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 Non-Consolidated Financial Results
for the Year Ended July 31, 2020
(Based on Japanese GAAP)
September 11, 2020
Company name:

SILVER LIFE CO., LTD.

Stock exchange listing: Tokyo
Stock code:
9262
Representative:
Inquiries:

URL

https://www.silver-life.co.jp/

President, CEO
Coporate Planning Division Manager

Takahisa Shimizu
Reiko SaitoScheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

October 27, 2020
October 28, 2020

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:–
Yes

Holding of financial results meeting:

Yes

TEL

(03)6300-5629(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Non-consolidated financial results for the year ended July 31, 2020 (from August 1, 2019 to July 31, 2020)(1) Non-consolidated operating resultsPercentages indicate year-on-year changes
Net salesYear ended July 31, 2020
Year ended July 31, 2019

Millions of yen
8,832
7,800

Operating profit
%
13.2
19.1

Millions of yen
934
885

Diluted earnings pershare
Yen
Yen
63.80
61.96
60.21
58.05

Earnings per share
Year ended July 31, 2020
Year ended July 31, 2019

Ordinary profit
%
5.6
47.6

Millions of yen
1,086
1,002

Profit%8.4
47.9

Millions of yen
678
635

%
6.8
47.3

Ordinary profit/total Operating profit/net
assetssales%%%
16.9
20.8
10.6
19.0
22.8
11.3

Profit/equity(2) Non-consolidated financial position
Total assets
As of July 31, 2020
As of July 31, 2019

Net assets

Equity ratio

Millions of yen
5,613
4,853

Millions of yen
4,364
3,674

Cash flows fromoperating activities
Millions of yen
678
906

Cash flows frominvesting activities
Millions of yen(1,100)(324)

Net assets per share%
77.7
75.7

Yen
408.33346.17(3) Non-consolidated cash flows

Year ended July 31, 2020
Year ended July 31, 2019

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen81,847(9)2,2602. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended July 31, 2019Year ended July 31, 2020
Year ending July 31, 2021
(Forecast)

Dividend payout Ratio of dividends
Total cashratio
to net assets
dividends (Total) (Non-consolidated)(Non-consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

–
–

0.00
0.00

–
–

0.00
0.00

0.00
0.00

––––

–
–

–

0.00

–

0.00

0.00

1–

3. Forecast of non-consolidated financial results for the year ending July 31, 2021 (from August 1, 2020 to July 31, 2021)
Percentages indicate year-on-year changes
Net sales
Millions of yen
Six months ending
January 31, 2021
Full year

Operating profit% Millions of yen

Ordinary profit

ProfitEarnings per share% Millions of yen% Millions of yen%

Yen

4,710

11.8

450

9.3

510

4.9

320

5.9

29.94

9,530

7.9

650

(30.4)

770(29.1)

460(32.2)

43.04

4. Notes(1) 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:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(2) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of July 31, 2020

10,688,800 shares As of July 31, 2019

10,616,400 shares

Number of treasury shares at the end of the period
As of July 31, 2020

294 shares As of July 31, 2019294 shares

Average number of shares during the period
Year ended July 31, 2020

10,635,942 shares Year ended July 31, 20192

10,554,621 sharesNon-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of July 31, 2019
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise and finished goods
Raw materials and supplies
Prepaid expenses
Accounts receivable - other
Other
Allowance for doubtful accounts

As of July 31, 2020

2,260,473
744,807
40,367
12,45237,020182,91046,922(28,682)

1,847,192
870,406
63,166
15,563
20,714
224,454
67,771(29,913)

3,296,271

3,079,355

Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation

781,233(140,682)

830,749(186,033)

Buildings, net

640,551

644,716

28,239(2,805)36,999(5,487)25,43431,512514,357(205,703)

564,466(260,956)

308,653

303,509

108
(108)

5,085
(3,551)–

1,533

64,268(32,855)

70,203(42,703)

Total current assets

Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, netVehicles
Accumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation

31,412

27,499288,544
4,507(4,131)

288,544
16,927(6,784)

Leased assets, net

375

10,143

Construction in progress

29,922

839,688

1,324,894

2,147,148

7,560
72,85260,527

5,827
103,979
152,613140,939

262,420

29,094
5,496
1,828
32,96032,552(10,184)

38,855
4,762
4,503
37,492
51,522(12,115)

Total property, plant and equipment
Intangible assets
Trademark rightSoftware
Other
Total intangible assets
Investments and other assets
Long-term loans receivable
Distressed receivables
Long-term prepaid expenses
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

91,747125,0211,557,581

2,534,590

4,853,852

5,613,946

(Thousands of yen)
As of July 31, 2019
Liabilities
Current liabilities
Accounts payable - trade
Accounts payable - otherAccrued expenses
Income taxes payable
Deposits received
Lease obligations
Other
Total current liabilities
Non-current liabilities
Guarantee deposited
Lease obligations
Other
Total non-current liabilities
Total liabilities

As of July 31, 2020

483,705
207,751
12,671
259,561
5,933
405
76,047539,806
277,115
12,480228,017
8,099
2,682
21,587

1,046,077

1,089,788

129,626–
3,210

148,279
8,271
3,210

132,836

159,761

1,178,913

1,249,550

Net assets
Shareholders' equity
Share capital
Capital surplus
Legal capital surplus

710,656716,103

700,656

706,103

Total capital surpluses

700,656

706,1032,264,308

2,942,871

2,264,308

2,942,871

Retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders' equity
Total net assets
Total liabilities and net assets

4(682)(682)

3,674,939

4,364,396

3,674,939

4,364,396

4,853,852

5,613,946

Non-consolidated statements of income(Thousands of yen)

Net sales
Cost of sales

Fiscal year ended

Fiscal year ended

July 31, 2019

July 31, 20207,800,676

8,832,415

Beginning inventory of merchandise and finished goods
Cost of products manufactured

36,382
2,313,058

40,3672,574,444

Cost of purchased goods

3,256,147

3,670,250

Total

5,605,588

6,285,062

40,367

63,166

5,565,221

6,221,896

2,235,455

2,610,518

Salaries and allowances
Freight costs

208,240
239,906

238,736
344,575

Depreciation
Outsourcing expenses

50,930189,919

67,904
216,842

Advertising expenses
Bad debts expenses

180,137
5,632

243,671
4,322

Provision of allowance for doubtful accounts
Other

4,356
471,207

2,623
557,328

1,350,330

1,676,006

885,125

934,511

7,956

9,769

Compensation income
Commission income

97,04013,327

127,986
18,993

Other

14,756

17,743

Total non-operating income

133,081

174,492

Interest expenses
Rental expenses

29
11,952–
19,149Bad debts expenses
Provision of allowance for doubtful accounts

1,589
1,806

131
3,127

574

387

Ending inventory of merchandise and finished goods
Total cost of sales
Gross profit
Selling, general and administrative expenses

Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income

Non-operating expenses

Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Total extraordinary losses

15,951

22,797

1,002,255

1,086,207

39

1,209

39

1,209

4,230

340

5,280

19,3789,510

19,718

Profit before income taxes

992,783

1,067,698

Income taxes - current

362,578

393,667

Income taxes - deferred(5,295)(4,531)

Total income taxes

357,282

389,135

Profit635,501

678,5625

Non-consolidated statements of changes in equity
Fiscal year ended July 31, 2019
(Thousands of yen)
Shareholders' equity
Capital surplus

Sharecapital

Balance at beginning of period

Retained earnings

Legal capital Total capitalsurplussurplus701,787

691,787

691,787

8,868

8,868

8,868

Other
retainedearnings
Retainedearnings
brought
forward1,628,807

Total
retainedearnings

1,628,807

Total

Treasurysharesshareholders'

Total netassets

equity(171)

3,022,211

3,022,211

17,73717,737

635,501

635,501

Changes during period
Issuance of new shares - exercise ofshare acquisition rights
Profit635,501

635,501
(510)

(510)

(510)

Total changes during period

Purchase of treasury shares
8,868

8,868

8,868

635,501

635,501(510)

652,727

652,727

Balance at end of period

710,656

700,656

700,656

2,264,308

2,264,308(682)

3,674,939

3,674,939

Fiscal year ended July 31, 2020
(Thousands of yen)
Shareholders' equity
Capital surplus

Sharecapital

Balance at beginning of period

Legal capital Total capitalsurplussurplus710,656

700,656

700,656

5,447

5,447

5,447

Retained earnings
Otherretainedearnings
Retainedearnings
brought
forward2,264,308

Total
retainedearnings

2,264,308

TotalTreasury
sharesshareholders'

Total net
assetsequity(682)

3,674,939

3,674,939

10,894

10,894

678,562

678,562

Changes during period
Issuance of new shares - exercise ofshare acquisition rights
Profit678,562

678,562

Total changes during period

5,447

5,447

5,447

678,562

678,562–

689,457

689,457

Balance at end of period

716,103706,103706,1032,942,871

2,942,871(682)

4,364,396

4,364,396

6

Non-consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

July 31, 2019

July 31, 2020
992,783

1,067,698

Depreciation
Increase (decrease) in allowance for doubtful accounts

146,349(3,780)169,309
3,161

Interest and dividend income
Interest expenses(7,956)29(9,769)–

Loss on retirement of non-current assets
Loss (gain) on sales of non-current assets

5,280
4,191

19,378(869)Decrease (increase) in trade receivables
Decrease (increase) in inventories(99,668)(2,915)(125,599)(25,909)

Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes

79,86482,295

56,100(48,945)

Other, net(25,201)(11,439)

Subtotal

1,171,271

1,093,115

7,956

9,769

Interest paid
Income taxes paid

(21)
(272,639)–(424,003)

Net cash provided by (used in) operating activities

906,566

678,881Interest and dividends received

Cash flows from investing activities
Purchase of property, plant and equipment(284,360)(957,184)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets

1,700(51,925)

5,730(149,608)

Loan advances
Collection of loans receivable(12,207)
15,460(22,305)
12,190

Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits(2,516)616(14,029)450

Refund of guarantee deposits received
Guarantee deposits received(4,846)
31,541(5,386)35,814Purchase of other investments(17,507)(5,861)

Net cash provided by (used in) investing activities(324,044)(1,100,191)

Repayments of long-term borrowings
Proceeds from exercise of employee share options(25,300)
17,737–
10,894Purchase of treasury shares
Repayments of lease obligations(510)(1,216)–(2,864)

Net cash provided by (used in) financing activities(9,290)8,029

Cash flows from financing activities

Net increase (decrease) in cash and cash equivalents

573,232(413,280)

Cash and cash equivalents at beginning of period

1,687,241

2,260,473

Cash and cash equivalents at end of period

2,260,473

1,847,192

7