Senshu Electric : Summary of Consolidated Financial Results for the Six Months Ended April 30, 2022

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 Six Months Ended April 30, 2022 (Based on Japanese GAAP)

					June 2, 2022
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 [phone]
	Administration Division
Scheduled date to file Quarterly Securities Report:	June 9, 2022
Scheduled date to commence dividend payments:	July 4, 2022
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended April 30, 2022 (from November 1, 2021 to April 30, 2022)
(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	%
Six months ended April 30, 2022	55,154	28.3		3,536	85.6	3,713		77.6	2,491	72.7
Six months ended April 30, 2021	42,973	11.9		1,905	5.6	2,090		9.3	1,442	9.2
	Earnings per share			Diluted earnings per share
			Yen			Yen
Six months ended April 30, 2022		274.47			-
Six months ended April 30, 2021		154.94			-
(2) Consolidated financial position
	Total assets			Net assets	Equity ratio
	Millions of yen			Millions of yen				%
As of April 30, 2022		90,710				44,383				48.7
As of October 31, 2021		83,990				42,886				50.9

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, 2021	-	40.00	-	50.00	90.00
Year ending October 31, 2022	-	60.00
Year ending October 31, 2022 (Forecast)			-	60.00	120.00

3. Forecast of consolidated financial results for the year ending October 31, 2022 (from November 1, 2021 to October 31, 2022)

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	108,000	16.8	6,400	34.9	6,700	33.9	4,600	28.4	514.27

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4. Notes
(1)	Changes in significant subsidiaries during the six months ended April 30, 2022	Yes
	(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:	Yes
	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 April 30, 2022	10,500,000	shares	As of October 31, 2021		10,800,000	shares
	Number of treasury shares at the end of the period
		As of April 30, 2022	1,455,206	shares	As of October 31, 2021		1,680,806	shares
	Average number of shares during the period (cumulative from the beginning of the fiscal year)
		Six months ended April 30, 2022	9,078,979	shares	Six months ended April 30, 2021	9,311,639	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of October 31, 2021	As of April 30, 2022
Assets
Current assets
Cash and deposits	26,335	27,806
Notes and accounts receivable - trade	21,291	22,740
Electronically recorded monetary claims - operating	7,561	9,010
Securities	6	-
Merchandise	4,916	6,827
Other	235	279
Allowance for doubtful accounts	(13)	(14)
Total current assets	60,333	66,650
Non-current assets
Property, plant and equipment
Buildings and structures, net	6,275	6,420
Machinery, equipment and vehicles, net	377	352
Land	10,239	10,392
Leased assets, net	81	96
Other, net	314	318
Total property, plant and equipment	17,287	17,580
Intangible assets
Goodwill	-	174
Other	110	115
Total intangible assets	110	290
Investments and other assets
Investment securities	1,848	1,656
Long-term loans receivable	19	12
Deferred tax assets	713	820
Other,net	4,045	4,084
Allowance for doubtful accounts	(367)	(384)
Total investments and other assets	6,259	6,189
Total non-current assets	23,657	24,060
Total assets	83,990	90,710

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			(Millions of yen)
		As of October 31, 2021	As of April 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	35,628	39,373
Short-term borrowings	105	430
Current portion of bonds payable	-	14
Current portion of long-term borrowings	-	79
Lease obligations	21	24
Income taxes payable	1,024	1,204
Provision for bonuses	669	685
Other	976	1,168
Total current liabilities	38,426	42,980
Non-current liabilities
Bonds payable	-	214
Long-term borrowings	-	238
Lease obligations	15	29
Deferred tax liabilities	2	1
Retirement benefit liability	2,212	2,251
Provision for retirement benefits for directors (and other	-	178
officers)
Asset retirement obligations	6	6
Other	442	426
Total non-current liabilities	2,678	3,346
Total liabilities	41,104	46,327
Net assets
Shareholders' equity
Share capital	2,575	2,575
Capital surplus	3,412	2,690
Retained earnings	40,032	41,975
Treasury shares	(4,201)	(3,926)
Total shareholders' equity	41,818	43,314
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	785	616
Foreign currency translation adjustment	131	250
Remeasurements of defined benefit plans	(10)	(8)
Total accumulated other comprehensive income	906	858
Share acquisition rights	-	13
Non-controlling interests	160	197
Total net assets	42,886	44,383
Total liabilities and net assets	83,990	90,710

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Six months ended	Six months ended
		April 30, 2021	April 30, 2022
Net sales	42,973	55,154
Cost of sales	36,514	46,962
Gross profit	6,458	8,191
Selling, general and administrative expenses
Freight and packing costs	643	659
Provision of allowance for doubtful accounts	0	0
Salaries and bonuses	1,416	1,386
Welfare expenses	425	441
Provision for bonuses	582	658
Retirement benefit expenses	150	134
Travel, transportation and communication expenses	109	120
Depreciation	258	234
Other	967	1,017
Total selling, general and administrative expenses	4,553	4,655
Operating profit	1,905	3,536
Non-operating income
Interest income	3	4
Dividend income	16	17
Rental income from buildings	60	64
Purchase discounts	13	-
Foreign exchange gains	2	16
Other	132	123
Total non-operating income	228	226
Non-operating expenses
Interest expenses	0	0
Depreciation	26	25
Guarantee commission	4	5
Other	11	18
Total non-operating expenses	43	49
Ordinary profit	2,090	3,713
Profit before income taxes	2,090	3,713
Income taxes - current	595	1,156
Income taxes - deferred	46	35
Total income taxes	641	1,191
Profit	1,448	2,521
Profit attributable to non-controlling interests	6	29
Profit attributable to owners of parent	1,442	2,491

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