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, 2018
(Based on Japanese GAAP)
September 13, 2018
Company name:

SILVER LIFE CO., LTD.

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

URL

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

President, CEO
Administration Manager

Takahisa Shimizu
Tatsuya KatayoseScheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

October 29, 2018
October 30, 2018

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, 2018 (from August 1, 2017 to July 31, 2018)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended July 31, 2018Year ended July 31, 2017

Millions of yen
6,547
5,245

Operating profit
%
24.8
26.4

Millions of yen
599
475

Diluted earnings pershare
Yen
Yen
87.33
84.21
94.17
–Earnings per share
Year ended July 31, 2018Year ended July 31, 2017

Ordinary profit
%
26.0
28.5

Millions of yen
677
539

Profit%25.6
24.1

Millions of yen
431
377

%
14.2
25.4

Ordinary profit/total Operating profit/net
assetssales%%%
20.4
22.2
9.2
37.1
28.1
9.1

Profit/equity(2) Non-consolidated financial position
Total assets
As of July 31, 2018
As of July 31, 2017

Net assets

Equity ratio

Millions of yen
3,941
2,166

Millions of yen
3,022
1,208

Cash flows fromoperating activities
Millions of yen
506
426

Cash flows frominvesting activities
Millions of yen
(715)
(206)

Net assets per share%
76.7
55.8

Yen
574.92301.22(3) Non-consolidated cash flows

Year ended July 31, 2018Year ended July 31, 2017

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
1,168
1,687
5728

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended July 31, 2017
Year ended July 31, 2018Year ending July 31, 2019
(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, 2019 (from August 1, 2018 to July 31, 2019)
Percentages indicate year-on-year changes
Net sales
Millions of yen
Six months ending
January 31, 2019
Full year

Operating profit% Millions of yen

Ordinary profit% Millions of yen

Profit% Millions of yen

Earnings per share%

Yen

3,700

20.1

320

19.5

347

18.6

217

16.7

41.41

7,716

17.9

687

14.7

739

9.1

463

7.4

88.08

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, 2018

5,256,800 shares As of July 31, 2017

4,012,000 shares

50 shares As of July 31, 2017

– shares

Number of treasury shares at the end of the period
As of July 31, 2018
Average number of shares during the period
Year ended July 31, 2018

4,938,407 shares Year ended July 31, 2017

2

4,012,000 sharesNon-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of July 31, 2017

As of July 31, 2018

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade728,156
536,075

1,687,241
645,139

Merchandise and finished goods
Raw materials and supplies

26,60910,44236,382
13,522

Prepaid expenses
Deferred tax assets

12,67919,45815,63918,756

Accounts receivable - other
Other

115,586
37,971

165,437
51,980Allowance for doubtful accounts(23,435)(23,502)

1,463,544

2,610,596

334,492

662,130

Accumulated depreciation(70,460)(101,454)

Buildings, net

264,032

560,675–

18,800–(870)

Total current assets
Non-current assets
Property, plant and equipment
Buildings

Structures
Accumulated depreciation
Structures, net–

17,929254,646441,856

Accumulated depreciation(102,942)(148,329)

Machinery and equipment, net

151,703

293,526

108

108

(36)

(72)

Machinery and equipment

VehiclesAccumulated depreciation
Vehicles, net

723644,313

36,959

Accumulated depreciation(30,298)(23,459)

Tools, furniture and fixtures, net

14,014

13,499Land

75,547

288,544

Leased assets
Accumulated depreciation

4,507(1,878)4,507(3,004)

2,629

1,502

Tools, furniture and fixtures

Leased assets, net
Construction in progress

82,4409,242

Total property, plant and equipment

590,439

1,184,956

Trademark right
Software

11,02643,192

9,293
53,432

Other

1,422

24,805

Total intangible assets

55,64187,531Intangible assets3(Thousands of yen)
As of July 31, 2017As of July 31, 2018

Investments and other assets
Long-term loans receivable
Claims provable in bankruptcy, claims provable inrehabilitation and other
Long-term prepaid expenses

27,77824,893

14,25917,521

6,575

12,646

Deferred tax assets
Other

8,975
14,5708,908
13,705

Allowance for doubtful accounts(15,532)(19,144)

Total investments and other assets

56,62758,531

702,707

1,331,019

2,166,252

3,941,616

Accounts payable - trade
Short-term loans payable

338,410100,000

403,841–

Current portion of long-term loans payable
Accounts payable - other

86,210127,295

25,300178,424

Accrued expenses
Income taxes payable

7,972
103,075

10,692
171,871

Deposits received
Other

4,695
32,829

5,345
2,728

Total current liabilities

800,490798,203

Non-current liabilities
Long-term loans payable

42,070–

Guarantee depositedOther

112,0113,172

119,245
1,955

Total non-current liabilities

157,254

121,201

957,744919,404

10,495

701,787

Capital surplus
Legal capital surplus

495

691,787

Total capital surpluses

495

691,787

1,197,517

1,628,807

1,197,517

1,628,807–(171)

1,208,507

3,022,211

1,208,507

3,022,211

2,166,252

3,941,616

Total non-current assets
Total assets
Liabilities
Current liabilities

Total liabilities
Net assets
Shareholders' equity
Capital stock

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Non-consolidated statements of income(Thousands of yen)

Net sales
Cost of sales

Fiscal year ended

Fiscal year endedJuly 31, 2017

July 31, 2018

5,245,414

6,547,120

Beginning merchandise and finished goods
Cost of products manufactured

19,8391,551,486

26,6092,052,453

Cost of purchased goods

2,322,665

2,746,506

Total

3,893,992

4,825,569

26,60936,382

3,867,382

4,789,187

1,378,031

1,757,932

Salaries and allowances
Freightage expenses

159,088
160,987

175,441
238,077

Depreciation
Business consignment expenses

19,686
68,651

40,276
144,564

Advertising expenses
Bad debts expenses

150,658
1,714

137,920265

Provision of allowance for doubtful accounts
Other

14,771
326,6214,339
417,511

Total selling, general and administrative expenses

902,181

1,158,396

475,850

599,536

4,695

6,536

Compensation income
Commission fee

48,613
7,209

72,65810,353

Other

4,897

10,986

Total non-operating income

65,415100,534

1,117–

688
7,463

Going public expenses
Provision of allowance for doubtful accounts

–
310

9,982
1,595

Other

423

2,780

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

Operating profit
Non-operating income
Interest income

Non-operating expenses
Interest expenses
Rent expenses

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

1,851

22,510539,414

677,560

238

149

238

149

9,212

7,814

6,211

3,780

15,423

11,594

Profit before income taxes

524,230

666,116

Income taxes - current

157,068

234,058

Income taxes - deferred(10,661)

768

Total income taxes

146,407234,826

Profit377,822431,2895Non-consolidated statements of changes in equity
Fiscal year ended July 31, 2017
(Thousands of yen)
Shareholders' equity
Capital surplus

Capitalstock

Balance at beginning of current period

Retained earnings

Legal capital Total capitalsurplussurplus10,495

495

495

Other
retainedearnings
Retainedearnings
brought
forwardTotal
retainedearnings

819,694

819,694

377,822

377,822

Total

Treasurysharesshareholders'

Total net
assetsequity–830,684

830,684

377,822

377,822

Changes of items during period
ProfitTotal changes of items during period
Balance at end of current period–––

377,822

377,822–

377,822

377,822

10,495495

495

1,197,517

1,197,517–

1,208,507

1,208,507

Fiscal year ended July 31, 2018
(Thousands of yen)
Shareholders' equity
Capital surplus

Capitalstock

Balance at beginning of current period

Retained earnings

Legal capital Total capitalsurplussurplus10,495495

495

687,125

687,125

4,167

4,167

Other
retainedearnings
Retainedearnings
brought
forward1,197,517

Total
retainedearnings

1,197,517

TotalTreasury
sharesshareholders'

Total net
assetsequity–1,208,507

1,208,507

687,125

1,374,250

1,374,250

4,167

8,335

8,335

Changes of items during period
Issuance of new shares
Issuance of new shares - exercise ofshare acquisition rights
Profit431,289431,289

Purchase of treasury shares

431,289431,289

(171)

(171)

(171)

Total changes of items during period

691,292

691,292

691,292

431,289431,289(171)

1,813,703

1,813,703

Balance at end of current period

701,787

691,787

691,787

1,628,807

1,628,807(171)

3,022,211

3,022,211

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, 2017

July 31, 2018524,230

666,116

Depreciation
Increase (decrease) in allowance for doubtful accounts

83,587
11,296

113,404
3,680

Interest and dividend income
Interest expenses(4,696)
1,117(6,536)
688

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

6,211
8,973

3,780
7,664Going public expenses
Decrease (increase) in notes and accounts receivable - trade–(108,225)

9,982(109,063)

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade(5,786)
69,815(12,852)
65,430

Increase (decrease) in accrued consumption taxes
Other, net(705)(53,338)(36,408)(22,660)

Subtotal

532,479

683,224

Interest and dividend income received
Interest expenses paid

4,696
(1,310)

6,536
(496)

Income taxes paid

(109,519)(182,544)

Net cash provided by (used in) operating activities

426,346

506,720

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(192,430)
540(692,472)
1,020

Purchase of intangible assets
Payments of loans receivable(29,894)(14,724)(48,077)(8,917)

Collection of loans receivable
Payments for lease and guarantee deposits

13,550(1,999)17,993
(305)

398
(733)

795
(4,200)18,898(471)

23,947(5,655)(206,866)(715,870)

Cash flows from investing activities

Proceeds from collection of lease and guarantee deposits
Repayments of guarantee deposits received
Proceeds from guarantee deposits received
Purchase of other investments
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable

100,000

100,000–(93,310)(200,000)(102,980)

Proceeds from issuance of common shares
Proceeds from exercise of share options––

1,374,250
8,335

Purchase of treasury shares
Going public expenses

––

(171)
(9,982)

Decrease in short-term loans payable
Repayments of long-term loans payable

Repayments of lease obligations(1,126)(1,216)

Net cash provided by (used in) financing activities

5,563

1,168,234

Net increase (decrease) in cash and cash equivalents

225,042959,085

Cash and cash equivalents at beginning of period

503,113728,156

Cash and cash equivalents at end of period

728,156

1,687,2417