Summary of Financial Results for the Second Quarter of Fiscal Year 2021
(Six Months Ended June 30, 2021)[Japanese GAAP]
July 29, 2021

Company name: SENSHUKAI CO.,LTD.

Stock exchange: Tokyo Stock Exchange, First Section
Stock code:
8165
URL: https://www.senshukai.co.jp
Representative:
Mr. Kenji Kajiwara, President and Representative Director
Inquiries:
Mr. Tetsuya Takahashi, Director, General Manager, Corporates Headquarters
Tel: +81-6-6881-3220
Scheduled date of filing of Quarterly Report: August 11, 2021
Scheduled date of payment of dividend: September 1, 2021
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting: Yes (Only a webcast is planned to prevent the spread of COVID-19)(All amounts are rounded down to the nearest millions of yen)

1. Consolidated Financial Results for the 2nd Quarter of 2021 (January 1, 2021 – June 30, 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%

2Q 202137,905 (10.2)473
2Q 2020
42,226(3.8)(563)
Note: Comprehensive income (millions of yen) 2Q 2021: 911 (-%)

Millions of yen%-

Millions of yen

Net income per share

Diluted net income per share

Yen

Yen

10.41
(74.66)-

2Q 2021
2Q 2020%

Millions of yen%

478(3,000)-499(2,898)
2Q 2020: (3,148) (-%)

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

2Q 202152,02633,495
Fiscal Year 2020
63,93332,088Reference: Shareholders’ equity (millions of yen) 2Q 2021: 33,495

Net assets per share
%

Yen

64.4
50.2
Fiscal Year 2020: 32,088

714.14699.01

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

Yen

Fiscal Year 2020
0.00
Fiscal Year 2021
3.00
Fiscal Year 2021 (forecasts)
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

-

-

24.76

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, (4) Notes to Quarterly Consolidated
Financial Statements (Changes in Significant Subsidiaries during the Period)” on page 10 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, (4) Notes to Quarterly Consolidated
Financial Statements (Application of Special Accounting Methods for Presenting Quarterly 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 2021:52,056,993 sharesFiscal Year 2020:

52,056,993 sharesFiscal Year 2020:

6,151,627 shares

2Q 2020:

40,191,510 shares

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

5,153,503 shares

3) Average number of shares outstanding during the period
2Q 2021:45,983,955 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
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. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecasts andOther Forward-looking Statements.”
How to view supplementary information at the financial results meeting
There will be no meeting for the presentation of the financial results for the second quarter of 2021 because of the COVID-19
pandemic. A video of this presentation is planned to be posted on the Senshukai website soon. In addition, materials used forthis 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 the Second 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 Comp rehensive
Income7

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

7

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)8(3) Quarterly Consolidated Statement of Cash Flows

9(4) Notes to Quarterly Consolidated Financial Statements

10(Going Concern Assumption)

10(Significant Changes in Shareholders’ Equity)

10(Changes in Significant Subsidiaries during the Period)

10(Important Changes in the Scope of Application of the Equity Method)

10(Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements) 10(Additional Information)

10(Segment Information)

11

-1-

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

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first half (January 1 to June 30) of 2021, the business environment remained severe due to restrictions on
economic activity and sluggish personal consumption caused by the resurgence of COVID -19. Vaccinations havestarted, but state of emergency or priority measures to prevent the spread of the infection are still being implemented
in some areas and 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 and online shopping sales are growing steadily. We assume that suchchanges in consumer values and consumption behavior will not be merely transient or temporary, but irreversible.
In this business environment, sales were down but earnings increased in the mail-order and online shopping businesscompared with the first half of 2020, as the special demand for stay-at-home consumption caused by the COVID19 pandemic settled down and the scale of sales promotion activities was reduced. In addition, following the saleof shares at the end of the first quarter, a subsidiary company in the bridal business was excluded from the Group’s
scope of consolidation. Net sales in the first half of 2021 were down 10.2% year-over-year to 37,905 million yen.
There was an operating profit of 473 million yen compared with an operating loss of 563 million yen in the firsthalf of 2020. Ordinary profit was 499 million yen compared with a loss of 2,898 million yen in the first half of2020. Profit attributable to owners of parent was 478 million yen compared with a loss of 3 ,000 million yen in thefirst half 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, decreased 5.3% year-over-year to 32,842 million yen in the first half. Operating profit increased 8.8%
to 1,331 million yen.
In the first half of 2021, the mail order service was firmly established because of the COVID-19 pandemic. However,the special demand for stay-at-home consumption has settled down from the level seen in the previous year. In
addition, the Group scaled down its sales promotion programs implemented in the previous year to expand its
customer base. Instead, the Group prioritized measures to encourage its existing members to continue making useof the service. Sales decreased and earnings increased due to the improvement in gross profit margins mainly
resulting from the implementation of ongoing operational reforms.
(Bridal Business)
Consolidated subsidiaries Dears Brain Inc. and PLANETWORK CO., LTD., and WONDERSTAGE Co., Ltd. , awholly owned subsidiary of Dears Brain and a sub-subsidiary of Senshukai, were excluded from the scope of
consolidation following the sales of all shares of Dears Brain and PLANETWORK on March 31, 2021. In the firstquarter of 2021, when the Group had withdrawn from these businesses, consolidated sales in the bridal businessdecreased 51.3% year-over-year to 1,733 million yen and there was an operating loss of 1,045 million yen comparedwith a loss of 505 million yen in the first quarter of 2020.

-2-

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

(Corporates Business)
Consolidated sales in the corporates business, which provides products and services to corporations, decreased
11.7% year-over-year to 2,239 million yen. Operating profit decreased 18.8% to 203 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 1.8% year-over-year to 174 million yen and operating profit decreased 30.4% to 59
million yen.
(Others)
Consolidated sales in other businesses, which include childcare support business and manufacturing and sales ofcosmetics, decreased 2.1% year-over-year to 916 million yen. There was an operating loss of 77 million yen
compared with a profit of 16 million yen in the first half of 2020.
(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 52,026 million yen at the end of the second quarter of 2021, a decrease of 11,907 million yen fromthe end of 2020.
Current assets decreased 2,324 million yen to 35,287 million yen. The factors included decreases of 1,271 million
yen in notes and accounts receivable-trade and 1,123 million yen in accounts receivable-other. Non-current assets
decreased 9,582 million yen to 16,738 million yen. The factors included decreases of 8,148 million yen in property,
plant and equipment, 648 million yen in intangible assets and 786 million yen in investments and other assets.
Current liabilities decreased 6,263 million yen to 15,066 million yen. The factors included decreases of 3,319
million yen in other and 2,683 million yen in short-term borrowings. Non-current liabilities decreased 7,050 million
yen to 3,464 million yen. The main factor was a decrease of 5,630 million yen in long-term borrowings.
Net assets increased 1,407 million yen to 33,495 million yen. The factors included booking of profit attributable toowners of parent of 478 million yen, and a decrease of 572 million yen in treasury shares due to disposal of treasury
stock for restricted stock compensation. As a result, the equity ratio was 64.4%.
(Cash flow position)
The balance of cash and cash equivalents at the end of the second quarter of 2021 was 18,830 million yen, a decreaseof 762 million yen from the end of 2020.
Operating activities provided net cash of 388 million yen (net cash provided of 113 million yen in the same periodof 2020). The main cash inflows were an increase in trade payables of 882 million yen and a decrease in othercurrent assets of 713 million yen. The main cash outflows include a decrease in other current liabilities of 1,294
million yen.
Investing activities provided net cash of 1,486 million yen (net cash used of 681 million yen in the same period of-3-

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

2020). The main cash inflows include proceeds from sales of shares of subsidiaries resulting in change in scope of
consolidation of 2,773 million yen. The main cash outflows include 894 million yen for the purchase of intangible
assets and 309 million yen for the purchase of property, plant and equipment.
Financing activities used net cash of 2,672 million yen (net cash provided of 3,533 million yen in the same periodof 2020). The main cash outflows were a decrease in short-term borrowings of 2,100 million yen and repaymentsof long-term borrowings of 534 million yen.
(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements
Senshukai currently maintains its consolidated forecasts for fiscal year 2021 (January 1, 2021 to December 31,2021) that was released on March 23, 2021. Although the consolidated forecast for 2021 remains uncertain due tothe impact of the COVID-19 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 theinitial outlook. We remain firmly dedicated to contributing to society by fulfilling our duty as a retail company thatprovides support to consumers by supplying merchandise and new ideas that match the needs of our customers.

-4-

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

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
2Q 2021(As of Jun. 30, 2021)

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

19,592

18,830Notes and accounts receivable-trade

3,695

2,423

Merchandise and finished goods

7,173

8,030

Accounts receivable-other

5,529

4,406

Other

1,750

1,699

Allowance for doubtful accounts

(129)

(101)

37,61235,287

Buildings and structures, net

10,641

4,171

Land

6,809

5,524

726

332

18,176

10,028Goodwill

1,203

-

Other

1,954

2,509

Total intangible assets

3,158

2,509

Investment securities

2,102

2,585

Other

3,004

1,734

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

4,200

26,321

16,73863,93352,026SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2021

(Millions of yen)
2Q 2021(As of Jun. 30, 2021)

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

6,185

6,852

Accounts payable-trade

3,620

2,839

Short-term borrowings

3,263

580

Income taxes payable

52

30

Provision for sales promotion expenses

216

229

Provision for bonuses

194

56

Other

7,797

4,478

Total current liabilities

21,33015,066

8,845

3,215

5

5

Other

1,664

243

Total non-current liabilities

10,514

3,464

31,845

18,530Share capital

100

100

Capital surplus

30,26430,084Retained earnings

6,768

7,349

Non-current liabilities
Long-term borrowings
Retirement benefit liability

Total liabilities
Net assets
Shareholders’ equity

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

Total shareholders’ equity

33,606

34,580

Valuation difference on available-for-sale securities

195

250

Deferred gains or losses on hedges

(78)

140

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

40(1,518)(1,084)32,08833,49563,93352,026

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 Second 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 Six-month Period)
2Q 2020(Jan. 1, 2020 – Jun. 30, 2020)(Millions of yen)
2Q 2021(Jan. 1, 2021 – Jun. 30, 2021)

Net sales

42,22637,905

Cost of sales

20,89918,463Gross profit

21,327

19,442

Selling, general and administrative expenses

21,89018,968(563)

473

Interest income

116

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

28

17

-

23

Operating profit (loss)
Non-operating income

Subsidy income

115

42

0

164

Other

117

110

Total non-operating income

273

365

62

54

2,369

-

15

231

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

160

53

2,608

339

(2,898)499

Subsidy income

18

162

Gain on change in equity

13-

Total extraordinary income

32

162

Total non-operating expenses
Ordinary profit (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

3

0

18

151

5

-

Loss on valuation of investment securities

38-

Loss on sales of shares of subsidiaries and associates-

9

Loss on disaster

14-

Loss on change in equity-

110

Total extraordinary losses

80

272

Profit (loss) before income taxes(2,946)

388

Income taxes

53

(89)

Profit (loss)(3,000)478

Profit (loss) attributable to owners of parent(3,000)478-7-SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2021

(Quarterly Consolidated Statement of Comprehensive Income)(For the Six-month Period)
2Q 2020(Jan. 1, 2020 – Jun. 30, 2020)
Profit (loss)(3,000)(Millions of yen)
2Q 2021(Jan. 1, 2021 – Jun. 30, 2021)
478

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

(128)

55

Deferred gains or losses on hedges

(20)

204

4

(10)

(3)

183

(147)

433

(3,148)911(3,148)911

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 Second Quarter of Fiscal Year 2021

(3) Quarterly Consolidated Statement of Cash Flows
2Q 2020(Jan. 1, 2020 – Jun. 30, 2020)(Millions of yen)
2Q 2021(Jan. 1, 2021 – Jun. 30, 2021)(2,946)
893
5
(57)
(64)

388
620
(10)
95

(20)

12

(39)
62

(24)
54

2,369

(23)

3
18

0
151

-

9

38
(18)
(0)
(13)
254
1,216
622
335
(2,694)
146
110
84
(61)
(6)
0
(13)
113

(162)
(164)
110
37
(964)
713
882
(1,294)
(138)
293
97
(57)
(109)
164
388

(299)
0
(548)
18
(15)

(309)
(894)
162
(295)

-

2,773

162
(681)

49
1,486

3,000
1,450
(677)
(179)
(58)
3,533

(2,100)
(534)
(0)
(37)
(2,672)

(7)

34

2,957
22,71325,671(762)
19,592
18,830Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for sales promotion
expenses
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on sales and retirement of non-current assets
Loss on tax purpose reduction entry of non-current assets
Loss (gain) on sales of shares of subsidiaries andassociates
Loss (gain) on valuation of investment securities
Subsidy income
Subsidy income
Loss (gain) on change in equity
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in trade payables
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Proceeds from subsidy income
Payments for business structure reform expenses
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Subsidies received
Purchase of investment securities
Proceeds from sales 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
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-9-SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2021

(4) Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Significant Changes in Shareholders’ Equity)
Pursuant to a resolution of the Board of Directors’ meeting held on April 16, 2021, Senshukai disposed of/sold its
own shares (196,442 shares) with a due date of May 14, 2021 for its directors (excluding the outside directors anddirectors dispatched by its capital and business alliance partners) and for the directors of its subsidiaries as restri cted
stock compensation.
Furthermore, in accordance with the same Board of Directors’ resolution, Senshukai disposed of/sold its own shares(801,860 shares) with a due date of June 25, 2021 for employees of Senshukai and its subsidiaries (wholly owned
subsidiaries) as restricted stock compensation.
As a result, treasury shares decreased 572 million yen during the first half of 2021 to 2,953 million yen at the endof the second quarter.
(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.
(Important Changes in the Scope of Application of the Equity Method)
In the second quarter of 2021, Watabe Wedding Corporation, an equity-method affiliate of Senshukai was excluded
from the scope of application of the equity method due to a decrease in Senshukai’s equity interest in Watabe
Wedding following a third-party allotment of new shares by Watabe Wedding and the free transfer of a portion ofits shares.
(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 Sharing System(ASBJ Practical Issues Task Force (PITF) No. 39, March 31, 2020). As a result, deferred tax assets and defe rred
tax liabilities are based on the tax law prior to these amendments.
- 10 -SENSHUKAI CO.,LTD. (8165) Financial Results for the Second Quarter of Fiscal Year 2021

(Uncertainty of accounting estimates)
At the end of the second quarter of 2021, the business environment remained severe due to restrictions on economic
activity and sluggish personal consumption caused by the resurgence of COVID-19. In addition, priority measures
to prevent the spread of the infection are still being implemented in some areas, and, with a fourth declaration ofa state of emergency issued in July 2021, the outlook continues to be uncertain. However, Senshukai believes that
this situation 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.
(Segment Information)
I 2Q 2020 (Jan. 1, 2020 – Jun. 30, 2020)
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
34,672
3,902
2,537
178
41,290935
42,22642,226
Inter-segment
134
3
38
176
0
176
(176)
sales or transfers
Total
34,807
3,906
2,575
178
41,467935
42,403(176)
42,226
Segment profit
1,223(2,142)
251
86
(581)
16
(564)
1
(563)
(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 1 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 2Q 2021 (Jan. 1, 2021 – Jun. 30, 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
32,842
1,733
2,239
174
36,989916
37,90537,905Inter-segment
127
5
19
151
0
151
(151)
sales or transfers
Total
32,969
1,738
2,258
174
37,141916
38,057(151)
37,905
Segment profit
1,331(1,045)
203
59
550
(77)
472
0
473
(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 profit on the quarterly consolidated statementof income.

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

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.
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 for the second quarter of 2021 decreased 14,911 million
yen, compared with the end of 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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