Senshu Electric : Summary of Consolidated Financial Results for the Six Months Ended April 30, 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 Six Months Ended April 30, 2021 (Based on Japanese GAAP)

					June 3, 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 to file Quarterly Securities Report:	June 10, 2021
Scheduled date to commence dividend payments:	July 2, 2021
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, 2021 (from November 1, 2020 to April 30, 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	%
Six months ended April 30, 2021	42,973	11.9	1,905	5.6	2,090		9.3	1,442	9.2
Six months ended April 30, 2020	38,399	(9.4)	1,804	(16.1)	1,911		(15.5)	1,320	(13.1)
	Earnings per share		Diluted earnings per share
		Yen			Yen
Six months ended April 30, 2021		154.94			-
Six months ended April 30, 2020		137.86			-
(2) Consolidated financial position
	Total assets		Net assets	Equity ratio
	Millions of yen		Millions of yen				%
As of April 30, 2021		76,437			41,339				53.9
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	86,900	17.0	3,850	23.2	4,200	24.2	2,900	23.3	318.97

1

4. Notes
(1)	Changes in significant subsidiaries during the six months ended April 30, 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 April 30, 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 April 30, 2021	1,558,120	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)
		Six months ended April 30, 2021	9,311,639	shares	Six months ended April 30, 2020	9,580,301	shares

2

Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of October 31, 2020	As of April 30, 2021
Assets
Current assets
Cash and deposits	18,461	23,778
Notes and accounts receivable - trade	16,273	18,661
Electronically recorded monetary claims - operating	4,882	5,554
Securities	7	6
Merchandise	3,847	4,534
Other	205	296
Allowance for doubtful accounts	(13)	(15)
Total current assets	43,664	52,815
Non-current assets
Property, plant and equipment
Buildings and structures, net	6,560	6,411
Machinery, equipment and vehicles, net	416	381
Land	10,605	10,562
Leased assets, net	112	96
Other, net	79	115
Total property, plant and equipment	17,774	17,568
Intangible assets	120	105
Investments and other assets
Investment securities	1,308	1,568
Long-term loans receivable	33	26
Deferred tax assets	807	712
Other,net	4,067	4,010
Allowance for doubtful accounts	(375)	(370)
Total investments and other assets	5,842	5,948
Total non-current assets	23,737	23,621
Total assets		67,401	76,437

3

			(Millions of yen)
		As of October 31, 2020	As of April 30, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	21,858	30,206
Short-term borrowings	105	105
Lease obligations	36	26
Income taxes payable	462	627
Provision for bonuses	588	591
Other	1,211	888
Total current liabilities	24,262	32,444
Non-current liabilities
Lease obligations	37	27
Deferred tax liabilities	3	5
Retirement benefit liability	2,103	2,162
Asset retirement obligations	6	6
Other	578	451
Total non-current liabilities	2,728	2,653
Total liabilities	26,991	35,097
Net assets
Shareholders' equity
Share capital	2,575	2,575
Capital surplus	3,397	3,412
Retained earnings	37,146	38,261
Treasury shares	(3,231)	(3,701)
Total shareholders' equity	39,887	40,547
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	408	582
Foreign currency translation adjustment	25	91
Remeasurements of defined benefit plans	(48)	(31)
Total accumulated other comprehensive income	384	642
Non-controlling interests	137	149
Total net assets	40,409	41,339
Total liabilities and net assets		67,401	76,437

4

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, 2020	April 30, 2021
Net sales	38,399	42,973
Cost of sales	32,010	36,514
Gross profit	6,388	6,458
Selling, general and administrative expenses
Freight and packing costs	625	643
Provision of allowance for doubtful accounts	(5)	0
Salaries and bonuses	1,418	1,416
Welfare expenses	415	425
Provision for bonuses	573	582
Retirement benefit expenses	149	150
Travel, transportation and communication expenses	138	109
Depreciation	265	258
Amortization of goodwill	2	-
Other	999	967
Total selling, general and administrative expenses	4,584	4,553
Operating profit	1,804	1,905
Non-operating income
Interest income	3	3
Dividend income	14	16
Rental income from buildings	60	60
Purchase discounts	24	13
Foreign exchange gains	2	2
Other	54	132
Total non-operating income	160	228
Non-operating expenses
Interest expenses	1	0
Depreciation	26	26
Guarantee commission	3	4
Other	22	11
Total non-operating expenses	52	43
Ordinary profit	1,911	2,090
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	1,951	2,090
Income taxes - current	516	595
Income taxes - deferred	107	46
Total income taxes	623	641
Profit	1,327	1,448
Profit attributable to non-controlling interests	6	6
Profit attributable to owners of parent		1,320	1,442

5