Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended October 31, 2020
(Based on Japanese GAAP)
December 9, 2020
Company name:

SENSHU ELECTRIC CO.,LTD.

Stock exchange listing: Tokyo
Stock code:
9824

URL

https://www.senden.co.jp/

Representative:

Representative Director,President
Senior Managing Director & Executive

Motohide Nishimura

Inquiries:

Officer & General Manager of
Administration Division

Kazuto Narita

TEL

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

January 28, 2021
January 29, 2021

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

January 29, 2021
Yes

Holding of financial results meeting:Yes

06-6384-1101(for analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended October 31, 2020 (from November 1, 2019 to October 31, 2020)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended October 31, 2020
74,288(11.2)
3,124 (21.5)
3,382(19.6)
2,351(13.4)
Year ended October 31, 201983,676
2.0
3,979
2.9
4,206
2.5
2,714
14.5
Profit attributable toOrdinary profit/total Operating profit/net
owners ofsales
assetsparent/equity
Yen%%%–
5.9
5.0
4.2
–
7.06.24.8

Diluted earnings pershare

Earnings per share
Yen
247.02277.04

Year ended October 31, 2020
Year ended October 31, 2019(2) Consolidated financial position

Total assets
As of October 31, 2020
As of October 31, 2019

Net assets

Equity ratio

Millions of yen
67,401
68,589Millions of yen
40,40939,749Cash flows fromoperating activities
Millions of yen
4,451
3,349

Cash flows frominvesting activities
Millions of yen(395)(1,199)Net assets per share%
59.8
57.7

Yen
4,295.79
4,094.81(3) Consolidated cash flows

Year ended October 31, 2020
Year ended October 31, 2019

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(1,769)17,721(1,525)
15,4302. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended October 31, 2019Year ended October 31, 2020
Year ending October 31, 2021
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

TotalYen

Yen

Yen

Yen

YenMillions of yen

%%

––

35.00
35.00

––

35.00
35.00

70.00
70.00

682
662

25.3
28.3

1.8
1.7

–

40.00

–

40.00

80.00

130.7

3. Forecast of consolidated financial results for the year ending October 31, 2021 (from November 1, 2020 to October 31, 2021)

Net sales
Millions of yen
Six months ending
April 30, 2021
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen

39,6003.1

1,480(18.0)

1,580(17.4)

1,060(19.7)

115.16

82,100

10.5

3,300

5.6

3,550

5.0

2,400

2.1

260.73

4. Notes(1) Changes in significant subsidiaries during the year ended October 31, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of October 31, 2020

10,800,000 shares As of October 31, 2019

10,800,000 shares

Number of treasury shares at the end of the period
As of October 31, 2020

1,425,068 shares As of October 31, 2019

1,127,181 shares

9,519,669 shares Year ended October 31, 2019

9,797,541 shares

Average number of shares during the period
Year ended October 31, 20202Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of October 31, 2019

As of October 31, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

15,972
18,07018,461
16,273

Electronically recorded monetary claims - operating
Securities

6,137
–

4,882
7

Merchandise
Other

4,128
226

3,847
205

Allowance for doubtful accounts
Total current assets

(22)

(13)

44,512

43,664Non-current assets
Property, plant and equipment
Buildings and structures

10,474

10,523

Accumulated depreciation(3,649)(3,962)

Buildings and structures, net

6,825

6,560

Machinery, equipment and vehicles

1,347

1,340

Accumulated depreciation

(847)

(923)

Machinery, equipment and vehicles, net

500

416

10,55010,605

176
(88)

207
(95)

Leased assets, net

87

112

Construction in progress
Other

0333

4344(245)

(269)

Land
Leased assets
Accumulated depreciation

Accumulated depreciation
Other, net

8874

18,052

17,774

4–

Other

170

120

Total intangible assets

175

120

Investment securities
Long-term loans receivable

1,326
46

1,308
33

Deferred tax assets
Other882
4,398

807
4,351

Total property, plant and equipment
Intangible assets
Goodwill

Investments and other assets

Accumulated depreciation

(382)

(283)

Other,net

4,016

4,067

Allowance for doubtful accounts

(421)

(375)

Total investments and other assets

5,849

5,842

24,07723,737

68,58967,401

Total non-current assets
Total assets3

(Millions of yen)
As of October 31, 2019

As of October 31, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade23,537

21,858

Short-term borrowings
Lease obligations

105
45

10536Accrued expenses
Income taxes payable

325
736

271
462

Provision for bonuses
Other

628
671

588
940

Total current liabilities

26,04924,262

Non-current liabilities
Lease obligations

6337

Deferred tax liabilities
Retirement benefit liability

98
1,946

3
2,103

Asset retirement obligations
Guarantee deposited

6155

6159

Other

519

419

2,790

2,728

28,84026,991

Share capital
Capital surplus

2,575
3,386

2,575
3,397

Retained earnings
Treasury shares

35,467(2,270)37,146(3,231)

Total shareholders' equity

39,15839,887

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

431

408

Foreign currency translation adjustment
Remeasurements of defined benefit plans

60
(42)

25(48)

Total accumulated other comprehensive income

449

384

Non-controlling interests
Total net assets
Total liabilities and net assets

4140

137

39,74940,40968,58967,401

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)Fiscal year ended
October 31, 2019

Fiscal year ended
October 31, 2020

Net sales

83,67674,288

Cost of sales

70,45362,210Gross profit

13,222

12,078Freight and packing costs
Provision of allowance for doubtful accounts

1,265
(48)

1,210
(7)

Salaries and bonuses
Welfare expenses

3,484
864

3,396
853

621

583

Selling, general and administrative expenses

Provision for bonuses
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit expenses

8–282

296

Travel, transportation and communication expenses
Depreciation

318477241533

Amortization of goodwill
Other

5
1,962

4
1,841

Total selling, general and administrative expenses

9,243

8,953

3,979

3,124

Interest income
Dividend income

840

739

Rental income from buildings
Purchase discounts

121
49

121
44

1––
36

Operating profit
Non-operating income

Foreign exchange gains
Subsidies for employment adjustment
Other

119

110

Total non-operating income

341

359

Interest expenses
Depreciation

055

053

Guarantee commission
Foreign exchange losses

6–75

Loss on redemption of investment securities
Other

1337

–
34

Total non-operating expenses

113

101

4,206

3,382

Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sales of non-current assets

8–Gain on reversal of foreign currency translation adjustment–

47

Total extraordinary income

847

12074––

–

7195

7

Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Loss on valuation of investment securities
Total extraordinary losses

5

(Millions of yen)
Fiscal year ended

Fiscal year ended

October 31, 2019

October 31, 2020

Profit before income taxes

4,019

3,422

Income taxes - current

1,354

1,045

Income taxes - deferred(77)20

Total income taxes

1,277

1,065

Profit

2,742

2,356

28

4

2,714

2,351

Profit attributable to non-controlling interests
Profit attributable to owners of parent

6Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

October 31, 2019

October 31, 2020
2,742

2,356

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

6(0)

(23)
(43)

Remeasurements of defined benefit plans, net of tax

48(5)54(72)

Comprehensive income

Total other comprehensive income

2,796

2,283

Comprehensive income attributable toComprehensive income attributable to owners of parent

2,760

2,286

35(3)

Comprehensive income attributable to non-controllinginterests

7

Consolidated statements of changes in equity
Fiscal year ended October 31, 2019
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,575

Retained earnings

3,372

Total shareholders'equity

Treasury shares

33,395(1,482)37,860Changes during period
Dividends of surplus

(298)

(298)

Dividends fromsurplus,interim dividend

(343)

(343)

Profit attributable to ownersof parent

2,714

2,714

Purchase of treasury shares
Disposal of treasury shares

14(821)

(821)

3347

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period–

142,071

(788)

1,298

2,575

3,386

35,467(2,270)39,158

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurements ofdefined benefit
plans

Total accumulated
othercomprehensive
income425

68(90)

403

Non-controllinginterests

Total net assets

105

38,368Changes during period
Dividends of surplus(298)

Dividends fromsurplus,interim dividend(343)

Profit attributable to ownersof parent

2,714

Purchase of treasury shares(821)

Disposal of treasury shares

47

Net changes in items otherthan shareholders' equity

6(7)

48

4635

82

Total changes during period

6(7)

48

4635

1,380

Balance at end of period

431

60

(42)

449

140

39,7498Fiscal year ended October 31, 2020
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,575

Retained earnings

3,386

Total shareholders'equity

Treasury shares

35,467(2,270)39,158Changes during period
Dividends of surplus

(338)

(338)

Dividends fromsurplus,interim dividend

(334)

(334)

Profit attributable to ownersof parent

2,351

2,351

Purchase of treasury shares
Disposal of treasury shares

10(999)

(999)

3849

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

–

10

1,679

(960)

729

2,575

3,397

37,146(3,231)

39,887

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurements ofdefined benefit
plans

Total accumulated
othercomprehensive
income431

60(42)

449

Non-controllinginterests

Total net assets

140

39,749Changes during period
Dividends of surplus(338)

Dividends fromsurplus,interim dividend(334)

Profit attributable to ownersof parent

2,351

Purchase of treasury shares(999)

Disposal of treasury shares49

Net changes in items otherthan shareholders' equity

(23)

(35)

(5)

Total changes during period

(23)

(35)

(5)

(64)

(3)

660

Balance at end of period

408

25

(48)

384

137

40,409

9(64)

(3)

(68)

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

October 31, 2019

October 31, 2020
4,019

3,422

Depreciation
Amortization of goodwill

543
5588
4

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for bonuses

168
16148
(39)

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income

(101)
(49)

(55)
(46)

Interest expenses
Loss (gain) on valuation of investment securities

0–07

Reversal of foreign currency translation adjustment
Rental income–
(121)

(47)
(121)

Decrease (increase) in trade receivables
Decrease (increase) in Merchandise

(144)
(61)

3,091
274

Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes

(158)
223

(1,674)200

Other, net391(44)Subtotal

4,732

5,707

Interest and dividends received

49

46

Interest paid
Income taxes paid

(0)
(1,432)(0)(1,301)

Net cash provided by (used in) operating activities

3,349

4,451

(541)

(771)

634
(119)

572
(144)

188
(1,651)100(152)

Proceeds from sales of property, plant and equipment
Collection of loans receivable

75257

212

Purchase of insurance funds
Proceeds from cancellation of insurance funds

(147)
61

(145)
48

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time depositsPurchase of short-term and long-term investment securities
Proceeds from sales of investment securities
Purchase of property, plant and equipment

Other, net
Net cash provided by (used in) investing activities

4383(1,199)

(395)

(821)
(642)

(999)
(672)

Cash flows from financing activities
Purchase of treasury shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(61)

(97)

(1,525)(1,769)73

Net increase (decrease) in cash and cash equivalents

6312,290

Cash and cash equivalents at beginning of period

14,79815,430Cash and cash equivalents at end of period

15,43017,72110