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 Non-Consolidated Financial Results
for the Year Ended July 31, 2021
(Based on Japanese GAAP)
September 10, 2021
Company name:

SILVER LIFE CO., LTD.

Stock exchange listing: Tokyo
Stock code:
9262
Representative:
Inquiries:

URL

https://www.silver-life.co.jp/

President, CEO
Coporate Planning Division Manager

Takahisa Shimizu
Reiko Saito

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

October 26, 2021
October 27, 2021

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

Holding of financial results meeting:

Yes

TEL

(03)6300-5629(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Non-consolidated financial results for the year ended July 31, 2021 (from August 1, 2020 to July 31, 2021)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended July 31, 2021
Year ended July 31, 2020

Millions of yen
10,0508,832

Operating profit
%
13.8
13.2

Millions of yen
839
934

Diluted earnings pershare
Yen
Yen
50.93
49.85
63.80
61.96

Earnings per share
Year ended July 31, 2021
Year ended July 31, 2020

Ordinary profit% Millions of yen(10.1)
973
5.6
1,086

Profit% Millions of yen(10.4)
546
8.4
678

%
(19.5)
6.8

Ordinary profit/total Operating profit/net
assetssales%%%
11.8
14.0
8.4
16.9
20.810.6

Profit/equity(2) Non-consolidated financial position
Total assets
As of July 31, 2021
As of July 31, 2020

Net assets

Equity ratio

Millions of yen
8,262
5,613

Millions of yen
4,926
4,364

Cash flows fromoperating activities
Millions of yen
369
678

Cash flows frominvesting activities
Millions of yen(2,689)(1,100)Net assets per share%
59.6
77.7

Yen
457.43408.33(3) Non-consolidated cash flows

Year ended July 31, 2021
Year ended July 31, 2020

Cash flows from
Cash and cash equivalents
at end of period
financing activitiesMillions of yen
Millions of yen
1,945
1,472
8
1,847

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

Year ended July 31, 2020
Year ended July 31, 2021
Year ending July 31, 2022
(Forecast)

Total

Total cash
dividends (Total)

Dividend payout
ratio (Nonconsolidated)

Ratio of dividends
to net assets (Nonconsolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

0.00
0.00

–
–

0.00
0.00

0.00
0.00

–––
–

–
–

–

0.00

–

0.00

0.001–3. Forecast of non-consolidated financial results for the year ending July 31, 2022 (from August 1, 2021 to July 31, 2022)
Percentages indicate year-on-year changes
Net sales
Millions of yen
Six months ending
January 31, 2022
Full year

Operating profit% Millions of yen

Ordinary profit% Millions of yen

Profit% Millions of yen

Earnings per share%

Yen

5,390

10.3

160

(73.8)

220(67.3)

140(66.5)

13.00

11,72016.6

550(34.5)

680(30.1)

430(21.3)

39.93

4. Notes(1) 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:

NoNo

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(2) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of July 31, 2021

10,770,000 shares As of July 31, 2020

10,688,800 shares

Number of treasury shares at the end of the period
As of July 31, 2021

399 shares As of July 31, 2020

294 shares

Average number of shares during the period
Year ended July 31, 2021

10,722,259 shares Year ended July 31, 2020

210,635,942 sharesNon-consolidated financial statements
Non-consolidated balance sheets(Thousands of yen)
As of July 31, 2020

As of July 31, 2021

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise and finished goods
Raw materials and supplies
Prepaid expenses
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets

1,847,192870,406
63,166
15,563
20,714
224,454
67,771(29,913)3,079,355

1,472,438
967,715
186,720
16,032
49,047282,706
400,565(39,487)
3,335,739

Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation

830,749(186,033)

2,908,964(274,534)

Buildings, net

644,716

2,634,430

36,999(5,487)

148,790(12,734)

Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

31,512

136,055

564,466(260,956)

1,530,357(393,077)

303,509

1,137,280

5,085(3,551)

4,495(4,495)1,533

070,203(42,703)125,841(58,819)

27,49967,022

Land
Leased assets
Accumulated depreciation
Leased assets, net

288,544
16,927(6,784)
10,143

330,644–––

Construction in progress

839,688

156,651

2,147,148

4,462,084

5,827
103,979
152,613

4,094
270,535
6,609

262,420

281,239

Investments and other assets
Long-term loans receivable
Distressed receivables
Long-term prepaid expenses
Deferred tax assets
Other
Allowance for doubtful accounts

38,855
4,762
4,503
37,492
51,522(12,115)

55,816
1,115
11,044
71,20957,210(13,135)

Total investments and other assets

125,021

183,260

2,534,590

4,926,584

5,613,946

8,262,323

Total property, plant and equipment
Intangible assets
Trademark right
Software
Other
Total intangible assets

Total non-current assets
Total assets3

(Thousands of yen)
As of July 31, 2020
Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Deposits received
Provision for shareholder benefit program
Lease obligations
Other

As of July 31, 2021

539,806–
277,115
12,480228,017
8,099
–
2,682
21,587541,269
167,400
433,990
15,117
190,254
9,706
31,720–12,352

Total current liabilities

1,089,788

1,401,809

Non-current liabilities
Long-term borrowings
Lease obligations
Guarantee deposits received
Other–
8,271
148,279
3,210

1,762,850–
168,118
3,210

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Legal capital surplus
Total capital surplus
Retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders' equity
Total net assets
Total liabilities and net assets

4

159,761

1,934,178

1,249,550

3,335,987

716,103

724,137

706,103

714,137

706,103

714,137

2,942,871

3,488,980

2,942,871

3,488,980

(682)

(919)

4,364,396
4,364,396

4,926,335
4,926,335

5,613,946

8,262,323

Non-consolidated statements of income(Thousands of yen)

Net sales
Cost of sales
Beginning inventory of merchandise and finished goods
Cost of products manufactured
Cost of purchased goods

Fiscal year ended

Fiscal year ended

July 31, 2020

July 31, 2021

8,832,415

10,050,070

40,3672,574,444
3,670,250

63,1663,196,750
4,256,347

6,285,062

7,516,264

63,166

186,720

6,221,896

7,329,544

2,610,518

2,720,526

238,736
344,575
67,904
216,842
243,671
4,322
2,623
–
557,328214,584
440,131
70,564
257,503277,663
3,437
7,278
31,720577,834

1,676,006

1,880,718

Operating profit

934,511

839,808

Non-operating income
Interest income
Compensation income
Commission income
Other

9,769
127,986
18,993
17,743

10,733104,001
23,847
19,699174,492

158,283–
19,149
131
3,127
387

1,602
16,427–
6,895
38

22,797

24,963

Total
Ending inventory of merchandise and finished goods
Total cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and allowances
Freight costs
Depreciation
Outsourcing expensesAdvertising expenses
Bad debt expenses
Provision of allowance for doubtful accounts
Provision for shareholder benefit program
OtherTotal selling, general and administrative expenses

Total non-operating income
Non-operating expenses
Interest expenses
Rental expenses
Bad debt expenses
Provision of allowance for doubtful accounts
Other
Total non-operating expenses
Ordinary profit

1,086,207

973,127

Extraordinary income
Gain on sale of non-current assets

1,209

88

Total extraordinary income

1,209

88

340
19,378–

4,055
27,91574,73819,718

106,709

Profit before income taxes

1,067,698

866,506

Income taxes - current
Income taxes - deferred

393,667(4,531)

354,114(33,717)

Total income taxes

389,135

320,397

Profit678,562

546,109

Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Impairment losses
Total extraordinary losses

5Non-consolidated statements of changes in equity
Fiscal year ended July 31, 2020
(Thousands of yen)
Shareholders' equity
Capital surplus

Sharecapital

Balance at beginning of period

Retained earnings
Otherretainedearnings

Total

Total net
assetsLegal capitalsurplus710,656

700,656

700,656

5,447

5,447

5,447

678,562

678,562

678,562

678,562

5,447

5,447

5,447

678,562

678,562–

689,457

689,457

716,103706,103706,1032,942,871

2,942,871(682)

4,364,396

4,364,396

Retainedearnings
brought
forward2,264,308

Total
retainedearnings

TreasurysharesTotal
capitalsurplus2,264,308

shareholders'equity(682)

3,674,939

3,674,939

10,894

10,894

Changes during period
Issuance of new shares - exercise ofshare acquisition rights
Purchase of treasury shares
ProfitTotal changes during period
Balance at end of period

Fiscal year ended July 31, 2021
(Thousands of yen)
Shareholders' equity
Capital surplus

Sharecapital

Balance at beginning of period

Legal capitalsurplusTotal
capitalsurplus716,103706,103706,103

8,033

8,033

8,033

Retained earnings
Otherretainedearnings
Retainedearnings
brought
forward2,942,871

Total
retainedearnings

2,942,871

Treasuryshares

(682)

Total
shareholders'

Total net
assetsequity4,364,396

4,364,396

16,067

16,067

Changes during period
Issuance of new shares - exercise ofshare acquisition rights
Purchase of treasury shares(236)

ProfitTotal changes during period
Balance at end of period

546,109546,109

(236)

(236)

546,109546,109

8,033

8,033

8,033

546,109546,109(236)

561,939561,939

724,137

714,137

714,137

3,488,980

3,488,980(919)

4,926,335

4,926,335

6

Non-consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for shareholder benefit

Fiscal year ended

Fiscal year ended

July 31, 2020

July 31, 2021

1,067,698

866,506

169,309–336,289
74,7383,161

10,594

programInterest and dividend income–

31,720(9,769)(10,733)

Interest expenses
Loss on retirement of property, plant and equipment–
19,378

1,602
12,079Loss (gain) on sale of property, plant and equipment
Loss on retirement of intangible assets

(869)
–

3,967
15,836

Decrease (increase) in trade receivables
Decrease (increase) in inventories(125,599)(25,909)(97,308)(124,023)

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

56,100(48,945)1,463(319,236)

Other, net(11,439)(52,490)

Subtotal

1,093,115

751,003

Interest and dividends received

9,769

10,733

Interest paid
Income taxes paid–
(424,003)(1,913)(390,424)

Net cash provided by (used in) operating activities

678,881369,399

Cash flows from investing activities
Purchase of property, plant and equipment(957,184)(2,580,233)

Proceeds from sale of property, plant and equipment
Purchase of intangible assets

5,730(149,608)

5,593(123,098)

Loan advances
Proceeds from collection of loans receivable(22,305)
12,190(35,759)
16,029Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits(14,029)
450

(238)
131

Refund of guarantee deposits received
Guarantee deposits received(5,386)35,814(2,460)36,540Purchase of other investments(5,861)(5,844)(1,100,191)(2,689,339)––

2,000,000(69,750)

Proceeds from exercise of employee share options
Purchase of treasury shares

10,894–

16,067(236)

Repayments of lease obligations(2,864)(894)

Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term borrowings
Repayments of long-term borrowings

8,029

1,945,186

Net increase (decrease) in cash and cash equivalents

Net cash provided by (used in) financing activities(413,280)(374,754)

Cash and cash equivalents at beginning of period

2,260,473

1,847,192

Cash and cash equivalents at end of period

1,847,192

1,472,4387