Senshu Electric : Summary of Consolidated Financial Results for the Nine Months Ended July 31, 2021

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Nine Months Ended July 31, 2021 (Based on Japanese GAAP)

September 2, 2021

Company name:

SENSHU ELECTRIC CO.,LTD.

Stock exchange listing:

Tokyo

Stock code:

9824

URL

https://www.senden.co.jp/

Representative:

Representative Director,President

Motohide Nishimura

Senior Managing Director & Executive

Inquiries:

Officer & General Manager of

Kazuto Narita

TEL

06-6384-1101

Administration Division

Scheduled date to file Quarterly Securities Report:

September 9, 2021

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results:

No

Holding of quarterly financial results meeting:

No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the nine months ended July 31, 2021 (from November 1, 2020 to July 31, 2021)

(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Nine months ended July 31, 2021

66,568

20.2

3,243

35.1

3,506

34.8

2,503

40.1

Nine months ended July 31, 2020

55,389

(12.2)

2,401

(19.3)

2,600

(17.6)

1,787

(15.2)

Earnings per share

Diluted earnings per share

Yen

Yen

Nine months ended July 31, 2021

269.78

-

Nine months ended July 31, 2020

187.04

-

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of July 31, 2021

78,874

41,975

53.0

As of October 31, 2020

67,401

40,409

59.8

2. Cash dividends

Annual dividends per share

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended October 31, 2020

-

35.00

-

35.00

70.00

Year ending October 31, 2021

-

40.00

-

Year ending October 31, 2021 (Forecast)

40.00

80.00

3. Forecast of consolidated financial results for the year ending October 31, 2021 (from November 1, 2020 to October 31, 2021)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	89,000	19.8	4,200	34.4	4,500	33.0	3,200	36.1	351.96

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4. Notes
(1)	Changes in significant subsidiaries during the nine months ended July 31, 2021	No
	(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2)	Application of special accounting methods for preparing quarterly consolidated financial statements:	No
(3)	Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
	Changes in accounting policies due to revisions to accounting standards and other regulations:	No
	Changes in accounting policies due to other reasons:			No
	Changes in accounting estimates:				No
	Restatement of prior period financial statements:				No
(4)	Number of issued shares (common shares)
	Total number of issued shares at the end of the period (including treasury shares)
		As of July 31, 2021	10,800,000	shares	As of October 31, 2020		10,800,000	shares
	Number of treasury shares at the end of the period
		As of July 31, 2021	1,617,020	shares	As of October 31, 2020		1,425,068	shares
	Average number of shares during the period (cumulative from the beginning of the fiscal year)
		Nine months ended July 31, 2021	9,281,371	shares	Nine months ended July 31, 2020	9,557,890	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of October 31, 2020	As of July 31, 2021
Assets
Current assets
Cash and deposits	18,461	23,805
Notes and accounts receivable - trade	16,273	19,572
Electronically recorded monetary claims - operating	4,882	6,691
Securities	7	5
Merchandise	3,847	4,956
Other	205	256
Allowance for doubtful accounts	(13)	(18)
Total current assets	43,664	55,269
Non-current assets
Property, plant and equipment
Buildings and structures, net	6,560	6,353
Machinery, equipment and vehicles, net	416	386
Land	10,605	10,558
Leased assets, net	112	89
Other, net	79	69
Total property, plant and equipment	17,774	17,457
Intangible assets	120	103
Investments and other assets
Investment securities	1,308	1,741
Long-term loans receivable	33	23
Deferred tax assets	807	688
Other,net	4,067	3,959
Allowance for doubtful accounts	(375)	(368)
Total investments and other assets	5,842	6,044
Total non-current assets	23,737	23,605
Total assets	67,401	78,874

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			(Millions of yen)
		As of October 31, 2020	As of July 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	21,858	32,317
Short-term borrowings	105	105
Lease obligations	36	21
Income taxes payable	462	439
Provision for bonuses	588	318
Other	1,211	1,005
Total current liabilities	24,262	34,208
Non-current liabilities
Lease obligations	37	23
Deferred tax liabilities	3	6
Retirement benefit liability	2,103	2,204
Asset retirement obligations	6	6
Other	578	449
Total non-current liabilities	2,728	2,691
Total liabilities	26,991	36,899
Net assets
Shareholders' equity
Share capital	2,575	2,575
Capital surplus	3,397	3,412
Retained earnings	37,146	38,952
Treasury shares	(3,231)	(3,917)
Total shareholders' equity	39,887	41,022
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	408	715
Foreign currency translation adjustment	25	99
Remeasurements of defined benefit plans	(48)	(23)
Total accumulated other comprehensive income	384	791
Non-controlling interests	137	161
Total net assets	40,409	41,975
Total liabilities and net assets	67,401	78,874

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Nine months ended	Nine months ended
		July 31, 2020	July 31, 2021
Net sales	55,389	66,568
Cost of sales	46,182	56,522
Gross profit	9,206	10,045
Selling, general and administrative expenses
Freight and packing costs	914	952
Provision of allowance for doubtful accounts	(8)	3
Salaries and bonuses	2,702	2,697
Welfare expenses	643	651
Provision for bonuses	322	315
Retirement benefit expenses	220	222
Travel, transportation and communication expenses	187	161
Depreciation	398	388
Amortization of goodwill	4	-
Other	1,420	1,408
Total selling, general and administrative expenses	6,804	6,801
Operating profit	2,401	3,243
Non-operating income
Interest income	5	5
Dividend income	35	42
Rental income from buildings	87	90
Purchase discounts	35	13
Foreign exchange gains	-	8
Other	113	170
Total non-operating income	278	331
Non-operating expenses
Interest expenses	1	0
Depreciation	39	39
Guarantee commission	5	6
Foreign exchange losses	4	-
Other	28	20
Total non-operating expenses	79	68
Ordinary profit	2,600	3,506
Extraordinary income
Gain on reversal of foreign currency translation adjustment	47	-
Total extraordinary income	47	-
Extraordinary losses
Loss on valuation of investment securities	7	-
Total extraordinary losses	7	-
Profit before income taxes	2,640	3,506
Income taxes - current	647	958
Income taxes - deferred	196	26
Total income taxes	844	984
Profit	1,795	2,521
Profit attributable to non-controlling interests	8	17
Profit attributable to owners of parent	1,787	2,503

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