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, 2019
(Based on Japanese GAAP)
December 9, 2019
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 ofAdministration Division

Shinobu Miyaishi

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

January 30, 2020
January 31, 2020

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

January 31, 2020
Yes

Holding of financial results meeting:

Yes

TEL

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

1. Consolidated financial results for the year ended October 31, 2019 (from November 1, 2018 to October 31, 2019)(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, 201983,676
2.0
3,979
2.9
4,206
2.5
2,714
14.5
Year ended October 31, 201882,038
9.4
3,868
20.8
4,105
18.8
2,371
3.6
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
7.0
6.2
4.8–
6.3
6.3
4.7

Diluted earnings pershare

Earnings per shareYen
277.04236.36

Year ended October 31, 2019Year ended October 31, 2018
(2) Consolidated financial position

Total assets
As of October 31, 2019
As of October 31, 2018

Net assets

Equity ratio

Millions of yen
68,58967,311Millions of yen
39,74938,368Cash flows fromoperating activities
Millions of yen
3,349
3,660

Cash flows frominvesting activities
Millions of yen(1,199)(2,648)

Net assets per share
%
57.7
56.8

Yen
4,094.81
3,843.63(3) Consolidated cash flows

Year ended October 31, 2019Year ended October 31, 2018

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(1,525)
15,430(1,032)
14,798

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended October 31, 2018Year ended October 31, 2019Year ending October 31, 2020
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

TotalYenYenYenYenYen

Millions of yen%%––

25.00
35.00

––

30.00
35.00

55.00
70.00

549
682

23.3
25.3

1.5
1.8

–

35.00

–

35.00

70.00

122.8

3. Forecast of consolidated financial results for the year ending October 31, 2020 (from November 1, 2019 to October 31, 2020)
Net sales
Millions of yen
Six months ending
April 30, 2020
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

42,5000.2

1,890(12.1)

2,000(11.6)

1,300(14.5)

136.8088,800

6.1

4,210

5.8

4,420

5.1

2,920

7.6

307.28

4. Notes(1) Changes in significant subsidiaries during the year ended October 31, 2019(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:
NoChanges in accounting policies due to other reasons:
Changes in accounting estimates:

NoNoRestatement 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, 2019

10,800,000 shares As of October 31, 2018

10,800,000 shares

Number of treasury shares at the end of the period
As of October 31, 2019

1,127,181 shares As of October 31, 2018844,976 shares

Average number of shares during the period
Year ended October 31, 2019

9,797,541 shares Year ended October 31, 2018

210,031,899 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of October 31, 2018

As of October 31, 2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade15,432
19,124

15,972
18,070Electronically recorded monetary claims - operating
Securities

4,875
48

6,137
–

Merchandise
Other

4,065
258

4,128
226

Allowance for doubtful accounts
Total current assets

(61)

(22)

43,74444,512

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

8,617

10,474

Accumulated depreciation(3,808)(3,649)Buildings and structures, net

4,809

6,825

Machinery, equipment and vehicles

1,098

1,347

Accumulated depreciation

(818)

(847)

Machinery, equipment and vehicles, net

279

500

8,623

10,550

171
(65)

176
(88)

Leased assets, net

106

87

Construction in progress
Other

3,465
330

0333

(261)

(245)

Land
Leased assets
Accumulated depreciation

Accumulated depreciation
Other, net

698817,35318,052

104

Other

211

170

Total intangible assets

221

175

Investment securities
Long-term loans receivable

1,380
255

1,326
46

Deferred tax assets
Other

818
4,355882
4,398

Total property, plant and equipment
Intangible assets
Goodwill

Investments and other assets

Accumulated depreciation

(333)

(382)

Other,net

4,021

4,016

Allowance for doubtful accounts

(484)

(421)

Total investments and other assets

5,992

5,849

23,567

24,07767,311

68,589Total non-current assets
Total assets3

(Millions of yen)
As of October 31, 2018

As of October 31, 2019

Liabilities
Current liabilities
Notes and accounts payable - trade

23,68823,537

Short-term loans payable
Lease obligations

115
46

105
45

Accrued expenses
Income taxes payable

262
814

325
736

Provision for bonuses
Other612
642

628
671

Total current liabilities

26,18026,049

98

6398

98

Non-current liabilities
Lease obligations
Deferred tax liabilities
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability

528

–

1,847

1,946

Asset retirement obligations
Guarantee deposited

6171

6
155

Other

10

519

2,762

2,790

28,943

28,840Capital stock
Capital surplus

2,575
3,372

2,575
3,386

Retained earnings
Treasury shares

33,395(1,482)35,467(2,270)Total shareholders' equity

37,86039,158

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

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

425

431

Foreign currency translation adjustment
Remeasurements of defined benefit plans

68
(90)

60
(42)

Total accumulated other comprehensive income

403

449

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

4105

140

38,36839,74967,311

68,589

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
October 31, 2018
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Freightage and packing expenses
Provision of allowance for doubtful accounts
Salaries and bonuses
Welfare expenses
Provision for bonuses
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit expenses
Transportation and communication expenses
Depreciation
Amortization of goodwill
OtherTotal selling, general and administrative expenses
Operating profit
Non-operating income
Interest incomeDividend income
House rent income
Purchase discounts
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Depreciation
Guarantee commission
Loss on redemption of investment securities
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Insurance income
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Loss on sales of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

5

Fiscal year ended
October 31, 201982,03869,206
12,831

83,67670,453
13,222

1,233
9
3,382
865
608

1,265
(48)
3,484
864
621

58

8

275
314
358
25
1,830
8,963
3,868

282
318
477
5
1,962
9,243
3,979

13
45
112
47
2
110
332

8
40
121
49
1
119
341

0
47
7–
40
95
4,105

0
55
6
13
37
113
4,206

28
91
120

8–
8–
488
13
501
3,724
1,370
(37)
1,332
2,391
20
2,371

12074–
195
4,019
1,354(77)
1,277
2,742
28
2,714

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

October 31, 2018

October 31, 2019
2,391

2,742

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

(137)
(31)

6(0)

Remeasurements of defined benefit plans, net of tax

3648(132)

54

Comprehensive income

Total other comprehensive income

2,259

2,796

Comprehensive income attributable toComprehensive income attributable to owners of parent

2,238

2,760

2035

Comprehensive income attributable to non-controllinginterests

6Consolidated statements of changes in equity
Fiscal year ended October 31, 2018
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

2,575

Retained earnings

3,372

Total shareholders'equityTreasury shares

31,527(1,008)36,466

Changes of items during period
Dividends of surplus

(252)

(252)

Dividends fromsurplus,interim dividend

(250)

(250)

Profit attributable to ownersof parent

2,371

2,371

Purchase of treasury shares

(473)

(473)

Disposal of treasury shares–

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period

–

–

1,867

(473)

1,393

2,575

3,372

33,395(1,482)37,860

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurements ofdefined benefit
plans

Total accumulated
othercomprehensive
income562

99(126)535

Non-controllinginterests

Total net assets84

37,086

Changes of items during period
Dividends of surplus(252)

Dividends fromsurplus,interim dividend(250)

Profit attributable to ownersof parent

2,371

Purchase of treasury shares(473)

Disposal of treasury shares–

Net changes of items otherthan shareholders' equity

(137)

(31)

36(132)20(111)

Total changes of items duringperiod

(137)

(31)

36(132)20

1,282

Balance at end of current
period425

68(90)

403

105

38,368

7

Fiscal year ended October 31, 2019
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

2,575

Retained earnings

3,372

Total shareholders'equityTreasury shares

33,395(1,482)37,860Changes of items 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 of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period–14

2,071(788)

1,298

2,575

3,386

35,467(2,270)39,158

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference 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 of items 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 of items otherthan shareholders' equity

6(7)

48

46

35

82

Total changes of items during
period

6(7)

48

46

35

1,380

431

60(42)

449

140

39,749Balance at end of current
period8

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Loss (gain) on redemption of investment securities
Rent income
Impairment loss
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in Merchandise
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accrued consumption taxes
Other, net

Fiscal year ended

Fiscal year ended

October 31, 2018

October 31, 2019
3,724415
251524,019
543
5168

49(528)

14
6(59)
0(28)
5(5)
(112)
488
(1,343)
(229)
2,125
(78)
(322)

16(101)
(49)
0(8)
120
13(121)74(144)
(61)
(158)
223
718

Subtotal

4,826

4,732

Interest and dividend income received
Interest expenses paid
Income taxes paid

59(0)(1,224)49(0)(1,432)

Net cash provided by (used in) operating activities

3,660

3,349

(640)
663
(311)

(541)
634
(119)

34

8

390
(3,148)101
37(144)296
71

188(1,651)
75
257
(147)
61
35

Net cash provided by (used in) investing activities(2,648)(1,199)Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Purchase of treasury shares
Cash dividends paid
Other, net

(5)
(473)
(502)
(51)

(10)
(821)
(642)
(51)

Net cash provided by (used in) financing activities(1,032)(1,525)

Effect of exchange rate change on cash and cash equivalents

(14)

7

Net increase (decrease) in cash and cash equivalents

(35)

631

Cash and cash equivalents at beginning of period

14,833

14,798Cash and cash equivalents at end of period

14,79815,430Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of short-term and long-term investment securities
Proceeds from redemption of short-term and long term
investment securities
Proceeds from sales of investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Collection of loans receivable
Purchase of insurance funds
Proceeds from cancellation of insurance funds
Other, net9