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, 2022
(Based on Japanese GAAP)
December 8, 2022
Company name:
SENSHU ELECTRIC CO.,LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

9824
URL https://www.senden.co.jp/
Representative Director,President
Motohide Nishimura

Inquiries:

Senior Managing Director & Executive
Officer & General Manager ofKazuto Narita

TEL

Administration Division
Scheduled date of ordinary general meeting of shareholders:January 26, 2023

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

January 27, 2023
January 27, 2023

Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
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, 2022 (from November 1, 2021 to October 31, 2022)(1) Consolidated operating results
Net salesYear ended October 31, 2022
Year ended October 31, 2021

Millions of yen
113,633
92,463Operating profit
%
22.9
24.5

Millions of yen
7,464
4,743

%
57.4
51.8

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen
%
7,894
57.8
5,314
48.3
5,004
47.9
3,583
52.4

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen
Yen%%%
Year ended October 31, 2022294.03
–12.0
8.8
6.6
Year ended October 31, 2021
193.75
–
8.6
6.6
5.1
(Note)1. The Company conducted a 2-for-1 stock split of common shares on November 1, 2022. “Net income per share" is calculated on theassumption that the stock split was conducted at the beginning of the previous fiscal year.
2. Diluted net income per share for the fiscal year ended October 31, 2021 is not shown in the above table, as there are no residual shares.
Also, diluted net income per share for the fiscal year ended October 31, 2022 is not stated because there are no residual shares having
the dilutive effect.
Earnings per share

Diluted earnings pershare(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen
Millions of yen%
Yen
As of October 31, 2022
95,381
46,39948.4
2,578.24
As of October 31, 2021
83,99042,88650.9
2,342.59(Note) The Company conducted a 2-for-1 stock split of common shares on November 1, 2022. “Net assets per share” is calculated on theassumption that the stock split had been conducted at the beginning of the previous fiscal year.
(3) Consolidated cash flows

Year ended October 31, 2022
Year ended October 31, 2021

Cash flows fromoperating activities
Millions of yen
6,335
9,397

Cash flows frominvesting activities
Millions of yen(3,727)
63

1

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(2,091)
26,181(1,742)25,496

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end
YenYenYenYenof dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total
Yen

Millions of yen%%

Year ended October 31, 2021
–
40.00
–
50.00
90.00
825
23.2
2.0
Year ended October 31, 2022
–
60.00
–
80.00
140.00
1,258
23.8
2.8
Year ending October 31, 2023
–
40.00
–
40.00
80.00
25.7
(Forecast)(Note) The Company conducted a 2-for-1 stock split of common shares on November 1, 2022, and the dividends before the end of the fiscal year
ended October 31, 2022 represent the actual amounts of dividends before the stock split.
3. Forecast of consolidated financial results for the year ending October 31, 2023 (from November 1, 2022 to October 31, 2023)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Yen
Six months ending
56,600
2.6
3,650
3.2
3,800
2.3
2,580
3.5
145.85
April 30, 2023
Full year
118,200
4.0
7,800
4.5
8,100
2.6
5,500
3.5
310.92(Note) On November 1, 2022, the Company conducted a 2-for-1 stock split of common shares, and "net income per share" in the consolidated
earnings forecast for the fiscal year ending October 31, 2023 takes into account the effect of this stock split.
The Company's Board of Directors resolved at a meeting held on December 8, 2022 to repurchase treasury shares. The net income pershare in the consolidated earnings forecast for the fiscal year ending October 31, 2023 takes into account the effect of this stock
repurchases. For details, please refer to the "Notice of Decision on Matters Concerning Repurchase of Treasury Stock" released today(December 8, 2022).
4. Notes(1) Changes in significant subsidiaries during the year ended October 31, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(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:
Changes in accounting policies due to other reasons:

Yes
NoChanges in accounting estimates:
Restatement of prior period financial statements:

NoNo(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, 2022

21,000,000 shares As of October 31, 2021

21,600,000 shares

Number of treasury shares at the end of the period
As of October 31, 2022

3,110,570 shares As of October 31, 2021

3,361,612 shares

Average number of shares during the period
Year ended October 31, 2022
18,075,098 shares Year ended October 31, 2021
18,495,560 shares(Note) The Company conducted a 2-for-1 stock split of common shares on November 1, 2022. The "number of shares issued andoutstanding at the end of the period," "number of treasury stock at the end of the period," and "average number of shares during
the period" are calculated on the assumption that the stock split had been conducted at the beginning of the previous fiscal year.

2Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of October 31, 2021

As of October 31, 2022

AssetsCurrent assets
Cash and deposits

26,335

27,165

Notes and accounts receivable - trade
Electronically recorded monetary claims - operating

21,291
7,561

22,572
10,831

Securities
Merchandise

6
4,916

23
6,575–
–

250
238

235
(13)

267(14)60,33367,91010,524(4,248)

10,895(4,604)

Buildings and structures, net

6,275

6,290

Machinery, equipment and vehicles
Accumulated depreciation

1,375(998)

1,414(1,098)

Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation

377

316

10,239207

10,381221(126)(127)

Leased assets, net

81

93Construction in progress

251

632

Other
Accumulated depreciation

337(274)

368
(305)

62

63

17,287

17,779Goodwill
Other–
110

156
182

Total intangible assets

110

339

Investments and other assets
Investment securities

1,848

1,695

19–

5
3,000

713
4,378

896
4,523

Other, net
Total property, plant and equipment
Intangible assets

Long-term loans receivable
Long-term time depositsDeferred tax assets
Other
Accumulated depreciation

(332)

(381)

Other,net

4,045

4,142

Allowance for doubtful accounts

(367)

(387)

Total investments and other assets

6,259

9,352

23,65727,471

83,99095,381

Total non-current assets
Total assets3

(Millions of yen)
As of October 31, 2021

As of October 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings

35,628105

41,214
631

––

114
20

21
281

24
438

1,024
669

1,840
767

695

870

38,42645,922

Bonds payable
Long-term borrowings

––

107
60

Lease liabilities
Deferred tax liabilities

152

29
1

Provision for retirement benefits for directors (and otherofficers)–

178

Retirement benefit liability
Asset retirement obligations

2,212
6

2,249
6

Guarantee deposits received
Other

147
295

148
278

Total non-current liabilities

2,678

3,059

41,104

48,982

Shareholders' equity
Share capital

2,575

2,575

Capital surplus
Retained earnings

3,412
40,032

2,690
44,255

Treasury shares(4,201)(4,454)

Total shareholders' equity

41,81845,066

785
131

660
390

Current portion of bonds payable
Current portion of long-term borrowings
Lease liabilities
Accrued expenses
Income taxes payable
Provision for bonuses
OtherTotal current liabilities
Non-current liabilities

Total liabilities
Net assets

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

(10)

6

Total accumulated other comprehensive income

906

1,056

Share acquisition rights–38

Non-controlling interests

160

237

42,886

46,39983,99095,381

Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended

Fiscal year ended

October 31, 2021

October 31, 2022

Net sales
Cost of sales

92,46378,542

113,633
96,539Gross profit

13,921

17,093

Selling, general and administrative expenses
Freight and packing costs

1,276

1,305

(1)
3,416

4
3,450

Welfare expenses
Provision for bonuses

904
659

945
740

Retirement benefit expenses
Travel, transportation and communication expenses

302
216

276
246

Depreciation
Amortization of goodwill

517
–

481
17

Other

1,885

2,160

Total selling, general and administrative expenses

9,177

9,629

4,743

7,464

618

Dividend income
Rental income from buildings

48
121

53
129

Purchase discounts
Foreign exchange gains

13
1–
64

Other

162

267

Total non-operating income

353

533

Interest expenses
Depreciation

153

251

Guarantee commission
Other

929

1037

Total non-operating expenses

92

103

5,004

7,894

104

–

104––

15

Provision of allowance for doubtful accounts
Salaries and bonuses

Operating profit
Non-operating income
Interest income

Non-operating expenses

Ordinary profit
Extraordinary income
Insurance claim income
Total extraordinary income
Extraordinary losses
Impairment losses–15

Profit before income taxes

5,109

7,878

Income taxes - current

1,526

2,571

Income taxes - deferred

(26)

(63)

Total income taxes

1,500

2,508

Profit

3,608

5,370

2455

3,583

5,314

Total extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent5Consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended
October 31, 2021
ProfitFiscal year ended
October 31, 2022
3,608

5,370

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

376

(124)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

105
38279
16

Total other comprehensive income
Comprehensive income

520

170

4,128

5,541

4,105

5,464

2376

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6Consolidated statements of changes in equity
Fiscal year ended October 31, 2021
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,575

Retained earnings

3,397

Total shareholders'equity

Treasury shares

37,146(3,231)

39,887

Changes during period
Dividends of surplus

(328)

(328)

Dividends fromsurplus,interim dividend

(369)

(369)

Profit attributable to ownersof parent

3,583

3,583

Purchase of treasury shares
Disposal of treasury shares15(1,000)(1,000)3045

Net changes in items otherthan shareholders' equity–

152,885(970)

1,9302,575

3,412

40,032(4,201)

41,818

Total changes during period
Balance at end of period

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurements ofdefined benefit
plans

Total accumulated
othercomprehensive
income408

25(48)

384

Non-controllinginterests

Total net assets

137

40,409Changes during period
Dividends of surplus(328)

Dividends fromsurplus,interim dividend(369)

Profit attributable to ownersof parent

3,583

Purchase of treasury shares(1,000)

Disposal of treasury shares

45

Net changes in items otherthan shareholders' equity

376

106

Total changes during period

376

Balance at end of period

785

38

521

106

38

521

23

2,476

131(10)906

160

42,886723545Fiscal year ended October 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,575

Retained earnings

3,412

40,032

Cumulative effects ofchanges in accounting
policies

Total shareholders'equityTreasury shares(4,201)

41,818(92)

Restated balance

2,5753,412(92)

39,939(4,201)

41,725

Changes during period
Dividends of surplus

(455)

(455)

Dividends fromsurplus,interim dividend

(542)

(542)

Profit attributable to ownersof parent

5,314

5,314

Purchase of treasury shares(1,028)(1,028)

Disposal of treasury shares

2923

53

Cancellation of treasury
shares

(751)

751

–

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

–

(722)

4,316

(252)

3,340

2,575

2,690

44,255(4,454)45,066

Accumulated other comprehensive income
Valuationdifference onavailable-forsale securities
Balance at beginning of period

785

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income

(10)

906

131

Share
acquisitionrightsNon-controlling
Total net assetsinterests–

160

Cumulative effects ofchanges in accounting
policies
Restated balance

42,886
(92)

785

131

(10)

906

–

160

42,793

Changes during period
Dividends of surplus(455)

Dividends fromsurplus,interim dividend(542)

Profit attributable to ownersof parent

5,314Purchase of treasury shares(1,028)

Disposal of treasury shares

53

Cancellation of treasuryshares–Net changes in items otherthan shareholders' equity

(124)

258

16150

38

76

265

Total changes during period

(124)

258

16

150

38

76

3,606

Balance at end of period

660

390

6

1,056

38

237

46,3998

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
October 31, 2021

Fiscal year ended
October 31, 2022

Cash flows from operating activities
Profit before income taxes
Depreciation

5,109
572

7,878
547

Amortization of goodwillIncrease (decrease) in retirement benefit liability

–
164

1759

Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful accounts

78
(7)

86
4

Interest and dividend income
Interest expenses

(55)
1(72)
2

Loss (gain) on cancellation of insurance policies
Rental income

(104)
(121)

(99)
(129)

Impairment losses
Decrease (increase) in trade receivables–(7,661)

15(4,110)

Decrease (increase) in inventories
Decrease (increase) in Merchandise–(1,042)(1,635)–

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

13,756
(273)

5,331
133

Other, net(81)15Subtotal

10,333

8,046

5472

Interest paid
Income taxes paid

(1)
(990)

(2)
(1,779)Net cash provided by (used in) operating activities

9,397

6,335

(924)

(3,966)

Proceeds from withdrawal of time deposits
Purchase of short-term and long-term investment securities

828
(111)

845
(87)

Proceeds from sale of investment securities
Purchase of property, plant and equipment62(363)70(413)

Proceeds from sale of property, plant and equipment
Proceeds from collection of loans receivable

386
13213

Purchase of insurance funds
Proceeds from cancellation of insurance funds

(350)
342

(266)
307

–(208)

Other, net

178

(25)

Net cash provided by (used in) investing activities

63(3,727)(1,000)(697)(1,028)(988)

Interest and dividends received

Cash flows from investing activities
Payments into time deposits

Purchase of shares of subsidiaries resulting in change in scopeof consolidation

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

(44)

(74)

(1,742)(2,091)57

168

Net increase (decrease) in cash and cash equivalents

7,775

685

Cash and cash equivalents at beginning of period

17,721

25,496

Cash and cash equivalents at end of period

25,49626,1819