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

SENKO Group Holdings Co., Ltd.

Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending March 31, 2023
[Japan GAAP]
Name of Listed Company:
Code Number:
Representative:
Inquiries:

November 14, 2022

SENKO Group Holdings Co., Ltd.
Stock Listed on: Tokyo Stock Exchange
9069
URL https://www.senkogrouphd.co.jp/en/
Title: President and Representative Director
Name: Yasuhisa Fukuda
Title: Executive Officer, Responsible for PR & IR
Name: Satoru Kokubo
Tel. (03) 6862-8842

Scheduled Date of Issue of Quarterly Financial Report: November 14, 2022
Quarterly Supplemental Information Materials:
Yes
Quarterly Information Meeting:Yes (for analysts)

Scheduled Date of Dividend Paid: December 5, 2022

(Amounts less than ¥1 million have been rounded down)
1. Consolidated Operating Results for the Six Months Ended September 30, 2022
(1) Consolidated Operating Results (Cumulative)
Operating revenue
Six months ended September 30, 2022
Six months ended September 30, 2021
(Note) Comprehensive income

Million yen
334,804
300,762

%
11.3
10.0

(Percentage figures represent year-on-year changes)
Profit attributable toOperating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
13,046
11.5
13,381
11.8
7,983
14.8
11,705
21.4
11,964
22.5
6,955
21.5

Six months ended September 30, 2022: ¥12,086 million (54.8%)
Profitper share
Six months ended September 30, 2022
Six months ended September 30, 2021

Six months ended September 30, 2021: ¥7,807 million (26.6%)
Diluted profit
per share

Yen
53.57
47.20

Yen
47.43
39.20

(2) Consolidated Financial Position
Total assets
Million yen
513,024
480,818

As of September 30, 2022
As of March 31, 2022
(Reference) Equity:

As of September 30, 2022: ¥155,259 million

Net assets
Million yen
170,256
160,854

Equity ratio

%
30.3
30.5

Net assets per shareYen
1,041.29
985.67

As of March 31, 2022: ¥146,817 million(Note) During the second quarter ended September 30, 2022, the Company finalized the provisional accounting treatment for businesscombinations. As a result, figures for the fiscal year ended March 31, 2022 reflect the finalization of the provisional accounting treatment.
2. Dividends
June 30

Yen––

September 30
Yen
17.00
17.00

Fiscal year ended March 31, 2022
Fiscal year ending March 31, 2023
Fiscal year ending March 31, 2023
(Forecast)(Note) Change in the estimation of dividend for the fiscal year in this period: None

Annual dividend
December 31
Yen––March 31

Yen
17.00

17.00

Total

Yen
34.00
34.00

3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2023 (From April 1, 2022 to March 31, 2023)
Operating revenue

Operating profit

Million yen
700,000

Million yen
26,700%
12.3

Fiscal year ending March 31, 2023
(Note) Change in the forecast made in this period: None%
7.8

(Percentage figures represent year-on-year changes)
Profit attributable toProfitOrdinary profit
owners of parent
per share
Million yen% Million yen%
Yen
27,0003.4
16,0005.0
107.37

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: None(d) Retrospective restatement: None
(4) Shares outstanding (Common shares)(a) Shares outstanding (including treasury shares)
As of September 30, 2022:

157,070,496 shares

As of March 31, 2022:

157,070,496 shares

7,967,692 shares

As of March 31, 2022:

8,117,957 shares(b) Treasury shares
As of September 30, 2022:(c) Average number of shares (Cumulative)
Six months ended September 30, 2022: 149,011,419 shares

Six months ended September 30, 2021:

147,371,289 shares(Note) Starting with the third quarter of the fiscal year ended March 31, 2018, the number of treasury shares at term-end includes Senko
shares owned by the trust accounts of Performance-linked Stock Compensation Plan for Employees (as of September 30, 2022:
335,679 shares; as of March 31, 2022: 338,276 shares) and Performance-linked Stock Compensation Plan for Directors (as of
September 30, 2022: 328,221 shares; as of March 31, 2022: 338,607 shares).
Quarterly financial results reports are exempt from quarterly reviews conducted by certified public accountants or an audit corporation.
Cautionary statement regarding forecasts of operating results and special notes
 Forward-looking statements in these materials are based on information available to management at the time this report was prepared andassumptions that management believes are reasonable. Actual results may differ significantly from these statements for a number ofreasons. For information about the assumptions used for forecasts and precautions concerning the use of forecasts, please see “Forecast
for the full-term of the fiscal year ending March 31, 2023” on page 3.
 The supplementary material on quarterly earnings will be available on the Company’s website.

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 full-term of the fiscal year ending March 31, 2023................................................................................................... 3
2. Consolidated Financial Statements ............................................................................................................................................................. 4(1) Consolidated balance sheets .............................................................................................................................................................. 4(2) Consolidated statements of (comprehensive) income ....................................................................................................................... 6
Consolidated statements of income
For the six months ended September 30, 2021 and 2022 ............................................................................................................. 6
Consolidated statements of comprehensive income
For the six months ended September 30, 2021 and 2022 ............................................................................................................. 7(3) Consolidated statements of cash flows .............................................................................................................................................. 81

1.

Results of Operations and Financial Condition(1) Results of operations
In the six-month period of the fiscal year ending March 31, 2023 (April 1, 2022 to September 30, 2022), amid an economic environment
in which measures to stem the spread of COVID-19 have been relaxing and economic and social activities are normalizing, there aresigns of economic recovery. However, the outlook at present continues to be unclear, with the resurgence of COVID-19 from July
onwards, the protraction of the Ukraine situation, and monetary tightening occurring on a global scale.
The six-month-period performance was as follows.
(Unit: Millions of Yen)

Operating revenue
Operating profit
Ordinary profit
Profit attributable to owners ofparentSix months ended
September 30, 2021
300,762

Six months ended
September 30, 2022
334,804

11,705
11,964
6,955

Change%34,041

11.3

13,046
13,381

1,341
1,416

11.5
11.8

7,983

1,027

14.8

Despite facing rising electricity tariffs, fuel prices, and purchase prices, along with dwindling demand for COVID-19 related products, as
economic and social activities have been normalizing, we are seeing an accompanying recovery in demand, and owing to group-wide
efforts to expand sales and revise tariffs and prices, along with the effect of promoting M&A, the Group achieved year-on-year increases
in operating revenue, operating profit, ordinary profit and profit attributable to owners of parent.
The six-month-period operating revenue by segment was as follows.
Note that effective from the first quarter ended June 30, 2022, a newly changed classification and aggregation method for reportablesegments has been applied, and the data used for comparison and analysis of the six months ended September 30, 2022 is based on
the newly changed classification.
Logistics(Unit: Millions of Yen)

Operating revenue
Segment income

Six months ended
September 30, 2021
212,569

Six months ended
September 30, 2022
236,591

11,115

12,387

Change%24,021

11.3

1,271

11.4

Amid an apparent recovery in cargo volumes, resulting from the normalizing economic and social activities, despite rising electricity
tariffs and fuel prices, we strived to expand sales and revise pricing while reaping the contribution of revenue from M&A. As a result,operating revenue increased ¥24,021 million year on year to ¥236,591 million, and segment income rose ¥1,271 million year on year to¥12,387 million.
Trading & commerce(Unit: Millions of Yen)

Operating revenue
Segment income

Six months ended
September 30, 2021
71,621

Six months ended
September 30, 2022
77,326

1,116

1,020

Change

%
5,705

8.0

(95)

(8.5)

In addition to the contribution from revenue from household paper wholesale distributor Cartas Co., Ltd., which was made a consolidated
subsidiary in the previous fiscal year, we worked on revising prices and expanding sales, as well as improving cost efficiency among
other initiatives. However, as a result of decreased demand for packaging used for takeaways and deliveries, and rising purchase prices,among other factors, operating revenue increased by ¥5,705 million year on year to ¥77,326 million and segment income fell ¥95 million
year on year to ¥1,020 million.
Life Support(Unit: Millions of Yen)

Operating revenue
Segment loss

Six months ended
September 30, 2021
12,953Six months ended
September 30, 2022
16,058(523)(6)

Change

%
3,105

24.0

517

–

As people’s everyday lives have been normalizing, the segment saw a recovery in the number of users and the number of customers
visiting stores, new stores were opened, and M&A we conducted in the previous fiscal year also contributed to revenue. As a result,operating revenue increased ¥3,105 million year on year to ¥16,058 million, and segment loss was ¥6 million after an improvement of¥517 million year on year.

2

Business Support(Unit: Millions of Yen)

Operating revenue
Segment income

Six months ended
September 30, 2021
3,614

Six months ended
September 30, 2022
4,824

447

460

Change

%
1,210

33.5

13

2.9

The segment strived to expand sales and improve cost efficiency while reaping the contribution of revenue from M&A. As a result,operating revenue increased ¥1,210 million year on year to ¥4,824 million, and segment income rose ¥13 million year on year to ¥460
million.
(2) Financial condition
1) Assets, liabilities and net assets
Total assets
Total assets as of September 30, 2022 were ¥513,024 million, ¥32,206 million higher than at the end of the previous fiscal year.
Current assets amounted to ¥187,374 million, up ¥16,341 million from the end of the previous fiscal year. This was mainly due to anincrease of ¥21,298 million in cash and deposits despite a decrease of ¥5,483 million in trade notes and accounts receivable, andcontract assets.
Non-current assets totaled ¥325,649 million, up ¥15,864 million from the end of the previous fiscal year. This was primarily due toincreases of ¥10,949 million in property, plant and equipment, ¥912 million in intangible assets, and ¥4,002 million in investments andother assets.
Liabilities
Liabilities as of September 30, 2022 increased ¥22,804 million from the end of the previous fiscal year to ¥342,767 million.
Current liabilities totaled ¥121,133 million, down ¥16,513 million from the end of the previous fiscal year. This was mainly due todecreases of ¥3,814 million in trade notes and accounts payable and ¥13,055 million in short-term borrowings.
Non-current liabilities totaled ¥221,634 million, up ¥39,317 million from the end of the previous fiscal year. This was mainly due toincreases of ¥37,245 million in long-term borrowings, ¥982 million in asset retirement obligations, and ¥914 million in deferred tax
liabilities.
Net assets
Net assets as of September 30, 2022 rose ¥9,401 million from the end of the previous fiscal year to ¥170,256 million. This was primarily
due to increases of ¥5,437 million in retained earnings and ¥2,882 million in foreign currency translation adjustment. The equity ratio asof September 30, 2022 decreased by 0.2 percentage points to 30.3% from the end of the previous fiscal year.
2) Cash flows
Cash and cash equivalents as of September 30, 2022 increased by ¥21,664 million from the end of the previous fiscal year to ¥63,858
million.
Net cash provided by operating activities amounted to ¥21,246 million. This was mainly due to a decrease in funds due to increase ininventories of ¥1,009 million, and a decrease in funds due to decrease in accrued liabilities of ¥4,327 million, and income taxes paid of¥5,071 million, despite profit before income taxes of ¥13,418 million, depreciation of ¥10,726 million, and increased funds due todecrease in trade receivables and contract assets of ¥7,024 million.
Net cash used in investing activities totaled ¥17,841 million. This was mainly due to purchase of property, plant and equipment of¥13,802 million and purchase of shares of subsidiaries resulting in change in scope of consolidation of ¥4,050 million.
Net cash provided by financing activities totaled ¥17,271 million. This was mainly due to proceeds from long-term borrowings of ¥42,647
million, despite net decrease in short-term borrowings of ¥16,327 million, repayments of long-term borrowings of ¥3,192 million,
repayments of finance lease obligations of ¥3,034 million, and dividends paid of ¥2,540 million.
(3) Forecast for the full-term of the fiscal year ending March 31, 2023
No revisions have been made to the forecast of consolidated operating results for the fiscal year ending March 31, 2023, announced in“Summary of Financial Statements for the Fiscal Year Ended March 31, 2022” on May 13, 2022.

3

2.

Consolidated Financial Statements(1) Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2022

As of September 30, 2022

AssetsCurrent assets
Cash and deposits

45,093

66,391

Trade notes and accounts receivable, and contract
assets

91,89386,410Electronically recorded monetary claims - operating

3,543

3,869

Merchandise and finished goods

14,183

14,865Work in process

95

75

Raw materials and supplies

845

1,227

15,411

14,600(34)(66)

171,033

187,374

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

91,096

94,021

Land

90,31392,871Other, net

50,22955,695

Total property, plant and equipment

231,639

242,588

Goodwill

12,10412,087

Other

11,94912,878

Total intangible assets

24,05424,966

17,957

18,293Long-term loans receivable

279

236

Retirement benefit asset

7,703

8,134

Guarantee deposits

14,388

16,696

Deferred tax assets

5,115

5,143

Other

9,066

10,161

Allowance for doubtful accounts

(418)

(571)

Total investments and other assets

54,09158,093309,784

325,649

Business commencement expenses

00

Total deferred assets

00480,818

513,024

Intangible assets

Investments and other assets
Investment securities

Total non-current assets
Deferred assets

Total assets

4

(Unit: Millions of Yen)
As of March 31, 2022

As of September 30, 2022

Liabilities
Current liabilities
Trade notes and accounts payable

50,67546,860Electronically recorded obligations - operating

9,076

9,623

24

–

Short-term borrowings

36,33523,280

Lease obligations

4,632

5,334

Income taxes payable

5,052

4,424

Provision for bonuses

6,585

7,349

427

211

Current portion of bonds payable

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

416

292

Other

24,42023,757

Total current liabilities

137,646

121,133

Bonds payable

40,00040,000Convertible-bond-type bonds with share acquisitionrights

22,08122,067Long-term borrowings

86,746

123,991

Lease obligations

15,97016,318Provision for retirement benefits for directors (andother officers)

573

560

Provision for special repairs

196

257

Non-current liabilities

Provision for share awards

336

330

Retirement benefit liability

7,050

6,893

Asset retirement obligations

950

1,933

Deferred tax liabilities

5,120

6,035

Other

3,291

3,246

182,317

221,634

319,963342,767

Share capital

28,47928,479

Capital surplus

31,54531,447Retained earnings

91,737

97,174

Treasury shares(8,159)(8,005)

Total shareholders’ equity

143,602

149,096

1,472

1,572

Deferred gains or losses on hedges

70

121

Foreign currency translation adjustment

755

3,637

Remeasurements of defined benefit plans

916

831

3,215

6,163

Share acquisition rights

388

366

Non-controlling interests

13,648

14,629Total net assets

160,854

170,256

480,818

513,024

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

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

Total accumulated other comprehensive income

Total liabilities and net assets5(2) Consolidated statements of (comprehensive) income(Consolidated statements of income)(For the six months ended September 30, 2021 and 2022)(Unit: Millions of Yen)
Six months ended
September 30, 2021
(April 1, 2021 – September 30, 2021)

Six months ended
September 30, 2022
(April 1, 2022 – September 30, 2022)

Operating revenue

300,762

334,804

Operating costs

259,440

285,927

Operating gross profit

41,321

48,876

Selling, general and administrative expenses

29,61635,829Operating profit

11,705

13,046

Interest income

61

49

Dividend income

99

120

Foreign exchange gains

–

257

Other

1,136

1,251

Total non-operating income

1,298

1,679

Interest expenses

601

723

Other

437

621

1,039

1,344

11,964

13,381Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Subsidy income

248

206

Gain on sale of non-current assets

52

120

Gain on bargain purchase–92

Total extraordinary income

300

419

243

206

Loss on office withdrawal–

112

Loss on retirement of non-current assets

83

64

Loss on COVID-19 impact

243

–

8

–

579

382

Profit before income taxes

11,685

13,418

Income taxes - current

3,972

4,437

Income taxes - deferred

337

460

Total income taxes

4,310

4,898

Profit

7,374

8,520

419

536

6,955

7,983

Extraordinary losses
Loss on tax purpose reduction entry of non-current
assetsLoss on disaster
Total extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

6

(Consolidated statements of comprehensive income)(For the six months ended September 30, 2021 and 2022)(Unit: Millions of Yen)
Six months ended
September 30, 2021
(April 1, 2021 – September 30, 2021)

Six months ended
September 30, 2022
(April 1, 2022 – September 30, 2022)

7,374

8,520

Valuation difference on available-for-sale securities

119

99

Deferred gains or losses on hedges

(46)

63

Foreign currency translation adjustment

292

2,858

Remeasurements of defined benefit plans, net of tax

67

(85)

Share of other comprehensive income of entities
accounted for using equity method

–

630

432

3,566

7,807

12,086

7,353

10,931453

1,155ProfitOther comprehensive income

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests7(3) Consolidated statements of cash flows(Unit: Millions of Yen)
Six months ended
September 30, 2021
(April 1, 2021 – September 30, 2021)

Six months ended
September 30, 2022
(April 1, 2022 – September 30, 2022)

Cash flows from operating activities
Profit before income taxes

11,685

13,418Depreciation

9,337

10,726

Amortization of goodwill

493

646

Increase (decrease) in allowance for doubtful
accounts(3)

169

Decrease (increase) in retirement benefit asset

(322)

(430)

Increase (decrease) in retirement benefit liability

(125)

(242)

Increase (decrease) in provision for bonuses

488

638

Increase (decrease) in provision for share awards

(1)

(5)

Increase (decrease) in provision for loss on disaster

(46)

(124)

Interest and dividend income

(161)

(170)

Foreign exchange losses (gains)

73

(257)

Interest expenses

601

723

Loss (gain) on sale of non-current assets

(35)

(114)

Loss on tax purpose reduction entry of non-current
assets243

206

Subsidy income

(248)

(206)

Gain on bargain purchase

–

(92)

Loss on retirement of non-current assets

83

64

Loss on office withdrawal–

112

Decrease (increase) in trade receivables andcontract assets

(83)

7,024

Decrease (increase) in inventories

354(1,009)

Increase (decrease) in accrued liabilities(2,583)(4,327)

Increase (decrease) in accrued consumption taxes(2,333)(8)

Decrease (increase) in consumption taxes refund
receivable

1,389

1,618

Other

(1,093)(1,663)

Subtotal

17,711

26,694

Subsidies received

248

206

Interest and dividends received

200

140

Interest paid

(594)

(723)

Income taxes paid

(5,394)(5,071)

Net cash provided by (used in) operating activities

12,17021,246

Payments into time deposits(934)(1,419)Proceeds from withdrawal of time deposits

965

1,942

Purchase of property, plant and equipment(15,913)(13,802)

Cash flows from investing activities

Proceeds from sale of property, plant and equipment

171

464

Payments of guarantee deposits(618)(1,277)(5,174)(4,050)

(344)

303

(21,849)(17,841)

Purchase of shares of subsidiaries resulting inchange in scope of consolidation
Other
Net cash provided by (used in) investing activities

8Six months ended
September 30, 2021
(April 1, 2021 – September 30, 2021)

Six months ended
September 30, 2022
(April 1, 2022 – September 30, 2022)(1,797)(16,327)

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

10,67742,647

Repayments of long-term borrowings(1,858)(3,192)

Repayments of finance lease obligations(2,473)(3,034)

Proceeds from issuance of bonds

10,000

–

(24)

(24)

Purchase of treasury shares(3,630)(0)

Dividends paid

(2,228)(2,540)

Dividends paid to non-controlling interests

(147)

(236)

Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation

(244)

(11)

Other

(12)

(8)

8,259

17,271

174

987

Net increase (decrease) in cash and cash equivalents(1,245)

21,664

Cash and cash equivalents at beginning of period

50,371

42,193

Cash and cash equivalents at end of period

49,12663,858

Redemption of bonds

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents

9