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, 2012
[Japan GAAP]
October 27, 2011
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 10, 2011
Scheduled Date of Dividend Paid: December 6, 2011
Supplemental Information Materials:

Yes

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

1. Consolidated Operating Results for the Second Quarter Ending March 2012 (From April 1, 2011 to September 30, 2011)(1) Consolidated Operating Results

Note: Amounts less than one million yen have been rounded down.
Operating revenues

Operating income

Million yen%

Million yen%

Million yen

Ordinary income%

Million yen

Net income%

Second quarter ending March 31, 2012

126,837

7.0

3,801

37.7

3,655

29.6

1,645

24.5

Second quarter ended March 31, 2011

118,551

9.8

2,759

(0.1)

2,820

4.5

1.322

2.7

(Note) Comprehensive income
Second quarter ending March 31, 2012 1,610 million yen (36.7%) Second quarter ended March 31, 2011 1,177 million yen (–%)
Net income
per share

Diluted net income per
share
Yen
Yen

Second quarter ending March 31, 2012

13.08

11.87

Second quarter ended March 31, 2011

11.13

10.07

(2) Consolidated Financial Position
Total assets
Second quarter ending March 31, 2012

Net assets

Equity ratio

Net assets per share

Million yen

Million yen

196,258

61,77830.6

477.3960,60433.3

469.14

Fiscal year ended March 31, 2011
177,284(Reference) Shareholders’ equity:
Second quarter ending March 31, 2012 60,061 million yen%

Yen

Fiscal year ended March 31, 2011 59,024million yen

2. Dividends
First quarter
Yen

Second quarter
Yen

Annual dividend
Third quarter
Yen

Fiscal year ended March 31, 2011

－

5.00

Fiscal year ending March 31, 2012

－

6.00

Fiscal year ending March 31, 2012
(Forecast)Year-end

Total
Yen

Yen

－

5.00

10.00

－

6.00

12.00

(Note) Change in the estimation of dividend for the fiscal year in this period: Yes
The dividend forecast in the earnings announcement dated May 16, 2011 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.
The dividend for the first half of the current fiscal year and the year-end dividend for the current fiscal year (forecast) each include a one yen
commemorative dividend for the company’s 65th anniversary.

3. Forecast of Consolidated Operating Results for the Year Ending March 2012 (From April 1, 2011 to March 31, 2012)(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 2012

270,000

12.0

8,150

33.6

8,000

25.5

3,750

65.8

29.81

(Note) Change in the forecast made in this period: Yes
Forecast stated in the results of operations for the fiscal year ending March 2012 announced on July 28, 2011 has been revised. Please refer
Forecast for Fiscal Year Ending March 2012 on page 3.

4. Others(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: None(b) Changes other than in (a): None(c) Changes in accounting estimates: None(d) Retrospective restatement: None
(Note) Changes to be stated in the section “Changes in significant matters providing the basis for preparing consolidated financial
statements”(4) Shares outstanding (Common shares)
a. Shares outstanding (including treasury stocks)
As of September 30, 2011

128,989,476 shares

As of March 31, 2011

128,989,476 shares

3,177,665 shares

As of March 31, 2011

3,174,635 sharesb. Treasury stock
As of September 30, 2011

c. Average number of shares (quarterly consolidated cumulative period)
Period ended September 30, 2011

125,813,853 shares

Period ended September 30, 2010 118,777,329 shares*Information concerning quarterly review procedurex 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
x 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 2012” on page 3.

2

Index to accompanying materials

1．Results of Operations and Financial Condition ………………………………………………………………………………… ………… 2(1) Results of operations …………………………………………………………………………………………………………………… 2(2) Financial condition ……………………………………………………………………………………………………………………… 2(3) Forecast for fiscal year ending March 2012 ………… ………………… ………… ………………………………………………… 3
2．Other Information ……………………………………………………………………………………………………………………………… 4(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 ………………………………………………… 4
3．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, 2010 and 2011 ……………………………………………………………………… 7
Consolidated statements of comprehensive income
For the six months ended September 30, 2010 and 2011 ……………………………………………………………………… 8(3) Consolidated statements of cash flows………… ………………… ………… …………………………………………………… 9

1.

Results of Operations and Financial Condition(1)

Results of operations
In the first half of the current fiscal year, there was a sharp drop in consumer spending and production activity immediately after theGreat East Japan Earthquake. But the Japanese economy then staged a steady recovery as supply chains were restored andcompanies repaired manufacturing equipment. However, there are concerns about a downturn in the Japanese economy becauseof the yen’s strength, the shortage of electricity, and uncertainty about the outlook for the global economy due to financial instability
in Europe and slowing U.S. economic growth.
In the logistics industry, cargo volume in Japan fell sharply immediately after the earthquake but has been recovering along withrecovery activities. But it is impossible to determine when demand associated with earthquake reconstruction activities will create
demand and manufacturing activity in Japan is declining because of the yen’s strength. As a result, the operating environment for
the industry remains difficult with cargo volume expected to decline.
In this environment, the Senko Group is placing the highest priority on supporting the earthquake recovery and reconstruction
activities of our customers. Furthermore, the group is conducting aggressive activities in Japan and overseas because this is thesecond year of the three-year medium-term management plan based on the slogan “Moving Global.”
In July, operations started at the Kentucky Distribution Center in the United States. This center holds and distributes merchandisefor major U.S. retailers and meets the logistics needs of Japanese companies. In August, we started operations at the Noda No. 1
PD Center in the city of Noda in Chiba prefecture. This is our largest distribution center and provides services for major retailers inJapan. In September, Smile Corp. became a Senko subsidiary as part of measures to strengthen the trading and commercebusiness. Smile is a trading company that handles packaging materials, food and alcoholic beverages, and household products.
First half performance benefited from growth in the volume of cargo volume for current customers due to demand involving
earthquake reconstruction activities and products associated with earthquake damage and conserving electricity. Performance also
reflected aggressive measures to attract new customers. As a result, consolidated operating revenues increased 7.0% to 126,837
million yen. Although the increase in the cost of fuel had a negative impact on earnings, first half earnings were higher because of
growth in revenues and measures to cut costs. Operating income increased 37.7% to 3,801 million, ordinary income increased
29.6% to 3,655 million yen and net income increased 24.5% to 1,645 million yen.
Second quarter business segment performance was as follows.
Distribution
There was growth in cargo volume for current customers in the housing logistics sector because of earthquake reconstruction
demand, including for temporary housing, and in the retail logistics sector because of demand for housing-related products
associated with reconstruction, electricity-conserving products, and products to cope with summer heat. Extensive measures toattract new customers also contributed to this segment’s performance. The result was a 6.3% increase in operating revenues to110,470 million yen.
Commerce and Trade
The higher cost of crude oil raised revenues in the petroleum product sales business and there was growth in revenues at
Marufuji Co., Ltd. and in the trading business. Overall, segment operating revenues increased 13.4% to 14,908 million yen.
Others
A decline in information processing revenues caused segment operating revenues to decrease 2.2% to 1,458 million yen.

(2)

Financial condition
1) Assets, liabilities and net assets
Total assets
Total assets were 196,258 million yen at the end of the first half, 18,973 million yen higher than at the end of the previous fiscal
year. There were increases of 5,784 million yen in notes and accounts receivable, 2,689 million yen in inventories, 5,247 million
yen in property, plant and equipment, and 2,922 million yen in intangible assets.
Liabilities
Total liabilities were 134,480 million yen at the end of the first half, 17,800 million yen higher than at the end of the previous fiscal
year. There were increases of 6,921 million yen in notes and operating accounts payable, 6,743 million yen in short-term loans
payable and 4,831 million yen in long-term loans payable.
Net assets
Net assets increased 1,173 million yen to 61,778 million yen mainly because of a 1,016 million yen increase in retained earnings.
The equity ratio decreased 2.7 percentage points to 30.6%.
2) Cash flows
There was a net increase of 2,103 million yen in cash and cash equivalents from the end of the previous fiscal year to 16,497
million yen.
Net cash provided by operating activities was 4,266 million yen. Major sources of cash were income before income taxes of2

3,077 million yen, depreciation and amortization of 2,863 million yen and a 2,268 million yen increase in notes and accounts
payable - trade. Major uses of cash were a 640 million yen decrease in the reserve for disaster losses, an 888 million yen
increase in notes and accounts receivable - trade, 596 million yen for interest expenses paid, and 1,625 million yen for income
taxes paid.
Net cash used in investing activities was 11,229 million yen. Major uses of cash were payments of 8,112 million yen for thepurchase of property, plant and equipment 3,963 million yen for the purchase of investments in subsidiaries resulting in change
in scope of consolidation.
Net cash provided by financing activities was 9,059 million yen. There were proceeds of 7,025 million yen from a net increase in
short-term loans payable and 7,300 million yen from long-term loans payable and payments of 3,634 million yen for the
repayment of long-term loans payable, 888 million yen for the repayment of finance lease obligations and 629 million yen for
cash dividends paid.
(3) Forecast for fiscal year ending March 2012
The slow recovery of the Japanese economy is expected to continue. But the outlook for the economy remains uncertain
because of the yen’s strength, the shortage of electricity, and worries about the outlook for the global economy due to financial
instability in Europe and slowing U.S. economic growth.
The current fiscal year is the second year of the Senko Group’s ongoing three-year medium-term management plan. During thisplan, the group is leveraging its collective strengths to coexist with society while increasing the commitment of group employees
to achieve growth. The goal is to become a logistics and information organization able to provide high-quality services with a low
cost in relation to benefits on a global scale.
The forecast for the fiscal year ending in March 2012 has been revised as follows because first half performance surpassed theforecast and Smile Corp. became a consolidated subsidiary in September 2011.

Million yen

Million yen

Million yen

Million yen

Net income per
share
Yen

Previous forecast (A)255,000

7,400

7,300

3,450

27.42

New forecast (B)270,000

8,150

8,000

3,750

29.81

Difference (B–A)

15,000

750

700

300

－

Pct. change (%)

5.9

10.1

9.6

8.7

－

241,046

6,099

6,375

2,261

18.44

Operating revenues Operating income(Ref.) Results for FY ended
March 31, 2011

Ordinary income

Net income

Reference: Fundamental policy for earnings allocations and dividends in the current fiscal year
The Company’s fundamental policy is to pay a steady and consistent dividend to shareholders that reflect consolidated
performance as well as the need to establish a more powerful financial position and base of operations from a long-term stable
perspective.
For the current fiscal year, two yen (interim one yen and year-end one yen) per share will be paid as the commemorative
dividend for the company’s 65th anniversary.
This will result in a dividend of 12 yen (interim six yen and year-end six yen) per share applicable to the fiscal year.

Dividends per share
Record date

Second quarter

Year-end

Annual dividend

Previous forecast(announced on May 16, 2011)

5.00 Yen

5.00 Yen

10.00 Yen

New forecast
Results for second
quarter ended
September 30, 2011
Results for FY ended
March 31, 2011

6.00 Yen

12.00 Yen

(Dividend 5.00 Yen)
(Commemorative dividend 1.00 Yen)

(Dividend 10.00 Yen)
(Commemorative dividend 2.00 Yen)

5.00 Yen

10.00 Yen

6.00 Yen(Dividend 5.00 Yen)
(Commemorative dividend 1.00 Yen)

5.00 Yen3

2.

Other Information(1)

Changes in significant subsidiaries
None

(2)

Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements(3)

Changes in accounting principles and estimates, and retrospective restatement

None

None

4

3.

Consolidated Financial Statements(1)

Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2011

As of September 30, 2011

AssetsCurrent assets
Cash and deposits

14,394

16,497

Notes and accounts receivable

31,14736,932719

3,334

Merchandise
Real estate for sale

15

10Work in process

104

194

Supplies

176

166

Other

6,304

6,254

Allowance for doubtful accounts

(29)

(41)

52,833

63,348

Buildings and structures (net)36,96240,875

Land

39,23339,623

Other (net)

10,50811,451

Total property, plant and equipment

86,703

91,951

1,028

3,827

Other

3,358

3,482

Total intangible assets

4,387

7,309

Total current assets
Noncurrent assets
Property, plant and equipment

Intangible assets
Goodwill

Investments and other assets
Guarantee deposits

8,719

8,720

Deferred tax assets

4,969

4,570

Other

19,897

20,673

(226)

(314)

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

533,35933,649124,450

132,910

177,284

196,258

(Unit: Millions of Yen)
As of March 31, 2011

As of September 30, 2011

Liabilities
Current liabilities
Notes and operating accounts payable- trade22,603Current portion of bonds with subscription rights

29,524-4.900

Short-term loans payable

16,54523,289

Income taxes payable

1,719

724

Provision for bonuses

2,853

3,483

Provision for directors’ bonuses

112

74

Allowance for loss on disaster

836

196

Other

9,251

10,097

Total current liabilities

53,92372,291

Bonds payable

7,000

7,000

Convertible bond-type bonds with subscription rights

4,900

-

Long-term loans payable

32,331

37,162

Provision for retirement benefits

9,724

9,499

Noncurrent liabilities

Provision for directors’ retirement benefits

37

57

Provision for special repairs

39

42

Asset retirement obligations
Other
Total noncurrent liabilities

292

296

8,431

8,131

62,75662,189116,679

134,480

Capital stock

20,521

20,521

Capital surplus

18,782

18,782Retained earnings

20,806

21,823

Treasury stock(1,046)(1,047)

Total shareholders’ equity

59,06360,079Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation differences on available-for-sale securities

2

14

Deferred gains or losses on hedges

(9)

(3)

Foreign currency translation adjustment

(31)

(28)

Total accumulated other comprehensive income

(38)

(17)

107

149

Subscription rights to shares
Minority interests

1,472

1,567

Total net assets

60,604

61,778177,284

196,258

Liabilities and net assets

6

(2)

Consolidated statements of (comprehensive) income(Consolidated statements of income)(For the six months ended September 30, 2010 and 2011)(Unit: Millions of Yen)
Six months ended

Six months ended

September 30, 2010

September 30, 2011

(April 1, 2010 –September 30, 2010)(April 1, 2011 –September 30, 2011)

Operating revenues

118,551

126,837

Cost of sales

108,690

115,782

Gross profit

9,860

11,055

Selling, general and administrative expenses

7,100

7,253

Operating income

2,759

3,801

89

92
430

Non-operating income
Interest income
Dividends income

430

Other

353

219

Total non-operating income

874

743

580

585

Other

232

302

Total non-operating expenses

813

888

2,820

3,655

Non-operating expenses
Interest expenses

Ordinary income
Extraordinary loss-

299

Special retirement expenses

Loss on sales of noncurrent assets

74

179

Loss on retirement of noncurrent assets

147

68

Loss on cancellation of lease contracts

22

31

130

-

Loss on adjustment for changes of accounting standard
for asset retirement obligation
Total extraordinary loss

375

578

Income before income taxes

2,445

3,077

Income taxes- current

1,073

518

Income taxes- deferred

124

981

Total income taxes

1,198

1,500

Income before minority interests

1,247

1,577

Minority interest in income or loss
Net income

7

(74)

(68)

1,322

1,645

(Consolidated statements of comprehensive income)(For the six months ended September 30, 2010 and 2011)(Unit: Millions of Yen)
Six months ended

Six months ended

September 30, 2010

September 30, 2011

(April 1, 2010 –September 30, 2010)(April 1, 2011 –September 30, 2011)

1,247

1,577

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities

(75)

20

Deferred gains or losses on hedges

89Foreign currency translation adjustment

0

3

(2)

(0)

Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income

(69)

33

1,177

1,610

1,252

1,667

(75)

(57)

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

8

(3)

Consolidated statements of cash flows(Unit: ¥ million)
Six months ended

Six months ended

September 30, 2010

September 30, 2011

(April 1, 2010 –September 30, 2010)(April 1, 2011 –September 30, 2011)

Income before income taxes

2,445

3,077

Depreciation and amortization

2,722

2,863

Loss (gain) on sales of noncurrent assets-

299

Loss on retirement of noncurrent assets

147

68

Loss on adjustment for changes of accounting standard for asset
retirement obligation

130-

Increase (decrease) in provision for retirement benefits

(67)

(431)

Increase (decrease) in provision for bonuses

(408)

569

-

(640)

(520)

(523)

Cash flows from operating activities

Increase (decrease) in allowance for loss on disaster
Interest and dividends income
Interest expenses

580

585

Decrease (increase) in notes and accounts receivable- trade

(104)

(888)

Decrease (increase) in inventories

545

(77)

Increase (decrease) in notes and accounts payable- trade

(509)

2,268

Other

(1,711)(814)

Sub-total

3,249

6,356

Interest and dividends income received

119

131

(589)

(596)

Income taxes paid

(1,699)(1,625)

Net cash provided by (used in) operating activities

1,079

4,266

Interest expenses paid

Cash flows from investing activities
Purchase of property, plant and equipment(3,179)(8,112)

Proceeds from sales of property, plant and equipment

64

767

Purchase of investment securities

(9)

(120)

Proceeds from sales of investment securities

4

3

Purchase of investments in subsidiaries resulting in change inscope of consolidation-(3,963)Purchase of stocks of subsidiaries and affiliates

(198)

(11)

Payments for investments in capital of subsidiaries and affiliates

(104)

-

(1,407)-

Payments of long-term loans receivable
Other
Net cash provided by (used in) investing activities

180

206

(4,649)(11,229)

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

(450)

7,025

Proceeds from long-term loans payable

2,950

7,300

Repayment of long-term loans payable(4,056)(3,634)

Repayments of finance lease obligations

(626)

(888)

Proceeds from issuance of common stock

4,350

-

Purchase of treasury stock

(1)

(0)

Proceeds from sales of treasury stock

1

-

(438)

(629)

Cash dividends paid le
Other

(113)

(113)

Net cash provided by (used in) financing activities

1,616

9,059

Effect of exchange rate change on cash and cash equivalents

(19)

6

Net increase (decrease) in cash and cash equivalents(1,973)

2,103

Cash and cash equivalents at beginning of period

14,504

14,394495-

13,027

16,497

Increase (decrease) in cash and cash equivalents resulting fromchange of scope of consolidation
Cash and cash equivalents at end of period9