TRANSPORTA
WAREHOUSIINTERNATIO
DISTRIBUTIOCONSULTING
TRANSPORTA
WAREHOUSIINTERNATIO
DISTRIBUTIO
Annual Report 2011

For the year ended March 31, 2011

SENKO Co., Ltd.

Logistics of the Future Logistics of the Future Logisti

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, 2011, the Senko Group had a nationwide network with 317 locationsin Japan, an overseas network with facilities in 24 locations, 2,080,000 square metersof warehouse space, and a fleet of 19 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

2011

2010

2011
Thousands of
U.S. dollars

Millions of yen

For the year:
Operating revenues¥241,046¥227,692$2,898,930

Operating income

6,100

6,150

73,362

Net income

2,261

2,946

27,192

Total assets

177,285

168,1312,132,110

Net assets

60,60555,123728,863At 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¥18.44¥26.83$0.22

Cash dividends

10.00

8.00

0.12

Net assets

469.14489.995.64

Note : U.S. dollar amounts are converted from yen, for convenience only, at the prevailing rate of ¥83.15 to U.S.$1 on
March 31, 2011.

1
2
4
6
7
7
8
10
14
Operating revenues

17
18
20
20
21
22
23
31
32
32
33
33

Cautionary Statement with Respect to Forward-Looking Statements

Net income

Net income per share(Billions of yen)

(Millions of yen)

(Yen)

250

3,600

30

3,000

25

2,400

20

1,800

15

1,200

10

600

5

200

150

100

50

0

07

08

09

10

11

0

07

08

09

10

11

0

07

08

09

10

11

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

Senko is expanding operations in Japan and overseas to enter new markets by offering quality services
with outstanding performance in relation to cost.
Overview of the Fiscal Year
Increasing demand in emerging countries and benefits of programs by
the Japanese government to stimulate domestic demand kept theJapanese economy healthy in the fiscal year that ended in March 2011.
However, there was no full-scale economic recovery because of the yen’s
strength and much higher prices for fuel and natural resources.
Furthermore, massive and widespread damage caused by the Great East
Japan Earthquake of March 11, 2011 caused production volume to drop
sharply. But signs of a recovery are emerging due to the easing ofrestrictions on the supply of various products and materials. Exports andprivate-sector demand in Japan are expected to start rebounding as
manufacturing activity recovers. However, the outlook remains uncertain
because of the high cost of natural resources and foreign exchange rate movements.
The past fiscal year was the first year of the Senko Group’s new three-year medium-term business plan, which
is based on the slogan “Moving Global.” During the year, we took many actions in Japan and overseas that
included the establishment of large logistics bases and new companies in order to generate profits.
In Japan, we started operations at the Fukui PD Center (Fukui prefecture) in April 2010 and at the Kanazawa
PD Center (Ishikawa prefecture) in July. In September, we established the Maishima PD Center (Osaka
prefecture) to strengthen and expand cargo storage and handling capabilities in the Kansai region. In March
2011, we further strengthened our Tokyo Metropolitan region logistics services by opening the Shin-Toda PD
Center (Saitama prefecture).
Overseas, joint venture Senko-Lancaster Silk Road Logistics LLP was established in May 2010 to operate a newlogistics business in Kazakhstan. In China, we established Qingdao Xuexing International Logistics Co., Ltd. inJune 2010 to expand Japan-China integrated fashion distribution operations. The Qingdao Apparel Logistics
Center started operations in December and the Dalian No. 2 Distribution Center started operations in January.

expenses for earthquake damage at distribution centers in the Tohoku region and at other facilities, net income
was down 23.2% to 2,261 million yen.
Distribution of earnings
For the distribution of earnings, the Company has a fundamental policy of paying a stable dividend while setting
the dividend at a level that reflects changes in our performance. The aim is to increase earnings that are returned
to shareholders. At the same time, the dividend takes into account the need to retain the amount of earnings
needed to fund growth in the future and strengthen our operations.
For the fiscal year that ended in March 2011, based on results of operations and other factors, the annual dividendwas ¥10 per share, which is the sum of interim and year-end payments of ¥5 per share.
Developing new markets under our medium-term business plan
There were concerns about the effects of the Great East Japan Earthquake on manufacturing, consumer spending
and other economic activity in Japan. However, demand for logistics services is growing because demandassociated with earthquake recovery activities has emerged quickly. Although recovery demand is expected to be
replaced by reconstruction demand, the outlook remains uncertain because of the high cost of natural resources
and the yen’s strength. In this environment, assisting customers with their earthquake recovery andreconstruction activities is the highest priority of the Senko Group. We are determined to do what is needed tomeet the expectations of our customers.
This is the second year of the three-year medium-term business plan that we started in the previous fiscal year.
During this year, we will focus on supplying services in Japan and overseas with superior quality andoutstanding performance in relation to the cost. Developing new markets is another goal. At the same time, weare committed to fulfilling our obligations to society as a corporate citizen. We will upgrade the motivation, skills
and health of our group’s workforce while placing emphasis on compliance with laws and regulations,environmental protection, and safety.
We look forward to the continued support of our shareholders.

Operating revenues increased 5.9% to 241,046 million yen due to aggressive measures to establish
relationships with new customers, substantial capital expenditures, the addition of Marufuji Co., Ltd. to the
Senko Group in the previous fiscal year, and other factors. Operating income decreased 0.8% to 6,100 million
yen. The impact of the Great East Japan Earthquake on business activities in the Tohoku and Kanto regions
was one reason for this decline. However, ordinary income increased 2.3% to 6,375 million yen because of an
improvement in net non-operating income and expenses. Due to an extraordinary loss for repairs and other2

September 2011
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 og an

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

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

G o beyon d logistics

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

Retail-related Products Logistics

Conduct a “global” business with social consciousness.

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

Revolu tionize b u siness
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.

Trading and Commerce Business1

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.

3

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

4

Introduce 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.

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

Response to the Great East Japan Earthquake

G oal s of M edi um- 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 business field, 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:(Billions of yen)

227.7

FY2010(Billions of yen)

9.0 billion yen

300.0

FY2012

9.0

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

Net Income : 4.3 billion yen
FY20104

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

The Great East Japan Earthquake of March 11, 2011 damaged a number ofSenko Group facilities. Immediately after this disaster, all Group employees
began working as a unified team on restoring business operations. Activities
were resumed as repairs were completed and all locations had returned tonormal operations by July.
We fulfilled our responsibilities to society as a logistics company with astrong commitment to public service by transporting emergency supplies
and other materials for recovery activities in response to requests from local
governments and our customers.
We will continue to extend support for the recovery and reconstruction
activities of our customers. At the same time, we will offer proposals forbuilding disaster-resistant supply chains and other ideas to meet the
expectations of our customers.
As our distribution centers perform increasingly sophisticated tasks,
these facilities are becoming more reliant year after year on information
technology. We have established a data backup center in an area of Japan
with a small earthquake risk to prevent a disruption in distribution activities(in the supply of our customers’ products) in the event that our data systems
become inoperative.

FY20125

Review of Operations
This section is a review of operations for business segments. Senko started using
the following three business segments in the fiscal year that ended in March 2011:
Distribution, Trading and Commerce, and Others.

D istribution
Business segments

87.7%

Operating revenues(Billions of yen)

250
200

203.7

211.5

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.

150

Due to aggressive measures to attract new customers andsubstantial capital expenditures, operating revenues in thissegment were ¥211.5 billion, 3.8% higher than one year earlier.

100
50

Business segments

Tr a d i n g a n d C om m e rc e

11.1%

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.

Operating revenues(Billions of yen)

30.0

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.

26.6

25.0

21.4

20.0
15.0
10.0

The 24.5% increase in revenues to ¥26.6 billion was the result of
the acquisition of Marufuji Co., Ltd. and growth in sales of
petroleum products.

5.0
0
10

0
10

11

11

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.
Revenues increased 13.9% to ¥2.8 billion because of growth inthe outsourced information processing business.

1.2%

Operating revenues(Billions of yen)

2.8

3.0
2.5

2.5

2.0
1.5
1.0
0.5
0
10

6

11

7

Review of Operations by Product Category
Sales composition

Others20.0%

Retailproduct
logistics

32.3%
Chemicals
Logistics

21.7%

Housing logistics

26.0%

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 Log i 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.
In the fiscal year that ended in March 2011, revenues in thiscategory increased 4.2% to ¥68.4 billion mainly because of new
customers in the chain store, apparel, and medical andpharmaceutical sectors and growth in the volume of cargo handled.

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.
Revenues increased 5.2% to ¥55.1 billion. Growth in thevolume of products transported for prefabricated housecompanies was one reason. Performance also benefited
from adding new customers in the homebuilding materials
manufacturing sector.

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 by knowhow acquired from chemical logistics activities dating backto 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 well as film
products, molded plastic products, liquids, hazardous
substances, rubber products and many other items.
Revenues increased 3.2% to ¥45.9 billion as the addition of
new customers offset a decline in the cargo volume atcurrent customers.

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.
Revenues increased 2.1% to ¥42.2 billion mainly because of new customers for the transport of food and electrical andother machinery.

89Corporate Social Responsibility<Business Activities>

Regional
communities

Other Internal
Departments

Employees• Maintaining safety and health in
the workplace• Nurturing personnel• Fairness in employment

Government• Legal compliance• Traffic safety• Environmental consciousness

Subsidiaries and Affiliated Companies

Implementing Responsibilities; Auditing and Monitoring
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.

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

Committee Chairman :President of the Company
Head Office : CSR Promotion GroupThe CSR Promotion Committee

10

Compliance Committee

Head OfficeCommittee

Head Office /Production Management DivisionCorporate Ethics Committee

Head Office /General Affairs DivisionInternal Controls Committee

Head Office /CSR Promotion Group

Risk Management Committee

Head Office /General Affairs Division

Health and Safety Commitee

Head Office / Safety andEnvironmental Management Division

Environmental Promotion Commitee

Head Office / Safety andEnvironmental Management Division

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.

Building a Crisis Management Framework
Each division and affiliated companies

CSR Promotion Committee

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

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 p o n s ib i l i t y
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.

Auditing Dept.

• Partnership• Environmental consciousness

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

CSR Promotion
Committee

Representative Director

Other Management
Departments at Head Office

SENKO Co., Ltd.

Transport anddelivery customers

Corporate Management
Committee

CSR PromotionGroup• Traffic safety• Environmental consciousness• Regional exchange• Social contribution• Proper disclosure of information

Customers

Board of Directors

Safety and Environmental
Management Div.

• Partnerships• Proper information
disclosure

Cooperative companies andprocurement sources

Board of Corporate Auditors

President’s OfficeServices• High quality• Low cost
• Efficient• Environmentally conscious• SafeBusiness partners
and vendors

Shareholders

The Senko Group, as a business involved inlogistics work of a highly public nature, makes
every effort to ensure that its corporate activities
are thoroughly compliant with laws, based onawareness that proper corporate governance is thefoundation of our existence as a business and isregarded as a high priority managerial issue.

Business
Management Div.

• Proper distribution of profits• Transparency in management• Proper disclosure of information

General Meeting of
Shareholders

Corporate Governance Philosophy and Systems

GeneralAffairs Div.

Stakeholder Relationships in Senko’s BusinessC o rp o ra t e G o ve rna nc e a nd C o m p l i a nc e

Accounting Auditors

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.

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
Me asu res t o Redu ce o u r E n v iro n m e n ta l Im pa 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 Receives Eco-Services Award at the Eco-Products Awards
The 7th Eco-Products Awards ceremony was held on December 9,2010 by the Global Environmental Forum. Senko received theMinister of Land, Infrastructure, Transport and Tourism Award fromthe Japanese government in the eco-services category. We received
this honor for our bulk container distribution system in the chemical
distribution sector, which is one of our primary services.
For the long-distance transport of raw materials for resins, which

Filling/
Packaging

BEFORE

Cargo handling/Storage

Loading

UnloadingCargo handling/Storage

Trans
port
ation

are powders and granules, we developed a unique ISO-standard
container. The container lowers the environmental burden bymaking it possible to transport these materials by train and shiprather than trucks. This cuts CO2 emissions in half and lowers theamount of packaging materials, too. Furthermore, these containers
make transporting the materials more efficient while reducing therisk of contamination during transport.

Bag splitting/InputFilling

AFTER

Truck

PayoutRailroad
Silo

Ship
Transportation

S af et 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 2011, operating revenues
increased 5.9% to 241,046 million yen even though market
conditions were extremely challenging. The volume of cargotransported in Japan decreased for the 11th consecutive year
and operations were affected by the Great East Japan
Earthquake of March 11, 2011. Revenues increased because ofactions taken under the medium-term management plan thatwas started in the previous fiscal year and covers a three-year
period. The Senko Group constructed large distribution
centers in Japan and overseas, established new companies andtook other actions. Revenues also benefited from thecontinuation of aggressive sales activities to build relationships
with new customers and grow in other ways.

Consolidated sales by segment
Business segment performance for the fiscal ended March2011 was as follows:
1) In the Distribution segment, operating revenues increased
3.8% to 211,508 million yen because of extensive activities
to capture orders from new customers and investments inlarge logistics facilities.

2) In the Trading and Commerce segment, operating
revenues increased 24.5% to 26,687 million yen because of
the acquisition of Marufuji and higher sales of petroleum
products.
3) In the Other segments, operating revenues increased
13.9% to 2,850 million yen because of growth in theoutsourced information processing business.

Consolidated sales by product category

Financial Position
Total assets were 177,285 million yen at the end of the fiscal
year, 9,154 million yen higher (5.4%) than one year earlier.
There was an increase of 4,467 million yen in property, plantand equipment mainly because of the construction of new
distribution centers, the purchase of land to prepare for
future growth and other substantial capital expenditures.

(Units: millions of yen)

For the fiscal ended
March 31, 2011

For the fiscal ended
March 31, 2010

Sales

Component
ratio (%)

Sales

Component
Growthratio (%) Difference rate (%)

211,508

87.7

203,746

89.5

7,762

3.8

Operating income decreased 0.8% to 6,100 million yen mainly
because of the impact of the Great East Japan Earthquake onbusiness activities in the Tohoku and Kanto regions.

Retail Product
Logistics

68,382

28.4

65,634

28.8

2,748

4.2

Housing
Logistics

55,05322.8

52,326

23.0

2,727

5.2

As a result, operating income decreased by 0.2 percentage
point to 2.5% of operating revenues. Income before income
taxes decreased 21.0% to 4,288 million yen because of thedecline in operating income and losses caused by the Great
East Japan Earthquake. Net income decreased 23.2% to 2,261
million yen.

Chemicals
Logistics

45,87219.0

44,453

19.5

1,419

3.2

OthersDistribution

Operating revenues

42,201

17.5

41,333

18.2

868

2.1

Trading & Commerce

26,687

11.1

21,442

9.4

5,245

24.5

Others

2,851

1.2

2,504

1.1

347

13.9

227,692 100.0

13,354

5.9

Total

241,046 100.0

Operating income(Billions of yen)

(Millions of yen)

250

7,000

Net income(Millions of yen)

Capital Expenditures and Depreciation
Capital expenditures increased 5,293 million yen (106.7%) to

Net income per share
(Yen)

(Yen)

30

10

Operating income tooperating revenues

25
9

3

5,000

20

2,000

8

4,000
15

2

1,500
3,000

100

Cash dividends per share

4

2,500

150

Planned and actual use of proceeds of public offering ofstock at market value
Proceeds of 3,839 million yen. There was also a private
placement of stock for a secondary offering associated withan over-allotment that generated proceeds of 511 million
yen. A summary of planned and actual uses of theseproceeds is presented below.
1) Planned use of proceeds
Capital expenditures for purchase of land andconstruction of buildings for the Noda No. 1 PD Centerand the Noda No. 2 PD Center2) Actual use of proceeds
Proceeds were used primarily as planned.

(%)

6,000

200

Net assets increased 5,481 million yen (9.9%) to 60,605
million yen. This was mainly the result of increases of 2,175
million yen in common stock and the capital surplus becauseof the June public offering of stock and 1,201 million yen
increase in retained earnings. The equity ratio increased by
1.3 percentage point to 33.3%.

Current liabilities increased 2,564 million yen (5.0%) to
53,924 million yen. There was an increase of 1,676 million
yen in the current portion of long-term debt and othercurrent liabilities were higher in part because of an increasein the allowance for disaster losses associated with the Great
East Japan Earthquake. Long-term debt, less current portion
increased 934 million yen and total interest-bearing liabilities
at the end of the fiscal year were 60,776 million yen, an
increase of 2,160 million yen (3.7%) from one year earlier.
But interest-bearing liabilities decreased by 0.6 percentage

Operating income / net
income to operating revenues

3,000

point from one year earlier to 34.3% of total assets.

7
10

1,000

2,000

1
Net income tooperating revenues

50
500

1,000

0

14

07

08

09

10

11

0

07

08

09

10

11

0

0
07

08

09

10

11

07

08

09

10

6

5

11

0

07

08

09

10

11

0

07

08

09

10

11

15

Report of Independent Certified Public Accountants

10,255 million yen in the fiscal year that ended in March 2011.
This increase was mainly the result of investments in large
distribution bases and other facilities in Japan and overseas toenlarge the business infrastructure in accordance with the threeyear medium-term management plan.

Net cash provided by financing activities was 3,405 million yen.
There were proceeds of 9,100 million yen from long-term loans
payable and 4,350 million yen from the issuance of common
stock. Uses of cash included payments of 6,490 million yen for
the repayment of long-term loans payable, 1,544 million yen for
the repayment of finance lease obligations and 1,072 million yen
for cash dividends paid.

In the fiscal year ending in March 2012, we plan to make capital
expenditures of 14,181 million yen as we increase the pace ofbuilding distribution centers in Japan and other countries.

As a result, there was a net decrease of 110 million yen in cash
and cash equivalents to 14,394 million yen at the end of the
fiscal year.

Depreciation increased 622 million yen (12.5%) to 5,590 million
yen and is expected to be 5,616 million yen in the fiscal year
ending in March 2012.

Cash flows
In the fiscal year that ended in March 2011, net cash provided
by operating activities was 7,409 million yen. Major
components are income before income taxes of 4,288 million
yen, depreciation and amortization of 5,590 million yen andincome taxes paid of 2,882 million yen.
Net cash used in investing activities was 11,390 million yen.
Major uses of cash were payments of 9,646 million yen for thepurchase of property, plant and equipment and 1,565 million
yen for long-term loans receivable.

Total assets

Net assets /net assets ratio

ROE / ROA(Billions of yen)(Billions of yen)

(%)

(%)

180

80

40

6

70

35

150

5
60

30

50

25

40

20

30

15

120

4

90

60

16

3
ROA
2

20

10

10

5

30

0

ROE

1

07

08

09

10

11

0

07

08

09

10

11

0

0

07

08

09

10

11

17

Consolidated Balance Sheets
SENKO Co., Ltd. and Consolidated Subsidiaries
March 31, 2011 and 2010

Thousands of
U.S.dollars

Millions of yen

ASSETS

2010

2011

2011

Current assets:

Thousands of
U.S.dollars

Millions of yen

LIABILITIES AND NET ASSETS

2011

2010

¥ 8,380¥ 8,830$ 100,782

Current portion of long-term debt (Note 6)

8,166

6,490

98,208

Lease obligations

1,608

1,087

19,339

48

81

577

2011

Current liabilities:¥ 14,394

Cash and cash equivalents¥ 14,505$ 173,109

Trade accounts and notes receivable––

Short-term loans (Note 6)

465

178

5,592

31,67630,610380,950

(29)

(44)

(349)

Inventories

1,016

1,577

12,219Others (Note 12)22,55822,395271,293

Deferred tax asset (Note 12)

2,506

1,933

30,139Accrued expenses

6,638

6,308

79,832

Prepaid expenses and other current assets

2,806

2,686

33,746

Accrued income taxes

1,719

1,845

20,673

52,83451,445

635,406

Other current liabilities

4,807

4,323

57,811

53,92451,359648,515

Non-consolidated subsidiaries and affiliates
OthersLess : allowance for doubtful accounts

Total current assets

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

Total current liabilities
Investments in and long-term loans to non-consolidated subsidiaries and affiliates

2,647

973

31,834Long-term debt, less current portion (Note 6)

44,231

43,297531,942

Investment securities (Notes 4 and 8)

2,272

2,464

27,324

Lease obligations

4,136

3,970

49,741

Accrued retirement benefits (Note 7)

9,724

9,907

116,945

152,767

145,186

1,837,246

Other long-term liabilities

4,665

4,475

56,104

Less : accumulated depreciation(66,063)(62,950)(794,504)

Net property and equipment

86,704

82,236

1,042,742

Long-term deferred tax assets (Note 12)

4,970

5,007

59,771Other assets

27,85826,006

335,033

20,521

18,346

246,795

Capital surplus

18,782

16,607

225,881

Retained earnings

20,807

19,605250,235

2011 and 2,172,362 shares in 2010

(1,047)(772)(12,592)

Total Shareholders’ equity

59,06353,786710,319

3

50

36

Loss on deferred hedges

(10)

(23)

(120)

Translation adjustments

(31)

(4)

(373)

Property and equipment, at cost (Notes 5 and 8)

Contingent liabilities (Note 9)
Net assets (Note 10):
Shareholders’ equity
Common stock:
Authorized––294,999,000 shares
Issued––128,989,476 shares in2011 and 111,989,476 shares in 2010

Less : Treasury stock, at cost––3,174,635 shares in

Accumulated other comprehensive income :Net unrealized holdings gain on securities

(38)

23

(457)

108

80

1,298

Minority interests

1,472

1,234

17,703

Total net assets

60,60555,123728,863¥ 177,285¥ 168,131$ 2,132,110

Total accumulated other comprehensive income :Stock acquisition rights (Note 11)

Total assets¥ 177,285¥ 168,131$ 2,132,110

See the accompanying notes to the consolidated financial statements.

18

Total liabilities and net assets

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, 2011, 2010 and 2009

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 12):Current
DeferredIncome before minority interests
Minority interests in loss (gain) of consolidated subsidiaries
Net income

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

Thousands of
U.S.dollars

Millions of yen

2011

2010

2009

2011

¥ 241,046¥ 227,692¥ 212,659$ 2,898,930

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

208,311
13,231
221,542
6,150

196,141
10,954207,095
5,564

2,652,664
172,904
2,825,568
73,362

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

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

907
(933)
(301)
(327)

13,049(14,275)(20,566)(21,792)

4,288

5,421

5,237

51,570

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

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

1,928
460
2,388
2,849

32,568(6,747)25,821
25,749120¥ 2,261138¥ 2,946(1)¥ 2,848

1,443$ 27,192

Yen¥ 18.44
16.72
10.00

U.S.dollars¥ 26.83
24.16
8.00¥ 25.95
23.39
8.00$ 0.220.20
0.12

Millions of yen

Thousands of
U.S.dollars

2011

2011

¥ 2,141$ 25,749

SENKO Co., Ltd. and Consolidated Subsidiaries
Years ended March 31, 2011, 2010 and 2009
Thousands

Balance at March 31, 2008
Net income
Conversion of convertible bonds
Cash dividends
Purchases of treasury stock
Retirement of treasury stock
Adjustment of retained earnings
for newly consolidated subsidiaries
Increase in treasury stock due to changes
in shareholding ratio of an affiliate
Other changes
Balance at March 31, 2009
Net income
Cash dividends
Purchases of treasury stock
Retirement of treasury stock
Adjustment of retained earnings
for newly consolidated subsidiaries
Other changes
Balance at March 31, 2010
Net income
Issuance of common stock
Cash dividends
Purchases of treasury stock
Retirement of treasury stock
Adjustment of retained earnings
for a newly consolidated subsidiary
Other changes
Balance at March 31, 2011

Millions of Yen
Netunrealized
holding gain
(loss) on
securities

Loss ondeferredhedges¥ (717)
—
—
—
(75)
15

¥ 98
—
—
—
—
—

¥—
—
—
—
—
—

¥ 32
—
—
—
—
—

¥ 26
—
—
—
—
—

¥3
—
—
—
—
—

¥ 49,846
2,848
100
(878)
(75)
19

(4)

—

—

—

—

—

—

(4)

—
—
¥ 16,608
—
—
—
(1)

—
—
¥ 17,520
2,946
(878)
—
—

(2)
—
¥ (779)
—
—
(4)
11

—
(124)
¥ (26)
—
—
—
—

—
—
¥—
—
—
—
—

—
(43)
¥ (11)
—
—
—
—

—
34
¥ 60
—
—
—
—

—
409
¥ 412
—
—
—
—

(2)
276
¥ 52,130
2,946
(878)
(4)
10

—
—
¥ 18,346
—
2,175
—
—
—

—
—
¥ 16,607
—
2,175
—
—
(0)

17
—
¥ 19,605
2,261—(1,073)————¥ (772)
—
—
—
(276)
1

—
76
¥ 50
—
—
—
—
—

—
(23)
¥ (23)
—
—
—
—
—

—
7
¥ (4)
—
—
—
—
—

—
20
¥ 80
—
—
—
—
—

—
822
¥ 1,234
—
—
—
—
—

17
902
¥ 55,123
2,261
4,350
(1,073)
(276)
1

—
—
¥ 20,5210—¥ 18,782

14—¥ 20,807——¥ (1,047)

—
(47)
¥3

—
13
¥ (10)—(27)¥ (31)

—
28
¥ 108

—
238
¥ 1,472

14205¥ 60,605

Thousands of U.S. dollars
Net unrealized
Loss onStockholding gain
Translation
deferred adjustments acquisition Minority(loss) on
interests
hedgesrightssecurities

Total
net
assetsNumber ofshares ofcommonstock issued

Commonstock

CapitalsurplusRetainedearnings

111,746
—
243
—
—
—

¥ 18,296
—
50
—
—
—

¥ 16,554
—
50
—
—
4

¥ 15,554
2,848
—
(878)
—
—

—

—

—

—
—
111,989
—
—
—
—

—
—
¥ 18,346
—
—
—
—

—
—
111,989—
17,000—————128,989

Treasurystock(at cost)

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

Income before minority interests
Other comprehensive income:Net unrealized holding loss on securities
Loss on deferred hedges
Translation adjustments
Share of other comprehensive income of an affiliate accounted for using equity method
Total other comprehensive loss

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

(493)
228
(361)
(72)
(698)

Comprehensive income¥ 2,083$ 25,051

Total comprehensive income attributable to:
Owners of the parent
Minority interests¥ 2,205¥ (122)$ 26,518$ (1,467)

Stock
Minority
Translation
adjustment acquisition interests
rightsTotal
netassetsCommonstock

CapitalsurplusRetainedearnings

Treasurystock(at cost)$ 220,637$ 199,723$ 235,779$ (9,284)$ 601$ (276)$ (48)$ 961$ 14,841$ 662,934——

27,192

—

—

—

—

—

—

27,192

26,15826,158

—

—

—

—

—

—

—

52,316

Cash dividends——(12,904)

—

—

—

—

—

—

(12,904)

Purchases of treasury stock

—

—

—

(3,320)

—

—

—

—

—

(3,320)Retirement of treasury stock

—

(0)

—

12

—

—

—

—

—

12

—

0

168

—

—

—

—

—

—

168

—

—

—

—

(565)

156

(325)

337

2,862

2,465

$ 246,795$ 225,881$ 250,235$ (12,592)$ 36$ (120)$ (373)$ 1,298$ 17,703$ 728,863

Balance at March 31, 2010
Net income
Issuance of common stock

Adjustment of retained earnings
for a newly consolidated subsidiary
Other changes
Balance at March 31, 2011

See the accompanying notes to the consolidated financial statements.

See the accompanying notes to the consolidated financial statements.

20

21Notes to the Consolidated Financial Statements

Consolidated Statements of Cash FlowsSENKO Co., Ltd. and Consolidated Subsidiaries
Year ended March 31, 2011, 2010 and 2009

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 disaster
Loss on adjustment for changes of accounting standard for asset retirement obligations
Equity in losses (gains) of affiliates
Decrease in allowance for employee retirement
Increase (decrease) in accrued bonuses to employees
Interest and dividends income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) 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
Increase in long-term loans receivable to non-consolidated subsidiaries
Payments for purchases of non-consolidated subsidiaries
Proceeds from sales of a non-consolidated subsidiary 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 convertible bondPayment for redemption of bonds
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

SENKO Co., Ltd. and Consolidated Subsidiaries
Thousands of
U.S.dollars

Millions of yen

2011

2010

2009

2011

¥ 4,288¥ 5,421¥ 5,237$ 51,570

5,590
451
181
977
130
(3)
(183)
(531)
(1,085)
1,187
(729)
560
775
(398)
11,210275(1,194)(2,882)
7,409

4,969
—
331
—
—
(17)
(94)
513
(1,096)
1,163(2,827)
(682)
2,035
(727)
8,989
278
(1,150)(1,997)
6,120

4,032
—
225
—
—
197
(427)
(54)
(907)
933
3,560
713
(4,419)
79
9,169
183
(934)
(2,726)
5,692

67,228
5,424
2,177
11,7501,563(36)(2,201)(6,386)(13,049)
14,275(8,767)
6,735
9,321(4,787)
134,8173,307(14,360)(34,660)
89,104(9,646)661(29)
76(1,565)
(573)
—
—
(314)
(11,390)(2,456)
325
(20)
72
—
(239)
134
(478)
428
(2,234)(6,852)
351
(690)
59
—
(195)
3
(18)
208
(7,134)(116,007)
7,949
(349)
914
(18,821)(6,891)——(3,776)(136,981)

(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

1,750
9,473
(8,136)
—
(810)
(330)
—
(75)
19
(878)
(170)
843
(30)
(629)
12,31859¥ 11,748(5,412)
109,441(78,052)——(18,569)
52,316(3,320)12(12,892)(2,574)40,950(373)(7,300)174,444
5,965$ 173,109

See the accompanying notes to the consolidated financial statements.

22

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, 2011, which was ¥83.15 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 at cost determined by the first-in first-out method (with book values written down on the balance sheet based on
decreased profitability of assets.). Supplies are stated at cost determined by the moving-average method. Real estate for sale and work inprocess are stated at cost determined by the specific method (with book values written down on the balance sheet 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.
(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.

23

(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) 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.
(l) 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.
(m) Comprehensive Income
In the year ended March 31, 2011, the Companies apply the “Accounting Standard for Presentation of Comprehensive Income” (ASBJ
Statement No. 25 issued on June 30, 2010).
The comparative information for the year ended 31st March, 2010 is as follows:—
Millions of yen
2010
Other comprehensive income:Net unrealized holding loss on securities¥ (15)
Loss on deferred hedges(34)
Translation adjustments
4
Share of other comprehensive income of an affiliate accounted for using equity method2
Total other comprehensive loss
¥ (43)
Total comprehensive income attributable to:
Owners of the parent
Minority interests
Comprehensive income¥ 2,923(159)¥ 2,764

The following is a summary of marketable securities included in investment securities, at March 31, 2011 and 2010.

2011
Equity security
Bonds and Others

2010
Equity security
Bonds and Others

2011
Equity security
Bonds and Others

Acquisitioncost¥ 1,135148¥ 1,283

Millions of yen
Gross
Gross
unrealized
unrealized
gains
losses¥ 184¥ (131)0(7)¥ 184¥ (138)Book
value(Market value)¥ 1,188141¥ 1,329

Acquisitioncost¥ 1,232149¥ 1,381Millions of yen
Gross
Gross
unrealized
unrealized
gains
losses¥ 235¥ (106)0(5)¥ 235¥ (111)Book
value(Market value)¥ 1,361144¥ 1,505

Acquisitioncost$ 13,650
1,780$ 15,430

Thousands of U.S.dollars
Gross
Gross
unrealized
unrealized
gains
losses$ 2,213$ (1,576)
0(84)$ 2,213$ (1,660)

Book
value
(Market value)$ 14,287
1,696$ 15,983

The proceeds from sales of , and gross realized gain and loss on , other securities for the years at March 31,2011 and 2010 are summarized as follows.

Proceeds from sales
Gross realized gain
Gross realized loss

Millions of yen
2011
2010
¥ 59
¥ 44
0
4
63
—

Thousands of
U.S.dollars
2011
$ 710
0
758

Millions of yen
2011
2010
¥ 39,233¥ 35,402
83,805
81,68318,326
18,543
4,476
4,256
1,340
485
5,587
4,817
¥ 152,767¥ 145,186

Thousands of
U.S.dollars
2011$ 471,834
1,007,877
220,397
53,830
16,11567,193$ 1,837,246

Millions of yen
2011
2010
¥ 8,380¥ 8,830

Thousands of
U.S.dollars
2011$ 100,782

5. Property and Equipment:
At March 31, 2011 and 2010, property and equipment at cost consisted of the following:—

3. Changes of Accounting Policies(a) Accounting Standard for Asset Retirement Obligations
In the year ended March 31, 2011, the Companies apply the ”Accounting Standard for Asset Retirement Obligations“ (ASBJ Statement No. 18
issued on March 31, 2008) and the ”Guidance on Accounting Standard for Asset Retirement Obligations“ (ASBJ Guidance No. 21 issued on
March 31, 2008).
As a result, operating income decreased by ¥ 20 million ($ 241 thousand) and income before income taxes decreased by ¥ 150 million ($ 1,804
thousand) respectively.
(b) Accounting Standard for Equity Method of Accounting for Investment and Practical Solution on Unification of Accounting Policies
Applied to Associates Accounted for Using the Equity Method
In the year ended March 31, 2011, the Companies apply the ”Accounting Standard for Equity Method of Accounting for Investment“ (ASBJ
Statement No. 16 issued on March 10, 2008) and the ”Practical Solution on Unification of Accounting Policies Applied to Associates Accounted
for Using the Equity Method“ (ASBJ PITF No. 24 issued on March 10, 2008).
There is no impact on the Companies‘ consolidated financial statements for the year as a result of this change.

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

6. Short-term Loans and Long-term Debt:
At March 31, 2011 and 2010, short-term loans consisted of the following:—

0.68% to 0.84% unsecured loans from banks
4. Investment Securities
The carrying amounts of investment securities at March 31,2011 and 2010, consisted of the following:—

Marketable securities
Non-marketable securities

24

Millions of yen
2011
2010
¥ 1,329¥ 1,505943
959¥ 2,272¥ 2,464

Thousands of
U.S.dollars
2011$ 15,983
11,341$ 27,324

25

At March 31, 2011 and 2010, long-term debt consisted of the following:—
Thousands of
U.S.dollars
2011$ 84,185
58,930Millions of yen
2011
2010
¥ 7,000¥ 7,000
4,900
4,900

1.31% bonds due 2014
Convertible bond due 2012
0.94% to 2.44% loans from banks and insurance companies:
Unsecured

40,49752,397(8,166)¥ 44,231

Less current portion

37,88749,787(6,490)¥ 43,297

487,035
630,150(98,208)$ 531,942

8. Pledged Assets:
The following assets were pledged as collateral as at March 31, 2011 and 2010—Land
Buildings
VehiclesInvestment securities

Millions of yen
2011
2010
¥ 2,392¥ 2,392
776
844
1
1
10
10
¥ 3,179¥ 3,247

Thousands of
U.S.dollars
2011$ 28,767
9,333
12
120
$ 38,232

Millions of yen
2011
2010
¥ 100
¥ 100

Thousands of
U.S.dollars
2011$ 1,203

Millions of yen
2011
2010
¥ 180
¥8
853
1,389
150
150
¥ 1,183¥ 1,547

Thousands of
U.S.dollars
2011$ 2,165
10,2591,803$ 14,227

Obligations which were secured on the above assets were as follows:—
On July 20, 2007, the Company issued ¥ 5,000 million ($ 60,132 thousand) of zero coupon convertible bonds with stock acquisition rights due in2012. The stock acquisition rights are exercisable during the period from July 6, 2012 at a conversion price of ¥ 395 ($ 4.75) per share.
The annual maturities of long-term debt at March 31, 2011 are as follows:—
Year ending
March 31
2012
2013
2014
2015
2016
There afterLong-term debt, including current portion
Millions of yen¥ 8,166
9,468
7,718
13,6785,717
7,650

Thousands of
U.S.dollars$ 98,208
113,867
92,820164,498
68,75592,002

9. Contingent Liabilities:
At March 31, 2011 and 2010, contingent liabilities were as follows:

At March 31, 2011, the Company has committed line and overdraft contracts with thirteen banks aggregating ¥ 25,000 million ($ 300,661
thousand). Of the total credit limit, ¥ 6,650 million ($ 79,976 thousand) was used as the above short-term and long-term borrowing, and the rest
¥18,350 million ($ 220,686 thousand) was unused.

7. Accrued Retirement Benefit:
The following table sets forth the changes in benefit obligation, plan assets and funded status of the Company and its certain subsidiaries at March
31, 2011 and 2010.
Thousands ofMillions of yen
U.S.dollars
2011
2010
2011
Benefit obligation at the end of year
¥ (23,980)¥ (24,150)$ (288,395)
Fair value of plan assets at the end of the year
12,004
12,039144,366
Unfunded retirement benefit obligation(11,976)(12,111)(144,029)
Unrecognized actuarial loss
4,666
4,459
56,116
Net retirement benefit obligation(7,310)(7,652)(87,913)
Prepaid pension cost
2,414
2,255
29,032
Accrued retirement benefit¥ (9,724)¥ (9,907)$ (116,945)
Retirement benefit costs of the Company and its certain subsidiaries included the following components for the year ended March 31, 2011, 2010
and 2009.
Thousands ofMillions of yen
U.S.dollars
2011
2010
2009
2011
Service cost
¥ 1,206¥ 1,200¥ 1,182$ 14,504
Interest cost
566
582
585
6,807
Expected return on plan assets
(349)
(302)
(402)
(4,197)
Amortization:
Recognized actuarial loss
525
632
321
6,314
Net periodic benefit cost
¥ 1,948¥ 2,112¥ 1,686$ 23,428
Assumption used in the accounting for the defined benefit plans for the year ended March 31, 2011, 2010 and 2009 is as follows:

Method of attributing benefit to periods of service
Discount rate
Expected rate of return on fund assets
Amortization period of prior service costs
Amortization period of actuarial gain

26

2011
Straight-line
basis
2.5%
3.0%
1 year13 years

2010
Straight-line
basis
2.5%
3.0%
1 year13 years

2009
Straight-line
basis
2.5%
3.0%
1 year13 years

Guarantees of lease obligation for a non-consolidated subsidiary
Buyback obligations associated with securitization of receivables
Recourse obligation associated with securitization of guarantee deposits

10. 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, 2011, included the Company’s legal reserveof ¥ 1,506 million ($ 18,112 thousand).

11. Stock Option Plans:
The stock option plans of the Company approved by the shareholders in accordance with the Japan Companies Act at March 31, 2011 were as
follows:(1) Description of stock options
stock option
2007 Stock options (1st)Grantees
10 directors
3 auditors

2007 Stock options (2nd)

Number of shares with
Option price
Shares withwarrants granted
Date of grant per warrant warrants granted

Exercise period

61,000 shares

July 20, 2007

¥1

Common stock

July 21,2007-June 30,2027

9 executive 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 executive 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 executive officers

27,000 shares

July 1, 2009¥1

Common stock

July 2,2009-June 30,2029

2010 Stock options (8th)

11 directors
4 auditors

90,000 shares

July 1, 2010

¥1

Common stock

July 2,2010-June 30,2030

2010 Stock options (9th)

13 executive officers 42,000 shares
13 assistant directors

July 1, 2010

¥1

Common stock

July 2,2010-June 30,2040

27

(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, 2011. 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
options(1st) options(2nd) options(4th) options(5th) options(6th) options(7th) options(8th) options(9th)Share subscription rights
which are not yet vested (shares):
At March 31 , 2010
GrantedForfeited
VestedAt March 31 , 2011
Share subscription rights whichhave already been vested (shares):
At March 31 , 2010
VestedExercised
Forfeited
At March 31 , 2011

55,000———55,00012,000———12,00063,000———63,00017,000———17,00074,000———74,00027,000———27,000—90,000——90,000—42,000——42,000

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

12. 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 March31, 2011 and 2010.
(1) Significant components of deferred tax assets and liabilities at March 31, 2011 and 2010 were as follows:

Millions of yen
2011
2010
Deferred tax assets:
Accrued severance indemnities to employees
Accrued bonuses to employees
Impairment losses
Loss carry forward
Loss on revaluation of land
Provision for loss on disasterSocial insurance premium
Accrued enterprise tax
Asset retirement obligations
Loss on revaluation of golf club membership
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 holding gains on other securities
Other
Gross deferred tax liabilities
Net deferred tax assets

Thousands of
U.S.dollars
2011¥ 4,721
1,371
1,218
820
351
340
177
134
119
109
779
10,139
(1,467)
8,672¥ 4,825
1,390
671
1,129
351
—
159
163
—
108
779
9,575
(1,417)
8,158$ 56,777
16,488
14,648
9,862
4,221
4,089
2,129
1,611
1,431
1,311
9,369
121,936(17,643)
104,293

(979)
(58)
(14)
(311)
(1,362)¥ 7,310

(981)
—
(35)
(424)
(1,440)¥ 6,718(11,774)
(698)
(168)
(3,752)(16,392)$ 87,901(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, 2011 and 2010 were as follows:

Statutory tax rate
Adjustment:
Non-deductible expenses
Inhabitants’ per capita taxes
Non-taxable dividend income
Other
Income tax rate as a percentage of income before income taxes and minority interests

28

2011
40.6%

2010
40.6%

1.7
5.2
(0.5)
3.0
50.0%

1.1
4.0
(0.6)
3.1
48.2%

13. 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 outsourcing services, automobile maintenance and insurance agency services.
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 (Note 2).”
Profit (loss) of reportable segments is based on operating income or loss.
3. Sales, profit (loss), assets and liabilities, etc. of each reportable segment
Millions 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

12,400Adjustments andeliminations

Consolidated

Millions of yen
2010
Operating revenues:
Customers
Intersegment
Total operating revenues
Segment income (loss)
Segment assets
Other items
Depreciation
Increase in tangible andintangible fixed assets

Distribution

Trading &Commerce

OthersTotal¥ 203,746
255
204,001
5,335
145,696¥ 21,442
7,767
29,209387
8,223¥ 2,504
4,287
6,791
545
6,421

¥ 227,692
12,309240,001
6,267
160,340¥—(12,309)(12,309)
(117)
7,791

¥ 227,692—
227,692
6,150
168,131

4,455

37

135

4,627

342

4,969

3,351

22

183

3,556

1,407

4,963

Thousands of U.S. dollars
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$ 2,543,693
8,515
2,552,208
61,3001,883,752$ 320,950
103,824
424,774
6,073
96,921$ 34,287
46,73581,022
7,709
100,289$ 2,898,930
159,074
3,058,004
75,0822,080,962$—(159,074)(159,074)(1,720)51,148$ 2,898,930—
2,898,930
73,362
2,132,110

58,749782

1,972

61,503

5,725

67,228123,824

1,383

1,912

127,119

22,008149,127

29

Stock Information (As of March 31, 2011)

Notes
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 Information(1) Sales
Sales information by geographic segment is not shown because sales in Japan accounted for over 90% of operating revenue on the consolidated
statements of income.
(2) Property, plant and equipment
Property, plant and equipment information by geographic segment is not shown because property, plant and equipment in Japan accounted forover 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.

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

Tokyo, Osaka
9069
294,999,000
128,989,476
7,974
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
Number of Shares

Percentage Held

16,767,000
10,676,726
7,462,743
6,785,900
4,537,000
4,439,170
4,252,000
3,200,000
3,169,655
2,939,689

13.00%
8.28%
5.79%
5.26%
3.52%
3.44%
3.30%
2.48%
2.46%
2.28%

Number of Shareholders

Number of Shares

Percentage Held

47,433,109
1,141,324
36,340,020
10,215,749
33,859,274
128,989,476

36.77%
0.88%
28.17%
7.92%
26.25%
100.00%(Information on impairment losses in fixed assets by business segment)
Millions of yen
2011
Impairment losses

Impairment losses

Distribution¥ 451

Trading &Commerce—

Adjustments andeliminations—

Consolidated¥ 451

Distribution$ 5,424

Thousands of U.S. dollars
2011
Trading &Adjustments andCommerce
Otherseliminations———

Consolidated$ 5,424

Others—Classification by Type of Shareholder(Information on amortization of goodwill and unamortized balance by business segment)
Millions of yen
2011
Amortization of goodwill
Balance at the end of period

Amortization of goodwill
Balance at the end of period

Japan Trustee Services Bank, Ltd. (Trust Account)
Asahi Kasei Corporation
Senko Group Employee's Stockholding
Sekisui Chemical Co., Ltd.
The Master Trust Bank of Japan, Ltd.
Tokio Marine & Nichido Fire Insurance Co., Ltd.
Mitsubishi UFJ Trust and Banking Corporation
AIG Star Life Insurance Co., Ltd.
Aioi Nissay Dowa Insurance Co., Ltd.
Isuzu Motors Limited

Distribution
¥ 90
903

Trading &Commerce¥ 39
126

Adjustments andeliminations——

Consolidated
¥ 129
1,029

Distribution$ 1,082
10,860Thousands of U.S. dollars
2011
Trading &Adjustments andCommerce
Otherseliminations
$ 469
—
—
1,515
—
—

Consolidated$ 1,551
12,375

Others——Domestic financial institutions
Securities firms
Other domestic corporations
Foreign financial institutions and individuals
Individuals and others
Total

48
34
269
120
7,503
7,974

(Information on negative goodwill by business segment)
No significant items to be reported.
(Additional information)
Effective from the year ended March 31, 2011, the Companies are applying “Revised Accounting Standard for Disclosures about Segments of anEnterprise and Related information” (ASBJ Statement No. 17, March 27, 2009) and “Guidance on the Accounting Standard for Disclosures about
Segments of an Enterprise and Related Information” (ASBJ Guidance No. 20, March 21, 2009).

14. Subsequent Event
Payment of Dividends
Shareholders approved the following appropriation of retained earning at the annual meeting held on June 29, 2011

Cash dividends

30

Millions of yen¥ 629

Thousands of
U.S.dollars$ 7,565

31

Board of Directors and Corporate Auditors, Executive Officers (As of June 29, 2011)

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

Domestic and Global Network (As of April 1, 2011)

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

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

Subsidiaries (As of March 31, 2011)
Company Name
●
●
●
●
●
●
●
●
●
●

Corporate Data (As of March 31, 2011)
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

July 1946¥20,521,133,751
1-30, Oyodonaka 1-chome, Kita-ku, Osaka
March 31
317
24
3,145
19
2,080,000 square meters
7,969

Housing Distribution Sales Division, Chemicals Distribution Sales Division, Logistics Sales Division
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
Australia / Ingleburn
Singapore
Thailand / Bangkok
Unites States / Chicago, Atlanta, Los Angeles, Kentucky
Kazakhstan / Almaty

●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●

Senko Trading 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.
Sapporo Senko Transport Co., Ltd.
Hokkaido Senko Logi Service Co., Ltd.
Tohoku Senko Transport Co., Ltd.
Tohoku Senko Logi Service 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.
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
OthersOthersOthersDistribution
Distribution
Distribution
Distribution
Distribution
Distribution
Distribution
Distribution
Distribution, Others
Distribution, Others
Distribution
Distribution, Others
Distribution
Distribution
Distribution
Distribution
Distribution, Others
Distribution
Distribution
Distribution
Distribution
Distribution, Others
Distribution, Others
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.
Marufuji Co., Ltd.
Senko School Farm Tottori 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.
Guangzhou Senko Logistics Co., Ltd.
Senko International Logistics (Hong Kong) Ltd.
Qingdao Xuexing International 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
Trading and Commerce
OthersOthersDistribution
Distribution
Distribution
Distribution
Distribution
Distribution
Distribution
Distribution
Distribution
Distribution
Distribution
Trading and Commerce● : Consolidated subsidiaries

32

33