Summary of Financial Results for the Fiscal Year 2021 (Ended December 31, 2021)[Japanese GAAP]
February 10, 2022

Company name: SENSHUKAI CO.,LTD.

Stock exchange: Tokyo Stock Exchange, First Section
8165
URL: https://www.senshukai.co.jp
Mr. Kenji Kajiwara, President and Representative Director
Mr. Tetsuya Takahashi, Director, General Manager, Corporates Headquarters
Tel: +81-6-6881-3220
Scheduled date of annual general meeting of shareholders: March 30, 2022
Scheduled date of payment of dividend: March 31, 2022
Scheduled date of filing of Annual Security Report: March 31, 2022
Preparation of supplementary materials for financial results: Yes
Holding of financial results meeting: Yes (Only a webcast is planned to prevent the spread of COVID -19)
Stock code:
Representative:
Inquiries:(All amounts are rounded down to the nearest millions of yen)

1. Consolidated Financial Results for the Fiscal Year 2021 (January 1, 2021 – December 31, 2021)(1) Consolidated operating results(Percentages represent changes from the same period of the previous fiscal year)
Profit attributable toOperating profit
Ordinary profit
owners of parent

Net sales
Millions of yen%

Millions of yen%

Millions of yen

73,149 (12.2)
349
Fiscal Year 2021
Fiscal Year 2020
83,286(6.6)(389)
Note: Comprehensive income (millions of yen) Fiscal Year 2021: 736 (-%)
Net income per
share

Diluted net income
per share

Yen

Yen

Fiscal Year 2021
6.64
Fiscal Year 2020
(95.23)
Reference: Equity in earnings (losses) of affiliates (millions of yen)

Millions of yen

%

520
308
(3,800)(3,946)
Fiscal Year 2020: (4,219) (-%)-

Return on equity%

Ordinary income
to total assets

Operating income
to net sales

%

%

%

0.9
(10.6)
Fiscal Year 2021: 77

0.9
0.5
(5.5)
(0.5)
Fiscal Year 2020: (3,515)(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

Net assets per share%

Fiscal Year 2021
52,47633,202
Fiscal Year 2020
63,93332,088Reference: Shareholders’ equity (millions of yen) Fiscal Year 2021: 33,202

Yen

63.3
50.2
Fiscal Year 2020: 32,088

708.09699.01(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

(317)
2,428

(603)
(1,557)(3,066)(3,995)

15,665
19,592

Dividend per share
2Q-end 3Q-end Year-end

Total

Fiscal Year 2021
Fiscal Year 2020

2. Dividends
1Q-endFiscal Year 2020
Fiscal Year 2021
Fiscal Year 2022
(forecasts)

Total dividends Payout ratio Dividend on equity(total)(consolidated)(consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

-

0.00
3.00

-

0.00
4.00

0.00
7.00

328

105.4

1.0

-

3.00

-

4.00

7.00

93.8

3. Consolidated Outlook for Fiscal Year 2022 (January 1, 2022 – December 31, 2022)
Net sales
Millions of yen(Percentages represent changes from the same period of the previous fiscal year)
Profit attributable to
Net income per
Operating profit
Ordinary profit
owners of parent
share% Millions of yen% Millions of yen% Millions of yen%

Yen

Full Year 2022
76,000
200
300
350
7.46
Note: Beginning with the fiscal year 2022, Senshukai will apply Accounting Standard for Revenue Recognition ((AccountingStandards Board of Japan (ASBJ) Statement No. 29). The above forecasts incorporate this accounting standard andcomparisons with the previous fiscal year are omitted.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): Yes
Excluded: 3 (Dears Brain Inc., PLANETWORK CO., LTD., WONDERSTAGE Co., Ltd.)
Note: Please refer to “3. Consolidated Financial Statements and Notes, (5) Notes to Consolidated Financial Statements(Changes in Significant Subsidiaries during the Period)” on page 14 for further information.

(2) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(3) Number of shares outstanding (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
Fiscal Year 2021:

52,056,993 sharesFiscal Year 2020:

52,056,993 sharesFiscal Year 2020:

6,151,627 sharesFiscal Year 2020:

41,440,388 shares

2) Number of treasury shares at the end of the period
Fiscal Year 2021:

5,167,335 shares

3) Average number of shares outstanding during the period
Fiscal Year 2021:

46,444,898 shares(Reference) Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for Fiscal Year 2021 (January 1, 2021 – December 31, 2021)(1) Non-consolidated operating results(Percentages represent changes from the same period of the previous fiscal year)
ProfitOperating profit
Ordinary profit

Net sales
Fiscal Year 2021
Fiscal Year 2020

Fiscal Year 2021
Fiscal Year 2020

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

67,19071,157

(5.6)
11.2

1,005
2,883

(65.1)
-

1,304
2,827

(53.9)-(2,939)1,803(75.8)Net income per share

Diluted net income per share

Yen

Yen

(63.28)43.53-(2) Non-consolidated financial position
Total assets
Millions of yen

Net assets

Equity ratio

Millions of yen

Fiscal Year 2021
50,76332,264
Fiscal Year 2020
56,257
34,694
Reference: Shareholders’ equity (millions of yen) Fiscal Year 2021: 32,264

Net assets per share
%

63.6
61.7
Fiscal Year 2020: 34,694

Yen

688.09755.79* This financial report is not subject to audit by certified public accountants or auditing firms.
* Cautionary statement with respect to forward-looking statements
Cautionary statement with respect to forecasts
The above projections are based on information available at the time of release of this report. Actual results could differ
significantly from these projections due to a variety of factors. For further details regarding the projections, please refer to page
4.
How to view supplementary information at the financial results meeting
There will be no meeting for the presentation of financial results for 202 1 because of the COVID-19 pandemic. A video of thispresentation is planned to be posted on the Senshukai website soon. In addition, materials used for this presentation will be
disclosed using the Timely Disclosure network (TDnet) and will be posted on the Senshukai website.

SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021

Contents of Attachments
1. Overview of Results of Operations

2(1) Results of Operations

2(2) Financial Position

3(3) Cash Flows3(4) Basic Policy Regarding Distribution of Earnings and Dividends in the Current and Next Fiscal Years

4(5) Outlook

4

2. Basic Approach for the Selection of Accounting Standards

5

3. Consolidated Financial Statements and Notes

6(1) Consolidated Balance Sheet

6(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

8

Consolidated Statement of Income

8

Consolidated Statement of Comprehensive Income

10(3) Consolidated Statement of Changes in Equity

11(4) Consolidated Statement of Cash Flows

13(5) Notes to Consolidated Financial Statements

14

Going Concern Assumption

14

Changes in Significant Subsidiaries during the Period

14

Important Changes in the Scope of Application of the Equity Method

14

Additional Information

14

Segment Information

15

Per Share Information

18

Significant Subsequent Events

18

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SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021

1. Overview of Results of Operations(1) Results of Operations
Overview
In 2021, the business environment remained difficult due to repeated declarations of a state of emergency following
the resurgence of COVID-19 and to restrictions on economic activity. During the second half of 2021, although
restrictions on economic activity were gradually reduced as more people received vaccinations, the outlook for the
economy remains uncertain because of a rapid increase in COVID-19 caused by the Omicron variant.
In Japan’s retail industry, store sales continue to face challenges due to restrictions on going out and reduced opening
hours. Mail-order and online shopping sales are growing steadily because these are firmly established as shopping
channels among consumers. The growth of e-commerce is attracting a growing number of new competitors, resulting
in even more heated competition. Furthermore, a full-scale recovery of Japan’s retail sector is unlikely to happen
soon because of the decline in demand linked to staying home for safety during the pandemic and the low level ofconsumer motivation to make purchases.
In this business environment, sales were firm in the mail-order and online shopping business compared with 2019pre-pandemic levels. However, sales in this business decreased because the upturn in demand associated with stayat-home consumption caused by the pandemic settled down compared to the 2020 level. Beginning with the second
quarter of 2021, the bridal business was no longer included in the consolidated financial statements because of thesale of shares of three subsidiaries at the end of the first quarter as part of activities involving a reexamination of
the Senshukai Group’s business portfolio. As a result, net sales in 2021 were down 12.2% to 73,149 million yen. For
the same reasons, the mail-order and online shopping businesses reported a decline in earnings, but the bridal
business reported fewer losses. As a result, there was an operating profit of 349 million yen compared with a loss of
389 million yen in 2020. Ordinary profit was 520 million yen compared with a loss of 3,800 million yen in 2020.
Profit attributable to owners of parent was 308 million yen compared with a loss of 3,946 million yen in 20 20.
Business segment performance was as follows.
Beginning with the first quarter of 2021, the credit card business, which was formerly included in the insurance andcredit card business segment, has been reclassified and included in the mail-order and online shopping businesssegment for better coordination to the membership measures in this business. Due to this change, the insurance andcredit card business segment has been renamed as the “insurance business” segment. Prior-year segment information
has been revised to incorporate this new segment to permit comparisons.
(Mail-order and Online Shopping Business)
Consolidated sales in the mail-order and online shopping business, which is primarily the catalog and the Internet
businesses, decreased 4.7% year-over-year to 64,325 million yen in 2021. Operating profit decreased 66.1% to 894
million yen.
Although the number of members making purchases increased steadily by comparison to the prepandemic 2019, thelevel of special demand for stay-at-home consumption eased from the level recorded in 2020. Other reasons for thedecrease in sales and earnings included the strengthening of the framework for the implementation of the medium term management plan announced in July 2021, and the increase in fees and person nel expenses incurred to get
ready for the 2022 renewal of the core IT system, which is an essential premise for our business reform using digitaltechnologies.
(Bridal Business)
Consolidated subsidiaries Dears Brain Inc. and PLANETWORK CO., LTD., and WONDERSTAGE Co., Ltd., awholly owned subsidiary of Dears Brain and a sub-subsidiary of Senshukai, were excluded from the scope of
consolidation following the sales of all shares of Dears Brain and PLANETWORK on March 31, 2021. In 2021,
when the Group had withdrawn from these businesses, consolidated sales in the bridal business decreased 79.4%
year-over-year to 1,733 million yen and there was an operating loss of 1,045 million yen compared with a loss of
3,728 million yen in 2020.

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SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021

(Corporates Business)
Consolidated sales in the corporates business, which provides products and services to corporations, decreased 7.1%
year-over-year to 4,732 million yen. Operating profit decreased 34.8% to 302 million yen.
Although orders for outsourced logistics and call center services increased due to the expansion of mail-order sales
to corporate clients, both sales and earnings decreased because of a downturn in the demand for products used forprotection against becoming infected during the pandemic.
(Insurance Business)
This business provides support, mainly to Belle Maison members, for choosing the most suitable insurance policies.
Consolidated sales increased 4.7% year-over-year to 420 million yen and operating profit decreased 1.7% to 189
million yen.
(Others)
Consolidated sales in other businesses, which include childcare support business and manufacturing and sales ofcosmetics, increased 3.0% year-over-year to 1,938 million yen. Operating profit decreased 80.5% year-over-year to
7 million yen.
In the childcare support business, earnings decreased because of higher expenses for recruiting activities and forfees and other expenses required for opening new childcare facilities.
(2) Financial Position
Consolidated subsidiaries Dears Brain Inc. and PLANETWORK CO., LTD., and WONDERSTAGE Co., Ltd., awholly owned subsidiary of Dears Brain and a sub-subsidiary of Senshukai, were excluded from the scope of
consolidation following the sales of all shares of Dears Brain and PLANETWORK in 2021.
Main reason for the following decreases in property, plant and equipment, goodwill and long-term borrowings is theeffect of the exclusion of these companies from the consolidation.
Assets totaled 52,476 million yen at the end of 2021, a decrease of 11,457 million yen from the end of 2020.
Current assets decreased 3,149 million yen to 34,463 million yen. The factors included a decrease of 3,927 million
yen in cash and deposits. Non-current assets decreased 8,307 million yen to 18,013 million yen. The factors included
decreases of 8,196 million yen in property, plant and equipment, 1,203 million yen in goodwill and 1,157 million
yen in investments and other assets. There was an increase of 2,249 million yen in intangible assets excluding
goodwill because of ongoing activities for the replacement of the main IT system.
Current liabilities decreased 5,363 million yen to 15,966 million yen. The factors included decreases of 2,713 million
yen in short-term borrowings, 858 million yen in accounts payable-trade and 742 million yen in accounts payableother. Non-current liabilities decreased 7,207 million yen to 3,307 million yen. The main factors were decreases of
5,840 million yen in long-term borrowings and 712 million yen in asset retirement obligations.
Net assets increased 1,113 million yen to 33,202 million yen. The factors included booking of profit attributable toowners of parent of 308 million yen, and a decrease of 572 million yen in treasury shares due to disposal of treasury
shares for restricted stock compensation. As a result, the equity ratio was 63.3%.
(3) Cash FlowsThe balance of cash and cash equivalents at the end of 2021 was 15,665 million yen, a decrease of 3,927 million
yen from the end of 2020.
Operating activities used net cash of 317 million yen (net cash provided of 2,428 million yen in 2020). The main
cash inflows were depreciation of 981 million yen, an increase in trade payables of 567 million yen and profit before
income taxes of 399 million yen. The main cash outflows include an increase in inventories of 2,069 million yen.
Investing activities used net cash of 603 million yen (net cash used of 1,557 million yen in 2020). The main cash
inflows include proceeds from sale of shares of subsidiaries resulting in change in scope of consolidation of 2,773
million yen. The main cash outflows include 3,025 million yen for the purchase of intangible assets and 458 million
yen for the purchase of property, plant and equipment.
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SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021

Financing activities used net cash of 3,066 million yen (net cash used of 3,995 million yen in 2020). The main cash
outflows were a decrease in short-term borrowings of 2,100 million yen and repayments of long-term borrowingsof 774 million yen.
Cash flow indicesFiscal Year 2019
Fiscal Year 2020
Fiscal Year 2021
(As of Dec. 31, 2019) (As of Dec. 31, 2020) (As of Dec. 31, 2021)
Equity ratio (%)
57.7
50.2
63.3
Equity ratio based on fair value (%)
28.6
23.3
34.8
Ratio of interest-bearing debt to cash flows (years)
3.7
5.3
Interest coverage ratio (times)
23.1
17.3
Notes: 1. Cash flow indices are calculated, using consolidated financial figures, as follows:
The equity ratio is shareholders’ equity divided by total assets.
The equity ratio based on fair value is market capitalization divided by total assets.
The ratio of interest-bearing debt to cash flows is interest-bearing debt divided by the quantity of operating cash flows.
The interest coverage ratio is operating cash flows divided by interest payments.
2. Market capitalization is calculated by multiplying the closing share price at the end of the period by the number ofshares issued and outstanding at the end of the period, excluding treasury shares.
3. Interest-bearing debt includes short-term borrowings, long-term borrowings, and lease obligations shown on the
consolidated balance sheet.
4. Operating cash flows and interest payments represent net cash provided by (used in) operating activities andinterest expenses paid, respectively, on the consolidated statement of cash flows.
5. Ratio of interest-bearing debt to cash flows and interest coverage ratio are not shown for Fiscal Year 20 21 because
operating cash flows were negative.

(4) Basic Policy Regarding Distribution of Earnings and Dividends in the Current and Next Fiscal Years
The Senshukai Group’s policy regarding dividends is to distribute earnings to shareholders in a manner that reflects
its performance. Furthermore, the policy is to pay stable dividends that take into account the payout ratio of 30% on
a consolidated basis while reflecting the need to use retained earnings to strengthen the company’s foundation forbusiness operations. Senshukai has a shareholder benefit program that distributes to shareholders twice every year
gift certificates based on the number of shares and the number of years the shares have been held. This program isalso a way to give shareholders a better understanding of Senshukai by using the company’s products and services.
We plan a total annual dividend of 7 yen per share, comprised of a year-end dividend of 4 yen per share, and aninterim dividend of 3 yen per share, in line with the initial forecast.
For 2022, based on the outlook for results of operations, medium- to long-term financial condition and other items,
we plan to pay an interim dividend of 3 yen and a year-end dividend of 4 yen for a total of 7 yen. We are determined
to make substantial distributions to shareholders, including through the shareholder benefit program, as we achieve
growth of corporate value.
(5) Outlook
Consolidated(Millions of yen)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Fiscal Year 2022 (forecast)
76,000200
300
350
Fiscal Year 2021 (results)
73,149349
520
308
Change (%)
Note: Beginning with the fiscal year 2022, Senshukai will apply Accounting Standard for Revenue Recognition (ASBJ
Statement No. 29). The above forecasts incorporate this accounting standard and comparisons with the previous fiscal
year are omitted.

In 2022, which is the second year of the current medium-term management plan covering the period from 2021 to2025, there will be numerous reforms and innovations with the goal of rebuilding the business model for the mailorder and online shopping business. Maximizing the utilization value of Senshukai products and services is theprimary goal of the management plan. To accomplish this goal, we plan to use our equity and business alliance with

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SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021

East Japan Railway Company (JR East), which we established in September 2020, and our partnerships with othercompanies to strengthen our lineup of merchandise and launch new services. To build a stronger customer base, w ewill use many initiatives involving catalogs, digital communication channels, and e-commerce sales promotions thattarget chiefly mobile links. These measures are aimed at adding new members and retaining current members. In
addition, we will replace the core IT system that will be the main infrastructure for all these business process
reengineering activities. We forecast a decline in operating profit because expenditures for these activities with thegoal of achieving medium-term growth.
The Senshukai Group started a five-year medium-term management plan in July 2021 that will end in 2025. Bybuilding an innovative co-creation model centered on the mail-order and online shopping business, we are aiming
to raise sales to 90,000 million yen, operating profit to 4,000 million yen and the return on equity to at least 8% in
2025.
The Three Main Goals of the Medium-term Management Plan
(1) Be a source of unique products and services that can be integral elements of our customers’ lives by reflecting
in our products and services a broad range of values and lifestyles and an accurate understanding of customers’
lifestyles.
(2) Use close ties with customers to supply more products that are environmentally responsible, can be used withconfidence, and make customers excited to purchase and use. Increase measures for the recycling and reuseof merchandise (maximize utilization value*) for contributing to a sustainable society where all products areused as much as possible.
(3) Play a role in the establishing of a co-creation society that brings together people and companies that share thesame values and encompasses many types of lifestyles.
* Utilization value is the sum of the value of goods and services (quality, price, accuracy of meeting needs,
attractive and practical designs, materials/ideas for products people like and use a long time, and otherattributes) and the value of those goods and services during and after their use.
* These forecasts are based on assumptions using information available when this report was released. Actual resultsof operations may differ from these forecasts for a variety of reasons, including the negative effects of theresurgence of COVID-19.
2. Basic Approach for the Selection of Accounting Standards
The Senshukai Group has a policy of preparing its consolidated financial statements using Japanese GAAP for thetime being to facilitate comparisons with prior-year performance and the performance of other companies in Japan.
We will take suitable actions with regard to the application of the International Financial Reporting Standards (IFRS)
by taking into account trends in our industry peers in Japan and associated factors in Japan and other countries.

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SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet(Millions of yen)
Fiscal Year 2021
(As of Dec. 31, 2021)

Fiscal Year 2020
(As of Dec. 31, 2020)
AssetsCurrent assets
Cash and deposits

19,592

15,665

Notes and accounts receivable-trade

3,695

2,235

Merchandise and finished goods

7,173

9,123

Raw materials and supplies

265

154

Accounts receivable-other

5,529

5,654

Other

1,484

1,756

Allowance for doubtful accounts

(129)

(126)

37,612

34,46335,04520,745

Accumulated depreciation(24,403)(16,669)

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

10,641

4,076

Machinery, equipment and vehicles

6,735

6,688

Accumulated depreciation(6,518)(6,499)

217

188

2,324

1,115

(2,082)

(984)

242

130

6,809

5,524

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets

629

15

Accumulated depreciation

(421)

(15)

Leased assets, net

207-Construction in progress

58

60

18,176

9,980

Goodwill

1,203-

Intangible assets in progress

1,480

2,683

474

1,521

3,158

4,204

Investment securities

2,102

2,493

Leasehold and guarantee deposits

1,551

497

282

16

1,170

912

Total property, plant and equipment
Intangible assets

Other
Total intangible assets
Investments and other assets

Deferred tax assets
Other
Allowance for doubtful accounts

(120)

(90)

Total investments and other assets

4,986

3,828

26,32118,01363,93352,476

Total non-current assets
Total assets-6-

SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021

(Millions of yen)
Fiscal Year 2021
(As of Dec. 31, 2021)

Fiscal Year 2020
(As of Dec. 31, 2020)
Liabilities
Current liabilities
Electronically recorded obligations-operating

6,185

6,612

Accounts payable-trade

3,620

2,761

Short-term borrowings

3,263

550

122

29

Lease obligations
Accounts payable-other

4,721

3,979

Accrued expenses

890

649

Income taxes payable52

22

Accrued consumption taxes

418

44

Provision for sales promotion expenses
Provision for bonuses for directors (and otherofficers)
Provision for bonuses

216

258

-

6

194

33

Other

1,644

1,018

Total current liabilities

21,33015,966

8,845

3,005

Lease obligations

683

44

Deferred tax liabilities

1460

Non-current liabilities
Long-term borrowings

Retirement benefit liability

5

6

Asset retirement obligations

857

145

Other

108

45

Total non-current liabilities

10,514

3,307

31,845

19,274

Share capital

100

100

Capital surplus

30,26430,084Retained earnings

6,768

7,061

Total liabilities
Net assets
Shareholders’ equity

Treasury shares(3,525)(2,953)

Total shareholders’ equity

33,60634,291

Valuation difference on available-for-sale securities

195

267

Deferred gains or losses on hedges

(78)

119

(1,516)(1,516)(118)

38(1,518)(1,089)32,08833,202

63,93352,476

Accumulated other comprehensive income

Revaluation reserve for land
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-7-

SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)Fiscal Year 2020
(Jan. 1, 2020 – Dec. 31, 2020)(Millions of yen)
Fiscal Year 2021
(Jan. 1, 2021 – Dec. 31, 2021)

Net sales

83,286

73,149

Cost of sales

40,97336,457Gross profit

42,31336,692

Freight and packing costs

5,023

4,821

Promotion expenses

Selling, general and administrative expenses
10,1508,836Provision for allowance for sales promotion expenses

216

258

Provision of allowance for doubtful accounts

120

76

3

-

209

214

6,067

4,588

615

756

Bad debt expenses
Remuneration for directors (and other officers)
Salaries and allowances
Bonuses
Provision for bonuses for directors (and other officers)
Provision for bonuses

-

6

189

104

Depreciation

1,751

915

Other

18,353

15,763

Total selling, general and administrative expenses

42,702

36,342(389)

349

Interest income

21

10

Dividend income
Share of profit of entities accounted for using equity
methodGain on adjustment of account payable

41

31

-

77

166

115

-

72

Subsidy income

423

165

Miscellaneous income

177

144

Total non-operating income

831

617

141

77

3,515

-

Operating profit (loss)
Non-operating income

Foreign exchange gains

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodRental expenses on real estate-

50

Commission expenses

414

248

Miscellaneous losses

170

70

4,242

446

(3,800)520

Total non-operating expenses
Ordinary profit (loss)-8-

SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021

Fiscal Year 2020
(Jan. 1, 2020 – Dec. 31, 2020)(Millions of yen)
Fiscal Year 2021
(Jan. 1, 2021 – Dec. 31, 2021)

Subsidy income

18

162

Other

13

0

Total extraordinary income

32

163

20

10

Extraordinary income

Extraordinary losses
Loss on sale and retirement of non-current assets
Loss on tax purpose reduction entry of non-current
assetsImpairment losses

18

151

141

-

Loss on valuation of investment securities

40-

Loss on sale of shares of subsidiaries and associates-

11

Loss on disaster

14-

Loss on change in equity-

110

Total extraordinary losses

235

284

Profit (loss) before income taxes(4,002)

399

Income taxes-current

60

45

Income taxes-deferred

(117)

45

Total income taxes

(56)

90

Profit (loss)(3,946)

308

Profit (loss) attributable to owners of parent(3,946)308-9-SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021

(Consolidated Statement of Comprehensive Income)Fiscal Year 2020
(Jan. 1, 2020 – Dec. 31, 2020)(Millions of yen)
Fiscal Year 2021
(Jan. 1, 2021 – Dec. 31, 2021)(3,946)

308

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities

(169)

73

Deferred gains or losses on hedges

(101)

184

(3)

(16)

1

187

Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests- 10 -(272)

428(4,219)736(4,219)736--

SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021

(3) Consolidated Statement of Changes in Equity
Fiscal Year 2020 (Jan. 1, 2020 – Dec. 31, 2020)(Millions of yen)
Share capital

Capital surplus

100

39,544

Balance at beginning of period

Shareholders’ equity
Retained
Treasury sharesearnings
10,891(6,800)Total shareholders’equity43,736

Changes during period
Dividends of surplus
Loss attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Cancellation of treasury
sharesChange in scope of equity
methodNet changes in items otherthan shareholders’ equity
Total changes during period

(180)

(180)

(3,946)(3,946)(8,005)(8,005)(1,275)

3,275

1,999

(8,005)

8,005

-

2

Balance at end of period

2-(9,280)(4,123)

3,274(10,129)100

30,264

6,768(3,525)33,606(Millions of yen)

Accumulated other comprehensive income
Valuation
Total
DeferredForeigndifference on
Revaluation
Remeasurements accumulated
gains orcurrency
available-forreserve forof definedotherlosses ontranslation
sale
land
benefit planscomprehensive
hedgesadjustment
securities
incomeBalance at
beginning of period
Changes during
periodDividends ofsurplus
Loss attributable toowners of parent
Purchase oftreasury shares
Disposal oftreasury shares
Cancellation oftreasury shares
Change in scope ofequity method
Net changes in
items other thanshareholders’equityTotal changes during
periodBalance at end of
period366

49(1,516)

(120)

(24)

(1,245)

Total net assets

42,490(180)(3,946)(8,005)
1,999
2
(171)

(127)

(0)

1

24

(272)

(272)

(171)

(127)

(0)

1

24

(272)

(10,402)

195

(78)

(1,516)(118)-(1,518)32,088- 11 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021

Fiscal Year 2021 (Jan. 1, 2021– Dec. 31, 2021)(Millions of yen)
Share capital

Capital surplus

100

30,264

Balance at beginning of period

Shareholders’ equity
Retained
Treasury sharesearnings
6,768(3,525)

Total shareholders’equity33,606

Changes during period
Dividends of surplus
Profit attributable to ownersof parent
Purchase of treasury shares
Disposal of treasury shares
Change in scope of equity
methodNet changes in items otherthan shareholders’ equity
Total changes during period

(140)

(140)

308

308

(179)

(0)

(0)

572

392

125

Balance at end of period

125

-

(179)

293

572

685

100

30,084

7,061(2,953)34,291(Millions of yen)

Accumulated other comprehensive income
Valuation
Total accumulated
DeferredForeign currency
Total net assets
difference on
Revaluation
othergains or losses
translation
available-forreserve for landcomprehensive
on hedges
adjustment
sale securities
incomeBalance at beginning of
periodChanges during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in scope ofequity method
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period195(78)(1,516)(118)(1,518)32,088
(140)
308
(0)
392
125

72

198

-

157

428

428

72

198

-

157

428

1,113

267

119

(1,516)38(1,089)33,202- 12 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021

(4) Consolidated Statement of Cash Flows
Fiscal Year 2020
(Jan. 1, 2020 – Dec. 31, 2020)(Millions of yen)
Fiscal Year 2021
(Jan. 1, 2021 – Dec. 31, 2021)(4,002)
1,813
141
(42)

399
981
(15)

(9)

41

(39)
(63)
141

71
(41)
77

3,515

(77)

-

11

40
20
18
(18)
(423)
(13)
180
1,399
(167)
(119)
(736)
388
2,023
160
(139)
(26)
423
(13)
2,428

10
151
(162)
(165)
110
233
(2,069)
114
567
(194)
(396)
(352)
171
(80)
(222)
165
(317)

(644)
(1,213)
18
(15)
-

(458)
(3,025)
162
(295)
103

-

2,773

296
(1,557)

136
(603)

2,100
1,450
(1,240)(8,005)
1,999
(179)
(118)
(3,995)(2,100)
(774)
(0)
(139)
(51)
(3,066)3

60(3,120)22,713
19,592(3,927)
19,592
15,665

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment losses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for sales promotion
expenses
Increase (decrease) in provision for bonuses
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on sale of shares of subsidiaries andassociates
Loss (gain) on valuation of investment securities
Loss (gain) on sale and retirement of non-current assets
Loss on tax purpose reduction entry of non-current assets
Subsidy income
Subsidy income
Loss (gain) on change in equity
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in trade payables
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes refund (paid)
Subsidies received
Payments for business structure reform expenses
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Subsidies received
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from sale of shares of subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Proceeds from disposal of treasury shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 13 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021

(5) Notes to Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Changes in Significant Subsidiaries during the Period)
Specified subsidiaries Dears Brain Inc. and PLANETWORK CO., LTD., and WONDERSTAGE Co., Ltd., a wholly
owned subsidiary of Dears Brain and a sub-subsidiary of Senshukai, were excluded from the scope of consolidation
following the sales of all shares of Dears Brain and PLANETWORK in 2021.
(Important Changes in the Scope of Application of the Equity Method)
During 2021, equity-method affiliate Watabe Wedding Corporation sold newly issued stock by using a third -party
allotment. Due to the resulting reduction in Senshukai’s ownership of this company, Watanabe We dding and one
other company are no longer equity-method affiliates.
(Additional Information)(Application of tax effect accounting associated with the transition from the consolidated taxation system to thegroup tax sharing system)
Senshukai and its consolidated subsidiaries are transitioning to the group tax sharing system that was created by
the Act on Partial Amendments to the Income Tax Act, etc. (Act No. 8 of 2020) and, in conjunction with thistransition, has reexamined items concerning the non-consolidated taxation system. With respect to this transition
and reexamination, Senshukai and its consolidated subsidiaries have not used the provisions of Paragraph 44 of
Implementation Guidance on Tax Effect Accounting (Accounting Standards Board of Japan (ASBJ) Guidance No.
28, February 16, 2018) in accordance with the treatment in Paragraph 3 of Practical Solution on the Treatment of
Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Tax Sharing System(ASBJ Practical Issues Task Force (PITF) No. 39, March 31, 2020). As a result, deferred tax assets and deferred
tax liabilities are based on the tax law prior to these amendments.
(Uncertainty of accounting estimates)
Due to the emergence of the Omicron variant late in 2021, the number of COVID-19 cases increased rapidly inJanuary and February 2022. Due to this outbreak, market conditions remain challenging because of restrictions on
various activities and a decline in consumer spending. The outlook continues to be uncertain, but Senshukai
believes that this situation will have only a negligible effect on business activities of the Senshukai Group. We areusing the best possible estimates in accordance with information that is currently available. However, if some
upcoming event alters the impact of this crisis on business operations, there may be an effect on the Senshukai
Group’s financial soundness, results of operations and cash flows.

- 14 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021

(Segment Information)
1. Overview of reportable segment
Segments used for financial reporting are Senshukai’s constituent units for which separate financial information
is available and for which the Board of Directors performs periodic studies for the purposes of determining theallocation of resources and evaluating performance.
The Senshukai Group primarily operates the mail-order and online shopping business, bridal business, corporates
business and insurance business, and Senshukai and its group companies manage each of these businesses
according to these classifications.
Therefore the Group, comprised of these different business segments, has four reportable segments: the mail -orderand online shopping business, bridal business, corporates business and insurance business.
The mail-order and online shopping business is engaged in mail-order sales via a variety of media centered on
catalogs and the Internet. The bridal business provid mostly house wedding services. However, consolidated
subsidiaries Dears Brain Inc. and PLANETWORK CO., LTD., and WONDERSTAGE Co., Ltd., a wholly owned
subsidiary of Dears Brain and a sub-subsidiary of Senshukai, were excluded from the scope of consolidation
following the sales of all shares of Dears Brain and PLANETWORK on March 31, 2021. As a result, the Gr oup
had withdrawn from these businesses. The corporates business uses Senshukai’s infrastructure to provide solutions
services and promotional services targeting mail-order companies and e-commerce businesses. The insurance
business provides insurance primarily to Belle Maison members.
Beginning with the first quarter of 2021, the credit card business, which was formerly included in the insurance
and credit card business segment, has been reclassified and included in the mail-order and online shopping
business segment for better coordination to the membership measures in this business. Due to this change, theinsurance and credit card business segment has been renamed as the “insurance business” segment.
Prior-year segment information has been revised to incorporate this new segment to permit comparisons.
2. Calculation methods for sales, profit or loss, assets, and other items for each reportable segment
The accounting methods for reportable segments are the same as those used for preparing the consolidated
financial statements.
Profits (loss) for reportable segments are generally operating profit (loss) figures.
Inter-segment sales or transfers are based on market prices.

- 15 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021

3. Information related to sales and profit or loss, assets, and other items for each reportable segment
Fiscal Year 2020 (Jan. 1, 2020 – Dec. 31, 2020)(Millions of yen)

Reportable segment
MailOthers
order and
Bridal Corporates Insurance
onlineSub-total (Note 1)
business businessbusiness
shopping
business

Total

Adjustment(Note 2)

Amounts
shown onconsolidated
financialstatements(Note 3)

Net sales
Sales to customers 67,510
8,400
5,092
401
81,405
1,881 83,286
83,286
Inter-segment
308
14
54
378
0
378
(378)
sales or transfers
Total
67,819
8,414
5,147
401
81,783
1,881 83,664(378)
83,286
Segment profit(3,728)
2,638
464
192
(432)
40
(391)
2
(389)
(loss)
Segment assets
49,097
14,911
1,602
47
65,657
1,761 67,419(3,485)63,933
Other items
Depreciation
543
1,196
15
1,756
56
1,813
1,813
Amortization of
179
179
30
209
209
goodwill
Share of loss
(profit) of entities
accounted for
162(3,677)(3,515)- (3,515)(3,515)using equity
methodInvestment inequity-method
684
684
684
684
affiliates
Increase inproperty, plantand equipment
1,328
379
30
1,738
54
1,792
1,792
and intangible
assets
Notes: 1. Others represent the businesses which are not included in any of the four reportable segments and consist of thechildcare support business and manufacturing and sales of cosmetics.
2. Adjustments are as follows.
(1) The 2 million yen adjustment to segment profit (loss) is an elimination for inter-segment transactions.
(2) The (3,485) million yen adjustment to segment assets is an elimination for inter-segment transactions.
3. Segment profit (loss) is adjusted to be consistent with the operating loss on the consolidated statement of income.

- 16 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021

Fiscal Year 2021 (Jan. 1, 2021 – Dec. 31, 2021)(Millions of yen)

Reportable segment
Mailorder andBridal Corporates Insurance
onlineSub-total
business business businessshopping
business

Others(Note 1)

Total

Amounts
shown onAdjustment consolidated(Note 2)
financialstatements(Note 3)

Net sales
Sales to customers
64,325
1,733
4,732
420
71,211
1,938
73,14973,149Inter-segment
281
5
36
323
0
324
(324)
sales or transfers
Total
64,607
1,738
4,769
420
71,535
1,938
73,473(324)
73,149Segment profit894(1,045)
302
189
341
7
349
0
349
(loss)
Segment assets
50,2541,362
42
51,6591,648
53,307(830)
52,476
Other items
Depreciation
630
282
13
926
54
981
981
Amortization of
44
44
44
44
goodwill
Share of loss
(profit) of entities
accounted for
143
(66)
77
77
77
using equity
methodInvestment inequity-method
641
641
641
641
affiliates
Increase inproperty, plantand equipment
2,869
7
16
2,894
264
3,158
3,158
and intangible
assets
Notes: 1. Others represent the businesses which are not included in any of the four reportable segments and consist of thechildcare support business and manufacturing and sales of cosmetics.
2. Adjustments are as follows.
(1) The 0 million yen adjustment to segment profit (loss) is an elimination for inter-segment transactions.
(2) The (830) million yen adjustment to segment assets is an elimination for inter-segment transactions.
3. Segment profit (loss) is adjusted to be consistent with the operating profit on the consolidated statement of income.

- 17 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2021

Per Share Information

Net assets per share

Fiscal Year 2020
(Jan. 1, 2020 – Dec. 31, 2020)
699.01(Yen)
Fiscal Year 2021
(Jan. 1, 2021 – Dec. 31, 2021)
708.09(95.23)
6.64
Net income (loss) per share
Notes: 1. Diluted net income per share in Fiscal Year 2021 is not presented since Senshukai has no outstanding dilutive securities.
2. Diluted net income per share in Fiscal Year 2020 is not presented since Senshukai has no outstanding dilutive
securities, and posted a net loss.
3. Basis for calculation of net income (loss) per share is as follows.
(Millions of yen)
Fiscal Year 2020
Fiscal Year 2021
(Jan. 1, 2020 – Dec. 31, 2020) (Jan. 1, 2021 – Dec. 31, 2021)
Profit (loss) attributable to owners of parent(3,946)308
Amounts unavailable to common shareholders
Profit (loss) attributable to owners of parent related tocommon stock
Average number of shares outstanding during the period(thousand shares)--(3,946)308

41,44046,444Significant Subsequent Events
Not applicable.

* This financial report is solely a translation of summary of “Kessan Tanshin” (in Japanese, including attachments), which has
been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenie nce ofreaders who prefer an English translation.

- 18 -