Summary of Financial Results for the Second Quarter of Fiscal Year 2024
(Six Months Ended June 30, 2024)[Japanese GAAP]
August 9, 2024

Company name: SENSHUKAI CO.,LTD.

Stock exchange: Tokyo Stock Exchange
Stock code:
8165
URL: https://www.senshukai.co.jp
Representative:
Mr. Kenji Kajiwara, President and Representative Director, Executive Officer
Inquiries:
Mr. Tetsuya Takahashi,Managing Executive Officer, General Manager, Corporates Headquarters
Tel: +81-6-6881-3220
Scheduled date of filing of Semi-annual Report: August 13, 2024
Scheduled date of payment of dividend: Preparation of supplementary materials for financial results: Yes
Holding of financial results meeting: Yes (A video of this meeting is planned to be posted on the Senshukai website)(All amounts are rounded down to the nearest millions of yen)

1. Consolidated Financial Results for the 2nd Quarter of 2024 (January 1, 2024 – June 30, 2024)(1) Consolidated operating results (cumulative)(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%

2Q 2024
22,546 (15.4)(2,000)
2Q 2023
26,635(6.2)(3,157)
Note: Comprehensive income (millions of yen) 2Q 2024: (1,488) (-%)

Millions of yen%-

Millions of yen

Net income per share

Diluted net income per share

Yen

Yen

(30.17)(69.73)-

2Q 2024
2Q 2023%

Millions of yen%(1,411)(3,264)-(2,006)(3,268)
2Q 2023: (2,873) (-%)

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

2Q 2024
28,134
15,790Fiscal Year 2023
31,80917,279Reference: Shareholders’ equity (millions of yen) 2Q 2024: 15,789

Net assets per share
%

Yen

56.1
54.3
Fiscal Year 2023: 17,273

337.56369.15

2. Dividends
1Q-endDividend per share
3Q-end2Q-endYen

Year-end

Total

Yen

Yen

Yen

Yen

Fiscal Year 2023
0.00
Fiscal Year 2024
0.00
Fiscal Year 2024 (forecasts)
Note: Revision to the most recently announced dividend forecast: None

-

0.00

0.00

-

0.00

0.00

3. Consolidated Outlook for Fiscal Year 2024 (January 1, 2024 – December 31, 2024)
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

Full Year 2024
51,0003.6(1,900)(1,900)Note: Revision to the most recently announced consolidated outlook: None

% Millions of yen

%

Yen

-

-

(38.47)(1,800)* Notes(1) Significant changes in the scope of consolidation during the period: None
(2) Application of special accounting methods for presenting interim consolidated financial statements: Yes
Note: Please refer to “2. Interim Consolidated Financial Statements and Notes, (4) Notes to Interim Consolidated Financial
Statements (Application of Special Accounting Methods for Presenting Interim Consolidated Financial Statements)”
on page 10 for further information.

(3) 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

(4) Number of shares outstanding (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
2Q 2024:

52,056,993 sharesFiscal Year 2023:

52,056,993 sharesFiscal Year 2023:

5,263,634 shares

2Q 2023:

46,814,264 shares

2) Number of treasury shares at the end of the period
2Q 2024:

5,280,734 shares

3) Average number of shares outstanding during the period
2Q 2024:

46,781,549 shares* This financial report is not subject to quarterly (semi-annual) review 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 page3, “1. Overview of Results of Operations, (3) Explanation of Consolidated Forecasts and Other Forward-looking Statements.”
How to view supplementary information at the financial results meeting
A video of the meeting for the presentation of the financial results for the second quarter of 2024 is planned to be posted on the
Senshukai website soon. In addition, materials used for this presentation will be disclosed using the Timely Disclosure netwo rk(TDnet) and will be posted on the Senshukai website.

SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2024

Contents of Attachments
1. Overview of Results of Operations

2(1) Results of Operations

2(2) Financial Position

3(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements

3

2. Interim Consolidated Financial Statements and Notes

4(1) Interim Consolidated Balance Sheet

4(2) Interim Consolidated Statement of Income and Interim Consolidated Statement of Comprehensive Income

6Interim Consolidated Statement of Income

6Interim Consolidated Statement of Comprehensive Income

7(3) Interim Consolidated Statement of Cash Flows

8(4) Notes to Interim Consolidated Financial Statements

9(Going Concern Assumption)

9(Significant Changes in Shareholders’ Equity)

10(Application of Special Accounting Methods for Presenting Interim Consolidated Financial Statements)

10(Segment Information)

11(Significant Subsequent Events)

12

3. Other

12

Important Matters Regarding Going Concern Assumption, Etc.

-1-

12

SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2024

1. Overview of Results of Operations(1) Results of Operations
In the first half (January 1 to June 30) of 2024, the outlook for the Japanese economy remained uncertain. Despite
signs of rising wages, upward pressure on prices continued, especially for imported goods, coupled with the impactof the Bank of Japan’s monetary policy revisions and the yen’s depreciation. Consumer purchasing behavior
remained cautious, and a full recovery in private consumption has yet to be achieved.
In this business environment, during the first half of 2024 the Group undertook various initiatives based on its reform
pillars aimed at regrowth from the previous fiscal year: reforming the mail-order and online shopping businessstructure, enhancing company-wide sales and profits, and deepening and expanding co-creation. However, despite
improvements in profitability in the mail-order and online shopping business, sales fell year-on-year due to factors
including the impact of the catalog distribution strategy underperforming expectations and delays in efforts to rebuild
customer engagement through LINE and other social media platforms. As a result, net sales in the first half of 2024
decreased 15.4% YoY to 22,546 million yen, operating loss was 2,000 million yen (compared with a loss of 3,157
million yen in the first half of 2023), and ordinary loss was 2,006 million yen (compared with a loss of 3,268 million
yen in the first half of 2023). Loss attributable to owners of parent was 1,411 million yen (compared with a loss of
3,264 million yen in the first half of 2023).
Furthermore, the reduction of executive compensation continues to be implemented after April 2024.
Business segment performance was as follows.
(Mail-order and Online Shopping Business)
In the mail-order and online shopping business, which focuses on catalog and online sales, the Group implemented
measures in the first half to enhance profitability. These included a review of pricing focusing on original products
and the provision of tailored sales environments considering the unique characteristics of catalog and digitalchannels. Set against this, products that performed well had higher-than-expected cost ratios, sales were held topromote inventory clearance, and orders obtained through catalog distribution fell short of expectations. As a result,consolidated sales in the mail-order and online shopping business decreased 17.3% YoY to 19,710 million yen in
the first half of 2024. There was an operating loss of 2,192 million yen compared with a loss of 3,315 million yen
in the first half of 2023.
(Corporates Business)
The corporates business, which provides products and services to corporations, made good progress in obtaining
corporate orders for the use of consignment sales projects and agency services such as logistics operations, leading
to improved profitability. However, due to a downturn in advertising orders, consolidated sales in the corporates
business decreased 1.8% YoY to 1,812 million yen in the first half of 2024. Operating profit increased 643.3% YoY
to 44 million yen.
(Insurance Business)
This business provides support, mainly to Belle Maison members, for choosing the most suitable insurance policies.
Consolidated sales decreased 5.5% YoY to 219 million yen in the first half of 2024 and operating profit decreased
23.9% YoY to 88 million yen.
(Others)
Consolidated sales in other businesses, which include the childcare support business, increased 10.6% YoY to 803
million yen in the first half of 2024. Operating profit increased 64.0% YoY to 59 million yen.

-2-

SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2024

(2) Financial Position(Balance sheet position)
Assets totaled 28,134 million yen at the end of the second quarter of 2024, a decrease of 3,675 million yen from theend of 2023.
Current assets decreased 2,910 million yen to 15,990 million yen. The factors included a decrease of 2,184 million
yen in cash and deposits. Non-current assets decreased 765 million yen to 12,143 million yen. The factors included
decreases of 591 million yen in investments and other assets, 110 million yen in intangible assets and 62 million yen
in property, plant and equipment.
Current liabilities decreased 1,609 million yen to 9,672 million yen. The factors included decreases of 700 million
yen in other, 504 million yen in accounts payable-trade and 358 million yen in electronically recorded obligationsoperating. Non-current liabilities decreased 577 million yen to 2,671 million yen. The main factors included
decreases of 300 million yen in long-term borrowings and 203 million yen in other.
Net assets decreased 1,489 million yen to 15,790 million yen. The factors included booking of loss attributable toowners of parent of 1,411 million yen. As a result, the equity ratio was 56.1%.
(Cash flow position)
The balance of cash and cash equivalents at the end of the second quarter of 2024 was 4,296 million yen, a decreaseof 2,184 million yen from the end of 2023.
Operating activities used net cash of 2,330 million yen (net cash used of 1,691 million yen in the same period of2023). The main cash inflows include a decrease in other current liabilities of 1,017 million yen. The main cash
outflows include loss before income taxes of 1,457 million yen, a decrease in trade payables of 816 million yen anda decrease in other current liabilities of 655 million yen.
Investing activities provided net cash of 441 million yen (net cash provided of 4 million yen in the same period of2023). The main cash inflows include proceeds from sales of investment securities of 688 million yen. The main
cash outflows include 196 million yen for purchase of property, plant and equipment and 134 million yen for thepurchase of intangible assets.
Financing activities used net cash of 350 million yen (net cash used of 368 million yen in the same period of 2023).
The main cash outflows were repayments of long-term borrowings of 310 million yen.
(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
Although sales of Belle Maison, our core mail-order and online shopping business, have been falling below theprevious year’s level due to sluggish sales of seasonal products and delays in restructuring customer contact points,
we remain committed to achieving our consolidated earnings forecast. Based on the policy announced on February
13, 2024, we aim to return to profitability in 2025 by making steady progress reforming the mail-order and online
shopping business structure and shifting to a profit-oriented model as well as diversifying our business portfolio tocreate new growth areas. Therefore, at this time, we are maintaining our current forecasts for this fiscal year (January
1 to December 31, 2024) as announced on February 13, 2024. If the need to revise the forecast arises, we willpromptly disclose the information.

-3-

SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2024

2. Interim Consolidated Financial Statements and Notes(1) Interim Consolidated Balance Sheet(Millions of yen)
2Q 2024(As of Jun. 30, 2024)

Fiscal Year 2023
(As of Dec. 31, 2023)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsMerchandise and finished goods

6,481

4,296

1,562

1,214

6,026

6,353

Accounts receivable-other

3,684

2,829

Other

1,232

1,364

Allowance for doubtful accounts

(86)

(68)

18,90015,990

Buildings and structures, net

3,662

3,554

Land

5,402

5,402

150

195

9,215

9,152

Other

1,142

1,031

Total intangible assets

1,142

1,031

1,719

1,092

Other

831

867

Allowance for doubtful accounts

(0)

(0)

Total investments and other assets

2,550

1,959

12,90812,14331,80928,134

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

Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities

Total non-current assets
Total assets-4-

SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2024

(Millions of yen)
2Q 2024(As of Jun. 30, 2024)

Fiscal Year 2023
(As of Dec. 31, 2023)
Liabilities
Current liabilities
Electronically recorded obligations-operating

3,954

3,596

Accounts payable-trade

1,988

1,484

Short-term borrowings

620

620

Income taxes payable32

20

Contract liabilities

627

570

Provision for bonuses

33

56

Other

4,024

3,324

Total current liabilities

11,282

9,672

2,674

2,374

5

5

170

96

Non-current liabilities
Long-term borrowings
Retirement benefit liability
Provision for loss on business closure
Other
Total non-current liabilities
Total liabilities

398

194

3,248

2,671

14,53012,343

Net assets
Shareholders’ equity
Share capital

100

100

Capital surplus

30,08430,084Retained earnings(8,891)(10,302)

Treasury shares(2,953)(2,953)

Total shareholders’ equity

18,33916,927302

13

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

-5-

71

235

(1,516)(1,516)77

129(1,065)(1,137)5

0

17,27915,79031,80928,134SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2024

(2) Interim Consolidated Statement of Income and Interim Consolidated Statement of Comprehensive
Income(Interim Consolidated Statement of Income)(For the Six-month Period)
2Q 2023(Jan. 1, 2023 – Jun. 30, 2023)(Millions of yen)
2Q 2024(Jan. 1, 2024 – Jun. 30, 2024)

Net sales

26,63522,546

Cost of sales

13,177

10,691Gross profit

13,458

11,854

Selling, general and administrative expenses

16,615

13,855

Operating loss

(3,157)(2,000)

20

5

-

22

96

121

Non-operating income
Interest and dividend income
Share of profit of entities accounted for using equity
methodGain on adjustment of accounts payable
Reversal of provision loss on business closure

-

52

Other

171

42

Total non-operating income

289

244

Interest expenses

24

20

Foreign exchange losses
Share of loss of entities accounted for using equity
methodCommission expenses

-

112

2

-

174

103

Penalty loss

139

-

Other

60

12

Total non-operating expenses

400

250

(3,268)(2,006)

Gain on sale of investment securities

3549

Total extraordinary income

3549

Loss on sale and retirement of non-current assets

40

Impairment losses

79

0

Total extraordinary losses

83

0(3,348)(1,457)

(72)

(41)

(3,276)(1,416)(11)(4)(3,264)(1,411)Non-operating expenses

Ordinary loss
Extraordinary income

Extraordinary losses

Loss before income taxes
Income taxes
Loss
Loss attributable to non-controlling interests
Loss attributable to owners of parent-6-

SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2024

(Interim Consolidated Statement of Comprehensive Income)(For the Six-month Period)
2Q 2023(Jan. 1, 2023 – Jun. 30, 2023)(Millions of yen)
2Q 2024(Jan. 1, 2024 – Jun. 30, 2024)(3,276)(1,416)

Valuation difference on available-for-sale securities

186

(289)

Deferred gains or losses on hedges

192

163

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

12

34

11

17

Total other comprehensive income

403

(72)

(2,873)(1,488)(2,861)(1,484)

(11)

(4)

Loss
Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests-7-

SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2024

(3) Interim Consolidated Statement of Cash Flows
2Q 2023(Jan. 1, 2023 – Jun. 30, 2023)(Millions of yen)
2Q 2024(Jan. 1, 2024 – Jun. 30, 2024)(3,348)(1,457)

Depreciation

372

356

Impairment losses

79

0Increase (decrease) in allowance for doubtful accounts

73

(17)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on officeclosing
Increase (decrease) in provision for sales promotion
expenses
Interest and dividend income

(0)

22

-

(73)

6

-

Cash flows from operating activities
Loss before income taxes

(20)

(5)

Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on sale and retirement of non-current assets

24

20

2

(22)

4

0

Loss (gain) on sale of investment securities

(3)

(549)

Decrease (increase) in trade receivables

(26)

360

Decrease (increase) in inventories

719

(360)

Decrease (increase) in other current assets

1,837

1,017

Increase (decrease) in trade payables

(996)

(816)

Increase (decrease) in contract liabilities

(109)

(56)

Increase (decrease) in other current liabilities

(938)

(655)

Other, net

595

(116)

Subtotal(1,729)(2,351)

Interest and dividends received

59

28

Interest paid

(23)

(21)

Income taxes refund (paid)

2

13(1,691)(2,330)Purchase of property, plant and equipment

(74)

(196)

Purchase of intangible assets

(79)

(134)

Proceeds from sale of investment securities

3

688

Proceeds from collection of loans receivable

72

0

Other, net

82

82

Net cash provided by (used in) investing activities

4441

Net cash provided by (used in) operating activities
Cash flows from investing activities

Cash flows from financing activities
Proceeds from long-term borrowings-

9

Repayments of long-term borrowings

(310)

(310)

Dividends paid

(0)

(0)

Repayments of installment payables

(43)

(38)

Other, net

(14)

(11)

Net cash provided by (used in) financing activities

(368)

(350)

50

54

Net increase (decrease) in cash and cash equivalents(2,005)(2,184)

Cash and cash equivalents at beginning of period

9,287

6,481

Cash and cash equivalents at end of period

7,282

4,296

Effect of exchange rate change on cash and cash
equivalents-8-

SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2024

(4) Notes to Interim Consolidated Financial Statements(Going Concern Assumption)
The Senshukai Group recorded a significant operating loss and loss attributable to owners of parent for two
consecutive years in 2023. In the second quarter of 2024, the Group continued to record a significant operating
loss and loss attributable to owners of parent. These circumstances raise significant doubts about the Group ’s
ability to continue as a going concern. The Group is taking the following measures to resolve this situation.
<Measures to improve results of operations>
A. Reforming the mail-order and online shopping business structure1) Enhancing proposal capability (what and for whom) based on a deep understanding of customer needs
Rather than securing sufficient numbers of models to publish catalogs, we will shift to a product lineup with adeep understanding of customers and a greater awareness of themes and seasons. By concentrating resources onnarrowly focused products, we will enhance our product and proposal capabilities, improve the list price sales
ratio, and enhance gross profit margins.
2) Clarifying and integrating the roles of catalogs and digital media
By analyzing customers’ purchasing behavior, we will design the optimal combination of paper-based (including
catalogs, flyers, and direct mail) and digital measures, leveraging the strengths of each to maximize sales
promotion efficiency. As the e-commerce market grows increasingly challenging, the catalog will be used as a tool
to enable differentiation, mainly in the promotion of sales to existing members, while digital media will be usedefficiently to strengthen SEO (search engine optimization) measures and social media marketing and as a tool for
acquisition of new members and communication.
3) Promoting customer retention and fan engagement
Rather than relying on financial incentives such as discounts and points to encourage purchases, we will strengthen
efforts to build trust and attachment to products and brands.
4) Strengthening outsourced e-commerce mall sales
In response to the trend toward oligopoly among major e-commerce malls, we will review the investment allocation
for in-house and outsourced e-commerce malls to capture sales in growth channels.
B. Enhancing company-wide sales and profits
1) Reducing fixed costs
We will methodically reduce fixed costs by such means as cutting system costs, reducing outsourcing costs, andcancelling leased properties.
2) Reorganizing business sectors
We will ensure enhanced profit and growth by making decisions such as withdrawing from business sectors where
profitability and growth are not anticipated and allocating human resources to targeted areas.
C. Deepening and expanding co-creation
1) Deepening and expanding cooperation with JR East
Leveraging original products for the East Japan Railway Company Group (JR East), we will increase sales at JRE
MALL, expanding physical store openings, and growing projects such as contract logistics for the JR East Group.
2) Deepening and expanding reuse & recycling collaboration centered on Aucnet Inc.
By expanding the range of targeted products for the “kimawari” purchasing service and enhancing its handling
capacity, we aim to acquire new members and increase the retention rate and purchase frequency of existing
members.
3) Strengthening sales of services and experiential products
We will strengthen sales of other companies’ services that can be ordered and purchased on Belle Maison Net, and-9-SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2024

make the site useful in customers’ lives through lifestyle proposals that combine goods, services, and experiences.
4) Strengthening the advertising business
Regarding other companies’ advertising placements on Belle Maison Net, we will develop new options such as
tie-up formats, creating lifestyle proposals that are not limited to our own products and services and increasing
sales and profits.
Regarding funds, as of the end of the second quarter of 2024, the Group possessed cash and deposits totaling 4,296
million yen. We have concluded a commitment line agreement with a financial institution for a total of 6,000
million yen. The term of the agreement expires on March 31, 2025, and enables borrowing for a maximum of six
months from the date of execution. Moreover, a special overdraft agreement of 5,500 million yen (with an expiry
date of April 30, 2025) has been set up as an overdraft facility in the eventuality that the commitment line
agreement cannot be continued. As stated in “2. Interim Consolidated Financial Statements and Notes, (4) Notes
to Interim Consolidated Financial Statements (Significant Subsequent Events),” the expiry date of the special
overdraft agreement extended to July 31, 2025. As of the end of the second quarter of 2024, there were no
outstanding borrowings under the aforementioned commitment line, or special overdraft agreement. We willcontinue to work closely with financial institutions to ensure further support should we need it in the future orwhen the term of agreement expire.
However, measures to improve results of operations being undertaken to address significant doubts regarding thegoing concern assumption are currently in progress, and it is possible that the profit and loss and financial benefits
arising from the above-mentioned measures may not be fully realized. The Group recognizes that there issignificant uncertainty regarding the assumption of a going concern as it has yet to determine whether it will beable to procure funds should renewal of the term of agreement or further support from financial institutions berequired.
Furthermore, the interim consolidated financial statements have been prepared on the assumption that the Groupwill continue as a going concern and do not reflect the impact of significant uncertainties regarding this assumption.
We will continue to respond flexibly to changes in the business environment and implement necessary measuresin a timely manner to achieve profitability in 2025. In the medium- to long-term, we strive to become a company
that is long cherished by customers and meets the expectations of all stakeholders.
(Significant Changes in Shareholders’ Equity)
Not applicable.
(Application of Special Accounting Methods for Presenting Interim Consolidated Financial Statements)(Calculation of tax expense)
Tax expenses are calculated by first determining a reasonable estimate of the effective tax rate after the applicationof tax effect accounting with respect to profit before income taxes for the fiscal year that includes the applicable
quarter and multiplying the profit before income taxes for that quarter by that rate. However, Senshukai uses
legally stipulated effective tax rates to calculate tax expenses when the use of estimated tax rates produces a clearly
irrational result.

- 10 -SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2024

(Segment Information)
I 2Q 2023 (Jan. 1, 2023 – Jun. 30, 2023)
1. Information related to sales and profit or loss for each reportable segment
Reportable segment
Mail-orderand online
shopping
business

Corporates
business

Insurancebusiness

Sub-total

Others(Note 1)

Total

(Millions of yen)Amounts
shown oninterim
Adjustment consolidated
statement ofincome(Note 2)

Net sales
Sales to customers
23,8301,846
231
25,909726
26,635
26,635Inter-segment
120
24
144
0
145
(145)
sales or transfers
Total
23,9501,871
231
26,054726
26,780(145)
26,635
Segment profit(3,315)5
115(3,193)36(3,157)(3,157)(loss)
Notes: 1. Others represent the businesses which are not included in any of the reportable segments and consist of thechildcare support business.
2. Segment profit (loss) is adjusted to be consistent with the operating loss on the interim consolidated statement ofincome.

II 2Q 2024 (Jan. 1, 2024 – Jun. 30, 2024)
1. Information related to sales and profit or loss for each reportable segment
Reportable segment
Mail-orderand online
shopping
business

Corporates
business

Insurancebusiness

Sub-total

Others(Note 1)

Total

(Millions of yen)Amounts
shown oninterim
Adjustment consolidated
statement ofincome(Note 2)

Net sales
Sales to customers
19,7101,812
219
21,742803
22,54622,546
Inter-segment
98
33
132
0
132
(132)
sales or transfers
Total
19,8091,846
219
21,875803
22,678(132)
22,546
Segment profit(2,192)44
88(2,060)59(2,000)(2,000)(loss)
Notes: 1. Others represent the businesses which are not included in any of the reportable segments and consist of thechildcare support business.
2. Segment profit (loss) is adjusted to be consistent with the operating loss on the interim consolidated statement ofincome.

2. Information related to impairment of non-current assets, goodwill, etc. for each reportable segment
No major events or changes occurred.

- 11 -SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2024

(Significant Subsequent Events)(Renewal of overdraft agreement)
In accordance with a resolution of the Board of Directors’ meeting held on July 12, 2024, Senshukai renewed thecontract period under the special overdraft agreement of 5,500 million yen, which was entered into to prepare forthe eventuality that the commitment line agreement cannot be renewed, as follows:
Lender: Sumitomo Mitsui Banking Corporation
Interest rate: Base rate + spread
Contract signing date: August 5, 2024
Contract maturity date: July 31, 2025
3. Other(Important Matters Regarding Going Concern Assumption, Etc.)
The Senshukai Group recorded a significant operating loss and loss attributable to owners of parent for two
consecutive years in 2023. In the second quarter of 2024, the Group continued to record a significant operating
loss and loss attributable to owners of parent. These circumstances raise significant doubts about the Group ’s
ability to continue as a going concern.
For further details regarding measures to resolve this situation and the going -concern assumption, please refer to“2. Interim Consolidated Financial Statements and Notes, (4) Notes to Interim Consolidated Financial Statements(Going Concern Assumption).”* This financial report is solely a translation of summary of “Kessan Tanshin” (in Japanese, including attachments), which ha s
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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