Senshu Electric : Summary of Consolidated Financial Results for the Three Months Ended January 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 anydiscrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results

for the Three Months Ended January 31, 2021

(Based on Japanese GAAP)

March 4, 2021

Company name:SENSHU ELECTRIC CO.,LTD.

Stock exchange listing: Tokyo

Stock code: Representative:

Motohide Nishimura
Kazuto Narita
Scheduled date to file Quarterly Securities Report:	March 11, 2021
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No

9824 URLhttps://www.senden.co.jp/ Representative Director,President

Inquiries:

Senior Managing Director & Executive Officer & General Manager of Administration Division

TEL [phone]

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended January 31, 2021 (from November 1, 2020 to January 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
Three months ended January 31, 2021 Three months ended January 31, 2020	Millions of yen 20,353 20,091	% 1.3 (6.0)	Millions of yen 720 818	% (12.0) (24.0)	Millions of yen 819 880	% (7.0) (22.4)	Millions of yen 549 616	% (10.9) (19.7)

Earnings per share	Diluted earnings per share
Three months ended January 31, 2021 Three months ended January 31, 2020	Yen 58.78 64.17	Yen - -

(2) Consolidated financial position

Total assets	Net assets	Equity ratio
As of January 31, 2021 As of October 31, 2020	Millions of yen 69,175 67,401	Millions of yen 40,611 40,409	% 58.5 59.8

2. Cash dividends

Annual dividends per share
1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
Year ended October 31, 2020 Year ending October 31, 2021	Yen - -	Yen 35.00	Yen -	Yen 35.00	Yen 70.00
Year ending October 31, 2021 (Forecast)	40.00	-	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 owners of parent	Earnings per share
Six months ending April 30, 2021 Full year	Millions of yen 39,600 82,100	% 3.1 10.5	Millions of yen 1,480 3,300	% (18.0) 5.6	Millions of yen 1,580 3,550	% (17.4) 5.0	Millions of yen 1,060 2,400	% (19.7) 2.1	Yen 115.16 260.73

4. Notes

• (1) Changes in significant subsidiaries during the three months ended January 31, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):No

• (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 statementsChanges in accounting policies due to revisions to accounting standards and other regulations: Changes in accounting policies due to other reasons:

Changes in accounting estimates:

Restatement of prior period financial statements:

No No No No

(4) Number of issued shares (common shares)

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

As of January 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 January 31, 2021

1,483,822 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)

Three months ended January 31, 2021

9,351,833 shares

Three months ended January 31, 2020

9,611,977 shares

Quarterly consolidated financial statements Consolidated balance sheets

(Millions of yen)
As of October 31, 2020	As of January 31, 2021
Assets Current assets Cash and deposits Notes and accounts receivable - trade Electronically recorded monetary claims - operating Securities Merchandise Other Allowance for doubtful accounts	18,461 16,273 4,882 7 3,847 205 (13)	18,651 16,877 5,621 14 4,324 221 (20)
Total current assets	43,664	45,690
Non-current assets Property, plant and equipment Buildings and structures, net Machinery, equipment and vehicles, net Land Leased assets, net Other, net	6,560 416 10,605 112 79	6,488 393 10,605 104 73
Total property, plant and equipment	17,774	17,664
Intangible assets Investments and other assets Investment securities Long-term loans receivable Deferred tax assets Other,net Allowance for doubtful accounts	120 1,308 33 807 4,067 (375)	110 1,461 29 610 3,982 (375)
Total investments and other assets	5,842	5,709
Total non-current assets	23,737	23,485
Total assets	67,401	69,175
(Millions of yen)
As of October 31, 2020	As of January 31, 2021
Liabilities Current liabilities Notes and accounts payable - trade Short-term borrowings Lease obligations Income taxes payable Provision for bonuses Other	21,858 105 36 462 588 1,211	24,267 105 31 114 310 1,106
Total current liabilities	24,262	25,935
Non-current liabilities Lease obligations Deferred tax liabilities Retirement benefit liability Asset retirement obligations Other	37 3 2,103 6 578	30 9 2,129 6 452
Total non-current liabilities	2,728	2,628
Total liabilities	26,991	28,564
Net assets Shareholders' equity Share capital Capital surplus Retained earnings Treasury shares	2,575 3,397 37,146 (3,231)	2,575 3,397 37,368 (3,421)
Total shareholders' equity	39,887	39,919
Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans	408 25 (48)	550 44 (40)
Total accumulated other comprehensive income	384	554
Non-controlling interests	137	137
Total net assets	40,409	40,611
Total liabilities and net assets	67,401	69,175

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

Consolidated statements of income (cumulative)

(Millions of yen)
Three months ended January 31, 2020	Three months ended January 31, 2021
Net sales Cost of sales	20,091 16,850	20,353 17,331
Gross profit	3,240	3,021
Selling, general and administrative expenses Freight and packing costs Provision of allowance for doubtful accounts Salaries and bonuses Welfare expenses Provision for bonuses Retirement benefit expenses Travel, transportation and communication expenses Depreciation Amortization of goodwill Other	318 72 706 218 316 69 78 132 1 507	314 6 688 219 305 77 57 134 - 497
Total selling, general and administrative expenses	2,421	2,300
Operating profit	818	720
Non-operating income Interest income Dividend income Rental income from buildings Purchase discounts Foreign exchange gains Insurance claim income Other	1 11 30 12 4 7 20	1 11 30 11 - 25 38
Total non-operating income	87	119
Non-operating expenses Interest expenses Depreciation Guarantee commission Foreign exchange losses Other	0 13 1 - 11	0 13 2 0 4
Total non-operating expenses	25	21
Ordinary profit	880	819
Extraordinary income Gain on reversal of foreign currency translation adjustment	47	-
Total extraordinary income	47	-
Profit before income taxes	928	819
Income taxes - current Income taxes - deferred	123 181	98 171
Total income taxes	304	270
Profit	623	548
Profit (loss) attributable to non-controlling interests	6	(0)
Profit attributable to owners of parent	616	549

Consolidated statements of comprehensive income (cumulative)

(Millions of yen)
Three months ended January 31, 2020	Three months ended January 31, 2021
Profit Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax	623 91 (17) 7	548 142 20 8
Total other comprehensive income	81	170
Comprehensive income	704	719
Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests	695 9	719 (0)