TRANSPORTA
WAREHOUSIINTERNATIO
DISTRIBUTIOCONSULTING
TRANSPORTA
WAREHOUSIINTERNATIO
DISTRIBUTIO
Annual Report 2001

For the year ended March 31, 2001

SENKO Co., Ltd.

Logistics of the Future Logistics of the Future Logisti

Profile

Established in July 1946, Senko Co., Ltd. is an integrated distribution services
company. In addition to the parent company, a total of 34 subsidiaries and 8
affiliates (as of March 31, 2001) operate under the umbrella of the Senko Group. Oneof the leading distribution services companies in Japan, Senko boasts a national
network of more than 200 offices, 2,852 trucks, 7 cargo ships, and 672,068 square
meters of warehouse space.
Listed on the first sections of the Tokyo Stock Exchange and the Osaka Securities
Exchange, the Company‘s operations cover a wide-range of businesses, centering on
its nationwide trucking network but extending to warehousing, marine transport,
railway forwarding, in-factory work, and door-to-door international transportation.
Senko specializes in supplying integrated distribution services, from distribution
consulting to system design and operations, that closely match customer needs.
The Company plans to further expand services that improve the efficiency of the
supply chain, including sourcing, production, and sales, by combining its systems
with the latest information technology. Through these and other efforts, Senko willcontinue to develop as a logistics information company.

Disclaimer Regarding Forward-Looking Statements
Forward looking statements made in this annual report concerning performance orbusiness strategies have been determined according to assumptions and beliefs
based on information available at the time and contain elements of risk anduncertainty.

Contents

Consolidated Financial Highlights
A Message from the President
Review of Operations
Truck Transport
Warehousing
In-factory Work
OthersFinancial Review
Financial Section
Report of Independent Certified Public Accountants
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Shareholders’ Equity
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Consolidated Subsidiaries and Affiliated Companies
Board of Directors and Corporate Auditors
Corporate Data

1
2
4
5
6
7
8
11
12
14
15
16
17
23
24
25

Consolidated Financial Highlights
SENKO Co., Ltd. and Consolidated Subsidiaries

Thousands of
U.S. dollars

Millions of yen
For the years ended March 31

Operating revenues

2001

2000

2001

¥185,603¥180,553$1,498,006

Operating income

5,509

6,380

44,463

Net income (loss)(3,189)(6,144)(25,738)

Total assets

151,874

151,459

1,225,779

Shareholders’ equity

40,572

44,764327,458

For the years ended March 31

2001

2000

2001

Net income (loss)(27.93)(53.02)(0.23)Cash dividends

7.50

7.50

(0.06)

355.33392.05(2.87)Yen

U.S. dollars

Per share of common stock:

Shareholders’ equity

Note : U.S. dollar amounts are converted from yen, for convenience only, at the prevailing rate of ¥123.90 to U.S.$1 on
March 31, 2001.

Operating revenues
200(Billions of yen)

Net income (loss)
2,500(Millions of yen)

Net income (loss) per share
25

2,000

20

1,500

15

1,000

10

500

5

0

0

(Yen)

150

100

50

0

97

98

99

00

01

-10,000

97

98

99

00

01

-100

97

98

99

00

01

1

A Message from the President

A Message from the President
Pressing forward with its three-year medium-term business plan, which got
under way in April 2001, the Company is aiming to boost the efficiency of
its entire supply chain in becoming an information distribution company.
Business Environment
In the first half of the fiscal year under review, the Japanese economy
showed signs of moving toward a self-sustained recovery thanks to growthin capital investment by the private sector driven by IT-related companies.
In the second half, however, a slowdown in the U.S. economy, a stock
market slump, and the stagnation in personal consumption prompted areemergence of the difficult business climate.
Facing these circumstances, Senko further sophisticated its distribution
systems by introducing its Best Partner System, a logistics system newly
developed by the Senko Group. Furthermore, the Company aggressively
worked to develop new demand as well as to achieve low cost operations.
Consequently, consolidated operating revenues increased 2.8%, to ¥185,603
million. This increase was achieved despite the decline in housing-related
business due to a cut back in housing starts because of growth in businessfrom the chain store-related market, primarily due to new customers.
Business expansion by our sales-related subsidiaries, dealing mainly inpetroleum, also contributed to the growth in operating revenues.
Consolidated operating income declined 13.7%, to ¥5,509 million under pressure from lower demand for
housing-related cargo services, price competition, and demand for more efficient transportation anddistribution services.
Consolidated loss for the fiscal year amounted to ¥3,189 million. The loss mainly resulted from otherexpenses of ¥10,391 million from writing off the difference on conversion to a new accounting standard
for severance and retirement benefits and ¥852 million from establishing a severance and retirement
benefits investment trust. Other expenses were taken to restore the Company‘s pension plan finances tohealth and to clear the way for profit improvement in the future. With the booking of these charges, thetotal amount of unfunded obligations for severance and retirement benefits has been expensed.
Business Strategies
Over the past three years beginning with the fiscal year ended March 1998, the Senko Group has reformed
its business structure by increasing the efficiency of its organization and staff, reducing its interest burden,
and reforming unprofitable offices. These efforts have met with a degree of success. Starting with thecurrent fiscal year, we have introduced a new three-year medium-term business plan that has a goodbalance of “offense and defense,” aiming to stimulate a new leap in growth through the aggressive
expansion of our businesses and to protect our competitiveness through achieving low cost operations.
The medium-term business plan addresses the issue of profits and financial structure by targeting2improvement in our various profitability indicators and by strengthening our balance sheet. In particular,
we are aiming to rebuild shareholders‘ equity, which has suffered from the impact of the write off ofseverance and retirement benefit obligations. At the same time, we want to continue to reduce interestbearing debt.
Among our strategies for business development, we are being selective and focus in our allocation ofbusiness resources, looking to further expand our business with the growing chain store-related market.
In the housing-related and petrochemical distribution markets, we are proceeding with plans to offer
services for the entire supply chain, from purchasing to delivery to end-users. Whereas previously wefocused on developing upstream business, we are now concentrating our business resources on a shift todownstream business with consumers in mind.
To increase competitiveness, we are supporting our business strategies through the introduction of theBest Partner System, a comprehensive system for managing orders, inventories, factory processes, andtransportation and delivery, and introducing more advanced IT systems.
Furthermore, to prepare for further intensification of competition and the need to cope with significant
declines in prices, we are targeting low cost operations throughout the companies of the Senko Group.
I believe that, based on the previously mentioned strategies, we should be able to get close to our record
income level by achieving consolidated operating income of ¥700 million in the fiscal year ending March
2004, the final year of the plan.
Medium-Term Business Plan Consolidated Performance Goals(fiscal year ended March 2004)
Operating Revenues: ¥182.0 billion
Operating Income: ¥7.0 billion
Shareholders‘ Equity: ¥45.5 billion
Interest-bearing Debt Reduction: ¥45.0 billion
Return on Equity: 6.6%
Return on Assets: 4.5%

To Our Shareholders
As a Company, we consider the distribution of profits to shareholders as one of our most importantmanagement issues. Accordingly, our basic dividend policy is to target stable dividend payments thatreflect underlying corporate performance while also retaining sufficient internal capital reserves toprovide for business development and strengthening our business structure.
During the fiscal year under review, we paid interim and year-end cash dividends of ¥3.75 per share for afull-year cash dividend of ¥7.50 per share.
In meeting the challenges of the current fiscal
year, we look forward to the continued support ofour shareholders.
June 2001
Hiroshi Koike
President and Representative Director

3

Review of Operations

Truck Transport
Although chain store-related business expanded firmly, demand from thehousing-related demand dropped especially in the first half andmaterials-related transportation also declined. Truck transport operating
revenues decreased 3.3%, to ¥89,054 million. Contribution to total
operating revenues declined 3.0%, to 48.0%.

Operating revenues
120(Billions of yen)100

Share of revenues

80

60

40
48.0%
20

0

4

97

98

99

00

01

The Senko Group‘s truck transport operations have developed an
extensive nationwide network, providing our customers withtransportation and delivery services that match their products anddistribution structure, including exclusive, combination, route, and joint
transport services. We transport industrial raw materials, machine
products, construction materials, housing materials, agricultural
products, general commodities as well as providing moving
service---handling almost anything to do with clothing, food, and housing.
Moreover, our fleet comprises regular trucks, large-trucks, and trailers aswell as specialty cargo trucks, such as tanker, loose powder carrying, andrefrigerated trucks. Consequently, our ability to transport items andmaterials correctly is highly evaluated by manufacturers and othercustomers.

Warehousing

Share of revenues

During the fiscal year, efforts were made to expand
sales of retail-related cargo services, but there was aslow down in cargo movement, particularly for storageof general commodities. Consequently, warehousing
operating revenues edged down 0.3%, to ¥20,503
million. The proportion of total operating revenues
accounted for by warehousing declined 0.3%, to 11.1%.
Our warehouses present a very different image from thewarehouses of the past. They are integrated function
distribution centers that combine a warehouse‘s
distribution processing functions, such as storage,
delivery, set assembly, and labeling with advanced
information system services.
Currently, we have approximately 165 facilities at our
major distribution points nationwide, with total storage
space of 672,000 square meters. Based on thesewarehousing bases, we combine information services
with distribution services that utilize a system that
anticipates the needs of our diversified customers tooffer a full range of distribution services that support
our customers‘ production and sales operations.

11.1%

Operating revenues
25(Billions of yen)

20

15

10

5

0

97

98

99

00

01

5

Review of Operations

Share of revenues

In-Factory Work

8.3%

Despite the decline in business volume from housingrelated markets, in-factory work advanced thanks to thedevelopment of new customers for in factory services.
Operating revenues climbed 2.5%, to ¥15,462 million.
The operations accounted for 8.3% of total operating
revenues, down 0.1% from the previous fiscal year.
In-factory work comprises such distribution andproduction processes as unloading raw materials at ourcustomers‘ factories, warehouses, and other sites andwrapping, packaging, and loading products. Our
professional distribution services support the
management of the flow of materials and products
within the factory.

Operating revenues
20(Billions of yen)

15

10

5

0

6

97

98

99

00

01

Others
Expanded petroleum-related sales to new customers and new business fromthe chain store-related market supported revenue growth during the fiscal
year under review, as others operating revenues rose 14.7%, to ¥60,584
million.
Contribution to total operating revenues advanced 3.4%, to 32.6% of net sales.
The others business category of the Senko Group includes railway
forwarding on trunk routes; marine transport by container, mixed cargoscheduled, and specialty ships; leasing of specialized warehouses forcustomers and warehouse space; door-to-door international freight
forwarding; petroleum sales; merchandise sales; data processing; softwaredevelopment; general leasing; and vehicle maintenance.

Share of revenues

Operating revenues
60(Billions of yen)

32.6%
50

40

30

20

10

0

97

98

99

00

01

7

Financial Review

Performance
Operating revenues for the fiscal year ended March 2001
increased 2.8%, to ¥185,603 million. Despite the decline inhousing-related business due to a cut back in housing starts,
operating revenues increased because of growth in businessfrom the chain store-related market due to our emphasis on
developing new customers. Business expansion by our salesrelated subsidiaries, dealing mainly in petroleum, also
contributed to the growth in operating revenues.

benefits and ¥852 million from establishing a severance andretirement benefits investment trust.
Consequently, despite favorable taxes adjustments of ¥4,123
million, consolidated loss amounted to ¥3,189 million.
Performance by Business Segment
Truck transport operating revenues slid ¥3,032 million, or
3.3%, to ¥89,054 million, generating 48.0% of total operating
revenues. Operating revenues decreased despite the greater
volume of cargo handled for chain stores achieved through anemphasis on developing new customers because of the drop in
housing-related cargo in the first half and a decrease in factory
volume cargo, mainly materials-related cargo.

Looking at profitability, the positive contributors to income
growth, such as increased business volume from chain stores,
the cut in personnel expenses by reducing the overall numberof employees, and the decrease in depreciation expenses
achieved by curtailing capital expenditures, were not able tocome to the fore. Instead, negative factors, such as the impactof lower demand for housing-related cargo services, thedecline in fees due to price competition, and the demand formore efficient distribution services, prevailed. As a result,operating income decreased 13.7%, to ¥5,509 million and theoperating income ratio declined 0.5%, to 3.0%.

The operating revenues of our warehousing business, which
accounted for 11.1% of total operating revenues, declined ¥68
million, or 0.3%, to ¥20,503 million. This decrease resulted
from worsening cargo movement, particularly generalcommodity cargo. Chain store-related cargo business,
however, expanded.

The Company recorded a loss before income taxes of ¥4,773
million. The loss resulted from the posting of other expenses of¥10,391 million from writing off the difference on conversion
to a new accounting standard for its severance and retirement

Accounting for 8.3% of total operating revenues, in-factory
operating revenues advanced ¥378 million, or 2.5%, to ¥15,462
million thanks to the development of new customers for infactory services.

Operating revenues

Operating income

Net income

Ratio of SG&A
expenses to operating revenues

200(Billions of yen)

(Millions of yen)

2,500

7,000

6,000

(Millions of yen)

5

(%)

2,000

150
5,000

1,500
4

4,000

1,000

100
3,000

500
2,000

50

0

8

97

98

99

00

01

0

3

0

1,000

97

98

99

00

01

-10,000

97

98

99

00

01

0

97

98

99

00

01

Consolidated Operating Revenues by Products Handled

Others operating revenues rose ¥7,772 million, or
14.7%, to ¥60,584 million, supported especially by thesubstantial growth in operating revenues frompetroleum-related sales. Others operating revenues
contributed 32.6% of total operating revenues. The
others segment comprises railway forwarding,marine transport, leasing of specialized warehouses
for customers and warehouse space, door-to-doorinternational freight forwarding, petroleum-related
sales, merchandise sales, and others.

(Units: billions of yen, %)Performance by Products Handled
The three core products types handled by theCompany are housing-related, petroleum-related andplastic, and wholesale and retail-related products. In
the fiscal year under review, they accounted for
46.8% of our operating revenues. Among these threecore product types, operating revenues fromhousing-related products decreased 5.7%, to ¥38,330
million and accounted for 20.7% of total operating
revenues. Petroleum-related and plastic operating
revenues declined 3.8%, to ¥33,110 million, andcontributed 17.8% of total operating revenues.
Operating revenues from wholesale and retailrelated products increased 13.0%, to ¥15,470 million,
accounting for 8.3% of total operating revenues.

Operating income / net
income to operating revenues
4(%)

Net income per share

40

Operating income tooperating revenues

3

30

2

20

Year ended March 2001

Year ended March 2000

Revenues

Composition

Revenues

Composition

Change% Change

Housing

40.3

21.7

41.8

23.2

-2.2

-5.4

Petroleumrelated products,
and plastics

33.1

17.8

34.4

19.1

-1.3

-3.8

Wholesaleand retail

15.4

8.3

13.6

7.6

1.7

13.0

Chemicals andfertilizers

5.4

2.9

6.0

3.3

-0.3

-6.2

Foods

4.1

2.2

4.2

2.3

0.0

-2.3

Electronics
products andmachinery

2.8

1.5

2.9

1.6

-0.1

-3.5

Textile goods

3.3

1.8

3.1

1.7

0.2

6.9

Others

80.8

43.8

74.3

41.2

7.2

8.9

Total

185.6

100.0

180.5

100.0

5.0

2.8

Cash dividends per share(Year ended March 2001)

(Yen)

(Yen)

8

Net income tooperating revenues
1

10

0

0

-5

97

98

99

00

01

100

Composition of
products handled

21.7%

Housing

17.8%

Petroleum-related products
and plastics

8.3%

Wholesale and retail

52.2%

Others

7

97

98

99

00

01

0

97

98

99

00

01

9

In housing-related products operating revenues, the drop in
housing starts strongly influenced the decline in revenues, but
the supply business for factory materials grew favorably.
Petroleum-related and plastic products operating revenues fell
because of lower volumes of plastic raw materials cargo. The
fact that a customer, a major plastic manufacturer, transferred
the business rights for its vinyl chloride business to anothercompany also contributed to the drop in petroleum-related
and plastic operating revenues. On the other hand, wholesale
and retail-related products operating revenues achieved
double-digit growth thanks to new business from a major
apparel chain store and increased business volume from major
direct sales companies, home centers and other existingcustomers.
Financial Position
Total assets at the end of the fiscal year under review wereapproximately the same as in the previous fiscal year, at¥151,874 million. Current assets increased by ¥3,137 million,
mainly because of growth in trade accounts and notes
receivable in line with the expansion in operating revenues
and higher inventories.
Fixed assets declined ¥2,647 million, to ¥99,343 million. During
the fiscal year under review, property and equipment
expanded ¥2,716 million because of the purchase of land for

Total assets

160

the construction of new facilities, such as distribution centers.
However, investments and other assets dropped ¥5,363 million
overall because of the transfer of held-to-maturity securities tothe severance and retirement benefits investment trust.
Among liabilities, current liabilities increased ¥6,388 million, to¥43,861 million. The increase can mainly be attribute toexpanded trade accounts and notes payable and short-termloans.
Among long-term liabilities, liabilities related to severance
indemnities and retirement benefits rose ¥6,782 million
because unfunded obligations arising from the change to a
new accounting standard during the fiscal year under review
were written off in a lump sum. Because retained earning was
reduced by this write off of unfunded obligations,shareholders‘ equity declined ¥4,192 million, to ¥40,572 million.
Cash FlowsNet cash provided by operating activities declined ¥2,180
million, to ¥9,876 million. As a result of maintaining capital
investment within the scope of cash flows from operating
activities, at ¥8,865 million, combined with gains on sales ofproperty, plant and equipment and stock, net cash used ininvesting activities amounted to ¥6,721 million.

Total shareholders’equity / ratio(Billions of yen)

55

(Billions of yen)(%)

ROE / ROA

35

50

30

45

25

40

20

35

15

30

10

25

5

5

(%)

4
ROE

150

3

2

140

1
ROA

130

0

10

97

98

99

00

01

0

97

98

99

00

01

0

0

-15

97

98

99

00

01

REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

To the Board of Directors of SENKO Co., Ltd.

We have examined the accompanying consolidated balance sheets of SENKO Co., Ltd. and its consolidated
subsidiaries at March 31, 2000 and 2001 and the related consolidated statements of income, shareholders' equity, andcash flows for the years then ended, all expressed in Japanese yen. Our examinations were made in accordance withauditing standards, procedures and practices generally accepted and applied in Japan and, accordingly, included
such tests of the accounting records and such other auditing procedures as we considered necessary in thecircumstances.
In our opinion, the consolidated financial statements referred to above, expressed in Japanese yen, present fairly the
consolidated financial position of SENKO Co., Ltd. and its consolidated subsidiaries at March 31, 2000 and 2001, theconsolidated results of their operations and their cash flows for the years then ended, in conformity with accounting
principles and practices generally accepted in Japan applied on a consistent basis, except for the change effective
April 1,2000, with which we concur, in the computation method of depreciation of buildings acquired before March
31, 1998 described in Note 3.
As described in Notes 2, effective April 1, 2000, the consolidated financial statements have been prepared inaccordance with new accounting standard for Retirement Benefit, Financial Instruments and Translating Foreign
Currencies.
The United States dollar amounts shown in the accompanying consolidated financial statements have been translated
solely for convenience. We have reviewed this translation and, in our opinion, the consolidated financial statements
expressed in Japanese yen have been translated into United States dollars on the basis described in Note1.

Ohtemae Audit Corporation
Osaka, Japan
June 28,2001

11

Consolidated Balance Sheets
SENKO Co., Ltd. and Consolidated Subsidiaries at March 31, 2001 and 2000
Thousands of
U.S.dollars

Millions of yen

ASSETS

2001

2000

2001

¥ 17,869¥ 17,882$ 144,221

—

638

—

177

101

1,428

25,52623,741

206,021

(63)

(42)

(508)

5,669

4,126

45,755

333

508

2,688

3,020

2,440

24,37452,53149,394423,979

501

909

4,044

1,128

9,240

9,104

144,053

140,000

1,162,655

Less accumulated depreciation(64,669)(63,332)(521,945)

Net property and equipment

79,38476,668640,710Deferred tax assets-non-current (Note 11)

9,563

5,651

77,183

Other assets

8,767

9,522

70,759—75—¥ 151,874¥ 151,459$ 1,225,779

Current assets:
Cash and cash equivalents
Marketable securities (Note 4)
Trade accounts and notes receivable —Non-consolidated subsidiaries and affiliates
OthersLess allowance for doubtful accounts
Inventories
Short-term loans to non-consolidated subsidiaries and affiliates
Prepaid expenses and other current assets
Total current assets
Investments in and long-term loans to non-consolidated subsidiaries and affiliates
Investment securities (Notes 4 and 8)
Property and equipment, at cost (Notes 5 and 8)

Translation adjustments of foreign currency financial statements

Total assets

12Thousands of
U.S.dollars

Millions of yen

LIABILITIES AND SHAREHOLDERS' EQUITY

2001

2000

2001

¥ 5,700¥ 2,755$ 46,005

7,541

8,310

60,864

158

364

1,275

19,764

16,386

159,516

Accrued expenses

3,054

2,915

24,649Accrued income taxes

1,654

832

13,349Other current liabilities

5,990

5,911

48,34543,86137,473354,003

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

46,14050,788372,397

Accrued severance indemnities (Note 7)

17,422

10,640140,613

Other long-term liabilities

3,879

7,721

31,308

Total liabilities

111,302106,622898,321—73—

Issued-114,180,167 shares

18,296

18,296

147,667

Additional paid-in capital

17,001

17,001

137,216

Retained earnings

5,275

9,467

42,57540,572

44,764327,458

(0)

(0)

(0)

40,572

44,764327,458¥ 151,874¥ 151,459$ 1,225,779

Current liabilities:
Short-term loans (Note 6)
Current portion of long-term debt (Note 6)
Trade accounts and notes payable—
Non-consolidated subsidiaries and affiliates
OthersTotal current liabilities

Minority Interests
Contingent liabilities (Note 9)
Shareholders' equity (Note 10):
Common stock, ¥50 per value
Authorised-300,000,000 shares at March 31, 2000
and 297,433,000 shares at March 31, 2001

Less: treasury stock
Total shareholders' equity
Total liabilities and shareholders' equity

See the accompanying notes to the consolidated financial statements.

13

Consolidated Statements of Income
SENKO Co., Ltd. and Consolidated Subsidiaries Years ended March 31, 2001 and 2000
Thousands of
U.S.dollars

Millions of yen

2001

2000

2001

¥ 89,054¥ 92,086$ 718,757

96,54988,467779,249

185,603

180,553

1,498,006

Truck transport

83,13484,940670,976

Others89,34581,898721,106

Selling, general and administrative expenses

7,615

7,335

61,461

Total operating costs and expenses

180,094

174,173

1,453,543

5,509

6,380

44,463

355

369

2,865

Interest expenses(1,061)(1,190)(8,563)

Others, net(9,576)(15,754)(77,288)(10,282)(16,575)(82,986)(4,773)(10,195)(38,523)

Current

2,541

1,717

20,508Deferred(4,123)(5,795)(33,277)(1,582)(4,078)(12,769)(3,191)(6,117)(25,754)

2

(27)

16

¥ (3,189)¥ (6,144)$ (25,738)

Operating revenues:
Truck transport
OthersTotal operating revenues
Operating costs and expenses:

Operating income
Other income (expenses):
Interest and dividend income

Loss before income taxes and minority interests
Income taxes (Note11):

Loss before minority interests
Minority Interests
Net lossYen

Net loss per share¥ (27.93)

U.S.dollars¥ (53.02)$ (0.23)

See the accompanying notes to the consolidated financial statements.

14

Consolidated Statements of Shareholders’ Equity
SENKO Co., Ltd. and Consolidated Subsidiaries Years ended March 31, 2001 and 2000
Thousands
Number ofshares ofcommon stock
issuedCommon stock

Additional
paid-in capital

Balance at April 1, 1999

116,747¥ 18,296¥ 17,664¥ 16,133¥ (2)Prior years’ tax effect

—

—

—

404

—

Net loss———(6,144)—

Cash dividends

—

—

—

(901)

—

Bonuses to directors and corporate auditors

—

—

—

(25)

—

Decrease of treasury stock

—

—

—

—

2

Retirement treasury stock(2,567)

—

(663)

—

—

114,180

18,29617,001

9,467(0)Increase as a result of merger

—

—

—

24

—

Net loss———(3,189)—Cash dividends

—

—

—

(856)

—

Bonuses to directors and corporate auditors

—

—

—

—

—

Increase of treasury stock

—

—

—

—

(0)

Decrease in translation adjustments of foreign currency financial statements

—

—

—

(171)

—

114,180¥ 18,296¥ 17,001¥ 5,275¥ (0)Balance at March 31, 2000

Balance at March 31, 2001

Millions of yen
Retainedearnings

Treasury Stock

Thousands of U.S. dollars

Common stock

Additional
paid-in capital$ 147,667$ 137,216$ 76,408$ (0)Increase as a result of merger

—

—

194

—

Net loss——(25,738)—

Cash dividends——(6,909)—Bonuses to directors and corporate auditors

—

—

—

—

Increase of treasury stock

—

—

—

(0)

Decrease in translation adjustments of foreign currency financial statements——(1,380)—$ 147,667$ 137,216$ 42,575$ (0)Balance at March 31, 2000

Balance at March 31, 2001

Retainedearnings

Treasury Stock

See the accompanying notes to the consolidated financial statements.

15

Consolidated Statements of Cash FlowsSENKO Co., Ltd. and Consolidated Subsidiaries Years ended March 31, 2001 and 2000
Thousands of
U.S.dollars

Millions of yen

Cash flows from operating activities:
Loss before income tax and minority interests
Adjustments for:
Depreciation and amortization
Amortization of transitional obligation for employees’ severance indemnities
Retirements benefit trust loss
Decrease in employees’ past severance indemnities
Provision for accrued severance indemnities
Interest and dividends income
Interest expense
Equity in loss of affiliated companies
Write-down of marketable securities
Devaluation of land
Write-off of investment securities
Increase in trade receivable
Increase in inventories
Increase in trade payable
Increase in long term accrued expenseOther
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 marketable securities
Proceeds from sales of marketable securities
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 for long-term loans receivable
Other
Net cash used in investing activities
Cash flows from financing activities:
Increase in short-term dept, net
Proceeds from long-term debt
Repayments of long-term debt
Purchases of treasury stock retired
Dividends paid
Other
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents increased by merger
Cash and cash equivalents at end of year

2001

2000

¥ (4,773)¥ (10,195)$ (38,523)

6,903
10,391852(3,243)
—
(355)
1,061
—
—
851
500
(1,884)(1,543)3,322—
217
12,299351(1,049)(1,725)
9,876

7,771
—
—
—
6,202
(369)
1,190
283
1,221
—
—
—
(428)
529
7,113
1,517
14,834374(1,176)(1,976)
12,05655,714
83,866
6,877(26,174)—(2,865)
8,563
—
—
6,868
4,036
(15,206)(12,454)
26,812—
1,752
99,266
2,833(8,467)(13,923)
79,709——(8,865)
1,165
(758)
1,033
—
704
(6,721)(92)
141(5,496)
114
—
91
(388)
(110)
(5,740)——(71,550)
9,403(6,118)
8,337
—
5,683
(54,245)

2,945
2,898
(8,315)—(856)(0)(3,328)4(169)
17,882156¥ 17,869—
8,231(13,132)
(662)
(901)
(29)
(6,493)61(116)
17,998—¥ 17,882

23,76923,390(67,110)—(6,909)(0)(26,860)
32(1,364)
144,326
1,259$ 144,221

2001

See the accompanying notes to the consolidated financial statements.

16

Notes to the Consolidated Financial Statements
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 Commercial Code of Japan (the “Code”) and the Securities and Exchange Law and in conformity with accounting principles and practices
generally accepted in Japan, which are different from the accounting and disclosure requirements of International Accounting Standards.
The Company’s overseas subsidiary maintains its accounts and records in conformity with generally accepted accounting principles andpractices prevailing in the country of its domicile.
The accompanying consolidated financial statements are prepared based on 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 Securities and Exchange Law.
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 the Japanese yen amounts into U.S. dollars is included solely for the convenience of the reader, using the exchange rate
prevailing at March 31, 2001, which was ¥123.90 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-consolidation of subsidiaries, whose combined assets, net sales, net income and retained earnings
in the aggregate are not significant in relation to those of the consolidated with the Companies.
Adjustment for consolidated account, at the time of acquisition, between the cost and underlying net equity of investments in consolidated
subsidiaries are amortized over a five-year period on straight-line method.
The Company has adopted the equity method of accounting for investments in significant affiliates. The investments in other insignificant
unconsolidated subsidiaries and affiliates are stated at cost.
(b) Marketable and Investment Securities
Through March 31, 2000, Marketable securities were stated at lower of cost or market. Investment securities, except for those accounted for by
the equity method, were carried at cost determined by the moving average method.
Effective April 1, 2000, the Companies adopted the Accounting Standards for Financial Instruments which issued by the Business Accounting
Deliberation Council. In accordance with the new standards, securities are classified into three categories: trading securities, held-to-maturity debt
securities, equity investments in associates and other securities. Based on this classification, the Companies have no trading securities and no heldto-maturity debt securities. All other securities have been included in investment securities as noncurrent assets. Other securities are stated at cost
determined by the moving average method.
(c) Consolidated Statement of Cash Flows
In 2000, the Companies adopted the Accounting Standards for Consolidated Statement of Cash Flows, which was issued by BusinessAccounting Deliberation Council. For the purpose of cash flow statements, cash and cash equivalents comprise cash in hand, deposits held at callwith banks, net of overdrafts and all highly liquid investments with maturities of three months or less.
(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 andan evaluation of potential losses in the receivables outstanding.

(e) Inventories
Purchased goods are stated at cost determined by the first-in first-out method. Supplies are stated at cost determined by themoving-average cost method. Real estate for sale is stated at cost determined by the specific cost method.
(f) Property and Equipment and Depreciation
Property and equipment are stated at cost. Depreciation is principally computed at rates based on the estimated useful lives of assets using thedeclining-balance method except for buildings for which the straight-line method is applied.
The principal estimated useful lives are as follows:
Buildings and structures
3 to 60 years
Machinery and equipment 3 to 17 years(g) Accrued Severance Indemnities and Pension Plan
Effective April 1, 2000, the Companies adopted the Accounting Standards for Retirement Benefit which was issued by the Business Accounting
Deliberation Council. In accordance with the new standards, accrued severance indemnities are provided based on the account of projected
benefit obligation reduced by pension plan assets at fair value at the end of annual period.
Employees’ retirement benefits, covering employees of the Company and certain consolidated subsidiaries, are provided through unfunded
lump-sum benefit plans and funded noncontributory pensions plans.
Under the plans, eligible employees are entitled, under most circumstances, to severance payments based on compensation at the time ofseverance and years of service.
In addition, the Company and certain consolidated subsidiaries have a contributory funded pension plan for most employees.

17

The Company and 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.
(h) 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.
(i) Appropriation of Retained Earnings
Cash dividends, transfers to legal reserve and bonuses to directors and corporate auditors are recorded in the financial year in which a
proposed appropriation of retained earnings is approved by shareholders.
(j) Net Income Per Share
Net income per share is based on the weighted average number of shares of common stock outstanding during the relevant year.
(k) Translation of Foreign Currencies
Revenue and expenses are translated at the rate of exchange prevailing when transactions are made.
Through March 31, 2000, Current monetary assets and liabilities denominated in foreign currencies were translated into Japanese yen at the rateof exchange in effect at the balance sheet date. Long term monetary assets and liabilities denominated in foreign currencies were translated at thehistorical exchange rate.
Effective April 1, 2001, the Companies adopted the revised accounting standards for foreign currency transactions which issued by the BusinessAccounting Deliberation Council. In accordance with the revised standards, all monetary assets and liabilities denominated in foreign currencies
are translated into Japanese yen at the exchange rate at the balance sheet date.
Assets and liabilities of foreign subsidiary are translated into Japanese yen at the exchange rates in effect on the respective balance sheet dates.
Revenue and expenses are translated at the average rate of exchange for the respective years. Translation adjustments of foreign currency financial
statements in 2000 are not included in the determination of net income and are reflected in the consolidated balance sheets.
(l) Consumption Tax
The consumption tax is not included in the amount of “Operating revenues” and “Operating costs” and expenses.
3. Accounting Change
Depreciation method for buildings
Through March 31, 2000, the computation method of depreciation of buildings was the straight-line method except that the declining-balancemethod was applied to the buildings acquired before March 31, 1998.
Effective April 1, 2000, the computation method of depreciation for the buildings acquired before March 31, 1998, has been changed to thestraight-line method from the declining-balance method.
Due to this change, depreciation and loss before income taxes and minority interests for the year ended March 31, 2001 were decreased by ¥626
million ($5,052 thousand) and increased by ¥625 million ($5,044 thousand), respectively.

4. Marketable Securities and Investment Securities:
At March 31, 2001 and 2000, marketable securities consisted of the following:—

Marketable equity securities
Bonds and otherMarket value of marketable equity securities

Millions of yen
2001
2000
¥—
¥ 635
—
3
¥—
¥ 638
¥—
¥ 843

Thousands of
U.S.dollars
2001
$—
—
$—
$—

Millions of yen
2001
2000
¥ 521
¥ 8,144
466
455
141
641
¥ 1,128¥ 9,240¥ 1,091¥ 7,834

Thousands of
U.S.dollars
2001$ 4,205
3,761
1,138$ 9,104$ 8,805

At March 31,2001 and 2000,investment securities consisted of the following:—

Marketable equity securities
Other equity securities
Bonds and otherMarket value of marketable equity securities

185. Property and Equipment:
At March31, 2001 and 2000, 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 ProgressMillions of yen
2001
2000
¥ 34,475¥ 31,883
63,00461,511
24,68325,05021,35821,463533
93¥ 144,053¥ 140,000

Thousands of
U.S.dollars
2001$ 278,248
508,507
199,217
172,381
4,302$ 1,162,655

Millions of yen
2001
2000
¥ 5,700¥ 2,755

Thousands of
U.S.dollars
2001$ 46,005

Millions of yen
2001
2000
¥ 45
¥ 45
13,837
13,837
10,00010,00010,00010,000Thousands of
U.S.dollars
2001
$ 363
111,679
80,71080,7106. Short-term Loans and Long-term Debt:
At March31, 2001 and 2000, short-term loans consisted of the following:—

1.375% to 3.125% unsecured loans from banks

At March 31, 2001 and 2000,long-term debt consisted of the following:—

2.30% mortgage convertible bonds due 2002
0.45% convertible bonds due 2003
3.25% bonds due 2004
2.025% bonds due 2002
1.2% to 2.995% loans from banks and insurance companies:
SecuredUnsecured

6,631
13,16853,681(7,541)¥ 46,140

Less current portion

7,400
17,81659,038(8,310)¥ 50,788

53,519106,280
433,261(60,864)$ 372,397

In August 1987,the Company issued ¥5,000 million principal amount of 2.3 per cent. mortgage convertible bonds due 2002. At April 1, 2001,
holders of the bonds were entitled to convert such bonds into 82 thousand shares of common stock of the Company. The bonds are convertible atany time before September 27, 2002 at a conversion price of ¥ 545.90 per share.
In April 1996,the Company issued ¥15,000 million principal amount of 0.45 per cent. convertible bonds due 2003. At April 1, 2001, holders of thebonds were entitled to convert such bonds into 21,520 thousand shares of common stock of the Company. The bonds are convertible at any time
before September 29, 2003 at a conversion price of ¥697 per share.
The annual maturities of long-term debt at March 31, 2001 for the next five years are as follows:—
Year ending
March 31
2002
2003
2004
2005
2006

Millions of yen¥ 7,541
19,85915,492
10,789—Thousands of
U.S.dollars$ 60,864
160,283
125,036
87,078—19

7. Accrued Severance Indemnities:
The following tables sets forth the changes in benefit obligation, plan assets and funded status of the Company and its subsidiaries at March 31,
2001.
Thousands ofMillions of yen
U.S.dollars
2001
2001
Benefit obligation at the end of year
¥ (55,806)$ (450,412)
Fair value of plan assets at the end of the year
32,706
263,971
Funded status:(23,100)(186,441)
Benefit obligation in excess of plan assets
Unrecognized net transition obligation at date of adoption——
Unrecognized prior service cost——
Unrecognized actuarial loss
5,678
45,828
Accrued pension liability recognized in the consolidation balance sheets¥ (17,422)$ (140,613)
Severance and pension costs of the Company and its subsidiaries included the following components for the year ended
March 31, 2001

Service cost
Interest cost
Expected return on plan assets
Amortization:
Transition obligation at date of adoption
Prior service cost (credit)
Actuarial losses
Net periodic benefit cost

Millions of yen
2001¥ 1,918
1,942(1,399)Thousands of
U.S.dollars
2001$ 15,480
15,674(11,291)

10,391(3,243)—¥ 9,609

83,866(26,174)—$ 77,555

Assumption used in the accounting for the defined benefit plans for the year ended March 31, 2001 is as follows:
Method of attributing benefit to periods of service
Discount rateLong-term rate of return on fund assets
Amortization period of transition obligation at date of adoption
Amortization period of prior service cost
Amortization period of actuarial losses

straight-line basis
3.5%
primarily 4.8%
1year
1year
14 years

8. Pledged Assets:
The following assets were pledged as collateral as at March 31, 2001 and 2000:—

Land
Buildings
VehiclesInvestment securities
Lease receivables

Millions of yen
2001
2000
¥ 5,483¥ 5,514
3,034
3,186
3
6
10
10
7,945
9,842
¥ 16,475¥ 18,558

Thousands of
U.S.dollars
2001$ 44,253
24,48724
81
64,124$ 132,969

Millions of yen
2001
2000
¥ —
¥ 550
¥ 6,676¥ 7,445

Thousands of
U.S.dollars
2001$ —$ 53,882

Obligations which were secured on the above assets were as follows:—

Short-term loans
Long-term deb, including carrent portion20

9. Commitments and Contingent Liabilities:
At March 31, 2001, the Companies were contingently liable for trade notes discounted with banks and for guarantees of loans to nonconsolidated subsidiaries and affiliates in the amounts of ¥3,000 million ($24,213 thousand) and ¥77 million ($621 thousand), respectively.
The Companies have entered into various rental and lease agreements for office spaces, housing for employees and warehouses which are
generally cancelable upon a few months’ notice and also non-cancelable lease agreements for computer equipment, telecopiers, pallets, forklifts,
trucks, flexible bags and other equipment. Such rent and lease charges for the year ended March 31, 2001 amounted to ¥12,023 million ($97,038
thousand).
The aggregate annual lease expenses for the non-cancelable lease agreements for the next five years are as follows:—
Year ending
March 31
2002
2003
2004
2005
2006 and thereafter

Millions of yen¥ 1,540
1,179
910
501
254

Thousands of
U.S.dollars$ 12,429
9,516
7,345
4,044
2,050

10. Shareholders’ Equity
The Code provides that an amount equal to at least 10% of appropriations paid in cash be transferred to the legal reserve until such reserve
equals 25% of stated capital. This reserve amounted to ¥1,463 million ($11,808 thousand) and 1,377 million and at March 31, 2001 and 2000,
respectively. This reserve, included in retained earnings, is not available for distribution as dividends but may be used to reduce a deficit or betransferred to stated capital.

11. Income Taxes
The Company and its domestic subsidiaries are subject to several taxes based on income, which in the aggregate resulted in statutory tax rates
of approximately 42.0% for the years ended March 31, 2001 and 2000.
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets at March 31, 2001 and 2000 are presented
below:
Thousands ofMillions of yen
U.S.dollars
2001
2000
2001
Deferred tax assets:
Accrued severance indemnities to employees¥ 9,067¥ 6,024$ 73,180
Accrued bonuses to employees
597
422
4,818
Revaluation of land
580
—
4,681
Retirement benefit trust loss
358
—
2,889
Unrealized gain on fixed assets and others
290
788
2,341
Tax loss carryforwards
205
—
1,655
Accrued severance indemnities to directors and corporate auditors
151
—
1,218
Accrued enterprise tax
138
—
1,114
Other
284
427
2,293
Total gross deferred tax assets
11,6707,661
94,189Less valuation allowance
(78)
(173)
(630)
Net deferred tax assets
11,592
7,488
93,559Deferred tax liabilities:(1,033)(1,035)(8,337)
Property and equipment
Other
(235)
(254)
(1,897)
Total gross deferred tax liabilities(1,268)(1,289)(10,234)
Net deferred tax assets¥ 10,324¥ 6,199$ 83,325

12. Subsequent Events:
Shareholders approved the following appropriation of retained earning at the annual meeting held on June 28, 2001

Cash dividends
Transfer to legal reserve

Millions of yen
¥ 428
¥ 43

Thousands of
U.S.dollars$ 3,454$ 347

21

13. Segment Information
Business segment information of the Company and its consolidated subsidiaries for the years ended March 31, 2001 and 2000 issummarized as follows:
Millions of yen

2001
Truck
Transport

Warehousing

In-factory
works

Other

Total

Elimination or
Corporate Consolidated

a. Operating revenues and operating income:Customers¥ 89,054
Intersegment
2,355
Total operating revenues
91,409Operating costs and expenses
88,736
Operating income¥ 2,673¥ 20,503
117
20,62019,618¥ 1,002¥ 15,462
3,054
18,516
17,526¥ 990¥ 60,584
8,796
69,38068,524¥ 856¥ 185,603
14,322
199,925
194,404¥ 5,521¥—(14,322)(14,322)(14,310)¥ (12)¥ 185,603—
185,603
180,094¥ 5,509b. Asset, depreciation and capital expenditures:
Assets¥ 34,689
Depreciation
1,132
Capital expenditures962¥ 37,876
1,200
1,201

¥ 8,489
175
127¥ 53,868
4,339
9,052

¥ 134,922
6,846
11,342¥ 16,952
58
542¥151,8746,904
11,884

Millions of yen

2000
Truck
Transport

Warehousing

In-factory
works

Other

Total

Elimination or
Corporate Consolidated

a. Operating revenues and operating income:Customers¥ 92,086
Intersegment
2,277
Total operating revenues
94,363Operating costs and expenses
90,600Operating income¥ 3,763¥ 20,571
120
20,691
20,115¥ 576¥ 15,084
2,669
17,753
16,692¥ 1,061¥ 52,812
8,461
61,27360,355¥ 918¥ 180,553
13,527
194,090
187,762¥ 6,318¥—(13,527)(13,527)(13,589)¥ 62¥ 180,553—
180,553
174,173¥ 6,380b. Asset, depreciation and capital expenditures:
Assets¥ 33,532
Depreciation
1,233
Capital expenditures
1,040¥ 38,083
1,689
1,233

¥ 7,765
217
113¥ 44,969
4,551
3,171

¥ 124,349
7,690
5,557

¥ 27,110
81
152¥ 151,459
7,771
5,709

Thousands of U.S. dollars

2001
Truck
Transport

Warehousing

In-factory
works

Other

Total

a. Operating revenues and operating income:Customers$ 718,757
Intersegment
19,007
Total operating revenues
737,764
Operating costs and expenses
716,190
Operating income$ 21,574$ 165,480
944
166,424
158,337$ 8,087$ 124,794
24,649149,443
141,453$ 7,990$ 488,975
70,993559,968
553,059$ 6,909$ 1,498,006
115,593
1,613,599
1,569,039$ 44,560$—(115,593)(115,593)(115,496)$ (97)$ 1,498,006—
1,498,006
1,453,543$ 44,463

b. Asset, depreciation and capital expenditures:
Assets$ 279,976
Depreciation
9,136
Capital expenditures
7,764$ 305,698
9,685
9,693

$ 68,515
1,412
1,025

$ 434,770
35,02073,059$ 1,088,959
55,25391,541$ 136,820
469
4,375

$ 1,225,779
55,722
95,91622

Elimination or
Corporate Consolidated

Consolidated Subsidiaries and Affiliated Companies (As of March 31, 2001)

Company Name

Paid-in
CapitalEquityOwnership

Location

Main Business

SENKO TRADING Co., Ltd.

¥300 million

100.0%

Tokyo

Sales of petroluem-related products anddistribution and information processing
equipment

SENKO LEASING Co., Ltd.

¥350 million

100.0%

Tokyo

General leasing

SENKO INFORMATION SYSTEM Co., Ltd.

¥60 million

100.0%

Osaka

Information processing

KANSAI SENKO AUTO MAINTENANCE Co., Ltd.

¥40 million

100.0%

Osaka

Vehicle maintenance

SENKO MOVING PLAZA Co., Ltd.

¥60 million

100.0%Tokyo

Trucking, in-factory work, moving services

SAPPORO SENKO TRANSPORT Co., Ltd.

¥30 million

100.0%

SapporoTrucking

TOHOKU SENKO TRANSPORT Co., Ltd.

¥30 million

100.0%

MiyagiTrucking, in-factory work

KANTO SENKO TRANSPORT Co., Ltd.

¥90 million

100.0%

SaitamaTrucking, in-factory work

TOKYO SENKO TRANSPORT Co., Ltd.

¥10 million

100.0%

Chiba

Trucking, in-factory work

CHIBA SENKO TRANSPORT Co., Ltd.

¥30 million

100.0%

Chiba

Trucking, in-factory work, vehicle maintenance

FUJI SENKO TRANSPORT Co., Ltd.

¥30 million

100.0%

Shizuoka

Trucking, in-factory work

TOKAI SENKO TRANSPORT Co., Ltd.

¥30 million

100.0%

Aich

Trucking, in-factory work

SHIGA SENKO TRANSPORT Co., Ltd.

¥30 million

100.0%

Shiga

Trucking, in-factory work, vehicle maintenance

OSAKA SENKO TRANSPORT Co., Ltd.

¥50 million

100.0%

Osaka

Trucking, in-factory work

OKAYAMA SENKO TRANSPORT Co., Ltd.

¥30 million

100.0%OkayamaTrucking, in-factory work

SANKYO FREIGHT Co., Ltd.

¥10 million

100.0%

Hiroshima

Trucking, in-factory work

SANYO SENKO TRANSPORT Co., Ltd.

¥20 million

100.0%

Yamaguchi

Trucking, in-factory work

SHIKOKU REEFER TRANSPORT AND
WAREHOUSING Co., Ltd.

¥50 million

100.0%

KagawaTrucking, warehousing

FUKUOKA SENKO TRANSPORT Co., Ltd.

¥50 million

100.0%

FukuokaTrucking

KUMAMOTO SENKO TRANSPORT Co., Ltd.

¥25 million

100.0%

Kumamoto

Trucking, in-factory work

MIYAZAKI SENKO TRANSPORT Co., Ltd.

¥90 million

100.0%

Miyazaki

Trucking, in-factory work, vehicle maintenance

SAITAMA SENKO APOLLO Co., Ltd.

¥50 million

100.0%

Saitama

In-factory work, vehicle maintenance

OSAKA KAIUN Co., Ltd.

¥20 million

30.0%

Osaka

Domestic marine transport

ASICS PHYSICAL DISTRIBUTION CORPORATION¥300 million

20.0%

Hyogo

Product control, vehicle shipment agency

23

Board of Directors and Corporate Auditors (As of June 28, 2001)

Chairman and Representative Director
Eiji Baba

President and Representative Director
Hiroshi Koike

Chairman and Representative Director
Eiji Baba

Vice-president and Representative Director
Akio Tanaka

Full-time Corporate Auditors
Masahiro Hayashi
Saburo Takahashi

President and Representative Director
Hiroshi Koike
Vice-president and Representative Director
Akio Tanaka
Managing Directors
Yasuhisa Fukuda
Isao Kagi
Yasuyuki Kiyomiya
Directors
Yoshio Ikeda
Sadayuki Wada
Michiyoshi Tsuge
Tadao Ito
Kazuo Saga
Kazuo Goto
Tetsuo Hatano
Isao Suzuki

24

Hideo Asano
Corporate Auditor
Hideyuki Tonomura

Corporate Data (As of March 31, 2001)

Date of Establishment:

July 1946

Paid-in Capital:¥18,295,643,751

Authorized Shares:

297,433,000

Outstanding Shares:

114,180,167

Number of Shareholders: 9,475
Stock Listing:Tokyo Stock Exchange
Osaka Securities Exchange

Transfer Agent:

The Mitsubishi Trust and Banking Corporation
11-1, Nagata-cho 2-chome, Chiyoda-ku, Tokyo 171-8508, Japan

Network:(As of August 1, 2001)

Represents Branches
and Departments

Chubu Business Division

Kyushu Business Division

Branches:

No. 1 Sales Division
Logistics Sales Division
Kanto Business Division

Head Office
No. 2 Sales Division
Kansai Business Division

Sapporo, Sendai, Ibaraki, Kita Kanto, Saitama, Kashiwa, Tokyo, Kanagawa, Chiba, Shizuoka East,
Shizuoka West, Nagoya, Mie, Hokuriku, Keiji, Osaka, Okayama, Yamaguchi, Fukuoka, Nobeoka

Departments:

International Distribution, Marine Transport, Railway forwarding

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SENKO Co., Ltd.
Umeda Sky Bldg., Tower West, 1-30, Oyodonaka 1-chome, Kita-ku, Osaka 531-6115, Japan
Tel: 06-6440-5155 Fax: 06-6440-5175
URL http: //www.senko.co.jp/
Printed in Japan