SENKO Co., Ltd.
Contact : Public Relations Division, President Office
Umeda Sky Bldg., Tower West, 1-30, Oyodonaka 1-chome, Kita-ku, Osaka 531-6115, Japan
Tel: +81 6 6440 5156

Fax: +81 6 6440 5148

URL http://www.senko.co.jp/en/
Printed in Japan

Profile

Established in Osaka in July 1946, Senko Co., Ltd. is an integrated distribution
services company. The Company has grown steadily over the years, listing on theFirst Section of the Osaka Securities Exchange in 1975 and on the First Section of theTokyo Stock Exchange in 1990.
As of March 31, 2012, the Senko Group had a nationwide network with 330 locationsin Japan, an overseas network with facilities in 28 locations, 2,250,000 square metersof warehouse space, and a fleet of 21 owned and chartered ships. The Company has
wide-ranging business activities centered on trucking. Including partner companies,
Senko operates more than 10,000 trucks every day. Activities also encompass
warehousing, marine transport, in-factory services, and multimodal internationalcargo transport.
Senko's forte lies in supplying integrated distribution services, from distribution
consulting to system design and operations, that closely match customer needs.

Consolidated Financial Highlights

SENKO Co., Ltd. and Consolidated Subsidiaries

Years ended March 31

2012

2011

2012
Thousands of
U.S. dollars

Millions of yen

For the year:
Operating revenues¥270,361¥241,046$3,289,463

Operating income

8,274

6,100

100,669

Net income

3,479

2,261

42,329Total assets

202,847

177,285

2,468,025

Net assets

63,27460,605

769,850

At year end:

These efficient integrated distribution services have an excellent reputation in themarket based on the provision of efficient transportation and distribution systems
centered on the Best Partner System that support the construction of customer supply
chain management systems. The Company's Best Partner System is a new logistics
system that takes full advantage of information technology.
Senko will continue to leverage information technology to provide high-quality,
efficient logistics solutions on a global scale. The goal is to become a logistics
information company with capabilities that go well beyond the conventional
activities of logistics companies.

Contents

Consolidated Financial Highlights
A Message from the President
Outline of Medium-term Business Plan
Review of Operations
Distribution
Trading and Commerce
Others
Review of Operations by Product Category
Corporate Social Responsibility
Financial Review
Financial Section
Report of Independent Certified Public Accountants
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows
Notes to the Consolidated Financial Statements
Stock Information
Board of Directors and Corporate Auditors, Executive Officers
Corporate Data
Domestic and Global Network
Consolidated Subsidiaries and Affiliated Companies

Yen

U.S. dollars

Per share data:
Net income¥27.65¥18.44$0.34

Cash dividends

12.00

10.00

0.15

Net assets

488.25469.14

5.94

Note : U.S. dollar amounts are converted from yen, for convenience only, at the prevailing rate of ¥82.19 to U.S.$1 on
March 31, 2012.

1
2
4
6
7
7
8
10
14
Operating revenues

17
18
20
20
21
22
23
39
40
40
41
41

Cautionary Statement with Respect to Forward-Looking Statements

Net income

Net income per share(Billions of yen)

(Millions of yen)

(Yen)

300

3,600

30

250

3,000

25

200

2,400

20

150

1,800

15

100

1,200

10

50

600

5

0

08

09

10

11

12

0

08

09

10

11

12

0

08

09

10

11

12

Plans and strategies concerning future business performance included in this annual report are forward-looking statements
based not on historical facts but on management’s assumptions and beliefs in the light of the information currently
available to it, and thus involve a certain element of risk and uncertainty.

1

A Message from the President

Focusing All of the Group’s Energy
Overview of the Fiscal YearThe fiscal year that ended in March 2012 began with sharp drops inexports and production in Japan immediately after the Great East Japan
Earthquake of March 2011. The Japanese economy subsequently made a
steady recovery to the pre-earthquake level as damaged facilities were
repaired and supply chains were restored. However, the outlook for the
economy is still uncertain because of slowing economic growth overseas,
the impact of the strong yen on Japan’s exports, the high cost of crude oil,the electricity shortage in Japan and other problems.
In the logistics industry, there was a rapid recovery in the volume ofcargo following the steep drop caused by the earthquake. Despite thisrebound, the volume of cargo has remained weak primarily because of
the impact of the yen’s strength and flooding in Thailand on exports and production.
In this environment, assisting customers recover from the effects of the March 2011 earthquake was the highest
priority of the Senko Group. The past fiscal year was the second year of the three-year medium-term businessplan that started in April 2010 based on the slogan “Moving Global.” There were numerous initiatives in Japanand other countries by group companies to achieve the goals of this plan.
In Japan, operations started at the Noda No. 1 PD Center and Noda No. 2 PD Center in Chiba prefecture. These
centers, which are the company’s largest distribution base, provide distribution services for large retailers andreinforce logistics services in the Tokyo Metropolitan region. In addition, operations started at the Hyuga PD
Center in Miyazaki prefecture and the Kita-Hiroshima PD Center in Hokkaido. Operations in Japan were
further strengthened with the completion of the Sen-ouu Maru chemical tanker. Overseas, the Kentucky
Distribution Center was completed in the United States to serve both U.S. and Japanese companies.
Two companies joined the Senko Group as subsidiaries during the fiscal year. Smile Corp. is a trading
company that handles packaging materials, food, alcoholic beverages and household products. This company
will help strengthen the trading and commerce business. Chugoku Piano Transport Co., Ltd. provides
transportation services for musical instruments, precision instruments, heavy equipment, medical equipment
and other items. Acquiring this company will allow the Senko Group to enter a new sector of the distribution
services market.
Consolidated operating revenues increased 12.2% to 270,361 million yen. The volume of cargo for current
customers increased due mainly to demand involving earthquake recovery activities and products associated2

on Achieving the Goals of the Medium-term Business Plan.
with earthquake damage and conserving electricity. The acquisition of Smile and aggressive measures to attract
new customers also contributed to the growth in revenues.
Earnings were higher despite additional expenses for fuel and other items due to the acquisition of Smile because of
the growth in revenues and cost-cutting measures. Consolidated operating income increased 35.6% to 8,274 million
yen, ordinary income increased 30.7% to 8,333 million yen and net income increased 53.8% to 3,479 million yen.
Distribution of Earnings
Our fundamental policy for the distribution of earnings is to pay a dividend that is stable dividend while also
reflecting results of operations in each fiscal year. The goal is to increase the earnings distributions to shareholders
while maintaining sufficient retained earnings to support future growth and build a stronger base of operations.
The dividend for the fiscal year that ended in March 2012 is 12 yen per share. This is the sum of interim andyear-end dividends of 6 yen, each of which includes a 5 yen ordinary dividend and 1 yen commemorative dividend
for the company’s 65th anniversary.
Developing New Markets under the Medium-term Business Plan
A slow recovery of the Japanese economy is expected that is supported by an increasing global economic growthrate backed by emerging countries, demand in Japan associated with earthquake recovery activities, and otheritems. However, the economic outlook is uncertain because of the numerous risk factors that may cause an
economic downturn in Japan and overseas.
In accordance with its medium-term vision, the Senko Group is taking many actions aimed at becoming a “logistics
and information organization,” that provides high-quality services with outstanding performance in relation totheir cost on a global scale. Accomplishing this goal will require coexisting with society and instilling commitment
to growth among employees. Our actions also include measures to increase the motivation and health of employees
and upgrade their skills. In addition, we are dedicated to fulfilling our corporate social responsibilities withparticular emphasis on compliance with laws and regulations, environmental protection, and safety.
We ask for the continued support of our shareholders as we continue moving forward to achieve our goals.
September 2012

Yasuhisa Fukuda
President and Representative Director

3Outline of Medium-term Business Plan
Senko has now started its three-year medium-term business plan since April 2010.
In accordance with the slogan of “Moving Global”, we aim to achieve
our quantitative plan targets to mobilize all available group resources.

G rou p Sl ogan

Go beyond logistics, make the world go round, and revolutionize business.

G o beyon d logistics

M e d i u m - Te rm B u s i ne s s S t ra t e g y
1

Break into new “Overseas Markets”

2

Take proactive action towards “Mergers & Acquisitions” and the need for “Third-Party Logistics”

3

Expand operations in Physical Distribution Business4

Expand Trading & Commerce Business5

Expand market share and business field with a more varied sales menu

M a j o r P l a ns b y B u s i ne s s C a t e g o ry

Provide customers with high-quality services beyond the framework of an existing logistics company.

Make the w orld go round
Conduct a “global” business with social consciousness.

Retail-related Products Logistics

Revolu tionize b u siness

Operation of Physical Distribution Business overseas,
Further cultivation of logistics services for chain stores, Expansion of fashion logistics, etc.

Offer customers new value by cultivating an awareness of self-development in employees.

Expansion of Housing Logistics
Provision of overseas logistics operations, Establishment of cooperative procurement centers,
Provision of logistics for Eco-friendly home equipment products, etc.

Med i u m- Ter m Busi n ess P o lic y

Chemical-related Products Logistics
Promotion of Third-party Logistics, Expansion of Special Cargo Transport, Responding to customer needs
when setting up operations overseas, etc.

1

Meet the needs of customers at home and abroad, and pioneer new markets.

2

Achieve high overall efficiency as a group and provide customers with high- quality services and superior cost performance.

Strengthening and expanding wholesale trading, Promotion of businesses
that fuse commercial distribution and physical distribution, etc.

3

Live up to our corporate social responsibility by improving the following three pillars of activities: Compliance,
Environmental Preservation, and Safety.

Other Logistics-related Businesses

4Introduce regulations and improve the work environment to promote incentive-based motivation,
good health and skills upgrading of group employees.

5

Advance financial measures focused on preserving financial soundness.

Trading and Commerce Business

Expansion of logistics services overseas, Proactive involvement in the business of Moving, Transport-related and Manpower, etc.

Smile Joins the Senko GroupG oal s of M edi u m- Ter m B u s in e s s P la n
Scale

Operating Revenues: 300 billion yen
・Aim at net sales of 300 billion yen by expanding market share and businessfield, and expanding sales from the following businesses by 72.0 billion yen:・Physical distribution center business, international logistics business,retail-related business, 3PL (Third-Party Logistics) business.
・Promote mergers and acquisitions to gain synergistic effect in business.

Profitability

Operating Income: 9.0 billion yen
・Ordinary Income: 8.5 billion yen(Operating income margin: 3%)

・Net Income: 4.3 billion yen* Operating revenues, operating income, ordinary income and net income are on target to meet the goals set for the final year
(ending March 2013) of the medium-term business plan.
Forecast of consolidated operating results for the year ending March 2013 (from April 1, 2012 to March 31, 2013)
・Operating Revenues: 300.0 billion yen
・Operating Income: 10.2 billion yen
・Ordinary Income: 10.0 billion yen
・Net Income: 5.0 billion yen

4(Billions of yen)

227.7

FY 03/10(Billions of yen)

300.0

FY 03/13

9.0

6.2

FY 03/10

In September 2011, Senko acquired Smile Corp., a trading company that handles packaging materials, food andalcoholic beverages, and household products. This acquisition is contributing to the growth of the trading andcommerce business, which is one goal of Senko’s medium-term business plan.
Senko is going beyond the sale of merchandise to offer a new business model as a logistics company that combinescommercial logistics with conventional logistics services. Making Smile a subsidiary allows combining Senko’s logistics
skills for high-volume and other retailers with Smile’s expertise in selling merchandise to retailers, restaurant
companies, catalog sales companies, manufacturers of precision devices and other companies. With these capabilities,
Senko is building a unified business model covering commercial and conventional logistics. The model extends fromthe planning and procurement of merchandise to delivery to end users and encompasses overseas activities, too.
Smile Corp.
Established
Capital
Sales
Activities

June 1977¥570 million
About ¥30 billion (FY3/13 forecast)
Manufacture and sale of packaging materials;
wholesaling of food and alcoholic beverages
and household products

FY 03/13

5

Review of Operations
This section is a review of operations for business segments
which consist of Distribution, Trading and Commerce, and Others.

D istri buti o nBusiness segments

82.3%

Operating revenues(Billions of yen)

250

211.5

222.5

200
150
100
50
0
11

12

Business segments

Tr a d i n g a n d C om m e rc e
Distribution encompasses a broad array of activities. Senko
transports cargo by truck, rail and ship and handles
international cargo shipments. We also perform distribution
operations at factories, operate distribution centers in Japan andoverseas, and conduct other operations.
The Senko Group meets customers’ needs by improving
efficiency and optimizing operations across the entire supply
chain. We have distribution facilities in Japan and overseas andcan handle almost any type of cargo associated with food,clothing and shelter. Operations include industrial raw
materials, industrial products, construction materials,
homebuilding materials, agricultural products, food, consumer
products, cargo for relocations and many other types of cargo.
Furthermore, we provide transport, storage, inventory
management and other services that precisely match thecharacteristics of each type of cargo.
There was growth in cargo volume for current customers in the
housing logistics sector because of earthquake reconstruction
demand, including for temporary housing, and in the retaillogistics sector because of demand for housing-related products
associated with earthquake reconstruction,
electricity-conserving products, and products to cope withsummer heat. Extensive measures to attract new customers also
contributed to this segment’s performance. The result was a
5.2% increase in operating revenues to 222.5 billion yen.

16.6%

This segment includes sales of petroleum products, trading
sales and international trade.
Many activities in this segment are associated with the Group’s
core distribution business. Operations include the sale ofpetroleum cards and the sale of logistics products such asindustrial vehicles, cargo distribution and loading equipment,
and other large logistics equipment as well as cargo wrapping
materials. Activities also include wholesale sales of householdproducts and Internet sales of food products.
In addition, we handle imports and exports of merchandise byintegrating the functions of a trading company and logistics
company in order to improve the efficiency of distribution
activities for customers.

Operating revenues(Billions of yen)

50.0

44.8

40.0

26.6

30.0
20.0

Operating revenues increased 67.9% to 44.8 billion yen mainly
because of the addition of Smile Corp. to the Senko Group,
higher sales at Marufuji Co., Ltd., growth of the tradingbusiness, and higher sales in the petroleum product sales
business.

10.0
0
11

12

Business segments

OthersThis segment consists of activities other than the operations of
the distribution and trading and commerce business segments.
Operations include outsourced data processing services, motor
vehicle maintenance, insurance agency services and otheractivities.
As a provider of logistics services that make extensive use of IT,
we can offer IT services that take advantage of our many yearsof experience in the utilization of IT. Our vehicle maintenancebusiness is backed by expertise that we have accumulated since
we started operations. Activities in this segment also include
insurance agency, transportation safety education and otherservices.
Operating revenues increased 7.2% to 3.1 billion yen primarily
because of higher data processing revenues.

1.1%

Operating revenues(Billions of yen)

4.0

3.0

2.8

3.1

2.0

1.0

0
11

6

12

7

Review of Operations by Product Category
Sales composition

Others19.4%

Retailproduct
logistics

33.6%
Chemicals
Logistics

20.7%

Housing logistics

26.3%

H o u s i ng L o g i s t i c s
In addition to the disclosure of business segment
information, we report performance in the
distribution segment based on cargo anddistribution characteristics of customers. This
information is provided to give shareholders abetter understanding of our business operations.

R e t ai l Produ ct Logi st i cs
This category is the nucleus of our growth strategy. We are one ofJapan's leading providers of third-party logistics (3PL) for retailproducts. Our expertise covers logistics for home improvement
centers, large retailers and other chain stores, comprehensive
logistics services for apparel companies, oversight for the
distribution of medical and pharmaceutical products, creating newlogistics models for hospitals, and many other activities.
Performance benefited from large capital expenditures.
Furthermore, there was an increase in the volume of cargo for large
retailers and other retailers, mainly housing products associatedwith earthquake reconstruction, disaster-related products,
electricity-conserving products, and products to cope with summer
heat. As a result, operating revenues increased 9.4% to 74.8 billionyen.

We provide SCM systems for housing construction for
major prefabricated housing manufacturers and othercompanies. Services include just-in-time delivery services
extending from raw material procurement to deliveries toconstruction sites. We can also comply with zero-emission
requirements at construction sites and other customer
needs. SCM operations for manufacturers of homebuilding
materials and other construction materials are another partof this category. This diversity allows us to meet theincreasing demand for joint logistics systems for the entire
homebuilding industry.
Aggressive sales activities resulted in growth of revenues
from manufacturers of homebuilding materials and othercompanies. In addition, there were revenues for thetransport of temporary housing and materials involving
earthquake recovery activities. The result was a 6.2%
increase in operating revenues to 58.5 billion yen.

C he m i c a l s L o g i s t i c s
We have a broad range of SCM activities backed byknow-how acquired from chemical logistics activities
dating back to the inception of Senko. Operations extend
from raw material procurement to transporting chemicals
to end users and assisting customers start overseas
operations. We handle ordinary and specialty resins as wellas film products, molded plastic products, liquids,
hazardous substances, rubber products and many otheritems.
The drop in manufacturing activity after the earthquake
caused cargo volume to fall, but this downturn was offset
by aggressive measures to increase sales and by thebenefits of large capital expenditures. The result was a 0.2%
increase in operating revenues to 46.0 billion yen.

O t he rs
This category includes all logistics services other than for retail products, housing and chemicals. Currently, the major
activities in this category are logistics services for food, electrical and other machinery, and goods handled by trading
companies and a moving service.
Operating revenues increased 2.5% to 43.3 billion yen due to the contribution of activities to increase revenues from thetransport of food, electrical machinery and other machinery.

89Corporate Social Responsibility
The transport industry to which Senko’s core business belongs has a highly public mission.
It is essential to its continued viability as a company that Senko contribute to society
through the practice of its core business and fulfill its public responsibilities.
This “corporate social responsibility” is also a priority in the medium-term business planthat started in 2010, and we are pursuing initiatives focused on compliance, global
environmental protection, and safety.

C o rp o ra t e G o ve rna nc e a nd C o m p l i a nc e
Corporate Governance Philosophy and Systems
The Senko Group, as a business involved in logistics work of a highly public nature, makes every effort to ensure that its
corporate activities are thoroughly compliant with laws, based on awareness that proper corporate governance is thefoundation of our existence as a business and is regarded as a high priority managerial issue.
General Meeting of Shareholders

Stakeholder Relationships in Senko’s Business

Servicess 0ARTNERSHIPSs Proper information
disclosures 4RAFFIC SAFETY
s %NVIRONMENTAL CONSCIOUSNESSs 2EGIONAL EXCHANGE
s 3OCIAL CONTRIBUTION
s 0ROPER DISCLOSURE OF INFORMATION

Cooperative companies andprocurement sources

Customers

SENKO Co., Ltd.

Transport anddelivery customers<Business Activities>

Regional
communities

Employees

Governments 0ARTNERSHIP
s %NVIRONMENTAL CONSCIOUSNESS

s -AINTAINING SAFETY AND HEALTH IN
the workplaces .URTURING PERSONNEL
s &AIRNESS IN EMPLOYMENTBoard of Corporate Auditors

Appointment / Dismissal

Audit

Board of Directorss ,EGAL COMPLIANCE
s 4RAFFIC SAFETY
s %NVIRONMENTAL CONSCIOUSNESS

ReportAudit

Appointment / Supervision

Assist / Report

Representative Director

As anenvironmentallyfriendly company

Promotion of activities that reduce environmental impact,
such as green logistics and procurement, as a part of our
mission to reduce CO2 emissions as a company

As a company thatprioritizes safety

Use of a PDCA management cycle to reduce motor vehicle
accidents and workplace accidents as part of initiatives aimed
at achieving an accident-free workplace

CSR Promotion Committee
Members of the Board of Directors /Corporate Auditors, Chairmen of Other Committees, etc.

ReportInstruct
Audit

ReportReportAdviceCompliance Committee
Corporate Ethics Committee
Internal Controls Committee
Risk Management Committee
Health and Safety Committee
Environmental Promotion Committee

Compliance Committee(EAD /FFICE
Committee(EAD /FFICE 
Production Management DivisionCorporate Ethics Committee(EAD /FFICE 
General Affairs DivisionInternal Controls Committee(EAD /FFICE 
CSR Promotion Group

Risk Management Committee(EAD /FFICE 
General Affairs Division(EALTH AND 3AFETY #OMMITEE(EAD /FFICE  3AFETY AND
Environmental Management Division

Environmental Promotion Commitee(EAD /FFICE  3AFETY AND
Environmental Management Division

Each division and affiliated companies

CSR Promotion Committee

1 The board of directors meets at least once a month to decide upon important matters pertaining to the management of
the company, in addition to legally required items; it is also seen as an organization for the monitoring of business
operations. Furthermore, an operating officer system has been introduced with the idea of functional strengthening of
the board through the division of the functions of “management decision-making and monitoring” and “business
operations”, thereby strengthening each function and clarifying the responsibilities; at the same time, a corporate
management committee, attended by the operating officers, has been established to verify the status of business
operations and bring about more transparent management.
2 The auditors observe the performance of directors from an objective perspective, work with the Auditing Department(the company’s internal monitoring department) and accounting auditing bodies to ensure thorough compliance atboth the company and its subsidiaries, and perform strict audits.

Compliance-based Management
The Senko Group adheres to the principle of operating honestly and fairly. Every department ensures that the Senko
Standards of Business Conduct, the Senko Group Corporate Ethics Committee, and the Business Ethics Helpline are
known throughout the organization and are constantly being reinforced. The Board of Directors determines the guidelines
and substance of priority items.

D e e p e ni n g ou r commi t m e n t to c o r p o r a te s o c ia l re s po n s ib i l i t y

The CSR Promotion Committee

Members of the Board of Directors /Executive Officers / Corporate Auditors

Implementing Responsibilities; Auditing and Monitoring

Sustainable business operations at the company, legality
As a legallyrelated to the continuation of the company and organizationcompliant company
building that prioritizes transparency

Committee Chairman :President of the Company(EAD /FFICE  #32 0ROMOTION 'ROUP

ReportCorporate Management Committee
DialogueAccounting Audit

Executive Officers / Departments / Branches / Group Companies

The Senko Group views regulatorycompliance, environmental responsibility,
and safety-consciousness as the coreelements of managing our business in asocially responsible way in order to createa corporate culture that allows us to gain
the trust of all of our stakeholders. A highlevel of awareness among all of ouremployees will allow us to contribute tosociety through our business activities.

10

ReportSupervise

R e i n f orci n g ou r C SR I n itia tiv e s

The CSR Committee oversees
committees for compliance,
corporate ethics, internal controls,
risk management, health and safety,
and environmental protection.
We are dedicated to upgrading our
CSR activities by clearly defining
the domains of our social
responsibility.

Appointment / Dismissal

Auditing Dept.
Legal Counsels (IGH QUALITY
s ,OW COST
s %FFICIENTs Environmentally consciouss 3AFE

Shareholders

Accounting Auditors

s 0ROPER DISTRIBUTION OF PROFITS
s 4RANSPARENCY IN MANAGEMENT
s 0ROPER DISCLOSURE OF INFORMATIONBusiness partners
and vendors

Appointment / Dismissal

Building a Crisis Management Framework
We are compiling a Crisis Response Manual from the standpoint of prioritizing human life, minimizing property damage(economic losses), quickly resuming business operations, maintaining public confidence, and assisting the local
community in the event of an emergency. We are also formulating and using Risk Management Rules that take asystematic approach to risk and clarify departmental responsibilities.

Protecting Personal Information
Senko receives personal information about customers in the course of receiving shipment and delivery requests, andtherefore it is our duty to ensure that we have a rigorous information protection system in place, starting with
implementing an information security policy.

11

Corporate Social Responsibility
Measures t o Reduce o u r E n v iro n m e n ta l Im p a c t
As an “advanced environmental organization,” the Senko Group launched the Eco Innovation 2012 campaign infiscal 2010 with the aim of reducing its impact on the environment. Numerical targets have been established for
activities for combating global warming.
All of our business activities incorporate aggressive and voluntary
programs to conserve energy and resources and protect theenvironment in other ways. We are determined to play a part inpreserving and consistently improving the environment.
The Senko Group’s goal is to cut the environmental impact
associated with business activities to the absolute minimum. To
achieve this goal, we determine the quantity of resources and energy
used (the input) and the quantity of CO2 and waste materials we
produce (the output). By using this approach, we are monitoring andlowering the burden that our collective business operations place on
the environment.

Our Basic Principles
1

We will obey legal and regulatory requirements, ordinances, and agreements concerning environmental matters, andwe will endeavor to prevent environmental pollution and to protect the environment.

2

We will examine and assess the environmental impact of our business activities, and continuously strive to mitigate thefactors that place a burden on the environment.
We will implement new technologies and equipment and reduce the environmental burden.

3

We will tirelessly exercise our creativity so that we can offer sophisticated logistics systems that help the environment.

4

In order to adhere to these principles, we will establish a program for advancing environmental initiatives, rules toprotect the environment, and environmental objectives.

5

In order to ensure that these principles are understood by all of our employees, along with conducting environmental
training and educational activities, we will disclose these principles externally and provide relevant information.

“Senko Eco Innovation 2012” wins the “Annual Logistics Environment Award”
In May 2011, “Senko Eco Innovation 2012,” the core program in Senko’s environmental
protection initiatives, received the “Twelfth Annual Logistics Environment Award”
sponsored by the Japan Federation of Freight Industries. The Annual Logistics
Environment Award Committee of the federation selects a company, organization or anindividual for the award in recognition of their contribution to the sound development of
the logistics industry by promoting environmental protection and raising environmental
awareness.
Senko drew up the “Senko Eco Innovation 2012” plan based on its medium-term
environmental policy. Launched in 2010, the plan aims at conserving energy and cutting
CO2 emissions. The plan focuses on slashing electric power consumption, which
represents more than 80% of our total energy consumption. It defines 31 concretemeasures to reduce electric power consumption. Senko exceeded its energy conservation
targets by actively implementing these measures. The award recognizes our active
participation and achievements in energy conservation.

S afet y I n i t i at i ves
The Senko Group conducts safety programs based on
the themes of “respect for individuals” and “giving
safety priority above all else.” The goal is to eliminate
serious accidents.
We have programs to ensure that every employee
understands that safety in our business operations is
at the core of how we do business and that everyone
must work on improving safety.
In addition, senior executives and all employees at
the Senko Group work as a unified team to maintainand enhance workplace safety.

12

Fundamental Policy for Safety Activities
1

We will aim for constant improvements in safety management systems and health and safety activities with the goal of
preventing accidents and lowering exposure to risks to safety.

2

We will comply with laws, regulations, rules and agreements as well as other items with which we agree with regard to
health and safety.

3

We will aggressively disclose information about our health and safety activities.

4

To accomplish the goals of this safety policy, we will establish objectives and targets, make sure that everyone at the
Senko Group knows about these objectives and targets, and upgrade employees' knowledge and commitment
concerning safety.

13

Financial Review
Performance
In the fiscal year that ended in March 2012, operating
revenues increased 12.2% to 270,361 million yen. Exports andproduction plummeted following the Great East Japan
Earthquake. However, higher cargo volume due toearthquake recovery demand and disaster-related products
and energy-saving products lifted revenues. The acquisitionof Smile Corp. as a subsidiary in September also contributed.
Completions of large distribution bases in Japan andoverseas as well as the aggressive cultivation of new
customers also contributed to revenues. Nevertheless,uncertainties about the overall market persisted, fueled byslowing growth in overseas economies, a stronger yen that
impacted export industries, soaring crude oil prices andelectric power shortages.

Consolidated sales by segment
Business segment performance for the fiscal ended March2012 was as follows:(Units: millions of yen)

For the fiscal ended
March 31, 2012

While rising fuel expenses were a negative factor, thebenefits of higher sales and cost reductions boosted
consolidated operating income 35.6% to 8,274 million yen.
Income before income taxes increased 81.5% to 7,784 million
yen due to the big decrease in extraordinary loss, which
included a loss on disaster one year earlier. Net income
increased 53.8% to 3,479 million yen mainly due to higher
revenues despite the rise in deferred taxes because of anamendment to the tax law in Japan.

Operating revenues

For the fiscal ended
March 31, 2011

Sales

Component
ratio (%)

Sales

Component
Growthratio (%) Difference rate (%)

Distribution

222,495

82.3

211,508

87.7

10,987

5.2

Trading & Commerce

44,811

16.6

26,687

11.1

18,124

67.9

Others

3,055

1.1

2,851

1.2

204

7.2

Total

270,361100.0

241,046 100.0

29,315

12.2

1) Distribution segment
Operating revenues increased 5.2% to 222,495 million yen
due to higher cargo volume of ordinary materialds
involving earthquake recovery activities and extensive
measures to attract new customers also contributed to thissegment’s performance.

Operating income

Net income2) Trading & Commerce Segment
Operating revenues increased 67.9% to 44,811 million yen
mainly because of the addition of Smile Corp. to the Senko
Group, higher sales at Marufuji Co., Ltd., growth of the
trading business, and higher sales in the petroleum
product sales business.
3) Others
Operating revenues increased 7.2% to 3,055 million yen
primarily because of higher data processing revenues.

139,573 million yen, 22,893 million yen higher than one year
earlier.
Net assets increased 2,669 million yen to 63,274 million yen.
This was mainly the result of increases of 2,094 million yen inretained earnings and others. The equity ratio declined by 3.0
percentage points to 30.3%.

Capital Expenditures and Depreciation
Capital expenditures increased 4,712 million yen (45.7%) to
14,967 million yen in the fiscal year that ended in March
2012. This increase was mainly the result of investments inlarge distribution bases and other facilities in Japan andoverseas to enlarge the business infrastructure in accordancewith the three-year medium-term business plan.

Financial Position
Total assets at the end of the fiscal year were 202,847 million
yen, higher 14.4%, or 25,562 million yen than one year
earlier. There were increases of 9,540 million yen in tradeaccounts and notes receivable, 3,415 million yen in inventory,
9,436 million yen in property and equipment and 2,848
million yen in intangible assets.

In the fiscal year ending in March 2013, we plan to makecapital expenditures of 10,098 million yen as we increase thepace of building distribution centers in Japan and othercountries.

Current liabilities increased 14,160 million yen to 68,084
million yen. There were increases of 9,694 million yen in
trade accounts and notes payable, 4,900 million yen incurrent portion of bonds with subscription rights to shares.
Long-term debt at the end of the year increased 8,091 million
yen. As a result, liabilities at the end of the fiscal year were

Operating income / net income
to operating revenues

Depreciation increased 570 million yen (10.2%) to 6,160
million yen and is expected to be 6,634 million yen in thefiscal year ending in March 2013.

Net income per share

Cash dividends per share(Billions of yen)

(Millions of yen)

(Millions of yen)

(%)

(Yen)

(Yen)

300

10,000

5,000

4

30

12

8,000

4,000

250

Operating income tooperating revenues

25
10

3
200

20
6,000

3,000

4,000

2,000

8

150

2

15
6

100

10
1
2,000

50

0

14

08

09

10

11

12

0

Net income tooperating revenues

1,000

08

09

10

11

12

0

08

09

10

11

12

0

08

09

10

11

4

5

12

0

08

09

10

11

12

0

08

09

10

11

12

15

Report of Independent Certified Public Accountants

Cash flows
Cash and cash equivalents at the end of the fiscal year
decreased 1,040 million yen to 13,354 million yen.
Net cash provided by operating activities was 9,342 million
yen. Income before income taxes was 7,784 million yen,depreciation and amortization was 6,160 million yen andtrade payables rose by 3,969 million yen. Uses of cash
included a 4,484 million yen increase in trade receivables,interest expenses paid of 1,187 million yen and income taxes
paid of 2,369 million yen.
Net cash used in investing activities was 16,467 million yen.
Major uses of cash were 11,949 million yen for purchases of
fixed assets, and 4,600 million yen for purchase of shares of
newly consolidated subsidiaries.
Net cash provided by financing activities was 6,094 million
yen. Proceeds from long-term debt were 12,650 million yen
and proceeds from the issuance of bond were 5,000 million
yen. Uses of cash were 8,203 million yen for repayment oflong-term debt, 1,912 million yen for repayments of financelease obligations and 1,384 million yen for dividends paid.

Total assets

Net assets /net assets ratio

ROE / ROA
ROE

(Billions of yen)(Billions of yen)

(%)

(%)

250

80

40

6

60

30

5

200

4
150
20

40

3

100

ROA
2
10

20
50

0

16

1

08

09

10

11

12

0

08

09

10

11

12

0

0

08

09

10

11

12

17

Consolidated Balance Sheets
SENKO Co., Ltd. and Consolidated Subsidiaries
March 31, 2012 and 2011

Thousands of
U.S. dollars

Millions of yen

ASSETS

2011

2012

2012

Current assets:

Thousands of
U.S. dollars

Millions of yen

LIABILITIES AND NET ASSETS

2012

2011

2012

¥ 9,265¥ 8,380$ 112,726

Current portion of long-term debt (Note 8)

9,571

8,166

116,450

Lease obligations

2,067

1,608

25,149

55

46

669

32,24322,558392,298

Current liabilities:

Cash and cash equivalents¥ 13,354¥14,394$ 162,477

Trade accounts and notes receivable––Non-consolidated subsidiaries

Short-term loans (Note 8)

12

8

146

40,67631,140494,902

(53)

(29)

(645)

Inventories

4,431

1,016

53,912

Deferred tax asset (Note 14)

2,052

2,506

24,967

Accrued expenses

6,895

6,638

83,891

2,281

1,719

27,753

5,707

4,809

69,43768,08453,924

828,373

OthersLess : allowance for doubtful accounts

Prepaid expenses and other current assets
Total current assets

Trade accounts and notes payable––Non-consolidated subsidiaries
Others

3,783

3,799

46,027

Accrued income taxes

64,25552,834

781,786

Other current liabilities (Note 14)
Total current liabilities

Investments in and long-term loans receivable to non-consolidated subsidiaries and an affiliate

2,606

2,647

31,707Long-term debt, less current portion (Note 8)

52,423

44,231

637,827

Investment securities (Notes 5 and 10)

4,052

2,272

49,300

Lease obligations

4,075

4,136

49,580Accrued retirement benefits (Note 9)

9,468

9,724

115,197

Other long-term liabilities

5,523

4,665

67,19820,521

20,521

249,678

Capital surplus

18,782

18,782

228,519

Retained earnings

22,90120,807

278,635

2012 and 3,174,635 shares in 2011

(1,049)(1,047)(12,763)

Total Shareholders’ equity

61,15559,063744,069

Net unrealized holdings gain on securities

157

3

1,910

Gain (loss) on deferred hedges

157

(10)

1,910

Translation adjustments

(45)

(31)

(548)

269

(38)

3,272

Property and equipment, at cost (Notes 7 and 10)

167,840

152,767

2,042,098

Less : accumulated depreciation(71,700)(66,063)(872,369)

Net property and equipment

96,14086,704

1,169,729

Long-term deferred tax assets (Note 14)

4,000

4,970

48,668Other assets

31,79427,858386,835

Contingent liabilities (Note 11)

Net assets (Note 12):
Shareholders’ equity
Common stock:
Authorized––294,999,000 shares
Issued––128,989,476 shares

Less : Treasury stock, at cost––3,183,467 shares in

Accumulated other comprehensive income :Total accumulated other comprehensive income :Stock acquisition rights (Note 13)
Minority interests
Total net assets
Total assets¥ 202,847¥ 177,285$ 2,468,025

See the accompanying notes to the consolidated financial statements.

18

Total liabilities and net assets

149

108

1,813

1,701

1,472

20,696

63,27460,605

769,850¥ 202,847¥ 177,285$ 2,468,025

See the accompanying notes to the consolidated financial statements.

19

Consolidated Statements of Income

Consolidated Statements of Changes in Net Assets

SENKO Co., Ltd. and Consolidated Subsidiaries
Years ended March 31, 2012, 2011 and 2010

Operating revenues
Operating costs and expenses:
Operating costs of revenues
Selling, general and administrative expenses
Operating income
Other income (expenses):
Interest and dividend income
Interest expenses
Others, net

Income before income taxes and minority interests
Income taxes (Note 14):
Current
DeferredIncome before minority interests

Thousands of
U.S. dollars

Millions of yen

2012

2011

2010

2012

¥ 270,361¥ 241,046¥ 227,692$ 3,289,463

245,426
16,661
262,087
8,274

220,569
14,377
234,946
6,100

208,311
13,231
221,5426,150

2,986,081
202,713
3,188,794
100,669

1,094(1,200)
(384)
(490)

1,085
(1,187)(1,710)(1,812)

1,096(1,163)
(662)
(729)

13,310(14,600)(4,672)(5,962)

7,784

4,288

5,421

94,707

SENKO Co., Ltd. and Consolidated Subsidiaries
Years ended March 31, 2012, 2011 and 2010
Thousands

Balance at March 31, 2009

2,708
(561)
2,147
2,141

2,801
(188)
2,613
2,808

32,924
18,55451,47843,229Number ofshares ofcommonstock issued

Commonstock

CapitalsurplusRetainedearnings

Treasurystock(at cost)Net
unrealized Gain (loss)
Stockholdings gain on deferred Translation acquisition Minority
interests
adjustments(loss) on
hedgesrightssecurities

Total
net
assets111,989¥ 18,346¥ 16,608¥ 17,520¥ (779)¥ (26)¥—¥ (11)

¥ 60

¥ 412

¥52,130

Net income

—

—

—

2,946

—

—

—

—

—

—

2,946

Cash dividends

—

—

—

(878)

—

—

—

—

—

—

(878)

Purchases of treasury stock

—

—

—

—

(4)

—

—

—

—

—

(4)

Retirement of treasury stock

—

—

(1)

—

11

—

—

—

—

—

10

—

—

—

17

—

—

—

—

—

—

17

Adjustment of retained earnings
for newly consolidated subsidiaries
Other changes
Balance at March 31, 2010

—

—

—

—

—

76

(23)

7

20

822

902

111,989¥ 18,346¥16,607¥ 19,605¥ (772)¥ 50¥ (23)¥ (4)¥80¥ 1,234¥55,123

—

—

—

2,261

—

—

—

—

—

—

2,261

17,000

2,175

2,175

—

—

—

—

—

—

—

4,350

Cash dividends

—

—

—

(1,073)

—

—

—

—

—

—

(1,073)Purchases of treasury stock

—

—

—

—

(276)

—

—

—

—

—

(276)

Retirement of treasury stock

—

—

(0)

—

1

—

—

—

—

—

1

—

—

0

14

—

—

—

—

—

—

14

—

—

—

—

—

(47)

13

(27)

28

238

205

Net income

2,706
1,525
4,231
3,553

Millions of Yen

Issuance of common stock

Adjustment of retained earnings

Minority interests in loss (gain) of consolidated subsidiaries
Net income(74)¥ 3,479120¥ 2,261138¥ 2,946(900)$ 42,329

for a newly consolidated subsidiary
Other changes

128,989¥ 20,521¥ 18,782¥ 20,807¥ (1,047)¥3¥ (10)¥ (31)¥ 108¥ 1,472¥60,605

Net income

—

—

—

3,479

—

—

—

—

—

—

3,479

Cash dividends

—

—

—

(1,385)

—

—

—

—

—

—

(1,385)Purchases of treasury stock

—

—

—

—

(2)

—

—

—

—

—

(2)

Other changes

—

—

—

—

—

154

167

(14)

41

229

577

128,989¥ 20,521¥ 18,782¥ 22,901¥ (1,049)

¥ 157

¥ 157

¥ (45)¥ 149¥ 1,701¥63,274Retainedearnings

Treasurystock(at cost)

Balance at March 31, 2011

Per share of common stock
Net income
Diluted net income
Cash dividends applicable to the year

Yen

¥ 27.65
25.07
12.00

U.S. dollars¥ 18.44
16.72
10.00

¥ 26.83
24.16
8.00$ 0.340.31
0.15

Balance at March 31, 2012

Consolidated Statements of Comprehensive Income
SENKO Co., Ltd. and Consolidated Subsidiaries
Years ended March 31, 2012 and 2011

Thousands of U.S. dollars
Thousands of
U.S. dollars

Millions of yen

2012

2011

2012

Income before minority interests
Other comprehensive income (Note 3):
Net unrealized holdings gain (loss) on securities
Gain on deferred hedges
Translation adjustments
Share of other comprehensive income of an affiliate accounted for using equity method
Total other comprehensive income¥ 3,553¥ 2,141$ 43,229

181
181
(17)
(1)
344

(41)
19
(30)
(6)
(58)

2,202
2,202
(206)
(12)
4,186

Comprehensive income¥ 3,897¥ 2,083$ 47,415

Total comprehensive income attributable to:
Owners of the parent
Minority interests¥ 3,786¥ 111¥ 2,205¥ (122)$ 46,064$ 1,351

Commonstock

Balance at March 31, 2011

Capitalsurplus$ 249,678 $ 228,519 $ 253,157 $ (12,739)

Stock
Translation acquisition Minority
adjustmentsinterests
rightsTotal
netassets$ 37$ (122)$ (377)$ 1,314$ 17,910$ 737,377

—

—

—

—

—

—

42,329(16,851)

—

—

—

—

—

—

(16,851)

—

(24)

—

—

—

—

—

(24)

—

—

1,873

2,032

(171)

499

2,786

7,019

$ 249,678 $ 228,519 $ 278,635 $ (12,763)$ 1,910$ 1,910$ (548)$ 1,813$ 20,696$ 769,850

Net income——

42,329Cash dividends——

Purchases of treasury stock——

Other changes——

Balance at March 31, 2012

Net unrealized Gain (loss)
holdings gain on deferredon securities
hedgesSee the accompanying notes to the consolidated financial statements.

20

21

Consolidated Statements of Cash Flows

Notes to the Consolidated Financial Statements

SENKO Co., Ltd. and Consolidated Subsidiaries
Year ended March 31, 2012, 2011 and 2010

SENKO Co., Ltd. and Consolidated Subsidiaries

Cash flows from operating activities:
Income before income taxes and minority interests
Adjustments for:
Depreciation and amortization
Impairment loss
Loss on disposals of property and equipment
Loss on sales of property and equipment
Loss on disaster
Loss on adjustment for changes of accounting standard for asset retirement obligations
Decrease in accured retirement benefits
Increase (decrease) in accrued bonuses to employees
Decrease in provision for loss on disaster
Interest and dividends income
Interest expenses
Increase in trade receivables
Decrease(increase) in inventories
Increase in trade payables
Other
Sub totalInterest and dividend income received
Interest expenses paid
Income tax paid
Net cash provided by operating activities
Cash flows from investing activities:
Payments for purchases of fixed assets
Proceeds from sales of fixed assets
Payments for purchases of investment securities
Proceeds from sales of investment securities
Payments of long-term loans receivable to non-consolidated subsidiaries
Payments for purchases of non-consolidated subsidiaries
Proceeds from sales of non-consolidated subsidiaries and an affiliate
Purchase of shares of newly consolidated subsidiaries
Other
Net cash used in investing activities
Cash flows from financing activities:
Increase(decrease) in short-term loans, net
Proceeds from long-term debt
Repayment of long-term debt
Proceeds from issuance of bondPayment for redemption of bond
Repayments of finance lease obligations
Proceeds from issuance of common stock
Purchases of treasury stock
Sales of treasury stock
Dividends paid
Other
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Net increase in cash and cash equivalents of newly consolidated subsidiaries
Cash and cash equivalents at end of year

Thousands of
U.S.dollars

Millions of yen

2012

2011

2010

2012

¥ 7,784¥ 4,288¥ 5,421$ 94,707

6,160
—
190
303
—
—
(470)
193
(793)
(1,094)
1,200(4,484)
(802)
3,969
488
12,644254(1,187)(2,369)
9,342

5,590
451
181
—
977
130
(183)
(531)
—
(1,085)
1,187
(729)
560
775
(401)
11,210275(1,194)(2,882)
7,409

4,969
—
331
—
—
—
(94)
513
—
(1,096)
1,163(2,827)
(682)
2,035
(744)
8,989
278
(1,150)(1,997)
6,120

74,948
—
2,312
3,687
—
—
(5,718)2,348(9,648)(13,310)
14,600(54,557)(9,758)48,291
5,937
153,8393,090(14,442)(28,823)
113,664(11,949)
1,362(1,396)
53
(119)
(22)
22
(4,600)182(16,467)(9,646)661(29)
76(1,565)
(573)
—
—
(314)
(11,390)(2,456)
325
(20)
72
—
(239)
134
(478)
428
(2,234)(145,383)
16,571(16,985)645(1,448)(267)
268(55,968)
2,214(200,353)

152
12,650(8,203)5,000—(1,912)—(2)—(1,384)
(207)
6,094
(9)
(1,040)14,394—¥ 13,354

(450)
9,100
(6,490)——(1,544)
4,350
(276)
1
(1,072)
(214)
3,405
(31)
(607)
14,505496¥ 14,394(1,685)4,400(1,527)7,000(7,000)(1,065)
—
(4)
2
(878)
(407)
(1,164)0
2,722
11,74835¥ 14,505

1,849
153,912(99,805)
60,834—(23,263)—(24)—(16,839)(2,519)74,145(110)(12,654)
175,131—$ 162,477

1. Basis of Presenting Consolidated Financial Statements:
SENKO Co., Ltd. (the “Company”) and its domestic subsidiaries maintain their accounts and records in accordance with the provisions set forthin the Japan Companies Act and the Financial Instruments and Exchange Law of Japan and in conformity with accounting principles generally
accepted in Japan, which are different in several respects as to the accounting and disclosure requirements of International AccountingStandards.
The Company’s foreign subsidiaries maintain their accounts and records in conformity with generally accepted accounting principles andpractices prevailing in their respective countries of domicile.
The accompanying consolidated financial statements are prepared based on the consolidated financial statements of the Company and its
subsidiaries (the “Companies”) which were filed with the Director of Kanto Local Finance Bureau as required by the Financial Instruments andExchange Law of Japan.
In preparing the accompanying consolidated financial statements, certain reclassifications and rearrangements have been made to theconsolidated financial statements issued domestically in order to present them in a form which is more familiar to readers outside Japan.
The translation of Japanese yen amounts into U.S. dollars is included solely for the convenience of the reader, using the exchange rate
prevailing at March 31, 2012, which was ¥ 82.19 to US $ 1.00. These convenience translations should not be construed as representations that theJapanese yen amounts have been, could have been, or could in the future be, converted into U.S. dollars at this or any other rate of exchange.
2. Summary of Significant Accounting Policies:(a) Principles of Consolidation
The consolidated financial statements include the accounts of the Company and its significant subsidiaries. All significant intercompany
balances and transactions are eliminated.
Non-consolidated subsidiaries, whose combined assets, net sales, net income and retained earnings in the aggregate are not significant inrelation to those of the consolidation with the Companies.
The Company has adopted the equity method of accounting for investments in a significant affiliate. The investments in other insignificant
unconsolidated subsidiaries and affiliates are stated at cost.
(b) Cash and Cash Equivalents
Cash and cash equivalents comprise cash in hand, deposits held at call with banks, net of overdrafts and all highly liquid investments withmaturities of three months or less.
(c) Investment Securities
Investment securities are classified and accounted for, depending on management’s intent.
Marketable other securities, which are not classified as either trading securities or held-to-maturity debt securities, are reported at fair value,with unrealized gains and losses, net of applicable taxes, reported in a separate component of net assets.
Non-marketable other securities are stated at cost.
The cost of other securities sold is determined by the moving-average method.
The Companies classified all securities as other securities.
(d) Allowance for Doubtful Accounts
The allowance for doubtful accounts is stated in amounts considered to be appropriate based on the Companies’ past credit loss experience oran evaluation of potential losses in the receivables outstanding.
(e) Inventories
Purchased goods are stated principally at cost determined by the periodic average method (with book values written down on the balance
sheets based on decreased profitability of assets). Finished goods, real estate for sale and work in process are stated principally at cost
determined by the specific method (with book values written down on the balance sheets based on decreased profitability of assets). Raw
materials are stated at cost determined by the last purchase cost method (with book values written down on the balance sheets based on
decreased profitability of assets). Supplies are principally stated at cost determined by the moving-average method (with book values written
down on the balance sheets based on decreased profitability of assets).
(f) Property and Equipment and Depreciation (Except for Leased Assets)
Property and equipment are stated at cost. Depreciation is computed on the straight-line method for the buildings (including fixtures attachedto the buildings), structures and vehicles, and on the declining-balance method for the others, on the estimated useful lives of assets.
The principal estimated useful lives are as follows:
Buildings and structures
3 to 60 years
Machinery and equipment
3 to 17 years(g) Leased Assets
Financial leases other than those that are deemed to transfer the ownership of leased assets to the lessees are accounted for in a similar way topurchases and depreciation for lease assets is computed under the straight-line method with zero residual value over the lease term.
Financial leases other than those that are deemed to transfer the ownership of leased assets to the lessees, which commenced in fiscal years
beginning prior to April 1, 2008, are accounted for in a similar way to operating leases.

See the accompanying notes to the consolidated financial statements.

2223

(h) Accrued Retirement Benefits
The Company and certain domestic consolidated subsidiaries have retirement benefit plans for their employees. Such benefits are provided
through the unfunded lump-sum severance indemnity plan and the funded noncontributory pension plan.
The amount of retirement benefits are determined on the basis of length of service, basic salary and certain other factors at the time oftermination of employment.
Allowance for retirement benefits has been provided for employees’ retirement benefits, based on the amount of projected benefit
obligation reduced by pension plan assets at fair value at the balance sheet date.
Actuarial gains and losses are amortized by the straight-line method over a period of 13 years, which is within the estimated averageremaining years of service of the Companies’ employees. The amortization of such gains and losses is recognized effective the year subsequent
to the year in which they are incurred. Prior service costs are amortized in the fiscal year in which they are incurred.
Certain consolidated subsidiaries also have a severance indemnity plan for directors and corporate auditors, whose accrued severance
indemnities are stated at 100% of the amount which is computed according to internal rules.
(i) Income Taxes
Deferred income taxes are recognized by the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities
are determined based on difference of between financial reporting and the tax basis of the assets and liabilities, and are measured using theenacted tax rate and laws that will be in effect when the differences are expected to reverse.
(j) Goodwill
Goodwill amortized over a period of 5 years by the straight-line method. If the economic useful life can be estimated, the useful life is used as
the amortization period.
(k) Derivatives and hedge accounting
The Company and a consolidated subsidiary state derivative financial instruments at market value and recognize changes in the market value as
gain or loss unless the derivative financial instruments are used for hedging purposes. If derivative financial instruments are used as hedges andmeet certain hedging criteria, the Company and a consolidated subsidiary defer recognition of gain or loss resulting from changes in the market
value of the derivative financial instrument until the related loss or gain on the hedged item is recognized. However, when forward foreignexchange contracts are used as hedges and meet certain hedging criteria, the foreign currency receivables or payables are translated at thecontracted rate. Also, if interest rate swap contracts are used as hedges and meet certain hedging criteria, the net amount to be paid or received
under the interest rate swap contract is added to or deducted from the interest on the asset or liability for which the swap contract was executed.
(l) Per Share Information
Basic net income per share is computed on the basis of the weighted-average number of shares of common stock outstanding for the period.
Diluted net income per share is computed on the basis of the weighted-average number of shares of common stock outstanding during eachyear after giving effect to the dilutive potential of the shares of common stock to be issued upon the conversion of convertible bonds andexercise of stock acquisition rights.
Cash dividends per share are dividends applicable to the respective years including dividends to be paid after the end of the year.
(m) Translation of Foreign Currencies
All monetary assets and liabilities denominated in foreign currencies are translated into Japanese yen at the exchange rate at the balance sheet
date. Revenue and expenses are translated at the rate of exchange prevailing when transactions are made.
Foreign currency financial statements amounts of overseas consolidated subsidiaries are translated into Japanese yen at the exchange rate
for prevailing at the respective balance sheet dates of those subsidiaries for assets and liabilities, and at the historical exchange rate for net
assets. All income and expense amounts are translated at the average rate of exchange during the fiscal year of those subsidiaries.
The resulting translation adjustments are included in net assets as translation adjustments.

3. Comprehensive Income:The amount of recycling and amount of income tax effect associated with other comprehensive income at March 31, 2012, consisted of thefollowing:—
Thousands of
U.S. dollars
Millions of yen
2012
2012
Net unrealized holdings gain on securities:$ 3,431¥ 282
Amount recognized in the period under review(73)(6)
Amount of recycling
276
3,358
Before income tax effect adjustments(1,156)(95)
Amount of income tax effect
2,202
181
Net unrealized holdings gain on securities
Gain on deferred hedges:
3,370
277
Amount recognized in the period under review
146
12
Amount of recycling
3,516
289
Before income tax effect adjustments(1,314)(108)
Amount of income tax effect
181
2,202
Gain on deferred hedges
Translation adjustments:
(207)
(17)
Amount recognized in the period under review
Share of other comprehensive income of an affiliate:(11)(1)
Amount recognized in the period under review$ 4,186¥ 344
Total other comprehensive income

24

4. Financial Instruments:(a) Status of financial instruments(1) Policy on financial instruments
The Company and certain of its subsidiaries raise the funds required for capital investment plans for further growth from bank loans andthe issuance of bond. The Companies manage any temporary surplus funds using highly stable financial assets. The Companies use
derivatives in order to hedge against currency risks associated with merchandise imports as well as interest rate fluctuations risks in loans
payable, and do not engage in speculative transactions.
(2) Details of financial instruments, their risks and management systems
Trade accounts and notes receivable, which are operating receivables, are exposed to the credit risk of the customer and the Companies
operate systems to manage both payment deadlines and balances for each customer and grasp the credit status of each customer.
Investment securities are mainly the shares of companies with which the Companies have a business relationship and the shares related
to capital alliances, and these are exposed to the risk of fluctuations in market prices.
Trade accounts and notes payable, which are operating liabilities, have payment dates of within 1 year.
Trade accounts payable in foreign currencies are exposed to risks of foreign exchange fluctuations. To hedge such fluctuation risks, aconsolidated subsidiary has entered into foreign exchange forward contracts.
Short-term loans are fund procurement related mainly to operating transactions. Long-term debt are fund procurement related mainly
to capital investment.
Loans with variable interest rate are exposed to the risk of fluctuations in payable interest rates, but the Company conduct interest rate
swap transactions in order to hedge the risk of fluctuations in payable interest rates for some long-term debt among variable interest rateloans.
In addition, operating liabilities and loans payable are exposed to liquidity risk, but the Companies implement integrated fundmanagement through the concentration of funds in the Company, which carries out fund settlement, fund procurement, monitoring ofbalances and fund management for the Companies.
Regarding derivatives, the Companies use foreign exchange forward contracts to hedge against foreign exchange rates fluctuation risks,
and interest rate swap transactions aimed at hedging against the risk of future interest rate fluctuations, and also reduce the cost of fundprocurement by converting variable interest rate liabilities into fixed interest rate liabilities.
Primary risks pertaining to derivative transactions include market risk and credit risk. Market risk is the risk that the value of aninvestment position will decrease due to changes in market factors, and a derivative transaction is exposed to foreign exchange and interest
rate fluctuation risks. The Companies’ derivatives effectively offset the risks of assets and liabilities on the balance sheets, and there were
no important transaction risks. Credit risk is the risk that, in the case of default of the other party, the relevant party would become
incapable of benefiting from the effect that would have obtained in the future if the transaction had continued. The Companies’ derivativetransaction partners are limited to financial institutions with high credit ratings and the Companies do not foresee the occurrence of losses
due to debt default on the part of transaction partners.
The Company manages derivatives based on authority-related regulations in the Business Management Division. The execution oftransactions requires the permission of the director responsible for the management of derivatives and the details of transactions arereported to the general manager of the Business Management Division and the director after their execution.
A consolidated subsidiary also manage derivatives based on authority-related regulations, as does the Company.
(3) Supplementary explanation of the estimated market values of financial instruments
The market value of financial instruments includes prices based on market prices and reasonably estimated prices if there are no market prices.
Because estimations of the prices incorporate fluctuating factors, application of different assumptions can in some cases change the prices.
(b) Market value of financial instruments
The values on the consolidated balance sheets, market values and the differences between them are as follows. Financial instruments for which
apprehension of the market value is recognized to be extremely difficult are not included.

2012(1) Cash and cash equivalents(2) Trade accounts and notes receivable(3) Investment securities(4) Long-term loans receivable(including current portion)Less allowance for doubtful accounts (*1)

Book value¥ 13,354
40,688
3,047
4,252

Millions of yen
Market value¥ 13,354
40,6883,047

Difference———

Total assets

(78)
4,174
¥ 61,263

4,512¥ 61,601

338
¥ 338

(1) Trade accounts and notes payable(2) Short-term loans(3) Bond(4) Convertible bond(5) Long-term debt (including current portion)(6) Lease obligations (including current portion)
Total liabilities
Derivatives (*2)

¥ 32,298
9,265
12,0004,900
45,094
6,142¥ 109,699¥ 157¥ 32,298
9,265
11,921
4,849
45,131
5,931¥ 109,395
¥ 157

—
—
(79)
(51)
37
(211)
(¥ 304)
—

25

2011
(1) Cash and cash equivalents(2) Trade accounts and notes receivable(3) Investment securities(4) Long-term loans receivable(including current portion)Less allowance for doubtful accounts (*1)

Book value¥ 14,394
31,148
1,329
4,403

Millions of yen
Market value¥ 14,394
31,1481,329

Difference———

Total assets

(76)
4,327
¥ 51,198

4,580¥ 51,451

253
¥ 253

(1) Trade accounts and notes payable(2) Short-term loans(3) Bond(4) Convertible bond(5) Long-term debt (including current portion)(6) Lease obligations (including current portion)
Total liabilities
Derivatives (*2)

¥ 22,604
8,380
7,000
4,900
40,497
5,744¥ 89,125(¥ 10)¥ 22,604
8,380
7,006
4,795
40,693
5,705¥ 89,183(¥ 10)

—
—
6
(105)
196
(39)
¥ 58
—

(5) Long-term debt
The market values of long-term debt are calculated based on the current value discounting the total value of principal and interest by a rateenvisioned if a new loan of the same value was taken out. Long-term debt based on variable interest rates are subject to special processing
using interest rate swaps, and are calculated based on the current value discounting the total value of principal and interest processed as aunit with the relevant interest rate swaps by a rate estimated rationally and applied if a loan of the same value was taken out.
(6) Lease obligations
The market values of lease obligations are calculated based on the current value discounting the total value of principal and interest by a rateenvisioned if a new loan of the same value was taken out.
Derivatives
See “Note 6”

2012(1) Cash and cash equivalents(2) Trade accounts and notes receivable(3) Investment securities(4) Long-term loans receivable(including current portion)Less allowance for doubtful accounts (*1)
Total assets(1) Trade accounts and notes payable(2) Short-term loans(3) Bond(4) Convertible bond(5) Long-term debt (including current portion)(6) Lease obligations (including current portion)
Total liabilities
Derivatives (*2)

Thousands of U.S. dollars
Book valueMarket value
Difference—$ 162,477$ 162,477
495,048—
495,048—
37,07337,07351,734(949)
50,785$ 745,383

54,897$ 749,495

4,112$ 4,112$ 392,967
112,726
146,00359,618548,656
74,729$ 1,334,699$ 1,910$ 392,967
112,726
145,043
58,997549,106
72,162$ 1,331,001$ 1,910

—
—
(960)
(621)
450
(2,567)($ 3,698)—*1. Allowance for doubtful accounts recognized in long-term loans receivable is offset.
*2. “Derivatives” shows net receivables and liabilities generated by derivative transactions, with net liabilities shown in parentheses.

Calculation of the market value of financial instruments and items relating to investment securities and derivatives
Assets(1) Cash and cash equivalents, (2) Trade accounts and notes receivable
Because these are settled in a short period of time and market values are roughly equivalent to book values, market value are calculated basedon book values.
(3) Investment securities
The market values of shares are based on stock exchange prices and the market values of bond are based on stock exchange prices and theprices offered by correspondent financial institutions. With regard to details of the investment securities by purpose, please see “Note 5”(4) Long-term loans receivable
The market values of long-term loans receivable are calculated based on the current value discounting future cash flow by a rate adding credit
risk to appropriate indices such as the yield on government bond.
Liabilities(1) Trade accounts and notes payable, (2) Short-term loans
Because these are settled in a short period of time and market values are roughly equivalent to book values, market values are calculated
based on the book values.
(3) Bond, (4) Convertible bond
The market values of bond issued by the Company are calculated based on the current value discounting the total value of principal andinterest by a rate adding the remaining period of the bond in question and credit risk.

26

Financial instruments for which it is extremely difficulty to determine market value
Millions of yen
2012
2011
¥ 1,703¥ 1,656
4
6

Unlisted shares
Investments in limited partnerships for investment

Thousands of
U.S. dollars
2012$ 20,720
49

The financial instruments listed above are not included in “(3) Investment securities,” as there is no market price and determination of
their market value is extremely difficult.
(c) Planned redemption amounts after the balance sheets date for monetary assets and investment securities with maturity dates

2012
Cash and cash equivalents
Trade accounts and notes receivable
Investment securities
Other securities with maturity period(1) Government bond, local government bond(2) Bond(3) Other
Long-term loans receivable
Total

2011
Cash and cash equivalents
Trade accounts and notes receivable
Investment securities
Other securities with maturity period(1) Government bond, local government bond(2) Bond(3) Other
Long-term loans receivable
Total

2012
Cash and cash equivalents
Trade accounts and notes receivable
Investment securities
Other securities with maturity period(1) Government bond, local government bond(2) Bond(3) Other
Long-term loans receivable
Total

Within 1 year
¥ 13,354
40,688————276¥ 54,318

Within 1 year
¥ 14,394
31,148—10——242¥ 45,794

Within 1 year
$ 162,477
495,048
—
—
—
—
3,358
$ 660,883

Millions of yen
Over 1 year
Over 5 years
Within 5 years Within 10 years
—
—
—
—
—
—
10
—
—
1,507
¥ 1,517

—
—
—
1,548
¥ 1,548

Millions of yen
Over 1 year
Over 5 years
Within 5 years
Within 10 years
—
—
—
—
—
—
—
—
—
1,510
¥ 1,510

—
—
—
1,550
¥ 1,550

Thousands of U.S. dollars
Over 1 year
Over 5 years
Within 5 years Within 10 years
—
—
—
—
—
—
121
—
—
18,336$ 18,457———
18,834$ 18,834

Over 10 years
—
—
—
—
—
—
921
¥ 921

Over 10 years
—
—
—
—
—
—
1,101
¥ 1,101

Over 10 years
—
—
—
—
—
—
11,206$ 11,20627

5. Investment Securities:
The carrying amounts of investment securities at March 31, 2012 and 2011, consisted of the following:—
Millions of yen
2012
2011
¥ 3,047¥ 1,329
1,005
943¥ 4,052¥ 2,272

Marketable securities
Non-marketable securities

Thousands of
U.S. dollars
2012$ 37,073
12,227$ 49,300

6. Derivatives:
1. Derivative transactions to which hedge accounting is not applied
Not applicable.
2. Derivative transactions to which hedge accounting is applied(1) Currency transactions
Millions of yen
2012
Hedge accounting
methodThe following is a summary of marketable securities included in investment securities, at March 31, 2012 and 2011.
Designated transactions forforward exchange contracts

Millions of yen

2012
Equity security
Bond and Others

Acquisition
cost

Gross
unrealized
gains¥ 2,456258¥ 2,714

¥ 443
0
¥ 443

Gross
unrealized
losses¥ (102)(8)¥ (110)Book value(Market value)¥ 2,797250¥ 3,047

2011
Equity security
Bond and Others

Grossunrealized
gains¥ 1,135148¥ 1,283

¥ 184
0
¥ 184

Gross
unrealized
losses¥ (131)(7)¥ (138)Book value(Market value)

Forward exchange contracts
Buy
U.S. dollars
Euros
Danish kroner
Pounds sterling
Total

Item
hedgedContract
amounts

Trade accounts payable
Trade accounts payable
Trade accounts payable
Trade accounts payable¥ 3,736279
381¥ 4,054

Over 1 year out ofcontract amounts

Market value

—
—
—
—
—

¥ 125
6
2
0
¥ 133

Thousands of U.S. dollars
2012
Hedge accounting
methodMillions of yen
Acquisition
cost

Type ofcontracts

Designated transactions forforward exchange contracts¥ 1,188141¥ 1,329Type ofcontracts
Forward exchange contracts
Buy
U.S. dollars
Euros
Danish kroner
Pounds sterling
Total

Item
hedgedContract
amounts

Trade accounts payable
Trade accounts payable
Trade accounts payable
Trade accounts payable$ 45,456
3,395
462
12
$ 49,325

Over 1 year out ofcontract amounts

Market value

—
—
—
—
—

$ 1,52173
24
0$ 1,618

Market value is measured based on prices and other criteria presented by our correspondent financial institutions.

(2) Interest rate swaps

Thousands of U.S. dollars

2012
Equity security
Bond and Others

Acquisition
cost

Gross
unrealized
gains

Gross
unrealized
lossesBook value(Market value)$ 29,882
3,139$ 33,021$ 5,3900$ 5,390$ (1,241)(97)$ (1,338)$ 34,031
3,042$ 37,073

Millions of yen
2012
Hedge accounting
methodExceptional accounting
method for interest-rate
swap transactions

Type ofcontracts

ItemhedgedContract
amounts

Interest rate swap contracts
Floating rate receivable/
Fixed rate payable

Long-term debt

¥ 32,031

Proceeds from sales
Gross realized gain
Gross realized loss

Millions of yen
2012
2011
¥ 42
¥ 59
18
0
—
63

Market value¥ 29,723— (*1)

Millions of yen
2011

The proceeds from sales of, and gross realized gain and loss on, other securities for the years at March 31, 2012 and 2011 are summarized as follows.
Thousands of
U.S. dollars
2012
$ 511
219
—

Over 1 year out ofcontract amounts

Hedge accounting
methodType ofcontracts

ItemhedgedContract
amounts

Exceptional accounting
method for interest-rate
swap transactions

Interest rate swap contract
Floating rate receivable/
Fixed rate payable

Long-term debt

¥ 28,229¥ 23,251— (*1)

Nomal method

Interest rate swap contract
Floating rate receivable/
Fixed rate payable

Long-term debt

2,013

—

(15) (*2)¥ 30,242¥ 23,251(¥ 15)

Over 1 year out ofcontract amounts

Market value

Thousands of U.S. dollars
2012
Hedge accounting
methodExceptional accounting
method for interest-rate
swap transactions

Type ofcontracts

ItemhedgedContract
amounts

Interest rate swap contracts
Floating rate receivable/
Fixed rate payable

Long-term debt

$ 389,719

Over 1 year out ofcontract amounts$ 361,638

Market value— (*1)*1. Items treated under exceptional accounting method for interest-rate swap transactions are recorded together with long-term debt included in items hedged.
Therefore, the market value of such items is included in the market value of the relevant long-term debt.
*2. Market value is measured based on prices and other criteria presented by our correspondent financial institutions.

2829

7. Property and Equipment:
At March 31, 2012 and 2011, property and equipment at cost consisted of the following:—

Land
Buildings and structures
Machinery and equipment, vehicle and vessels
Tools, furniture and fixtures
Construction in Progress
Lease assets

Millions of yen
2012
2011
¥ 39,838¥ 39,233
95,26783,805
20,86918,326
4,778
4,476
230
1,340
6,858
5,587
¥ 167,840¥ 152,767

Thousands of
U.S. dollars
2012$ 484,706
1,159,107
253,912
58,134
2,798
83,441$ 2,042,098

8. Short-term Loans and Long-term Debt:
At March 31, 2012 and 2011, short-term loans consisted of the following:—
Millions of yen
2012
2011
0.68% to 5.49% unsecured loans from banks¥ 9,265¥ 8,380

Thousands of
U.S. dollars
2012$ 112,726

At March 31, 2012 and 2011, long-term debt consisted of the following:—
Millions of yen
2012
2011
1.31% bond due 2014
0.80% bond due 2016
Convertible bond due 2012
0.66% to 2.50% loans from banks and insurance companies:
UnsecuredLess current portion

Thousands of
U.S. dollars
2012

9. Accrued Retirement Benefits:
The following table sets forth the changes in benefits obligation, plan assets and funded status of the Company and its certain subsidiaries at
March 31, 2012 and 2011.
Thousands ofMillions of yen
U.S.dollars
2011¥ (23,980)
12,004(11,976)
4,666(7,310)2,414¥ (9,724)

Service cost
Interest cost
Expected return on plan assets
Amortization:
Recognized actuarial loss
OthersNet periodic benefits cost2012
¥ 1,068
563
(347)

2011
¥ 1,206
566
(349)

2010
¥ 1,200
582
(302)

2012
$ 12,994
6,850(4,222)581
126¥ 1,991525—¥ 1,948632—¥ 2,112

7,069
1,533
$ 24,224

Assumption used in the accounting for the defined benefits plans for the year ended March 31, 2012, 2011 and 2010 is as follows:¥ 7,000—
4,900$ 85,168
60,83559,618

Method of attributing benefits to periods of service

45,094
61,994(9,571)¥ 52,423

40,49752,397(8,166)¥ 44,231

548,656754,277(116,450)$ 637,827

Discount rate
Expected rate of return on fund assets
Amortization period of prior service costs
Amortization period of actuarial gain

Straight-line
basis

2011
Straight-line
basis

2010
Straight-line
basis

2.50%
3.00%
1year
13years

2.50%
3.00%
1year
13years

2.50%
3.00%
1year
13years2012

10. Pledged Assets:
The following assets were pledged as collateral as at March 31, 2012 and 2011—
Millions of yen

The annual maturities of long-term debt at March 31, 2012 are as follows:—
Year ending
March 31

Millions ofyen

Thousands of
U.S. dollars

2013
2014
2015
2016
2017
There after¥ 9,571
7,825
13,722
5,760
13,593
11,523$ 116,450
95,206
166,955
70,081
165,385
140,200

At March 31, 2012, the Company has committed line and overdraft contracts with seventeen banks aggregating ¥ 28,100 million ($ 341,890 thousand).
Of the total credit limit, ¥ 7,700 million ($ 93,685 thousand) was used as the above short-term and long-term borrowing, and the rest ¥ 20,400 million ($ 248,205
thousand) was unused.

Land
Buildings
VehiclesInvestment securities2012¥ 2,225424
2
10¥ 2,6612011¥ 2,392776
1
10¥ 3,179

Obligations which were secured on the above assets were as follows:—
Millions of yen
Long-term debt, including current portion

2012
¥ 100

2011
¥ 100

11. Contingent Liabilities:
At March 31, 2012 and 2011, contingent liabilities were as follows:
Millions of yen
Guarantees of some obligations
Buyback obligations associated with securitization of receivables
Recourse obligation associated with securitization of guarantee deposits
Trade notes endorsed

30

2012
$ (278,769)
144,215(134,554)
52,257(82,297)
32,900$ (115,197)

Retirement benefits costs of the Company and its certain subsidiaries included the following components for the year ended March 31, 2012, 2011
and 2010.
Thousands ofMillions of yen
U.S. dollars¥ 7,000
5,000
4,900

On July 20, 2007, the Company issued ¥ 5,000 million ($ 60,835 thousand) of zero coupon convertible bond with stock acquisition rights due in 2012. The stockacquisition rights are exercisable during the period from July 6, 2012 at a conversion price of ¥ 395 ($ 4.81) per share.

2012¥ (22,912)
11,853(11,059)
4,295(6,764)2,704¥ (9,468)

Benefits obligation at the end of year
Fair value of plan assets at the end of the year
Unfunded retirement benefits obligation
Unrecognized actuarial loss
Net retirement benefits obligation
Prepaid pension costAccrued retirement benefits

2012
¥ 176
385
140
47
¥ 748

2011
¥ 180
853
150
—
¥ 1,183

Thousands of
U.S. dollars
2012$ 27,071
5,159
24
122
$ 32,376
Thousands of
U.S. dollars
2012$1,217

Thousands of
U.S. dollars
2012$ 2,141
4,684
1,703
572
$ 9,10031

12. Net Assets:
The Japan Companies Act provides that an amount equal to at least 10% of the amounts to be disbursed as distributions of earnings be
appropriated to the legal reserve until such reserve and additional paid-in capital equals 25% of the common stock account. The Japan Companies
Act also stipulates that, on condition that the sum of the additional paid-in capital and the legal reserve exceeds 25% of the common stock account,
the amount of any such excess is available for appropriation by resolution of the shareholders.
The retained earnings account in the accompanying consolidated financial statements at March 31, 2012, included the Company’s legal reserveof ¥ 1,506 million ($ 18,323 thousand).

13. Stock Option Plans:
The stock option plans of the Company approved by the shareholders in accordance with the Japan Companies Act at March 31, 2012 were as
follows:(1) Description of stock options
stock option

Grantees

Number of shares withwarrants granted

Date of
grant

Option price
Shares with
per warrant warrants granted

Exercise period

2007 Stock options (1st)

10 directors
3 auditors

61,000 shares

July 20, 2007

¥1

Common stock

July 21, 2007 - June 30, 2027

2007 Stock options (2nd)

9 operating officers

18,000 shares

July 20, 2007

¥1

Common stock

July 21, 2007 - June 30, 2027

2008 Stock options (4th)

10 directors
3 auditors

71,000 shares

July 1, 2008

¥1

Common stock

July 2, 2008 - June 30, 2028

2008 Stock options (5th)

10 operating officers

22,000 shares

July 1, 2008

¥1

Common stock

July 2, 2008 - June 30, 2028

2009 Stock options (6th)

11 directors
4 auditors

74,000 shares

July 1, 2009¥1

Common stock

July 2, 2009 - June 30, 2029

2009 Stock options (7th)

12 operating officers

27,000 shares

July 1, 2009¥1

Common stock

July 2, 2009 - June 30, 2029

90,000 shares

July 1, 2010

¥1

Common stock

July 2, 2010 - June 30, 2030

42,000 shares

July 1, 2010

¥1

Common stock

July 2, 2010 - June 30, 2040

102,000 shares

July 1, 2011

¥1

Common stock

July 2, 2011 - June 30, 2041

2010 Stock options (8th)2010 Stock options (9th)2011 Stock options (10th)
2011 Stock options (11th)

11 directors
4 auditors
13 operating officers
13 assistant directors
12 directors
4 auditors
15 operating officers
20 assistant directors

96,000 shares

July 1, 2011

¥1

Common stock

July 2, 2011 - June 30, 2041

(2) Changes in the number of stock options
The following describes changes in the number of stock options that existed during the year ended March 31, 2012. The number of stock
options is translated into the number of shares.
2007 Stock 2007 Stock 2008 Stock 2008 Stock 2009 Stock 2009 Stock 2010 Stock 2010 Stock 2011 Stock 2011 Stock
options(1st) options(2nd) options(4th) options(5th) options(6th) options(7th) options(8th) options(9th) options(10th) options(11th)
Share subscription rights
which are not yet vested(shares):
At March 31, 2011

55,00012,00063,00017,00074,00027,00090,00042,000

—

—

—

—

—

—

—

—

—

—

102,000

96,000Forfeited

—

—

—

—

—

—

—

—

—

—

At March 31, 2012

—

—

—

—

—

—

—

—

—

—

55,00012,00063,00017,00074,00027,00090,00042,000102,000

96,000Thousands of
U.S. dollars

Millions of yen
Deferred tax assets:
Accrued retirement benefits
Accrued bonuses to employees
Loss carry forward
Impairment losses
Loss on revaluation of landSocial insurance premium
Accrued enterprise tax
Asset retirement obligations
Loss on revaluation of golf club membership
Provision for loss on disaster
Other
Gross deferred tax assets
Less: valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Reserve for reduction in costs of fixed assets
Asset retirement obligations
Net unrealized holdings gain on other securities
Other
Gross deferred tax liabilities
Net deferred tax assets

2012

2011

2012

¥ 3,977
1,504
962
339
307
204
187
113
98
17
808
8,516
(1,117)
7,399¥ 4,721
1,371
1,218
820
351
177
134
119
109
340
779
10,139
(1,467)
8,672$ 48,388
18,29911,705
4,125
3,735
2,482
2,275
1,375
1,192
207
9,831
103,614(13,591)
90,023

(856)
(49)
(113)
(562)
(1,580)¥ 5,819

(979)
(58)
(14)
(311)
(1,362)¥ 7,310(10,415)(596)(1,375)(6,838)(19,224)$ 70,799(2) Reconciliation of the statutory effective income tax rate and the income tax rate as a percentage of income before income taxes and minority
interests at March 31, 2012 and 2011 were as follows:
Statutory tax rate
Adjustment:
Non-deductible expenses
Inhabitants’ per capita taxes
Non-taxable dividend income
Adjustments of deferred tax assets due to the change in statutory effective tax rate
Other
Income tax rate as a percentage of income before income taxes and minority interests

2012
40.6%

2011
40.6%

1.0
2.8
(0.2)
8.9
1.2
54.3%

1.7
5.2
(0.5)
3.0
50.0%

The Act for Partial Revision of the Income Tax Act, etc. for the Purpose of Creating a Taxation System Responding to Changes in Economic
and Social Structures (Act No. 114 of 2011) and the Act on Special Measures for Securing Financial Resources Necessary to Implement
Measures for Reconstruction from the Great East Japan Earthquake (Act No. 117 of 2011) were issued on December 2, 2011. In response,
corporation tax rates will be reduced and the Special Reconstruction Corporation Tax, a surtax for reconstruction funding after the Great
East Japan Earthquake, will be imposed with effect from the year beginning April 1, 2012. In accordance with the change, statutory effective
tax rates to calculate the amounts of deferred tax assets and liabilities have been applied as follows depending on the period in which thetemporary difference is expected to be reversed.
March 31, 2012 and before: 40.6%
April 1, 2012 through March 31, 2015: 38.0%
April 1, 2015 onward: 35.6%

Share subscription rights
which have already been
vested (shares):32(1) Significant components of deferred tax assets and liabilities at March 31, 2012 and 2011 were as follows:(3) Adjustments of deferred tax assets and liabilities due to the change in statutory effective tax rate

Granted
Vested

14. Income Taxes:
The Company and its subsidiaries are subject to several taxes based on income, which in the aggregate resulted in a normal effective statutory tax
rates of approximately 40.6% for the years ended March 31, 2012 and 2011.

At March 31, 2011

—

—

—

—

—

—

—

—

—

—

Vested

—

—

—

—

—

—

—

—

—

—

Exercised

—

—

—

—

—

—

—

—

—

—

Forfeited

—

—

—

—

—

—

—

—

—

—

At March 31, 2012

—

—

—

—

—

—

—

—

—

—

Due to the change, the net amount of deferred tax assets (after deducting the amount of deferred tax liabilities) decreased by ¥ 662 million($ 8,055 thousand). Deferred income taxes increased by ¥ 682 million ($ 8,298 thousand), whereas net unrealized holdings gain on securities
and gain on deferred hedges increased by ¥ 16 million ($ 195 thousand) and ¥ 4 million ($ 49 thousand), respectively.

33

(5) Amount of assets and liabilities acquired on the day of the business combination, and breakdown

15. Business Combination Related:(a) Stock acquisition of Smile Corp.

Millions of yen(1) Outline of the business combinationa. Name of the acquired company and its business
Name of the acquired company
Smile Corp.
Businesses
Production and sale of packing materials, and wholesale of food, alcoholic beverages, daily living general merchandise and othersb. Main reasons for the business combination
The Company, as a logistics and information organization, has focused on the improvement of efficiency and optimization across theentire supply chain with the aim of responding to the increasingly diverse and exacting needs of customers. To this end, our efforts aretargeted at expanding the integrated commercial and physical distribution businesses, by providing distribution function as well as
advancing into trading and commerce. Furthermore, the Company’s principal businesses include mass merchandising and retaillogistics for major supermarkets, home improvement centers, drugstores, department stores, specialized retail chain stores, and others,
and our expertise is acknowledged and highly respected by our customers.
Smile Corp. is a distributor and trading company with expertise ranging from product planning to procurement, distribution andsales in the respective business fields of packaging materials, alcoholic beverages, and food and consumer goods, and is moving to
expand its marketing power and establish effective distribution and logistics services, including procurement from overseas.
The Company decided to enter into a capital alliance with Smile Corp., after considering that it would be able to combine its own
distribution expertise in the mass merchandising and retail business with Smile Corp.’s sales capabilities in the retail, restaurants,
mail-order and precision instruments industries. Collaboration in expanding business and developing new customers will be achievedby establishing an integrated business model based on consistent commercial and physical distributions including overseas markets
ranging from product planning and procurement to delivery to end-users.
c. Date of business combination
September 26, 2011
d. Legal form of the business combination
Stock acquisition$ 109,077
7,507$ 116,584$ 81,774
5,086$ 86,860(6) Estimated amount and the calculation method of the impact on the consolidated statements of income for the year ended March 31, 2012,
assuming that the business combination has been completed on the first day of the fiscal year under review.
Thousands of
U.S. dollars
Millions of yen
Operating revenues
Operating income
Income before income taxes
Net income¥ 14,158
459
441
¥ 254

$ 172,259
5,585
5,366
$ 3,090(Calculation method for estimated amount of impact)
The estimated impact amount of the business combination is the difference between operating income and profit and loss informationas calculated assuming that the business combination had been completed on the first day of the fiscal year under review, and theoperating income and the profit and loss information as stated in the consolidated statements of income of the Company for the year
ended March 31, 2012.
The relevant estimated amount is unaudited.

(1) Outline of the business combination

f. Percentage share of voting rights acquired by the Company
92.60%
g. Main reason for the decision to acquire the company
As the payment of the consideration was designated in cash, it was decided that the Company would be the acquirer, paying therelevant consideration in cash.
(2) Period of the acquired company’s financial results included in the consolidated statements of income
From October 1, 2011 to March 31, 2012
(3) Acquisition cost of the acquired company and breakdown

Cash
Advisory fees, other

Millions of yen

Thousands of
U.S. dollars¥ 5,000103¥ 5,103$ 60,835
1,253$ 62,088(4) Goodwill, reason for recognizing goodwill, amortization method and amortization perioda. Amount of goodwill¥ 2,839 million ($ 34,542 thousand)b. Reason for recognizing goodwill
The expected excess earning power of Smile Corp. and its group companies has been recognized mainly in production and sales fromthe packaging materials and food, alcoholic beverages and consumer goods wholesale businesses.
c. Method and period of amortization of goodwill
Straight-line method over 20 years¥ 8,965617¥ 9,582¥ 6,721418¥ 7,139(b) Stock acquisition of Chugoku Piano Transport Co., Ltd.

e. Name of the controlling entity after the business combination
The name remains unchanged.

Consideration for the acquisition
Expenses directly required for acquisition
Acquisition cost

Current assets
Non-current assets
Total assets
Current liabilities
Long-term liabilities
Total liabilities

Thousands of
U.S. dollars

a. Name of the acquired company and its business
Name of acquired company:
Chugoku Piano Transport Co., Ltd.
Businesses:
Transport of musical instruments (pianos), precision instruments, heavy goods, medical instruments; warehousing, musicalinstrument repair
b. Main reasons for the business combination
Chugoku Piano Transport Co., Ltd. (CPT), founded in 1976, is based in Hiroshima City. Its main business is transport of musicalinstruments (primarily pianos), precision instruments, heavy goods and medical instruments, across the Chugoku and Shikoku
regions.
Following its establishment, the company specialized in the transport of pianos. Subsequently, drawing on the skills and bases
developed in this capacity, it has expanded its business significantly to include transport and safekeeping of precision instruments andheavy goods such as strong boxes and large-scale equipment, medical instruments and piano and furniture repair.
The Company decided to add CPT to its Group as a subsidiary with the aim of further developing physical distribution systems ofprecision instruments in the Chugoku and Shikoku regions and expanding its business into the precision instruments and music andmusical instruments industries in the form of new distribution system services, by fusing CPT’s special skills and expertise related tothe transport of precision instruments, heavy goods and pianos and the Company’s distribution functions and networks.
c. Date of business combination
January 31, 2012
d. Legal form of the business combination
Stock acquisitione. Name of the controlling entity after the business combination
The name remains unchanged.
f. Percentage share of voting rights acquired by the Company
100%
g. Main reason for the decision to acquire the company
As the payment of the consideration was designated in cash, it was decided that the Company would be the acquirer, paying therelevant consideration in cash.
(2) Period of the acquired company’s financial results included in the consolidated financial statements of income
The acquired company’s financial results are not included in the Company’s consolidated financial statements, as its deemed
acquisition date was March 31, 2012.

34

35

(3) Acquisition cost of the acquired company and breakdown
Millions of yen
Consideration for the acquisition
Acquisition cost

Cash

¥ 660
¥ 660

Thousands of
U.S. dollars$ 8,030$ 8,030

17. Segment Information:
1. Summary of reportable segment
The reportable segments of the Companies are components for which separate financial information is available and whose operating results
are regularly reviewed by the board of directors to make decisions about resource allocation and to assess performance.
The Companies divide business operations into three segments: Distribution, Trading & Commerce, and Others.
Distribution mainly includes truck transport, railway forwarding, marine transport, global logistics service, integrated retail logistics(distribution centers) etc.
Trading & Commerce mainly includes the sale of petroleum products and the trading business.
Others mainly includes data processing outsousing services, automobile maintenance and insurance agency services.

(4) Goodwill, reason for recognizing goodwill, amortization method and amortization perioda. Amount of goodwill¥ 46 million ($ 560 thousand)b. Reason for recognizing goodwill
The expected excess earning power of the company has been recognized mainly in its transport business of musical instruments(pianos), precision instruments, heavy goods and medical instruments.

2. Calculation of sales, profit (loss), assets and liabilities, etc. of each reportable segment
The accounting policies of the segments are substantially the same as those described in the “Summary of Significant Accounting Policies .”Profit (loss) of reportable segments is based on operating income or loss.

c. Method and period of amortization of goodwill
Straight-line method over 5 years

3. Sales, profit (loss), assets, etc. of each reportable segment
Millions of yen
2012(5) Amounts of assets and liabilities acquired on the day of the business combination, and breakdown
Millions of yen
Current assets
Noncurrent assets
Total assets
Current liabilities
Long-term liabilities
Total liabilities

¥ 210
600
¥ 810
¥ 158
38
¥ 196

Thousands of
U.S. dollars$ 2,555
7,300$ 9,855$ 1,923462$ 2,385(6) Estimated amount and the calculation method of the impact on the consolidated statements of income for the year ended March 31, 2012,
assuming that the business combination has been completed on the first day of the fiscal year under review.
Thousands of
U.S. dollars
Millions of yen
Operating revenues
Operating income
Income before income taxes
Net income

¥ 998
34
37
¥ 17

$ 12,143
414
450
$ 207

(Calculation method for the estimated amount of the impact)
The estimated impact amount of the business combination is the difference between operating income and profit and loss informationas calculated assuming that the business combination had been completed on the first day of the fiscal year under review, and theoperating income and the profit and loss information as stated in the consolidated statements of income of the Company for the year
ended March 31, 2012.
The relevant estimated amount is unaudited.
16. Asset Retirement Obligations:
Asset retirement obligations recorded in the consolidated balance sheetsa. Outline of the relevant asset retirement obligations
Of property lease contracts for the Company’s distribution centers, asset retirement obligations are recognized where restoration isrequired in the fixed-term leasehold contracts, and in the property lease contracts of some consolidated subsidiaries.
b. Calculation method for the relevant asset retirement obligations
In calculating the amount of asset retirement obligations recorded under liabilities, an estimated period of use of 10 to 20 years and a
discount rate of 0.7% to 2.5% were assumed.
c. Increase in the total amount of asset retirement obligations
Millions of yen
2012
2011
Balance at beginning of the term
Increase due to acquisition of a consolidated subsidiary
Reconciliation associated with the passage of time
Balance at the end of the term

¥ 293
15
8
¥ 316

¥ 285
—
8
¥ 293

Operating revenues:
Customers
Intersegment
Total operating revenues
Segment income (loss)
Segment assets
Other items
Depreciation
Increase in tangible andintangible fixed assets

Thousands of
U.S. dollars
2012$ 3,565183
97$ 3,845

Distribution

Trading &Commerce

Others

Total

Adjustments andeliminations

Consolidated¥ 222,495
704
223,199
6,604
171,328¥ 44,811
10,53655,347
1,276
15,299¥ 3,055
3,450
6,505
691
10,084¥ 270,361
14,690285,051
8,571
196,711¥—(14,690)(14,690)
(297)
6,136

¥ 270,361—
270,3618,274
202,847

5,253

124

172

5,549

611

6,160

16,799138

116

17,053669

17,722Millions of yen
2011

Operating revenues:
Customers
Intersegment
Total operating revenues
Segment income (loss)
Segment assets
Other items
Depreciation
Increase in tangible andintangible fixed assets

Distribution

Trading &Commerce

Others

Total

Adjustments andeliminations

Consolidated¥ 211,508
708
212,216
5,097
156,634¥ 26,687
8,633
35,320505
8,059¥ 2,851
3,886
6,737
641
8,339

¥ 241,046
13,227254,273
6,243
173,032¥—(13,227)(13,227)
(143)
4,253

¥ 241,046—
241,046
6,100
177,285

4,885

65

164

5,114

476

5,590

10,296115

159

10,5701,830

12,400Thousands of U.S. dollars
2012

Operating revenues:
Customers
Intersegment
Total operating revenues
Segment income (loss)
Segment assets
Other items
Depreciation
Increase in tangible andintangible fixed assets

Distribution

Trading &Commerce

Others

Total

Adjustments andeliminations

Consolidated$ 2,707,081
8,566
2,715,647
80,3502,084,536$ 545,212
128,191
673,403
15,525
186,142$ 37,170
41,976
79,146
8,407
122,691$ 3,289,463
178,733
3,468,196
104,282
2,393,369$—(178,733)(178,733)(3,613)74,656$ 3,289,463—
3,289,463
100,669
2,468,025

63,913

1,509

2,093

67,515

7,433

74,948204,392

1,679

1,411

207,4828,140

215,622

The balance at the beginning of the year ended March 31, 2011 is a result of the adoption of the Accounting Standards for Asset
Retirement Obligations (ASBJ Statement No. 18 issued on March 31, 2008) and the Guidance on Accounting Standards for Asset
Retirement Obligations (ASBJ Guidance No. 21 issued on March 31, 2008).

36

37

Stock Information (As of March 31, 2012)(1) Products and Services Information
Information for specific products and services is not shown because the same information is in the segment information.
(2) Geographic Segment Informationa. SalesSales information by geographic segment is not shown because sales in Japan accounted for over 90% of operating revenue on the
consolidated statements of income.
b. Property, plant and equipment
Property, plant and equipment information by geographic segment is not shown because property, plant and equipment in Japan accounted
for over 90% of property, plant and equipment on the consolidated balance sheets.
(3) Information by Major Clients
Information by major clients is not shown because sales to major clients accounted for less than 10% of operating revenue on the
consolidated statements of income.

Independent Auditors(Information on amortization of goodwill and amortization balance by business segment)
Millions of yen
2012

Amortization of goodwill
Balance at the end of period

¥ 85
864

Trading &Commerce
¥ 120
2,866

Adjustments andeliminations——

Others——Consolidated
¥ 205
3,730

Thousands of U.S. dollars
2012
Distribution
Amortization of goodwill
Balance at the end of period$ 1,034
10,512

Trading &Commerce$ 1,460
34,870

Others——Adjustments andeliminations——

Consolidated$ 2,494
45,382(Information on negative goodwill by business segment)
No significant items to be reported.

38

Number of Shares

Percentage Held

Japan Trustee Services Bank, Ltd. (Trust Account)

15,692,000

12.17 %

Asahi Kasei Corporation

11,676,726

9.05 %

Senko Group Employee's Stockholding

7,740,743

6.00 %

Sekisui Chemical Co., Ltd.

6,785,900

5.26 %The Master Trust Bank of Japan, Ltd.

5,142,000

3.99 %

Mitsubishi UFJ Trust and Banking Corporation

4,252,000

3.30 %

Isuzu Motors Limited

4,139,689

3.21 %

Tokio Marine & Nichido Fire Insurance Co., Ltd.

3,439,170

2.67 %

Aioi Nissay Dowa Insurance Co., Ltd.

3,169,655

2.46 %

Trust & Custody Services Bank, Ltd.

2,561,000

1.99 %

Number of Shareholders

Number of Shares

Percentage Held35.11 %Classification by Type of Shareholder

Domestic financial institutions

47

45,282,329

Securities firms

35

825,046

0.64 %

Other domestic corporations

258

40,610,759

31.48 %

119

9,969,799

7.73 %

Individuals and others

6,942

32,301,543

25.04 %

Total

7,401

128,989,476

100.00 %Foreign financial institutions and individuals

18. Subsequent Event:(1) Payment of Dividends
Shareholders approved the following appropriation of retained earning at the annual meeting held on June 28, 2012

Cash dividends

Tokyo, Osaka
9069
294,999,000
128,989,476
7,401
Mitsubishi UFJ Trust and Banking Corporation
Osaka Corporate Agency Division
3-6-3, Fushimi Machi, Chuo-ku, Osaka 541-8502, Japan
Otemae Audit Corporation

Largest Shareholders(Information on impairment losses in fixed assets by business segment)
No significant items to be reported.

Distribution

Stock Listings
Stock Code
Authorized Shares
Outstanding Share
Number of Shareholders
Administrator of Shareholder’s Register

Millions of yen

Thousands of
U.S. dollars¥ 755$ 9,186

39

Board of Directors and Corporate Auditors, Executive Officers (As of June 28, 2012)

President and Representative Director

Executive Vice President and Representative Director

Yasuhisa Fukuda

Masami Fujimori

President and Representative Director

Full-time Corporate Auditors

Yasuhisa Fukuda

Yutaka Toyama
Katsumi Okamoto
Masakazu Tsuji
Yuzo Matsumoto

Executive Vice President and Representative Director

Masami Fujimori
Directors and Senior Managing Executive Officers

Takeyo Teduka
Hisao Takahashi
Masuo Tanaka

Sales Division :Branches:
Departments:
Worldwide Locations:Executive Officers

Directors and Managing Executive Officers

Kengo Tanaka
Kazuhiro Yamanaka
Hirofumi Teramachi
Directors and Executive Officers

Yasushi Morimoto
Yoshihiro Kawase
Kazuaki Oike
Outside Director

Hiroko Ameno

Corporate Data (As of March 31, 2012)
Date of Establishment:
Paid-in Capital:
Head Office
Fiscal Year End
Number of Domestic Offices
Number of Overseas Offices
Number of Vehicles
Number of Vessels
Total Warehouse Space
Number of Employees

Domestic and Global Network (As of April 1, 2012)

July 1946¥20,521,133,751
1-30, Oyodonaka 1-chome, Kita-ku, Osaka
March 31
330
28
3,218
21
2,250,000 square meters
8,640

Junji Miyatsu
Tomoyuki Osako
Takashi Yamamoto
Kenichi Shiraki
Hiroshi Yoneji
Akira Taniguchi
Masami Tada
Noburoh Sasaki
Takashi Sawada
Yoshihito Koresawa
Yukio Murozaki
Kazuharu Tsurudome
Akira Ito
Kiyoshi Rurigaki
Kanji Kawasaki
Tatsuhiro Maeda

Housing Distribution Sales Division, Chemicals Distribution Sales Division, Logistics Sales Division, Department Store Logistics Sales Department
Sapporo, Sapporo Minami, Sendai, Sendai Kita, Kanto, Ibaraki, Kashiwa, Saitama, Saitama Kita, Saitama Minami, Tokyo,
Higashi Tokyo, Kanagawa, Chiba, Shizuoka, Shizuoka Nishi, Nagoya, Komaki, Mie, Keiji,, Keiji Higashi, Osaka,Hanshin, Minami Osaka, Okayama, Hiroshima, Kyushu, Kita Kyushu, Minami Kyushu, Nobeoka
International Business, Trading, Kazakhstan Business, Marine Transport, Railway Forwarding
China / Dalian, Quingdao, Shanghai, Nantong, Hong Kong, Guangzhou, Zhang Jia Gang, Shenzhen, Changshu, Shenyang
Australia / Ingleburn
Singapore
Thailand / Bangkok
Unites States / Chicago, Atlanta, Los Angeles, Kentucky
Kazakhstan / Almaty

Subsidiaries (As of March 31, 2012)
Company Name
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●

Senko Trading Co., Ltd.
Smile Corp.
Marufuji Co., Ltd.
Senko Insurance Services Co., Ltd.
Senko Information System Co., Ltd.
Logi Solution Co., Ltd.
Senko Moving Plaza Co., Ltd.
Senko A Line Amano Co., Ltd.
Tokyo Nohin Daiko Co., Ltd.
Inui Transport Co., Ltd.
Chugoku Piano Transport Co., Ltd.
Sapporo Senko Transport Co., Ltd.
Tohoku Senko Transport Co., Ltd.
Kanto Senko Transport Co., Ltd.
Saitama Senko Transport Co., Ltd.
Senko Housing Logistics Co., Ltd.
Chiba Senko Transport Co., Ltd.
Senko Fashion Logistics Co., Ltd.
Kashiwa Senko Transport Co., Ltd.
Noda Senko Logi Service Co., Ltd.
Kanagawa Senko Transport Co., Ltd.
Hokuriku Senko Transport Co., Ltd.
Fuji Senko Transport Co., Ltd.
Daito Senko Apollo Co., Ltd.
Tokai Senko Transport Co., Ltd.
Toyohashi Senko Transport Co., Ltd.
Mie Senko Logistics Co., Ltd.
Shiga Senko Transport Co., Ltd.
Osaka Senko Transport Co., Ltd.
Tokyo Nohin Daiko West Japan Co., Ltd.
Minami Osaka Senko Transport Co., Ltd.
Hanshin Senko Transport Co., Ltd.
Esaka Logistics Service Co., Ltd.
Hanshin Transport Co., Ltd.

Main BusinessTrading and Commerce, Others
Trading and Commerce
Trading and Commerce
OthersOthersOthersDistribution
Distribution
Distribution
Distribution
Distribution
Distribution
Distribution
Distribution
Distribution, Others
Distribution
Distribution, Others
Distribution
Distribution
Distribution
Distribution
Distribution
Distribution, Others
Distribution
Distribution
Distribution
Distribution
Distribution, Others
Distribution
Distribution
Distribution, Others
Distribution
Distribution
Distribution

Company Name
●
●
●
●
●
●
●
●
●
●
●
●

●
●

●

●
●

●

Nara Senko Logistics Co., Ltd.
Okayama Senko Transport Co., Ltd.
Sankyo Freight Co., Ltd.
Sanyo Senko Transport Co., Ltd.
Chushikoku Logistics Co., Ltd.
Shikoku Reefer Transport and Warehousing Co., Ltd.
Fukuoka Senko Transport Co., Ltd.
Minami Kyushu Senko Co., Ltd.
Miyazaki Senko Transport Co., Ltd.
Miyazaki Senko Apollo Co., Ltd.
Senko Foods Co., Ltd.
Crefeel Koto Co., Ltd.
S-TAFF Co., Ltd.
Senko Business Support Co., Ltd.
Logi Factoring Co., Ltd.
Senko Medical Logistics Co., Ltd.
Senko School Farm Tottori Co., Ltd.
Fuji Label Co., Ltd.
Takano Machinery Works Co., Ltd.
Senko Logistics (U.S.A.) Inc.
Senko (U.S.A.) Inc.
Dalian Tri-Enterprise Logistics Co., Ltd.
Senko Logistics (Shanghai) Co., Ltd.
Shanghai Senko International Freight Co., Ltd.
Shanghai Smile Corp.
Guangzhou Senko Logistics Co., Ltd.
Senko International Logistics (Hong Kong) Ltd.
Qingdao Xuexing International Logistics Co., Ltd.
Shenyang Senko Logistics Co., Ltd.
Senko (Thailand) Co., Ltd.
Senko International Logistics Pte. Ltd.
Senko Logistics Australia Pty Ltd.
Senko-Lancaster Silk Road Logistics LLP
Japan Select LLP

Main BusinessDistribution
Distribution
Distribution
Distribution
Distribution
OthersDistribution
Distribution
Distribution, Others
Distribution
OthersOthersOthersOthersOthersDistribution
OthersTrading and Commerce
Trading and Commerce
OthersDistribution
Distribution
Distribution
Distribution
Trading and Commerce
Distribution
Distribution
Distribution
Distribution
Distribution
Distribution
Distribution
Distribution
Trading and Commerce● : Consolidated subsidiaries

40

41