テクノスジャパン（3666） – Summary of Financial Results 2022

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail. Consolidated Financial Results for the Year Ended March 31, 2022 [Japanese GAAP] Company name: TECNOS JAPAN INCORPORATED Stock exchange listing: Tokyo Code number: 3666 URL: http://www.tecnos.co.jp/ Representative: Takashi Yoshioka Contact: Kiyoshi Kobayashi Phone: 03-3374-1212 Scheduled date of Annual General Meeting of Shareholders: June 24, 2022 Scheduled date of commencing dividend payments: June 10, 2022 Scheduled date of filing annual securities report: June 27, 2022 Availability of supplementary briefing material on annual financial results: Yes Schedule of annual financial results briefing session: Yes Director Representative Director May 13, 2022 1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 01, 2021 to March 31, 2022) (1) Consolidated Operating Results Operating profit Ordinary profit Net sales (% indicates changes from the previous corresponding period.)(Amounts of less than one million yen are rounded down) Fiscal year ended March 31, 2022 March 31, 2021 (Note) Comprehensive income: Million yen 9,046 8,197 Million yen % 1,144 10.4 924 6.8 Fiscal year ended March 31, 2022: Fiscal year ended March 31, 2021: % 23.8 227.2 ¥ ¥ Million yen 1,191 958 % 24.2 211.5 565 million 839 million Profit attributable to owners of parent Million yen 650 661 (32.6) %] -%] % (1.6) 407.1 [[Basic earnings per share Diluted earnings per share Rate of return on equity Ordinary profit to total assets ratio Operating profit to net sales ratio Fiscal year ended March 31, 2022 March 31, 2021 Yen 32.98 33.53 Yen 32.97 33.52 % 12.7 14.2 (Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2022: Fiscal year ended March 31, 2021: % 17.8 15.3 ¥ ¥ (2) Consolidated Financial Position As of March 31, 2022 March 31, 2021 (Reference) Equity: As of March 31, 2022: As of March 31, 2021: (3) Consolidated Cash Flows Total assets Net assets Capital adequacy ratio Net assets per share Million yen 6,803 6,550 Million yen 5,308 4,974 % 77.5 75.6 ¥ ¥ 5,270 million 4,950 million Fiscal year ended March 31, 2022 March 31, 2021 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at the end of period Million yen (38) 134 Million yen (236) (287) Million yen 2,873 2,412 Million yen 704 506 1 % 12.6 11.3 – million – million Yen 267.06 250.97 2. Dividends Fiscal year ended March 31, 2021 March 31, 2022 Fiscal year ending March 31, 2023 (Forecast) Annual dividends 1st quarter-end Yen 2nd quarter-end Yen 3rd quarter-end Yen Year-end Total Total dividends Payout ratio (consolidated) Dividends to net assets (consolidated) – – – 0.00 0.00 0.00 – – – Yen Yen Million yen 12.00 12.00 14.00 14.00 236 276 % 35.8 42.4 14.10 14.10 33.5 % 5.1 5.4 (Note) Breakdown of the year-end dividend for the fiscal year ended March 31, 2022 : Commemorative dividend Special dividend – yen – yen 3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 01, 2022 to March 31, 2023) (% indicates changes from the previous corresponding period.)Basic earnings per Profit attributable to owners of parent share % Operating profit Ordinary profit % Million yen % Million yen % Million yen Net sales Million yen Yen 5,160 12.4 600 (9.9) 615 (10.9) 10,390 14.8 1,200 4.9 1,240 4.1 415 830 (7.5) 27.6 21.03 42.06 Six months ended September 30, 2022 Full year * Notes: (1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in ) ) scope of consolidation): No New Exclusion: – – (Company name: (Company name: (2) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: Yes 2) Changes in accounting policies other than 1) above: No 3) Changes in accounting estimates: No 4) Retrospective restatement: No (3) Total number of issued shares (common shares) March 31, 2022: March 31, 2021: 20,400,000 shares 20,400,000 shares 1) Total number of issued shares at the end of the period (including treasury shares): 2) Total number of treasury shares at the end of the period: March 31, 2022: March 31, 2021: 666,628 shares 675,728 shares 3) Average number of shares during the period: Fiscal Year ended March 31, 2022: Fiscal Year ended March 31, 2021: 19,725,537 shares 19,720,131 shares 2 (Reference) Summary of Non-consolidated Financial Results 1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 01, 2021 to March 31, 2022) (1) Non-consolidated Operating Results Operating profit Ordinary profit Net sales (% indicates changes from the previous corresponding period.)Net income Fiscal year ended March 31, 2022 March 31, 2021 Million yen 7,320 6,766 % 8.2 5.8 Million yen 779 784 % (0.6) 372.0 Million yen 844 815 % 3.7 335.0 Million yen 448 569 % (21.2) – Basic earnings per share Diluted earnings per share Yen 22.73 28.86 Yen 22.72 28.85 (2) Non-consolidated Financial Position Fiscal year ended March 31, 2022 March 31, 2021 As of March 31, 2022 March 31, 2021 Total assets Net assets Capital adequacy ratio Net assets per share Million yen 5,858 6,124 Million yen 4,854 4,797 % 82.7 78.2 Yen 245.65 242.90 (Reference) Equity: As of March 31, 2022: As of March 31, 2021: ¥ ¥ 4,847 million 4,790 million 2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 01, 2022 to March 31, 2023) (% indicates changes from the previous corresponding period.)Basic earnings per share Ordinary profit Net income Net sales Six months ended September 30, 2022 Full year Million yen % Million yen % Million yen % 4,090 8,200 7.7 12.0 415 910 (13.2) 7.7 285 630 (13.2) 40.5 Yen 14.44 31.93 3 Consolidated Financial Statements Consolidated Balance Sheets Assets Current assets Cash and deposits Accounts receivable – trade Accounts receivable-trade and contract assets Work in process Prepaid expenses Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Facilities attached to buildings Accumulated depreciation Facilities attached to buildings, net Tools, furniture and fixtures Accumulated depreciation Tools, furniture and fixtures, net Total property, plant and equipment Intangible assets Software Customer relationship Goodwill Other Total intangible assets Investments and other assets Investment securities Long-term prepaid expenses Deferred tax assets Leasehold and guarantee deposits Insurance funds Other Total investments and other assets Total non-current assets Total assets (Thousand yen) As of March 31,2021 As of March 31,2022 2,412,436 1,565,832 – 17,871 102,026 82,914 (9,492) 4,171,589 224,195 (72,458) 151,736 80,412 (59,652) 20,759 172,496 7,445 198,625 210,207 36 416,316 1,410,009 49,440 11,929 213,473 86,938 18,767 1,790,558 2,379,370 6,550,960 2,873,508 – 1,753,295 3,684 91,550 96,648 (10,768) 4,807,919 224,141 (87,883) 136,258 88,412 (68,095) 20,317 156,576 4,949 148,279 80,090 36 233,356 1,179,669 50,915 23,589 213,892 95,104 42,472 1,605,643 1,995,576 6,803,496 4 (Thousand yen) As of March 31,2021 As of March 31,2022 332,589 9,867 81,287 121,560 326,073 34,281 18,109 5,636 175,079 6,982 113,137 1,224,605 9,422 238,455 78,046 25,462 351,386 1,575,991 562,520 205,461 4,100,876 (576,027) 4,292,830 691,484 (34,196) 657,287 6,946 17,903 4,974,968 6,550,960 416,610 21,436 107,644 150,322 169,893 76,970 24,214 – 71,511 7,759 183,993 1,230,356 – 157,967 77,983 28,239 264,191 1,494,547 562,520 202,747 4,514,586 (568,269) 4,711,584 531,628 26,807 558,436 6,946 31,982 5,308,949 6,803,496 Liabilities Current liabilities Accounts payable – trade Current portion of long-term borrowings Accounts payable – other Accrued expenses Income taxes payable Accrued consumption taxes Reserve for guarantee for after-care of products Provision for loss on orders received Provision for bonuses Provision for bonuses for directors (and other officers) Other Total current liabilities Non-current liabilities Long-term borrowings Deferred tax liabilities Asset retirement obligations Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Total liabilities and net assets 5 Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income (Thousand yen) For the fiscal year ended March 31,2021 For the fiscal year ended March 31,2022 Selling, general and administrative expenses Net sales Cost of sales Gross profit Operating profit Non-operating income Interest income Interest on securities Dividend income Subsidy income Other Total non-operating income Non-operating expenses Interest expenses Loss on investments in investment partnerships Total non-operating expenses Ordinary profit Extraordinary income Surrender value of insurance policies Total extraordinary income Extraordinary losses Impairment losses Loss on cancellation of insurance policies Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit attributable to non-controlling interests Profit attributable to owners of parent 8,197,365 5,764,025 2,433,340 1,509,302 924,037 23 413 12,440 16,106 5,976 34,960 172 – 172 7,882 7,882 – 471 471 966,236 382,584 (82,836) 299,748 666,487 5,239 661,247 9,046,822 6,205,341 2,841,480 1,697,125 1,144,354 21 – 22,540 18,030 7,953 48,545 9 1,847 1,857 911 911 138,829 100 138,929 1,053,022 416,038 (25,104) 390,933 662,088 11,562 650,526 958,825 1,191,041 6 Consolidated Statements of Comprehensive Income Profit Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests (Thousand yen) For the fiscal year ended March 31,2021 For the fiscal year ended March 31,2022 666,487 199,136 (25,989) 173,147 839,634 835,403 4,231 662,088 (159,855) 63,519 (96,336) 565,752 551,674 14,078 7 Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Consolidated Statements of Changes in Net Assets For the fiscal year ended March 31,2021 Share capital Capital surplus Treasury shares Shareholders’ equity Retained earnings (Thousand yen) Total shareholders’ equity 562,520 206,412 3,676,265 (579,839) 3,865,359 (236,637) 661,247 (236,637) 661,247 (3) (3) (951) 3,816 2,865 – (951) 424,610 3,812 427,471 562,520 205,461 4,100,876 (576,027) 4,292,830 Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets 492,347 (9,215) 483,132 6,946 13,672 4,369,110 (236,637) 661,247 (3) 2,865 199,136 (24,980) 174,155 4,231 178,386 199,136 (24,980) 174,155 – 4,231 605,858 691,484 (34,196) 657,287 6,946 17,903 4,974,968 8 Balance at beginning of period Cumulative effects of changes in accounting policies Restated balance Changes during period Dividends of surplus Profit attributable to owners of parent Disposal of treasury shares Transfer from retained earnings to capital surplus Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Balance at beginning of period Cumulative effects of changes in accounting policies Restated balance Changes during period Dividends of surplus Profit attributable to owners of parent Disposal of treasury shares Transfer from retained earnings to capital surplus Net changes in items other than shareholders’ equity Total changes during period Balance at end of period For the fiscal year ended March 31,2022 Share capital Capital surplus Treasury shares Shareholders’ equity Retained earnings (Thousand yen) Total shareholders’ equity 562,520 205,461 4,100,876 (576,027) 4,292,830 562,520 205,461 4,101,687 (576,027) 4,293,642 811 811 (236,691) 650,526 (236,691) 650,526 (3,649) 7,757 4,107 935 (935) 811 (236,691) 650,526 4,107 – (2,714) 412,899 7,757 417,942 562,520 202,747 4,514,586 (568,269) 4,711,584 Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets 691,484 (34,196) 657,287 6,946 17,903 4,974,968 691,484 (34,196) 657,287 6,946 17,903 4,975,779 (159,855) 61,004 (98,851) 14,078 (84,773) (159,855) 61,004 (98,851) – 14,078 333,169 531,628 26,807 558,436 6,946 31,982 5,308,949 9 Consolidated Statements of Cash Flows (Thousand yen) For the fiscal year ended March 31,2021 For the fiscal year ended March 31,2022 Cash flows from operating activities Profit before income taxes Depreciation Amortization of goodwill Impairment losses Loss on insurance cancellation Share-based payment expenses Loss (gain) on investments in investment partnerships Increase (decrease) in allowance for doubtful accounts Increse (decrese) in reserve for guarantee for after-care of products Increase (decrease) in provision for loss on orders received Increase (decrease) in provision for bonuses Increase (decrease) in provision for bonuses for directors (and other officers) Interest and dividend income Interest expenses Other loss (gain) Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Increase (decrease) in accounts payable – other Decrease (increase) in other assets Increase (decrease) in other liabilities Subtotal Interest and dividends received Interest paid Income taxes paid Net cash provided by (used in) operating activities Cash flows from investing activities Payments into time deposits Proceeds from withdrawal of time deposits Proceeds from redemption of securities Purchase of property, plant and equipment Purchase of intangible assets Payments for asset retirement obligations Payments of leasehold and guarantee deposits Proceeds from refund of leasehold and guarantee deposits Purchase of insurance funds Proceeds from cancellation of insurance funds Payments for investments in capital Net cash provided by (used in) investing activities 10 966,236 73,419 45,997 – 471 2,865 – 9,669 (2,899) – 49,716 (1,494) (12,877) 172 (1,048) (188,532) 8,455 (79,785) (1,072) (47,316) (175,533) 646,441 12,234 (172) (151,772) 506,731 (2,800) 73,325 100,000 (27,483) (291) (8,011) (22,637) 26,846 (11,801) 7,371 – 134,517 1,053,022 56,821 40,405 138,829 100 4,107 1,847 212 6,104 (5,636) (103,568) – (22,561) 9 83 (148,766) 12,247 76,087 19,092 6,211 125,439 1,260,089 22,561 (9) (577,965) 704,675 – – – (8,186) (1,575) – (75) 157 (10,196) 5,882 (25,000) (38,993) Cash flows from financing activities Proceeds from long-term borrowings Repayments of long-term borrowings Purchase of treasury shares Dividends paid Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period (Thousand yen) For the fiscal year ended March 31,2021 For the fiscal year ended March 31,2022 19,908 (70,589) (3) (236,788) (287,472) (7,716) 346,060 2,066,375 2,412,436 – – – (236,691) (236,691) 32,081 461,072 2,412,436 2,873,508 11 Non-consolidated Financial Statements Non-consolidated Balance Sheets (Thousand yen) As of March 31,2021 As of March 31,2022 Assets Current assets Cash and deposits Accounts receivable – trade Accounts receivable-trade and contract assets Work in process Advance payments to suppliers Prepaid expenses Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Facilities attached to buildings Accumulated depreciation Facilities attached to buildings, net Tools, furniture and fixtures Accumulated depreciation Tools, furniture and fixtures, net Total property, plant and equipment Intangible assets Software Customer relationship Goodwill Other Total intangible assets Investments and other assets Investment securities Shares of subsidiaries and associates Investments in capital Long-term prepaid expenses Leasehold and guarantee deposits Insurance funds Other Total investments and other assets Total non-current assets Total assets 12 3,427,696 3,545,401 1,932,145 1,324,217 – 18,347 61,125 84,505 7,385 (30) 214,949 (69,841) 145,108 56,384 (45,650) 10,734 155,842 6,893 49,500 117,547 173,977 36 1,392,580 617,871 – 49,363 201,062 86,938 18,767 2,366,583 2,696,403 6,124,100 2,046,324 – 1,324,478 3,684 61,678 79,437 29,828 (31) 214,707 (83,898) 130,808 54,174 (46,455) 7,718 138,527 4,610 – – 36 4,647 1,162,240 617,871 23,152 50,888 200,935 95,104 19,320 2,169,512 2,312,687 5,858,088 (Thousand yen) As of March 31,2021 As of March 31,2022 Deposits received Reserve for guarantee for after-care of products Provision for loss on orders received Provision for bonuses Liabilities Current liabilities Accounts payable – trade Accounts payable – other Accrued expenses Income taxes payable Accrued consumption taxes Advances received Other Total current liabilities Non-current liabilities Deferred tax liabilities Asset retirement obligations Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Legal capital surplus Other capital surplus Total capital surplus Retained earnings Legal retained earnings Other retained earnings General reserve Total retained earnings Treasury shares Total shareholders’ equity Retained earnings brought forward Valuation and translation adjustments Valuation difference on available-for-sale securities Total valuation and translation adjustments Share acquisition rights Total net assets Total liabilities and net assets 13 321,038 54,951 53,701 316,826 32,270 65,484 19,363 18,109 5,636 160,108 5,684 1,053,176 200,087 72,962 273,049 1,326,226 562,520 212,520 2,714 215,234 119,799 700,000 3,077,916 3,897,716 (576,027) 4,099,443 691,484 691,484 6,946 4,797,873 6,124,100 359,719 47,735 39,865 142,205 69,177 68,437 19,358 24,214 – 52,174 6,442 829,330 101,323 72,909 174,232 1,003,563 562,520 212,520 – 212,520 119,799 700,000 3,289,380 4,109,180 (568,269) 4,315,950 531,628 531,628 6,946 4,854,525 5,858,088 Non-consolidated Statements of Income Selling, general and administrative expenses Net sales Cost of sales Gross profit Operating profit Non-operating income Interest income Interest on securities Dividend income Subsidy income Outsourcing service income Other Total non-operating income Non-operating expenses Foreign exchange losses Loss on investments in investment partnerships Total non-operating expenses Ordinary profit Extraordinary income Gain on extinguishment of tie-in shares Surrender value of insurance policies Total extraordinary income Extraordinary losses Impairment losses Loss on cancellation of insurance policies Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit (Thousand yen) For the fiscal year ended March 31,2021 For the fiscal year ended March 31,2022 6,766,442 4,957,925 1,808,516 1,024,194 784,321 15 413 12,440 14,230 – 3,617 30,718 – – – 1,883 – 1,883 – 202 202 815,039 816,720 315,650 (68,043) 247,606 569,114 7,320,088 5,261,723 2,058,364 1,279,009 779,355 18 – 22,540 18,030 23,000 4,344 67,934 442 1,847 2,290 844,998 – 911 911 138,829 100 138,929 706,979 287,337 (28,638) 258,699 448,279 14 Balance at beginning of period Changes during period Dividends of surplus Profit Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Balance at beginning of period Changes during period Dividends of surplus Profit Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Non-consolidated Statements of Changes in Net Assets For the fiscal year ended March 31,2021 (Thousand yen) Shareholders’ equity Capital surplus Share capital Legal capital surplus Other capital surplus Total capital surplus Legal retained earnings Retained earnings Other retained earnings Retained earnings brought forward General reserve Total retained earnings 562,520 212,520 3,665 216,185 119,799 700,000 2,745,439 3,565,239 (236,637) (236,637) 569,114 569,114 – – (951) (951) – – 332,476 332,476 562,520 212,520 2,714 215,234 119,799 700,000 3,077,916 3,897,716 (951) (951) 15 Shareholders’ equity Treasury shares Total shareholders’ equity Valuation and translation adjustments Valuation difference on available-for-sale securities Total valuation and translation adjustments Share acquisition rights Total net assets (579,839) 3,764,104 492,347 492,347 6,946 4,263,398 (236,637) 569,114 (3) (3) 3,816 2,865 (236,637) 569,114 (3) 2,865 199,136 199,136 199,136 3,812 335,338 199,136 199,136 – 534,474 (576,027) 4,099,443 691,484 691,484 6,946 4,797,873 Balance at beginning of period Cumulative effects of changes in accounting policies Restated balance Changes during period Dividends of surplus Profit Disposal of treasury shares Transfer from retained earnings to capital surplus Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Balance at beginning of period Cumulative effects of changes in accounting policies Restated balance Changes during period Dividends of surplus Profit Disposal of treasury shares Transfer from retained earnings to capital surplus Net changes in items other than shareholders’ equity Total changes during period Balance at end of period For the fiscal year ended March 31,2022 Shareholders’ equity Capital surplus Share capital Legal capital surplus Other capital surplus Total capital surplus Legal retained earnings (Thousand yen) Retained earnings Other retained earnings Retained earnings brought forward General reserve Total retained earnings 562,520 212,520 2,714 215,234 119,799 700,000 3,077,916 3,897,716 562,520 212,520 2,714 215,234 119,799 700,000 3,078,727 3,898,527 811 811 (236,691) (236,691) 448,279 448,279 (3,649) (3,649) 935 935 (935) (935) – – (2,714) (2,714) – – 210,652 210,652 562,520 212,520 – 212,520 119,799 700,000 3,289,380 4,109,180 16 Shareholders’ equity Treasury shares Total shareholders’ equity Valuation and translation adjustments Valuation difference on available-for-sale securities Total valuation and translation adjustments Share acquisition rights Total net assets (576,027) 4,099,443 691,484 691,484 6,946 4,797,873 811 811 (576,027) 4,100,254 691,484 691,484 6,946 4,798,684 (236,691) 448,279 7,757 4,107 (236,691) 448,279 4,107 (159,855) (159,855) (159,855) 7,757 215,696 (159,855) (159,855) – 55,840 (568,269) 4,315,950 531,628 531,628 6,946 4,854,525