Summary of Financial Results for the First Quarter of Fiscal Year 2021
(Three Months Ended March 31, 2021)[Japanese GAAP]
April 30, 2021

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 filing of Quarterly Report: May 14, 2021
Scheduled date of payment of dividend: Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting: None
Stock code:
Representative:
Inquiries:(All amounts are rounded down to the nearest millions of yen)

1. Consolidated Financial Results for the 1st Quarter of 2021 (January 1, 2021 – March 31, 2021)(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%

1Q 202118,655(6.0)(388)
1Q 2020
19,850(5.3)(1,001)
Note: Comprehensive income (millions of yen) 1Q 2021: 89 (-%)

Millions of yen%-

Millions of yen

Net income per share

Diluted net income per share

Yen

Yen

(6.32)(44.09)-1Q 2021
1Q 2020%

Millions of yen

%

(290)
(1,722)-(373)(1,782)
1Q 2020: (1,907) (-%)

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

1Q 202153,731
32,177
Fiscal Year 2020
63,93332,088Reference: Shareholders’ equity (millions of yen) 1Q 2021: 32,177

Net assets per share
%

Yen

59.9
50.2
Fiscal Year 2020: 32,088

700.96699.01

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

Yen

Fiscal Year 2020
0.00
Fiscal Year 2021
Fiscal Year 2021 (forecasts)
3.00
Note: Revision to the most recently announced dividend forecast: None

Year-end

Total

Yen

Yen

Yen

-

0.00

0.00

-

4.00

7.00

3. Consolidated Outlook for Fiscal Year 2021 (January 1, 2021 – December 31, 2021)
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 2021
76,000 (8.7)
1,000
1,100
Note: Revision to the most recently announced consolidated outlook: None

% Millions of yen

%

Yen

-

-

25.05

1,150

* 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 “2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly Consolidated
Financial Statements (Changes in Significant Subsidiaries during the Period)” on page 9 for further information.

(2) Application of special accounting methods for presenting quarterly consolidated financial statements: Yes
Note: Please refer to “2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly Consolidated
Financial Statements (Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial
Statements)” on page 9 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)
1Q 2021:52,056,993 sharesFiscal Year 2020:

52,056,993 sharesFiscal Year 2020:

6,151,627 shares

1Q 2020:

40,191,545 shares

2) Number of treasury shares at the end of the period
1Q 2021:

6,151,722 shares

3) Average number of shares outstanding during the period
1Q 2021:45,905,333 shares* This quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.
* Cautionary statement with respect to forward-looking statements
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. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecasts andOther Forward-looking Statements.”

SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2021

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

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

4

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
Income7

Quarterly Consolidated Statement of Income(For the Three-month Period)

7

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)8(3) Notes to Quarterly Consolidated Financial Statements

9(Going Concern Assumption)

9(Significant Changes in Shareholders’ Equity)9(Changes in Significant Subsidiaries during the Period)

9(Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements)

9(Additional Information)

9(Segment Information)

10

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SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2021

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first quarter (January 1 to March 31) of 2021, the business environment remained severe due to restrictions
on economic activity and sluggish personal consumption caused by the resurgence of COVID-19. The lifting of thesecond emergency declaration led to a gradual resumption of economic activity, but priority measures to preventthe spread of the infection are still being implemented in some areas, and, with a third declaration of a state of
emergency issued in April 2021, the outlook continues to be uncertain.
In Japan’s retail industry, “out-of-home consumption,” which involves visiting stores, continues to face a difficult
situation. On the other hand, mail-order sales are growing steadily due to the increase in “stay-at-homeconsumption.” We assume that such changes in consumer values and consumption behavior will not be merelytransient or temporary, but irreversible.
In Japan’s wedding industry, the situation remains challenging. Although couples who had postponed their wedding
receptions are now using our services more, business has not recovered to the pre-pandemic level due to theincreasing consumer awareness of issues such as avoiding eating and drinking in large groups.
In such a business environment, sales and earnings increased in the mail-order and online shopping business due tocontinued use by members of our service following the rebuilding of the customer base in the previous year.
However, the decrease in sales and earnings in the bridal business had a significant impact. Net sales in the firstquarter of 2021 were down 6.0% year-over-year to 18,655 million yen. There was an operating loss of 388 million
yen compared with an operating loss of 1,001 million yen in the first quarter of 2020. Ordinary loss was 373 million
yen compared with a loss of 1,782 million yen in the first quarter of 2020. The loss attributable to owners of parent
was 290 million yen compared with a loss of 1,722 million yen in the first quarter of 2020.
Business segment performance was as follows.
From 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 mail-order and online shopping business. In line with 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, increased 5.2% year-over-year to 15,337 million yen in the first quarter. There was an operating profitof 531 million yen compared with a loss of 635 million yen in the first quarter of 2020.
In the first quarter of 2021, the Group continued to propose new lifestyles from the customer ’s point of view inresponse to the “stay-at-home consumption” due to the spread of the COVID-19 pandemic. We also developed sales
promotion strategies by utilizing the customer base that we rebuilt in the previous year. In addition, sales andearnings increased due to the improvement in gross profit margins resulting from the implementation of ongoing
operational reforms.
(Bridal Business)
Consolidated sales in the bridal business, centered on the house wedding business, decreased 5 1.3% year-over-year
to 1,733 million yen. There was an operating loss of 1,045 million yen compared with a loss of 505 million yen in
the first quarter of 2020.
The big downturns in sales and earnings compared with the first quarter of 2020 were caused by wedding andreception postponements and the suspension of most sales activities because of COVID-19.
Consolidated subsidiaries Dears Brain Inc. and PLANETWORK CO., LTD., and WONDERSTAGE Co., Ltd. , a-2-

SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2021

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. For details,
please refer to “Notice of Change in Consolidated Subsidiaries (Transfer of Shares) and Revision s to Consolidated
Outlook” released on March 23, 2021 (Japanese version only).
(Corporates Business)
Consolidated sales in the corporates business, which provides products and services to corporations, decreased
10.0% year-over-year to 1,065 million yen. Operating profit decreased 1.0% to 109 million yen.
Segment sales and earnings decreased as a result of a decline in sales of services to deliver appropriate direct mails
and other messages to members of the mail-order and online shopping business.
(Insurance Business)
This business provides support, mainly to Belle Maison members, for choosing the most suitable insurance policies.
Consolidated sales decreased 10.4% year-over-year to 71 million yen and operating profit decreased 44.2% to 13
million yen.
(Others)
Consolidated sales in other businesses, which include childcare support business and manufacturing and sales ofcosmetics, increased 0.4% year-over-year to 447 million yen. Operating profit decreased 37.2% to 3 million yen.
(2) Explanation of Financial Position(Balance sheet 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 at the end of the first quarter of
2021.
Main reason for the following decrease in non-current assets, short-term borrowings, long-term borrowings is theeffect of the exclusion of these subsidiaries from the consolidation.
Assets totaled 53,731 million yen at the end of the first quarter of 2021, a decrease of 10,202 million yen from theend of 2020.
Current assets decreased 73 million yen to 37,539 million yen. The factors included decreases of 945 million yen
in notes and accounts receivable-trade, and 847 million yen in accounts receivable-other, while there were increasesof 985 million yen in merchandise and finished goods, and 614 million yen in other. Non-current assets decreased
10,128 million yen to 16,192 million yen. The factors included decreases of 8,094 million yen in property, plantand equipment, 860 million yen in intangible assets and 1,173 million yen in investments and other assets.
Current liabilities decreased 3,412 million yen to 17,918 million yen. The factors included decreases of 2,874
million yen in other and 583 million yen in short-term borrowings. Non-current liabilities decreased 6,879 million
yen to 3,635 million yen. The main factor was a decrease of 5,445 million yen in long-term borrowings.
Net assets increased 89 million yen to 32,177 million yen. The factors included booking of loss attributable toowners of parent of 290 million yen, and increases of 234 million yen in deferred gains or losses on hedges, 74
million yen in valuation difference on available-for-sale securities, and 70 million yen in foreign currencytranslation adjustment. As a result, the equity ratio was 59.9%.

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SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2021

(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
Although the consolidated forecast for 2021 remains uncertain due to the impact of the resurgence of the COVID19 cases, the performance of the mail-order and online shopping business, which is becoming increasingly
important to society as a lifestyle infrastructure, is expected to be generally in line with the initial outlook. We
remain firmly dedicated to contributing to society by fulfilling our duty as a retail company that provi des support
to consumers by supplying merchandise and new ideas that match the needs of our customers .
For details, please refer to “Notice of Change in Consolidated Subsidiaries (Transfer of Shares) and Revision s toConsolidated Outlook” released on March 23, 2021 (Japanese version only).
Approximately 200 million yen in gain on sales of shares of subsidiaries and associates was assumed in the
consolidated outlook announced on March 23, 2021. Since the book value of the stocks of subsidiaries andassociates at the time of sale was higher than expected due to better-than-expected performance of the subsidiaries
and associates, there was a loss on sales of shares of subsidiaries and associates of 9 million yen. There is norevision to the consolidated outlook.

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SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2021

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
1Q 2021(As of Mar. 31, 2021)

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

19,592

19,689Notes and accounts receivable-trade

3,695

2,749

Merchandise and finished goods

7,173

8,159

Accounts receivable-other

5,529

4,681

Other

1,750

2,365

Allowance for doubtful accounts

(129)

(106)

37,61237,539Buildings and structures, net

10,641

4,205

Land

6,809

5,524

726

351

18,176

10,082

Goodwill

1,203

-

Other

1,954

2,297

Total intangible assets

3,158

2,297

Investment securities

2,102

2,431

Other

3,004

1,501

Allowance for doubtful accounts

(120)

(119)

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

Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Total investments and other assets
Total non-current assets
Total assets

-5-

4,986

3,813

26,321

16,192

63,93353,731SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2021

(Millions of yen)
1Q 2021(As of Mar. 31, 2021)

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

6,185

6,120

Accounts payable-trade

3,620

3,776

Short-term borrowings

3,263

2,680

Income taxes payable

52

7Provision for sales promotion expenses

216

226

Provision for bonuses

194

184

Other

7,797

4,922

Total current liabilities

21,33017,918

8,845

3,400

5

5

Other

1,664

230

Total non-current liabilities

10,514

3,635

31,84521,554

Share capital

100

100

Capital surplus

30,26430,264Retained earnings

6,768

6,477

Non-current liabilities
Long-term borrowings
Retirement benefit liability

Total liabilities
Net assets
Shareholders’ equity

Treasury shares(3,525)(3,525)

Total shareholders’ equity

33,60633,316

Valuation difference on available-for-sale securities

195

269

Deferred gains or losses on hedges

(78)

156

(1,516)(1,516)

(118)

(47)

(1,518)(1,138)32,08832,17763,93353,731

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-6-

SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2021

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
Income(Quarterly Consolidated Statement of Income)(For the Three-month Period)
1Q 2020(Jan. 1, 2020 – Mar. 31, 2020)
19,850(Millions of yen)
1Q 2021(Jan. 1, 2021 – Mar. 31, 2021)
18,655

10,092

9,268

Gross profit

9,758

9,386

Selling, general and administrative expenses

10,7599,774

Operating loss

(1,001)(388)

Interest income

54Dividend income

91

Gain on adjustment of account payable

56

19

Subsidy income

0

163

Other

84

62

Total non-operating income

157

252

Net sales
Cost of sales

Non-operating income

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodCommission expenses

29

39

841

35

7

138

Other

60

24

938
(1,782)

238(373)

Subsidy income

18-

Total extraordinary income

18-

Total non-operating expenses
Ordinary loss
Extraordinary income

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

2

0

18

-

0

-

Loss on sales of shares of subsidiaries and associates-

9

Loss on disaster

16-

Loss on change in equity-

26

Total extraordinary losses
Loss before income taxes
Income taxes

39

36(1,802)

(409)

(80)

(119)

Loss

(1,722)(290)

Loss attributable to owners of parent(1,722)

(290)

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SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2021

(Quarterly Consolidated Statement of Comprehensive Income)(For the Three-month Period)
1Q 2020(Jan. 1, 2020 – Mar. 31, 2020)(Millions of yen)
1Q 2021(Jan. 1, 2021 – Mar. 31, 2021)(1,722)

(290)

Loss
Other comprehensive income
Valuation difference on available-for-sale securities

(168)

73

Deferred gains or losses on hedges

(18)

213

4

(6)

(2)

99

(185)

379

(1,907)89(1,907)89

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 ofparent-8-

SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2021

(3) Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Significant Changes in Shareholders’ Equity)
Not applicable.
(Changes in Significant Subsidiaries during the Period)
Significant 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 at the end of the first quarter of
2021.
(Application of Special Accounting Methods for Presenting Quarterly 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.
(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 Sharin g 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)
In the first quarter of 2021, the business environment remained severe due to restrictions on economic activity andsluggish personal consumption caused by the resurgence of COVID-19. In addition, priority measures to preventthe spread of the infection are still being implemented in some areas, and, with a third declaration of a state of
emergency issued in April 2021, the outlook continues to be uncertain. However, Senshukai believes that thissituation will have only a negligible effect on business activities of the Group. We are using the best possible
estimates in accordance with information that is currently available. However, if some upcoming event alters theimpact of this crisis on business operations, there may be an effect on the Senshukai Group ’s financial soundness,
results of operations and cash flows.

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SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2021

(Segment Information)
I 1Q 2020 (Jan. 1, 2020 – Mar. 31, 2020)
1. Information related to sales and profit or loss for each reportable segment
Reportable segment
MailOthers
order and
Bridal Corporates Insurance
onlineSub-total (Note 1)
business businessbusiness
shopping
business

Total(Millions of yen)Amounts
shown onquarterly
Adjustment
consolidated(Note 2)statement ofincome(Note 3)

Net sales
Sales to customers 14,579
3,562
1,183
79
19,405445 19,850
19,850Inter-segment
88
2
29
120
120
(120)
sales or transfers
Total
14,668
3,564
1,213
79
19,525445 19,971(120)
19,850
Segment profit
(635)
(505)
110
23
(1,006)
5(1,001)0(1,001)(loss)
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. The 0 million yen adjustment to segment profit (loss) is an elimination for inter-segment transactions.
3. Segment profit (loss) is adjusted to be consistent with the operating loss on the quarterly consolidated statement ofincome.

2. Information related to impairment of non-current assets, goodwill, etc. for each reportable segment
No major events or changes occurred.
II 1Q 2021 (Jan. 1, 2021 – Mar. 31, 2021)
1. Information related to sales and profit or loss for each reportable segment
Reportable segment
Mailorder andBridal Corporates Insurance
onlineSub-total
business business businessshopping
business

Others(Note 1)

Total

(Millions of yen)Amounts
shown onquarterly
Adjustment
consolidated(Note 2)statement ofincome(Note 3)

Net sales
Sales to customers
15,337
1,733
1,065
71
18,207447
18,65518,655Inter-segment
65
5
10
81
81
(81)
sales or transfers
Total
15,402
1,738
1,076
71
18,289447
18,736(81)
18,655
Segment profit531(1,045)
109
13
(391)
3
(388)
0
(388)
(loss)
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. The 0 million yen adjustment to segment profit (loss) is an elimination for inter-segment transactions.
3. Segment profit (loss) is adjusted to be consistent with the operating loss on the quarterly consolidated statement ofincome.

2. Information related to revisions for reportable segments
In 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 mail-order and online shopping business. In line with this change, the insurance
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 perm it comparisons.
3. Information related to impairment of non-current assets, goodwill, etc. for each reportable segment
Significant changes in the amount of goodwill
In the bridal business, all shares of consolidated subsidiaries Dears Brain Inc. and PLAN ETWORK CO., LTD.
were sold at the end of the first quarter of 2021. As a result of the sales of these subsidiaries shares, goodwill
decreased 1,158 million yen in the first quarter.

- 10 -SENSHUKAI CO.,LTD. (8165) Financial Results for the First Quarter of Fiscal Year 2021

4. Information related to assets for each reportable segment
Significant decrease in assets due to decrease in number of subsidiaries
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 at the end of the first quarterof 2021. As a result, segment assets of the bridal business decreased 14,911 million yen, compared with the endof 2020.

* 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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