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 First Quarter of the Fiscal Year Ending March 31, 2016
[Japan GAAP]
July 31, 2015
Name of Listed Company: SENKO Co., Ltd.
Stock Listed on: The First Section of the Tokyo Stock Exchange
Code Number:9069
URL http://www.senko.co.jp/en/
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:
August 13, 2015
Scheduled Date of Dividend Paid: —Supplemental Information Materials:
None
Scheduled Date of Quarterly Information Meeting:None
1. Consolidated Operating Results for the Three Months Ended June 30, 2015
(1) Consolidated Operating Results
Operating revenue
Three months ended June 30, 2015
Three months ended June 30, 2014
(Note) Comprehensive income

Million yen
106,370
89,125%
19.4
19.3

Note: Amounts less than ¥1 million have been rounded down.
Profit attributable toOperating income
Ordinary income
owners of the parent
Million yen%
Million yen%
Million yen%
3,843
60.8
3,756
61.9
1,952
38.6
2,389(12.4)
2,320(9.8)
1,408(13.0)

Three months ended June 30, 2015: ¥3,110 million (98.8%)
Three months ended June 30, 2014: ¥1,564 million (-19.1%)
Profitper share

Diluted profit
per share
Yen
14.00
11.20

Yen
12.91
9.36

Total assets
Million yen
286,704
285,309

Net assets
Million yen
94,57092,743Three months ended June 30, 2015
Three months ended June 30, 2014
(2) Consolidated Financial Position

As of June 30, 2015
As of March 31, 2015(Reference) Shareholders’ equity:

Equity ratio
%
28.8
28.4

Net assets per shareYen
590.86581.46

As of June 30, 2015 ¥82,449 million As of March 31, 2015 ¥81,026 million
2. Dividends
June 30
Yen

September 30
Yen
8.00

−
Fiscal year ended March 31, 2015−
Fiscal year ending March 31, 2016
Fiscal year ending March 31, 2016
9.00
(Forecast)(Note) Change in the estimation of dividend for the fiscal year in this period: None

Annual dividend
December 31
YenMarch 31

Total−Yen
9.00

Yen
17.00

−

9.00

18.00

3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2016 (From April 1, 2015 to March 31, 2016)

First half ending September 30, 2015
Fiscal year ending March 31, 2016

Operating revenue

Operating income

Million yen
216,000
440,000

Million yen
7,300
16,800

%
17.5
10.4

(Note) Change in the forecast made in this period: None%
35.8
23.1

(Percentage figures represent year on year changes)
ProfitOrdinary income
Profitper share
Million yen% Million yen%Yen
6,900 34.5
3,600 17.3
25.81
16,000 20.9
8,700 23.062.39

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: Yes(b) Changes other than in (a): None(c) Changes in accounting estimates: None(d) Retrospective restatement: None
(4) Shares outstanding (Common shares)(a) Shares outstanding (including treasury shares)
As of June 30, 2015

141,927,426 shares

As of March 31, 2015

141,927,426 shares

2,384,645 shares

As of March 31, 2015

2,577,118 shares(b) Treasury shares
As of June 30, 2015(c) Average number of shares (quarterly consolidated cumulative period)
Three months ended June 30, 2015

139,454,050 shares

Three months ended June 30, 2014

125,789,447 shares(Note) Starting with the first quarter of the consolidated fiscal year ended March 31, 2015 (the three months ended June 30, 2014), thenumber of treasury shares at term-end includes Senko shares owned by the employee stock ownership plan (ESOP) trust,
following revisions to accounting principles due to the amendment of accounting standards. (As of June 30, 2015: 1,827,000shares; as of March 31, 2015: 1,954,000 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 the six-month period and the full-term of the fiscal year ending March 31, 2016” on page 3.Index to accompanying materials

1．Results of Operations and Financial Condition ....................................................................................................................................... 2(1) Results of operations ......................................................................................................................................................................... 2(2) Financial condition ............................................................................................................................................................................. 3(3) Forecast for the six-month period and the full-term of the fiscal year ending March 31, 2016 ....................................................... 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 ............................................................................ 43．Consolidated Financial Statements ......................................................................................................................................................... 5(1) Consolidated balance sheets ............................................................................................................................................................ 5(2) Consolidated statements of (comprehensive) income ..................................................................................................................... 7
Consolidated statements of income
For the three months ended June 30, 2014 and 2015 ..................................................................................................................... 7
Consolidated statements of comprehensive income
For the three months ended June 30, 2014 and 2015 ..................................................................................................................... 81

1.

Results of Operations and Financial Condition(1) Results of operations
In the first three-month period of the fiscal year ending March 31, 2016 (April 1, 2015 to June 30, 2015; hereinafter referred to as thefirst quarter of the current fiscal year), depreciation of the yen progressed and stock prices continued to rise. During the period, theJapanese economy continued to recover gradually, supported by the improvement in corporate earnings and the employment
environment and a recovery in capital expenditure. However, consumer spending did not recover fully and industrial production lacked
momentum.
In the logistics industry, cargo volumes grew sluggishly due to a decline in public works and production and sales adjustment in someindustries triggered by weak personal consumption. Furthermore, costs continued to increase due to a rise in outsourcing costs
caused by a shortage of trucks and drivers.
In this environment, the Senko Group established a four-year medium-term business plan that began in the fiscal year ended March
31, 2014 and is based on the slogan “Moving Global.” The plan has three goals: “go beyond logistics,” “make the world go round,” and“revolutionize business.” The Group has been working to achieve growth in the distribution business and commerce and tradebusiness as well as to foster an even greater degree of trust among its customers by building a structure for services with high quality
and outstanding performance in relation to cost.
The following provides an outline of our main activities in the first quarter of the current fiscal year.
In Japan, we started operation of the Sayama PD Center (Sayama City, Saitama Prefecture) in April. The Sayama PD Center, welllocated for accessing the Metropolitan Inter-City Expressway, handles a variety of products, such as everyday items, as a logistics hubthat connects the Tokyo metropolitan area with the Tohoku, Chubu, and Kansai regions, and will start distributing items for a large
sporting goods chain in August. In May, we also started operation of the Narita Fashion Logistics Center I (Tomisato City, ChibaPrefecture), which is located near Narita International Airport. We opened the new logistics center to strengthen our distribution
capabilities for the fashion industry in the Narita area. We have already obtained an outsourcing order for logistics operations from theJapanese subsidiary of a global fashion mail-order company, and plan to also distribute several imported branded goods.
We also saw a steady increase in new transactions with large customers in each region. For example, we started a new business witha sporting goods manufacturer in the Tokyo metropolitan area, a drugstore in the Chubu region, and an operator of home
improvement centers in the Keiji region.
Regarding overseas operations, in China, we launched transportation operations from China to Japan for a Japanese chemical
manufacturer, in addition to domestic trunk line transportation for a Japanese automobile component manufacturer. In Thailand, westarted operation of the Laem Chabang Distribution Center (Chonburi Province), which handles import/export cargo at the country’s
largest harbor, Laem Chabang Port. We also opened a representative office in Hanoi, Vietnam to further expand business in theASEAN region.
To improve profitability, we persuaded our customers to accept revised freight charges based on the higher costs caused by theshortage of trucks and drivers. We also tried to boost the use of our own trucks to upgrade our operation system. As part of our efforts,
we are preparing to open a driving school within the Company where employees can obtain a driver’s license mainly for large and/orhauling vehicles.
In addition, we promoted environment-friendly green logistics. In May, we received the Distribution Environment Load Reduction
Technology Development Award from the Japan Association for Logistics and Transportation’s Logistics for our proposal for modal
shift to railways using our self-developed bulk containers.
The three-month-period performance was as follows.
(Unit: Millions of Yen)
Three months ended
June 30, 2014

Three months ended
June 30, 2015

Operating revenue

89,125

106,370

17,245

19.4

Operating income
Ordinary income
Profit attributable to owners ofparent

2,389
2,320

3,843
3,756

1,453
1,435

60.8
61.9

1,408

1,952

543

38.6

Change%Consolidated operating revenue for the first quarter of the current fiscal year increased 19.4% year on year to ¥106,370 million due toaggressive expansion of sales and the consolidation of Runtec Corporation in October 2014. Profits increased due to a rise inoperating revenue resulting from M&A, our efforts to boost sales, and the revision of freight charges, despite an increase in costs
caused by rising outsourcing costs. As a result, consolidated operating income grew 60.8% to ¥3,843 million, consolidated ordinary
income rose 61.9% to ¥3,756 million, and profit attributable to owners of parent increased 38.6% to ¥1,952 million.

2The three-month-period business segment performance was as follows.
Distribution
Operating revenue increased 22.3% from the previous year to ¥74,306 million. This was mainly due to the consolidation of Runtec
Corporation, contributions from distribution services we started providing under the contracts from a major beverage manufacturer
and a large gas sales company in the previous year, and our active efforts to expand sales.
Trading & commerceOperating revenue increased 13.6% year on year to ¥31,093 million. This was mainly due to a recovery in sales following the slump
caused by the consumption tax hike and our active efforts to expand sales.
OthersIn this segment, operating revenue decreased 1.2% year on year to ¥970 million.

(2) Financial condition
1) Assets, liabilities and net assets
Total assets
Total assets at the end of the first quarter of the current fiscal year were ¥286,704 million, ¥1,394 million higher than at the end of theprevious fiscal year. Current assets amounted to ¥94,035 million, down ¥4,212 million from the end of the previous fiscal year. Thiswas due to decreases in cash and deposits of ¥3,853 million and notes and operating accounts receivable of ¥1,149 million, despite
an increase in merchandise and finished goods of ¥920 million. Noncurrent assets totaled ¥192,669 million, up ¥5,607 million from theend of the previous fiscal year. This was due to increases in property, plant and equipment of ¥3,198 million, intangible assets of ¥340
million, and investments and other assets of ¥2,068 million.

Liabilities
Liabilities at the end of the first quarter of the current fiscal year decreased ¥431 million from the end of the previous fiscal year to¥192,134 million. Current liabilities amounted to ¥93,193 million, up ¥639 million from the end of the previous fiscal year. This was due
to decreases in income taxes payable of ¥2,450 million and provision for bonuses of 827 million despite an increase in short-termloans payable of ¥5,242 million. Noncurrent liabilities totaled ¥98,940 million, down ¥1,071 million from the end of the previous fiscalyear. This was due to decreases in long-term loans payable of ¥470 million and asset retirement obligations of ¥63 million.

Net assets
Net assets at the end of the first quarter of the current fiscal year rose ¥1,826 million from the end of the previous fiscal year to¥94,570 million, reflecting increases of ¥680 million in retained earnings, ¥599 million in valuation difference on available-for-salesecurities, and ¥403 million in non-controlling interests. The equity ratio increased by 0.4 percentage points to 28.8% from the end of
the previous fiscal year.
(3) Forecast for the six-month period and the full-term of the fiscal year ending March 31, 2016
The Japanese economy is expected to continue recovering gradually, supported by a pickup in consumer spending and an increase incapital expenditure by enterprises amid the continuing improvement in the employment and income environment.
In the logistics industry, consumer-related and production-related cargo volumes are expected to recover, but total transport volumes
look to remain unchanged from the previous fiscal year, since construction-related cargo volumes are forecast to decline due to a fallin public spending.
In this environment, the Senko Group will continue trying to improve its profitability, enhance its competitiveness, and upgrade its
operating system.
There is no revision to the forecast of operating results for the six-month period and the full-term of the fiscal year ending March 31,
2016 announced on May 7, 2015.

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 principles(Application of Accounting Standard for Business Combinations, etc.)
Starting with the first quarter of the current fiscal year, Senko has applied the “Revised Accounting Standard for BusinessCombinations” (ASBJ Statement No. 21, September 13, 2013; hereinafter referred to as “Business Combinations AccountingStandards”), the “Revised Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22, September 13,
2013; hereinafter referred to as “Consolidation Accounting Standard”) and the “Revised Accounting Standard for Business
Divestitures” (ASBJ Statement No. 7, September 13, 2013; hereinafter referred to as “Business Divestitures Accounting Standard”).
Accordingly, the accounting method was changed to record the difference arising from changes in the equity in subsidiaries underongoing control of the Company as capital surplus, and record acquisition-related costs as expenses for the fiscal year in which theyoccur. In addition, with respect to any business combination entered into on or after the first day of the first quarter of the current fiscal
year, the accounting method was changed to reflect adjustments to the allocation of acquisition cost under provisional accounting
treatment on the consolidated financial statements of the quarterly financial period in which the relevant business combinations
became or will become effective. Furthermore, the presentation of quarterly net income, etc., was changed and the presentation ofminority interests was altered to non-controlling interests. To reflect the changes in the presentation, certain reclassifications havebeen made to the consolidated financial statements with respect to both the first quarter of the previous fiscal year and the previous
fiscal year.
Senko has applied the Business Combinations Accounting Standards, etc., in accordance with transitional provisions in paragraph58-2(4) of the Business Combinations Accounting Standards, paragraph 44-5(4) of the Consolidation Accounting Standard andparagraph 57-4(4) of the Business Divestitures Accounting Standard, prospectively at the beginning of the first quarter of the current
fiscal year.
The above change had only a negligible effect on ordinary income and income before income taxes for the first quarter of the current
fiscal year, and capital surplus at the end of the first quarter of the current fiscal year.

43. Consolidated Financial Statements(1) Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2015

As of June 30, 2015

AssetsCurrent assets
Cash and deposits

25,685

21,831

Notes and accounts receivable

56,60255,452Merchandise and finished goods

6,480

7,400

Real estate for sale

33

Work in process

191

261

Raw materials and supplies

437

408

8,890

8,699

(42)

(23)

98,24894,035

Buildings and structures (net)68,43571,291Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Land

66,22966,299Other (net)

15,146

15,418

Total property, plant and equipment

149,811

153,009

Intangible assets
Goodwill

4,311

4,241

Other

3,395

3,806

Total intangible assets

7,706

8,047

Investments and other assets
Guarantee deposits

10,39010,491

Deferred tax assets

2,734

2,577

Other

17,15919,290Allowance for doubtful accounts

(741)

(748)

Total investments and other assets

29,54331,612

187,061

192,669

285,309286,704

Total noncurrent assets
Total assets

5

(Unit: Millions of Yen)
As of March 31, 2015

As of June 30, 2015

Liabilities
Current liabilities
Notes and operating accounts payable−trade

37,98938,109Current portion of bonds

20

20

Short-term loans payable

29,23534,478

Income taxes payable

3,415

964

Provision for bonuses

3,905

3,077

189

58

Other

17,79816,485

Total current liabilities

92,554

93,193

Bonds payable

12,00012,000Convertible bond-type bonds with subscription rights to shares

6,868

6,867

Long-term loans payable

61,971

61,500369

356Provision for directors’ bonuses

Noncurrent liabilitiesProvision for directors’ retirement benefits
Net defined benefit liability

9,381

9,360

Provision for special repairs

3337

Asset retirement obligations

575

511

8,811

8,305

100,011

98,940

192,565

192,134

Capital stock

23,09823,098

Capital surplus

21,914

21,917Retained earnings

36,67637,357

Treasury shares(1,183)(1,122)

Total shareholders’ equity

80,506

81,251

1,819

2,419

(4)

24

Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares

543

537

(1,839)(1,783)

519

1,198

288

288

Non-controlling interests

11,428

11,832

Total net assets

92,743

94,570285,309286,704

Liabilities and net assets

6

(2) Consolidated statements of (comprehensive) income(Consolidated statements of income)(For the three months ended June 30, 2014 and 2015)(Unit: Millions of Yen)
Three months endedJune 30, 2014

Three months ended
June 30, 2015

(April 1, 2014–June 30, 2014)(April 1, 2015–June 30, 2015)

Operating revenue

89,125

106,370

Operating cost

80,057

95,013Operating gross profit

9,067

11,357

Selling, general and administrative expenses

6,678

7,514

Operating income

2,389

3,843

Interest income

4645

Dividend income

83

70

Other

194

237

Total non-operating income

325

352

Interest expenses

292

294

Other

101

144

Total non-operating expenses

394

438

2,320

3,756

Litigation settlement98−

Total extraordinary losses

98−

Income before income taxes

2,2223,756

Income taxes−current

171

760

Income taxes−deferred657

603

Total income taxes

829

1,363

1,393

2,393

(14)

440

1,408

1,952

Non-operating income

Non-operating expenses

Ordinary income
Extraordinary losses

ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent7

(Consolidated statements of comprehensive income)(For the three months ended June 30, 2014 and 2015)(Unit: Millions of Yen)

ProfitThree months ended
June 30, 2014

Three months ended
June 30, 2015

(April 1, 2014–June 30, 2014)(April 1, 2015–June 30, 2015)

1,393

2,393

Valuation difference on available-for-sale securities

210

637

Deferred gains or losses on hedges

(33)

27

Foreign currency translation adjustment

(95)

(5)

Remeasurements of defined benefit plans, net of tax

89

58

Total other comprehensive income

170

717

1,564

3,110

1,594

2,630

(29)

479

Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests8