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 Nine Months Ended December 31, 2010

Name of Listed Company:
Code Number:

SENKO Co., Ltd.
9069

Representative:
Title: President
Inquiries:
Title: Executive Officer, Public Relations
Scheduled Date of Issue of Financial Report:
February 10, 2011
Supplemental Information Materials:
None
Scheduled Date of Quarterly Information Meeting: None

1.

January 28, 2011
Stock listed on: the First Section of the Tokyo Stock Exchange
and Osaka Securities Exchange
URL http://www.senko.co.jp
Name: Yasuhisa Fukuda
Name: Noburoh Sasaki
Tel. (06) 6440-5155
Scheduled Date of Dividend Paid:-

Consolidated Operating Results for the Nine Months Ended December 31, 2010
(From April 1, 2010 to December 31, 2010)(1) Consolidated Operating Results (cumulative)

Nine months ended
December 31, 2010
December 31, 2009

Operating Revenues%
Millions of Yen
182,076
7.6
169,141
2.1

Operating income%
Millions of Yen
5,327
(0.5)
5,355
9.7

Net income
per share

Diluted net income
per share
Yen
20.55
21.33

Yen
22.68
23.69

Nine months ended
December 31, 2010
December 31, 2009

(Percentages indicate year-on-year changes.)
Ordinary income
Net income% Millions of Yen%
Millions of Yen
5,387
4.0
2,754
5.9
5,179
8.7
2,601
10.1

(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Millions of Yen
Millions of Yen
As of December 31, 2010
176,565
61,40433.9
As of March 31, 2010
168,131
55,12332.0(Reference) Shareholders’ equity:
As of December 31, 2010: 59,787 million yen
As of March 31, 2010: 53,809million yen
2.

%

Yen
471.45489.99Cash Dividends
First quarter
Yen-

Second quarter
Yen
4.00
5.00

Fiscal year ended March 31, 2010
Fiscal year ending March 31, 2011
Fiscal year ending March 31, 2011
(Forecast)(Note) Revision of dividends forecast in the third quarter: None3.

Net assets per share

Cash dividends per share
Third quarter
Fiscal year-end
Yen
Yen
4.00

-

5.00

Forecast of Consolidated Operating Results for the Year Ending March 2011 (From April 1, 2010 to March 31, 2011)
OperatingOperating
Ordinary
Net income
revenues
incomeincome%Millions of Yen %Millions of Yen%
Millions of Yen % Millions of Yen
Fiscal year ending
243,000 6.7
6,400
4.1
6,500 4.3
3,100 5.2
March 31, 2011
(Note) Revisions to the forecasts of cash dividends in the current quarter: None

Total
Yen
8.00

10.00

Net income
per share
Yen
25.25

4.

Others(Note) Please see [Attached Information] “Other Information” on page 3 for details.
(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries associated with change in scope of consolidation): None
(2) Application of simplified accounting procedures or of distinctive accounting procedures for the preparation of quarterly
consolidated financial statements: Yes(3) Changes in accounting principles, accounting procedures and presentation methods related to preparation of consolidated financial statements(Changes to be stated in the section “Changes in significant matters providing the basis for preparing consolidated financial statements”)
a. Changes involving amendments and revisions to accounting standards: Yes
b. Changes other than those included in the above a.: None
(4) Shares outstanding (Common shares)
a. Shares outstanding at fiscal year end (including treasury stocks)
As of December 31, 2010

128,989,476 shares

As of March 31, 2010

111,989,476 sharesb. Number of treasury shares at the end of the period
As of December 31, 2010

2,173,638 shares

As of March 31, 2010

2,172,362 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2010
121,466,726 shares
Nine months ended December 31, 2009
109,820,008 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.
*About the appropriate use of business forecasts and other special instruction
 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 of reasons. For
information about the assumptions used for forecasts and precautions concerning the use of forecasts, please see “Forecast for Fiscal Year Ending
March 2011” on page 3.

Index to accompanying materials

1.

2.

3.

Results of Operations and Financial Condition

2(1)

Results of Operations

2(2)

Financial Condition3(3)

Forecast for Fiscal Year Ending March 20113

Other information

3(1)

Changes in Material Subsidiaries

3(2)

Summary of Simplified or Special Accounting Methods

3(3)

Summary of Changes in Accounting Principles and Procedures, Presentation Methods and Other Items

3(4)

Significant Items about Going-Concern Assumption

3

Consolidated Financial Statements

4(1)

Consolidated Balance Sheets

4(2)

Consolidated Statements of Income

6(3)

Consolidated Statements of Cash Flows

7(4)

Note to Assumption of Going Concern

8(5)Consolidated Segment Information

8(6)

Material Changes in Shareholders’ Equity

91

1. Results of Operations and Financial Condition(1) Results of Operations
The Japanese economy has shown signs of a mild recovery during the period under review, however the upturn has been losing
momentum.
In the logistics industry, the operating environment remains challenging. Cargo volume within Japan is expected to decline for the 11th
consecutive year based on the outlook for a weak rebound in domestic demand in the current fiscal year, too.
The current fiscal year is the beginning of the Senko Group’s new three-year medium-term business plan based on the slogan“Moving Global.” In the first half of the fiscal, we started operations at the Kanazawa PD Center, Qingdao PD Center, Maishima PD
Center. Also, we established a joint venture company of Senko - Lancaster Silk Road Logistics LLP in Kazakhstan, and Qingdao
Xuexing International Logistics Co., Ltd. in China. In October, we started construction of Noda No.1 PD Center and Noda No.2 PD
Center (both are provisional names), and we embarked on expanding business in north district of Kanto.
As a result, third quarter operating revenues benefited from a number of factors. Most significant was aggressive measures to attract
new customers, growth in sales by large scale capital investment, and the addition of Marufuji Co., Ltd. to the Senko Group. Overall,consolidated second quarter operating revenues totaled 182,076 million yen, 7.6% higher than one year earlier.
Operating income, on the other hand, affected by negative factors such as price corrections and fuel price rises even though theoperating revenues grown, slightly decreased 0.5% to 5,327 million yen. However, ordinary income increased 4.0% to 2,754 million
yen and net income was up 5.9% to 2,754 million yen by improvement in balance of non-operating income and expenses.
Third quarter business segment performance was as follows.
Distribution
Operating revenues increased 5.5% to 160,141 million yen mainly because of aggressive actions to capture new business and growth
in revenues in current operations.
Trading and Commerce
Operating revenues increased 28.3% to 19,815 million yen due to the acquisition of Marufuji and higher sales of petroleum products.
OthersOperating revenues increased 14.5% to 2,119 million yen because of growth in the outsourced information processing business.
ReferenceStarting with the first quarter of the fiscal year ending March 31, 2011, Senko has changed its business segments due to adoption of“Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” (ASBJ Statement No. 17, March 27,2009) and “Guidance on Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” (ASBJ
Guidance No. 20, March 31, 2008). The new business segments for financial reporting are as follows.
(Unit: Millions of Yen)
Nine months ended
Nine months ended
ChangeDecember 31, 2009
December 31, 2010
Distribution
151,840
160,141
5.5%
Trading and Commerce
15,44819,815
28.3%
Others
1,851
2,119
14.5%
Total
169,141
182,076
7.6%(2) Financial Condition(a) Assets, liabilities and net assets
Total assets were 176,565 million yen at the end of the third quarter, 8,434 million yen more than at the end of the previous fiscal
year. The main reason was an increase of 8,779 million yen in fixed assets mainly because of the newly constructed Noda No.1
PD Center and Noda No.2 PD Center (both are provisional names).
Total liabilities increased 2,152 million yen to 115,160 million yen. This was the result of increases of 1,015 million yen in notes
and operating accounts receivable, 1,478 million yen in long term loans and in other items.
(b) Net assets
Net assets increased 6,281 million yen to 61,404 million yen. This was mainly the result of increases of 2,175 million yen incommon stock and in the capital surplus because of the June public offering of stock. The equity ratio increased by 1.9
percentage point to 33.9%.
(c) Cash flows
There was a net decrease of 2,606 million yen in cash and cash equivalents to 11,898 million yen at the end of the third quarter.
Net cash used in operating activities was 3,254 million yen. Cash was provided by income before income taxes and minority
interests of 4,944 million yen and depreciation and amortization of 4,127 million yen. Cash was used by a 2,575 million yen
increase in account payable, and income tax paid of 2,837 million yen.
Net cash used in investing activities was 10,724 million yen. The largest use of cash was 8,772 million yen for purchases oftangible fixed assets, 1,557 million yen paid for long-term loans receivable.

2Net cash provided by financing activities was 4,397 million yen. There were proceeds of 6,950 million yen in revenue fromlong-term loans, 4,350 million yen from the issuance of stock and payments, 4,143 million yen for the repayment of long-termloans, payment of 1,104 million yen for the repayment of finance lease debt, and 1,038 million yen for dividends.
(3) Forecast for Fiscal Year Ending March 2011
Although Japan’s economy is recovering, given that the upturn has been losing momentum, the operating environment for the Senko
Group is expected to remain difficult.
The Senko Group has started a new three-year medium-term business plan based on the slogan “Moving Global.” The objective is toleverage all of the group’s strengths to become a “logistics and information company.” We are determined to be a global source ofhigh-quality services with outstanding performance in relation to cost. We are also dedicated to co-existing with society and enabling
our employees to develop and achieve their goals.
There are no revisions to the fiscal year consolidated forecasts that the Company was announced on October 27, 2010.

2. Other Information(1) Changes in Material Subsidiaries
None(2) Summary of Simplified or Special Accounting Methods(a) Method for estimating losses on ordinary receivables
To estimate losses on ordinary receivables, the actual loss ratio used at the end of the previous fiscal year was used because theCompany believes there was no significant change between this loss ratio and the loss ratio at the end of the third quarter.
(b) Method for calculating deferred tax assets and liabilities
To determine the likelihood of collecting deferred tax assets, business forecasts and tax planning that were used for thisdetermination at the end of the previous fiscal year were used because the Company believes there have been no significant
changes since the end of the previous fiscal year in the operating environment and in the occurrence of one-time items and otheritems.
(3) Summary of Changes in Accounting Principles and Procedures, Presentation Methods and Other Items
Starting with the first quarter of the fiscal year ending March 31, 2011, “Accounting Standard for Asset Retirement Obligations” (ASBJ
Statement No. 18, March 31, 2008) and “Guidance on Accounting Standard for Asset Retirement Obligations (ASBJ Guidance No. 21,
March 31, 2008) have been applied. This change reduced third quarter operating income and ordinary income by 14 million yen eachand reduced third quarter income before income taxes and minority interests by 144 million yen.
(4) Significant Items about Going-Concern Assumption
None3

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Unit: Millions of Yen)
As of December 31, 2010

As of March 31, 2010

AssetsCurrent assets
Cash and deposits

11,89814,504

Notes and accounts receivable

32,96330,364Merchandise

783

1,237

Real estate for sale15

24

Supplies

144

112

Work in process

172

202

5,172

5,043

(51)

(44)

51,09951,445

Buildings and structures (net)37,711

36,669Land

39,62935,401Other (net)

10,489

10,164

Total Property, plant and equipment

87,82982,235Intangible assets

4,437

3,616

Guarantee deposits

8,731

8,728

Deferred tax assets

5,018

5,007

Other

19,706

17,348

Allowance for doubtful accounts

(257)

(251)

Total investments and other assets

33,19830,832

Total noncurrent assets

125,465

116,685

Total assets

176,565

168,131

OthersAllowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment

Investments and other assets

4

(Unit: Millions of Yen)
As of December 31, 2010

As of March 31, 2010

Liabilities
Current liabilities
Notes and operating accounts payable- trade

23,48922,473

Short-term loans payable

16,19815,320

Income taxes payable

585

1,845

Provision for bonuses

1,604

3,384

75

84

Other

9,571

8,251

Total current liabilities

51,52351,359

Bonds

7,000

7,000

Convertible bond-type bonds with subscription rights

4,900

4,900

Long-term loans payable

32,87531,396

Provision for retirement benefits

9,807

9,907

Provision for directors’ retirement benefits

37

53

Provision for special repairs

37

25

Assets retirement obligations

290

-

Other

8,688

8,366

Total noncurrent assets

63,63761,648115,160

113,008

Capital stock

20,521

18,345

Capital surplus

18,782

16,607Retained earnings

21,296

19,604

(772)

(772)

59,82853,785

2

49

Deferred gains or losses on hedges

(13)

(22)

Foreign currency translation adjustment

(29)

(3)

Total valuation and translation adjustments

(40)

23

107

80

Minority interests

1,508

1,233

Total net assets

61,404

55,123Liabilities and net assets

176,565

168,131

Provision for directors’ bonuses

Noncurrent liabilities

Total liabilities
Net assets
Shareholders’ equity

Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Valuation differences on available-for-sale securities

Subscription rights to shares5(2) Consolidated Statements of Income(Unit: Millions of Yen)
Nine months ended

Nine months ended

December 31, 2009

December 31, 2010

(April 1, 2009 – December 31, 2009)(April 1, 2010 – December 31, 2010)

Operating revenues

169,141

182,076

Cost of sales

154,100

166,115Gross profit

15,04015,960

Selling, general and administrative expenses

9,685

10,633Operating income

5,355

5,327

Interest income

130

138

Dividends income

691

671

Other

428

454

1,250

1,263

Interest expenses

840

877

Other

585

325

Total non-operating expenses

1,425

1,203

Ordinary income

5,179

5,387

250

159

-

130

Non-operating income

Total non-operating income
Non-operating expenses

Extraordinary loss
Loss on retirement of noncurrent assets
Loss on adjustment for changes of accounting standard for asset retirement obligations
Special termination benefits-

74

Loss on sales of fixed assets-

56

Loss on cancellation of lease contracts

81

22

Loss on prior periods adjustment

180-

Loss on revaluation of investments in securities

43-

Loss on revaluation of fixed assets

32-

Total extraordinary loss

587

443

Income before income taxes

4,592

4,944

Income taxes- current

1,638

1,573

Income taxes- deferred

438

690

2,077

2,264

Income before minority interests

-

2,680

Minority interest in income or loss

(86)

(74)

2,601

2,754

Total income taxes

Net income6(3) Consolidated Statements of Cash Flows(Unit: Millions of Yen)
Nine months ended

Nine months ended

December 31, 2009

December 31, 2010

(April 1, 2009 – December 31, 2009)(April 1, 2010 – December 31, 2010)

Cash flows from operating activities
Income before income taxes

4,592

4,944

Depreciation and amortization

3,649

4,127

250

159

-

130

Increase (decrease) in provision for retirement benefits

(55)

(100)

Increase (decrease) in provision for bonuses(991)(1,780)Interest and dividends income

(822)

(809)

Loss on retirement of noncurrent assets
Loss on adjustment for changes of accounting standard for asset retirement obligations

Interest expenses

840

877

(4,195)(2,575)

Increase (decrease) in inventories

(264)

460

Increase (decrease) in notes and accounts payable- trade

3,001

1,616

Other

(843)

(343)

Sub-total

5,162

6,707

Interest and dividends income received

198

198

Interest expenses paid

(786)

(814)

Income taxes paid

(1,874)(2,837)

Net cash provided by (used in) operating activities

2,699

3,254

(1,865)(8,772)

Proceeds from sales of property, plant and equipment

267

289

Purchase of investment securities

(15)

(14)

Proceeds from sales of investment securities

29

6

(478)

-

Increase (decrease) in notes and accounts receivable- trade

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

Purchase of investments in subsidiaries resulting in change in scope of consolidation
Purchase of stocks of subsidiaries and affiliates

-

(320)

134

-

Payments for investments in capital of subsidiaries and affiliates

-

(171)

Long-term loans made-

(1,557)

241

(184)

(1,685)(10,724)

Net increase (decrease) in short-term loans payable

(684)

(450)

Proceeds from long-term debt

4,400

6,950

Repayment of long-term loans payable(1,006)(4,143)

Proceeds from sales of stocks of subsidiaries and affiliates

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

Proceeds from issuance of bond

7,000

-

Redemption of bonds(7,000)-

Repayments of finance lease obligations-(1,104)

Proceeds from issuance of common stock

-

4,350

Purchase of treasury stock

(3)

(1)

Proceeds from sales of treasury stock

2

1

(852)

(1,.038)(1,113)

(167)

741

4,397

0

(28)

Net increase (decrease) in cash and cash equivalents

1,756(3,102)

Cash and cash equivalents at beginning of year

11,74814,50435

495

13,54011,898Cash dividends paid
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Increase (decrease) in cash and cash equivalents resulting from change of scope of
consolidation
Cash and cash equivalents at end of period7(4) Notes to Assumption of Going Concern
Not applicable.

(5) Consolidated Segment Information[Segment information by business segment]
Nine months ended December 31, 2009

(Unit: Millions of Yen)

Transport

Integrated Retail

Others

Total

Logistics

Elimination or

Consolidated

corporate

Operating revenues(1) Revenues from customers

97,48254,35817,300169,141-

169,141(2) Inter-segment revenues

2,166

3,277

8,504

13,948(13,948)-

Total

99,64857,63625,804

183,089(13,948)

169,141

Operating income

2,961

1,731

715

5,409

(53)

5,355

or transfers

Note:
1. Business segments above are based on the grouping used internally.
2. Each segment includes the following products:(1) Transport

Truck transport, special cargo transport, cargo transport using trucks, cargo transport using
railways, international and domestic marine cargo transport, harbor transport services,international cargo transport services, others.

(2) Integrated Retail Logistics

Warehouse operations, packaging, movement and other tasks for raw materials and finishedproducts at customers’ business sites, operation of distribution centers, others.

(3) Others

Sales of petroleum products, sales of information processing equipment, outsourced
information processing services, motor vehicle maintenance and repairs, others.

[Segment information by geographic area]
Nine months ended December 31, 2009
Operating revenues from overseas operations are not shown since they account for less than 10% of consolidated operating revenues.
[Operating revenues from overseas]
Nine months ended December 31, 2009
Operating revenues from overseas operations are not shown since they account for less than 10% of consolidated operating revenues.

[Segment information]
1.

The reported segments of the Company are subject to periodic review so as to ensure that separate financial information on its
constituent divisions is available and that the board of directors can decide on the deployment of operational assets and assessbusiness performance.
Senko is engaged chiefly in the distribution business which contains truck transport, railway forwarding, and marine transport. The
Company also offers the warehousing, in-factory works. Consequently, the Company forte lies in supplying integrated efficient
distribution services, from distribution consulting to system design and operations that closely match customer needs. The other hand,
the Company provides petroleum sales business, data processing equipment for sale, trading, data processing and vehicle repair
business.
Accordingly, the Company is composed of business segments based on business operations and business organizations and the threereported segments of “Distribution Business”, “Commerce and Trading Business”, and “Other Business”.
“Distribution Business” principally offers track transport, railway forwarding, marine transport, international transport, warehousing,in-factory works, and distribution center operations.
“Commerce and Trading Business” principally offers sales of petroleum, merchandise sales and trading.
“Other Business” principally composed of order-made data processing, vehicle repair business and insurance agency business.

8

2.

Difference between operating revenues and profit or loss amount for reported segments
Nine months ended December 31, 2010

(Unit: Millions of Yen)
Reported segment
Distribution

Commerce and

Other

Business

Trading BusinessBusiness

Total

Adjustments

Consolidated(Note) 1(Note) 2

Operating revenues
Sales to external customers

160,141

19,8152,119

182,076-

182,076

529

6,458

2,803

9,790

(9,790)-160,670

26,273

4,922

191,866(9,790)

182,076

4,632

396

375

5,404

(77)

5,327

Inter-segment sales and transfer
Total
Operating income(Note)
1.

The amounts in "Adjustments" of ¥ (77) million include the eliminations of intersegment transactions of ¥ (9,790) million and theunallocated corporate expenses of¥ (9,713) million. Corporate expenses are chiefly SG&A expenses not belong to segments.

2.

The aggregated amounts of operating income are adjusted and equal to those in the consolidated statements of income.

(Additional information)
From the three-month period ended June 30, 2010, the Company and its consolidated subsidiaries have adopted ASBJ Statement No.
17, “Revised Accounting Standard for Disclosure about Segments of an Enterprise and Related Information” and ASBJ Guidance No. 20,“Guidance on the Accounting Standard for Disclosures about Segments of on Enterprise and Related Information” issued by ASBJ on
March 27, 2009 and March 21, 2008 respectively.
(6) Material Changes in Shareholders’ Equity
The Company made a public offering on June 22, 2010.
Following that, the amount of capital stock and capital surplus increased ¥ 1,919 million, respectively.
Furthermore, the Company issued new shares by way of third party allotment on July 22, and capital stock and capital surplus increased¥255 million.
As a result, capital stock is ¥ 20,521 million, and capital surplus is ¥ 18,782 million at end of the third quarter.

9