ジャパン・ティッシュ・エンジニアリング（7774） – Summary of Financial Results 2022

FY2021 FY2020 FY2021 FY2020 Note: Profit (Loss) on investment (2) Financial Condition(3) Cash Flow2. Cash DividendsSummary of Financial Report for the FY2021 (Non-Consolidated) April 26, 2022 Listed Company Name: Japan Tissue Engineering Co., Ltd. Listed Securities Exchange: Tokyo Growth Stock Code: 7774 Representative: Ken-ichiro Hata, President and CEO Contact: Masahito Obayashi, Corporate Officer URL http://www.jpte.co.jp TEL (0533) 66-2020 1. Results for the FY2021 (April 1, 2021 to March 31, 2022)(1) Business Results(Rounding down to the nearest million yen) (% indicate increase / decrease on previous fiscal year) Net sales million yen % -6.8-2.32,103 2,257 Operating income million yen % -498 － -466 － Ordinary income million yen % -494 － -462 － Net income million yen % -497 － -466 － Net income per share Net income per share, diluted Return on equity Return on assetsOperating income ratio yen yen % % % － -12.26－ -11.49FY2021 －million yen -7.2-6.3FY2020 －million yen -6.3-5.6-23.7-20.7Total assets Net assets Equity ratio million yen million yen FY2021 FY2020 7,598 8,119 Note: Shareholders’ equity FY2021: 6,666 million yen 6,666 7,164 FY2020: 7,164 million yen 87.7 88.2 Net assets per share yen % 164.16 176.42 Operating cash flow Investing cash flow Financing cash flow Cash and equivalents at end of term FY2021 FY2020 million yen -225-399million yen -116125million yen -0-1million yen 1,533 1,875 Dividends per share Q1 end Q2 end Q3 end Term end Annual Total dividend paid Payout ratioFY2020 FY2021 FY2022 (Forecast) － －－ 0.00 0.00 0.00 － －－ yen 0.00 0.00 0.00 0.00 0.00 0.00 － －－ －－ yen yen yen yen million yen % % Ratio of total amount of dividends to net assets － －3. Forecast for FY2022 (April 1, 2022 to March 31, 2023)Net sales million yen % 2,540 20.8 Operating income million yen % -389 －Ordinary income million yen % -384 －Net income million yen % -388 －Net income per share yen -9.57(% indicate increase/decrease on previous year) FY2022 *Disclaimer regarding appropriate use of forecasts and related points of note The above-mentioned forecasts are based on the information available on the date of release of these materials and on various assumptions made on the date of release of these materials including uncertain factors and may affect future earnings. Actual operating results may differ significantly from those forecasts as a consequence of various factors. 1Japan Tissue Engineering Co., Ltd. Non-consolidated Financial Statements for FY2021 (April 1, 2021 – March 31, 2022) (1) Non-consolidated Balance Sheets FY2020 As of March 31, 2021 FY2021 As of March 31, 2022 (Thousands of yen)Assets Current assets Cash and deposits Notes receivable – trade Accounts receivable – trade Merchandise and finished goods Work in process Raw materials and supplies Advance payments to suppliers Prepaid expenses Other Total current assets Non-current assets Property, plant and equipment Buildings Accumulated depreciation Buildings, net Structures Accumulated depreciation Structures, net Machinery and equipment Accumulated depreciation Machinery and equipment, net Tools, furniture and fixtures Accumulated depreciation Tools, furniture and fixtures, net Land Leased assets Accumulated depreciation Leased assets, net Construction in progress Total property, plant and equipment Intangible assets Trademark right Software Other Total intangible assets Investments and other assets Investments in capital Other Total investments and other assets Total non-current assets Total assets 5,275,871 52,786 769,659 3,569 12,037 188,464 46,999 5,221 189,990 6,544,600 1,931,255 -1,142,676 788,578 20,382 -18,378 2,004 447,367 -336,281 111,085 330,132 -263,730 66,401 582,770 3,720 -2,108 1,612 2,610 1,555,063 29 13,282 3,264 16,575 20 2,926 2,946 1,574,585 8,119,186 4,933,319 89,562 406,930 － 28,837 158,448 58,330 18,135 252,372 5,945,936 2,013,328 -1,199,663 813,664 20,382 -18,629 1,752 484,537 -348,839 135,698 367,015 -288,013 79,001 582,770 3,720 -2,852 868 － 1,613,755 － 21,033 15,234 36,267 20 2,175 2,195 1,652,219 7,598,156 2 Liabilities Current liabilities Notes payable – trade Accounts payable – trade Lease liabilities Accounts payable – other Accrued expenses Income taxes payable Contract liabilities Advances received Deposits received Provision for bonuses Provision for bonuses for directors (and other officers) Other Total current liabilities Non-current liabilities Lease liabilities Provision for retirement benefits for directors (and other officers) 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 (Thousands of yen)FY2020 As of March 31, 2021 FY2021 As of March 31, 2022 116,052 31,414 866 337,434 21,943 14,394 － 47,689 8,638 134,001 4,824 201,749 919,009 874 34,900 35,774 954,784 4,958,763 2,788,763 2,788,763 -582,837 -582,837 -287 7,164,401 7,164,401 8,119,186 73,239 43,853 803 275,164 21,192 26,001 25,774 1,000 8,919 126,668 3,643 290,369 896,630 133 34,900 35,033 931,664 4,958,763 2,788,763 2,788,763 -1,080,727 -1,080,727 -307 6,666,491 6,666,491 7,598,156 3(2) Non-consolidated Statements of Income (Thousands of yen)FY2020 Fiscal year ended March 31, 2021 FY2021 Fiscal year ended March 31, 2022 Net sales Cost of sales revenue of entrusted development Net sales of merchandise and finished goods Total net sales cost of entrusted development Cost of merchandise and finished goods sold Beginning inventory of merchandise and finished goods Cost of purchased goods Cost of products manufactured Total Transfer to other account Ending inventory of merchandise and finished goods Cost of merchandise and finished goods sold Total cost of sales Gross profit Selling, general and administrative expenses Remuneration for directors (and other officers) Salaries and allowances Bonuses Provision for bonuses for directors (and other officers) Provision for bonuses Retirement benefit expenses Rent expenses on land and buildings Taxes and dues Depreciation Research and development expenses Commission expenses Supplies expenses Donations Other Total selling, general and administrative expenses Operating loss Non-operating income Interest income Dividend income Employment adjustment for persons with disabilities Income from employee Miscellaneous income Total non-operating income Non-operating expenses Foreign exchange losses Loss on retirement of non-current assets Miscellaneous losses Total non-operating expenses Ordinary loss Loss before income taxes Income taxes – current Total income taxes Loss 721,631 1,535,978 2,257,609 458,953 2,798 4,485 643,978 651,261 *1 6,007 3,569 641,684 1,100,637 1,156,972 68,552 401,186 49,938 4,824 42,710 4,324 25,732 52,692 19,882 *2 468,895 130,100 20,457 7,553 326,983 1,623,833 -466,861 3,039 0 93 908 896 4,938 747 25 87 859 -462,782 -462,782 3,840 3,840 -466,622 391,208 1,712,235 2,103,443 165,358 3,569 － 694,351 697,921 *1 15,319 － 682,602 847,960 1,255,483 61,177 462,050 52,770 3,643 41,954 4,653 17,579 52,856 17,838 *2 561,857 72,059 37,364 6,442 361,418 1,753,666 -498,182 2,401 0 1,115 943 1,236 5,696 13 1,407 142 1,563 -494,049 -494,049 3,840 3,840 -497,889 4(3) Non-consolidated Statements of Changes in Equity FY2020 (Year ended March 31, 2021) (Thousands of yen)Shareholders’ equity Capital surplus Retained earnings Share capital Legal capital surplus Other retained earnings Retained earnings brought forward Treasury shares Total shareholders’ equity Total net assets 4,958,763 2,788,763 -116,215 -287 7,631,024 7,631,024 Restated balance 4,958,763 2,788,763 -116,215 -287 7,631,024 7,631,024 − − − − -466,622 -466,622 -466,622 Balance at end of period 4,958,763 2,788,763 -582,837 -287 7,164,401 7,164,401 − − -466,622 -466,622 -466,622 FY2021 (Year ended March 31, 2022) Shareholders’ equity Capital surplus Retained earnings Share capital Legal capital surplus Other retained earnings Retained earnings brought forward (Thousands of yen)Treasury shares Total shareholders’ equity Total net assets 4,958,763 2,788,763 -582,837 -287 7,164,401 7,164,401 Restated balance 4,958,763 2,788,763 -582,837 -287 7,164,401 7,164,401 Balance at beginning of period Cumulative effects of changes in accounting policies Changes during period Loss Purchase of treasury shares Total changes during period Balance at beginning of period Cumulative effects of changes in accounting policies Changes during period Loss Purchase of treasury shares Total changes during period − − -20 -20 − − -20 -20 -497,889 -497,889 -497,889 Balance at end of period 4,958,763 2,788,763 -1,080,727 -307 6,666,491 6,666,491 − − -497,889 -497,910 -497,910 5(4) Non-consolidated Statements of Cash Flows (Thousands of yen)FY2020 Fiscal year ended March 31, 2021 FY2021 Fiscal year ended March 31, 2022 Cash flows from operating activities Loss before income taxes Depreciation Increase (decrease) in provision for bonuses Increase (decrease) in provision for bonuses for directors (and other officers) Interest and dividend income Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Increase (decrease) in accounts payable – other Increase (decrease) in accrued consumption taxes Other, net Subtotal Interest and dividends received Income taxes refund (paid) Net cash provided by (used in) operating activities Cash flows from investing activities Payments into time deposits Proceeds from withdrawal of time deposits Purchase of property, plant and equipment Purchase of intangible assets Other, net Net cash provided by (used in) investing activities Cash flows from financing activities Repayments of lease liabilities Purchase of treasury shares Net cash provided by (used in) financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period -462,782 128,233 6,425 -1,582 -3,040 -140,847 -38,027 27,660 107,550 -43,764 21,134 -399,041 3,146 -3,691 -399,586 -3,400,000 3,600,000 -62,211 -12,180 278 125,886 -1,305 － -1,305 -275,005 2,150,876 * 1,875,871 -494,049 125,523 -7,333 -1,180 -2,402 325,952 16,785 -30,375 -86,225 2,009 -73,703 -224,998 3,670 -3,920 -225,248 -3,400,000 3,400,000 -88,310 -28,920 751 -116,479 -803 -20 -823 -342,551 1,875,871 * 1,533,319 6Notes to non-consolidated financial statements [Statements of income]*1 Details of transfer to other accounts are as follows.FY2020(Thousands of yen)FY2021Year ended March 31, 2021Year ended March 31, 2022R&D expensesAdvertising expensesTotal5,2217856,007*2 Major items and amounts of R&D costs included in the geneal and administrative expenses are as follows.FY2020Year ended March 31, 2021FY2021Year ended March 31, 2022(Thousands of yen)Salaries and allowancesFee paymentRaw materials used in R&DAmount of offset by grant income220,139155,12483,590Salaries and allowancesFee paymentRaw materials used in R&D-173,497 Amount of offset by grant income13,3371,98115,319278,744183,60495,111-218,847[Statements of cash flows]*Relationship between the balance at the end of the period for cash and cash equivalents and the amounts of items listed inthe balance sheets is as follows.FY2020(Thousands of yen)FY2021Year ended March 31, 2021Year ended March 31, 2022Cash and deposit accountsTime deposits that exceed 3 monthsCash and cash equivalents5,275,871-3,400,0001,875,8714,933,319-3,400,0001,533,3197