Senshu Electric : Summary of Consolidated Financial Results for the Year Ended October 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 Year Ended October 31, 2021

(Based on Japanese GAAP)

																						December 8, 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 [phone]
	Administration Division
Scheduled date of ordinary general meeting of shareholders:	January 27, 2022
Scheduled date to file Securities Report:			January 28, 2022
Scheduled date to commence dividend payments:			January 28, 2022
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:							Yes	(for analysts)
												(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended October 31, 2021 (from November 1, 2020 to October 31, 2021)
(1) Consolidated operating results															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		%
Year ended October 31, 2021		92,463		24.5	4,743		51.8				5,004	47.9		3,583		52.4
Year ended October 31, 2020		74,288		(11.2)	3,124		(21.5)			3,382	(19.6)	2,351		(13.4)
			Earnings per share		Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
					share			owners of				assets			sales
										parent/equity
				Yen			Yen						%						%				%
Year ended October 31, 2021		387.50			-						8.6						6.6				5.1
Year ended October 31, 2020		247.02			-						5.9						5.0				4.2
(2) Consolidated financial position
			Total assets			Net assets				Equity ratio	Net assets per share
			Millions of yen	Millions of yen						%						Yen
As of October 31, 2021			83,990					42,886							50.9				4,685.18
As of October 31, 2020			67,401					40,409							59.8				4,295.79
(3) Consolidated cash flows
			Cash flows from	Cash flows from		Cash flows from	Cash and cash equivalents
			operating activities	investing activities		financing activities		at end of period
			Millions of yen	Millions of yen			Millions of yen		Millions of yen
Year ended October 31, 2021					9,397					63							(1,742)						25,496
Year ended October 31, 2020					4,451					(395)							(1,769)						17,721
2. Cash dividends
							Annual dividends per share							Total cash		Dividend payout	Ratio of dividends
																			to net assets
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end			Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
			Yen			Yen	Yen				Yen		Yen	Millions of yen		%			%
Year ended October 31, 2020		-		35.00	-				35.00			70.00		662		28.3			1.7
Year ended October 31, 2021		-		40.00	-				50.00			90.00		825		23.2			2.0
Year ending October 31, 2022		-			50.00	-				50.00			100.00				25.1
(Forecast)
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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

Six months ending

48,500

-

2,450

-

2,600

-

1,850

-

205.12

April 30, 2022

Full year

97,000

-

4,800

-

5,100

-

3,600

-

399.15

4. Notes

(1) Changes in significant subsidiaries during the year ended October 31, 2021

No

(changes in specified subsidiaries resulting in the change in scope of consolidation):

(2) 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

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

As of October 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 October 31, 2021

1,680,806

shares

As of October 31, 2020

1,425,068

shares

Average number of shares during the period

Year ended October 31, 2021

9,247,780

shares

Year ended October 31, 2020

9,519,669

shares

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Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of October 31, 2020	As of October 31, 2021
Assets
Current assets
Cash and deposits	18,461	26,335
Notes and accounts receivable - trade	16,273	21,291
Electronically recorded monetary claims - operating	4,882	7,561
Securities	7	6
Merchandise	3,847	4,916
Other	205	235
Allowance for doubtful accounts	(13)	(13)
Total current assets	43,664	60,333
Non-current assets
Property, plant and equipment
Buildings and structures	10,523	10,524
Accumulated depreciation	(3,962)	(4,248)
Buildings and structures, net	6,560	6,275
Machinery, equipment and vehicles	1,340	1,375
Accumulated depreciation	(923)	(998)
Machinery, equipment and vehicles, net	416	377
Land	10,605	10,239
Leased assets	207	207
Accumulated depreciation	(95)	(126)
Leased assets, net	112	81
Construction in progress	4	251
Other	344	337
Accumulated depreciation	(269)	(274)
Other, net	74	62
Total property, plant and equipment	17,774	17,287
Intangible assets	120	110
Investments and other assets
Investment securities	1,308	1,848
Long-term loans receivable	33	19
Deferred tax assets	807	713
Other	4,351	4,378
Accumulated depreciation	(283)	(332)
Other,net	4,067	4,045
Allowance for doubtful accounts	(375)	(367)
Total investments and other assets	5,842	6,259
Total non-current assets	23,737	23,657
Total assets	67,401	83,990

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			(Millions of yen)
		As of October 31, 2020	As of October 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	21,858	35,628
Short-term borrowings	105	105
Lease obligations	36	21
Accrued expenses	271	281
Income taxes payable	462	1,024
Provision for bonuses	588	669
Other	940	695
Total current liabilities	24,262	38,426
Non-current liabilities
Lease obligations	37	15
Deferred tax liabilities	3	2
Retirement benefit liability	2,103	2,212
Asset retirement obligations	6	6
Guarantee deposits received	159	147
Other	419	295
Total non-current liabilities	2,728	2,678
Total liabilities	26,991	41,104
Net assets
Shareholders' equity
Share capital	2,575	2,575
Capital surplus	3,397	3,412
Retained earnings	37,146	40,032
Treasury shares	(3,231)	(4,201)
Total shareholders' equity	39,887	41,818
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	408	785
Foreign currency translation adjustment	25	131
Remeasurements of defined benefit plans	(48)	(10)
Total accumulated other comprehensive income	384	906
Non-controlling interests	137	160
Total net assets	40,409	42,886
Total liabilities and net assets	67,401	83,990

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		October 31, 2020	October 31, 2021
Net sales	74,288	92,463
Cost of sales	62,210	78,542
Gross profit	12,078	13,921
Selling, general and administrative expenses
Freight and packing costs	1,210	1,276
Provision of allowance for doubtful accounts	(7)	(1)
Salaries and bonuses	3,396	3,416
Welfare expenses	853	904
Provision for bonuses	583	659
Retirement benefit expenses	296	302
Travel, transportation and communication expenses	241	216
Depreciation	533	517
Amortization of goodwill	4	-
Other	1,841	1,885
Total selling, general and administrative expenses	8,953	9,177
Operating profit	3,124	4,743
Non-operating income
Interest income	7	6
Dividend income	39	48
Rental income from buildings	121	121
Purchase discounts	44	13
Foreign exchange gains	-	1
Gain on sale of scraps	23	40
Other	123	121
Total non-operating income	359	353
Non-operating expenses
Interest expenses	0	1
Depreciation	53	53
Guarantee commission	7	9
Foreign exchange losses	5	-
Other	34	29
Total non-operating expenses	101	92
Ordinary profit	3,382	5,004
Extraordinary income
Insurance claim income	-	104
Gain on reversal of foreign currency translation adjustment	47	-
Total extraordinary income	47	104
Extraordinary losses
Loss on valuation of investment securities	7	-
Total extraordinary losses	7	-
Profit before income taxes	3,422	5,109
Income taxes - current	1,045	1,526
Income taxes - deferred	20	(26)
Total income taxes	1,065	1,500
Profit	2,356	3,608
Profit attributable to non-controlling interests	4	24
Profit attributable to owners of parent	2,351	3,583

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