Summary of Financial Results for the Fiscal Year 2022 (Ended December 31, 2022)[Japanese GAAP]
February 13, 2023

Company name: SENSHUKAI CO.,LTD.

Stock exchange: Tokyo Stock Exchange
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, 2023
Scheduled date of payment of dividend: Scheduled date of filing of Annual Security Report: March 31, 2023
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 2022 (January 1, 2022 – December 31, 2022)(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

58,915(8,139)Fiscal Year 2022
73,149 (12.2)
349
Fiscal Year 2021
Note: Comprehensive income (millions of yen) Fiscal Year 2022: (11,020) (-%)%

Millions of yen(7,889)520
Fiscal Year 2021: 736 (-%)

(10,976)308%-

Net income per
share

Diluted net income
per share

Return on equity

Ordinary income
to total assets

Operating income
to net sales

Yen

Yen

%

%

%

(39.8)(17.3)(13.8)
Fiscal Year 2022
(234.24)
0.9
0.9
0.5
Fiscal Year 2021
6.64
Reference: Equity in earnings (losses) of affiliates (millions of yen) Fiscal Year 2022: 15
Fiscal Year 2021: 77
Note: Starting with the beginning of 2022, Senshukai has applied Accounting Standard for Revenue Recognition (AccountingStandards Board of Japan (ASBJ) Statement No. 29, March 31, 2020). All figures for 2022 incorporate this accounting
standard and comparisons with 2021 are omitted.

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

Net assets per share%

Yen

Fiscal Year 2022
38,92322,01956.5
469.79Fiscal Year 2021
52,47633,20263.3
708.09Reference: Shareholders’ equity (millions of yen) Fiscal Year 2022: 21,999
Fiscal Year 2021: 33,202
Note: Starting with the beginning of 2022, Senshukai has applied Accounting Standard for Revenue Recognition (ASBJ Statement
No. 29, March 31, 2020). All figures for 2022 incorporate this accounting standard.

(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(5,869)
(317)

(706)
(603)

148
(3,066)

9,287
15,665

Fiscal Year 2022
Fiscal Year 2021

2. Dividends
1Q-endDividend per share
2Q-end 3Q-end Year-end

Yen

Yen

Yen

Yen

Total
Yen

Total dividends Payout ratio Dividend on equity(total)(consolidated)(consolidated)
Millions of yen

Fiscal Year 2021
3.00
4.00
7.00
0.00
0.00
Fiscal Year 2022
0.00
Fiscal Year 2023
0.00
(forecasts)
Note: The year-end dividend forecast for 2023 has not been determined at this time.

328
-

%

%

105.4
-

1.0
-

-

3. Consolidated Outlook for Fiscal Year 2023 (January 1, 2023 – December 31, 2023)(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

Net sales
Millions of yen

Full Year 2023

66,200% Millions of yen

12.4

500

% Millions of yen% Millions of yen

%

Yen

-

-

-

3.20

400

150

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): Yes
Newly added: 2 (Senshukai Make Co- Inc., WellServe Co., Ltd.)
Excluded: 1 (Huit laboratories, Inc.)
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 15 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: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None
Note: Please refer to “3. Consolidated Financial Statements and Notes, (5) Notes to Consolidated Financial Statements(Changes in Accounting Policies)” on page 15 for further information.

(3) Number of shares outstanding (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
Fiscal Year 2022:

52,056,993 sharesFiscal Year 2021:

52,056,993 sharesFiscal Year 2021:

5,167,335 sharesFiscal Year 2021:

46,444,898 shares

2) Number of treasury shares at the end of the period
Fiscal Year 2022:

5,229,999 shares

3) Average number of shares outstanding during the period
Fiscal Year 2022:

46,860,574 shares(Reference) Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for Fiscal Year 2022 (January 1, 2022 – December 31, 2022)(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 2022
Fiscal Year 2021

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

55,12367,190(5.6)(8,290)1,005(65.1)(7,654)1,304(53.9)(10,913)(2,939)-Net income per share

Diluted net income per share

Yen

Yen

Fiscal Year 2022
(232.89)
Fiscal Year 2021
(63.28)
Note: Starting with the beginning of 2022, Senshukai has applied Accounting Standard for Revenue Recognition (ASBJ Statement
No. 29, March 31, 2020). All figures for 2022 incorporate this accounting standard and comparisons with 2021 are omitted.

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

Net assets

Equity ratio

Millions of yen

Net assets per share%

Yen

Fiscal Year 2022
37,42921,10756.4
450.75
Fiscal Year 2021
50,76332,26463.6
688.09Reference: Shareholders’ equity (millions of yen) Fiscal Year 2022: 21,107
Fiscal Year 2021: 32,264
Note: Starting with the beginning of 2022, Senshukai has applied Accounting Standard for Revenue Recognition (ASBJ Statement
No. 29, March 31, 2020). All figures for 2022 incorporate this accounting standard.
* 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 page4, “1. Overview of Results of Operations, (5) Outlook.”
How to view supplementary information at the financial results meeting
There will be no meeting for the presentation of financial results for 202 2 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 2022

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(6) Important Matters Regarding Going Concern Assumption, etc.

5

2. Basic Approach for the Selection of Accounting Standards

6

3. Consolidated Financial Statements and Notes

7(1) Consolidated Balance Sheet

7(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

9

Consolidated Statement of Income

9

Consolidated Statement of Comprehensive Income11(3) Consolidated Statement of Changes in Equity

12(4) Consolidated Statement of Cash Flows

14(5) Notes to Consolidated Financial Statements

15

Going Concern Assumption

15

Changes in Significant Subsidiaries during the Period

15

Changes in Accounting Policies

15

Additional Information

16

Segment Information

17

Per Share Information

20

Significant Subsequent Events

20

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SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2022

1. Overview of Results of Operations(1) Results of Operations
Overview
Starting with the beginning of 2022, Senshukai has applied Accounting Standard for Revenue Recognition (ASBJ
Statement No. 29, March 31, 2020). As a result, the explanation of results of operations for 2022 does not show theamount of increase or decrease compared with 2021.
During 2022, the impact of COVID-19 on the Japanese economy weakened towards the second half and economic
activity normalized. However, the outlook remains uncertain due to a combination of prolonged geopolitical risks
such as the situation in Ukraine, rising prices resulting from soaring energy and raw material costs, and tighteningof global financial conditions.
In this business environment, the Senshukai Group’s normal business activities were hampered by issues related to
the replacement of the core IT system executed in January 2022. After IT system operations returned to normal,
sales promotion measures were resumed and sales activities expanded, but sales from Belle Maison, the Group ’s
core mail-order and online shopping business, fell significantly year on year, and the inclusion of sales from thebridal business up to the first quarter of 2021, which were subsequently excluded from the scope of consolidation,
also had an effect. As a result, net sales in 2022 were 58,915 million yen (compared with 73,149 million yen in2021), operating loss was 8,139 million yen (compared with a profit of 349 million yen in 2021), and ordinary loss
was 7,889 million yen (compared with a profit of 520 million yen in 2021). Loss attributable to owners of parent
was 10,976 million yen (compared with a profit of 308 million yen in 2021).
Furthermore, our core IT system has grown in size and complexity alongside the growth of the mail-order and online
shopping business, making it difficult to respond to various changes, while the business model of our mail-order andonline shopping business has reached a turning point and systemic flexibility become essential to the futuretransformation of the business. Accordingly, we decided to replace the core IT system with a basic, simple on e whilepressing forward with preparations for reforming our business processes, and completed the replacement of the core
IT system in January 2022, as originally planned. The system is currently operating stably, and business process reengineering (BPR) is being implemented from the starting point of the new, flexible system with the aims of restoringcustomer confidence and returning to profitability.
Business segment performance was as follows.
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. As a result,
the Senshukai Group no longer operates a bridal business. Consequently, there is no longer business segment
information for the bridal business beginning with 2022.
(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, was 52,633 million yen in 2022 compared with 64,325 million yen in 2021. There was an operating lossof 8,405 million yen compared with a profit of 894 million yen in 2021. There were problems involving the launchof the new core IT system following the completion of the replacement of the previous system in January 2022. To
deal with these problems, marketing activities were suspended and the level of normal business activities was
reduced in order to focus on handling inquiries from customers. For a recovery of sales, marketing activities resumed
after IT system operations returned to normal. As sales activities increased, there were other measures for a recoveryof the performance of this business. Despite these measures, the number of members did not return to the prior-yearlevel. In addition, the rising cost of living has led to a greater desire to save money, and the lingering summer heat
has led to a decline in demand for seasonal products. As a result, sales of Bell Maison, the core business of thissegment, were far below sales one year earlier, resulting in lower segment sales and earnings.

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SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2022

(Corporates Business)
Consolidated sales in the corporates business, which provides products and services to corporations, were 4,292
million yen compared with 4,732 million yen in 2021. Operating profit was 48 million yen compared with a profitof 302 million yen in 2021. Although the use of novelties related to corporate shareholder benefits remained strong,sales and earnings decreased because of lower than expected utilization of outsourced logistics and call center
services.
(Insurance Business)
This business provides support, mainly to Belle Maison members, for choosing the most suitable insurance policies.
Consolidated sales were 512 million yen compared with 420 million yen in 2021 and operating profit was 281
million yen compared with a profit of 189 million yen in 2021.
(Others)
Consolidated sales in other businesses, which include the childcare support business and manufacturing and salesof cosmetics, were 1,477 million yen compared with 1,938 million yen in 2021. Operating loss was 64 million yen
compared with a profit of 7 million yen in 2021. The manufacturing and sales of cosmetics business was excluded
from the scope of consolidation following the sales of all shares of Huit laboratories, Inc., which was a consolidated
subsidiary of Senshukai, on April 1, 2022. For more information, please refer to the “Notice of Change inConsolidated Subsidiaries (Transfer of Shares)” released on March 4, 2022 (Japanese version only).
(2) Financial Position
Assets totaled 38,923 million yen at the end of 2022, a decrease of 13,553 million yen from the end of 2021.
Current assets decreased 9,875 million yen to 24,587 million yen. The factors included decreases of 6,377 million
yen in cash and deposits and 2,252 million yen in merchandise and finished goods. Non-current assets decreased
3,678 million yen to 14,335 million yen. The factors included decreases of 2,738 million yen in intangible assets,
649 million yen in property, plant and equipment, and 290 million yen in investments and other assets due to thebooking of impairment losses.
Current liabilities decreased 2,865 million yen to 13,101 million yen. The factors included decreases of 1,740 million
yen in electronically recorded obligations-operating and 774 million yen in accounts payable-other. Non-current
liabilities increased 494 million yen to 3,802 million yen. The main factors included increases of 280 million yen in
long-term borrowings and 127 million yen in other.
Net assets decreased 11,182 million yen to 22,019 million yen. The factors included booking of loss attributable toowners of parent of 10,976 million yen. As a result, the equity ratio was 56.5%.
(3) Cash FlowsThe balance of cash and cash equivalents at the end of 2022 was 9,287 million yen, a decrease of 6,377 million yen
from the end of 2021.
Operating activities used net cash of 5,869 million yen (net cash used of 317 million yen in 2021). The main cash
inflows were impairment losses of 3,054 million yen, a decrease in inventories of 2,105 million yen and depreciationof 1,293 million yen. The main cash outflows include loss before income taxes of 10,850 million yen.
Investing activities used net cash of 706 million yen (net cash used of 603 million yen in 2021). The main cash
inflows include proceeds from sales of shares of subsidiaries resulting in change in scope of consolidation of 626
million yen. The main cash outflows include 1,192 million yen for the purchase of intangible assets and 572 million
yen for purchase of property, plant and equipment.
Financing activities provided net cash of 148 million yen (net cash used of 3,066 million yen in 2021). The main
cash inflows include proceeds from long-term borrowings of 1,000 million yen. The main cash outflows wererepayments of long-term borrowings of 650 million yen.

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SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2022

Cash flow indicesFiscal Year 2020
Fiscal Year 2021
Fiscal Year 2022
(As of Dec. 31, 2020) (As of Dec. 31, 2021) (As of Dec. 31, 2022)
Equity ratio (%)
50.2
63.3
56.5
Equity ratio based on fair value (%)
23.3
34.8
46.4
Ratio of interest-bearing debt to cash flows (years)
5.3
Interest coverage ratio (times)
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 perio d 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 2021 and 2022 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.
Regrettably, no dividend has been allocated for 2022 due to the large loss attributable to owners of parent. For 2023,
based on the outlook for results of operations, medium- to long-term financial condition and other items, we regretthat no interim dividend will be paid and the year-end dividend is yet to be determined, as the promotion of themedium-term management plan and expansion of equity from the viewpoint of management stability and safety are
top priorities.
(5) Outlook
Consolidated
Fiscal Year 2023 (forecast)

66,200500

400(Millions of yen)
Profit attributable toowners of parent
150

Fiscal Year 2022 (results)

58,915(8,139)(7,889)(10,976)

12.4

-

-

-

Net sales

Change (%)

Operating profit

Ordinary profit

In the first half, improving profitability will take time as we continue with planned upfront investments, but themeasures to improve results of operations will have a greater effect in the second half of the year, and the Senshukai
Group expects to achieve profitability over the full year.
Fiscal 2023 is the third year of the medium-term management plan (2021–2025). We will continue ourtransformation through building an innovative co-creation model centered on the mail-order and online shopping
business, aiming for consolidated sales of 90 billion yen, consolidated operating profit of 4 billion yen, and returnon equity of at least 8% in fiscal 2025.

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SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2022

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 wher e 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.
(6) Important Matters Regarding Going Concern Assumption, etc.
The Senshukai Group recorded an operating profit, ordinary profit and profit attributable to owners of parent in
2021. However, sales in 2022 were far below 2021 sales mainly because of problem s involving the launch of the
new core IT system in January 2022. Furthermore, there was a large operating loss, ordinary loss and loss attributableto owners of parent in 2022. Due to the continuing decline in sales even after the resolution of problems involving
the new core IT system, there was an impairment loss of 3,054 million yen based on the result of a comprehensive
examination of the ability to recover these assets in the future based on accounting standards for the impairment of
non-current assets. As a result, there were large losses in 2022: an operating loss of 8,139 million yen, ordinary lossof 7,889 million yen and loss attributable to owners of parent of 10,976 million yen. There are currently significant
doubts about the going concern assumption. The Senshukai Group is taking the following actions in order to end thecurrent problems and improve results of operations.
(Measures to improve results of operations)
The Senshukai Group will continue to focus on numerous measures for increasing sales and earnings. To become
profitable as soon as possible, the main objective is the transformation of the group’s business model by placing
priority on goals of the medium-term business plan, including the digital shift of the mail order and online shopping
business, profit structure reforms, and co-creation with partner companies.
Progress report(1) Digital shift of the mail-order and online shopping businessThis business is currently reexamining promotions centered on catalogs and shifting resources to digital promotional
activities using social networking services (SNS) and other digital channels. As part of these efforts, we are working
to provide enhanced product information on our main products. In addition, in November 2022, we cond ucted alarge-scale, cross-media marketing campaign linked to TV commercials and social networking services. Based on
the results of this campaign, we plan to make more improvements to these activities and continue these linked TV
commercial-SNS marketing activities.
(2) Profit structure reforms
We will move away from conventional catalogue-optimized business operations and focus on original merchandizethat is ideally suited for digital sales channels and highly competitive in open markets. At the same ti me, byunderstanding the values and lifestyles of our customers better than ever, we will strengthen the development of
products that customers enjoy and will use for a long time. We will use sales promotion expenses more effectively-5-SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2022

by cutting back catalog distribution to customers who do not use catalogs for shopping and shift to more effective
digital promotions. Going forward, we plan to maximize return on investment by directing investment to raising theretention rate and purchasing frequency of existing members, in addition to approaching potential new customers.
We will continue to use catalogs as a major tool for promotions and communication with customers who support
this sales channel and will further upgrade the quality of the new ideas, creativity and other innovations in ourcatalogs. In addition, we plan to expand the advertising solutions business as the digital shift takes place in the mail order and online shopping business. We will develop a new advertising menu that utilize Bell Maison Net, an ecommerce website that ranks among the largest in Japan in terms of the number of female members.
(3) Co-creation with partner companies
We are strengthening and expanding our collaboration with East Japan Railway Company (JR East). One ac tivity isdata marketing support based on the ability to contact JRE Point members for the purpose of increasing activity on
JRE MALL. Another is performing tasks outsourced by the JR East Group. Activities involving JR East Group are
adding to the Senshukai Group operations other than mail-order and online shopping and the operation of physicalstores. Expansion of co-creation activities utilizing the assets of Senshukai and JR East will continue. Raising thevalue of the Belle Maison brand and strengthening the Belle Maison membership base are also major goals. One
way is by providing services involving the use and disposal of merchandise, such as the “kimawari” usedmerchandise purchasing service that was started through co-creation with Aucnet, Inc., a provider of informationbased distribution services. Increasing the number of convenient services closely tied to customers ’ lives is anotherway we plan to accomplish these goals. The trial operation of “kimawari” demonstrated that the percentage of“kimawari” customers who continue to use Belle Maison to buy merchandise is dramatically higher than for other
Belle Maison customers. The November grand opening of “kimawari” was very successful. We plan to enlarge
merchandise handled by “kimawari” and speed up other measures in order to use this new service as an importantmeasure for improving the profitability of Belle Maison.
Senshukai’s financial position was sound as of the end of 2022 with an equity ratio of 5 6.5%. In terms of funding,as of the end of 2022, the Group held cash and deposits of 9,287 million yen, and in addition to the existing overdraft
facility of 2,500 million yen, a new facility of 3,000 million yen was established on January 27, 2023, resulting in a
total overdraft facility of 5,500 million yen. Accordingly, there are no concerns about cash flow. The maturity datefor 500 million yen of the existing overdraft facility is May 31, 2023, but in the absence of any specific indicationof intent, this date will automatically be extended for one year.
Moreover, the Group has entered into commitment line contracts totaling 10 billion yen with financial institutions.
At the end of 2022, we were in breach of one of the financial covenants relating to the maintenance of net assets,
but the situation was resolved on January 27, 2023, when the Group agreed to review the contents of this covenantand other matters with financial institutions. The term of the agreement expires on June 30, 2023, and permits
borrowing for up to six months from the date of execution. There were no borrowings outstanding under thisagreement at the end of 2022. We will continue taking steps to ensure that ongoing support is provided.
For these reasons, we believe that there are no significant uncertainties about the going concern assumption.
We plan to return to profitability in 2023 by continuing to adapt with flexibility to changes in the business climate
and taking actions that are needed in a timely manner. From a longer perspective, our goal is to become anorganization that can earn the support of customers for many years and meet the expectations of all stakeholders.
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 2022

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet(Millions of yen)
Fiscal Year 2022
(As of Dec. 31, 2022)

Fiscal Year 2021
(As of Dec. 31, 2021)
AssetsCurrent assets
Cash and deposits

15,665

9,287

Notes and accounts receivable-trade

2,235

-

Notes receivable-trade-249

Accounts receivable-trade

-

1,690

Merchandise and finished goods

9,123

6,871

Raw materials and supplies

154

112

Accounts receivable-other

5,654

5,147

Other

1,756

1,310

Allowance for doubtful accounts

(126)

(82)

34,463

24,587

20,745

19,939

Accumulated depreciation(16,669)(16,134)

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

4,076

3,804

Machinery, equipment and vehicles

6,688

6,332

Accumulated depreciation(6,499)(6,293)

Machinery, equipment and vehicles, net

188

39

1,115

888

Accumulated depreciation

(984)

(803)

Tools, furniture and fixtures, net

130

84

5,524

5,402

Tools, furniture and fixtures

Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress

15

29

(15)

(29)

-

-

60

-

9,980

9,331

Other

4,204

1,465

Total intangible assets

4,204

1,465

2,493

2,417

Leasehold and guarantee deposits

497

473

Deferred tax assets

16

10

Other

912

673

Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities

Allowance for doubtful accounts

(90)

(37)

Total investments and other assets

3,828

3,538

18,013

14,33552,47638,923

Total non-current assets
Total assets-7-

SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2022

(Millions of yen)
Fiscal Year 2022
(As of Dec. 31, 2022)

Fiscal Year 2021
(As of Dec. 31, 2021)
Liabilities
Current liabilities
Electronically recorded obligations-operating

6,612

4,872

Accounts payable-trade

2,761

2,465

Short-term borrowings

550

620

Lease liabilities

29

23

Accounts payable-other

3,979

3,204

Accrued expenses

649

624

Income taxes payable22

19

Accrued consumption taxes

44

35

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

-

589

6

5

258

-

Provision for bonuses

33

31

Other

1,018

608

Total current liabilities

15,966

13,101

Non-current liabilities
Long-term borrowings

3,005

3,285

Lease liabilities

44

30

Deferred tax liabilities

60

144

Retirement benefit liability

6

6

Asset retirement obligations

145

162

Other

45

173

3,307

3,802

19,274

16,903

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital

100

100

Capital surplus

30,08430,084Retained earnings

7,061(4,108)Treasury shares(2,953)(2,953)

Total shareholders’ equity

34,291

23,122

267

286

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

-8-

119

51

(1,516)(1,516)38

56(1,089)(1,123)-20

33,20222,01952,47638,923SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2022

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)Fiscal Year 2021
(Jan. 1, 2021 – Dec. 31, 2021)(Millions of yen)
Fiscal Year 2022
(Jan. 1, 2022 – Dec. 31, 2022)

Net sales

73,14958,915

Cost of sales

36,45730,864Gross profit

36,692

28,050Freight and packing costs

4,821

5,088

Promotion expenses

8,836

9,034

258

-

Selling, general and administrative expenses

Provision for allowance for sales promotion expenses
Provision of allowance for doubtful accounts

76

65

Remuneration for directors (and other officers)

214

230

4,588

4,127

756

637

6

5

Salaries and allowances
Bonuses
Provision for bonuses for directors (and other officers)
Provision for bonuses

104

44

Commission expenses

3,858

5,405

Depreciation

915

1,227

Other

11,904

10,322

Total selling, general and administrative expenses

36,342

36,190349(8,139)

41

39

77

15

115

169

Reversal of allowance for doubtful accounts

180

Rental income from real estate

58

77

Miscellaneous income

322

129

Total non-operating income

617

512

Interest expenses

77

46

Rental expenses on real estate

50

66

Commission expenses

248

113

Miscellaneous losses

70

36

Total non-operating expenses

446

262

520

(7,889)Operating profit (loss)
Non-operating income
Interest and dividend income
Share of profit of entities accounted for using equity
methodGain on adjustment of account payableNon-operating expenses

Ordinary profit (loss)-9-

SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2022

Fiscal Year 2021
(Jan. 1, 2021 – Dec. 31, 2021)(Millions of yen)
Fiscal Year 2022
(Jan. 1, 2022 – Dec. 31, 2022)

Extraordinary income
Gain on sale of non-current assets-

Gain on sale of investment securities-

18

Gain on sale of shares of subsidiaries and associates

-

134

162

188

0

-

163

341

Subsidy income
Other
Total extraordinary income

0

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

10

17

151

173

-

3,054

Loss on sale of shares of subsidiaries and associates

11-

Loss on change in equity

110

-

-

57

Total extraordinary losses

284

3,302

Profit (loss) before income taxes

399(10,850)

Income taxes-current

45

33

Income taxes-deferred

45

103

Total income taxes

90

136

Profit (loss)

308(10,987)

Other

Loss attributable to non-controlling interests

-

(11)

Profit (loss) attributable to owners of parent

308(10,976)- 10 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2022

(Consolidated Statement of Comprehensive Income)Fiscal Year 2021
(Jan. 1, 2021 – Dec. 31, 2021)(Millions of yen)
Fiscal Year 2022
(Jan. 1, 2022 – Dec. 31, 2022)

308(10,987)

Valuation difference on available-for-sale securities

73

18

Deferred gains or losses on hedges

184

(68)

Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method

(16)

1

187

16

428

(33)

736

(11,020)736(11,009)-(11)

Profit (loss)
Other comprehensive income

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests- 11 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2022

(3) Consolidated Statement of Changes in Equity
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 2022

Fiscal Year 2022 (Jan. 1, 2022– Dec. 31, 2022)(Millions of yen)
Share capital

Capital surplus

100

30,084

Balance at beginning of period
Cumulative effects of changes
in accounting policies
Restated balance

Shareholders’ equity
Retained
Treasury sharesearnings
7,061(2,953)

Total shareholders’equity34,291(5)
100

30,0847,055(5)(2,953)34,286

Changes during period
Dividends of surplus
Loss attributable to owners ofparentPurchase of treasury shares
Net changes in items otherthan shareholders’ equity
Total changes during period-

Balance at end of period

100

30,084

(187)

(187)

(10,976)(10,976)(0)(0)(11,164)(0)(11,164)(4,108)(2,953)23,122(Millions of yen)

Accumulated other comprehensive income

Balance at beginningof period
Cumulative effects
of changes inaccounting policies
Restated balance

Valuationdifference on
availablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve for land

Foreigncurrencytranslation
adjustment

267

119

(1,516)38

Total
Nonaccumulated controlling
otherinterests
comprehensive
income(1,089)-Total net
assets33,202
(5)

267

119

(1,516)38(1,089)-33,196

Changes during period
Dividends of surplus
Loss attributable toowners of parent
Purchase of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period(187)(10,976)
(0)
18

(68)

-

17

(33)

20

(12)

18

(68)

-

17

(33)

20

(11,177)

286

51(1,516)56(1,123)20

22,019- 13 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2022

(4) Consolidated Statement of Cash Flows
Fiscal Year 2021
(Jan. 1, 2021 – Dec. 31, 2021)(Millions of yen)
Fiscal Year 2022
(Jan. 1, 2022 – Dec. 31, 2022)

399
981
(15)

(10,850)
1,293
3,054
(96)

41

-

71
(41)
77

18
(39)
46

(77)

(15)

-

(18)

11

(134)

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

17
173
(188)
(1)
194
2,105
1,091
(1,798)(77)(1,023)260(5,988)
67
(46)
96
1
(5,869)(458)(3,025)
162
(295)
103

(572)
(1,192)
187
(15)
19

2,773

626

136
(603)

240
(706)

(2,100)
(774)

1,000
(650)

-

31

(139)
(51)
(3,066)

(186)
(45)
148

60

48

(3,927)
19,592
15,665(6,377)
15,665
9,287

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 investment securities
Loss (gain) on sale of shares of subsidiaries andassociates
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 contract liabilities
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes refund (paid)
Subsidies received
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
Proceeds from share issuance to non-controllingshareholders
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- 14 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2022

(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Changes in Significant Subsidiaries during the Period
Senshukai Make Co- Inc. and WellServe Co., Ltd.) were included in the scope of consolidation in 2022 due tothese establishments. These companies are specified subsidiaries of Senshukai.
Huit laboratories, Inc., a consolidated subsidiary of Senshukai, was excluded from the scope of consolidation
following the sales of all shares of this company in 2022.
Changes in Accounting Policies(Application of the Accounting Standards for Revenue Recognition)
Senshukai is applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31,2020) and other standards from the beginning of 2022. Based on these standards, revenue expected to be received
in exchange for the provision of goods and services is recognized when the control of the goods and services istransferred to customers.
The main changes resulting from the application of the Accounting Standard for Revenue Recognition are as
follows:(1) Revenue recognition concerning the Senshukai Point Program
In prior years, Senshukai maintained a provision for sales promotion expenses based on the expected future use ofpoints that customers receive when they buy Senshukai merchandise in order to prepare for the use of these points.
Additions to this allowance were classified as selling, general and administrative expenses. In accordance with the
new revenue recognition standard, these points are now classified as a performance obligation and recognition ofrevenue is deferred.
(2) Revenue recognition concerning point programs of other companies
In prior years, an amount equivalent to the value of the points of point programs operated by other companies wasclassified as selling, general and administrative expenses. In accordance with the new revenue recognition standard,
the calculation of transaction prices concerning merchandise sale performance obligations to customers now uses
the method of recognizing revenue after deducting transaction prices as the amount recovered for third parties.
(3) Revenue recognition concerning shipping expenses paid by customers
In prior years, shipping expenses received from customers were deducted from selling, general and administrative
expenses. In accordance with the new revenue recognition standard, payments from customers for shipping
expenses are now recognized as revenue because the merchandise shipping service is included in the performanceobligation involving the provision of merchandise to customers.
(4) Revenue recognition concerning sales of merchandise that may be returned
In prior years, for transactions of merchandise that may be returned, the value of merchandise returned bycustomers was deducted from sales when Senshukai confirmed the receipt of the merchandise. In accordance withthe provision of the new revenue recognition standard concerning variable compensation, revenue for merchandisethat is expected to be returned is not recognized when the merchandise is sold. Instead, a refund liability is now
recognized that is equivalent to the payment that was or will be received for th e applicable merchandise.
For the application of the Accounting Standard for Revenue Recognition, in accordance with the transitional
measures in the proviso to Paragraph 84 of this standard, the cumulative effect of the retrospective application of
the new accounting standard, if it is applied prior to 2022, is added to or subtracted from retained earnings at the
beginning of 2022. The new standard is then applied beginning with this amount of retained earnings.
As a result, net sales increased 1,722 million yen and cost of sales decreased 6 million yen. Operating loss increased
51 million yen, and ordinary loss and loss before income taxes increased 52 million yen each in 2022. In addition,- 15 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2022

there was a decrease of 5 million yen in retained earnings at the beginning of 2022.
The effect of these changes in consolidated statement of cash flows and per share information is insignificant.
Due to the application of the Accounting Standard for Revenue Recognition, “Notes and accounts receivable -trade”
that was presented in the current assets section of the consolidated balance sheet in 2021 is, from 2022, stated as“Notes receivable-trade” and “Accounts receivable-trade.” In addition, the amount corresponding to contract
liabilities in the revenue recognition standards, that was included in “Other” presented in the current liabilities
section in 2021 is, from 2022, stated as “Contract liabilities.” In accordance with the transitional measuresprescribed in Paragraph 89-2 of the Accounting Standard for Revenue Recognition, no reclassification has been
made to the prior year’s consolidated financial statements to conform to the new presentation.
Application of the Accounting Standards for Measurement of Fair Value
Senshukai has applied the Accounting Standard for Measurement of Fair Value (ASBJ Statement No. 30, July 4,2019) and other standards from the beginning of 2022, and has applied the new accounting policies set forth by
the Accounting Standard for Measurement of Fair Value, etc. prospectively in accordance with the transitional
measures prescribed in Paragraph 19 of the Accounting Standard for Measurement of Fair Value and Paragraph44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). There is noeffect of the application of these standards on the consolidated financial statements.
Additional Information(Uncertainty of accounting estimates)
During 2022, the impact of COVID-19 on the Japanese economy weakened towards the second half and economic
activity normalized. However, the outlook remains uncertain due to a combination of prolonged geopolitical risks
such as the situation in Ukraine, rising prices resulting from soaring energy and raw material costs, and tighteningof global financial conditions. Senshukai assumes that these factors will have only a limited effect on accounting
estimates. However, due to problems involving the launch of the new core IT system in January 2022, marketing
activities were suspended and the level of normal business activities was reduced in order to focus on handlinginquiries from customers. Due to this situation, sales of Belle Maison in the core mail -order and online shopping
business were far below sales one year earlier, resulting in lower segment sales and earnings. After IT system
operations returned to normal, marketing activities have resumed. The volume of business activities is increasing
and there are new actions for achieving a sales recovery. The entire Senshukai Group is firmly committed torestoring the trust of customers and achieving a recovery in the volume of orders. Although Senshukai is using thebest possible estimates based on information that is currently available, a change in the business climate or
problems involving the new core IT system may have an effect on the financial condition, results of operations
and cash flows of the Senshukai Group.

- 16 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2022

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, corporates business andinsurance business, and Senshukai and its group companies manage each of these businesses according to theseclassifications.
Therefore, the Group, comprised of these different business segments, has three reportable segments: the mailorder and online shopping 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 corporates business uses Senshukai’s infrastructure to provide solutions services
and promotional services targeting mail-order companies and e-commerce businesses. The insurance businessprovides insurance primarily to Belle Maison members.
The bridal business had been engaged in mostly house wedding services. However, consolidated subsidiaries
Dears Brain Inc. and PLANETWORK CO., LTD., and WONDERSTAGE Co., Ltd., a wholly owned subsidiary ofDears Brain and a sub-subsidiary of Senshukai, were excluded from the scope of consolidation following the salesof all shares of Dears Brain and PLANETWORK in 2021. As a result, the Group had withdr awn from thesebusinesses. Consequently, this business is no longer a reportable segment from 2022.
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.
As described in Changes in Accounting Policies, Senshukai has applied the Accounting Standard for Revenue
Recognition (ASBJ Statement No. 29, March 31, 2020) from the beginning of 2022 and changed the accounting
method for revenue recognition. Accordingly, the method for calculating segment profit or loss has been changed
as well.
The effect of this change was to increase net sales by 1,729 million yen and to increase segment loss by 51 million
yen for 2022 in the mail-order and online shopping business. Net sales decreased 6 million yen and there was noeffect on the segment loss in other businesses.

- 17 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2022

3. Information related to sales and profit or loss, assets, and other items for each reportable segment
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 is adjusted to be consistent with the operating profit on the consolidated statement of income.

- 18 -SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2022

Fiscal Year 2022 (Jan. 1, 2022 – Dec. 31, 2022)
Reportable segment
Mail-orderand online
shopping
business

Corporates
business

Insurancebusiness

Sub-total

Others(Note 1)

Total

(Millions of yen)Amounts
shown onAdjustment consolidated(Note 2)
financialstatements(Note 3)

Net sales
Sales to customers
52,6334,292
512
57,437
1,477
58,91558,915Inter-segment
258
42
301
0
301
(301)
sales or transfers
Total
52,8914,334
512
57,738
1,478
59,217(301)
58,915
Segment profit(8,405)48
281(8,074)(64) (8,139)(8,139)(loss)
Segment assets
20,6431,236
4321,923780
22,703
16,21938,923
Other items
Depreciation
1,248
11
1,260
33
1,293
1,293
Share of profit ofentities accounted
15
15
15
15
for using equity
methodInvestment inequity-method
645
645
645
645
affiliates
Increase inproperty, plantand equipment
1,178
20
1,199
221
1,421
215
1,636
and intangible
assets
Notes: 1. Others represent the businesses which are not included in any of the three reportable segments and consist of thechildcare support business and manufacturing and sales of cosmetics.
2. Adjustments are as follows.
(1) The adjustment to segment assets includes an elimination for inter-segment transactions and corporate assetsthat are not allocated to any of the reportable segments.
(2) The criteria for allocating non-current assets to business segments and related depreciation are different.
(3) The 215 million yen adjustment to increase in property, plant and equipment and in tangible assets is the sum ofcorporate assets that are not allocated to any of the reportable segments.
3. Segment profit (loss) is adjusted to be consistent with the operating loss on the consolidated statement of income.

4. Information related to impairment losses on non-current assets for each reportable segment
Fiscal Year 2021 (Jan. 1, 2021 – Dec. 31, 2021)
Not applicable.
Fiscal Year 2022 (Jan. 1, 2022 – Dec. 31, 2022)(Millions of yen)
Mail-order andonline shopping
business
Impairment
losses3,054

Corporates
business

Insurancebusiness--- 19 -

Elimination or
corporate

Others
-

-

Total
3,054

SENSHUKAI CO.,LTD. (8165) Financial Results for Fiscal Year 2022

Per Share Information(Yen)
Fiscal Year 2021
Fiscal Year 2022
(Jan. 1, 2021 – Dec. 31, 2021) (Jan. 1, 2022 – Dec. 31, 2022)
708.09469.79Net assets per share
6.64(234.24)
Net income (loss) per share
Notes: 1. Diluted net income per share in 2021 is not presented since Senshukai has no outstanding dilutive securities.
2. Diluted net income per share in 2022 is not presented since Senshukai has no outstanding dilutive securities, andposted a net loss.
3. Basis for calculation of net income (loss) per share is as follows.
(Millions of yen)
Fiscal Year 2021
Fiscal Year 2022
(Jan. 1, 2021 – Dec. 31, 2021) (Jan. 1, 2022 – Dec. 31, 2022)
Profit (loss) attributable to owners of parent
308(10,976)
Amounts unavailable to common shareholders
Profit (loss) attributable to owners of parent related to308(10,976)
common stock
Average number of common stock outstanding during the46,444
46,860period (thousand shares)

Significant Subsequent Events(Changes to financial covenants in commitment line agreements)
At the end of 2022, the Group was in breach of a financial covenant in the commitment line agreement relating to
net assets. However, on January 27, 2023, the Group agreed to review the contents of the fin ancial covenants andall such situations were resolved. Under the amended agreement, if the following financial covenants are breached,
the benefit of time may be forfeited for all obligations under the agreement.
Modified financial covenants(1) The company shall not report an operating loss or ordinary loss in the consolidated statement of income at theend of 2023, and each subsequent fiscal year.
(2) The total net assets shown in the consolidated balance sheet at the end of 2023, and each subsequent fiscal year
shall be maintained at an amount equal to 75% of the total net assets shown in the consolidated balance sheet
at the end of 2022, or 75% of total net assets in the consolidated balance sheet as of the end of the most recent
fiscal year, whichever is higher.
(Conclusion of overdraft agreement)
In accordance with a resolution of the Board of Directors’ meeting held on December 16, 2022, the Group enteredinto a new special overdraft agreement on January 27, 2023, as follows in order to prepare for the demand forfunds, etc., under uncertain circumstances, such as rising prices, changes in consumer behavior, and geopoliticalrisks.
Lender:Sumitomo Mitsui Banking Corporation
Amount borrowed:
3,000 million yen
Interest rate:
Base rate + spread (1.00%)
Contract signing:
January 27, 2023
Contract maturity date: January 26, 2024
Repayment method: Lump-sum repayment on the due date
The following assets have been provided as collateral for the special overdraft agreement.

Buildings and structures
Land
Total

(Millions of yen)
Fiscal Year 2022
(As of Dec. 31, 2022)
3,415
5,233
8,648

* 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 convenience ofreaders who prefer an English translation.

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