SENKO Group Holdings Co., Ltd.
November 6, 2020 SENKO Group Holdings Co., Ltd. Stock Listed on: The First Section of the Tokyo Stock Exchange URL https://www.senkogrouphd.co.jp/en/ 9069 Title: President and Representative Director Name: Yasuhisa Fukuda Title: Executive Officer, Responsible for PR & IR Name: Satoru Kokubo Tel. (03) 6862-8842 November 13, 2020 Scheduled Date of Dividend Paid: December 3, 2020 Yes Scheduled Date of Issue of Quarterly Financial Report: Quarterly Supplemental Information Materials: Yes (for analysts) Quarterly Information Meeting: (Amounts less than ¥1 million have been rounded down) 1. Consolidated Operating Results for the Six Months Ended September 30, 2020 (1) Consolidated Operating Results (Cumulative)
Six months ended September 30, 2020: ¥6,165 million (-3.8%) Six months ended September 30, 2019: ¥6,406 million (6.2%)
As of September 30, 2020: ¥129,427 million As of March 31, 2020: ¥125,158 million
3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2021 (From April 1, 2020 to March 31, 2021) (Percentage figures represent year-on-year changes)
Notes (1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries associated with change in scope of consolidation): None (2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements: None (3) Changes in accounting principles and estimates, and retrospective restatement (a) Changes due to revision of accounting standards: None (b) Changes other than in (a): None (c) Changes in accounting estimates: None (d) Retrospective restatement: None (4) Shares outstanding (Common shares) (a) Shares outstanding (including treasury shares) As of March 31, 2020: 152,861,921 shares As of September 30, 2020: 152,952,221 shares (b) Treasury shares As of September 30, 2020: 898,113 shares 823,706 shares As of March 31, 2020: (c) Average number of shares (Cumulative) Six months ended September 30, 2019: Six months ended September 30, 2020:   152,031,426 shares 151,909,767 shares (Note)  Starting with the third quarter of the fiscal year ended March 31, 2018, the number of treasury shares at term-end includes Senko shares owned by the trust accounts of Performance-linked Stock Compensation Plan for Employees (as of September 30, 2020: 342,540 shares; as of March 31, 2020: 348,880 shares) and Performance-linked Stock Compensation Plan for Directors (as of September 30, 2020: 348,873 shares; as of March 31, 2020: 352,988 shares). Quarterly financial results reports are exempt from quarterly reviews conducted by certified public accountants or an audit corporation. Cautionary statement regarding forecasts of operating results and special notes Forward-looking statements in these materials are based on information available to management at the time this report was prepared and assumptions that management believes are reasonable. Actual results may differ significantly from these statements for a number of reasons. For information about the assumptions used for forecasts and precautions concerning the use of forecasts, please see “Forecast for the full-term of the fiscal year ending March 31, 2021” on page 3. • The supplementary material on quarterly earnings will be available on the Company's website.

1.
Results of Operations and Financial Condition
(1)  Results of operations In the six-month period of the fiscal year ending March 31, 2021 (April 1, 2020 to September 30, 2020), the economic environment has continued to maintain an uncertain outlook with still no clear timeline for the end of the novel coronavirus disease (COVID-19) despite the gradual resumption of economic activity following the lifting of the state of emergency. The six-month-period performance was as follows.
Consolidated operating revenue for the six-month period ended September 30, 2020 of the current fiscal year decreased ¥8,621 million year on year to ¥273,449 million, with the Logistics and Others businesses being significantly affected by COVID-19 pandemic. In terms of profits, as a result of group-wide efforts to expand sales, reduce expenses, improve cost efficiency and increase productivity, operating profit increased year on year for the July-September quarter. However, the negative impact on profit of the April-June quarter was significant and caused consolidated operating profit, consolidated ordinary profit and profit attributable to owners of parent for the six- month period to all decrease year on year. The six-month-period operating revenue by segment was as follows. Logistics
Although there was an increase in cargo volume for discount stores, drugstores and other chain stores, the COVID-19 pandemic caused a significant decrease in the volume for fashion-related industry, housing-related industry, chemical-related industry, and frozen and refrigerated cargo for school lunch and restaurant industry, and as a result, operating revenue decreased ¥8,130 million year on year to ¥188,068 million. Despite efforts to expand sales, reduce expenses, improve cost efficiency and increase productivity, segment income decreased ¥249 million year on year to ¥8,559 million.
Trading & commerce

Operating revenue decreased to ¥77,534 million, down ¥369 million year on year primarily due to decreased fuel sales. On the other hand, segment income increased ¥465 million year on year to ¥1,461 million due to adjustment to the sales price of household paper and increased sales of daily necessities associated with increased demand for home deliveries. Others
Due to the spread of COVID-19, the number of customers decreased significantly at hotels, fitness gyms, day-service nursing care facilities, restaurants, etc., and operating revenue decreased ¥120 million year on year to ¥7,846 million, while segment income fell ¥932 million year on year to record a segment loss of ¥26 million.
(2)  Financial condition
1)   Assets, liabilities and net assets Total assets Total assets as of September 30, 2020 were ¥376,877 million, ¥20,568 million higher than at the end of the previous fiscal year. Current assets amounted to ¥141,621 million, up ¥17,410 million from the end of the previous fiscal year. This was mainly due to increases of ¥7,578 million in cash and deposits and ¥9,999 million in securities. Non-current assets totaled ¥234,610 million, up ¥3,225 million from the end of the previous fiscal year. This was primarily due to increases of ¥7,232 million in property, plant and equipment and ¥1,110 million in intangible assets, despite a decrease of ¥5,116 million in investments and other assets.
Liabilities
Liabilities as of September 30, 2020 increased ¥16,273 million from the end of the previous fiscal year to ¥238,400 million. Current liabilities totaled ¥96,763 million, down ¥14,874 million from the end of the previous fiscal year. This was mainly due to decreases of ¥2,313 million in trade notes and accounts payable and ¥10,897 million in short-term borrowings. Non-current liabilities totaled ¥141,636 million, up ¥31,147 million from the end of the previous fiscal year. This was mainly attributable to increases of ¥19,976 million in bonds payable and ¥11,845 million in long-term borrowings.
Net assets
Net assets as of September 30, 2020 rose ¥4,295 million from the end of the previous fiscal year to ¥138,476 million. This was primarily due to increases of ¥3,792 million in retained earnings and ¥595 million in valuation difference on available-for-sale securities. The equity ratio as of September 30, 2020 decreased by 0.8 percentage points to 34.3% from the end of the previous fiscal year.
2)   Cash flows
Cash and cash equivalents as of September 30, 2020 increased by ¥17,048 million from the end of the previous fiscal year to ¥44,190 million. Net cash provided by operating activities amounted to ¥10,662 million. This was mainly due to profit before income taxes of ¥9,457 million, depreciation of ¥8,337 million, and an increase in cash due to a decrease in trade receivables of ¥3,860 million, despite a decrease in cash due to an increase in inventories of ¥1,659 million, a decrease in cash due to a decrease in trade payables of ¥2,947 million, a decrease in cash due to a decrease in accrued consumption taxes of ¥985 million, a decrease in cash due to an increase in consumption taxes refund receivable of ¥535 million, and income taxes paid of ¥4,684 million. Net cash used in investing activities totaled ¥10,153 million. This was mainly due to purchase of property, plant and equipment of ¥8,970 million and purchase of shares of subsidiaries resulting in change in scope of consolidation of ¥776 million. Net cash provided by financing activities totaled ¥15,671 million. This was mainly due to proceeds from long-term borrowings of ¥13,161 million and proceeds from issuance of bonds of ¥20,000 million, despite net decrease in short-term borrowings of ¥4,110 million, repayments of long-term borrowings of ¥9,097 million, repayments of finance lease obligations of ¥2,098 million and dividends paid of ¥1,983 million. (3)  Forecast for the full-term of the fiscal year ending March 31, 2021 No revisions have been made to the forecast of consolidated operating results for the fiscal year ending March 31, 2021, announced in “Summary of Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2021” on August 11, 2020.
2.
Consolidated Financial Statements

(2) Consolidated statements of (comprehensive) income
(Consolidated statements of income)

(Consolidated statements of comprehensive income)