Thanks to the 70th anniversaryA further leap forward

to become a 100-year companyNovember 18th celebrated its 70th anniversary

Presentation Materials

（June , 2020）Security Code 9824

SENSHU ELECTRIC CO.,LTD.

2nd Quarter Fiscal Year October 2020

Table of contents

■ Overview of Group

■ October 2020 Summary of 2nd Quarter financial results

2

Overview of Group

3

Overview of Group (1) Overview of Senshu Electric Group

Established

Shares

Capital

Type of industry

No. of employees

No. of subsidiaries

No. of offices

1949 ≪ 70th anniversary ≫

First Section of the Tokyo Stock Exchange

(Listed on the First Section of the Tokyo Stock Exchange

on November 9, 2017)

2,575,200,000 yen

Commerce (Industry-top-class general trading company of

electric wires)

712 (Average age: 38.6)

6 in Japan and 5 in overseas (China, Taiwan,Thailand,

Philippines and the Vietnam)

17 in Japan

4

Overview of Group (2) “General Trading Company of Electric Wires”

Operating Nationwide

No. of subsidiaries in Japan: 6▲No. of overseas subsidiaries: 5●

No. of offices In Japan: 17●

5

建設・電販

Sales channels of electric wire

manufacturers

Our sales channels (Electrical materials)

Our sales channels (Direct demands)

Our sales channels (Electrical facilities)

Sales channels of our customersConstruction/

Electrical sales

Electric Wire/Cabls Division (1) Sales Channels of Electric Wires

Electric machinery

(General

manufacturers)

Other domestic

demand (Steeel/ship

building etc.)

Electric power

(Each electric power

supply companies)

Electric wire

manufacturers

Automobiles

(Related companies)

Direct demands

Direct

demands

Electrical

materials

Electrical

construction

companies

Electric

facilitiesElectrical facilities

materials sales

companies

Communications

(NTT etc.)

SENSHU ELECTRIC CO.,LTD.

6

Our customers counting 3,500 or more companies are constituted of a wide variety of industries.

Electrical materials (Electrical facilities materials sales companies)

Direct demands (End-users)

Electric facilities (Electrical construction companies)

Sales ratio

Approx. 50%

Sales ratio

Approx. 28%

Sales ratio

Approx. 18%

* The number of large-scaled electrical materials companies, who are the members

of the association, is approximately 1,100 all over Japan.

* Machine tools/industrial machines, automobile facilities, and semiconductor/liquid crystal facilities

manufacturing companies, etc.

Electric Wire/Cable Division (2) Customers Composition

* The number of companies exceeds approximately 60,000 nationwide with medium- and small-scaled

companies combined and our sales are focused on the major customers.

7

Trend of Customers Composition Ratio

8

（％）

Three business models of Senshu Electric

JUST IN TIME SYSTEM

Warehouse floor area of approximately 60,000 m2

storing 50,000 or more kinds of products.

Stocks amounting approximately 3.6 billion yen.High

added value

(High

profitability

structure)

Original products

Our original products including FA cables

Cable assemblies

(Electric wire terminal processing)

The processing shop facilities are installed at 7 offices, of the 17 offices all over Japan.

9

October 2020 Summary of 2nd Quarter financial results

Trend of Business Results (1) Briefing of Profit-and-Loss Statement

(Comparison with the Previous FY)

11

（Unit: million yen、％）

Net sales 42,404 100.0 38,399 100.0 △ 4,004 △ 9.4

Cost of sales 35,735 84.3 32,010 83.4 △ 3,725 △ 10.4

Gross profit 6,668 15.7 6,388 16.6 △ 279 △ 4.2

4,518 10.7 4,584 11.9 66 1.5

Operating profit 2,150 5.1 1,804 4.7 △ 345 △ 16.1

Non-operating income 179 0.4 160 0.4 △ 19

Non-operating expenses 66 0.2 52 0.1 △ 13

Recurring profit 2,263 5.3 1,911 5.0 △ 351 △ 15.5

6 0.0 47 0.1 40

57 0.1 7 0.0 △ 49

2,212 5.2 1,951 5.1 △ 261 △ 11.8

687 1.6 516 1.3 △ 171

△ 13 △ 0.0 107 0.3 120

Profit 1,539 3.6 1,327 3.5 △ 211 △ 13.8

18 0.0 6 0.0 △ 11

1,520 3.6 1,320 3.4 △ 199 △ 13.1

737 658 △ 79 △ 10.7

Profit attributable to non-controlling interests

Profit attributable to owners ofparent

Average copper price(Thousand yen/t)

Income taxes - deferred

Income taxes - current

2019/10 （2Q） 2020/10 （2Q） Increase　or decrease

Profit before income taxes

Selling, general andadministrative expenses

Extraordinary income

Extraordinary losses

Trend of Business Results (3) Briefing of Consolidated Balance Sheet

(Comparison with previous FY)

12

（Unit: million yen）2019/10 2020/4

Increase ordecrease

2019/10 2020/4Increase ordecrease

Cash and deposits 15,972 17,323 1,351Notes and accountspayable - trade

23,537 21,631 △ 1,905

Notes and accountsreceivable - trade

18,070 15,453 △ 2,617 Short-term borrowings 105 105 -

Electronically recordedmonetary claims

6,137 5,806 △ 330 Income taxes payable 736 564 △ 172

Merchandise 4,128 4,186 57 Provision for bonuses 628 580 △ 47

Other current assets 205 247 42 Other Current liabilities 1,043 1,076 33

　 　 　

Total current assets 44,512 43,015 △ 1,496 Total current liabilities 26,049 23,959 △ 2,090

Property, plant andequipment

18,052 17,929 △ 122Retirement benefitliability

1,946 1,979 33

Intangible assets 175 146 △ 29Other non-currentliabilities

844 728 △ 116

Investments and otherassets

5,849 5,765 △ 84

Total non-current assets 24,077 23,841 △ 236 Total non-current liabilities 2,790 2,707 △ 82

Total liabilities 28,840 26,666 △ 2,173

　 Share capital 2,575 2,575 -

Capital surplus 3,386 3,397 10

Retained earnings 35,467 36,449 982

Treasury shares △ 2,270 △ 2,731 △ 461

Total shareholder’s equity 39,158 39,690 532

Accumulated othercomprehensive income

449 352 △ 96

Non-controlling interests 140 146 5

Total net assets 39,749 40,190 441

Total assets 68,589 66,856 △ 1,732 Total liabilities and net assets 68,589 66,856 △ 1,732

Trend of Consolidated profit-and-loss

13

（Unit: million yen）

Trend of Consolidated profit-and-loss (Quarterly Sales)

14

（Unit: million yen）

15

Copper Price and Trend of Monthly Sales(Nov. 2004 to Apr. 2020 Non-consolidated sales)

Sales Composition by Product (Non-consolidated)

16

（Unit: million yen、％）

2Q results 2019／10　2QComposition

ratio2020／10　2Q

Compositionratio

Increase ordecrease

Increase ordecrease ratio

FA Cables 14,391 36.1 12,709 35.4 △ 1,682 △ 11.7

Power Cables 13,475 33.8 12,583 35.1 △ 892 △ 6.6

Covered Cables 3,736 9.4 3,444 9.6 △ 292 △ 7.8

Other Cables 1,940 4.9 1,621 4.5 △ 319 △ 16.4

Non-Cables 6,271 15.8 5,538 15.4 △ 733 △ 11.7

total 39,815 100.0 35,898 100.0 △ 3,917 △ 9.8

Average copper price(Thousand yen/t)

737 　 658 　 △ 79 △ 10.7

　

results and forecasts 2019／10Composition

ratio

2020／10 forecast

Compositionratio

Increase ordecrease

Increase ordecrease ratio

FA Cables 27,922 35.5 25,630 36.0 △ 2,292 △ 8.2

Power Cables 26,671 33.9 24,310 34.2 △ 2,361 △ 8.9

Covered Cables 7,606 9.7 6,890 9.7 △ 716 △ 9.4

Other Cables 3,729 4.7 3,170 4.5 △ 559 △ 15.0

Non-Cables 12,821 16.3 11,100 15.6 △ 1,721 △ 13.4

total 78,750 100.0 71,100 100.0 △ 7,650 △ 9.7

Average copper price(Thousand yen/t)

706 　 630 　 △ 76 △ 10.8

Trend of Current Earnings per Share (EPS) and Return on equity (ROE)

（％）

17

（ Unit: yen / share）

Net assets per Share (BPS)

18

（ Unit: yen / share）

Trend of Dividends per Share and Payout Ratios

19

（％）（ Unit: yen / share）

Shareholder Return Rate and Dividend on equity ratio (DOE)

20

（％）

(million yen) 12/10 13/10 14/10 15/10 16/10 17/10 18/10 19/1020/10

forecast

Total cash dividends 335 335 356 375 405 454 549 682 662

Amount of treasury stock purchased 21 0 0 177 456 0 473 821 999

Total return amount 356 335 356 552 861 454 1,022 1,503 1,661

Profit attributable to owners of parent

1,390 1,318 1,663 1,570 1,585 2,289 2,371 2,714 2,460

Shareholder return rate（％） 25.6 25.4 21.4 35.2 54.4 19.8 43.1 55.4 67.6

ＤＯＥ（％） 1.1 1.1 1.1 1.1 1.2 1.3 1.5 1.8 1.7

Main indicators ※As of May 29,2020 and Stock chart ※As of April 30,2020

～ From Yahoo Japan Finance

21

ＥＰＳ（forecast） 262.4yen

ＢＰＳ4,195.7yen

ＲＯＥ（forecast） 6.2%

ＰＥＲ（forecast） 9.5times

ＰＢＲ0.6times

Stockprice 2,486yen

Shareholder Return Policies

(1) Dividend

Setting stable dividend payment as our basic policy, we are paying dividends considering and examining business results and retained earnings, etc. comprehensively.Commemorating the 70th anniversary of establishment on November 18, 2019, a commemorative dividend will be given.(1)In the fiscal year ending October 2019, the annual regular dividend is 60 yen and the commemorative

dividend is 10 yen, for a total of 70 yen.

(Interim ordinary dividend 30 yen + commemorative dividend 5 yen,

year-end ordinary dividend 30 yen + commemorative dividend 5 yen)

(2) We intend to pay a dividend of 70 yen (annual rate per share) for the fiscal year ending October 2020.

(Interim dividends of 35 yen and year-end ones of 35 yen)

We acquire treasury stock in order to carry out flexible capital policy that responds to enhancement of

shareholder return, improvement of capital efficiency and change of business environment.

・Total number of acquired shares 170,000 shares

・Total acquisition amount 500,000,000 yen

・ Acquisition period 2020/6/5 to 2020/10/31

(2) Treasury stock

acquisition

Once a year (at year end), 1 unit (100 shares) or more・ Shareholders holding less than 1 year is allotted to Our original QUO card (1,000 yen)・Shareholders holding for over 1 year is allotted to Our company's original QUO card (for 2,000 yen) 【 Added long-term shareholder benefit program】

(3) Stockholder

benefit program

22

thank you for your attentionSENSHU ELECTRIC CO.,LTD.

November 18th celebrated its 70th anniversary

Notes on the content

Nothing in this document is an invitation to buy or sell our stock.Please note that future performance may differ from these forecasts due to various factors.When using this material, check it against information obtained by other methods and make the decision at the user's discretion.Our company and the information provider do not take any responsibility for any damage incurred based on this information. Please make your investment decisions at your own discretion.Please note that the information does not always reflect the latest information.