The Road to Success
Seino Holdings Co., Ltd.
Annual Report 2007
Year Ended March 31, 2007

Profile
Seino Holdings Co., Ltd. began business as a trucking
company in 1930, and was incorporated in 1946. Based in
the city of Ogaki, Gifu Prefecture, located nearly at thecenter of the Japanese archipelago, we are a leading trucking
company, expanding in step with the growth of the Japanese
economy and the development of the nation’s extensive
expressway network. On October 1, 2005, the Company
transferred its transportation business and other operations to a
new company—which has taken the original name Seino
Transportation Co., Ltd.—and was renamed Seino Holdings,
Co., Ltd., adopting a pure leasing services holding company
structure.
The Seino Group currently consists of the pure holding
company Seino Holdings, 50 consolidated subsidiaries, and 10
affiliates engaged in transportation services, vehicle sales, leasing
for real estate services and other services.
In its mainstay transportation services business, the Company
has taken steps to optimize its network, all the while adhering to its“customer-first” principle. As of March 31, 2007, Seino offers
efficient transportation services throughout Japan via its 415
domestic terminals, a fleet of 21,466 trucks, and a trucking networkthat averages 5,000 routes daily. Overseas, Seino has transferred its
international forwarding operations to Schenker-Seino Co., Ltd., ajoint venture established with Schenker AG in Germany. Throughthis alliance, the Company aims to bolster its competitiveness by
optimizing the synergies of Seino’s domestic transportation
network and Schenker’s global network and cutting-edge IT
systems.
The Seino Group focuses on its three core businesses: theLess-than-Truck Load (LTL)commercial cargo transportation
business, the logistics business, and thevehicle sales business. The Group iscommitted to providing rapid services
that deliver total customer satisfaction,
and will proceed down the “Road to
Success” to become a highly profitablecompany through initiatives 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

Status of New G5 Plan

4

CSR Topics

6

Review of Operations

8

Financial Review

10

Six-year Summary

11

Consolidated Balance Sheets

12

Consolidated Statements of Operations

13

Consolidated Statements of Changes in Equity

14

Consolidated Statements of Cash Flows

15

Notes to Consolidated Financial Statements

16

Report of Independent Auditors

24

Seino Group

25

Board of Directors(As of June 26, 2007)
Chairman andChief Executive Officer
Yoshikazu Taguchi

Outside Directors
Yuji Tanahashi
Kenjiro Ueno

President andChief Operating Officer
Yoshitaka Taguchi

Standing Statutory
Auditors
Yoshio Matsuoka
Yoshinori Takigawa

Directors
Takao Taguchi
Masataka Nasuno
Mitsuo Mekata
Shizutoshi Otsuka
Hidemi Maruta

Outside Statutory
Auditors
Fumio Kato
Eiji Kasamatsu

Seino Holdings Co., Ltd.

Financial Highlights
For the Years Ended March 31, 2007, 2006 and 2005

(Billions of Yen)

Thousands of
U.S. Dollars 2

Millions of Yen
2007

CONSOLIDATED BASIS:
Operating revenue
Operating income
Income (loss) before income taxes and minority interests
Net income (loss)
Net income (loss) per share (in the whole yen and dollars):-Basic-Diluted

2006

2005

2007

¥ 449,486 ¥ 427,520 ¥ 423,833
10,796
10,082
12,047
14,579(1,188)22,144
8,797(8,334)
14,273$ 3,809,203
91,492
123,551
74,551¥$44.71 ¥−

(43.35) ¥
−

72.26
70.67

0.38
−

2005

2006

2007

Net income (loss)(Billions of Yen)

20

Thousands of
U.S. Dollars 2

Millions of Yen
2007

2006

2005

2007

15
10
5

CONSOLIDATED BASIS:
Cash and cash equivalents, and short-term investments
Property and equipment, net of accumulated depreciation
Total assets
Long-term debt and other long-term liabilities
Net assets¥ 52,421 ¥ 62,582 ¥ 70,441
242,374
225,815
248,832
468,006
446,933
470,492
76,17869,68959,330292,848
278,916
283,352$ 444,246
2,054,017
3,966,153
645,576
2,481,763

Net assets 3 per share (in the whole yen and dollars)¥1,451.36 ¥1,420.60 ¥1,457.82

$

12.30

0
-5
-10
2005

2006

2007

2006

2007

(Billions of Yen)

(Notes) 1. Yen and U.S. dollar amounts have been rounded off to the nearest whole number.
2. U.S. dollar amounts are translated at ¥118 = US$1, solely for the convenience of readers.
3. For details regarding net assets for the fiscal year ended March 31, 2007, see (s-i) on page 18.

Corporate Data
(As of March 31, 2007)

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

2005

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
MISUZU Audit Corporation1

Message from the Management

To Our Shareholders, Customers and Friends
On November 1, 2006, Seino Holding Co., Ltd. marked the 60th anniversary of its incorporation.
We take this opportunity to express our gratitude to our stakeholders, including shareholders and otherinvestors, for the consistent support they have shown us over the years. It is our pleasure to present theresults for the fiscal year ended March 31, 2007 (from April 1, 2006 to March 31, 2007).

■ Operating Environment
The Japanese economy was able to sustain amoderate recovery in the fiscal year under review.
Rising capital investment, improved employment
and robust exports outweighed negative factors suchas lackluster personal spending and surging prices
of crude oil and other raw materials.
In the transportation industry, however,
although the freight market situation began to pickup, customer requests became increasingly
sophisticated and competing service from othercompanies remained severe. Also, additional costs
such as higher fuel costs, expenses to ensure
adherence to safety and environmental standards,
and expenses associated with strategies to respondto recent revisions to the Road Traffic Law could
not be reflected in freight charges. Consequently,
the operating environment continued to be
extremely challenging.

■ Initiatives Taken During FY2007 andResults
In this environment, the Seino Groupendeavored to expand its business by primarily
focusing on the G5 (Group 5) Plan, the Group’s
medium-term management plan. (FY2007 was thesecond year of the Plan, which runs from April
2005 to March 2008.)
To improve the value and profitability of theoverall Group, and to optimize capital allocation
through stronger equity ties within the Group, theCompany instituted business restructuring.
Specifically, we included seven group companies as
consolidated subsidiaries.
Meanwhile, Seino Business Support Co., Ltd.,established in January 2006 to consolidate backoffice operations of Seino Group companies, hasbegan to deliver significant cost savings.
The Group is united in its commitment towardachieving the G5 Plan, its medium-term
management plan. For instance, we are creating
added value by placing the Company, a pure2

holding company, at the center of Groupmanagement. Moreover, never forgetting the“customer-first” principle on which we were
founded, we have called on the entire Group to
focus on the basics, with a commitment todelivering customer satisfaction as a means ofsustaining our expansion and contributing to local
communities.
As a result of these initiatives, consolidated
operating revenue for the year under review
increased 5.1% from the previous year to ¥449,486
million owing to an increase in the number ofconsolidated subsidiaries. Operating income rose
7.1% to ¥10,796 million and net income stood at¥8,797 million.

■ Focusing on the G5 Plan
In the transportation industry, Seino’s corebusiness segment, despite the ongoing economic
recovery, the total volume of freight handled isunlikely to increase. Competition is also expected
to become increasingly fierce with the continued
increase in the number of industry players,investments to meet safety and environmental
standards, and the effects of revisions to the Road
Traffic Law and the Law Concerning the Rational
Use of Energy.
Although the transportation business confronts
a difficult management environment, as outlined
above, actual total domestic freight distributed via
trucks, including both commercial and private
trucks, is believed to amount to 5.3 billion tons
annually. To capture a share of this immense
volume, we will remain focused on our mediumterm management plan, the G5 Plan, during its final
year. By concentrating on the two main themes,
namely, secure earings through sales operations
focusing on profits, and cost cutting through the
pursuit of efficiency, we will continue to improve
management efficiency and establish a profitablestructure.
In the vehicle sales business, with ever greater

competition among dealers, there are concerns thatsales of new vehicles are likely to be sluggish. In
response, the Company will aim to step up sales ofused cars and maintenance services to generate
steady revenues.
As a result of these measures, the Company
anticipates operating revenue of ¥450,000 million
and net income of ¥9,000 million for the term
ending on March 31, 2008.

■ Corporate GovernanceSeino employs a corporate auditor system. As
of March 31, 2007, the Board of Directors consistedof 10 directors, including two outside directors. In
addition to making swift and appropriate decisions
on such important matters as business restructuring
and strategic investments, the Board of Directors istaking important steps to strengthen auditing
functions and achieve greater managementtransparency.
The Company also has four corporate auditors,social including two outside auditors. Auditors arecommitted to improving compliance and enhancing
trust that society has in the Company through suchactivities as attending meetings of the Board of
Directors, conferences of directors, and otherimportant gatherings, and carrying out auditing
operations.

August 2007

Yoshikazu Taguchi
Chairman and Chief Executive Officer■ To Our Shareholders
In keeping with its basic business policy,
Seino seeks to enhance shareholders’ equity andimprove profitability from a long-term perspective,
while maintaining stable dividends. Accordingly,
Seino has maintained a regular annual cash
dividend per share of ¥11.00 for the fiscal year
ended March 31, 2007, the same amount as in theprevious year.
In accordance with its new medium-term
management plan, management is fully committed
to making Seino the preeminent freighttransportation company in Japan, while at the sametime raising corporate and shareholder value. We
take this opportunity to ask our shareholders,customers and friends for their continued support.

Yoshitaka Taguchi
President and Chief Operating Officer3

Status of New G5 Plan
Striving to Achieve the Goals of the New Three-year Medium-term Management Plan
— The Group has taken initiatives across the board to create added value.
FY 2007 was the middle year in the G5 Plan, our new three-year medium-term management plan,
which extends to FY 2008.
To establish a more robust corporate structure, each division of the Group will act to enhance
efficiency, create added value, and improve customer satisfaction.

Seino Holdings■ Hokkaido Seino Transportation Co., Ltd.
and Seino Information Service Co., Ltd.
become wholly owned subsidiaries
On October 1, 2006, Seino Holdings Co., Ltd. madeHokkaido Seino Transportation Co., Ltd. and Seino
Information Service Co., Ltd. as well as three othercompanies wholly owned subsidiaries through stock
swaps. The Company originally made three transport
operators wholly owned subsidiaries through stock swaps
in August 2001. On October 1, 2005, we adopted aholding company structure, and during October 2005 wemade four more automobile dealerships wholly owned
subsidiaries through similar stock swaps.
With the latest stock swaps, the Seino Group aims toenhance the solidarity and profitability of Group
companies. It also seeks to optimize overall Group
capital by strengthening capital ties within the Group.
We believe that these initiatives will enable us toflexibly and efficiently respond to changes in an
increasingly challenging operating environment, andthat this will lead to further improvements in thecorporate value of the Seino Group.

Transportation Services Business■ Establishment of S&N Logistics Co., Ltd., aLogistics Service Company
On October 2, 2006, Seino Holdings Co., Ltd. andNippon Konpo Unyu Soko Co., Ltd. jointly established
S&N Logistics Co., Ltd., a logistics service company.
The Seino Transportation Group has a superior
nationwide network of domestic distribution systems andthe Nippon Unyu Soko Group possesses extensive
technologies and know-how in packing operations,distribution processing, and warehouse business. By
effectively leveraging each of these advantages, the twocompanies aim to provide comprehensive and optimal
global distribution solutions to establish supply chain
management (SCM) for customers.
4

The “S” in “S&N” stands for the supply chain andthe “N” stands for neutral, whereby we aspire to develop
comprehensive and optimal logistics from a neutral
perspective.

■ New Strategic Alliance with Deutsche Bahn
AG and Schenker AG
On September 15, 2006, Seino Holdings Co., Ltd. enteredinto a new alliance with Deutsche Bahn AG (based in Berlin,
Germany) and Schenker AG (based in Essen, Germany).
We first established a strategic alliance with
Schenker in 1999, developing cooperative relationships
in the international freight transportation and logistics
businesses, including the establishment of SchenkerSeino Co., Ltd. in 2002. This alliance has enabled us todevelop SCM in Japan by providing our distribution
network to Schenker’s customers, which include leading
Western companies. Under the alliance, we alsoestablished a system to make Schenker’s worldwide
network available to our own Japanese corporate clients,
many of which are rapidly expanding their overseas
operations. In addition, we have been able to develop
truly comprehensive logistics operations by adopting
Schenker’s advanced technologies and know-how.
In February 2006, Deutsche Bahn AG, the parent
company of Schenker, announced that it would acquire
Bax Global Inc. a major international freight forwarder
based in Irvine, the United States, and would integrate
the operations of Schenker and Bax by the end of 2007.
Following this development, Seino Holdings Co., Ltd.,
Deutsche Bahn AG, and Schenker concluded a new
strategic alliance agreement under which the threecompanies
agreed tocontinue toexpand their
existing
cooperative ties
following the
integration of
Schenker andBax.

■ Redevelopment of Main Systems
In January 2007, Seino Holdings Co., Ltd. and Seino
Information Service Co., Ltd. redeveloped the main
systems of the Transportation Group. Compared withthe conventional system, which employed two processes
through large- and medium-scale servers, the new system
has streamlined the process, using only a single mediumscale server. By employing this new main system, we
will be able to halve system management costs, such as
computer management fees, including expenses fordeveloping a disaster response system.
Two years ago in the fall, we began operating adisaster response system using funds that would become
available as a result of cost savings achieved with theintroduction of the redeveloped main system. We
managed to improve the availability of the main system
by installing the existing disaster response system in the
newly redeveloped main system. We will continue toimprove our infrastructure so that we can bolster ourservices for customers.

using their mobile phones, and this has boosted customer
satisfaction.

Vehicle Sales Business■ Gifu Hino Motor Co., Ltd. Opens an
Around-the-clock Maintenance Factory
Gifu Hino Motor Co., Ltd. sells commercial trucks in
the Gifu area. After upgrading the maintenance factoryof its Gifu branch, it began providing new services inJune 2006.
The new factory is one of the largest in thecommercial truck industry and is equipped with 17 lanes,
including six for large and midsize trucks. The factory
employs state-of-the-art equipment, including an
automatic components transportation system. The newfactory can conduct vehicle inspections around the clock.

■ Nationwide Operation of the Box Charter
Delivery — Capital Participation from
Nippon Express Co., Ltd. and Others —The Box Charter business is a transportation business
operated based on a rolling box pallet unit to achieve
just-in-time and high-quality transportation. The target
business is the distribution of the products ofmanufacturers, who require SCM, and the products ofmakers of components and raw materials, who must meetjust-in-time delivery requirements. On March 1, 2006,
Yamato Holdings Co., Ltd. and the Company established
Box Charter Co., Ltd., taking 85% and 15% stakes,
respectively. Box Charter subsequently launched a newservice called “JITBOX Charter Delivery” on April 3. A
new agreement has recently been reached by twelve
companies, including Nippon Express Co., Ltd., toparticipate in the Box Charter business as new partners
to swiftly extend the Box Charter business nationwide.
We will aim to strengthen the sales and management
structure and establish new de facto standards forcommercial distribution in the future.

■ Toyota Corolla Gifu Co., Ltd.
Introduces Mobile Credit Card Terminals
In August 2006, Toyota Corolla Gifu Co., Ltd.
introduced mobile credit card terminals that enable
customers to pay for repair and other services via credit
card without having to visit a branch.
Previously, when a vehicle was returned to the homeof a customer after repair work, if the customer wanted
to pay by credit card, a visit to the branch was required.
Toyota Corolla Gifu has installed a total of 80 terminals
in 41 branches with service facilities, with one to threeterminals at each branch. The introduction of mobile
credit card terminals was a pioneering step in Japan, andhas greatly improved convenience for customers.

■ Introduction of Estimated Delivery
Time Service
In August 2006, Seino Transportation launched theEstimated Delivery Time Service via the Internet throughwhich customers can easily determine the time required
from collection to delivery of their freight. With thisservice, customers can also find out when their freightneeds to be sent out so that it will be delivered on thedesired date. In addition, since last October, drivers havebeen able to carry out Internet searches on the road,5

CSR Topics
Commitment as a Corporate Citizen
On November 1, 2006, Seino Holdings Co., Ltd. celebrated 60 years in business. Since its establishment,
the Company has been growing based on a pursuit of its corporate mission: “Contribute to the nationand society by providing preeminent transportation services esteemed by customers.” Today, the Seino
Group stills aims to contribute to the development of industry and improvements in living standards bybuilding the foundations of a distribution infrastructure and by bolstering logistics efficiency in Japanthrough the operations of its Group companies in its core transportation services. Companies in the
Seino Group also strive to fulfill their corporate social responsibilities, as a critical management issue
that must be addressed to meet the expectations of all stakeholders and earn society’s trust as acorporate citizen.
The following pages briefly introduce the activities of Seino Group companies, which aspire to preserve
the global environment, ensure safety, show respect for humanity and coexist with local communities.

■ The Environment
Transportation GroupThe Seino Transportation Group is committed toinnovation in its vehicles and transportation systems. To
protect the global environment, we also focus onenvironmentally friendly and energy saving operations.
● Introducing environmentally friendly vehicles
We have introduced low-emission vehicles, such as
hybrid vehicles and electric forklifts. In particular, we
are adopting 5,500 hybrid vehicles in an effort to
reduce carbon dioxide emissions by 2013.
● Shifting transportation modes
We seek to both save energy and maintain service
levels by facilitating a shift in transport modes,
combining road transportation with shipping by railand sea.
● Achieving efficient transportation
We save energy by efficiently transporting the volume
of cargo handled. We strive to:왘Improve load efficiency.
왘Raise efficiency by using large vehicles such astrailers and 25-ton trucks.
왘Promote cooperative transportation.
왘Respond to changes in freight loading duringtrucking off-seasons.
● Developing an energy saving and environmentallyfriendly vehicle fleet
We study ways to save energy and improve ourvehicles accordingly. We take comprehensive
measures such as using clean diesel engines, adopting
cylinder cowling, adopting energy saving tires, andreducing vehicle weight.
● Environmentally friendly and energy saving
driving
We are fully committed to practicing “eco-driving” atevery level to minimize the adverse effect on the6environment. Specific initiatives including providing
an “eco-Driving Experience Seminar” to 200 leadersamong the sales drivers of our branches. After taking
the seminar, these leaders encourage eco-driving intheir own branches as instructors for other drivers. We
also take actions throughout the Company, such asattaching the eco-driving sticker to all vehicles andhaving our employees make the eco-driving
declaration on our website.

Seino Transportation Co., Ltd.
All employees have been registered as team membersof “Team Minus 6%”
In July 2005, Seino Transportation Co., Ltd. made ateam declaration as a company to participate in the
Ministry of the Environment’s “Team Minus 6%”
project. As a result, at Seino Transportation Co., Ltd., all
13,300 employees (as of August 2006) have beenregistered as team members of the “Team Minus 6%”
project, an entirely voluntary initiative that aims to
reduce emissions of greenhouse gases in Japan to 6%
below the 1990 level and raise awareness of activities toprevent global warming.

Seino Transportation Co., Ltd.
Providing customers with data on energy consumed
Accompanying the revision to the Law concerning
the Rational Use of Energy (the “Energy ConservationLaw”) in April 2006, those companies that placeshipping orders of 30 million ton-kilometers or more per
year are required to submit an energy saving plan to thegovernment once a year, as well as report the actualenergy consumption of their transportation volume andthe specific energy consumption of their distribution
division. Seino Transportation has been providing
customers with basic transportation data since October
2006, helping them to calculate their energy
consumption under the amended Energy Conservation
Law.

After hearing atalk on the systemof how collectedcargo is sent
overnight by trucks
and then delivered
to final destinations
the following day,the pupils wereshown around thelogistics center located in the basement of the branch
office and witnessed the processing operation. They werealso allowed to board the trucks, and were given an
opportunity to deepen their knowledge of the distributionof freight.

Mie Seino Transportation Co., Ltd.
All offices acquire Green Management Certificate
In December 2006, Mie Seino Transportation Co.,
Ltd. introduced to all offices the Green Management
Certificate provided by the Transportation Ecology
Mobility Foundation.
The Transportation Ecology Mobility Foundation is a
public entity authorized by the Ministry of Land,
Infrastructure and Transport to promote both mobility(barrier-free transportation) in transportation and relatedareas and measures to preserve the environment. GreenManagement is part of the activities to facilitate
activities by transportation companies to protect theenvironment on an ongoing basis by making it easier to
set and assess the goals of their initiatives with the
preparation of a manual based on ISO 14001 standards.

Toyota Corolla Gifu Co., Ltd.
Certified as a “Friendly Company Contributing to theDevelopment of a Safe and Secure Town”
A certificate has been bestowed by Gifu Prefecture to
Toyota Corolla Gifu Co., Ltd., certifying that thissubsidiary is considered a “Friendly Company
Contributing to the Development of a Safe and Secure
Town.” This certificate is issued to organizations thatcooperate in activities to monitor the safety of the local
community.
Toyota Corolla Gifu places a magnet sticker bearing
the words “Anti-Crime Patrol” on its 100 sales vehicles,
and pays attention to the safety of children and otherresidents in local communities while carrying out its
sales activities■ Safety
Netz Toyota Gifu Co., Ltd.
Received a letter of appreciation for its efforts to raise
employee awareness using the SD Card
Netz Toyota Gifu Co., Ltd. actively uses the SD Card
(proving no traffic accidents or violations) issued by theJapan Safe Driving Center to bolster the awareness of its
employees about traffic safety. The subsidiary has beenencouraging its employees to acquire the SD Card since2003, significantly reducing the number of accidents.

■ Local communities
Seino Transportation Co., Ltd.
Elementary School children visit Shinmei Office
A total of 80 5th graders of Akashi Elementary
School, attached to Kobe University, visited our Shinmei
branch office (Nishi-ku, Kobe) on November 6, as part ofa social studies field trip.

■ Respect for Humanity/Business Continuity Plan
Seino Transportation Co., Ltd.
Confirming the safety of employees by email at timesof disaster
Working together with Seino Information Service
Co., Ltd., Seino Transportation Co., Ltd. has developed asystem that confirms the safety of employees in disasterstricken areas by exchanging email via mobile phones
during times of disaster. The system went into effect in
September 2007.
When disaster strikes, Seino Transportation will beable to determine if offices in disaster-stricken areas cancontinue to operate by quickly confirming the safety of
employees and promptly informing customers of theprospect for recovery.
Seino Transportation began developing this system in
April 2007, and started registering the email addresses ofapproximately 13,000 employees on August 1, 2007.
Full-scale operations began in September.

7

Review of Operations
The performance of each of our business segments is outlined below.

designed to bolster the efficiency of distribution between
companies and is attracting the attention of industry peers as a
new strategic product.
The Group also established S&N Logistics Co., Ltd., a newlogistics service company, on October 2, 2006 as a joint venturewith Nippon Konpo Unyu Soko Co., Ltd. and has been
providing logistics solutions geared to constructing supply chain
management (SCM) between companies.
Overseas, the Company strengthened its strategic alliancewith Deutsche Bahn AG (headquartered in Berlin, Germany) andSchenker AG (headquartered in Essen, Germany) on September
15, 2006, as a strategy for providing better quality services inJapan and abroad in the international cargo shipping andlogistics businesses. As a result, the services and mobility of
Schenker-Seino Co., Ltd. have been strengthened.
As indicated above, the Company sought not only to secure
the stability of freight loading and profit, but also to bolster
customer satisfaction by improving operations and information
accuracy. In addition, the Transportation Group introduced
innovations in the cost structure by raising the efficiency in its
operation processes, information system, route operation andback-office operations. We also promoted eco-driving as ameans of protecting the environment while reducing fuel costs
and increasing traffic safety.

Transportation Services
Operating revenue in the Transportation Services segment
increased 6.4% from the previous year to ¥327,574 million(US$2,776 million) mainly because of an increase in the numberof consolidated subsidiaries. Operations were, however,influenced by rising fuel prices, chartered truck fees and thecosts of environmental measures, resulting in a 5.4% decline inoperating income to ¥5,555 million (US$47 million).
Our Transportation Services segment consists of three key
businesses, the first of which is our Less-than-Truck Load (LTL)commercial cargo transportation business and the second ofwhich is our logistics business. During the term, we stepped up
our sales activities with a core focus on these two mainstay
businesses. For instance, we expanded cargo services for small
businesses, boosted sales of “Designated Time” products,
acquired new shipping clients, and improved our market sharewith existing clients. Our sales operations have emphasized aproactive approach, calling on our extensive transportation
network in the logistics business.
In particular, with respect to JITBOX Charter Delivery,
which the Company began offering using a franchise system in
April 2006, a sales structure was put into place in August incooperation with 15 transportation companies. The number ofcargo containers handled remained solid. This product is

Vehicle Sales

increase year on year partly reflecting changes inaccounting procedures.
This segment consists of sales of trucks and passenger
vehicles.
In truck sales, sales of all three categories, large,

Operating revenue rose 3.9% from the previous year to¥85,549 million (US$725 million), while operating income
amounted to ¥3,121 million (US$26 million), a 44.9%
Operating Revenue by Business Segment
Fiscal 2007

8

(Millions of yen)
Fiscal 2006

Results

Composition

Results

Composition

Year-on-YearTransportation
Services

327,57472.9%

307,888

72.0%

6.4%

Vehicle Sales

85,54919.0%

82,334

19.3%

3.9%

Leasing forReal Estate
Services

1,079

0.2%

1,004

0.2%

7.5%

Other

35,284

7.9%

36,2948.5%(2.8)%

Total

449,486

100.0%

427,520100.0%

5.1%

midsize, and small trucks declined in the face of smaller
replacement demand reflecting rising fuel costs. Passenger
vehicles also confronted a difficult market, as demand forcompact cars ran its course and vehicle models generally
moved into their final stages.
Although both truck and passenger vehicles sales
experienced a difficult business environment, the Vehicle
Sales segment not only sought to strengthen its sales
capabilities and external sales competitiveness anddevelop a high flexibility geared to customer needs but it
also took steps to reduce costs and improve services as thethird of the three mainstay operations of the Company.
In truck sales, Gifu Hino Motors Co., Ltd. opened a 24hour maintenance factory to improve customer

convenience, while in the passenger vehicle sales theGroup endeavored to raise customer satisfaction byoffering a cashless service by introducing mobile payment
terminals that accept credit cards.
In its accounting procedures, the Company changed theaccount for installment sales fees, and as a result,operating income increased ¥1,043 million compared withthe figure calculated using the previous accounting
method. As the Group also changed its accounting
standard for vehicle sales, operating revenues andoperating income rose ¥854 million and ¥110 million,
respectively, in comparison with the figures calculatedusing the previous accounting method.

Leasing for Real Estate Services

reasons such as urban development projects or a lack ofavailable land, the old site is leased out to maximize thebenefits of management resources. Companies outside theTransportation Group also engage in leasing as the mosteffective means to generate returns from their assets. Key
examples of this have been the former Yotsuhashi (Osaka
City), Shinmachi (Osaka City) and Fukui (Fukui
Prefecture) terminals.

Operating revenue totaled ¥1,079 million (US$9million), a 7.4% increase from the previous year, while
operating income stood at ¥905 million (US$8 million), up
8.1% year on year.
In this business segment, when terminals of severaltransportation group companies, including Seino
Transportation Co., Ltd., are relocated to other sites for

Other

information services. Although operating revenue declined
2.8% from a year earlier to ¥35,284 million (US$299
million), operating income rose 5.0% year on year to¥1,288 million (US$11 million).

This business segment consists of sales of merchandise
such as fuels and residential properties as well as

Operating Income by Business Segment
Fiscal 2007

(Millions of yen)
Fiscal 2006

Results

Composition

Results

Composition

Year-on-YearTransportation
Services

5,555

51.5%

5,874

58.3%

(5.4)%

Vehicle Sales

3,121

28.9%

2,154

21.3%

44.9%

Leasing forReal Estate
Services

905

8.4%

837

8.3%

8.1%

Other

1,288

11.9%

1,227

12.2%

5.0%

Total

10,869100.7%

10,092100.1%―(73)(0.7)%(10)(0.1)%―

10,796100.0%

10,082100.0%

7.1%

Elimination
Consolidated

9

Financial Review
Operating Results
Consolidated operating revenue for Seino Holdings for the fiscal
year ended March 31, 2007 increased 5.1% from the previous year, to¥449,486 million (US$ 3,809 million). Major factors for higher
operating revenue included the increase in cargo volume handled in
the Transportation Services business and the larger number ofconsolidated subsidiaries.
Operating costs rose 5.5%, to ¥408,395 million (US$3,461
million). The ratio of operating costs to operating revenue was 90.9%,
up 0.4 percentage point.
Selling, general and administrative expenses declined 0.5% to¥30,295 million (US$257 million), while operating income rose 7.1%
to ¥10,796 million (US$91 million). Although fuel costs and vehicle
expenses increased in the Transportation Services segment, operating
income expanded with the change in the account for installment sales
fees and the change in the accounting standard for vehicle sales in the
Vehicle Sales segment.
Other income stood at ¥3,783 million (US$32 million). A major
factor was amortization of negative goodwill, which decreased from
¥8,518 million (US$72 million) to ¥4,181 million (US$35 million).
As a result, income before income taxes and minority interests
reached ¥14,579 million (US$124 million) compared with a loss
before income taxes and minority interests of ¥1,188 million in theprevious term. Net income of ¥8,797 million (US$75 million) wasrecorded, compared with a net loss of ¥8,334 million in the previous
fiscal year.
Net income per share was ¥44.71 (US$0.38), and return on equity
was 3.1%. Annual cash dividends per share were maintained at ¥11.00(US$0.09) as in the previous term.

tangible and intangible fixed assets increased.
Total current liabilities climbed 6.7% to ¥98,980 million(US$839 million), primarily because of an increase in trade
payables resulting from the larger number of consolidated
subsidiaries, although long-term debt due within one year was
repaid.
Long-term liabilities grew 9.3% to ¥76,178 million (US$646
million), the result of an increase in the provision for employee
retirement benefits liability associated with the rise in the numberof consolidated subsidiaries.
Net assets rose 3.0% to ¥292,848 million (US$2,482 million).
Major factors include an increase in retained earnings derived fromthe posting of net income and a decrease in treasury stock resulting
from stock swaps between the Company, Hokkaido Seino
Transportation Co., Ltd. and Seino Information Service Co., Ltd.
The shareholders’ equity ratio dipped 1.2 percentage points to
61.2%.
Note: Consolidated net assets for the fiscal year under review are calculated by adding
shareholders’ equity and minority interests in the previous year.

Cash FlowsNet cash provided by operating activities declined ¥2,222
million to ¥17,520 million (US$148 million). Trade payables andaccrued expenses rose to ¥6,193 million (US$52 million) after
adopting a lump-sum factoring system, while an increase inbeneficial interest in trusts in relation to trade payables amounted
to ¥11,714 million (US$99 million).
Net cash used in investing activities grew ¥23,164 million(US$196 million), to ¥16,753 million (US$142 million), primarily
because of a decrease in proceeds from the redemption of
securities.
Net cash used in financing activities decreased ¥6,855 million(US$58 million), to ¥14,679 million (US$124 million). This result
reflected a decline in the purchase of treasury stock.
Consequently, cash and cash equivalents at the end of year fell
¥12,473 million (US$106 million), to ¥42,753 million(US$362 million).

Financial Position
Total assets at the end of the fiscal year under review were¥468,006 million (US$3,966 million), up 4.7% versus the previous
year.
Total current assets increased 5.3% to ¥169,706 million(US$1,438 million), mainly reflecting the larger number ofconsolidated subsidiaries and an increase in trade receivables.
Property and equipment, net rose 7.3% to ¥242,374 million(US$2,054 million). Although long-term loans receivable declinedwith the increase in the number of consolidated subsidiaries,
Operating income to operating revenue
Net income to operating revenue

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

Shareholders’ equity ratio

(%)

(%)

(%)

4

8
7
6
5
4
3
2
1
0
-1
-2
-3
-4
-5
-6
-7
-8
-9

80

3
2
1
0
-1
-2
-3
-4
-5
-6
2002

10

2003

2004

2005

2006

2007

60

40

20

0
2002

2003

2004

2005

Operating income to operating revenue

Net (loss) income to total assets

Net income to operating revenue

Return on equity ratio

2006

2007

2002

2003

2004

2005

2006

2007

Seino Holdings Co., Ltd. and Consolidated Subsidiaries

Six-year Summary
For the Years Ended March 31, 2007, 2006, 2005, 2004, 2003 and 2002

Millions of Yen
2007
For the year:
Operating revenue:
Transportation services
Vehicle 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*

2006

449,486)
327,574)
85,549)1,079)
35,284)
408,395)¥

2005

427,520)
307,888)
82,334)
1,004)
36,294)
386,995)¥

2004

423,833
307,264
98,2595,268
13,042
381,970¥2003

417,705
300,645
97,155
5,483
14,422375,403¥

2002

409,399
297,514
93,322
5,938
12,625368,866¥

418,835
306,003
92,667
5,224
14,941
382,637

30,295)
10,796)
8,797)

30,443)
10,082)(8,334)29,816
12,047
14,273

29,637
12,665
13,43930,33910,194
13,62232,655
3,543
16,475

169,706)
468,006)
98,980)3,700)
3,435)
292,848)

161,208)
446,933)
92,800)4,371)
8,247)
278,916)

164,129
470,492
91,252
4,815
17,974283,352

183,933
494,743
112,668
31,17018,341
272,694

166,861494,583
142,085
14,59061,839238,825

167,395
522,753
129,11744,60170,853
227,104* For details regarding net assets for the fiscal year
ended March 31, 2007, see (s-i) on page 18.

Yen

Per share data:
Net income (loss):-Basic-Diluted
Cash dividends¥

44.71)−)
11.00)¥(43.35)−)11.00)

¥

72.26
70.67
11.00

¥

76.11
63.33
11.00

¥

77.47
63.41
11.00

¥

98.73
77.52
11.00

Thousands
Number of shares issued

207,679)

207,679)

198,631

198,631

176,820

176,820

3.0
3.2
2.7
5.3
55.1
163.3
68.4
14.2

2.5
3.3
2.8
5.8
48.3
117.4
92.6
14.2

0.8
3.9
3.2
7.7
43.4
129.6
115.4
10.1

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

2.4)
2.0)
1.9)
3.1)
61.2)
171.5)
61.2)
24.5)

Current ratio

2.4)
(1.9)
(1.9)
(3.0)
62.4)
173.7)
58.3)(25.5)

2.8
3.4
3.0
5.1
60.2
179.9
53.1
15.1

Debt equity ratio

Payout ratio

(%)

(%)

(%)

200

120

40

30

160
90

20

120

10
60
0

80

-10

30

40
-20

0

0
2002

2003

2004

2005

2006

2007

-30
2002

2003

2004

2005

2006

2007

2002

2003

2004

2005

2006

2007

11

Seino Holdings Co., Ltd. and Subsidiaries

Consolidated Balance Sheets
March 31, 2007 and 2006

Thousands of
U.S. Dollars(Note 1)Millions of Yen

2007

2006

42,753 ¥9,668
90,153
6,694
4,560
16,631(753)
169,706

55,226 $362,314
7,356
81,932
79,414
764,008
9,309
56,7294,533
38,6446,165
140,940(795)(6,381)
161,208
1,438,186

Property and equipment (Notes 4 and 5):
At costAccumulated depreciation
Property and equipment, net

446,628(204,254)
242,374

400,764(174,949)
225,815

Investments and other assets:
Investment securities (Note 3)
Investments in and long-term loans to affiliates (Note 3)
Deferred tax assets (Note 10)
Other assets
Total investment and other assets
Total assets

33,926
3,593
10,3808,027
55,926
468,006

35,891
287,509
6,907
30,4499,713
87,966
7,399
68,02659,910473,950446,933 $ 3,966,153

Assets:Current assets:
Cash and cash equivalents
Short-term investments (Notes 3 and 5)
Trade receivables
Inventories
Deferred tax assets (Note 10)
Other current assets
Allowance for doubtful accounts
Total current assets

Liabilities:
Current liabilities:
Short-term borrowings (Note 5)
Current portion of long-term debt (Note 5)
Trade payables
Accrued expenses
Income taxes payable
Other current liabilities (Note 10)
Total current liabilities

¥

¥

3,700
1,023
66,317
13,0604,445
10,43598,980¥¥3,784,983(1,730,966)
2,054,017

4,371 $
7,187
54,333
12,446
5,265
9,198
92,80031,3568,669
562,009110,678
37,67088,432
838,814Long-term debt (Note 5)
Employee retirement benefit liability (Note 6)
Deferred tax liabilities (Note 10)
Negative goodwill
Other long-term liabilities
Total liabilities

2,412
48,652
9,563
14,642
909
175,158

1,061
41,842
7,626
18,250910
162,489

20,441
412,305
81,042
124,085
7,703
1,484,390

Equity (Note 9):
Common stock
Capital surplus
Retained earnings
Less, treasury stock, at cost
Total shareholders’ equity
Other components of equity
Minority interests
Total equity
Total liabilities and equity

42,48273,582
171,034(9,557)
277,5418,810
6,497
292,848
468,006

—
—
—
—
—
—
—
—
—

360,017623,576
1,449,441(80,992)
2,352,042
74,66155,0602,481,763$ 3,966,153

—

5,528

—

—
—
—
—
—
—
—
—
—

42,48273,353
164,490
(295)
9,860
(402)
(10,572)
278,916
446,933

—
—
—
—
—
—
—
—
—

Minority interests
Shareholders’ equity:
Common stock
Capital surplus
Retained earnings
Land revaluation decrement
Net unrealized gains on available-for-sale securities
Foreign currency translation adjustment
Less, treasury stock, at cost
Total shareholders’ equity
Total liabilities, minority interests and shareholders’ equity
See accompanying Notes to Consolidated Financial Statements.

12

¥

2007

¥

¥

Seino Holdings Co., Ltd. and Subsidiaries

Consolidated Statements of Operations
For the Years Ended March 31, 2007, 2006 and 2005

Thousands of
U.S. Dollars

Millions of Yen

2007
Operating revenue (Note 11)¥

Operating costs and expenses (Notes 6 and 11):
Operating costs
Selling, general and administrative expenses
Operating income
Other income (expenses):
Interest and dividend income
Interest expenses(Loss) gain on sale or disposal of property and equipment
Equity in net (loss) income of affiliates
Amortization of negative goodwill
Impairment loss on fixed assets
Loss on liquidation or sale of subsidiaries and affiliates
Recoveries of bad debts previously written-off
Miscellaneous, net
Income (loss) before income taxes and minority interests
Income taxes (Note 10)
Minority interests in net income (loss) of subsidiaries
Net income (loss)
Per share:
Net income (loss)-Basic-Diluted
Cash dividends

¥

2006

2005

427,520 ¥423,833$ 3,809,203

408,395
30,295
438,690
10,796

386,995
30,443
417,438
10,082

381,970
29,816
411,786
12,0473,460,974
256,737
3,717,711
91,492

825
(164)
(386)
(368)
4,181
(1,727)——
1,422
3,783)
14,579

2,008
(243)
(458)
(485)
8,518
(21,924)
(136)
—
1,450
(11,270)(1,188)

2,306
(353)
154
238
6,521
—
(205)
211
1,225
10,097
22,144

6,992(1,390)(3,271)(3,119)35,432(14,636)——
12,051
32,059123,551

5,617
165
8,797

7,822
(676)
(8,334) ¥

6,643
1,228
14,27347,602
1,398
74,551

449,486

¥

¥

2007

$

U.S. Dollars

Yen

¥

44.71
—
11.00

¥

(43.35) ¥
—
11.00

72.26
70.67
11.00

$

0.38
—
0.09

See accompanying Notes to Consolidated Financial Statements.

13

Seino Holdings Co., Ltd. and Subsidiaries

Consolidated Statements of Changes in Equity
For the Years Ended March 31, 2007, 2006 and 2005

Number ofcommonCommonshares issued stock

Capitalsurplus

Net unrealized
Foreign
gains onLand
currency
Total
Retained revaluation available-for-sale translation Treasury shareholders'securities
earnings decrement
adjustment stock
equityMillions of Yen

Balance at March 31, 2004
198,631,167 ¥ 42,482 ¥ 64,874 ¥ 163,242 ¥Net income for the year———
14,273
Treasury stock reissued upon
exercise of stock option——
21—
Cash dividends———(2,158)Bonuses to directors and statutory
auditors———(97)
Reversal of land revaluation
decrement
—
—
—
(33)
Decrease due to a change of votinginterest on a subsidiary————
Net change in unrealized gains onavailable-for-sale securities, net of
applicable income taxes————
Translation adjustment————
Purchase of treasury stock and————fractional shares, net(413) ¥—

3,742 ¥—

(676) ¥
—

—
—

—
—

—
—

179
—

200
(2,158)

—

—

—

—

(97)

33

—

—

—

—

1

—

—

—

1

—
—

1,174
—

—
99

—
—

1,174
99

—

—

—

(2,834)(2,834)

Balance at March 31, 2005
198,631,167
Net loss for the year—
Stocks issued under stock-for-stock
exchange offerings
9,048,616
Cash dividends—
Bonuses to directors and statutory
auditors—
Reversal of land revaluation
decrement—
Net change in unrealized gains onavailable-for-sale securities, net of
applicable income taxes—
Translation adjustment—
Purchase of treasury stock andincrease in treasury stock held by—group companies, net
Balance at March 31, 2006(557) ¥272,694— 14,273

42,482—64,895—

175,227(8,334)

(379)
—

4,916
—

(577)
—

—
—

8,489
—

—
(2,129)

—
—

—
—

—
—

3,143
—

11,632(2,129)

—

—

(75)

—

—

—

—

(75)

—

—

(84)

84

—

—

—

—

—
—

—
—

—
—

—
—

4,944
—

—
175

—
—

4,944
175

—

(31)

(115)

—

—

—

(295) ¥

9,860 ¥

207,679,783 ¥ 42,482 ¥ 73,353 ¥ 164,490 ¥CapitalsurplusRetainedearnings(10,503) (10,649)(402) ¥(10,572) ¥278,916

Shareholder’s equity
Number ofcommonCommonshares issued stock(3,212) 283,352—(8,334)

Other components of equity

Net unrealized
Foreign
gains onTotal
Landcurrency Total other
Treasury shareholders' available-for-sale revaluation translation components Minority
securities decrement adjustment of equity interests
stock
equityTotalequityMillions of Yen

Balance at March 31, 2006
207,679,783 ¥ 42,482 ¥ 73,353 ¥ 164,490 ¥(10,572) ¥ 269,753 ¥ 9,860 ¥—Net income for the year
—
—
—
8,797
—
8,797
Treasury stock reissued under stockfor-stock exchange offerings (Note
—
—
—
229
—
1,105
1,334
2 (a-ii))————(2,151)—(2,151)
Cash dividends
Bonuses to directors and statutory
—
—
—
—
(102)
—
(102)
auditors
—
—
—
—
(90)
(90)
Fractional shares aquired, net
Net changes other than shareholders’
(376)
—
—
—
—
—
—
equity(295) ¥—

207,679,783 ¥ 42,482 ¥ 73,582 ¥ 171,034 ¥ (9,557) ¥ 277,541 ¥ 9,484 ¥(318) ¥

Balance at March 31, 2007(402) ¥ 9,163 ¥ 5,528 ¥ 284,444
—
—
—
8,797

—
—

—
—

—
—

—
—

1,334
(2,151)

—
—

—
—

—
—

—
—

(102)
(90)

(23)

46

(353)

969

616

(356) ¥ 8,810 ¥ 6,497 ¥ 292,848

Thousands of U.S. Dollars

Balance at March 31, 2006
Net income for the year
Treasury stock reissued under stockfor-stock exchange offerings (Note
2 (a-ii))
Cash dividends
Bonuses to directors and statutory
auditors
Fractional shares aquired, net
Net changes other than shareholders’equity$360,017 $621,635 $1,393,983 $(89,593) $2,286,042 $ 83,559 $ (2,500) $ (3,407) $ 77,652 $ 46,848 $2,410,542———
74,551—
74,551————
74,551

Balance at March 31, 2007

$360,017 $623,576 $1,449,441 $(80,992) $2,352,042 $ 80,373 $ (2,695) $ (3,017) $ 74,661 $ 55,060 $2,481,763

—
—

1,941
—

—
(18,229)

9,364—

11,305(18,229)

—
—

—
—

—
—

—
—

—
—

11,305(18,229)

—
—

—
—

(864)
—

—
(763)

(864)
(763)

—
—

—
—

—
—

—
—

—
—

(864)
(763)

—

—

—

—

—

(3,186)

(195)

390

(2,991)

8,212

5,221

See accompanying Notes to Consolidated Financial Statements.

14

Seino Holdings Co., Ltd. and Subsidiaries

Consolidated Statements of Cash Flows
For the Years Ended March 31, 2007, 2006 and 2005

Thousands of
U.S. Dollars

Millions of Yen

2007
Cash flows from operating activities:
Income (loss) before income taxes and minority interests
Adjustments for:
Depreciation
Impairment loss on fixed assets
Amortization of negative goodwill
Net provision for employee retirement benefit liability
Loss (gain) on sale or disposal of property and equipment
Equity in net loss (income) of affiliates
Loss on liquidation or sale of subsidiaries and affiliates(Gain) loss on sale of investment securities
Recoveries of bad debts previously written-off(Increase) decrease in trade receivables
Decrease (Increase) in inventories
Increase (decrease) in trade payables and accrued expenses
Repayments of employees’ saving deposits
Increase in beneficial interest in trusts in relation to trade payables
Other, net
Sub-totalInterest and dividend received
Interest paid
Income taxes paid
Net cash provided by operating activities¥

Cash flows from investing activities:
Increase in property and equipment
Increase in long-term investments and loans
Decrease in property and long-term investments
Decrease in short-term investments
Net cash (used in) provided by investing activities
Cash flows from financing activities:
Increase in long-term debt
Repayment of long-term debt
Net decrease in short-term borrowings
Cash dividends paid
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
Increase in cash and cash equivalents upon inclusionof additional subsidiaries on consolidation
Cash and cash equivalents at end of year¥

14,5792006

2007(1,188) ¥22,144

16,253
1,727(4,181)
1,442
386
368
—
—
—
(3,432)
1,976
6,193
—
(11,714)(326)
23,271824(169)(6,406)
17,52014,66021,924(8,518)
1,154
458
485
136
(16)
—
(3,412)(3,308)
976
—
—
1,370
24,721
2,083(243)(6,819)19,742

13,744—(6,521)
1,680
(154)
(238)
205
107
(211)
1,534
(756)
(142)
(3,686)—(2,987)
24,7192,390(369)(7,417)
19,323

137,737
14,636(35,432)
12,220
3,271
3,119
—
—
—
(29,085)
16,74652,483—(99,271)(2,763)
197,212
6,983(1,432)(54,288)
148,475(16,310)(3,768)
1,448
1,877(16,753)(15,164)
(302)
7,045
14,832
6,411(16,402)(2,558)3,930
12,608(2,422)(138,221)(31,932)
12,271
15,907(141,975)

1(8,689)(3,755)(2,158)(78)(14,679)8(13,904)
55,22660(9,806)(457)(2,232)(9,099)(21,534)
1
4,620
50,60672(438)(26,351)(2,269)(2,631)(31,617)2(14,714)65,3209(73,636)(31,822)(18,288)(661)(124,398)
68(117,830)
468,017

1,431
42,753

¥

2005

¥

—
55,226¥—50,606$$

123,551

12,127362,314

See accompanying Notes to Consolidated Financial Statements.

15

Seino Holdings Co., Ltd. and Subsidiaries

Notes to Consolidated Financial Statements
1. Basis of Consolidated Financial Statements(a)Basis of presenting the consolidated financial statements(b) U.S. dollar amounts

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 on the basisof accounting principles generally accepted in Japan, which are different
in certain respects as to the application and disclosure requirements ofInternational Financial Reporting Standards. These consolidated financial statements are compiled from the original consolidated financial
statements in Japanese prepared by the Company as required by the
Securities and Exchange Law of Japan and submitted to the Director of
Kanto Finance Bureau of Japan.

The Company maintains its accounting records in Japanese Yen. The
U.S. dollar amounts included in the accompanying consolidated financial
statements and notes thereto represent the arithmetic results of translating
Japanese Yen into U.S. dollars at a rate of ¥118 to $1, the approximate rateof exchange at March 31, 2007. The inclusion of such dollar amounts issolely for the convenience of the readers and is not intended to imply thatthe assets and liabilities originating in Yen have been or could be readily
converted, realized or settled in dollars at ¥118 to $1 or at any other rate.

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. Investment in significant affiliates is accounted for by the equity method. Investment inaffiliates not accounted for by the equity method is stated at cost.
Differences between the acquisition cost of investments in subsidiaries
and the underlying equity in their net assets adjusted based on the fairvalue at the time of acquisition are deferred as goodwill or negative
goodwill, which were presented as consolidating adjustment account in
the prior years' consolidated financial statements, and amortized over
five years on a straight-line basis. All intercompany transactions andaccounts have been eliminated.
Under the accounting standard for consolidation, a subsidiary isdefined as an enterprise which is controlled by another enterprise, andthat is a majority (more than 50%) owned enterprise or 40% to 50%
owned enterprise that meets certain criteria. In addition, an affiliatedcompany is defined as an enterprise in which the investor has a significant influence, and that is an enterprise, other than a subsidiary, with
20% or more of voting stock as well as 15% to 19% owned enterprisethat meets certain criteria. For the years ended March 31, 2007, 2006
and 2005, the number of the companies with not exceeding 50% votinginterest classified as subsidiaries based on the self-judgment of theCompany in accordance with the accounting standard was five, fiveand fifteen, respectively.
The number of subsidiaries and affiliates for the three years ended
March 31, 2007 was as follows:
2007
2006
2005
Subsidiaries:
Domestic
Overseas
Affiliates accounted for by the equity method
Affiliates, stated at cost

46
4
2
8

39
4
6
10

39
5
6
11

The Company's overseas subsidiaries close their books at
December 31 every year, three months earlier than the Company andother domestic subsidiaries. The Company has consolidated such subsidiaries' financial statements as of their year-end. Significant transactions for the period between subsidiaries' year-end and the Company's
year-end are adjusted on consolidation.
Overseas subsidiaries adopt accounting principles generally
accepted in their respective countries, and no adjustments to conformto accounting principles generally accepted in Japan have been made totheir financial statements on consolidation as allowed under accounting
principles and practices generally accepted in Japan.

3,234,381 shares of the treasury stock at the exchange rates of a certain
number of shares of the Company's common stock (see below) for one
share of common stock of the four subsidiaries to their respective
minority shareholders.
The details of information of stock-for-stock exchange transactions
for the subsidiaries were as follows:

Exchange rate of the numberof shares of the Company for
one share of subsidiaries

1.68
1.11
27.80
5.12

Toyota Corolla Gifu Co., Ltd. (“Corolla”)
Gifu Hino Motor Co., Ltd. (“Hino”)
Netz Toyota Gifu Co., Ltd. (“Netz”)
Netz Toyota Centro Gifu Co., Ltd. (“Centro”)

The unaudited financial information of the subsidiaries above as at
or for the six months ended September 30, 2005 was as follows:
Corolla

Hino
Netz
Millions of Yen

16

CentroOperating revenue¥ 17,172 ¥ 12,663 ¥ 9,383 ¥
Net (loss) income for the period
(540)
(148)
103
Total assets
35,85828,274
11,992
Net assets
28,184
17,069
7,083

4,990
(421)
7,035
2,680

On October 1, 2006, the Company exercised the stock-for-stock
exchange transaction with an affiliate, Hokkaido Seino Transportation
Co., Ltd. (“Hokkaido Seino”), in order to make the Company's equity
share in the affiliate increase from 39.05% to 100%. This reorganization of the Seino Group is expected to strengthen its integration,
improve the efficiency, and correspond to the change in the businessenvironment mobile and flexibly. On October 1, 2006, the Company
reissued 438,840 shares of the Company's treasury stock at theexchange rate of 0.24 shares of the Company's treasury stock for 1
share of common stock of the affiliate to its shareholders. As a resultof this transaction, negative goodwill of ¥147 million ($1,246 thousand) was recorded as the excess of the underlying equity in the fairvalue of acquired net assets over the acquisition cost of ¥533 million($4,517 thousand).
The assets acquired and the liabilities assumed of Hokkaido Seino
as of October 1, 2006 was as follows:(a-ii) Stock-for-stock exchange agreements with the subsidiaries
On May 17, 2005, the Company entered into the stock-for-stock
exchange agreements with its four subsidiaries in order to make theCompany’s respective equity share in such subsidiaries increase to100%. The agreements were subsequently approved by the shareholders at the annual general meeting of the Company and the respective
companies held in June 2005. In accordance with this agreement, on
October 1, 2005 (stock-for-stock exchange date), the Company newly
issued 9,048,616 shares of the Company's common stock and reissued(shares)Thousands of
U.S. Dollars

Millions of Yen

Assets:Current assets
Non-current assets
Total assets

¥
¥

2,831
5,628
8,459

$
$

23,99147,69571,686

Liabilities:
Current liabilities
Non-current liabilities
Total liabilities

¥

4,247
2,021
6,268

¥

whose classification determines the respective accounting method as
stipulated by the accounting standard for financial instruments. Heldto-maturity securities are stated at amortized cost. Marketable securities with market quotations for available-for-sale securities are stated atfair value and net unrealized gains or losses on these securities arereported as a component of equity, net of applicable income taxes.
Gains and losses on 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 arecarried 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.

Thousands of
U.S. Dollars

Millions of Yen$$

35,992
17,127
53,119The unaudited effect of this transaction on the consolidated resultsof operations of the Seino Group for the year ended March 31, 2007,
assuming the transaction was completed as of April 1, 2006 (thebeginning of the fiscal year), is as follows:
Thousands of
U.S. Dollars

Millions of Yen

¥
2,576
$
21,831
Operating revenue
(116)
(983)
Operating loss
¥
(75)
$
(636)
Net loss
In addition, on October 1, 2006, the Company exercised the stockfor-stock exchange transaction with its subsidiary “Seino Information
Service Co., Ltd.”, in order to make the Company’s equity share insuch a subsidiary increase to 100%. On October 1, 2006, the Company
reissued 673,128 shares of the Company’s treasury stock at theexchange rate of 280.47 shares of the Company’s treasury stock for 1
share of common stock of the subsidiary. As a result of thistransaction, negative goodwill of ¥31 million ($263 thousand) was
recognized as the excess of the underlying equity of net assets of thesubsidiary over the acquisition cost of ¥814 million ($6,898 thousand).

(a-iii) Acquisition for the current year
During the year ended March 31, 2007, as the Company acquired
additional equity share of Shikoku Seino Transportation Co., Ltd.
(“Shikoku Seino”), which was previously an affiliate accounted for by
the equity method, Shikoku Seino became to a subsidiary. The assets
and the liabilities as of the initial consolidation of Shikoku Seino wereas follows.

¥
¥
¥
¥

At March 31, 2007 and 2006, the Seino Group does not hold or has
not issued any derivative transactions.

(e)

3,941
9,033
12,974

$

4,987
5,966
10,953

$

$

$

(f)

(g)

(h) Leases
Where financing leases do not transfer ownership of the leased
property to the lessee during the term of the lease, the leased propertyof the Company and its domestic subsidiaries as lessee is not capitalized and the relating rental and lease expenses are charged to income as
incurred as accepted by the “Opinion Concerning Accounting Standard
for Leases” issued by the Business Accounting Council of Japan(“BACJ”) and the related practical guideline issued by the JapaneseInstitute of Certified Public Accountants.
The leased property of a certain subsidiary engaged in the leasing
operations as lessor was recorded at cost as property held for leases,
which was included in property and equipment in the accompanying
consolidated balance sheets, and was depreciated over the lease contract terms by the straight-line method to the amount equal to the estimated disposal value at the lease termination date.

Showa Seino
Hinomaru Seino
Millions Thousands of Millions Thousands ofof Yen U.S. Dollars of Yen U.S. Dollars(b) Cash and cash equivalents
The Seino Group considers cash equivalents to be highly liquiddebt instruments purchased with an original maturity of three months
or less.

(c)

Investments and marketable securities
The Seino Group classifies certain investments in debt and equity
securities as “held-to-maturity”, “trading” or “available-for-sale”,

Property and equipment, and depreciation
Property and equipment, including significant renewals and additions, are stated at cost. Property and equipment of the Company andits certain subsidiaries have been depreciated by the straight-line
method for buildings and vehicles, and by the declining-balancemethod for other property.
Property and equipment of other subsidiaries have been principally
depreciated by the declining-balance method, except for the buildings
acquired on and after April 1, 1998 and the property held for leases.
The buildings acquired on and after April 1, 1998 by domestic subsidiaries have been depreciated by the straight-line method. Some ofthe subsidiaries capitalize property of the cost of not less than ¥100,000
and below ¥200,000 each and depreciate the property over three years
on a straight-line basis.
Expenditure on maintenance and repairs is charged to operating
income as incurred. Upon the disposal of property, the cost and accumulated depreciation are removed from the accounts and any gain orloss is recorded as income or expenses.

42,26350,55992,822Current assets¥ 1,977 $ 16,754 ¥ 1,238 $ 10,491
Non-current assets
3,528
29,8993,275
27,754Current liabilities(2,193) (18,585) (1,319) (11,178)
Non-current liabilities(5,152) (43,661) (2,168) (18,373)
Goodwill
387
3,280
33
280
Minority interests——(498) (4,220)
Equity interests held by
the Company
1,463
12,398(382) (3,237)
Additional acquisition cost
10
85
179
1,517
Cash and cash equivalents
held by the Company
420
3,560
134
1,136
Increase (decrease) in cash
presented on the accompanying
consolidated statements on
cash flows¥
410 $ 3,475 ¥(45) $ (381)

Inventories
Inventories for supplies are principally stated at moving-average
cost, and inventories for vehicles and work-in-process are principallystated at cost determined by the specific identification method.

33,39876,511
109,949

During the year ended March 31, 2007, the Company acquired
additional common shares of two affiliates, which were Showa Seino
Transportation Co., Ltd. (“Showa Seino”) and Hinomaru Seino
Transportation Co., Ltd. (“Hinomaru Seino”), and the companies
became subsidiaries of the Company effective October 1, 2006. The
assets and the liabilities as of the initial consolidation of the companies
were as follows.

Allowance for doubtful accounts
Allowance for doubtful accounts has been provided for at theaggregate amount of estimated credit loss based on the individual
financial review approach for doubtful or troubled receivables and ageneral reserve for other receivables calculated based on the historicalloss experience for a certain past period.

Thousands of
U.S. Dollars

Millions of Yen

Assets:Current assets
Non-current assets
Total assets
Liabilities:
Current liabilities
Non-current liabilities
Total liabilities(d) Accounting for derivatives(i)Intangible assets
Intangible assets are amortized on a straight-line basis. Software,
which is included in intangible assets, is amortized using the straightline method over a five-year period as its estimated useful life.

(j)Accounting standard for impairment of fixed assets
On August 9, 2002, BACJ issued "Accounting Standard for
Impairment of Fixed Assets", which is effective for the fiscal years
beginning on and after April 1, 2005. The Accounting Standards
Board of Japan (“ASBJ”) issued related practical guidance on October
31, 2003. The Company and its domestic subsidiaries adopted thisaccounting standard and related practical guidance effective from theyear ended March 31, 2006. The standard requires that fixed assets bereviewed for impairment whenever events or changes in circumstancesindicate that the 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 impaired assets or a group of assets to
the recoverable amount to be measured as the higher of the asset’s net

17

selling price or value in use. Fixed assets include land, buildings andother forms of property as well as intangible assets and are to begrouped at the lowest level for which there are identifiable cash flows
from other groups of assets. For the purpose of recognition and measurement of an impairment loss, fixed assets are grouped into cash-generating units, such as operating business branches, other than idle orunused property. At March 31, 2007 and 2006, recoverable amounts of
the assets were measured based on value in use calculated using discounted future cash flows at rates principally of 5.4% and 4.7%,
respectively, or net selling prices primarily using appraisal valuations.
As a result, the Seino Group recognized impairment loss for the property of 38 business branches, 4 idle properties and goodwill for the year
ended March 31, 2007 and 69 business branches and 14 idle properties
for the year ended March 31, 2006 as follows:
Millions of Yen

Buildings and structures
Land
Other property
Goodwill(q) Translation of foreign currency accounts
Receivables, payables and securities, other than stocks of subsidiaries and certain other securities, are translated into Japanese Yen at
the exchange rates at the fiscal year-end. Transactions in foreign currencies are recorded based on the prevailing exchange rates on thetransaction dates. Resulting translation gains or losses are included in
the current earnings.
In respect of the financial statement items of overseas subsidiaries,
all asset, liability, income and expense accounts are translated into Yen
by applying the exchange rates in effect at the fiscal year-end.
Translation differences, after allocating to minority interests portions
attributable to minority interests, are reported as foreign currency translation adjustment in a component of equity on the accompanying consolidated balance sheets.

2007
2006
2007
90 ¥ 2,016 $
763
1,227
19,653
10,398
23
255
195
387
—
3,280
¥ 1,727 ¥ 21,924 $ 14,636

Employees who terminate their service with the Seino Group areentitled to retirement benefits generally determined by the reference of
current basic rates of pay, 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 the retirement benefits
for employees including pension cost and related liability based on
actuarial present value of projected benefit obligation using actuarial
appraisal approach and the pension plan assets available for benefits at
the fiscal year-ends. Unrecognized actuarial differences as changes in
the projected benefit obligation or pension plan assets resulting fromthe experience different from that assumed and from changes inassumptions are amortized on a straight-line basis over ten years as acertain period within average remaining service lives of employees
from the next year in which they arise. Unrecognized prior service costis amortized using the straight-line method over ten years as a certain
period within average remaining service lives of employees from theyear in which it occurs.

Accrued severance indemnities for directors and statutory
auditors
The Seino Group may pay severance indemnities to directors andstatutory auditors, which are subject to the approval of the shareholders. Some of the subsidiaries have provided for at the full amount of
the liabilities of directors' and statutory auditors' severance indemnities
at the respective balance sheet dates. At March 31, 2007 and 2006,
other long-term liabilities in the accompanying consolidated balance
sheets included these accruals for directors and statutory auditors in theamounts of ¥723 million ($6,127 thousand) and ¥756 million, respectively.

(m) Income taxes
Income taxes are accounted for under the asset and 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 carryforward. Deferred tax assets and liabilities aremeasured 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 theenactment date.

(n) Enterprise taxes
With the implementation of the Revision of the Local Tax
Law”(Legislation No.9, 2003) on March 31, 2005, size-based corporate
taxes for local government enterprise taxes have been levied. The
Company and its domestic subsidiaries record enterprise taxes calculated based on the “added value” and “capital” amounts as selling, general and administrative expenses in accordance with practical guidanceissued by ASBJ.

Revenue recognition for freight charges
The Seino Group recognizes freight charges as revenue when

18

Cash dividends and bonuses to directors and statutory auditors arerecorded in the fiscal year during which a proposed appropriation ofretained earnings is approved by the Board of Directors and/or shareholders. See Note 2 (s-iii) for the accounting for bonuses to directors
and statutory auditors.

¥(k) Employee retirement benefits(o)(p) Appropriation of retained earnings

Thousands of
U.S. Dollars

Accumulated impairment losses have been directly deducted fromthe applicable assets.

(l)freight is received for shipment. In relation to its revenue recognition,
the Seino Group records freight charges from customers and paid tointerline carriers as operating revenue and operating costs andexpenses, respectively.

(r)

Per share data
Basic net income (loss) per share is computed by dividing income(loss) applicable to common shareholders by the weighted-average
number of shares of common stock outstanding during the respective
years. Diluted net income per share is computed assuming convertible
bonds were converted at the time of issue unless having anti-dilutive
effects and as if warrants or stock options were exercised at the beginning of the relevant year or (if later) on their first exercise date and as if
the funds obtained thereby were used to purchase common stock at the
average market price during the respective years under the treasury
stock method. Diluted net income per share is not disclosed as the
Seino Group had no diluted common shares for the years ended March
31, 2007 and 2006.
Cash dividends per share shown for each fiscal year in the accompanying consolidated statements of operations represent dividends declared
as applicable to the respective years.

(s) Accounting changes for the current year(s-i) Adoption of accounting standard for presentation of net
assets in the balance sheet
ASBJ issued “Accounting Standard for Presentation of Net Assets
in the Balance Sheet (ASBJ Statement No.5)” and Implementation
Guidance “Guidance on Accounting Standard for Presentation of Net
Assets in the Balance Sheet (ASBJ Guidance No. 8)” on December 9,2005, which are applied for the period ending on and after May 1, 2006.
The standard requires presenting the equity section in the balance sheet
as similar to International Financial Reporting Standards. The Seino
Group has adopted these new accounting standards effective for the year
ended March 31, 2007. If the previous accounting method had been
applied for the consolidated balance sheet at March 31, 2007, equity
would have amounted to ¥286,351 million ($2,426,703 thousand).

(s-ii) Adoption of accounting standard for business combinations
BACJ issued “Accounting Standard for Business Combinations” on
October 31, 2003, and ASBJ issued “Accounting Standard for Business
Divestitures (ASBJ Statement No.7)” on December 27, 2005 and
Implementation Guidance “Guidance on Accounting Standard forBusiness Combinations and Accounting Standard on Business
Divestitures (ASBJ Guidance No. 10)” on December 22, 2006, which
are applied for the year beginning on and after April 1, 2006. The Seino
Group has adopted these standards effective for the year ended March
31, 2007. This accounting change resulted in no material effect on theoperational results of the Seino Group.

(s-iii) Adoption of accounting standard for directors’ bonus
From the year ended March 31, 2007, the Seino Group has adopted“Accounting Standard for Directors’ Bonus (ASBJ Statement No.4)”
issued by ASBJ on November 29, 2005. The standard requires that thedirectors’ bonuses, including those for statutory auditors, shall be
accounted for as an expense of the accounting period in which suchbonuses are accrued. Until the year ended March 31, 2006, bonuses todirectors and statutory auditors were recorded as a part of the appropriation of retained earnings in the fiscal year when a proposed appropriation of retained earnings for directors’ bonuses was approved by the
Board of Directors and/or shareholders. As a result, as compared with(s-v) Accounting change of the recognition for vehicle sales

the previous accounting method, operating income and income before
income taxes and minority interests decreased by ¥111 million ($941
thousand), respectively, for the year ended March 31, 2007.

Effective April 1, 2006, the Seino Group changed the accounting
method for the recognition for vehicle sales. From the year ended
March 31, 2007, the Seino Group recognizes the vehicle sales when avehicle is registered, rather than when a vehicle is delivered to the customers under the previous accounting method. This accounting change
was made for the comparative purposes for the information of the competitors and for the improvement of the effective accounting treatments
under the business reorganization of the Seino Group. As a result, as
compared with the previous accounting method, operating revenue
increased by ¥854 million ($7,237 thousand), and operating income andincome before income taxes and minority interests increased by ¥110
million ($932 thousand), respectively, for the year ended March 31,
2007.

(s-iv) Accounting change of the recognition for installment salecommission
With effect from the year ended March 31, 2007, the Seino Groupchanged the accounting method of the income classification to record
installment sale commission in the income statement from other income
to operating revenue. This change resulted from the increase in theimportance of such commission income under the recent business development of the Seino Group and the comparative purposes for the information of the competitors. As a result, as compared with the previous
accounting method, operating income increased by ¥1,044 million($8,847 thousand), although there was no effect on income before
income taxes and minority interests for the year ended March 31, 2007.

3. Investments
At March 31, 2007 and 2006, short-term investments consisted of thefollowing:
Millions of Yen

Marketable securities:
Bonds¥
Total marketable securities
Other nonmarketable securities
Time deposits with an original maturityof more than three months¥

Cost

Thousands of
U.S. Dollars

2007

2006

2007

1,907 ¥
1,907
2,000

2,369 $
2,369—

16,161
16,161
16,9495,761
9,668 ¥

4,987
7,356 $

48,822
81,932At March 31, 2007:
Equity securities
Bonds
Other
At March 31, 2006:
Equity securities
Bonds
Other

At March 31, 2007 and 2006, investment securities consisted of
the following:
Millions of Yen

Thousands of
U.S. Dollars

2007
2006
Marketable securities:
Equity securities¥ 26,411 ¥ 24,343 $
Bonds
5,430
7,396
Other
225
227
Total marketable securities
32,066
31,966
Other nonmarketable securities
1,860
3,925
¥ 33,926 ¥ 35,891 $2007
223,82246,017
1,907
271,746
15,763
287,509

At March 31, 2007 and 2006, fair value of marketable securities
classified as held-to-maturity and related net unrealized gains were as
follows:
Net unrealized
Carrying value Fair value
gainsMillions of Yen

Bonds included in investment securities:
At March 31, 2007¥
At March 31, 2006

500 ¥
500

499 ¥
497

4,238 $

4,229 $

Marketable securities classified as available-for-sale are stated atfair value with unrealized gains and losses excluded from the current
earnings and reported as a net amount within the equity account until
realized. At March 31, 2007 and 2006, gross unrealized gains andlosses for marketable securities classified as available-for-sale aresummarized as follows:

Fair andcarrying
value¥

9,536 ¥ 16,920 ¥
6,876
41
133
98
¥ 16,545 ¥ 17,059 ¥(45) ¥ 26,411
(80)
6,837
(6)
225
(131) ¥ 33,473¥(28) ¥ 24,343
(114)
9,265
(6)
227
(148) ¥ 33,835

7,186 ¥ 17,185 ¥
9,326
53
133
100
¥ 16,645 ¥ 17,338 ¥Thousands of U.S. Dollars

At March 31, 2007:
Equity securities
Bonds
Other

$ 80,813 $ 143,390 $ (381) $ 223,822
58,271
347(678)
57,940
1,127
831
(51)
1,907
$ 140,211 $ 144,568 $ (1,110) $ 283,669

Expected maturities of held-to-maturity and available-for-sale debt
securities at March 31, 2007 were as follows:

Due in one year or lessDue after one year through five years
Due after five years through ten years
Due after ten years

Millions of Yen

Thousands of
U.S. Dollars

¥

$

¥

(1)
(3)

3,900
3,920
847
700
9,367

$

33,05133,2207,178
5,932
79,381At March 31, 2007 and 2006, investments in and long-term loans
to affiliates consisted of the following:Thousands of U.S. Dollars

Bonds included in investment securities:
At March 31, 2007
$

Gross
Gross
unrealized unrealized
gains
lossesMillions of Yen(9)Millions of Yen

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

Thousands of
U.S. Dollars

2007

2006

2007

3,541 ¥
52
3,593 ¥

3,483 $
3,424
6,907 $

30,008441
30,44919

4. Property and Equipment
At March 31, 2007 and 2006, property and equipment consisted of thefollowing:Thousands of
U.S. Dollars

Millions of Yen

2007
Property held for own use, at cost:
Land
Buildings and structures
VehiclesMachinery and equipment
Construction in progress
Less, accumulated depreciation
Sub-total
Property held for leases, at cost:
Vehicles, equipment and otherLess, accumulated depreciation

2006

2007

¥ 131,250 ¥ 119,914 $ 1,112,288
202,232 181,657 1,713,831
87,75574,236
743,686
24,121
22,592
204,415
553
1,674
4,687
445,911 400,073 3,778,907(203,786) (174,499) (1,727,000)
242,125 225,574 2,051,907

One of the consolidated subsidiaries elected to carry out one-timerevaluation to restate the cost of land used for the business operations
at values rationally reassessed effective on March 31, 2002, reflecting
appropriate adjustments for land shape and other factors, based on theappraisal values issued by the Japanese National Tax Agency in accordance with the Law Concerning Revaluation of Land (“Law”).
According to the Law, the excess of the original book values oversound reassessed values, net of the tax effect and minority interests
portion, is recorded in the equity as land revaluation decrement accountin the accompanying consolidated balance sheets. At March 31, 2007
and 2006, the differences between the carrying values of land used forthe business operations after revaluation over the current market valueof such land at the fiscal year-end amounted to ¥1,281 million($10,856 thousand) and ¥1,205 million, respectively.

717
691
6,076
(468)
(450)
(3,966)
249
241
2,110
Total property and equipment ¥ 242,374 ¥ 225,815 $ 2,054,017

5. Short-term Borrowings and Long-term Debt
At March 31, 2007 and 2006 short-term borrowings consisted of thefollowing:Thousands of
U.S. Dollars

Millions of Yen

2007
Unsecured bank overdrafts withinterest rates ranging from 0.95%
to 8.5% per annum at March 31,¥
2007
Short-term bank borrowings,
principally unsecured andrepresented by notes with interest
rates ranging from 0.378% to5.8% per annum at March 31,
¥
2007

2006

2007
2007

55 ¥

3,645
3,700 ¥

51 $

4,320
4,371 $

466

30,89031,356At March 31, 2007 and 2006, long-term debt consisted of the following:
Millions of Yen

Less, current portion

20

Thousands of
U.S. Dollars

Millions of Yen

At March 31, 2007, the Company and certain subsidiaries had
unsecured overdraft agreements with 12 banks. Under such agreements, the Company and such subsidiaries were entitled to withdraw
up to ¥22,311 million ($189,076 thousand). The Company and such
subsidiaries are not obligated to pay commitment fees on the unused
portions of such overdraft facilities.

Thousands of
U.S. Dollars

2007

2006

2007

1,681 ¥

7,949 $

14,246

1,656
182
98
117
3,435
8,248
(1,023)(7,187)¥ 2,412 ¥ 1,061 $

14,034830
29,110(8,669)20,441Loans from banks, partly secured, due
through 2017 repayable on an
installment basis with interest rates
ranging from 0.942% to 2.55% perannum at March 31, 2007¥
Loans from government agencies,
principally mortgage, repayable on an
installment basis with interest rates
ranging from 0.321% to 3.6% perannum at March 31, 2007
Other

At March 31, 2007 and 2006, the following assets were pledged ascollateral for certain short-term borrowings and long-term debt in theaggregate amounts of ¥3,129 million ($26,517 thousand) and ¥200 million, respectively:

Land
Buildings and structures
Time deposits included in shortterm investments

¥

2006

2007

7,936 ¥
4,990

104 $
692

11

20

67,25442,28893

The aggregate annual maturities of long-term debt as at March 31,
2007 were as follows:
Years ending March 31,

2008
2009
2010
2011
2012
Thereafter

Millions of Yen¥¥

Thousands of
U.S. Dollars

1,023 $
742
553
420
218
479
3,435 $

8,669
6,288
4,687
3,559
1,848
4,059
29,1106. Employee Retirement Benefits
The Company and its domestic subsidiaries have defined benefit
plans. The following table reconciles the benefit liability as at March
31, 2007 and 2006:
Millions of Yen

2007
Reconciliation of benefit liability:
Projected benefit obligationLess, fair value of pension plan
assets at end of year
Less, unrecognized actuarial
differences (loss)
Less, unrecognized prior service cost
Net amounts of employee
retirement benefit liability
recorded on the consolidatedbalance sheets

Thousands of
U.S. Dollars

2006

2007

¥ 56,400 ¥ 47,647 $ 477,966(2,428)53,972(1,421)
46,226(20,576)
457,390(2,926)(2,394)(2,437)(1,947)(24,797)(20,288)¥ 48,652 ¥ 41,842 $ 412,305

Notes: 1. Projected benefit obligation of certain subsidiaries was calculated using the simplified calculation method as permitted
by the accounting standard for employee retirement benefits.
2. The above table excluded the amounts for the assets not separately allocatable to some of the domestic subsidiaries incertain pension funds organized by others together with thesubsidiaries or effectively restricted so that they cannot be
used by the employees for other purpose, which amounted to¥7,585 million ($64,280 thousand) and ¥7,159 million atMarch 31, 2007 and 2006, respectively.
The component of net periodic retirement benefit expense for theyears ended March, 2007, 2006 and 2005 was as follows:

Thousands of
U.S. Dollars

Millions of Yen

2007
Net periodic retirement
benefit expenses:
Service cost¥
Interest cost
Expected return on
pension plan assets
Amortization of
actuarial differences
Amortization of priorservice cost
Other
Total retirement
benefitexpense
¥

2006

2005

2007

2,760 ¥
1,033

2,492 ¥
925

2,618 $
914

23,390
8,754

(34)

(22)

(21)

(288)

494

482

615

4,186

335
—

295
—

179
17

2,839
—

4,588 ¥

4,172 ¥

4,322 $

38,881

Major assumptions used in the calculation of the above information
for the three years ended March 31, 2007 were as follows:
2007
Method attributing the
projected benefits toperiods of services
Discount rate
Expected rate of return on
pension plan assets
Amortization of prior service
cost
Amortization of actuarial
differences

2006

2005

StraightStraightStraight-line
line method line methodmeathod
2.0%

2.0%

2.0%

2.0%

2.0%

2.0%

10 years

10 years

10 yearsprincipally
10 yearsprincipally
10 yearsprincipally
10 years

7. Contingent Liabilities
At March 31, 2007 and 2006, the Seino Group was contingently
liable for trade notes endorsed to affiliates and the third parties, andfor guarantees, including substantial guarantees, principally ofindebtedness of affiliates and the third parties in the aggregate
amounts of ¥3,059 million ($ 25,924 thousand) and ¥4,488 million,
respectively.

8. Lease Commitments
The Seino Group has entered into various rental and lease agreements for land and buildings to be used for truck terminals and warehouses which are generally cancelable with a few months' advancenotice and also non-cancelable lease agreements for computer equipment and radio facilities with two-to-six year contract terms as lessee.
The aggregate minimum future lease payments for such non-cancelable
lease agreements, including the imputed interest portion, as at March
31, 2007 and 2006 were as follows:
Millions of Yen

2007
Due within one year
Due after one year

¥
¥

735 ¥
949
1,684 ¥

Thousands of
U.S. Dollars

2006

2007

881 $
984
1,865 $

6,229
8,042
14,271

A certain consolidated subsidiary engaged in the leasing operations
entered into various lease agreements principally for vehicles with thethird parties as lessor, which were categorized as financing leases. At
March 31, 2007 and 2006, the aggregate future minimum lease commitments to be received for such non-cancelable lease agreements, including the imputed interest, were as follows:

Thousands of
U.S. Dollars

Millions of Yen

2007
Due within one year
Due after one year

¥
¥

2006

175 ¥
233
408 ¥

162 $
261
423 $

2007
1,483
1.975
3,458

In addition to above, a certain consolidated subsidiary engaged in
the leasing operations leases the property as lessee and also leases thesame property to affiliates and the third parties as lessor. At March 31,
2007 and 2006, the future minimum commitments under such agreements, including the imputed interest portion, were as follows:
Minimum rentals
Minimum rentals
to be paid to be received to be paid to be received
Millions of Yen
Thousands of U.S. Dollars

At March 31, 2007:
Due within one year
Due after one year¥¥

At March 31, 2006:
Due within one year
Due after one year

¥
¥

145 ¥
33
178 ¥

157 $
35
192 $

519 ¥
209
728 ¥

553
224
777

1,229 $
279
1,508 $

1,330
297
1,627

21

9. Equity
(a)

(b)

The authorized number of shares of common stock without par value
is 794,524,668 shares. At March 31, 2007 and 2006, respectively, thenumber of shares of common stock issued was 207,679,783 shares. At
March 31, 2007 and 2006, respectively, number of treasury stock heldby the Seino Group was 10,382,693 and 11,417,339 shares. Capitalsurplus principally consisted of additional paid-in capital. At March
31, 2007 and 2006, respectively, retained earnings included legal
reserve of the Company in the amount of ¥4,262 million ($36,119
thousand). The Corporate Law of Japan (formerly the Commercial
Code of Japan) provides that an amount equivalent to 10% of cash
dividends as an appropriation of retained earnings shall be appropriatedas a legal reserve until a total amount of additional paid-in capital andsuch legal reserve equals 25% of common stock. The reduction oflegal reserve is restricted under the certain circumstance by proper
actions of shareholders of the Company.
On July 1, 2005, the Company implemented a rights plan using stockacquisition rights and trust mechanism (”trust-type rights plan”) as a(c)means of dealing with the acquisition of the Company’s common
stock resulting in a particular shareholder holding more than 20% of
the Company’s common stock and proposals of acquisition without
the prior approval of the Board of Directors, and issued stockacquisition rights to The Sumitomo Trust & Banking Co., Ltd. at nocharge as part of the plan based on the approval of shareholders at theannual general meeting of shareholders in June 2005. Up to397,262,334 shares of the common stock would be issuable at a
certain price for exercise of these stock acquisition rights for theperiod from July 1, 2005 to June 30, 2008.
The shareholders of the Company approved the followings appropriations of retained earnings at the annual general meeting ofshareholders on June 26, 2007:

Cash dividends (¥11 per share)

Millions of Yen

Thousands of
U.S. Dollars

¥

$

2,195

18,602

10. Income Taxes
Income taxes for the years ended March 31, 2007, 2006 and 2005
consisted of the following:Thousands of
U.S. Dollars

Millions of Yen

Income taxes:
Current
Deferred

2007

2006

2005

2007

5,912 ¥
(295)
5,617 ¥

6,644 ¥
1,178
7,822 ¥

7,483 $
(840)
6,643 $

50,102(2,500)47,602¥¥The tax effects on temporary differences that give rise to a significant portion of deferred tax assets and liabilities at March 31, 2007 and2006 were as follows:
Millions of Yen

2007
Deferred tax assets:
Employee retirement benefit
liability
Enterprise tax accruals
Accrued bonuses
Intercompany capital gain
Loss on assets transferred
Impairment loss on fixed assets
Unrealized losses on availablefor-sale securities
Other
Less, valuation allowance
Deferred tax liabilities:
Deferred capital gain
Unrealized gains on availablefor-sale securities
Valuation adjustment for
consolidation
Net deferred tax assets

2006

Thousands of
U.S. Dollars

2007¥ 20,226 ¥ 17,160 $ 171,407
370
480
3,136
3,768
3,596
31,932
902
932
7,644
1,511
1,971
12,805
10,0898,699
85,50037
4,312
41,215(15,877)
25,33843
3,588
36,469(12,448)
24,021

314
36,542349,280(134,551)
214,729

6,278

5,956

53,203

6,734

6,839

57,068

6,953
4,614
58,924
19,965
17,409169,195¥ 5,373 ¥ 6,612 $ 45,534

At March 31, 2007 and 2006, deferred tax assets and liabilities
were recorded as follows:

22

Millions of Yen

Deferred tax assets:
Current
Non current
Deferred tax liabilities:
Current
Non current¥

Thousands of
U.S. Dollars

2007

2006

2007

4,560 ¥
10,3804,533 $
9,713

38,64487,966

4
9,563

8
7,626

34
81,042In assessing the realizability of deferred tax assets, management of
the Seino Group considers whether it is more likely than not that some
portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generationof the future taxable income during the periods in which those temporary differences become deductible. At March 31, 2007 and 2006, a
valuation allowance was provided to reduce the deferred tax assets tothe extent that the management believes that the amount of the deferred
tax assets is expected to be realizable.
A reconciliation of the differences between the Japanese statutory
effective tax rate and the actual effective income tax rate on pretax
income reflected in the accompanying consolidated statements of operations for the year ended March 31, 2005 was as follows.
Percentage of pretax
incomeJapanese statutory effective tax rate
Increase (decrease) due to:Permanently nondeductible
expensesTax exempt income
Local minimum taxes-per capita
levy
Amortization of consolidation
adjustment accountEquity in net income of affiliates
Other
Actual effective income tax rate

2005
40.4%

0.6
(0.1)
2.4
(11.9)
(0.4)
(1.0)
30.0%

Such reconciliation for the years ended March 31, 2007 and 2006
was not disclosed, as the difference was not material for the year ended
March 31, 2007 and the Seino Group recorded net loss for the year
ended March 31, 2006.

11. Segment Information
During the current year, the Seino Group operates in four business segments: transportation services, vehicle sales, leasing for real estate services and otherservices. Information by industry segment for the years ended March 31, 2007, 2006 and 2005 was summarized as follows:

For the year 2007:
Operating revenue:
External customers
Inter-segment sales
Total operating revenue
Operating costs and expenses
Operating income

Transportation
services

Vehicle salessLeasing for realestate services

85,54910,18095,72992,608
3,121¥¥

86,114
1,601
97
1,675

307,8881,768
309,656
303,782
5,874¥

82,334
9,153
91,487
89,333
2,154

308,671
12,897
17,794
13,478¥

83,101
1,533
1,991
2,959

¥

For the year 2007:
Operating revenue:
External customers
Inter-segment sales
Total operating revenue
Operating costs and expenses
Operating income$ 2,776,051
14,4492,790,500
2,743,424$
47,076$

724,991
86,272811,263784,81326,450$Identifiable assets
Depreciation
Impairment loss on fixed assets
Capital expenditures$ 2,870,076
123,348
13,721
122,331$

Identifiable assets
Depreciation
Impairment loss on fixed assets
Capital expenditures
For the year 2006:
Operating revenue:
External customers
Inter-segment sales
Total operating revenue
Operating costs and expenses
Operating income
Identifiable assets
Depreciation
Impairment loss on fixed assets
Capital expenditures¥

327,574
1,705
329,279
323,724
5,555

¥

¥

338,669
14,555
1,619
14,435

¥

¥

¥
¥

¥

¥

$

Transportation
services

For the year 2005:
Operating revenue:
External customers
Inter-segment sales
Total operating revenue
Operating costs and expenses
Operating income
Identifiable assets
Depreciation
Capital expenditures

Other

Total

Elimination

Consolidated

Millions of Yen

729,780
13,568822
14,195

1,079
—
1,079
174
905

¥

¥

9,260
49
—
—

¥

1,004
—
1,004
167
837

¥

¥

9,015
45
2,129
2

¥

¥

27,385
304
11
171

¥

36,29435,71972,01370,786
1,227

¥

¥
¥

29,178413
10120449,486
48,463497,949
487,080
10,869¥¥461,428
16,5091,727
16,281¥

427,520
46,640474,160
464,068
10,092¥¥¥429,965
14,88821,924
16,559Thousands of U.S. Dollars
9,144$
299,017$ 3,809,203—
309,983
410,704
9,144
609,000
4,219,907
1,474
598,085
4,127,796
7,670$
10,915$
92,111$$

Merchandise
sales

35,28436,57871,862
70,574
1,288

78,475
415——$

Information
services

232,076
2,576
93
1,449

$ 3,910,407
139,907
14,636
137,975

Other—(48,463)(48,463)(48,390)
(73)

¥

¥

6,578
(256)
—
(255)

¥

468,006
16,253
1,727
16,026¥—(46,640)(46,640)(46,630)(10)¥

427,520—
427,520
417,438
10,082¥¥449,486—
449,486
438,690
10,796¥¥¥

16,968
(228)
—
(276)

$

—
(410,704)(410,704)(410,085)(619)$ 3,809,203—
3,809,203
3,717,711$
91,49255,746(2,170)—(2,161)$ 3,966,153
137,737
14,636
135,814

Elimination

Consolidated

$
$

Total

¥

446,933
14,66021,924
16,283

Millions of Yen¥¥¥

307,264
1,932
309,196
301,265
7,931¥

340,636
12,045
15,163¥¥

98,25927,916
126,175
123,801
2,374¥

92,639
1,544
2,252

¥

¥

5,268
6,001
11,269
11,195
74

¥

5,211
255
111

¥

¥

13,042
13,55926,601
24,928
1,673¥

14,794
127
168

¥

¥

423,833
49,408473,241
461,189
12,052¥453,280
13,971
17,694¥¥—(49,408)(49,408)(49,403)(5)¥

17,212
(227)
(373)

¥

¥

423,833—
423,833
411,786
12,047
470,492
13,744
17,321

Notes: 1. Identifiable assets in the elimination column represent unallocated general corporate items which are not assigned to a particular industry segment such as
cash, short-term and long-term investment securities, net of inter-segment balances.
2. Accounting changes:(Accounting change in the composition of reportable business segment)
Effective from the year ended March 31, 2006, the Company changed the composition of its reportable business segment from “transportation services”, “merchandise sales”, “information services” and “other” segment to “transportation services”, “vehicle sales”, “leasing for real estate services” and “other” segment in order
to disclose segment information more properly. For the year ended March 31, 2006, “vehicle sales” segment, which was the core business of the “Seino Group”,
was separately shown, and “merchandise sales, except for vehicle sales” and “information services”, which were not material as the “Seino Group”, were included
in “other” segment. “Leasing for real estate services” segment was separately shown, as operating income of its business segment became material to be disclosed.
If the previous reportable business segment composition was applied, operating results for the year ended March 31, 2006 were reclassified as follows:
Merchandise
Information
sales
services
Other

Millions of Yen
Operating revenue
Operating income¥

100,962
2,778

¥

4,954
18

¥

13,717
1,415(Accounting standard for directors' bonus)
As disclosed in Note 2 (s-iii), from the year ended March 31, 2007, the Seino Group has adopted the new accounting standard for directors' bonus. As a result, as
compared with the previous accounting method, operating income of “transportation” segment, “vehicle sales” segment and “other” segment decreased by ¥35 million ($297 thousand), ¥50 million ($424 thousand) and ¥26 million ($220 thousand) for the year ended March 31, 2007, respectively.

(Accounting change of the recognition for installment sale commission)
As disclosed in Note 2 (s-iv), with effect from the year ended March 31, 2007, the Seino Group changed the accounting method of the income classification torecord installment sale commission. As a result, as compared with the previous accounting method, operating income of “vehicle sales” segment increased by¥1,044 million ($8,847 thousand) for the year ended March 31, 2007.

(Accounting change of the recognition for vehicle sales)
As also described in Note 2 (s-v), effective April 1, 2006, the Seino Group changed the accounting method for the recognition for vehicle sales. As a result, as compared with the previous accounting method, operating revenue and operating income of “vehicle sales” segment increased by ¥854 million ($7,237 thousand) and¥110 million ($932 thousand), respectively, for the year ended March 31, 2007.

Geographic segment information is not shown, as operating revenue and total assets of overseas subsidiaries were not material in the three years ended
March 31, 2007. Information for overseas sales is not disclosed as such sales were not material.

23

Report of Independent Auditors

Report of Independent Auditors
To the Board of Directors and Shareholders of
SEINO HOLDINGS Co., Ltd.

We have audited the accompanying consolidated balance sheets of SEINO HOLDINGS CO., LTD. (the “Company”) andits subsidiaries (together with the Company, the “Seino Group”) as of March 31, 2007 and 2006, and the related
consolidated statements of operations, changes in equity, and cash flows for each of the three years in the period ended
March 31, 2007, all expressed in Japanese Yen. These consolidated financial statements are the responsibility of the Seino
Group's management. Our responsibility is to express an opinion on these consolidated financial statements based on our
audits.
We conducted our audit in accordance with auditing standards generally accepted in Japan. Those standards require thatwe plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are freeof material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the consolidated financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall consolidated financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, theconsolidated financial position of the Seino Group as of March 31, 2007 and 2006, and the consolidated results of its
operations and its cash flows for each of the three years in the period ended March 31, 2007 in conformity with accounting
principles generally accepted in Japan.
As described in Notes 2(s), effective for the year ended March 31, 2007, the Seino Group changed its accounting methodsof the recognition for installment sale commission and vehicle sales. As described in Note 2 (j), effective from the year
ended March 31, 2006, the Company and its domestic subsidiaries adopted a new accounting standard for impairment of
fixed assets. In addition, as disclosed in Note 11, effective from the year ended March 31, 2006, the Company changed thecomposition of its reportable business segment.
The amounts expressed in U.S. dollars, which are provided solely for the convenience of the reader, have been translatedon the basis set forth in Note 1 to the accompanying consolidated financial statements.

Misuzu Audit Corporation
Nagoya, Japan
June 26, 200724

Seino GroupThe Seino Group consists of Seino Holdings Co., Ltd. and 50 consolidated subsidiaries and 10 affiliates. The Seino Group
operates in four business segments, namely transportation services, vehicle sales, real-estate leasing services and otherservices. Business relationship in the Seino Group is as follows.

Clients
Collection and
Delivery

VehiclesSales and Repairs

Domestic
Transportation

Vehicle Sales

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
Kanagawa 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
Showa 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 Hokuriku Express Co., Ltd.
*1
Seino Nagoya Express Co., Ltd.
*1
Seino Osaka Express Co., Ltd.
*1
Seino ST Service Co., Ltd.
*1
Seino Logistics Hokkaido Co., Ltd.
*1
S&N Logistics 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.
Takuma Seino Transportation Co., Ltd.
Seino Kanagawa Express Co., Ltd.
Tango Seino Transportation Co., Ltd.
Box Charter Co., Ltd.

Sales andServices

Real Estate
Leasing

Information Services

Toyota Corolla Gifu Co., Ltd. *1
Gifu Hino Motor Co., Ltd. *1
Netz Toyota Gifu Co., Ltd. *1
Netz Toyota Centro Gifu Co., Ltd. *1
Asahi Enterprise Co., Ltd. *1
Jms Gifu Co., Ltd. *1

Ve h i c l e
Sales

Seino Information
Service Co., Ltd.

*1

Japan Logistics
Development Co.,
Ltd.

*1

Real Estate Leasing Services
Seino Transportation Co., Ltd.
etc.

Real Estate
Leasing

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

OthersInternational
Transportation
Seino Logix Co., Ltd.

*1

United-Seino Transportation(Malaysia) Sdn. Bhd.

*1

Seino Transportation(Thailand) Co., Ltd.

*1

Seino Merchants Singapore
Pte Ltd.

*1

Seino Customs Clearance
Service Co., Ltd.

*1

*1
Asahi Leasing Co., Ltd. (Rental and lease)*1
Asahi Agency Co., Ltd. (Advertising agency)*1
Seino Do Brasil Armazens Gerais Ltda. (Storage)*1
Suito Taxi Co., Ltd. (Passenger transportation)*1
Seino Engineering Co., Ltd. (Construction)*1
Seino Family Co., Ltd. (Insurance agency service)*1
Asahi Travel Service Co., Ltd. (Travel agency)*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

Asahi Bangkok Co., Ltd.
Schenker-Seino Co., Ltd.

Other

Tr a n s p o r t a t i o nServices

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.

50
2
8

25

Seino Holdings Co., Ltd.
1, Taguchi-cho, Ogaki, Gifu 503-8501, Japan

Printed in Japan