-operating expenses

888

790

3,655

4,711

Non-operating income

Non-operating expenses

Ordinary income
Extraordinary loss
Loss on revaluation of investment securities―

35

Loss on sales of noncurrent assets

299―

Special retirement expenses

179―

Loss on retirement of noncurrent assets

68―

Loss on cancellation of lease contracts

31―

Total extraordinary loss

578

35

Income before income taxes

3,077

4,675

518

1,708

Income taxes- current
Income taxes- deferred

981

275

Total income taxes

1,500

1,984

Income before minority interests

1,577

2,690

Minority interest in income or loss

(68)

16

1,645

2,674

Net income7

(Consolidated Statements of Comprehensive Income)(For the six months ended September 30, 2011 and 2012)(Unit : Millions of Yen)
Six months ended
September 30, 2011

Six months ended
September 30, 2012

(April 1, 2011 – September 30, 2011)

Income before minority interests(April 1, 2012 – September 30, 2012)

1,577

2,690

Valuation difference on available-for-sale securities

20

(218)

Deferred gains or losses on hedges

9

(216)

Foreign currency translation adjustment

3

12

Share of other comprehensive income of associates accounted forusing equity method(0)0Other comprehensive income

Total other comprehensive income
Comprehensive income

33

(421)

1,610

2,268

1,667

2,257

(57)

11

Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests8(3) Consolidated statements of cash flows(Unit: Millions of Yen)
Six months ended
September 30, 2011

Six months ended
September 30, 2012

(April 1, 2011 – September 30, 2011)(April 1, 2012 – September 30, 2012)

Cash flows from operating activities
Income before income taxes

3,077

4,675

Depreciation and amortization

2,863

3,325

―

35

Loss (gain) on revaluation of investment securities
Loss (gain) on sales of noncurrent assets

299

0Increase (decrease) in provision for retirement benefits

(431)

29

Increase (decrease) in provision for bonuses

569

239

Increase (decrease) in provision for loss on disaster

(640)

(43)

Interest and dividends income

(523)

(561)

Interest expense

585

586

Decrease (increase) in notes and accounts receivable- trade

(888)

482

Decrease (increase) in inventories

(77)

138

2,268

(2,158)

Increase (decrease) in notes and accounts payable- trade
Other

(746)

(201)

Sub-total

6,356

6,549

Interest and dividends income received

131

119

Interest expenses paid

(596)

(580)

Income taxes paid

(1,625)(2,203)

Net cash provided by (used in) operating activities

4,266

3,885

(8,112)(3,256)

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

767

44

Purchase of investment securities

(120)

(23)

3

2

Purchase of investments in subsidiaries resulting in change inscope of consolidation

Proceeds from sales of investment securities(3,963)―

Proceeds from purchase of investments in subsidiaries resulting inchange in scope of consolidation

―

23

(11)

―

Purchase of stocks of subsidiaries and affiliates
Income from sales of stocks of subsidiaries and affiliates

―

22

Other

206

(385)

(11,229)(3,570)Net increase (decrease) in short-term loans payable

7,025(2,283)

Proceeds from long-term loans payable

7,300

6,506

Repayment of long-term loans payable(3,634)(2,310)

Repayments of finance lease obligations(888)(1,100)―5,000

Expense from issuance of bonds with subscription rights―(4,900)Purchase of treasury stock

(0)

(1)

Proceeds from sales of treasury stock―0

Cash dividends paid

(629)

(713)

Other

(113)

(159)

Net cash provided by (used in) financing activities

9,059

37

6

8

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

Proceeds from issuance of bonds with subscription rights

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

2,103

361

Cash and cash equivalents at beginning of period

14,394

13,354

Cash and cash equivalents at end of period

16,497

13,7159