Profile
Seino Holdings Co., Ltd. (“the Company”) began
business as a trucking company in 1930 and wasincorporated in 1946. Based in the city of Ogaki, Gifu
Prefecture, we are a leading trucking company, expanding instep with the growth of the Japanese economy and thedevelopment of the nation’s extensive expressway network.
On October 1, 2005, the Company transferred its
transportation business and other operations to a newcompany—which has taken the original name Seino
Transportation Co., Ltd.—and was renamed Seino Holdings
Co., Ltd., adopting a pure holding company structure.
The Seino Group currently consists of the pure holding
company Seino Holdings, 59 consolidated subsidiaries and 14
affiliates engaged in transportation services, vehicle sales,
merchandise sales, leasing for real estate services and otherservices.
In its mainstay Transportation Services business, theCompany has taken steps to build even more convenientlogistics systems, all the while adhering to its “customer-first”
principle. As of March 31, 2013, Seino offers efficienttransportation services throughout Japan via its 643 domestic
terminals, a fleet of 23,811 trucks and a trucking network that
averages 4,000 routes daily. Overseas, Seino has transferred its
international forwarding operations to Schenker-Seino Co.,
Ltd., a joint venture established with Schenker AG in Germany.
Through this alliance, the Company aims to bolster its
competitiveness by optimizing the synergies of Seino’s domestictransportation network and Schenker’s global network andcutting-edge IT systems.
The Seino Group is committed
to providing rapid services thatdeliver total customer satisfaction
and will proceed down the “Roadto Success” to become a highly
profitable company throughinitiatives to develop a progressive
business model that will become
the standard for next-generationtransportation business.

Forward-looking Statements:
In this annual report, statements other than historicalfacts are forward-looking statements that reflect theplans and expectations of the Company. These
forward-looking statements involve risks, uncertainties
and other factors that may cause the Company’s
actual results and achievements to differ materiallyfrom those anticipated in these statements.

Contents
Financial Highlights

1

To Our Shareholders, Customers and Friends

2

Special Feature

4

Review of Operations

6

Financial Review

8Six-year Summary

9

Consolidated Balance Sheets

10

Consolidated Statements of Income

11

Consolidated Statements of Comprehensive Income 12
Consolidated Statements of Changes in Net Assets 12
Consolidated Statements of Cash Flows13

Notes to Consolidated Financial Statements

14

Report of Independent Auditors

24

Seino Group

25

Board of Directors(As of June 26, 2013)
Chairman andChief Executive Officer

Yoshikazu Taguchi

President andChief Operating Officer

Yoshitaka Taguchi

Directors

Takao Taguchi
Shizutoshi Otsuka
Hidemi Maruta
Harumi Furuhashi

Outside Directors

Yuji Tanahashi
Kenjiro Ueno

Standing Statutory Auditors

Takahiko Kumamoto
Shingo Terada

Outside Statutory Auditors

Fumio Kato
Eiji Kasamatsu

SEINO HOLDINGS CO., LTD.

Financial Highlights(Billions of Yen)

For the Years Ended March 31, 2013, 2012 and 2011
Thousands of
U.S. Dollars (Note)

Millions of Yen
2013

CONSOLIDATED BASIS:
Operating revenue
Operating income
Income before income taxes
Net income
Net income per share

2012

2011

2013

¥ 516,185 ¥ 504,277 ¥ 497,612
13,867
12,326
14,346
18,514
13,136
17,574
12,542
8,449
12,151
63.02
42.44
61.05

$ 5,491,330
152,617
186,957
129,266
0.65

Millions of Yen

Thousands of
U.S. Dollars (Note)2013

CONSOLIDATED BASIS:
Cash and cash equivalents, and short-term investments ¥ 54,055
Property and equipment, net of accumulated depreciation
270,367
Total assets
510,467
Long-term debt and other long-term liabilities
71,594
Net assets
331,702
Net assets per share
1,625.30

2012

2011

2013

¥ 57,595
274,475
500,963
74,094
318,650
1,561.32¥ 55,889
276,545487,701
82,281
307,806
1,508.40$ 575,053
2,876,245
5,430,500
761,638
3,528,745
17.29

2011

2013

2013

2012

2013

2012

2013

Net income(Billions of Yen)

20
15
10
5
0

(Note) U.S. dollar amounts are translated at ¥94 = U.S. $1, only for the convenience of readers.

2011(Billions of Yen)

Corporate Data
(As of March 31, 2013)

Company Name
Head Office
Date of Establishment
Paid-in Capital
Number of Shares Issued
Stock Listings
Transfer Agent
Independent Auditors

2011

Seino Holdings Co., Ltd.
1, Taguchi-cho, Ogaki, Gifu 503-8501, Japan
Tel: 81-584-82-3881 Fax: 81-584-82-5040
November 1, 1946
¥42,482 million
207,679,783
The First Section of Tokyo Stock Exchange (code 9076)
The First Section of Nagoya Stock Exchange (code 9076)
Mitsubishi UFJ Trust and Banking Corporation
KPMG AZSA LLC

1

Message from the Management

To Our Shareholders, Customers and Friends
We would like to take this opportunity to express our appreciation to our stakeholders, including shareholders
and other investors, for the consistent support you have shown us over the years. The results for the fiscal year
ended March 31, 2013 (April 1, 2012 to March 31, 2013) are presented herein.

Business Environment
In this fiscal year under review, although Japan’s economy began
to show signs of modest recovery due to the reconstruction demandassociated with the Great East Japan Earthquake, factors such as thecontinuously declining financial stability of EU countries, thedeceleration of emerging nations’ economies, the effects of the strong
yen and so on, have given rise to a situation where the future remains
uncertain. In addition, there are signs of economic vitalization due tothe change in political administration at the end of last year, which
has had favorable effects on currency and financial markets, however
this is yet to ripple down to the real economy.
Even in the transportation industry, which is the core business of
the Seino Group, despite slight recovery in the volume of freight
being transported due to restoration of production capabilities andthe rebound after the low standard of the previous year brought about
by the tsunami and earthquake disaster, etc., the level remains low,
and on top of the intensifying competition between industry players,
the burden of high fuel prices is heavy to bear and we have endured

Initiatives and Results for the Fiscal Year
Under Review
Amidst such a business environment, the Seino Group has
continued to steadily implement each policy of our medium-term
management plan, now in its second year, entitled “Challenging
towards Change”. At the same time as aiming to achieve numericaltargets, we also exerted efforts to consolidate the strengths of eachgroup company and offer our customers that “extra special luxury”.
In our transportation business, in order to further strengthen ourcompetitiveness in Kyushu, following on from the integration of
Seino Transportation Kyushu and Kyushu Seino Transportation
Company of the previous fiscal year, on April 1, 2012, Kyushu Seino
Transportation and Kyushu Seibu Transportation were integrated.
Th is is the final move which completes the integration of our
Kyushu network, and we have successfully further improved
transportation quality and customer service in addition to
streamlining redundant elements.
Similarly, on April 1, 2012, Seino Express absorbed Seno
Logistics with the goal of streamlining personnel, vehicles,
equipment and so on. Also, on January 15, 2013, the Seino Groupacquired all the shares of Asahi Conpou (Sumida, Tokyo), which has
a strong performance record with government agencies, making it
our 59th subsidiary. Th is move means that packaging and sealing
work which had been outsourced until now, is internalized, which
will also lead to better efficiency and allow for a multi-layered
operations structure.
2

through a rough period.
Elsewhere, on March 12, 2013, Seino Group entered a businessalliance with Fukuyama Transporting Co., Ltd. (Fukuyama,
Hiroshima) as part of the “Mutual Cooperation Treaty in the case of
Large-Scale Disasters”.
Regarding vehicle sales, in order to strengthen our maintenanceplant network in the Kanto region and contribute to theinternalization of maintenance operations, Tokyo Sharyo (Iruma,
Saitama) was made a subsidiary of Seino Group as of April 1, 2012.
By placing the selection and concentration of operational
resources foremost in this way, we have engaged in a united effort toimprove corporate value while achieving optimization of the groupoverall.
Consequently, we have achieved the following results for thefinancial year under review.
An operating revenue of 516,184 million yen (up 2.4% year-onyear), an operating income of 14, 346 million yen (up 3.5% year-onyear), ordinary profit of 19,461 million yen (down 1.4% year-on-year)
and net income was 12,150 million yen (down 3.1% year-on-year).

Future Outlook
The outlook for Japan’s economy is that, despite the heightened
mentality regarding economic recovery backed by the effects of an
improved export environment, proactive economy rehabilitation
policies and bold financial policies, there are still many problems
such as unstable, uncertain foreign economies, geopolitical risk, thedefining of new economic growth strategies promoted as government
measures and so on, and it is thought it will take time until the real
economy is back on a steady, stable course.
In our core business of transportation, there is still the trend of ashrinking market and the strengthening of social regulations such asenvironmental restrictions and the prolonged high fuel prices, etc.,
are causing significant strain on management. Meanwhile, issues
such as a shortage of drivers and an aging population across theindustry on the whole are beginning to surface, and we believe thatthe harsh business environment will continue.
Amidst this climate, this year, the final year of our medium-term
management plan entitled “Challenging towards Change”, in
addition to delivering precise instruction so that each group company
may achieve their individual directives with certainty, we also intend
to exert efforts in the selection and concentration of management
resources in order to earnestly drive expansion and development ofour businesses.
In the transportation business, while continuing to remain
focused on securing the planned profit, we will also engage inactivities with the reorganization of our subsidiaries in our sight, aspart of an effort to strengthen competitiveness of our group evenfurther and establish a profitable framework.
Also, regarding the business alliance with Fukuyama
Transporting Co., Ltd., we will do our best to expand the scope of
this alliance to achieve more real results, contribute to the local
community and improve the corporate value of both companies.
In regards to passenger vehicle sales, as a part of promoting sales
which do not primarily focus on new vehicle sales but also include
strengthening our service framework for business expansion andpromotion of used parts, the Seino Group will introduce a vehicle
inspection reservation management system to achieve appropriate
work management and time reduction.
In our truck sales business, we will focus on further strengthening
our maintenance plant network in the Kanto region in order toincrease profitability of our vehicle maintenance business.
Amidst a rapidly evolving, dynamic business environment, inorder to crystallize the strengths of our 59 group companies andachieve solid results, Seino will adhere to our company slogan of“Execution”, and ensure various measures are boldly implemented
based on self-motivated action.

Corporate GovernanceSeino employs a corporate auditor system. As of March 31, 2013,
the Board of Directors consisted of 8 directors, including 2 outside
directors. In addition to making swift and appropriate decisions onsuch important matters as business restructuring and strategic
investments, the Board of Directors is strengthening auditing
functions and achieving greater management transparency.
The Company also has 4 corporate auditors, including 2 outside
auditors. Auditors are committed to improving compliance andenhancing the trust that society has in the company through suchactivities as attending meetings of the Board of Directors,
conferences of directors and other important gatherings, and auditing
business execution.

Yoshikazu Taguchi
Chairman and Chief Executive Officer

To Our Shareholders
In keeping with our basic business policy, Seino seeks to enhanceshareholders’ equity and improve profitability from a long-term
perspective, while maintaining stable dividends. Th is fiscal year,
Seino has maintained a regular annual cash dividend per share of¥11.00, the same as for the previous fiscal year.
Th rough the implementation of our new medium-term
management plan, we aim to be the top commercial freighttransportation company in Japan while at the same time raising
corporate andshareholder value. We ask our shareholders, customers and friends
for your continued understanding and support.

Yoshitaka Taguchi
President and Chief Operating Officer

3

Special Feature

Expanding Our Operations Scope and Creating New ValueThe Seino Group established “Challenging towards Change”, amedium-term management plan beginning in the fiscal year of
2011, and vigorously promoted the forming of new systems whichmatch group company functions and customers to provide alogistics service which “Connects to the needs” of all customers. In
addition, the Seino Group has strove to become a corporation
where each of its individual companies is the one chosen bycustomers in their respective industries, thereby building an
unshakeable business foundation.
The following outlines initiatives implemented by respective
business groups in the fiscal year of 2012.

Business Group Initiatives
Transportation Services/Business Group

Start of a New Group Framework
In order to further strengthen our corporate value, Seino
Holdings has reorganized the transportation group and madeTokyo Sharyo (Iruma, Saitama), a company which primarily
deals in truck maintenance, a subsidiary, starting business
operations from April 1 under a new framework.
Kyushu Seino Transportation and Kyushu Seibu
Transportation were integrated to achieve better efficiency in
Kyushu sales. In addition, Seino Express absorbed Seno
Logistics with the goal of streamlining sales andmanagement and strengthening group competitiveness.
Finally, Gifu Hino Motor Co., Ltd acquired all of Tokyo
Sharyo’s shares, making it their wholly owned subsidiary.
Through this move, Seino will strengthen our maintenanceplant network with a focus on the Kanto region, continueinternalization of the maintenance business and increase
profits.

Start of a Busan Platform Project
Utilizing the functions and merits of Busan port, Korea,
which is part of the Free Trade Zone (FTZ), Seino Holdings
launched the Busan Platform Project (PPP) on May 1.
This project is a new business model which reduces
import/export costs and achieves total support from overseas
production plants to domestic delivery by storing andprocessing goods within the FTZ where customs duties are
not imposed.

Photo courtesy of Busan Port Authority
4

Currently, there are direct sea routes from Busan to mostof the main regional Japanese ports, therefore regional
industries are also promoted by connecting regional ports tointernational ports via the Busan port, which handles the 5thlargest volume of containers in the world.

The Japan Wholesale Purchasing
Network handling everything fromTransportation to eCommerce
As of November 1, Seino Holdings commenced operationof an eCommerce website, the Japan Wholesale Purchasing
Network participated in by commercial buyers and sellers
across Japan.
By using this site, sellers, such as manufacturers, are able
to expand their sales channels Japan-wide, while buyers, suchas wholesalers and retailers, are able to only purchase theamount they require.
In addition to logistics which utilize Seino Transportation
Group’s Japan-wide network, by having Seino Financial
perform payment collection as well as combining thestrengths of other group companies, our website isdistinguished from those of other companies.

Asahi Conpou Joins the Seino GroupOn January 15, Seino Holdings acquired all issued sharesof Asahi Conpou (Sumida, Tokyo), making it one of the newmembers of the Seino Group.
By commissioning packaging and sealing work to Asahi
Conpou which was previously outsourced by Seino
Transportation, it will be possible to internalize these tasks
and increase efficiency. Moreover, we will now be able tomount joint tenders with Asahi Conpou, who has a strong
track record and reliable reputation with government
agencies, so we will aim to acquire a wide-range of orders.

Start of an Official Smartphone App
On June 19, Seino
Transportation beganoffering a free
application for
smartphones which
can be used to easily
check the delivery
status of merchandise.
By downloading
this application, theuser merely has to scan
the barcode on their receipt using their smartphone camera
in order to check the delivery status of the applicablemerchandise. The app allows up to 20 different scans to bemade consecutively and users can even re-search the history
list displayed. Seino Transportation is the fi rst in thetransportation industry to release an official application

which is supported by both iPhone*1 and Android*2 phones.
*1 iPhone is a registered trademark of Apple Inc.
*2 Android is a trademark or registered trademark of Google, Inc.

Integration of Saga Branch and Saga
West Branch
On November 5, Kyushu Seino Transportation (Hakata,
Fukuoka) transferred and integrated all operations conductedby the Saga West branch of former Kyushu Seibu
Transportation.
By making the distance between the 2 office locations
approximately 7 km and moving out of the Saga West branchwhere space for both the administration building andplatform was limited, this integration has improved
operational efficiency.
After the integration, Seibu Transportation’s Saga
Aviation sales office and Saga Hikkoshi Center, which was
located in the Saga branch, were relocated to the Saga Westbranch.

Vehicle Sales and Other Businesses

Improving Customer Convenience —Construction of the New Ena Store
Toyota Corolla Gifu (Rokujoomizo, Gifu) constructed a
new Ena store and held the completion ceremony on October 4.
The construction of the new store was due to thedeterioration of the old store, and aims to provide customers
with a higher level of convenience by selling both new andused cars, previously sold in separate locations, in one
integrated location.
The new store is scheduled to begin operation from lateNovember.

Start of New & Used Truck Sales in thePhilippines
On July 11, Gifu Hino Motors (Anpachi, Gifu)
established a joint venture with a local affi liate and began thesale of new and used trucks in the Philippines.
The Philippines is an untapped market for Hino Motors,
regarding both new and used vehicles.
On this occasion, we have launched a joint venture with
Filipino company, Kilton Motor Corporation which deals in
the import and sale of used vehicles, etc. The new company,
Subic GS Auto, will specialize in the sale of new and used
vehicles. .
Moving forward, the company will focus on expanding
sales in not only thePhilippines, but also
Indonesia, Thailand
and Malaysia, andplan on constructing a
repairs shop locallywithin 1 year which
will tap into thedemand for repairs
and parts.

Completion of the Kakamigahara
Branch where State-of-the-Art
Inspections are Possible
Gifu Hino Motors (Anpachi, Gifu) has relocated its
Kakamigahara sales office inside the Kakamigahara
Technoplaza, due to the old premises becoming too small
and degradation of equipment. The branch began operating
in its new location on July 3.
This branch uses a state-of-the-art computer inspection
system. Moreover,plant equipment
adopts environmental
and safety
countermeasures,
therefore
improvements incustomer convenienceand customer service
are anticipated.

Partner Agreement with hybris
softwareSeino Information Service (Taguchi-cho, Ogaki), hasentered into a partner agreement with hybris, a German
company which is one of the world’s leading developers ofeCommerce transaction software, and begun providing acomprehensive management software for customer purchasehistory.
Currently, many businesses have customer information in
individual channels such as online stores, brick-and-mortar
stores and call centers, but are unable to manage it allcomprehensively. By using software developed by hybris, it ispossible to integrate customer information from multiple
channels into one.
Moreover, this information can be linked with theexisting logistics systems and warehouse management
systems offered by Seino Information Service, thereby
making it possible to offer customers an even higher level ofconvenience.

5

Expanding Our Operations Scope and Creating New Value
Transportation Services
In our transportation service business, we exerted ourefforts to increase income and secure profit by steadily
implementing the main measures of our medium-term
management plan such as expansion of our logistics business,sales expansion of “time-providing products”, improving
transportation fee ratio, as well as improving loading ratio ofroutes and transportation quality.
Also, based on our mission as a transportation
powerhouse of “Constantly Providing the Ultimate Service
to Bring Customers Joy Through Logistics and Contributing
to Japan’s Society”, in order to improve the efficiency of ourcustomers logistics, we have enhanced transportation
products based on the strongest transportation network inJapan, and done our best to improve the accuracy of amultitude of sales support functions such as a logistics
management framework which pursues the best and optimal
option supported by an information system function,
payment service, ordering management, and the PPP (Pusan
Platform Project) which utilizes the new Busan port, Korea,
which is part of the free trade zone. Th rough these efforts,
we have built services “100% Customer Focused”, enabling
us to provide a “one-stop” answer to our customers’ requests.
In the roll out of our bases, relocating the Kyushu Seino
Transportation headquarters to inside the Fukuoka branch
and integrating the Saga branch and the Saga West branch
to form a new Saga branch (Saga City), we have obtained
stronger sales capability as well as improved operations

efficiency and customer service.
Focusing on securing planned profit, Seino
Transportation, as the center firm, has continued to unite
efforts to secure income not affected by the number ofoperating days in a month (including raising the load costs of
our land transportation business), expenses management
correlating with income/volume of handled freight andprofit-making through revenues such as fuel surcharge andtransportation costs.
Aside from the above, in addition to renewal of oure-mail newsletter and provision of a free smartphone app to
track goods being transported, we have renewed our website
and are continuously striving to enhance our customer
service further. Finally, the new product “e2-Bin”* launchedby Seino Transportation last year, which is eco-friendly at
the same time as offering security, attracted much attention
at an early stage, and in the air freight industry, which
continues to be harsh, our domestic air freight business,
which includes an express delivery network focusing on B2Btransactions, is showing steady growth.
The results were an operating revenue of ¥371,546 million(US$3,952,617 thousand), up 0.3% year-on-year, and an
operating income of ¥6,918 million (US$73,596 thousand),down 4.5% year-on-year.
* e2-Bin is a special-purpose bag for return use which can be used multiple
times. Also, each time e2-Bin is used, ¥1 is set aside for donations.

Vehicle Sales
In vehicle sales, because a struggle in the sale of newvehicles was predicted due to factors such as the end of theeco-car subsidization scheme and the cooling down ofconsumerism mentality, in addition to proactive sales
activities, Seino strengthened car parts sales, installment &insurance sales, vehicle inspections and other businesses,
doing our absolute best to maintain our profitability.
In regards to passenger vehicle sales, there was a period ofhardship in the second half of the year after the eco-car
subsidization scheme came to an end in which the number of
new car sales remained stagnant however, in the first half ofthe year, thanks to our efforts to increase sales ofenvironmentally-friendly cars such as HVs (hybrid vehicles)
which fully utilize the subsidies and tax discounts targeting
eco-cars, Seino also engaged in proactive sales activities andas a result sold more new vehicles than the previous year. In
used vehicle sales, as well as an increase in the number of
trade-in vehicles in light of healthy new vehicle sales, byholding large-scale events and so forth, our sales figures weresignificantly higher than the same period of the precedingyear.
In truck sales, the number of new vehicles sold was higher

6

than the same period of the preceding year due to eco-car
subsidies and the reconstruction demand associated with the2011 Tohoku earthquake and tsunami. Moreover, theinternalization of maintenance work through acquiring
Tokyo Sharyo as a subsidiary in order to strengthen ourmaintenance network in the Kanto region meant that our
income for truck maintenance was higher than the same
period of the preceding year.
Regarding the roll out of our bases, Toyota Corolla Gifu
newly reformed the Ena store (Ena, Gifu) into which the old
Ena store and Nakatsugawa used car sales store weremerged. In addition, Gifu Hino Motors relocated to a newly
built Kakamigahara sales office (Kakamigahara, Gifu), at
the same time integrating with the Mino sales office. Finally,
Netz Toyota Gifu partially renovated their Toki store (Toki,
Gifu) and by integrating the Toki North store here, was able
to improve productivity and operational efficiency.
The results were an operating revenue of ¥96,148 million(US$1,022,851 thousand), up 9.6% year-on-year, and an
operating income of ¥5,442 million (US$57,894 thousand),up 21.9% year-on-year.

Merchandise Sales
In merchandise sales, Seino sells merchandise best
represented by fuel, paper and paper products. Regarding thesale of our mainstay product, fuel, in addition to an increasein cost price, due to factors such as proactive sales, we
increased the volume of merchandise handled and saw steady

performance in the sale of paper products and cellphones.
The results were an operating revenue of ¥32,457 million(US$345,287 thousand), up 7.7% year-on-year, and an
operating income of ¥736 million (US$7,830 thousand), up
1.8% year-on-year.

Leasing for Real Estate Services
In this business, we strove to effectively utilize
management resources by leasing vacant store and truck
terminal lots for which alternative measures had been taken
due to the impact of urban development and lack of space.
The main terminals put up for lease included the former

terminals in Yotsubashi (Osaka City), Tajimi (Tajimi, Gifu)and Shinmachi (Osaka City).
Operating revenue was ¥1,438 million (US$15,298
thousand), up 1.6% year-on-year, and an operating income of¥1,215 million (US$12,925 thousand), up 1.5% year-on-year.

Other
In other businesses, including information-related service,
housing sales, construction consignment, taxi service andlabor dispatch service, although the labor dispatch service
began performing favorably, the number of orders obtainedfor housing sales decreased and sales turnover declined in

the information-related business.
The results were an operating revenue of ¥14,596 million(US$155,277 thousand), up 1.6% year-on-year, and an
operating income of ¥495 million (US$5,266 thousand),down 29.0% year-on-year.

Operating Revenue by Business Segment(Millions of yen)
FY3/13Results

FY3/12Composition

Results

Composition

Year-on-YearTransportation Services

371,54672.0%

370,592

73.5%

0.3%

Vehicle Sales

96,14818.6%

87,755

17.4%

9.6%

Merchandise Sales

32,457

6.3%

30,144

6.0%

7.7%

Leasing for Real Estate Services

1,438

0.3%

1,416

0.3%

1.6%

Other

14,596

2.8%

14,370

2.8%

1.6%

Total

516,185

100.0%

504,277

100.0%

2.4%

Composition

Year-on-Year

Operating Income by Business Segment(Millions of yen)
FY3/13Results

FY3/12Composition

Results

Transportation Services

6,918

48.2%

7,240

52.2%

(4.5%)

Vehicle Sales

5,442

37.9%

4,464

32.2%

21.9%

736

5.1%

723

5.3%

1.8%

1,215

8.5%

1,196

8.6%

1.5%

Other

495

3.5%

697

5.0%

(29.0%)

Total

14,806103.2%

14,320103.3%

3.4%

Elimination(460)(3.2%)(453)(3.3%)—

Consolidated

14,346100.0%

13,867100.0%

3.5%

Merchandise Sales
Leasing for Real Estate Services

7

Financial Review
the previous fiscal year-end.
Total current assets increased 5.7% to ¥196,803 million(US$2,093,649 thousand) compared with the previous fiscal
year-end. Total fi xed assets decreased 0.3% from the previous
fiscal year-end to ¥313,664 million (US$3,336,851 thousand).
Total current liabilities decreased 1.0% compared with theprevious fiscal year-end to ¥107,171 million(US$1,140,117thousand). Th is was due primarily to trade
payables and despite decreases in income tax payable.
Long-term liabilities decreased 3.4% from the previous
fiscal year-end to ¥71,594 million (US$761,638 thousand).
The main factors behind this result were decreases in negative
goodwill and deferred tax liabilities.
Net assets rose 4.1% from the previous fiscal year-end
to¥331,702 million (US$3,528,745 thousand). The major
factor was an increase in retained earnings derived from theposting of net income. Shareholders’ equity increased 1.4
percentage point to 63.4%.

Operating Results
Consolidated operating revenue for Seino Holdings for the
fiscal year ended March 31, 2013 increased 2.4% from theprevious fiscal year to ¥516,185 million(US$5,491,330thousand). This was due to increased sales inall segments.
Operating costs of revenues increased 2.2% from theprevious fiscal year to ¥467,596 million(US$4,974,426thousand). The ratio of operating costs tooperating revenue was 90.6%, down 0.1 percentage point fromthe previous fiscal year.
Selling, general and administrative expenses increased
4.1% to ¥34,243 million (US$364,287 thousand), while
operating income increased 3.5% to ¥14,346 million(US$152,617 thousand).
Other income (expenses) stood at ¥3,228 million(US$34,340thousand). Key positive factors were the special
extra retirement payments of ¥421 million (US$4,479
thousand) and gain on sale or disposal of property andequipment of ¥259 million (US$2,755 thousand).
Negative factors included the impairment loss on fi xed
assets of ¥2,199million (US$23,394 thousand) andamortization of negative goodwill of ¥3,055 million(US$32,500 thousand).
As a result, income before income taxes and minority
interests amounted to ¥17,574 million (US$186,957thousand),down 5.1% year-on-year. Net income decreased 3.1% to¥12,151 million (US$129,266 thousand).
Net income per share was ¥61.05 (US$0.65), and return on
equity was 3.7%. Annual cash dividends per share weremaintained at ¥11.00 (US$0.12), the same as in the previous
fiscal year.

Cash FlowsNet cash provided by operating activities increased¥1,182million compared with the previous fiscal year to¥26,089million (US$277,543 thousand) due mainly toincrease in trade receivables in the previous fiscal year.
Net cash used in investing activities increased¥13,340million compared with the previous fiscal year to¥27,066million (US$287,936 thousand) due primarily to anincrease in short-term investments.
Net cash used in financing activities decreased¥3,540million compared with the previous fiscal year to¥54,055million (US$575,053 thousand).
Consequently, cash and cash equivalents at end of year
decreased ¥3,540 million compared with the previous fiscal
year to ¥54,055 million (US$575,053 thousand).

Financial Position
Total assets at the end of the fiscal year under review were¥510,467 million (US$5,430,500 thousand), up 1.9% versus

Operating income to operating revenue
Net income (loss) to operating revenue

Net income (loss) to total assets
Return on equity ratio

Shareholders’ equity ratio

(%)

(%)

(%)

5

5

80

4

4

3

3

2

2

1

1

0

0

-1

-1

-2

-2

-3

-3

-4

-4

60

40

20

-5

-5
2008

8

2009

2010

2011

2012

2013

0
2008

2009

2010

2011

Operating income to operating revenue

Net income (loss) to total assets

Net income (loss) to operating revenue

Return on equity ratio

2012

2013

2008

2009

2010

2011

2012

2013

SEINO HOLDINGS CO., LTD. and Consolidated Subsidiaries

Six-year Summary
For the Years Ended March 31, 2013, 2012, 2011, 2010, 2009 and 2008
Millions of Yen
2013
For the year:
Operating revenue:
Transportation services
Vehicle sales
Merchandise sales
Leasing for real estate services
Other
Operating costs
Selling, general andadministrative expenses
Operating income
Net income (loss)
At year-end:
Current assets
Total assets
Current liabilities
Short-term borrowings
Long-term debt, including current maturities
Net assets

¥

2012

516,185
371,546
96,14832,457
1,438
14,596
467,596¥2011

504,277
370,592
87,75530,144
1,416
14,370457,512¥2010

497,612368,771
87,075
27,104
1,429
13,233452,263¥

2009

485,808
362,628
87,132
21,7791,265
13,004445,845¥2008

433,766
316,341
78,722
23,302
1,187
14,214
397,826¥

451,978
331,862
85,537—1,146
33,433
410,579

34,243
14,346
12,15132,89813,867
12,542

33,023
12,326
8,449

33,342
6,621
9,477

32,6073,333
3,391

31,474
9,925
6,018

196,803
510,467
107,1712,473
314
331,702

186,255
500,963108,2192,475
565
318,650

166,726
487,701
97,614
2,515
648
307,806

165,451484,674
96,433
2,315
982
301,792

150,140
439,372
82,996
2,135
1,462
291,564

168,475
457,871
93,0442,465
2,114
293,985Yen
Per share data:
Net (loss) income:-BasicCash dividends¥

Number of shares issued

61.05
11.00

¥

207,679

63.02
11.00

¥

42.44
11.00

¥

47.60
11.00

¥

Thousands
207,679
207,679

207,679

17.03
11.00

¥

30.27
11.00

207,679

207,679

0.8
0.8
0.8
1.2
64.9
180.9
51.8
65.1

2.2
1.3
1.3
2.1
62.9
181.1
56.9
36.6

Percent
Ratios:Operating income to operating revenue
Net income (loss) to operating revenue
Net income (loss) to total assets
Return on equity ratio
Shareholders’ equity ratio
Current ratio
Debt equity ratio
Payout ratio

2.8
2.4
2.4
3.7
63.4
183.6
55.3
18.0

Current ratio

2.7
2.5
2.5
4.0
62.0
172.1
58.7
17.5

2.5
1.7
1.7
2.8
61.6
170.8
59.9
26.2

1.4
2.0
2.0
3.2
60.7
171.6
62.1
23.2

Debt equity ratio

Payout ratio

(%)

(%)

(%)

200

120

70
60
50

160
90

40
30

120

20

60

10

80

0
30
-10

40

-20
0

0
2008

2009

2010

2011

2012

2013

-30
2008

2009

2010

2011

2012

2013

2008

2009

2010

2011

2012

2013

9

SEINO HOLDINGS CO., LTD. and Subsidiaries

Consolidated Balance Sheets
March 31, 2013 and 2012
Millions of yen
2012

2013
Assets:Current assets:
Cash and cash equivalents (Note 3)
Short-term investments (Notes 3 and 5)
Trade receivables (Note 3)Inventories (Note 4)
Deferred tax assets (Note 14)
Other current assets
Allowance for doubtful accounts
Total current assets¥

54,05522,879102,618
8,588
4,627
4,285
(249)
196,803¥

Thousands of
U.S. dollars
2013

57,595
7,231
102,079
9,464
5,073
5,149
(336)
186,255$

575,053
243,394
1,091,681
91,362
49,22345,585(2,649)2,093,649

Property and equipment (Notes 6, 7 and 9):
At costAccumulated depreciation
Net property and equipment

533,295(262,928)
270,367

534,612(260,137)
274,475

5,673,351(2,797,106)
2,876,245

Investments and other assets:
Investment securities (Notes 3 and 5)
Investments in and long-term loans to affiliates (Note 5)
Deferred tax assets (Note 14)
Other assets
Total investments and other assets
Total assets

21,816
2,994
9,487
9,000
43,297510,467

18,255
2,886
9,353
9,739
40,233500,963

232,085
31,851
100,926
95,744
460,606$ 5,430,500

2,475
248
56,421
12,6905,773
51
30,561
108,219$

Current liabilities:
Short-term borrowings (Notes 3 and 9)
Current portion of long-term debt (Notes 3 and 9)
Trade payables (Note 3)
Accrued expenses
Income taxes payable
Provision for loss on disaster
Other current liabilities
Total current liabilities¥¥

Long-term debt (Notes 3 and 9)
Employee retirement benefit liability (Note 10)
Asset retirement obligations (Note 8)
Accrued severance indemnities for directors and corporate auditors
Deferred tax liabilities (Note 14)
Negative goodwill (Note 17)
Other long-term liabilities
Total liabilities

2,473
137
57,767
12,3362,377—
32,081
107,171¥¥

26,3091,457
614,543
131,234
25,287—341,287
1,140,117

177
56,591
2,478
1,490
7,463
3,045
350
178,765317
55,267
2,454
1,401
8,218
6,100
337
182,3131,883
602,032
26,36215,851
79,39432,393
3,723
1,901,755

42,482
74,261
209,561(8,612)
317,692

42,482
74,261
199,599(8,603)
307,739451,936
790,0112,229,372(91,617)
3,379,702

6,172
(133)
(264)
5,775
8,235
331,702510,467

3,509
(132)
(360)
3,017
7,894
318,650
500,963

65,660(1,415)(2,809)61,436
87,607
3,528,745$ 5,430,500

Commitments and contingent liabilities (Notes 11 and 12)
Net assets:
Shareholders’ equity (Note 13):
Common stock: 794,524,668 shares authorized and 207,679,783 shares issued
Capital surplus
Retained earnings
Less treasury stock at cost: 8,660,804 shares in 2013 and 8,645,738 shares in 2012
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gains on available-for-sale securities
Land revaluation decrement
Foreign currency translation adjustments
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets
See accompanying Notes to Consolidated Financial Statements.
10

¥

¥

SEINO HOLDINGS CO., LTD. and Subsidiaries

Consolidated Statements of Income
For the Years Ended March 31, 2013, 2012 and 2011

2011

Thousands of
U.S. dollars
2013

497,612$ 5,491,330

Millions of yen
2012

2013
Operating revenue (Note 17)¥

Operating costs and expenses (Notes 10):
Operating costs
Selling, general and administrative expenses
Operating income
Other income (expenses):
Interest and dividend income
Interest expense
Gain (loss) on sale or disposal of property and equipment
Gain on sale of investment securities
Equity in net income (loss) of affiliates
Amortization of negative goodwill (Note 17)
Impairment loss on fixed assets (Notes 2(j) and 17)
Loss on write-down of investment securities
Gain (loss) on abolishment of retirement benefit plan (Note 10)
Loss on liquidation of subsidiaries and affiliates
Gain on negative goodwill (Note 17)
Cumulative effect on adoption of accounting standard for asset retirement obligations (Note 2(u))
Loss on disasterLump-sum payment for withdrawal from employees pension fund (Note 10)
Retirement benefit expenses (Note 10)
Special extra retirement payments (Note 10)
Settlement package
Miscellaneous, net
Income before income taxes and minority interests
Income taxes (Note 14):
Current
Deferred
Total income taxes
Income before minority interests
Minority interests in net income of subsidiaries
Net income¥

516,185¥

504,277¥

467,596
34,243501,839
14,346457,51232,898490,410
13,867452,263
33,023
485,286
12,326

4,974,426
364,287
5,338,713
152,617

473
(31)
259
2
249
3,055
(2,199)
(20)
—
—
36
—
—
—
—
—
—
1,404
3,228
17,574

624
(38)
18
115
28
3,255
(1,093)
(22)
149
—
—
—
—
—
—
(421)
—
2,032
4,647
18,514

488
(51)
(11)
15
(43)
5,374
(3,029)
(413)
(107)
(178)
33
(1,678)
(404)
(670)
(166)
—
(300)
1,950
810
13,136

5,032
(330)
2,755
21
2,649
32,500(23,394)
(213)
—
—
383
—
—
—
—
—
—
14,93734,340186,957

6,544(1,498)
5,046

7,655
(2,028)
5,627

6,984
(2,657)
4,327

69,617(15,937)
53,68012,52812,8878,809

133,277377
12,151¥

345
12,542

¥

360
8,449

¥

61.05
11.00

¥

63.02
11.00

4,011
129,266

U.S. dollars

Yen
Per share:
Net income
Cash dividends

$

¥

42.44
11.00

$

0.65
0.12

See accompanying Notes to Consolidated Financial Statements.
11

SEINO HOLDINGS CO., LTD. and Subsidiaries

Consolidated Statements of Comprehensive Income
For the Year Ended March 31, 2013, 2012 and 2011
Thousands of
U.S. dollars
2013

Millions of yen
2012

2013
Income before minority interests¥
Other comprehensive income (Note 15):
Net unrealized gains on available-for-sale securities
Foreign currency translation adjustments
Share of other comprehensive income of affiliates accounted for using equity method
Total other comprehensive income¥
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Minority interests

12,528
2,667
96
2
2,765
15,293

2011¥

12,887

¥

221
(44)
—
177
13,064
12,719345

14,909
384

¥

8,809

¥

(513)
141
(1)
(373)
8,436

$

133,277$

28,372
1,021
21
29,414
162,691

8,069
367

158,606
4,085

SEINO HOLDINGS CO., LTD. and Subsidiaries

Consolidated Statements of Changes in Net Assets
For the Years Ended March 31, 2013, 2012 and 2011
Shareholders’ equity
Number ofshares ofcommonCommonstock issued
stock

CapitalsurplusRetainedearnings

Accumulated other comprehensive income

Total
Net unrealized
Foreign
Total
gains onLand
currency accumulated
other
Treasury shareholders’ available-for- revaluation translation comprehensive Minority
stock
equitysale securities decrement adjustments income
interests

Total net
assetsMillions of yen
Balance at April 1, 2010
207,679,783 ¥ 42,482 ¥ 74,266 ¥Net income for the year———
Cash dividends———
Reversal of land revaluation decrement———
Purchases of treasury stock andfractional shares, net———
Net changes in items other thanshareholders’ equity———
Balance at March 31, 2011
207,679,783
42,482
74,266
Net income for the year———
Cash dividends——
Reversal of land revaluation decrement———
Purchases of treasury stock andfractional shares, net——(5)Net changes in items other thanshareholders’ equity———
Balance at March 31, 2012
207,679,783
42,482
74,261
Net income for the year———
Cash dividends———
Purchases of treasury stock andfractional shares, net———
Net changes in items other thanshareholders’ equity———
Balance at March 31, 2013
207,679,783 ¥ 42,482 ¥74,261 ¥

183,105 ¥ (8,595) ¥ 291,258 ¥ 3,809 ¥
8,449
—
8,449
—
(2,189)—(2,189)
—
(158)
—
(158)
—

(251) ¥———

(457) ¥ 3,101 ¥ 7,433 ¥ 301,792
—
—
—
8,449
—
—
—
(2,189)
—
—
—
(158)

—

(11)

(11)

—

—

—

—

—

(11)

—
189,207
12,542(2,189)39—(8,606)————297,349
12,542(2,189)
39

(521)
3,288
—
—
—

158
(93)
—
—
—

141
(316)
—
—
—

(222)
2,879
—
—
—

145
7,578
—
—
—

(77)
307,806
12,542(2,189)
39

—

3

(2)

—

—

—

—

—

(2)

—
199,599
12,151(2,189)—(8,603)———
307,739
12,151(2,189)

221
3,509
—
—

(39)
(132)
—
—

(44)
(360)
—
—

138
3,017
—
—

316
7,894
—
—

454
318,650
12,151(2,189)

—

(9)

(9)

—

—

—

—

—

(9)

—
—
—
2,663
209,561 ¥ (8,612) ¥ 317,692 ¥ 6,172 ¥(1)(133) ¥

96
2,758
341
3,099
(264) ¥ 5,775 ¥ 8,235 ¥ 331,702

Thousands of U.S. dollars
Balance at March 31, 2012
Net income for the year
Cash dividends
Purchases of treasury stock andfractional shares, net
Net changes in items other thanshareholders’ equity
Balance at March 31, 2013

$451,936 $ 790,011 $ 2,123,393 $ (91,521) $ 3,273,819 $ 37,330 $ (1,404) $——129,266—
129,266————(23,287)—(23,287)
—
—
—

—

(96)

(96)

—

—

—

—

—

(96)

—
—
—
—
— 28,330(11)
1,021
29,3403,628
32,968$451,936 $ 790,011 $ 2,229,372 $ (91,617) $ 3,379,702 $ 65,660 $ (1,415) $ (2,809) $ 61,436 $ 87,607 $ 3,528,745

See accompanying Notes to Consolidated Financial Statements.
12—(3,830) $ 32,096 $ 83,979 $ 3,389,894———
129,266———(23,287)

SEINO HOLDINGS CO., LTD. and Subsidiaries

Consolidated Statements of Cash Flows
For the Years Ended March 31, 2013, 2012 and 2011

2011

Thousands of
U.S. dollars
2013

13,136$

Millions of yen
2012

2013
Cash flows from operating activities:
Income before income taxes and minority interests¥
Adjustments for:
Depreciation
Impairment loss on fixed assets
Amortization of negative goodwill
Amortization of goodwill
Gain on negative goodwill
Net provision for employee retirement benefit liability(Gain) loss on sale or disposal of property and equipment
Equity in net (income) loss of affiliates
Loss on write-down of investment securities
Gain on sale of investment securities
Net provision (reversal) for accrued severance indemnities for directors
and corporate auditors(Decrease) increase in provision for loss on disaster
Loss on liquidation of subsidiaries and affiliates
Cumulative effect on adoption of accounting standard for asset retirement
obligations(Increase) decrease in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividend received
Interest paid
Income taxes paid
Net cash provided by operating activities

17,574¥

18,514¥

15,324
1,093(3,255)
503
—
249
(18)
(28)
22
(115)

14,486
2,199(3,055)
499
(36)
1,317
(259)
(249)
20
(2)

16,6953,029(5,374)
501
(33)
444
11
43
413
(15)

186,957
154,106
23,394(32,500)
5,309
(383)
14,011(2,755)(2,649)
213
(21)

20

(4)

(89)

213

(51)
—

(134)
—

186
178

(543)
—

—

—

1,678

—

(525)
324
1,312
1,337
34,911620(31)(9,411)
26,089(7,738)(2,422)6,612
2,494
31,097755(38)(6,907)
24,907287
2,437(1,192)
1,607
33,942557(51)(6,493)
27,955(5,585)
3,447
13,957
14,223371,394
6,596(330)(100,117)
277,543

Cash flows from investing activities:
Increase in property and equipment
Increase in long-term investments and loans
Decrease in property and long-term investments(Increase) decrease in short-term investments
Net cash used in investing activities(12,539)
(288)
1,389
(15,628)(27,066)(14,555)
(425)
1,441
(187)
(13,726)(21,855)
(25)
1,047
726
(20,107)(133,394)(3,064)
14,777(166,255)(287,936)

Cash flows from financing activities:
Repayment of long-term debt
Net (decrease) increase in short-term borrowings
Dividends paid to shareholders
Dividends paid to minority shareholders
Purchases of treasury stock, net of disposals
Other, net
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

(257)
(4)
(2,189)
(39)
(9)
(83)
(2,581)18(3,540)57,59554,055(192)(56)(2,189)
(30)
(2)
(103)
(2,572)(6)
8,603
48,992
57,595(335)
200(2,189)
(26)
(11)
(155)
(2,516)(7)
5,325
43,667
48,992(2,734)(42)(23,287)
(415)
(96)
(883)
(27,457)
191(37,659)
612,712575,053

¥

¥

¥

$

See accompanying Notes to Consolidated Financial Statements.
13

SEINO HOLDINGS CO., LTD. and Subsidiaries

Notes to Consolidated Financial Statements
The Company and most of its subsidiaries have a fiscal year that ends on
March 31. The overseas subsidiary closes its books on December 31. The
Company has consolidated the overseas subsidiary’s financial statement as ofits year-end because the difference between its fiscal year-end and that of theCompany was not more than three months. Significant transactions for theperiod between the subsidiary’s year-end and the Company’s year-end were
adjusted for on consolidation.
During the year ended March 31, 2011, Central Logistics Co., Ltd., asubsidiary, changed its fiscal year-end from January 31 to March 31, andDarumaya Transportation Co., Ltd., another subsidiary, changed its fiscal
year-end from December 31 to March 31. As a result, the consolidated
financial statements for the year ended March 31, 2011 included the resultsof the two subsidiaries’ operations for the 14-month period from February 1,
2010 to March 31, 2011 and the 15-month period from January 1, 2010 toMarch 31, 2011, respectively.
The consolidated financial statements include the accounts of theoverseas subsidiary which are prepared under IFRS in accordance with
Practical Issues Task Force (“PITF”) No. 18, “Practical Solution on
Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements” issued by the Accounting Standards
Board of Japan (“ASBJ”).

1. Basis of Consolidated Financial Statements
The accompanying consolidated financial statements of SEINO
HOLDINGS CO., LTD. (the “Company”) and its subsidiaries (together
with the Company, the “Seino Group”) have been prepared in accordancewith the provisions set forth in the Financial Instrument and Exchange
Law of Japan and its related accounting regulations and in conformity
with accounting principles generally accepted in Japan (“Japanese
GAAP”), which are different in certain respects as to applicationand disclosure requirements from International Financial ReportingStandards (“IFRS”).
The accompanying consolidated financial statements have been
restructured and translated into English from the consolidated financial
statements of the Company prepared in accordance with Japanese GAAP
and filed with the appropriate Local Finance Bureau of the Ministryof Finance as required by the Financial Instrument and Exchange Law
of Japan. Certain supplementary information included in the statutory
Japanese language consolidated financial statements, but not required
for fair presentation, is not presented in the accompanying consolidated
financial statements.
Certain comparative figures have been reclassified to conform to thecurrent year’s presentation.
The translation of the Japanese yen amounts into U.S. dollar amounts
is included solely for the convenience of readers outside Japan, using theapproximate exchange rate prevailing at March 31, 2013, which was ¥94
to U.S. $1.00. The translation should not be construed as a representationthat the Japanese yen amounts have been, could have been or could in the
future be converted into U.S. dollars at this or any other rate of exchange.

(a-ii) Corporate separation for the year ended March 31, 2012
On April 1, 2011, the Company restructured the transportation
business in the Kyushu region. Seino Transportation Co., Ltd., asubsidiary, underwent a corporate separation in which its transportation
business in Kyushu region was transferred to the newly foundedsubsidiary, Kyushu Seino Transportation Co., Ltd. The Company
applied the ASBJ Statement No. 21, “Accounting Standard for Business
Combinations,” revised on December 26, 2008, and ASBJ Guidance No.
10, “Guidance on Accounting Standard for Business Combinations andBusiness Divestitures,” revised on December 26, 2008, and accounted forthe separation as business transactions under common control.

2. Summary of Significant Accounting Policies(a-i) Principles of consolidation
The accompanying consolidated financial statements include theaccounts of the Company and all of its subsidiaries. Investments insignificant affiliates are accounted for by the equity method. Investments
in affiliates not accounted for by the equity method are stated at cost.
Differences between the acquisition cost of investments in subsidiaries
and the underlying equity in their net assets, adjusted based on thefair value at the time of the acquisition, are deferred as goodwill andamortized over five years on a straight-line basis. From April 1, 2010,
negative goodwill resulting from business combinations, measured by
the excess of the underlying equity in the net assets over the acquisition
cost, is credited to income. Negative goodwill resulting from acquisitions
incurred prior to April 1, 2010, however, is amortized over five years on astraight-line basis. All intercompany transactions and accounts have been
eliminated on consolidation.
Under accounting standards for consolidation, a subsidiary is defined
as an enterprise which is controlled by another enterprise and is amajority (more than 50%) owned enterprise or a 40% to 50% owned
enterprise that meets certain criteria. An affiliated company is defined
as an enterprise in which the investor has significant influence and is anenterprise other than a subsidiary that is a 20% or more owned enterpriseor a 15% to less than 20% owned enterprise that meets certain criteria.
For the years ended March 31, 2013, 2012 and 2011, the number ofthe companies that were not more than 50% owned enterprises, butwere nevertheless classified as subsidiaries based on the judgment of theCompany in accordance with the accounting standards was one.

(a-iii) Corporate separation and merger for the year ended March
31, 2013
Effective on April 1, 2012, Kyushu Seibu Transportation Co., Ltd.
(“Kyushu Seibu”), a subsidiary, underwent a corporate separation inwhich its transportation business in the Kyushu region was transferred
to Kyushu Seino Transportation Co., Ltd. At the same time, Kyushu
Seibu was merged into Seibu Transportation Co., Ltd., anothersubsidiary. These subsidiaries had been engaged in the transportation
service business, and the Company was aiming to increase service
efficiencies for transportation services and to integrate the operationsof these subsidiaries in the Kyushu region of Japan. The transactions
were accounted for as business transactions under common control inaccordance with ASBJ Statement No. 21 and ASBJ Guidance No. 10.

(b)

The Seino Group considers cash equivalents to be highly liquid debt
instruments purchased with an original maturity of three months or less.

(c)

14

2013

2012

2011

58
1
4
10

58
1
4
9

57
1
4
10

Investments and marketable securities
The Seino Group classifies certain investments in debt and equity
securities as “held-to-maturity,” “trading” or “available-for-sale.” Theclassification determines the respective accounting method as stipulatedby the accounting standard for financial instruments. Held-to-maturity
securities are stated at amortized cost. Marketable securities with market
quotations for available-for-sale securities are stated at fair value, andnet unrealized gains and losses on these securities are reported as acomponent of net assets net of applicable income taxes. Gains and losseson the disposition of available-for-sale securities are computed based on
the moving average method. Nonmarketable securities without available
market quotations for available-for-sale securities are carried at cost
determined by the moving average method. Adjustments in carrying
values of individual securities are charged to income through write-downs
when a decline in value is deemed other than temporary.

The number of subsidiaries and affiliates for the years ended March
31, 2013, 2012 and 2011 was as follows:
Subsidiaries:
Domestic
Overseas
Affiliates accounted for by the equity method
Affiliates stated at cost

Cash and cash equivalents(d)Accounting for derivatives
As of March 31, 2013 and 2012, the Seino Group did not hold nor
had it issued any derivative instruments.

(e)

(f)

Allowance for doubtful accounts

Millions of yen

Allowance for doubtful accounts is provided for at the aggregate
amount of estimated credit loss based on an individual financial review
of certain doubtful or troubled receivables and a general reserve forother receivables based on the historical loss experience for a certain
past period.

Property subject toimpairment:

Inventories

Impairment loss recorded:

Inventories for merchandise, products, raw materials and supplies arestated principally at the lower of moving average cost or net realizablevalue, and inventories for vehicles and work-in-process are statedprincipally at the lower of specific identification cost or net realizablevalue.

(i)

845 ¥
244
4
1,093 ¥

2,737 $ 23,128
291
213
1
53
3,029 $ 23,394

Provision for loss on disaster was provided for at an amount estimatedat the end of the fiscal year-end in order for the restoration of theproperty damaged or destroyed by the Great East Japan Earthquake
incurred in March 2011.

(l)

Employee retirement benefits
Employees who terminate their service with the Seino Group areentitled to retirement benefits generally determined by reference to basic
rates of pay at the time of termination, length of service and conditions
under which the termination occurs.
In accordance with the accounting standard for employee retirement
benefits, the Seino Group has recognized retirement benefits for employees,
including pension cost and related liability, based on the actuarial present
value of projected benefit obligation using the actuarial appraisal approachand the fair value of pension plan assets available for benefits at the fiscal
year-end. Unrecognized actuarial differences from changes in the projected
benefit obligation or the value of pension plan assets resulting from actual
outcomes different from that which were assumed and from changes
in the assumptions themselves are amortized on a straight-line basis
over principally ten years, a period within the average remaining service
years of employees, from the year following the year in which they arise.
Unrecognized past service cost is amortized using the straight-line method
over principally ten years, a period within the average remaining service
years of employees from the year in which it occurs.

(m) Severance indemnities for directors and corporate auditors
The Seino Group may pay severance indemnities to directors
and corporate auditors subject to the approval of the shareholders.
The Company and certain subsidiaries provide for accrued severance
indemnities for directors and corporate auditors at the amount thatwould have been payable if the directors and corporate auditors had
retired at the end of the fiscal year based on internal rules, in accordancewith the Japanese Institute of Certified Public Accountants (“JICPA”)
Audit and Assurance Committee Report No. 42, “Treatment for
Auditing of Reserve Under Special Taxation Measures Law, Reserve
Under Special Laws and Reserve for Retirement Benefits to Directors
and Corporate Auditors.”

Intangible assets

Accounting standard for impairment of fixed assets
The Company and its domestic subsidiaries have adopted the"Accounting Standard for Impairment of Fixed Assets" issued by theBusiness Accounting Council of Japan and the related practical guidanceissued by ASBJ. The standard requires that fixed assets be reviewed for
impairment whenever events or changes in circumstances indicate thatthe carrying amount of an asset may not be recoverable. An impairment
loss shall be recognized in the income statement by reducing the carrying
amount of the impaired asset or group of assets to the recoverable
amount to be measured as the higher of the asset’s net selling price orvalue in use. Fixed assets include land, buildings and other forms ofproperty, as well as intangible assets, and are to be grouped at the lowest
level for which there are identifiable cash flows distinguishable fromother groups of assets. For the purpose of recognition and measurementof impairment loss, fixed assets are grouped into cash-generating units
such as operating business branches other than idle or unused property.
At March 31, 2013, 2012 and 2011, recoverable amounts of assets were
measured based on value in use calculated using discounted future cash
flows at interest rates principally of 1.9%, 2.5% and 3.1%, respectively,or net selling prices using primarily appraisal valuations. As a result, theSeino Group recognized impairment losses as follows:

2,174 ¥
20
5
2,199 ¥(k) Provision for loss on disasterIntangible assets are amortized on a straight-line basis. Software,
which is included in intangible assets, is amortized using the straightline method over the estimated useful life of five years.

(j)

2011
56 businessbranchesand 6 idle
properties

Accumulated impairment losses have been directly deducted from theapplicable assets.

(h) Leases
Effective April 1, 2008, the Company and its domestic subsidiaries
have adopted the new accounting standards for finance leases
commencing after March 31, 2008 and capitalize assets used undersuch leases, except for certain immaterial or short-term finance leases
accounted for as operating leases. Depreciation of leased assets capitalized
in finance lease transactions as lessee is computed by the straight-line
method over the lease term as the useful life with the assumption of noresidual value. As permitted, finance leases which commenced prior to
April 1, 2008 and have been accounted for with accounting treatment
similar to that used for operating leases continue to be accounted forwith accounting treatment similar to that used for operating leases withdisclosure of certain “as if capitalized” information.

2012
36 businessbranchesand 9 idle
properties

for land¥for buildings and structures
for other property¥(g) Property and equipment and depreciation
Property and equipment, including significant renewals and additions,
are stated at cost. Property and equipment of the Company and certain
subsidiaries are depreciated by the straight-line method for buildings andvehicles and by the declining balance method for other property.
Property and equipment of other subsidiaries have been depreciatedprincipally by the declining balance method, except for buildings acquired
on and after April 1, 1998 and property held for lease. Buildings acquired
on and after April 1, 1998 by the domestic subsidiaries are depreciatedby the straight-line method. Some of the subsidiaries capitalize property
for which the cost was not less than ¥100,000 but below ¥200,000 anddepreciate it over three years on a straight-line basis.
Expenditures on maintenance and repairs are charged to operating
income as incurred. Upon the disposal of the property, the cost andaccumulated depreciation are removed from the accounts and any gain orloss is recorded as income or expenses.

2013
42 businessbranchesand 5 idle
properties

Thousandsof U.S.
dollars
2013(n)

Revenue recognition for freight charges
The Seino Group recognizes freight charges as revenue when freightis received for shipment. In relation to its revenue recognition, the Seino
Group records freight charges from customers and paid to interline
carriers as operating revenue and operating costs and expenses, respectively.

(o)

Income taxes
Income taxes are accounted for by the asset-liability method. Deferred
tax assets and liabilities are recognized for the future tax consequences
attributable to differences between the carrying amounts of existing
assets and liabilities and their respective tax bases and operating loss
carryforwards. Deferred tax assets and liabilities are measured using
the enacted tax rates expected to apply to taxable income in the years
in which those temporary differences are expected to be recovered or
settled. The effect on deferred tax assets and liabilities of a change in tax
rates is recognized in the period that includes the promulgation date.

15

(p)

be made in the period in which such obligation arises, such obligation
will be recognized as liability when a reasonable estimate thereof becomes
available. Upon initial recognition of an asset retirement obligation asliability, such obligation is capitalized by increasing the carrying amountof the related fixed asset by the amount of such obligation. Such amountof obligation is subsequently allocated to expense through depreciation
over the remaining useful life of the related tangible fixed asset. Over time,
the liability representing such obligation is accreted to its present value
for each period. Any subsequent revision to the timing or amount of theoriginal estimate of undiscounted cash flows are reflected as adjustments
to the carrying amount of the liability representing such obligation and tothe capitalized amount of such obligation.
As a result of adopting these standards, operating income decreasedby ¥288 million and income before income taxes and minority interests
decreased by ¥1,966 million for the year ended March 31, 2011 fromthe amounts that would have been reported without the change, and thecumulative effect at beginning of the year ended March 31, 2011 wasrecorded as other expenses in the accompanying consolidated statements
of income for the year ended March 31, 2011.
(Adoption of accounting standards for business combinations and others)
Effective from the year ended March 31, 2011, the Company has
adopted the “Accounting Standard for Business Combinations” (ASBJ
Statement No. 21, issued on December 26, 2008), the “AccountingStandard for Consolidated Financial Statements” (ASBJ Statement
No. 22, issued on December 26, 2008), the “Partial Amendments to
Accounting Standard for Research and Development Costs” (ASBJ
Statement No. 23, issued on December 26, 2008), the “Revised
Accounting Standard for Business Divestitures” (ASBJ Statement No.
7, revised on December 26, 2008), the “Revised Accounting Standard
for Equity Method of Accounting for Investments” (ASBJ Statement
No. 16, revised on December 26, 2008) and the “Revised Guidanceon Accounting Standard for Business Combinations and AccountingStandard for Business Divestitures”(ASBJ Guidance No. 10, revised on
December 26, 2008).

Enterprise taxes
The Seino Group records local corporate enterprise taxes based on the“added value” and “capital” amounts when levied as size-based corporate
taxes for local government enterprise taxes, which are included in selling,
general and administrative expenses.

(q)Appropriation of retained earnings
Cash dividends are recorded in the fiscal year during which a proposed
appropriation of retained earnings is approved by the Board of Directors
and/or shareholders.

(r)Translation of foreign currency accounts
Receivables, payables and securities, other than stocks of subsidiaries
and certain other securities, are translated into Japanese yen at theexchange rates prevailing at the fiscal year-end. Transactions in foreign
currencies are recorded based on the prevailing exchange rates on thetransaction dates. Resulting translation gains and losses are included incurrent earnings.
In respect to the financial statement items of overseas subsidiaries, allasset, liability, income and expense accounts are translated into yen by
applying the exchange rates in effect at the fiscal year-end. Translationdifferences, after allocations of portions attributable to minority interests,
are reported as foreign currency translation adjustments in a componentof net assets on the accompanying consolidated balance sheets.

(s)

Per share data
Basic net income per share is computed by dividing income available
to common shareholders by the weighted average number of sharesof common stock outstanding during the respective year. Diluted
net income per share is not disclosed as Seino Group had no dilutive
common shares for the years ended March 31, 2013, 2012 and 2011.
Cash dividends per share shown for each fiscal year in theaccompanying consolidated statements of income represent dividends
declared as applicable to the respective years.

(t)

Adoption of consolidated taxation system
Effective from the fiscal year ended March 31, 2013, the Company
and some of its subsidiaries have adopted the consolidated taxation
system, with the Company as the taxable parent company. Effectivefrom the fiscal year ended March 31, 2012, accounting treatment andpresentation regarding deferred taxes are based on ASBJ PITF No. 5,“Practical Solution on Tax Effect Accounting under the Consolidation
Taxation System (Part1)” and ASBJ PITF No. 7, “Practical Solution on
Tax Effect Accounting under the Consolidation Taxation System (Part 2)”
under the assumption that the Company would adopt the consolidation
taxation system, as the Company received approval from Commissionerof the National Tax Agency of Japan to adopt the consolidated taxation
system effective from the following year.

(u)

Accounting changes(Changes in accounting policies with amendment of respective law or
regulation that are not distinguishable from changes in accounting estimates)
From the year ended March 31, 2013, in accordance with theamendment in Corporate Tax Law, the Company and its domestic
subsidiaries have changed its depreciation method for property andequipment. Assets acquired on or after April 1, 2012 are depreciatedusing the method prescribed in amended Corporate Tax Law. The effects
due to this change in the profit or loss for the year ended March 31, 2013
were not material.
(Adoption of accounting standards for asset retirement obligations)
Effective April 1, 2010, the Company and its domestic subsidiaries
have adopted “Accounting Standards for Asset Retirement Obligations”(ASBJ Statement No. 18, issued on March 31, 2008) and “Guidanceon Accounting Standards for Assets Retirement Obligations” (ASBJ
Guidance No. 21, issued on March 31, 2008). Under this accounting
standard, an asset retirement obligation is defined as a legal obligation
imposed either by law or contract as a result of an acquisition,
construction, development and/or normal operation of a tangible fixed
asset and is associated with the retirement of such tangible fixed asset. An
asset retirement obligation is recognized as the sum of the discounted cash
flows required for future asset retirement and is recorded in the period
in which such obligation arises if a reasonable estimate thereof can be
made. If a reasonable estimate of such asset retirement obligation cannot

16

(v)

Additional information(Adoption of accounting standard for presentation of comprehensive
income)Effective March 31, 2011, the Company has adopted “AccountingStandard for Presentation of Comprehensive Income” (ASBJ Statement
No. 25, issued on June 30, 2010) and “Revised Accounting Standard forConsolidated Financial Statements” (ASBJ Statement No. 22, revised on
December 26, 2008). As a result of the adoption of these standards, theCompany has presented the consolidated statement of comprehensive
income in the consolidated financial statements from the fiscal year
ended March 31, 2011.
(Adoption of accounting standards for accounting changes and error
corrections)
The Company and its domestic subsidiaries have adopted “AccountingStandards for Accounting Changes and Error Corrections” (ASBJ
Statement No. 24, issued on December 4, 2009) and “Guidance on
Accounting Standard for Accounting Changes and Error Corrections”(ASBJ Guidance No. 24, issued on December 4, 2009) for accountingchanges and corrections of prior period errors made after the beginningof the fiscal year ended March 31, 2012.

(w) Accounting standard issued but not yet adopted
The following standard and guidance have been issued but not yet
adopted or early adopted in these consolidated financial statements.
ASBJ issued ASBJ statement No. 26, “Accounting Standard for
Retirement Benefits,” and ASBJ Guidance No. 25, “Guidance on
Accounting Standard for Retirement Benefits,” issued on May 17, 2012,
which replaces the current standards and the other practical guidance.
(1) Major changes due to the issuance of the above new standard andrelated guidance are as follows:
Under the revised standard, actuarial differences and past service costs
that have not been recognized in profit or loss are recognized within
the net asset section after adjusting for tax effects, and the deficit or
surplus is recognized as a liability or asset without any adjustments.
In determining the method of attributing expected benefit to periods,
the revised standard allows a choice between the benefit formula
method and the straight-line method. The revised standard alsoamends the method for determining the discount rate.
(2) Effective dates
The revised standard and guidance will generally become effective
for the end of annual periods ending on or after March 31, 2014.
Amendments relating to determination of retirement benefit
obligations and current service costs, however, are effective from the
beginning of annual period ending on or after March 31, 2015.
(3) Effect of application of the standard
The Company and its domestic subsidiaries are currently inthe process of determining the effects of these standards on the
consolidated financial statements.

3. Financial Instruments
Information on financial instruments for the years ended March 31,
2013 and 2012 is set forth below.
(1) Qualitative information on financial instruments(a) Policies on Financial Instruments
The Seino Group implements its Cash Management System for theeffective investments or funding. The Company invests in low-risk andshort-term instruments in accordance with its internal fund management
rules. The Company raises funds mainly through indirect financing suchas bank loans for investments in facilities taking immediate liquidity into
consideration.
(b) Details of Financial Instruments and Risks
Trade receivables are exposed to the credit risk of customers. Someof the subsidiaries have receivables in foreign currency and are exposed toforeign currency fluctuation risk.
Marketable and investment securities, which consist of held-tomaturity securities and equity securities of business entities with which
the Seino Group has business relationships, are exposed to stock market
fluctuation risk.
Trade payables have general terms and conditions and are mostly
due within one year. However, some of the subsidiaries have them
denominated in foreign currency, which exposes them to foreign currency
fluctuation risk.
Some bank loans are used principally for capital investments are
exposed to interest rate fluctuation risk.
(c) Risk Management for Financial Instruments(1) Monitoring of credit risk
In accordance with internal policies for credit risk management,each subsidiary monitors the creditworthiness of its customers
and manages the terms and conditions of payment, due dates andremaining balances to reduce such risk. Regarding held-to-maturity
securities, the Company invests in high credit-rating bonds inaccordance with its internal fund management rules. As a result, therisk is de-minimis.
(2) Monitoring market risk
The Board of the Directors regularly monitors market risk basedon management methods which comply with internal market risk
management rules. For marketable securities, the Seino Group
monitors market prices every quarter and reviews the market
condition, financial position and business relationship of the issuers.
(3) Monitoring liquidity risk
The Company has a Cash Management System with its subsidiaries
and becomes the paying agent for the subsidiaries under the system.
The subsidiaries report their cash flow projections to the Company.
The Company has sufficient bank credit lines, including overdrafts,
enabling the Seino Group to manage liquidity risk.
(d) Supplemental information on fair values
The fair values of financial instruments are based on their market
prices. The fair values of financial instruments with no available market
prices are determined by using prices calculated in a reasonable manner.
However, since certain assumptions are used in the computation of
the reasonable estimates, the result may be different if alternative
assumptions are used.
(2) Fair values of financial instruments
The fair and carrying values of the financial instruments included in
the consolidated balance sheets at March 31, 2013 and 2012, other thanthose for which the fair value was extremely difficult to determine, are set
forth in the table below.

Carrying value

At March 31, 2013:
Cash and cash equivalents ¥Short-term investments
Trade receivables
Investment securities¥
Total assets
Trade payables¥
Short-term borrowings
Long-term bank loans,including current portion¥
Total liabilities

Trade payables¥
Short-term borrowings
Long-term bank loans,including current portion¥
Total liabilities

Difference

54,055 ¥22,879102,618
19,753
199,305 ¥54,055 ¥22,879102,618
19,753
199,305 ¥

—
—
—
—
—

57,767 ¥2,473

57,767 ¥
2,473

—
—

289
60,529 ¥288
60,528 ¥(1)(1)

Carrying value

At March 31, 2012:
Cash and cash equivalents ¥Short-term investments
Trade receivables
Investment securities¥
Total assets

Fair value
Millions of yen

Fair value
Millions of yen

Difference

57,595 ¥
7,231
102,079
16,175
183,080 ¥

57,595 ¥
7,232
102,079
16,175
183,081 ¥

—
1
—
—
1

56,421 ¥
2,475

56,421 ¥
2,475

—
—

457
59,353453
59,349 ¥(4)(4)

Carrying value
Fair value
Difference
Thousands of U.S. dollars

At March 31, 2013
Cash and cash equivalents $ 575,053 $ 575,053 $Short-term investments
243,394
243,394
Trade receivables
1,091,681
1,091,681
Investment securities
210,138
210,138$ 2,120,266 $ 2,120,266 $Total assets
Trade payables$
Short-term borrowings
Long-term bank loans,including current portion$
Total liabilities

—
—
—
—
—

614,543 $
26,309614,543 $
26,309——3,074
643,926 $3,063
643,915 $

(11)
(11)

Notes:i) Methods of measuring the fair value of financial instruments are as
follows:
Assets:(1) Cash and cash equivalents
As these instruments are settled within a short term and theirfair value and carrying value are nearly identical, their carrying
values are assumed as their fair values.
(2) Trade receivables
The carrying amount of installment sales receivables
approximates the fair value, which is based on the present valueof future cash flows through maturity discounting using an
estimated credit risk adjusted interest rate. The carrying amountsof trade receivables other than installment sales receivables
approximate fair value because of the short maturity of these
instruments.
(3) Short-term investments and investment securities
The fair value of marketable securities equals the quoted market
price, if available. The fair value of debt securities equals thequoted market price or the price provided by financial institutions.
Marketable and investment securities classified according to the
purpose for which they are held are described in Note 5.
Liabilities:(1) Trade payables
As these instruments are settled within a short term and theirfair values and carrying values are nearly identical, their carrying
values are assumed as their fair values.
(2) Short-term borrowings
As these instruments are settled within a short term and their17

fair values and carrying values are nearly identical, their carrying
values are assumed as their fair values.
(3) Long-term bank loans
The fair value of long-term debt is based on the present value of
future cash flows discounted using the current borrowing rate forsimilar debt of comparable maturity.
ii) The following were not included in the table above because the fairvalue was extremely difficult to determine:
Thousands of
U.S. dollars

Millions of yen

Carrying value:
Unlisted equity securities,
other than affiliates
Preferred equity securities

2013
¥

1,563
500
2,063

¥

¥
¥

2012

2013

1,580
500
2,080

$ 16,628
5,319$ 21,947

2013
Marketable securities:
Equity securities¥ 19,327
Bonds
302
124
Other
Total marketable securities
19,753
2,063
Other non-marketable securities¥ 21,816

Carryingvalue

Due in 1 year

At March 31, 2013:
Cash and cash equivalents ¥Short-term investments
Trade receivables
Investment securities –bonds and other¥Due
after 10years

54,055 ¥— ¥— ¥22,879——80,871
20,633
1,114

—
—
—

—
300
—
157,805 ¥ 20,933 ¥ 1,114 ¥——Due after Due after
1 years
5 years
through 5
through
Due in 1 yearyears
10 yearsThousands of U.S. dollars

Due
after 10years

At March 31, 2013:
Cash and cash equivalents $ 575,053 $— $— $Short-term investments
243,394——
Trade receivables
860,330
219,500
11,851
Investment securities –
—
3,191
—
bonds and other$ 1,678,777 $ 222,691 $ 11,851 $

—
—
—
—
—

iv) For the repayment schedule for long-term loans payable at March 31,
2013, see Note 9, “Short-term Borrowings and Long-term Debt.”

4. Inventories

Merchandise and finished products ¥Work in process
Raw materials and supplies
¥

2013
7,118
771
699
8,588

2012
7,829
876
759
¥ 9,4642013$ 75,724
8,202
7,436
$ 91,362

5. Investments
At March 31, 2013 and 2012, short-term investments consisted of thefollowing:Thousands of
U.S. dollars

Millions of yen

2013
Marketable securities:¥ 10,000
Bonds and otherTotal marketable securities
10,000Time deposits with an original
12,879maturity of more than three months¥ 22,879

2012
¥

¥

2013

147
147

$ 106,383
106,383

7,084
7,231

137,011$ 243,394

At March 31, 2013 and 2012, investment securities consisted of thefollowing:

18

Bonds included in investment securities:
At March 31, 2012¥

¥ 15,571
499
105
16,1752,080¥ 18,255$ 205,606
3,213
1,319
210,138
21,947$ 232,085

100

Fair value
Millions of yen

¥

101

Net
unrealized
gains

¥

1

Marketable securities classified as available-for-sale are stated at fairvalue with unrealized gains and losses excluded from current earnings
and reported as a net amount within the net assets account until realized.
At March 31, 2013 and 2012, gross unrealized gains and losses formarketable securities classified as available-for-sale were as follows:
Gross
Gross
unrealized unrealized
gains
lossesMillions of yen

Cost

At March 31, 2013:
Equity securities
Bonds
Other
At March 31, 2012:
Equity securities
Bonds
Other

¥

Fair andcarrying
value

8,784 ¥ 10,639 ¥
300
2
10,09927¥ 19,183 ¥ 10,668 ¥(96) ¥ 19,327
—
302
(2)
10,124(98) ¥ 29,753¥(70) ¥ 15,571
(2)
546
(9)
105
(81) ¥ 16,222¥

8,750 ¥
547
100
9,397 ¥

6,891 ¥
1
14
6,906 ¥

Thousands of U.S. dollars

At March 31, 2013:
Equity securities
Bonds
Other

$ 93,446 $ 113,181 $ (1,021) $ 205,606
3,192
21
—
3,213
107,436287(21) 107,702$ 204,074 $ 113,489 $ (1,042) $ 316,521

Thousands of
U.S. dollars

¥

2013

At March 31, 2013 and 2012 investments in and long-term loans toaffiliates consisted of the following:

Inventories at March 31, 2013 and 2012 were as follows.
Millions of yen

2011

While no marketable securities classified as held-to-maturity wererecorded at March 31, 2013, the fair value of marketable securities
classified as held-to-maturity and the related net unrealized gains at
March 31, 2012 were as follows:iii) The redemption schedule for financial assets with maturities at
March 31, 2013 was as follows:
Due after Due after
1 years
5 years
through 5
throughyears
10 yearsMillions of yen

Thousands of
U.S. dollars

Millions of yen

Millions of yen

2013
Investments accounted for by theequity method for significant
affiliates and at cost for others ¥Interest bearing long-term loans
¥

2,985
9
2,994

¥
¥

Thousands of
U.S. dollars

2012

2013

2,869
17
2,886

$ 31,755
96$ 31,851

6. Property and Equipment
At March 31, 2013 and 2012, property and equipment consisted of
the following:
Millions of yen

Thousands of
U.S. dollars

2013
2012
2013
Property and equipment, at cost:Land¥ 169,794 ¥ 171,564 $ 1,806,319
Buildings and structures
232,569
231,958
2,474,138
Vehicles98,13699,4401,044,000
Machinery and equipment
32,106
31,112
341,553
Construction in progress
252
100
2,681
438
438
4,660
Other
533,295
534,612
5,673,351
Less accumulated depreciation (262,928) (260,137) (2,797,106)
Total property and equipment ¥ 270,367 ¥ 274,475 $ 2,876,245

One of the consolidated subsidiaries elected to carry out a onetime revaluation to restate the cost of land used for business operations
at values reassessed on March 31, 2002, reflecting adjustments forland shape and other factors based on appraisal values issued by theJapanese National Tax Agency in accordance with the Law Concerning
Revaluation of Land. According to the law, the excess of the original
book values over reassessed values, net of the tax effect and minority
interests portions, is recorded in net assets as land revaluation decrement
account in the accompanying consolidated balance sheets. At March 31,
2013 and 2012, the difference between the carrying values of land used
for the business operations after revaluation over the current market
value of the land at the fiscal year-end amounted to ¥1,643 million($17,479 thousand) and ¥1,599 million, respectively.

Short-term bank loans, unsecured
with interest rates ranging
from 0.280% to 1.475% perannum at March 31, 2013
¥

2,450
2,475

Millions of yen

Some of the Company’s subsidiaries own land and facilities forrent at locations where the business branch was closed or redeployed
branches used to be. The carrying values in the consolidated balance
sheets, changes during the years ended March 31, 2013 and 2012
and the fair values of the rental properties were as follows:
Thousands of
U.S. dollars

Millions of yen

2013
2012
2013
Carrying value at the beginning of year ¥ 13,888 ¥ 14,393 $ 147,744
(245)
(505)
(2,606)
Net changes during the year
Carrying value at the end of year ¥ 13,643 ¥ 13,888 $ 145,138
Fair value at the end of year *¥ 17,609 ¥ 17,747 $ 187,330

2013
Loans from government agencies
and banks, repayable due
through 2107, with interest
rates ranging from 0.7% to 5.8%
per annum at March 31, 2013:
Secured¥Unsecured
Capitalized lease obligations
Less current portion¥

Thousands of
U.S. dollars

2013
2012
2013
Operating revenue¥ 1,438 ¥ 1,416 $ 15,298
241
237
2,564
Operating costs
1,197
1,179
12,734
Income from rental operations
Gain/(loss) of disposal of rental
property and other¥(707) ¥
(251) $ (7,521)

8. Asset Retirement Obligations
The asset retirement obligations are based upon estimated future
restoration obligations pursuant to office rental agreements. The asset
retirement obligations are calculated based upon the useful life designatedby law or the estimated office rental period and are discounted by theyield rate of government bonds.
Asset retirement obligations for the year ended March 31, 2013 and2012 were as follows:
Thousands of
U.S. dollars

Millions of yen

¥

¥

2013
2,463
5

¥

43
(39)
6
2,478 ¥

2012
2,491
21

2013
$ 26,202
53

45
458
(86)
(415)
(8)
64
2,463 $ 26,362

9. Short-term Borrowings and Long-term Debt
At March 31, 2013 and 2012, short-term borrowings consistedof the following:Thousands of
U.S. dollars

Millions of yen

2013
¥

33

2012
¥

25

2013
$

Thousands of
U.S. dollars

2012

227 ¥
62
25
314
(137)
177 ¥

2013

392 $
65
108
565
(248)
317 $

Millions of yen

Profit and loss recorded for rental properties for the fiscal years ended
March 31, 2013 and 2012 were as follows:
Millions of yen

25,958$ 26,309

2,415
659
266
3,340
(1,457)1,883

At March 31, 2013 and 2012, the following assets were pledged
as collateral for certain long-term debt, respectively:

Note: * Fair value was measured at the reasonable estimated value based
principally on a real estate appraisal or property tax bases.

Unsecured bank overdrafts withinterest rates of 1.3% perannum at March 31, 2013¥

At March 31, 2013, the Company and certain subsidiaries
had unsecured overdraft agreements with 13 banks. Under suchagreements, the Company and these subsidiaries were entitled
to withdraw up to ¥43,910 million ($467,128 thousand).
The Company and the subsidiaries were not obligated to pay
commitment fees on the unused portions of such overdraft facilities.
At March 31, 2013 and 2012, long-term debt consisted of thefollowing:

7. Real Estate for Rent

At the beginning of year
New obligations
Changes in estimatedobligations and accretion
Settlement payments
Other
At the end of year

2,440
2,473

351

2013
Land
Buildings and structures

¥

3,926
1,593

Thousands of
U.S. dollars

2012
¥

5,798
1,920

2013
$

41,766
16,947

The aggregate annual maturities of long-term debt as at March 31,
2013 were as follows:Year ending March 31,
2014
2015
2016
2017
2018
ThereafterThousands ofMillions of yen
U.S. dollars
¥
137
$
1,457
78
830
33
351
8
85
6
64
52
553
¥
314
$
3,340

10. Employee Retirement Benefits
The Company and its domestic subsidiaries have defined benefit
plans. The following table reconciles the benefit liability as ofMarch 31, 2013 and 2012:
Millions of yen

Thousands of
U.S. dollars

2013
2012
Reconciliation of benefit liability:
Projected benefit obligation * ¥ 64,878 ¥ 59,090 $Less fair value of pension plan
(2,792)(2,573)
assets at end of year
62,08656,517
Unrecognized past service cost31
8
Unrecognized actuarial(1,258)(5,526)
differences (loss)
Net amounts of employee
retirement benefit liability
recorded on the consolidated¥ 56,591 ¥ 55,267 $balance sheets

2013
690,191(29,702)660,489330(58,787)

602,032

Note:* Projected benefit obligation of certain subsidiaries was calculatedusing the simplified calculation method as permitted by the accounting
standard for employee retirement benefits.
19

The components of net periodic retirement benefit expenses for theyears ended March, 2013, 2012 and 2011 were as follows:
Millions of yen
2013

2012

2011

12. Lease Commitments
As lessee, the Seino Group has entered into various rental and noncancelable lease agreements for computer equipment and radio facilities
with contract terms from four to nine years. As disclosed in Note 2(h),these finance leases which commenced prior to April 1, 2008 havebeen accounted for with accounting treatment similar to that used for
operating leases. The aggregate minimum future lease payments undersuch non-cancelable finance lease agreements, including the imputed
interest portions, as at March 31, 2013 and 2012 were as follows:

Thousandsof U.S.
dollars
2013

Net periodic retirement
benefit expenses:
Service cost
¥ 3,288 ¥ 3,243 ¥ 3,608 $ 34,979
Interest cost
1,141
1,173
1,219
12,138
Expected return on
pension plan assets
—
(1)
(30)
—
Amortization of
actuarial differences
204
715
790
2,170
Amortization of past
service cost
304
247
269
3,234
(Gain) loss on abolishment of
retirement benefit plan (*1)
—
(149)
107
—
Lump-sum payment towithdraw from employees
pension fund (*2)
—
—
670
—
Retirement benefit
expenses (*3)
—
—
166
—
Special extra retirement
—
421
—
—
payments (*1)
Total retirement
benefit expenses ¥ 4,937 ¥ 5,649 ¥ 6,799 $ 52,521

Finance leases:
Due within one year
Due after one year

2.0%
2.0%
Principally
10 years
Principally
10 years

11. Contingent Liabilities
At March 31, 2013 and 2012, the Seino Group was contingently
liable for trade notes endorsed to affiliates and third parties andfor guarantees, including substantial guarantees, principally ofindebtedness of affiliates and third parties in the aggregate amount of¥1,767 million ($18,798 thousand) and ¥1,291 million, respectively.

20

12
3
15

2011
¥

19
15
34

¥

2013
$
$

128
32
160

In addition, the Seino Group has entered into various rental and leaseagreements for land and buildings to be used for truck terminals andwarehouses which are generally cancelable with a few months advancenotice, except for certain operating lease agreements. The aggregate
minimum future lease payments for such non-cancelable operating leaseagreements, including the imputed interest portion, as lessee at March
31, 2013 and 2012 were as follows.
Thousands of
U.S. dollars

Millions of yen

2013
Operating leases:
Due within one year
Due after one year

¥
¥

523
1,237
1,760

2012
¥
¥

517
1,336
1,853

2013
$

5,564
13,159$ 18,723

A certain subsidiary engaged in leasing operations as lessor enters into
various lease agreements with third parties principally for the lease ofvehicles. As disclosed in Note 2(h), the finance leases which commenced
prior to April 1, 2008 as lessor also have been accounted for withaccounting treatment similar to that used for operating leases. At March
31, 2013 and 2012 the aggregate future minimum lease commitments
to be received for such non-cancelable lease agreements, including theimputed interest, were as follows:
Thousands of
U.S. dollars

Millions of yen

2013
Finance leases:
Due within one year
Due after one year¥¥

Operating leases:
Due within one year
Due after one year

Major assumptions used in the calculation of the above
information for the years ended March 31, 2013, 2012 and 2011were as follows:
2011
Straight-line
method¥¥Notes: *1) Some of the subsidiaries abolished the tax-qualified pension plan forthe year ended March 31, 2011 and some of the other subsidiaries
abolished the lump-sum retirement benefit plans for the year
ended March 31, 2012. Then, these transactions were accounted
for in accordance with the implementation guidance of accounting
for transfer between retirement benefit plans and gain or loss
on abolishment of retirement benefit plan was recorded as otherincome/(expenses). In addition, some subsidiaries paid special extra
retirement benefits under the early retirement program for the year
ended March 31, 2012.
*2) For the purpose of overhauling the employee retirement benefit
plan, some of the Company’s subsidiaries withdrew from the multiemployer pension program established by the subsidiaries and other
employers on February 28, 2011. As a result, lump-sum payments
to withdraw from the employee pension fund of ¥670 million werecharged to such subsidiaries for the year ended March 31, 2012.
*3) One of the Company’s subsidiaries changed the calculation methodfrom the simplified method to the principal method by merging withanother subsidiary and calculating in accordance with the principal
method for the year ended March 31, 2011. As a result, benefit
liabilities increased and were accounted for as retirement benefit
expenses of ¥166 million for the year ended March 31, 2011.

2013
2012
Method attributing the projected Straight- Straight-line
methodbenefits to periods of services line method
Principally
Discount rate
2.0%
1.0%
Expected rate of return on—
2.0%
pension plan assets
Principally Principally
Amortization of past service cost
10 years
10 years
Amortization of actuarial
Principally Principally
10 years
10 yearsdifferences

Thousands of
U.S. dollars

Millions of yen

2013

¥
¥

—
—
—
268
580
848

2012
¥
¥
¥
¥

12
—
12
268
644
912

2013
$
$
$
$

—
—
—
2,851
6,170
9,021

13. Net Assets(a)Under the Japanese Corporate Law (the “Law”) and regulations, theentire amount paid for new shares is required to be designated as common
stock. However, a company may, by a resolution of the Board of Directors,
designate an amount not exceeding one half of the price of the new sharesas additional paid-in capital, which is included in capital surplus.
Under the Law, in cases in which a dividend distribution of surplus
is made, the smaller of an amount equal to 10% of the dividend or theexcess, if any, of 25% of common stock over the total of additional paid-in
capital and legal earnings reserve must be set aside as additional paid-in
capital or legal earnings reserve. Legal earnings reserve is included inretained earnings in the accompanying consolidated balance sheets.
Under the Law, legal earnings reserve and additional paid-in capital
could be used to eliminate or reduce a deficit by a resolution of theshareholders' meeting. Additional paid-in capital and legal earnings
reserve may not be distributed as dividends. All additional paid-in capitaland all legal earnings reserve may be transferred to other capital surplus
and retained earnings, respectively, which are potentially available fordividends.
At March 31, 2013 and 2012, capital surplus consisted principally(b)of additional paid-in capital. In addition, retained earnings included
legal earnings reserve of the Company in the amount of ¥4,262 million($45,340 thousand) at March 31, 2013 and 2012.
The maximum amount that the Company can distribute as dividends
is calculated based on the non-consolidated financial statements of theCompany in accordance with Japanese laws and regulations.
At the annual shareholders’ meeting held on June 26, 2013, theshareholders approved cash dividends of ¥11 per share, amounting to¥2,189 million ($23,287 thousand). The appropriation has not been
accrued in the consolidated financial statements as of March 31, 2013as such appropriations are recognized in the period in which they areapproved by the shareholders.

14. Income Taxes
The tax effects of temporary differences that give rise to a significant
portion of deferred tax assets and liabilities at March 31, 2013 and 2012were as follows:
Millions of yen

2013

Thousands of
U.S. dollars

2012

2013
Deferred tax assets:
Employee retirement benefit liability ¥ 21,015 ¥ 20,499 $ 223,564
Enterprise tax accruals
336
439
3,574
Accrued bonuses
3,467
3,367
36,883
Intercompany capital gains
1,028
999
10,936
Operating loss carryforwards
590
2,171
6,277
Loss on assets transferred
1,471
1,543
15,649Impairment loss on fixed assets
14,92913,185
158,819
Allowance for doubtful accounts
173
102
1,840
4,383
5,776
46,628
Other
47,39248,081
504,170(18,820)(20,316)(200,213)
Less valuation allowance
28,572
27,765
303,957
Deferred tax liabilities:
Deferred capital gains
5,870
5,949
62,447
Unrealized gains on available3,363
2,288
35,776
for-sale securities
Valuation adjustments for
12,373
12,991
131,628
consolidation
315
329
3,351
Other
21,921
21,557233,202¥ 6,651 ¥ 6,208 $ 70,755
Net deferred tax assets
At March 31, 2013 and 2012, deferred tax assets and liabilities wererecorded as follows:
Millions of yen

2013
Deferred tax assets:
Current
Noncurrent
Deferred tax liabilities:
Current
Noncurrent

¥

4,627
9,487
—
7,463

¥

Thousands of
U.S. dollars

2012

2013

5,073
9,353

$ 49,223
100,926—
8,218—
79,394In assessing the realizability of deferred tax assets, management of the
Seino Group considers whether some portion or all of the deferred tax
assets will not be realized. The ultimate realization of deferred tax assets
is dependent upon the generation of the future taxable income during
the periods in which those temporary differences become deductible. At
March 31, 2013 and 2012, a valuation allowance was provided to reducedeferred tax assets to the extent that the management believed that theamount of the deferred tax assets was not realizable.
A reconciliation of the differences between the Japanese statutory tax
rate and the effective income tax rate on pretax income reflected in theaccompanying consolidated statements of income for the years ended
March 31, 2013, 2012 and 2011 was as follows:

Percentage of pretax income

2013
37.2%

Japanese statutory tax rate
Increase (decrease) due to:Permanently nondeductible expenses
0.7
Tax exempt income(0.4)
Local minimum taxes - per capita levy 3.7
Amortization of goodwill andnegative goodwill(6.3)
Equity in net (income)/loss of affiliates (0.5)
Changes in valuation allowance(6.3)
Adjustment of deferred tax assets
and liabilities for income tax ratechanges
—
0.6
Other
28.7%
Effective income tax rate

2012
40.4%

2011
40.4%

0.7
(0.8)
3.5

1.0
(1.0)
4.9

(6.9)
(0.1)
(11.6)(16.3)
0.1
3.9

4.0
1.2
32.9%

—
(0.1)
32.9%

On December 2, 2011, amendments to the Japanese tax regulations
were enacted into law. As a result of these amendments, the statutory
income tax rate for the Company will be reduced to 37.2% for years
beginning on and after April 1, 2012 and 34.8% for years beginning on
and after April 1, 2015. Based on the amendments, the statutory income
tax rates utilized for the measurement of deferred tax assets and liabilities
expected to be settled or realized from April 1, 2012 to March 31, 2015
and on and after April 1, 2015 are 37.2% and 34.8%, respectively, as ofMarch 31, 2012. Due to these changes in statutory income tax rates, netdeferred tax assets decreased by ¥397 million as of March 31, 2012 anddeferred income tax expense recognized for the year ended March 31,
2012 increased by ¥740 million from the amounts that would have beenreported without the amendments.

15. Comprehensive Income
Amounts reclassified to net income (loss) in the current periodthat were recognized in other comprehensive income in the current
or previous periods and the tax effects for each component of othercomprehensive income for the years ended March 31, 2013 and2012 were as follows:
Millions of yen

Thousands of
U.S. dollars

2013
2012
2013
Unrealized gains (losses) on securities
Increase (decrease) during the year
¥ 3,742 ¥ (244) $ 39,808
3
18
32
Reclassification adjustments
Subtotal, before tax
3,745
(226)
39,840(1,078)447(11,468)
Tax effectSubtotal, net of tax
2,667
221
28,372Foreign currency translation adjustments
Increase (decrease) during the year
Reclassification adjustments
Subtotal, before tax
Tax effectSubtotal, net of tax

96
—
96
—
96

(44)
—
(44)
—
(44)

1,021
—
1,021
—
1,021

Shares of other comprehensive income ofaffiliates accounted for using equity method
Increase (decrease) during the year
2—
Reclassification adjustments
Subtotal
2
Total other comprehensive income ¥ 2,765

—
—
—
177

21
—
21
$ 29,414¥

Providing the corresponding information for the year ended March
31, 2011 was not required under the accounting standard forpresentation of comprehensive income due to an exemption applicableto the first year in which the new standard is adopted. Thus, suchinformation is not disclosed herein.

16. Supplementary Cash Flows Information
Non-cash investing and financing activities for the year ended
March 31, 2011 were as follows:
Millions of yen
Asset retirement obligations
recorded for the fiscal year

¥

2,491

21

17. Segment Information
1.

General information about reportable segments
The reportable segments are constituent business units of the Seino Group for which separate financial information is obtained and examined regularly
by the Board of Directors to evaluate business performance. The Seino Group has established the “Business Promotion Department” as a holding company.
Each subsidiary plans and operates each business under its control. In addition, some of the subsidiaries engage in leasing for real estate services to make gooduse of their facilities. Therefore, the Seino Group consists of business segments that are based on the business operated by each subsidiary. The Seino Group’sreportable segments are “transportation services,” “vehicle sales,” “merchandise sales” and “leasing for real estate services.”

2.

Basis of measurement about reportable segment profit or loss, segment assets and other material items
The principles of segment accounting are basically the same as those described in Note 2, “Summary of Significant Accounting Policies.” Intersegment
operating revenues and transfer amounts are based on the market price.

3.

Information about reportable segment profit or loss, segment assets and other material items
Information about reportable segment for the years ended March 31, 2013, 2012 and 2011 is summarized as follows:

For the year 2013:
Operating revenue:
External customers
Intersegment sales or transfer
Total operating revenue
Segment income (*2)

Transportation
services¥¥

Segment assets (*3)¥
Depreciation
Amortization of goodwill
Investments in affiliates accounted
for using the equity method
Increase in tangible and intangible
fixed assets
For the year 2012:
Operating revenue:
External customers¥
Intersegment sales or transfer
Total operating revenue¥
Segment income (*2)
Segment assets (*3)¥
Depreciation
Amortization of goodwill
Investments in affiliates accounted
for using the equity method
Increase in tangible and intangible
fixed assets
For the year 2011:
Operating revenue:
External customers¥
Intersegment sales or transfer
Total operating revenue¥
Segment income (*2)
Segment assets (*3)¥
Depreciation
Amortization of goodwill
Investments in affiliates accounted
for using the equity method
Increase in tangible and intangible
fixed assets
For the year 2013:
Operating revenue:
External customers
Intersegment sales or transfer
Total operating revenue
Segment income (*2)

Vehicle sales

Merchandise
sales

Leasing for realestate services

Other (*4)

Total

Adjustments(*1)

Consolidated

371,546 ¥
1,536
373,082
6,918 ¥

96,148 ¥
7,908
104,056
5,442 ¥

32,457 ¥25,09457,551736 ¥Millions of yen
1,438 ¥
14,596 ¥
—
9,394
1,438
23,9901,215 ¥
495 ¥

379,649 ¥
12,639415

97,683 ¥1,732
78

14,357 ¥65—

12,653 ¥48—

19,129 ¥256
6523,471 ¥
14,740
499

2,783

—

—

107

—

2,890

(2)

2,888

9,877

3,524

14

25

349

13,789(336)

13,453

370,592 ¥1,574
372,166
7,240 ¥
384,612 ¥
13,559419

87,755 ¥
7,203
94,9584,464 ¥
95,399 ¥1,613
78

30,144 ¥25,49855,642723 ¥
14,421 ¥79—

1,416 ¥—
1,416
1,196 ¥
13,006 ¥47—

14,370 ¥10,64525,015697 ¥
18,397 ¥275
6504,277 ¥
44,920549,197
14,320 ¥525,835 ¥
15,573503— ¥(44,920)(44,920)(453) ¥
(24,872) ¥(249)—

504,277—
504,277
13,867500,963
15,324
503

2,724

—

—

67

—

2,791

(3)

2,788

12,798

2,726

38

2

121

15,685(303)

15,382368,771 ¥1,438
370,2096,494 ¥
385,891 ¥
14,913417

87,075 ¥7,352
94,4273,830 ¥
90,393 ¥1,620
78

27,104 ¥24,55851,662561 ¥
13,053 ¥79—

1,429 ¥—
1,429
1,197 ¥
12,638 ¥63—

13,233 ¥14,70027,933780 ¥
19,421 ¥260
6

497,612 ¥48,048545,660
12,862 ¥521,396 ¥16,935501— ¥(48,048)(48,048)(536) ¥
(33,695) ¥(240)—

497,612—497,612
12,326
487,701
16,695
501

2,891

—

—

2

—

2,893

(2)

2,891

22,001

3,361

105

4

257

25,728(443)

25,285

Vehicle sales

Merchandise
sales

Leasing for realestate services

Adjustments(*1)

Consolidated

Transportation
services$ 3,952,617 $ 1,022,851 $
16,34084,1283,968,957
1,106,979$
73,596 $57,894 $Segment assets (*3)
$ 4,038,819 $ 1,039,181 $Depreciation
134,457
18,426
Amortization of goodwill
4,415
830
Investments in affiliates accounted
for using the equity method
29,607—
Increase in tangible and intangible
105,074
37,489fixed assets

345,287
266,958
612,245
7,830

Other (*4)

516,185 ¥
43,932560,117
14,806 ¥— ¥(43,932)(43,932)(460) ¥

516,185—
516,185
14,346(13,004) ¥(254)—

510,467
14,486499

Total

Thousands of U.S. dollars$
15,298 $ 155,277 $ 5,491,330 $—
99,936467,362
15,298255,213
5,958,692$
12,925 $5,266 $
157,511 $— $ 5,491,330(467,362)—(467,362) 5,491,330(4,894) $ 152,617

152,734 $
692—

134,606 $511—

203,500 $ 5,568,840 $ (138,340) $ 5,430,500
2,723
156,809(2,703)
154,106
64
5,309
—
5,309

—

1,138

—

30,745(22)

30,723

149

266

3,713

146,691(3,574)

143,117

Note: *1) Adjustment column in the table above represents principally the elimination of intersegment transactions or balances, except for (*2) and (*3).
*2) Segment income is reconciled to operating income in the accompanying consolidated statements of income. Segment income in the adjustments column represents
unallocated general corporate expenses which were not assigned to specific reportable segments, net of intersegment transactions.
*3) Segment assets in the adjustments column represent unallocated general corporate items which were not assigned to specific reportable segments such as cash, shortterm and long-term investments in securities, net of intersegment balances.
*4) Other segment represents the business segment not included in the reportable segments, and includes the information services business, the housing sales business,the passenger transportation business and other business.
22

(Related information)
1. Information about products and services
The Company has not disclosed information about products and services because the Company has disclosed the same information above.
2. Information about geographic areas(1) Operating revenue
The Company has omitted the disclosure of operating revenue by geographic area because operating revenue to external customers in Japan accounts
for more than 90% of the amount of operating revenue reported in the consolidated statements of income.
(2) Property and equipment
The Company has omitted the disclosure of property and equipment by geographic area because property and equipment in Japan account for morethan 90% of the amount of property and equipment reported in the consolidated balance sheets.
3. Information about major customers
The Company has not disclosed information about major customers because no customer had contributed 10% or more to operating revenue in the consolidated
statements of income.
4. Information on impairment loss by reportable segments:
Transportation
services

Impairment loss:
For the year 2013
For the year 2012
For the year 2011
Impairment loss:
For the year 2013
5.

Merchandise
sales

Leasing for realestate services¥

1,422 ¥
833
2,518

84 ¥
247
145

Millions of yen
— ¥
691 ¥
—
—
—
366

$

15,128 $894 $Thousands of U.S. dollars— $7,351 $

Other

Total

2 ¥
13
—

2,199
1,093
3,029

21 $

23,394

Information on goodwill and negative goodwill incurred due to business combinations before April 1, 2010 by reportable segments:
Transportation
services

6.

Vehicle sales

Vehicle sales

Merchandisesales

For the year 2013:
Amortization of goodwill¥
Amortization of negative goodwill

415 ¥
2,972

78 ¥
—

As of March 31, 2013:
Balance of goodwill
Balance of negative goodwill

17
2,975

59
—

For the year 2012:
Amortization of goodwill¥
Amortization of negative goodwill

419 ¥
3,168

As of March 31, 2012:
Balance of goodwill
Balance of negative goodwill

Leasing for realestate services

Millions of yen
— ¥
19

Other

Total

— ¥
—

6 ¥
64

499
3,055

—
9

—
—

2
61

78
3,045

78 ¥
—

— ¥
20

— ¥
—

6 ¥
67

503
3,255

432
5,947

137
—

—
28

—
—

8
125

577
6,100

For the year 2011:
Amortization of goodwill¥
Amortization of negative goodwill

417 ¥
3,265

78 ¥
1,986

— ¥
19

— ¥
—

6 ¥
104

501
5,374

As of March 31, 2011:
Balance of goodwill
Balance of negative goodwill

824
9,115

215
—

—
48

—
—

14
192

1,053
9,355

Transportation
services

Vehicle sales

Merchandise
sales

Leasing for realestate services

For the year 2013:
Amortization of goodwill$
Amortization of negative goodwill
As of March 31, 2013:
Balance of goodwill
Balance of negative goodwill

Other

Total

4,415 $
31,617

Thousands of U.S. dollars
830 $
— $
— $
—
202
—

64 $
681

5,309
32,500181
31,649

628
—

21
648

830
32,393—96——

Merchandise
sales

Leasing for realestate services

Information on gain on negative goodwill by reportable segments:
Transportation
services

Gain on negative goodwill:
For the year 2013
For the year 2012
For the year 2011

¥

20 ¥
—
—

Transportation
services

Gain on negative goodwill:
For the year 2013

$

213 $

Vehicle sales

16 ¥
—
—
Vehicle sales

Millions of yen— ¥——Merchandise
sales

Other

— ¥
—
—

Leasing for realestate services

Thousands of U.S. dollars
170 $
— $
— $

Total

— ¥
—
33
Other

36
—
33
Total

— $

383

Additional information(Accounting standard for segment information)
Effective April 1, 2010, the Company has adopted “Accounting Standard for Disclosures about Segments of an Enterprise and Related Information”(ASBJ Statement No. 17, issued on March 27, 2009) and “Guidanceon Accounting Standard for Disclosures about Segments of an Enterprise and Related Information”(ASBJ Guidance No. 20, issued on March 21, 2008).

23

Report of Independent Auditors
Independent Auditors’ Report
To the Board of Directors of
SEINO HOLDINGS CO., LTD.:
We have audited the accompanying consolidated financial statements of SEINO HOLDINGS Co., LTD. (the “Company”) and its subsidiaries,
which comprise the consolidated balance sheets as at March 31, 2013 and 2012, and the consolidated statements of income, consolidated
statements of comprehensive income, consolidated statements of changes in net assets and consolidated statements of cash flows for each of theyears in the three-year period ended March 31, 2013, and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting
principles generally accepted in Japan, and for such internal control as management determines is necessary to enable the preparation of
consolidated financial statements that are free from material misstatements, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits inaccordance with auditing standards generally accepted in Japan. Those standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements.
The procedures selected depend on our judgement, including the assessment of the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation andfair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, while
the objective of the financial statement audit is not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made bymanagement, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OpinionIn our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company and its
subsidiaries as at March 31, 2013, and 2012, and their financial performance and cash flows for each of the years in the three-year period ended
March 31, 2013, in conformity with accounting principles generally accepted in Japan.
Emphasis of Matter
Without qualifying our opinion, we draw attention to Note 2(u) of the Notes to Consolidated Financial Statements. Effective from theyear ended March 31, 2011, the Company and its domestic subsidiaries have adopted the new accounting standard for the asset retirement
obligations.
Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31, 2013 are presented
solely for convenience. Our audit also included the translation of yen amounts into U.S. dollar amounts and, in our opinion, such translation has
been made on the basis described in Note 1 of the Notes to Consolidated Financial Statements.

August 27, 2013
Nagoya, Japan

24

Seino GroupThe Seino Group consists of Seino Holdings Co., Ltd. and 59 consolidated subsidiaries and 14 affi liates. The Seino
Group operates in five business segments: transportation services, vehicle sales, merchandise sales, leasing for realestate services and other services. The business relationship in the Seino Group is as follows.

Clients
Collection and
Delivery

VehiclesSales and Repairs

Domestic
Transportation
Seino Transportation Co., Ltd.
*1
Hokkaido Seino Transportation Co., Ltd. *1
Iwate Seino Transportation Co., Ltd.
*1
Miyagi Seino Transportation Co., Ltd.
*1
Kanto Seino Transportation Co., Ltd.
*1
Seibu Transportation Co., Ltd.
*1
Kanagawa Seino Transportation Co., Ltd. *1
Izu Seino Transportation Co., Ltd.
*1
Nohi Seino Transportation Co., Ltd.
*1
Tokai Seino Transportation Co., Ltd.
*1
Mie Seino Transportation Co., Ltd.
*1
Hinomaru Seino Transportation Co., Ltd. *1
Shikoku Seino Transportation Co., Ltd. *1
Kyushu Seino Transportation Co., Ltd. *1
Okinawa Seino Transportation Co., Ltd. *1
Seino Tsu-un Transportation Co., Ltd.
*1
Seino Express Co., Ltd.
*1
Seino Hikkoshi Co., Ltd.
*1
Seino Hokkaido Express Co., Ltd.
*1
Seino Tokyo Express Co., Ltd.
*1
Seino Kanagawa Express Co., Ltd.
*1
Seino Hokuriku Express Co., Ltd.
*1
Seino Nagoya Express Co., Ltd.
*1
Seino Osaka Express Co., Ltd.
*1
Seino ST Service Co., Ltd.
*1
S&N Logistics Co., Ltd.
*1
Toyo Co., Ltd.
*1
Katsunuma Transportation Co., Ltd.
*1
Darumaya Transportation Co., Ltd.
*1
Central Logistics Co., Ltd.
*1
Eco Alliance Co., Ltd.
*1
COCONET CO., LTD.
*1
ASAHI CONPOU CO., LTD.
*1
Saitama Seino Transportation Co., Ltd. *2
Tokyo Seino Transportation Co., Ltd.
*2
Mikawa Seino Transportation Co., Ltd.
Ensyu Seino Transportation Co., Ltd.
Kumamoto Seino Transportation Co., Ltd.
Tango Seino Transportation Co., Ltd.
Box Charter Co., Ltd.
Cosmo Hokuriku Haiso Center Co., Ltd.

Sales

Services

Real Estate
Leasing

Vehicle Sales

Merchandise

Real Estate Leasing Services

Toyota Corolla Gifu Co., Ltd. *1
Gifu Hino Motor Co., Ltd. *1
Netz Toyota Gifu Co., Ltd. *1
Asahi Enterprise Co., Ltd. *1*1
Jms Gifu Co., Ltd.
Shiga Hino Motor Co., Ltd. *1
Seino Auto Service Kanto *1
Co., Ltd.
Seino Auto Lease Co., Ltd. *1*1
Tokyo Sharyou Co., Ltd.
Toyota Gifu Parts Dsitributor
Co., Ltd.
Subic GS Auto, Inc.

Seino Trading Co., Ltd. *1
Seino Sangyo Co., Ltd. *1

Seino Transportation Co., Ltd.
*2
Arts Co., Ltd.

Marchandise
sales

Leasing forReal Estate Services

Information Services

VehicleSales*1

Japan Logistics
Development Co.,
Ltd.

*1

OthersInternational
Transportation
Seino Logix Co., Ltd.

Seino Information
Service Co., Ltd.

*1

United-Seino Transportation *1(Malaysia) Sdn. Bhd.
Seino Customs Clearance
Service Co., Ltd.

*1

Schenker-Seino Co., Ltd.

*2

*1
Asahi Agency Co., Ltd. (Advertising agency)
Suito Travel Co., Ltd. (Passenger transportation, Travel agency) *1*1Seino Engineering Co., Ltd. (Construction)*1
Seino Family Co., Ltd. (Insurance agency service)*1
Seino Staff Service Co., Ltd. (Personnel service)*1
Toyota Home Gifu Co., Ltd. (Housing sales)*1Asahi Create Co., Ltd. (Comprehensive printer)
Seino Business Support Co., Ltd. (Business support services) *1*1
Seino Ecotrading Inc. (Wholesale of recycled resources)
Seino Financial Co., Ltd. (Settlement service representative) *1
Toyota Rent-A-Lease Gifu Co., Ltd. (Rental and lease)
Gifu Automotive Dealer Plaza Co., Ltd. (Rental office)

OtherTransportation
Services

SEINO HOLDINGS Co., Ltd.
Note *1: Consolidated subsidiaries*2: Affiliates (under the equity method)
Companies except those mentioned above are affiliates
under the cost method.

59
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10
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