This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document SENKO Group Holdings Co., Ltd.
August 10, 2023
SENKO Group Holdings Co., Ltd. Stock Listed on: 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 Scheduled Date of Issue of Quarterly Financial Report: Quarterly Supplemental Information Materials: Quarterly Information Meeting: August 14, 2023 Yes None Scheduled Date of Dividend Paid: – 1. Consolidated Operating Results for the Three Months Ended June 30, 2023 (1) Consolidated Operating Results (Cumulative) (Amounts less than ¥1 million have been rounded down)
Three months ended June 30, 2023: ¥6,229 million (−1.4%) Three months ended June 30, 2022: ¥6,318 million (47.2%)
As of June 30, 2023: ¥163,896 million As of March 31, 2023: ¥160,510 million
3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2024 (From April 1, 2023 to March 31, 2024)
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 June 30, 2023: (b) Treasury shares As of June 30, 2023:
(c) Average number of shares (Cumulative) Three months ended June 30, 2023: 149,321,726 shares Three months ended June 30, 2022: 148,956,748 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 June 30, 2023: 334,566 shares; as of March 31, 2023: 334,566 shares) and Performance-linked Stock Compensation Plan for Directors (as of June 30, 2023: 316,723 shares; as of March 31, 2023: 316,723 shares). In addition, starting with the fourth quarter of the fiscal year ended March 31, 2023, the number of treasury shares at term-end includes Senko shares owned by the employee shareholding association support trust ESOP (as of June 30, 2023: 4,930,000 shares; as of March 31, 2023: 5,255,100 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 first half period and the full-term of the fiscal year ending March 31, 2024" 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 three-month period of the fiscal year ending March 31, 2024 (April 1, 2023 to June 30, 2023), although economic activities have been normalizing after the infectious disease classification of COVID-19 was changed to Class 5, the outlook for the economic environment overall continues to be unclear with the protraction of the Ukraine situation and an increasingly frugal mindset due to the rising price of goods. The three-month-period performance was as follows.
Despite facing the impact of declining cargo movements in logistics, along with rising purchase prices and the like, owing to group-wide efforts to expand sales and revise tariffs and prices, along with the effect of promoting M&A, the Group achieved year-on-year increases in operating revenue, operating profit, ordinary profit and profit attributable to owners of parent. The three-month-period operating revenue by segment was as follows.
Logistics

Notwithstanding a focus on sales expansion and initiatives to address tariff revisions, together with the contribution of revenue from M&A, the impact of declining cargo movements was significant. As a result, operating revenue increased ¥4,258 million year on year to ¥120,215 million, and segment income fell ¥154 million year on year to ¥6,184 million.
Trading & Commerce

We strived to revise prices and expand sales while facing rising purchase prices. As a result, operating revenue increased ¥2,620 million year on year to ¥41,288 million, and segment income rose ¥177 million year on year to ¥647 million.
Life Support

Owing to the contribution of revenue from M&A and initiatives such as price revisions, operating revenue increased ¥3,413 million year on year to ¥11,888 million, and segment income rose ¥182 million year on year to ¥448 million.
Business Support

We strived to expand sales and achieve recovery in the hotel business. As a result, operating revenue increased ¥924 million year on year to ¥3,169 million, and segment income rose ¥251 million year on year to ¥387 million.
Results for CHUO KAGAKU CO., LTD., which is a manufacturer of food packaging and containers and was made a consolidated subsidiary during the previous fiscal year, were operating revenue of ¥11,701 million and operating profit of ¥169 million. With the inclusion of CHUO KAGAKU CO., LTD. into the scope of consolidation, we added the Manufacturing segment in the fourth quarter of the fiscal year ended March 31, 2023. As a result, year-on-year changes are not presented.
(2) Financial condition
Assets, liabilities and net assets
Total assets Total assets as of June 30, 2023 were ¥586,178 million, ¥4,327 million higher than at the end of the previous fiscal year. Current assets amounted to ¥197,196 million, down ¥4,576 million from the end of the previous fiscal year. This was mainly due to decreases of ¥3,603 million in cash and deposits and ¥4,338 million in trade notes and accounts receivable, and contract assets despite increases of ¥1,130 million in electronically recorded monetary claims - operating and ¥1,831 million in other current assets. Non-current assets totaled ¥388,981 million, up ¥8,904 million from the end of the previous fiscal year. This was primarily due to increases of ¥6,728 million in property, plant and equipment, ¥928 million in intangible assets, and ¥1,247 million in investments and other assets.
Liabilities
Liabilities as of June 30, 2023 increased ¥677 million from the end of the previous fiscal year to ¥403,425 million. Current liabilities totaled ¥164,271 million, down ¥1,085 million from the end of the previous fiscal year. This was mainly due to decreases of ¥3,055 million in trade notes and accounts payable, ¥3,377 million in income taxes payable and ¥3,112 million in provision for bonuses despite increases of ¥5,576 million in short-term borrowings and ¥2,198 million in other current liabilities. Non-current liabilities totaled ¥239,153 million, up ¥1,763 million from the end of the previous fiscal year. This was mainly due to increases of ¥760 million in long-term lease liabilities and ¥1,043 million in deferred tax liabilities.
Net assets
Net assets as of June 30, 2023 rose ¥3,649 million from the end of the previous fiscal year to ¥182,753 million. This was primarily due to increases of ¥1,934 million in retained earnings and ¥655 million in foreign currency translation adjustment. The equity ratio as of June 30, 2023 increased by 0.4 percentage points to 28.0% from the end of the previous fiscal year. (3)  Forecast for the first half period and the full-term of the fiscal year ending March 31, 2024 No revisions have been made to the forecast of consolidated operating results for the first half ending September 30, 2023 and the fiscal year ending March 31, 2024, announced in “Summary of Financial Statements for the Fiscal Year Ended March 31, 2023” on May 12, 2023.
Consolidated Financial Statements
2.

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

(Consolidated statements of comprehensive income)